Exhibit 10.59

 

CONFIDENTIAL TREATMENT

 

SIXTH AMENDMENT TO THE

COMMERCIAL SERVICES AGREEMENT

 

This Sixth Amendment to the Commercial Services Agreement (this “Sixth
Amendment”) is made this 11th day of December, 2009 (the “Amendment Effective
Date”), by and between ASTRAZENECA PHARMACEUTICALS LP, a Delaware limited
partnership (“AstraZeneca”), and CUBIST PHARMACEUTICALS, INC., a Delaware
corporation (“Cubist”).

 

WHEREAS, AstraZeneca and Cubist previously entered into that certain Commercial
Services Agreement between AstraZeneca and Cubist, dated as of July 1, 2008 (as
amended as of February 26, 2009, May 20, 2009, September 30, 2009, October 15,
2009 and October 16, 2009, the “Agreement”);

 

WHEREAS, Section 6.1(a) of the Agreement provides that the []*;

 

WHEREAS, the parties desire to amend the Agreement to establish []* Sales
baselines and a manner of compensating Cubist for its activities under the
Agreement for the period from January 1, 2010 through June 30, 2010 (the “Six
Month Period”); and

 

WHEREAS, the parties desire for the Agreement to remain in effect until the end
of the Six Month Period (or such alternate period as is mutually agreed by the
parties in writing as set forth in this Sixth Amendment).

 

NOW THEREFORE, in consideration of the premises and the mutual covenants set
forth herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby agree as
follows:

 

I.              Annual Baseline Sales for the Six Month Period.  Exhibit A of
the Agreement is hereby amended so that Annual Baseline Sales for the Six Month
Period shall equal []*.  The Quarterly Baseline Sales for each Calendar Quarter
therein shall equal []*.  For all purposes under Article 6 of the Agreement, the
Six Month Period shall be treated as if it were a Calendar Year.  If the Term
ends at the end of the Six Month Period, then the last sentence of
Section 6.2(a) shall not apply.

 

II.             Calculation of Annual Amount Due for the Six Month Period. 
Exhibit A of the Agreement is hereby amended so that the Annual Amount Due for
the Six Month Period shall equal the amount set forth in the chart below,
determined based on the level of []* Sales achieved during the Six Month Period.
 For clarity, without limiting any of Cubist’s rights under the Agreement (as
amended by this Sixth Amendment), the Annual Amount Due calculations otherwise
set forth in Exhibit A shall not apply and the maximum compensation due to
Cubist under Section 6.2 of the Agreement for its activities during the Six
Month Period shall in no event exceed Nine Million U.S. Dollars ($9,000,000).

 

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*Confidential Treatment Requested.  Omitted portions filed with the Securities
and Exchange Commission (the “Commission”).

 

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Calculation of Annual Amount Due

for Six Month Period

(All figures in millions)

 

[]* Sales for Six Month Period

 

Amount Due

 

greater than or equal to $[]*

 

$

9

 

greater than or equal to $[]*
and less than $[]*

 

$

[]

*

greater than or equal to $[]*
and less than $[]*

 

$

[]

*

greater than or equal to $[]*
and less than $[]*

 

$

[]

*

greater than or equal to $[]*
and less than $[]*

 

$

[]

*

less than $[]*

 

$

4

 

 

III.           CALCULATION OF QUARTERLY AMOUNT DUE FOR THE SIX MONTH PERIOD. 
EXHIBIT A IS HEREBY AMENDED SO THAT “QUARTERLY AMOUNT DUE” IS DEFINED, SOLELY
FOR PURPOSES OF THE CALENDAR QUARTERS IN THE SIX MONTH PERIOD, AS FOLLOWS:

 

“QUARTERLY AMOUNT DUE” MEANS, SUBJECT TO SECTION 6.2(A) AND (F), (A) FOR THE
FIRST CALENDAR QUARTER OF CALENDAR YEAR 2010, []*, AND (B) FOR THE SECOND
CALENDAR QUARTER OF CALENDAR YEAR 2010, []*.  BY WAY OF ILLUSTRATION, []* SALES
DURING THE SIX MONTH PERIOD ARE []*, THEN CUBIST SHALL RECEIVE []* FOR THE FIRST
CALENDAR QUARTER OF 2010, AND []* FOR THE SECOND CALENDAR QUARTER OF 2010, FOR A
TOTAL PAYMENT TO CUBIST EQUAL TO []*.  FOR CLARITY, THE INVOICING AND TIMING OF
THE QUARTERLY AMOUNT DUE PAYMENTS SHALL BE IN ACCORDANCE WITH SECTION 6.2(B) OF
THE AGREEMENT.

 

IV.           2009 SIGNIFICANT MARKET EVENTS.  IF CUBIST DESIRES AN ADJUSTMENT
TO ANNUAL BASELINE SALES FOR 2009 PURSUANT TO SECTION 6.1(B) OF THE AGREEMENT
DUE TO A SIGNIFICANT MARKET EVENT, CUBIST SHALL REQUEST SUCH ADJUSTMENT IN
WRITING NO LATER THAN JANUARY 31, 2010.  IF CUBIST SO REQUESTS AN ADJUSTMENT TO
ANNUAL BASELINE SALES FOR 2009, THEN ASTRAZENECA MAY TERMINATE THE AGREEMENT
EFFECTIVE IMMEDIATELY BY WRITTEN NOTICE OF TERMINATION UNDER THIS PARAGRAPH IV
TO CUBIST AT ANY TIME ON OR AFTER THE DATE OF SUCH REQUEST, BUT NO LATER THAN
FEBRUARY 14, 2010.  IN THE EVENT THE AGREEMENT IS TERMINATED PURSUANT TO THIS
PARAGRAPH IV, []*.

 

V.            EXPIRATION OF AGREEMENT AS OF JUNE 30, 2010.  NOTWITHSTANDING
SECTION 6.1(A) AND THE FACT THAT THE []*, THE AGREEMENT SHALL NOT TERMINATE
PURSUANT TO SECTION 6.1(A) []*.  SECTION 15.1 OF THE AGREEMENT IS HEREBY AMENDED
SO THAT THE LANGUAGE THEREIN IS REPLACED WITH THE FOLLOWING LANGUAGE:  “THE TERM
OF THIS AGREEMENT SHALL COMMENCE ON THE EFFECTIVE DATE AND SHALL CONTINUE
THROUGH JUNE 30, 2010, UNLESS EARLIER TERMINATED PURSUANT TO SECTION 15.2 OR ANY
OTHER APPLICABLE PROVISION OF THIS AGREEMENT (THE “TERM”), PROVIDED THAT,
BEGINNING NO LATER THAN []*, 2010, ASTRAZENECA AND CUBIST SHALL NEGOTIATE []*
THE MANNER IN WHICH CUBIST IS TO BE COMPENSATED FOR ACTIVITIES TO BE PERFORMED
BY CUBIST DURING THE PERIOD FROM JULY 1 THROUGH DECEMBER 31, 2010, AND IF THE
PARTIES REACH AGREEMENT ON SUCH TERMS ON OR PRIOR TO MAY 1, 2010, THE TERM SHALL
BE

 

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*Confidential Treatment Requested.  Omitted portions filed with the Commission.

 

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EXTENDED UNTIL DECEMBER 31, 2010, UNLESS FURTHER EXTENDED BY MUTUAL WRITTEN
AGREEMENT OF ASTRAZENECA AND CUBIST.”

 

VI.           REPORTING AND AUDIT RIGHTS.  IN LIGHT OF THE BASIS FOR CALCULATING
THE ANNUAL AMOUNT DUE FOR THE SIX MONTH PERIOD, ASTRAZENECA SHALL HAVE NO
OBLIGATION TO REPORT, AND CUBIST SHALL HAVE NO RIGHT TO AUDIT, THE []* WITH
RESPECT TO THE SIX MONTH PERIOD; PROVIDED THAT, FOR THE AVOIDANCE OF DOUBT,
ASTRAZENECA SHALL CONTINUE TO HAVE THE OBLIGATION TO REPORT, AND CUBIST SHALL
HAVE THE RIGHT TO AUDIT, THE []* AMOUNTS AND CALCULATIONS PROVIDED BY
ASTRAZENECA FOR SUCH PERIODS.

 

VII.          DEFINITIONS.  ALL TERMS USED, BUT NOT DEFINED, IN THIS SIXTH
AMENDMENT SHALL HAVE THE RESPECTIVE MEANINGS SET FORTH IN THE AGREEMENT.

 

VIII.        CONSTRUCTION.  THE PRINCIPLES SET FORTH IN SECTION 1.2 OF THE
AGREEMENT SHALL APPLY TO THIS SIXTH AMENDMENT.

 

IX.           EFFECTIVE DATE; INCORPORATION OF TERMS; CONTINUING EFFECT.  THIS
SIXTH AMENDMENT SHALL BE DEEMED EFFECTIVE FOR ALL PURPOSES AS OF THE AMENDMENT
EFFECTIVE DATE.  THE AMENDMENTS SET FORTH IN THIS SIXTH AMENDMENT SHALL BE
DEEMED TO BE INCORPORATED IN, AND MADE A PART OF, THE AGREEMENT, AND THE
AGREEMENT AND THIS SIXTH AMENDMENT SHALL BE READ, TAKEN AND CONSTRUED AS ONE AND
THE SAME AGREEMENT (INCLUDING WITH RESPECT TO THE PROVISIONS SET FORTH IN
ARTICLE XVI (MISCELLANEOUS) OF THE AGREEMENT WHICH SHALL, AS APPLICABLE, BE
DEEMED TO APPLY TO THIS SIXTH AMENDMENT (INCLUDING WITH RESPECT TO THE GOVERNING
LAW)).  EXCEPT AS OTHERWISE EXPRESSLY AMENDED BY THIS SIXTH AMENDMENT, THE
AGREEMENT SHALL REMAIN IN FULL FORCE AND EFFECT IN ACCORDANCE WITH ITS TERMS AND
CONDITIONS.

 

X.            COUNTERPARTS.  THIS SIXTH AMENDMENT MAY BE EXECUTED SIMULTANEOUSLY
IN TWO OR MORE COUNTERPARTS, EACH OF WHICH SHALL BE DEEMED AN ORIGINAL, BUT ALL
OF WHICH TOGETHER SHALL CONSTITUTE ONE AND THE SAME INSTRUMENT.

 

[The remainder of this page has been intentionally left blank.]

 

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*Confidential Treatment Requested.  Omitted portions filed with the Commission.

 

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IN WITNESS WHEREOF, the parties, intending to be bound, have caused this Sixth
Amendment to be executed on their behalf by their duly authorized agent as of
the Amendment Effective Date.

 

 

ASTRAZENECA PHARMACEUTICALS LP

 

CUBIST PHARMACEUTICALS, INC.

 

 

 

 

 

 

By:

/s/ Rich Fante

 

By:

/s/ Robert J. Perez

 

 

 

 

 

Name:

Rich Fante

 

Name:

Robert J. Perez

 

 

 

 

 

Title:

President

 

Title:

Chief Operating Officer

 

[Sixth Amendment Signature Page]

 

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*Confidential Treatment Requested.  Omitted portions filed with the Commission.

 

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