Document:

Exhibit 10.1  

INDEMNIFICATION AGREEMENT  

        THIS INDEMNIFICATION AGREEMENT is made effective as of the 28th day of January, 2002 (the "Agreement"), by and between NANOGEN, INC., a Delaware
corporation (the "Company") and RANDY J. BERHOLTZ (the "Indemnitee") with reference to the following facts: 

        WHEREAS,
the Company desires the benefits of having Indemnitee serve as an officer and/or director secure in the knowledge that any expenses, liability and/or losses incurred by him in
his good faith service to the Company will be borne by the Company or its successors and assigns; and 

        WHEREAS,
Indemnitee is willing to serve in his position with the Company only on the condition that he be indemnified for such expenses, liability and/or losses; and 

        WHEREAS,
the Company and Indemnitee recognize the increasing difficulty in obtaining liability insurance for directors, officers and agents of a corporation at reasonable cost; and 

        WHEREAS,
the Company and Indemnitee recognize that there has been an increase in litigation against corporate directors, officers and agents; and 

        WHEREAS,
the Company's Restated Certificate of Incorporation allows and requires the Company to indemnify its directors, officers and agents to the maximum extent permitted under
Delaware law: 

        NOW,
THEREFORE, the parties hereby agree as follows: 

        1.    Definitions.    For purposes of this Agreement: 

        1.1    "Agent"
shall mean any person who (a) is or was a director, officer, employee or agent of the Company or a subsidiary of the Company whether serving in such
capacity or as a director, officer, employee, agent, fiduciary or other official of another corporation, joint venture, trust or other enterprise at the request of, for the convenience of, or to
represent the interests of the Company or a subsidiary of the Company or (b) was a director, officer, employee or agent of Nanogen, Inc., a California corporation and the predecessor by
merger to the Company (the "Predecessor Corporation"), whether serving in such capacity or as a director, officer, employee, agent, fiduciary or other official of another corporation, joint venture,
trust or other enterprise at the request of, for the convenience of, or to represent the interests of such Predecessor Corporation. 

        1.2    "Change
of Control" shall mean the occurrence of any of the following events after the date of this Agreement: 

        (a)    A
change in the composition of the board of directors of the Company (the "Board"), as a result of which fewer than two-thirds of the incumbent directors are
directors who either (a) had been directors of the Company 24 months prior to such change or (b) were elected, or nominated for election, to the Board with the affirmative votes
of at least a majority of the directors who had been directors of the Company 24 months prior to such change and who were still in office at the time of the election or nomination; or 

        (b)    Any
"person" (as such term is used in sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (the "Exchange Act"), as amended) through the acquisition or
aggregation of securities is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing 20 percent or more of the combined voting power of the Company's
then outstanding securities ordinarily (and apart from rights accruing under special circumstances) having the right to vote at elections of directors (the "Capital Stock");  provided, however, that any
change in ownership of the Company's securities by any person resulting solely from a reduction in the aggregate number of
outstanding shares of Capital Stock, and any decrease thereafter in such person's ownership of securities, shall be disregarded until such person increases in any manner, directly or indirectly, such
person's beneficial ownership of any securities of the Company. 

 

        1.3    "Disinterested
Director" shall mean a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is being sought by
Indemnitee. 

        1.4    "Expenses"
shall be broadly construed and shall include, without limitation, (a) all direct and indirect costs incurred, paid or accrued, (b) all
attorneys' fees, retainers, court costs, transcripts, fees of experts, witness fees, travel expenses, food and lodging expenses while traveling, duplicating costs, printing and binding costs,
telephone charges, postage, delivery service, freight or other transportation fees and expenses, (c) all other disbursements and out-of-pocket expenses,
(d) amounts paid in settlement, to the extent not prohibited by Delaware Law, and (e) reasonable compensation for time spent by Indemnitee for which he is otherwise not compensated by
the Company or any third party, actually and reasonably incurred in connection with or arising out of a Proceeding, including a Proceeding by Indemnitee to establish or enforce a right to
indemnification under this Agreement, applicable law or otherwise. 

        1.5    "Independent
Counsel" shall mean a law firm or a member of a law firm that neither is presently nor in the past five years has been retained to represent: (a) the
Company, an affiliate of the Company or Indemnitee in any matter material to either party or (b) any other party to the Proceeding giving rise to a claim for indemnification hereunder.
Notwithstanding the foregoing, the term "Independent Counsel" shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of
interest in representing either the Company or Indemnitee in an action to determine Indemnitee's right to indemnification under this Agreement. 

        1.6    "Liabilities"
shall mean liabilities of any type whatsoever, including, but not limited to, judgments or fines, ERISA or other excise taxes and penalties, and amounts
paid in settlement (including all interest, assessments or other charges paid or payable in connection with any of the foregoing) actually and reasonably incurred by Indemnitee in connection with a
Proceeding. 

        1.7    "Delaware
Law" means the Delaware General Corporation Law, as amended and in effect from time to time, or any successor or other statutes of Delaware having similar
import and effect. 

        1.8    "Proceeding"
shall mean any pending, threatened or completed action, hearing, suit or any other proceeding, whether civil, criminal, arbitrative, administrative,
investigative or any alternative dispute resolution mechanism, including without limitation any such Proceeding brought by or in the right of the Company. 

        2.    Employment Rights and Duties. Subject to any other obligations imposed on either of the parties by contract or by law, and
with the understanding that this Agreement is not intended to confer employment rights on either party which they did not possess on the date of its execution, Indemnitee agrees to serve as a director
or officer so long as he is duly appointed or elected and qualified in accordance with the applicable provisions of the Restated Certificate of Incorporation (the "Certificate") and Bylaws (the
"Bylaws") of the Company or any subsidiary of the Company and until such time as he resigns or fails to stand for election or until his employment terminates. Indemnitee may from time to time also
perform other services at the request, or for the convenience of, or
otherwise benefiting the Company. Indemnitee may at any time and for any reason resign or be removed from such position (subject to any other contractual obligation or other obligation imposed by
operation of law), in which event the Company shall have no obligation under this Agreement to continue Indemnitee in any such position. 

        2.1    Directors' and Officers' Insurance. 

        (a)  The
Company hereby covenants and agrees that, so long as Indemnitee shall continue to serve as a director or officer of the Company and thereafter so long as Indemnitee
shall be subject to any possible Proceeding, the Company, subject to Section 2.1(c), shall maintain directors' and officers' insurance in full force and effect. 

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        (b)  In
all policies of directors' and officers' insurance, Indemnitee shall be named as an insured in such a manner as to provide Indemnitee the same rights and benefits,
subject to the same limitations, as are accorded to the Company's directors or officers most favorably insured by such policy. 

        (c)  The
Company shall have no obligation to maintain directors' and officers' insurance if the Company determines in good faith that such insurance is not reasonably
available, the premium costs for such insurance are disproportionate to the amount of coverage provided, or the coverage provided by such insurance is limited by exclusions so as to provide an
insufficient benefit. 

        3.    Indemnification. The Company shall indemnify Indemnitee to the fullest extent authorized or permitted by Delaware Law and
the provisions of the Certificate and Bylaws of the Company in effect on the date hereof, and as Delaware Law, the Certificate and Bylaws may from time to time be amended (but, in the case of any such
amendment, only to the extent such amendment permits the Company to provide broader indemnification rights than Delaware Law, the Certificate and/or Bylaws permitted the Company to provide before such
amendment). The right to indemnification conferred in the Certificate shall be presumed to have been relied upon by Indemnitee in serving or continuing to serve the Company as a director or officer
and shall be enforceable as a contract right. Without in any way diminishing the scope of the indemnification provided by the Certificate and this Section 3, the Company shall indemnify
Indemnitee if and whenever he is or was a witness, party or is threatened to be made a witness or a party to any Proceeding, by reason of the fact that he is or was an Agent or by reason of anything
done or not done, or alleged to have been done or not done, by him in such capacity, against all Expenses and Liabilities actually and reasonably incurred by Indemnitee or on his behalf in connection
with the investigation, defense, settlement or appeal of such Proceeding. In addition to, and not as a limitation of, the foregoing, the rights of indemnification of Indemnitee provided under this
Agreement shall include those rights set forth in Sections 4, 5 and 6 below. 

        4.    Payment of Expenses. 

        4.1    All
Expenses incurred by or on behalf of Indemnitee shall be advanced by the Company to Indemnitee within 20 days after the receipt by the Company of a written
request for such advance which may be made from time to time, whether prior to or after final disposition of a Proceeding (unless there has been a final determination by a court of competent
jurisdiction that Indemnitee is not entitled to be indemnified for such Expenses). Indemnitee's entitlement to advancement of Expenses shall include those incurred in connection with any Proceeding by
Indemnitee seeking a determination, an adjudication or an award in arbitration pursuant to this Agreement. The requests shall reasonably evidence the Expenses incurred by Indemnitee in connection
therewith. Indemnitee hereby undertakes to repay the amounts advanced if it shall ultimately be determined that Indemnitee is not entitled to be indemnified pursuant to the terms of this Agreement. 

        4.2    Notwithstanding
any other provision in this Agreement, to the extent that Indemnitee has been successful on the merits or otherwise in defense of any Proceeding,
Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by Indemnitee in connection therewith. 

        5.    Procedure for Determination of Entitlement to Indemnification. 

        5.1    Whenever
Indemnitee believes that he is entitled to indemnification pursuant to this Agreement, Indemnitee shall submit a written request for indemnification (the
"Indemnification Request") to the Company to the attention of the President with a copy to the Secretary. This request shall include documentation or information which is necessary for the
determination of entitlement to indemnification and which is reasonably available to Indemnitee. Determination of Indemnitee's entitlement to indemnification shall be made no later than 60 days
after receipt of the Indemnification Request. The President or the Secretary shall, promptly upon receipt of Indemnitee's request for 

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indemnification, advise the Board in writing that Indemnitee has made such request for indemnification. 

        5.2    The
Indemnification Request shall set forth Indemnitee's selection of which of the following forums shall determine whether Indemnitee is entitled to indemnification: 

        (1)    A
majority vote of Directors who are not parties to the action with respect to which indemnification is sought, even though less than a quorum. 

        (2)    A
written opinion of an Independent Counsel (provided there are no such Directors as set forth in (1) above or if such Directors as set forth in (1) above
so direct). 

        (3)    A
majority vote of the stockholders at a meeting at which a quorum is present, with the shares owned by the person to be indemnified not being entitled to vote thereon. 

        (4)    The
court in which the Proceeding is or was pending upon application by Indemnitee. 

        The
Company agrees to bear any and all costs and expenses incurred by Indemnitee or the Company in connection with the determination of Indemnitee's entitlement to indemnification by any
of the above forums. 

        6.    Presumptions and Effect of Certain Proceedings. No initial finding by the Board, its counsel, Independent Counsel,
arbitrators or the stockholders shall be effective to deprive Indemnitee of the protection of this indemnity, nor shall a court or other forum to which Indemnitee may apply for enforcement of this
indemnity give any weight to any such adverse finding in deciding any issue before it. Upon making a request for indemnification, Indemnitee shall be presumed to be entitled to indemnification under
this Agreement and the Company shall have the burden of proof to overcome that presumption in reaching any contrary determination. The termination of any Proceeding by judgment, order, settlement,
arbitration award or conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, (a) adversely affect the rights of
Indemnitee to indemnification except as indemnification may be expressly prohibited under this Agreement, (b) create a presumption that Indemnitee did not act in good faith and in a manner
which he reasonably believed to be in or not opposed to the best interests of the Company or (c) with respect to any criminal action or proceeding, create a presumption that Indemnitee had
reasonable cause to believe that his conduct was unlawful. 

        7.    Remedies of Indemnitee in Cases of Determination Not to Indemnify or to Advance Expenses. 

        7.1    In
the event that (a) an initial determination is made that Indemnitee is not entitled to indemnification, (b) advances for Expenses are not made when and
as required by this Agreement, (c) payment has not been timely made following a determination of entitlement to indemnification pursuant to this Agreement or (d) Indemnitee otherwise
seeks enforcement of this Agreement, Indemnitee shall be entitled to a final adjudication in an appropriate court of the State of Delaware of his entitlement to such indemnification or advance.
Alternatively, Indemnitee at his option may seek an award in arbitration. If the parties are unable to agree on an arbitrator, the parties shall provide JAMS Endispute ("JAMS") with a statement of the
nature of the dispute and the desired qualifications of the arbitrator. JAMS will then provide a list of three available arbitrators. Each party may strike one of the names on the list, and the
remaining person will serve as the arbitrator. If both parties strike the same person, JAMS will select the arbitrator from the other two names. The arbitration award shall be made within
90 days following the demand for arbitration. Except as set forth herein, the provisions of Delaware law shall apply to any such arbitration. The Company shall not oppose Indemnitee's right to
seek any such adjudication or arbitration award. In any such proceeding or arbitration Indemnitee shall be presumed to be entitled to indemnification under this Agreement and the Company shall have
the burden of proof to overcome that presumption. 

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        7.2    An
initial determination, in whole or in part, that Indemnitee is not entitled to indemnification shall create no presumption in any judicial proceeding or arbitration
that Indemnitee has not met the applicable standard of conduct for, or is otherwise not entitled to, indemnification. 

        7.3    If
an initial determination is made or deemed to have been made pursuant to the terms of this Agreement that Indemnitee is entitled to indemnification, the Company shall
be bound by such determination in the absence of (a) a misrepresentation of a material fact by Indemnitee in the request for indemnification or (b) a specific finding (which has become
final) by a court of competent jurisdiction that all or any part of such indemnification is expressly prohibited by law. 

        7.4    The
Company and Indemnitee agree herein that a monetary remedy for breach of this Agreement, at some later date, will be inadequate, impracticable and difficult of
proof, and further agree that such breach would cause Indemnitee irreparable harm. Accordingly, the Company and Indemnitee agree that Indemnitee shall be entitled to temporary and permanent injunctive
relief to enforce this Agreement without the necessity of proving actual damages or irreparable harm. The Company and Indemnitee further agree that Indemnitee shall be entitled to such injunctive
relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, without the necessity of posting bond or other undertaking in connection therewith. Any such
requirement of bond or undertaking is hereby waived by the Company, and the Company acknowledges that in the absence of such a waiver, a bond or undertaking may be required by the court. 

        7.5    The
Company shall be precluded from asserting that the procedures and presumptions of this Agreement are not valid, binding and enforceable. The Company shall stipulate
in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement and is precluded from making any assertion to the contrary. 

        7.6    Expenses
incurred by Indemnitee in connection with his request for indemnification under, seeking enforcement of or to recover damages for breach of this Agreement shall
be borne and advanced by the Company. 

        8.    Other Rights to Indemnification. Indemnitee's rights of indemnification and advancement of expenses provided by this
Agreement shall not be deemed exclusive of any other rights to which Indemnitee may now or in the future be entitled under applicable law, the Certificate, the Bylaws, an employment agreement, a vote
of stockholders or Disinterested Directors, insurance or other financial arrangements or otherwise. 

        9.    Limitations on Indemnification. No indemnification pursuant to Section 3 shall be paid by the Company nor shall
Expenses be advanced pursuant to Section 3: 

        9.1    Insurance. To the extent that Indemnitee is reimbursed pursuant to such insurance as may exist for Indemnitee's benefit.
Notwithstanding the availability of such insurance, Indemnitee also may claim indemnification from the Company pursuant to this Agreement by assigning to the Company any claims under such insurance to
the extent Indemnitee is paid by the Company. Indemnitee shall reimburse the Company for any sums he receives as indemnification from other sources to the extent of any amount paid to him for that
purpose by the Company; 

        9.2    Section 16(b). On account and to the extent of any wholly or partially successful claim against Indemnitee for an
accounting of profits made from the purchase or sale by Indemnitee of securities of the Company pursuant to the provisions of Section 16(b) or the Securities Exchange Act of 1934, as amended,
and amendments thereto or similar provisions of any federal, state or local statutory law; or 

        9.3    Indemnitee's Proceedings. Except as otherwise provided in this Agreement, in connection with all or any part of a
Proceeding which is initiated or maintained by or on behalf of Indemnitee, or any Proceeding by Indemnitee against the Company or its directors, officers, employees or other agents, unless
(a) such indemnification is expressly required to be made by Delaware Law, (b) the Proceeding 

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was authorized by a majority of the Disinterested Directors, (c) there has been a Change of Control or (d) such indemnification is provided by the Company, in its sole discretion,
pursuant to the powers vested in the Company under Delaware Law. 

        10.    Duration and Scope of Agreement; Binding Effect. This Agreement shall continue so long as Indemnitee shall be subject to
any possible Proceeding subject to indemnification by reason of the fact that he is or was an Agent and shall be applicable to Proceedings commenced or continued after execution of this Agreement,
whether arising from acts or omissions occurring before or after such execution. This Agreement shall be binding upon the Company and its successors and assigns (including any direct or indirect
successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company) and shall inure to the benefit of Indemnitee and his spouse, assigns,
heirs, devisees, executors, administrators and other legal representatives. 

        11.    Notice by Indemnitee and Defense of Claims. Indemnitee agrees promptly to notify the Company in writing upon being served
with any summons, citation, subpoena, complaint, indictment, information or other document relating to any matter which may be subject to indemnification hereunder, whether civil, criminal,
arbitrative, administrative or investigative; 

but
the omission so to notify the Company will not relieve it from any liability which it may have to Indemnitee if such omission does not actually prejudice the Company's rights and, if such omission
does prejudice the Company's rights, it will relieve the Company from liability only to the extent of such prejudice; nor will such omission relieve the Company from any liability which it may have to
Indemnitee otherwise than under this Agreement. With respect to any Proceeding: 

        (a)  The
Company will be entitled to participate therein at its own expense; 

        (b)  Except
as otherwise provided below, to the extent that it may wish, the Company jointly with any other indemnifying party similarly notified will be entitled to assume
the defense thereof, with counsel reasonably satisfactory to Indemnitee. After notice from the Company to Indemnitee of its election so to assume the defense thereof and the assumption of such
defense, the Company will not be liable to Indemnitee under this Agreement for any attorney fees or costs subsequently incurred by Indemnitee in connection with Indemnitee's defense except as
otherwise provided below. Indemnitee shall have the right to employ his counsel in such Proceeding but the fees and expenses of such counsel incurred after notice from the Company of its assumption of
the defense thereof and the assumption of such defense shall be at the expense of Indemnitee unless (i) the employment of counsel by Indemnitee has been authorized by the Company,
(ii) Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and Indemnitee in the conduct of the defense of such action or that the Company's
counsel may not be adequately representing Indemnitee or (iii) the Company shall not in fact have employed counsel to assume the defense of such action, in each of which cases the fees and
expenses of counsel shall be at the expense of the Company; and 

        (c)  The
Company shall not be liable to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any action or claim effected without its written
consent. The Company shall not settle any action or claim which would impose any limitation or penalty on Indemnitee without Indemnitee's written consent. Neither the Company nor Indemnitee will
unreasonably withhold its or his consent to any proposed settlement. 

        11.1    Contribution. In order to provide for just and equitable contribution in circumstances in which the indemnification
provided for in this Agreement is held by a court of competent jurisdiction to be unavailable to Indemnitee in whole or part, the Company shall, in such an event, after taking into account, among
other things, contributions by other directors and officers of the Company pursuant to indemnification agreements or otherwise, and, in the absence of personal enrichment, acts of intentional fraud or
dishonesty or criminal conduct on the part of Indemnitee, contribute to the 

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payment of Indemnitee's losses to the extent that, after other contributions are taken into account, such losses exceed: (i) in the case of a director of the Company or any of its subsidiaries
who is not an officer of the Company or any of such subsidiaries, the amount of fees paid to the director for serving as a director during the 12 months preceding the commencement of the
Proceeding; or (ii) in the case of a director of the Company or any of its subsidiaries who is also an officer of the Company or any of such subsidiaries, the amount set forth in
clause (i) plus 5% of the aggregate cash compensation paid to said director for service in such office(s) during the 12 months preceding the commencement of the Proceeding; or
(iii) in the case of an officer of the Corporation or any of its subsidiaries, 5% of the
aggregate cash compensation paid to such officer for service in such office(s) during the 12 months preceding the commencement of such Proceeding. 

        12.    Establishment of Trust. In order to secure the obligations of the Company to indemnify and to advance Expenses to
Indemnitee pursuant to this Agreement, upon a Change of Control of the Company, the Company or its successor or assign shall establish a Trust (the "Trust") for the benefit of the Indemnitee, the
trustee (the "Trustee") of which shall be chosen by the Company and which is reasonably acceptable to the Indemnitee. Thereafter, from time to time, upon receipt of a written request from Indemnitee,
the Company shall fund the Trust in amounts sufficient to satisfy any and all Liabilities and Expenses reasonably anticipated at the time of such request for which the Company may indemnify Indemnitee
hereunder. The amount or amounts to be deposited in the Trust pursuant to the foregoing funding obligation shall be determined by mutual agreement of the Indemnitee and the Company or, if the Company
and the Indemnitee are unable to reach such an agreement, by Independent Counsel selected jointly by the Company and the Indemnitee. The terms of the Trust shall provide that except upon the consent
of the Indemnitee and the Company, (i) the Trust shall not be revoked or the principal thereof invaded, without the written consent of the Indemnitee, (ii) the Trustee shall advance to
the Indemnitee, within 20 days of a request by the Indemnitee, any and all Expenses, the Indemnitee hereby agreeing to reimburse the Trustee of the Trust for all Expenses so advanced if a final
determination is made by a court in a final adjudication from which there is no further right of appeal that the Indemnitee is not entitled to be indemnified under this Agreement, (iii) the
Trust shall continue to be funded by the Company in accordance with the funding obligations set forth in this Section, (iv) the Trustee shall promptly pay to the Indemnitee any amounts to which
the Indemnitee shall be entitled pursuant to this Agreement, and (v) all unexpended funds in the Trust shall revert to the Company upon a final determination by Independent Counsel selected by
Indemnitee or a court of competent jurisdiction that Indemnitee has been fully indemnified with respect to the Proceeding giving rise to the funding of the Trust under the terms of this Agreement. The
establishment of the Trust shall not, in any way, diminish the Company's obligation to indemnify Indemnitee against Expenses and Liabilities to the full extent required by this Agreement. 

        13.    Miscellaneous Provisions. 

        13.1    Severability; Partial Indemnity. If any provision or provisions of this Agreement (or any portion thereof) shall be held
by a court of competent jurisdiction to be invalid, illegal or unenforceable for any reason whatever: (a) such provision shall be limited or modified in its application to the minimum extent
necessary to avoid the invalidity, illegality or unenforceability of such provision; (b) the validity, legality and enforceability of the remaining provisions of this Agreement shall not in any
way be affected or impaired thereby; and (c) to the fullest extent possible, the provisions of this Agreement shall be construed so as to give effect to the intent manifested by the provision
(or portion thereof) held invalid, illegal or unenforceable. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of any Expenses or
Liabilities of any type whatsoever incurred by him in the investigation, defense, settlement or appeal of a Proceeding but not entitled to all of the total amount thereof, the Company shall
nevertheless indemnify Indemnitee for such total amount except as to the portion thereof for which it has been determined pursuant to Section 5 hereof that Indemnitee is not entitled. 

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        13.2    Identical Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes
be deemed to be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability is sought needs to be
produced to evidence the existence of this Agreement. 

        13.3    Interpretation of Agreement. It is understood that the parties hereto intend this Agreement to be interpreted and
enforced so as to provide indemnification to Indemnitee to the fullest extent not now or hereafter prohibited by law. 

        13.4    Headings. The headings of the Sections and paragraphs of this Agreement are inserted for convenience only and shall not
be deemed to constitute part of this Agreement or to affect the construction thereof. 

        13.5    Pronouns. Use of the masculine pronoun shall be deemed to include use of the feminine pronoun where appropriate. 

        13.6    Modification and Waiver. No supplement, modification or amendment of this Agreement shall be binding unless executed in
writing by both of the parties to this Agreement. No waiver of any provision of this Agreement shall be deemed to constitute a waiver of any of the provisions hereof (whether or not similar) nor shall
such waiver constitute a continuing waiver. No waiver of any provision of this Agreement shall be effective unless executed in writing. 

        13.7    Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to
have been duly given if (i) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed or (ii) mailed by certified or registered
mail with postage prepaid, on the third business day after the date on which it is so mailed: 

	(a)	 	If to Indemnitee, to:
	

 	
 	

Randy J. Berholtz

Nanogen, Inc.

10398 Pacific Center Court

San Diego, California 92121

Telephone: (858) 410-4600

Telefax: (858) 410-4949
	

(b)	
 	

If to the Company to:
	

 	
 	

Nanogen, Inc.

10398 Pacific Center Court

San Diego, California 92121

Telephone: (858) 410-4600

Telefax: (889) 410-4949

Attention: Chief Executive Officer

or
to such other address as may have been furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case may be. 

        13.8    Governing Law. The parties agree that this Agreement shall be governed by, and construed and enforced in accordance
with, the laws of the State of Delaware, as applied to contracts between Delaware residents entered into and to be performed entirely within Delaware. 

        13.9    Consent to Jurisdiction. The Company and Indemnitee each hereby irrevocably consent to the jurisdiction of the courts of
the State of Delaware for all purposes in connection with any action or 

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proceeding which arises out of or relates to this agreement and agree that any action instituted under this agreement shall be brought only in the state courts of the State of Delaware. 

        13.10    Entire Agreement. This Agreement represents the entire agreement between the parties hereto, and there are no other
agreements, contracts or understanding between the parties hereto with respect to the subject matter of this Agreement, except as specifically referred to herein or as provided in Sections 8 and 2.1
hereof. 

        IN
WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written. 

	 	 	NANOGEN, INC.
	

 	
 	

By:	
 	

/s/  V. RANDY WHITE      
 V. Randy White

Chief Executive Officer
	

 	
 	

INDEMNITEE
	

 	
 	

 	
 	

/s/  RANDY J. BERHOLTZ      
 Randy J. Berholtz

Acting General Counsel and Secretary

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Exhibit 10.26    
  

EIGHTH AMENDMENT TO LOAN AGREEMENT  

        THIS EIGHTH AMENDMENT TO LOAN AGREEMENT (herein called this "Amendment") is made as of the 25th day of February, 2002, by and among Western Gas
Resources, Inc. ("Borrower"), and Bank of America, N.A. ("Agent"), and the Lenders under the Loan Agreement referred to below. 

W I T N E S S E T H:  

        WHEREAS,
Borrower, Agent, and Lenders have entered into that certain Loan Agreement dated as of April 29, 1999 (as amended, restated, or supplemented to the date hereof, the
"Original Agreement"), for the purposes and consideration therein expressed, pursuant to which Lenders made and became obligated to make loans to Borrower as therein provided; and 

        WHEREAS,
Borrower, Agent, and Lenders desire to amend the Original Agreement for the purposes described herein; 

        NOW,
THEREFORE, in consideration of the premises and the mutual covenants and agreements contained herein and in the Original Agreement, in consideration of the loans which may hereafter
be made by Lenders to Borrower, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto do hereby agree as follows: 

ARTICLE I.

Definitions and References  

        § 1.1. Defined Terms. Unless the context otherwise requires or unless otherwise expressly defined
herein, the terms defined in the Original Agreement shall have the same meanings whenever used in this Amendment. As used herein, the following terms shall have the following meanings: 

        "Amendment" means this Eighth Amendment to Loan Agreement. 

        "Loan Agreement" means the Original Agreement as amended by this Amendment. 

ARTICLE II.

Amendment  

        § 2.1. Debt. Section 6.2(a)(iii) of the Original Agreement is hereby amended to read in
its entirety as follows: 

        "(iii) obligations
under leases, whether capital leases or operating leases, entered into in the ordinary course of business in arm's-length transactions at competitive market
rates under competitive terms and conditions considering all aspects thereof, provided that the obligations payable over the remaining lives of any such leases do not in the aggregate exceed
$75,000,000, and in addition, obligations under oil and gas leases, real estate leases for office space used by Borrower, and leases for vehicles, office equipment and data processing equipment;" 

ARTICLE III.

Conditions of Effectiveness  

        § 3.1. Effective Date. This Amendment shall become effective as of the date first above written when,
and only when, Agent shall have received all of the following: 

        (a)  This
Amendment, duly authorized, executed and delivered by Borrower, Agent, and each Lender, and in form and substance satisfactory to Agent.

 

        (b)  A
certificate of a duly authorized officer of Borrower dated the date of this Amendment certifying: (i) that all of the representations and warranties set forth
in Article IV hereof are true and correct at and as of the time of such effectiveness; and (ii) as to such other corporate matters as Agent shall deem necessary. 

        (c)  Payment
of fees and disbursements of Thompson & Knight L.L.P. relating to this Amendment and the Loan Agreement as provided in the Loan Agreement. 

        (d)  Agent
shall have additionally received such other documents as Agent may reasonably request. 

ARTICLE IV.

Representations and Warranties  

        § 4.1. Representations and Warranties of Borrower. In order to induce each Lender to enter into this
Amendment, Borrower represents and warrants on the date hereof and as of the Effective Date to each Lender that: 

        (a)  The
representations and warranties contained in Article V of the Original Agreement are true and correct at and as of the time of the effectiveness hereof (except
as such representations and warranties have been modified by the transactions contemplated herein). 

        (b)  Borrower
is duly authorized to execute and deliver this Amendment and Borrower is and will continue to be duly authorized to borrow monies and to perform its obligations
under the Loan Agreement. Borrower has duly taken all corporate action necessary to authorize the execution and delivery of this Amendment. 

        (c)  The
execution and delivery by Borrower of this Amendment, the performance of its obligations hereunder and the consummation of the transactions contemplated hereby do
not and will not conflict with any provision of law, statute, rule or regulation or of the certificate of incorporation and bylaws of Borrower or of any material agreement, judgment, license, order or
permit applicable to or binding upon Borrower or result in the creation of any lien, charge or encumbrance upon any assets or properties of Borrower. Except for those which have been obtained, no
consent, approval, authorization or order of any court or governmental authority or third party is required in connection with the execution and delivery by Borrower of this Amendment. 

        (d)  When
duly executed and delivered, this Amendment, the Loan Agreement, and each other Loan Document, as affected hereby, will be a legal and binding obligation of each
Related Person that is a party hereto and thereto enforceable against such Related Person in accordance with its terms, except as limited by bankruptcy, insolvency or similar laws of general
application relating to the enforcement of creditors' rights and by equitable principles of general application. 

        (e)  The
audited Consolidated financial statements of Borrower dated as of December 31, 2001, and the unaudited Consolidated financial statements of Borrower dated as
of September 30, 2001, fairly present the Consolidated financial position at such date of Borrower and the Consolidated statement of operations and the changes in Consolidated financial
position for the periods ending on such date for Borrower. Copies of such financial statements have heretofore been delivered to Agent. Since December 31, 2000, no material adverse change has
occurred in the financial condition or business or in the Consolidated financial condition or business of Borrower.

 

ARTICLE V.

Miscellaneous  

        § 5.1. Ratification of Agreements. The Original Agreement as hereby amended is hereby ratified and
confirmed in all respects. Any reference to the Loan Agreement in any Loan Document shall be deemed to be a reference to the Original Agreement as hereby amended. The Loan Documents, as they may be
amended or affected by this Amendment, are hereby ratified and confirmed in all respects. The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein,
operate as a waiver of any right, power or remedy of Lenders under the Loan Agreement, the Notes, or any other Loan Document nor constitute a waiver of any provision of the Loan Agreement, the Notes,
or any other Loan Document. 

        §
5.2. Survival of Agreements. All representations, warranties, covenants and agreements of Borrower herein shall survive the
execution and delivery of this Amendment and the performance hereof, including without limitation the making or granting of the Loans, and shall further survive until all of the Obligations are paid
in full. All statements and agreements contained in any certificate or
instrument delivered by Borrower hereunder or under the Loan Agreement to any Lender shall be deemed to constitute representations and warranties by, and/or agreements and covenants of, Borrower under
this Amendment and under the Loan Agreement. 

        §
5.3. Loan Documents. This Amendment is a Loan Document, and all provisions in the Loan Agreement pertaining to Loan
Documents apply hereto. 

        §
5.4. Governing Law. This Amendment shall be governed by and construed in accordance the laws of the State of Texas and any
applicable laws of the United States of America in all respects, including construction, validity and performance. 

        §
5.5. Counterparts. This Amendment may be separately executed in counterparts and by the different parties hereto in separate
counterparts, each of which when so executed shall be deemed to constitute one and the same Amendment. 

        THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS OF THE PARTIES.  

[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.] 

 

        IN
WITNESS WHEREOF, this Amendment is executed as of the date first above written. 

	

 	
 	

WESTERN GAS RESOURCES, INC.
	

 	
 	

By:	
 	

 Name:

Title:
	

 	
 	

BANK OF AMERICA, N.A., as Agent and Lender
	

 	
 	

By:	
 	

 Name:

Title:
	

 	
 	

ABN AMRO BANK N.V., a Lender
	

 	
 	

By:	
 	

 Name:

Title:
	

 	
 	

By:	
 	

 Name:

Title:
	

 	
 	

BANK ONE, NA, (MAIN OFFICE—CHICAGO), a Lender
	

 	
 	

By:	
 	

 Name:

Title:
	

 	
 	

CREDIT LYONNAIS NEW YORK BRANCH, a Lender
	

 	
 	

By:	
 	

 Name:

Title:
	

 	
 	

FLEET NATIONAL BANK, a Lender
	

 	
 	

By:	
 	

 Name:

Title:

 

	

 	
 	

SOCIÉTÉ GÉNÉRALE SOUTHWEST AGENCY, a Lender
	

 	
 	

By:	
 	

 Name:

Title:
	

 	
 	

UNION BANK OF CALIFORNIA, N.A., a Lender
	

 	
 	

By:	
 	

 Name:

Title:
	

 	
 	

By:	
 	

 Name:

Title:
	

 	
 	

U.S. BANK NATIONAL ASSOCIATION, a Lender
	

 	
 	

By:	
 	

 Name:

Title:

 

CONSENT AND AGREEMENT  

        Each of the undersigned hereby (i) consents to the provisions of this Amendment and the transactions contemplated herein, and (ii) ratifies and
confirms its respective Guaranty dated as of April 29, 1999 made by it in favor of Agent for the benefit of each Lender, and agrees that its obligations and covenants thereunder are unimpaired hereby
and shall remain in full force and effect. 

Date:
February 25, 2002 

	

 	

 	

MIGC, INC.

WESTERN GAS RESOURCES TEXAS, INC.

MOUNTAIN GAS RESOURCES, INC.

LANCE OIL & GAS COMPANY, INC.

WESTERN GAS WYOMING, L.L.C.
	

 	
 	

By:	
 	

 Name:

Title:

CONSENT AND AGREEMENT  

        The undersigned hereby (i) consents to the provisions of this Amendment and the transactions contemplated herein, and (ii) ratifies and confirms its
Guaranty dated as of October 14, 1999 made by it in favor of Agent for the benefit of each Lender, and agrees that its obligations and covenants thereunder are unimpaired hereby and shall
remain in full force and effect. 

Date:
February 25, 2002 

	

 	
 	

MGTC, INC.
	

 	
 	

By:	
 	

 Name:

Title:

QuickLinks

Exhibit 10.26

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