EMPLOYMENT AND CONFIDENTIAL INFORMATION AGREEMENT
AGREEMENT made and entered into this 11th day of January 2001, by and between Hyseq, Inc. of 670
Almanor Avenue, Sunnyvale, California 94085 (the "COMPANY") and Ted W. Love ("EMPLOYEE").
1. The Company hereby employs Employee in such capacity or capacities as set forth in the attached Addendum
("ADDENDUM"), beginning as soon as possible, and continuing until terminated by Employee or by the
Company, as provided in the Addendum which provides for at-will employment, subject in all cases to the terms
and conditions of the Addendum.
2. The term "CLIENT" in all paragraphs of this Agreement shall mean any person, firm, entity, company,
partnership, or corporation with whom the Company has contracted, negotiated, or otherwise dealt or has
attempted to contract, negotiate, or otherwise deal.
3. For all of the services rendered by Employee, the Company shall pay to Employee as compensation, the initial
sum of $485,000.00 per year, payable semi-monthly, so long as Employee continues to render services to the
Company, or such other sum in the manner and the amount as may be determined from time to time by the
Company. Employee shall also participate in Company's management bonus pool, with bonus payments to be
determined and paid in accordance with the terms of such plan. Employee shall also participate in employee
benefit plans maintained by the Company and in other benefits provided to senior executives, including retirement
and 401(k) plans, deferred compensation, medical and dental, annual vacation, paid holidays, sick leave, and
similar benefits, which are subject to change from time-to-time at the reasonable discretion of the Company.
4. Employee shall not during the period of employment engage in any other business or sideline that interferes
with Employee's ability to work for the Company, constitutes a conflict of interest, involves a disclosure of
Company Confidential Information, except as may be required by the Employee's