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Exhibit 10.1

SETTLEMENT AND CROSS-LICENSE AGREEMENT

January 2, 2007

This Settlement and Cross-License Agreement (this “Agreement”) is made and entered into between and
among Idaho Technology, Inc. (“Idaho Technology”); the University of Utah Research Foundation
(“Utah Research Foundation”); and Cepheid, a California corporation (“Cepheid”) as of the date
first set forth above.

Background Information

	 	A.	 	Idaho Technology and the Utah Research Foundation (collectively hereafter, “Idaho
Technology Plaintiffs”) claim to own and/or exclusively license certain patent rights
including rights to grant sub-licenses in the fields of Real-Time PCR, Rapid PCR
Amplification Methods, and Melting Curve Analysis.
	 
	 	B.	 	Idaho Technology Plaintiffs allege that Cepheid infringes certain patents, and has
filed a lawsuit styled, “Idaho Technology, Inc. and the University of Utah Research
Foundation v. Cepheid,” Case No. 2:05CV01063TS, pending in the United States District
Court for the District of Utah (the “Utah Litigation”). In the Utah Litigation, Idaho
Technology Plaintiffs specifically allege Cepheid’s infringement of U.S. Patent Nos.
6,787,338 and 6,569,627; and claims 76 and 77 of U.S. Patent No. 6,174,670, relative to
products including Cepheid’s GeneXpert® and SmartCycler® devices and kits identified as
the “IDI-Strep B Test.”
	 
	 	C.	 	The parties now wish to settle the Utah Litigation, on terms and conditions agreeable
to all parties, including the payment by Cepheid of monetary consideration to Idaho
Technology and the grant of rights in certain patents and patent applications by Idaho
Technology to Cepheid and by Cepheid to Idaho Technology, as specified below.

Accordingly, in exchange for good and valuable consideration, the receipt and legal adequacy of
which is expressly acknowledged, the parties hereby covenant and agree as follows:

Idaho Technology Licensed Patents

	 	1.	 	“Idaho Technology Licensed Patents” shall mean U.S. Patent Nos. 6,787,338; 6,503,720
and 6,303,305, pending U.S. Patent Applications Nos. 10/843,075 and 10/891,161, and all
continuations, divisions, CIPs, and respective foreign counterparts thereof. Idaho
Technology Licensed Patents shall also include claims 9, 10, 11, 56, 76, 80 and 107 of
U.S. Patent No. 6,174,670, claims of

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	 	 	 	substantially the same scope in foreign counterparts, and claims of continuations,
divisions, CIPs, and other patents claiming priority from U.S. Patent No. 6,174,670, but
only to the extent necessary to practice claims 9, 10, 11, 56, 76, 80 or 107 of U.S. Patent
No. 6,174,670, U.S. Patent Nos. 6,787,338; 6,503,720 and 6,303,305, or pending U.S. Patent
Applications Nos. 10/843,075 and 10/891,161.

	 	2.	 	“Cepheid Instrument” means a thermal cycling device or instrument marketed,
distributed, sold, leased or otherwise transferred by Cepheid that:

	 	a.	 	is primarily intended for use in the automated performance of the
polymerase chain reaction (PCR) process;
	 
	 	b.	 	has one or more positions, each for receiving a single reaction
vessel having a reaction volume no larger than 100 microliters, wherein the
temperature profile for thermal cycling each reaction can be controlled
independently of any other reaction, regardless of whether the reactions are
thermal cycled simultaneously, sequentially or otherwise;
	 
	 	c.	 	for such device or instrument that has more than one reaction vessel,
is capable of simultaneously thermal cycling all reaction vessels wherein each
vessel is controlled independently of the others during such simultaneous cycling;
	 
	 	d.	 	may optionally include use of a micro-array of nucleic acid reaction
locations within a reaction vessel, wherein the reaction vessel and micro-array
are arranged such that each location in the micro-array is exposed to the same,
common, reagent environment in the reaction vessel, and wherein the micro-array is
located or specifically configured to be located within a reaction vessel that is
proprietary to Cepheid;
	 
	 	e.	 	that but for the license granted in paragraph 4 below, would infringe
upon (including contributory infringement) or induce infringement of, one or more
of the Idaho Technology Licensed Patents; and
	 
	 	f.	 	is marketed, distributed, sold, leased or otherwise transferred using
trademarks owned by Cepheid.

For purposes of this Agreement, and by way of example, Cepheid’s current SmartCycler® and
GeneXpert® instruments are “Cepheid Instruments,” whereas air thermal cyclers having a carousel
(e.g. Idaho Technology’s R.A.P.I.D.®, Roche’s LightCycler®, and Corbett’s Rotor-Gene),
microtiter plate-based thermal cyclers (e.g. ABI’s 2720, 9700, and 9800), and flexible
pouch-based thermal cyclers wherein the sample is moved within the pouch between multiple
temperature zones (e.g. Idaho Technology’s RAZOR® and Iquum’s Liat®) are not “Cepheid
Instruments.”

	 	3.	 	“Cepheid Licensed Kits” means kits:

	 	a.	 	that include one or more PCR reagents (including but not limited to
polymerases, dNTPs, primers, probes, dyes, buffers, and instructions for use);
	 
	 	b.	 	that but for the license granted in paragraph 4 below, would infringe
upon (including contributory infringement) or induce infringement of, one or more
of the Idaho Technology Licensed Patents;

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	 	c.	 	wherein such PCR reagents are packaged in or marketed to be used with
a reaction vessel proprietary to Cepheid that is configured to be received
exclusively in a thermal cycling position of a Cepheid Instrument; and
	 
	 	d.	 	are marketed, distributed, sold or otherwise transferred (i)
exclusively using trademarks owned by Cepheid or (ii) using trademarks owned by
Cepheid and trademarks owned by an exclusive Cepheid distributor, provided that
(A) Cepheid’s trademarks shall be the primary and dominant marks in terms of size
and placement, and (B) the exclusive Cepheid distributor’s trademarks shall be
secondary and subordinate in terms of size and placement.

	 	4.	 	Grant by Idaho Technology – Subject to paragraph 10 below, Idaho Technology hereby
grants to Cepheid and its Affiliates the world-wide, non-exclusive, fully-paid up,
perpetual, royalty-free, non-terminable and irrevocable right and license to make, have
made, use, sell, offer to sell, have sold, import, and export Cepheid Instruments and
Cepheid Licensed Kits pursuant to the Idaho Technology Licensed Patents (the “Cepheid
License”). Additionally, Idaho Technology Plaintiffs release Cepheid for any claims of
past infringement of the Idaho Technology Licensed Patents and all of the claims of U.S.
Patent Nos. 6,569,627 and 6,174,670, but Idaho Technology grants no future rights in the
Cepheid License under U.S. Patent No. 6,569,627, and future rights under the Cepheid
License are only granted in claims 9, 10, 11, 56, 76, 80 and 107 of U.S. Patent No.
6,174,670. Solely with respect to Cepheid Instruments and Cepheid Licensed Kits
manufactured, distributed or sold by Cepheid (including by and through its distributors),
Idaho Technology Plaintiffs also release Cepheid’s distributors and customers for any
claims of past infringement of the Idaho Technology Licensed Patents and all of the claims
of U.S. Patent Nos. 6,569,627 and 6,174,670.
	 
	 	 	 	In addition, Idaho Technology covenants not to sue Cepheid for infringement of any claims
in continuations, divisions, CIPs and foreign counterparts of U.S. Patent Nos. 6,569,627
and 6,174,670 (the ‘627 and ‘670 patents) issued on or after the Effective Date, and other
patents issued on or after the Effective Date claiming priority from the ‘627 or ‘670
patent or the applications upon which such patents are based; provided, however, that (a)
such covenant not to sue extends solely to the extent that such Cepheid Instruments and
Cepheid Licensed Kits as listed and described in the “Product Specifications” (as such
quoted term is defined below), would, but for the Cepheid License, infringe upon (including
contributory infringement) or induce infringement of, one or more of the Idaho Technology
Licensed Patents; and (b) such covenant not to sue shall not extend to, and
expressly excludes, any of the following items, services or processes: (i) FRET
hybridization probe pairs, (ii) SYBR® Green I, (iii) LCGreen® I, LCGreen® Plus, (iv)
SimpleProbes®, (v) high resolution melting using a saturation dye and/or an unlabeled probe
(as defined in U.S. Patent Application Publication Nos. 2005/0233335 and 2006/0019253),
(vi) all claims of U.S. Patent No. 6,174,670 not specifically included in the Idaho
Technology Licensed

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	 	 	 	Patents, or (vii) any additional nucleic acid detection method wherein the detection means
or use thereof is proprietary to Idaho Technology and that is first filed, first sold,
first offered for sale, or for which rights are first acquired by Idaho Technology after
the Effective Date.
	 	 	 	For the avoidance of doubt, in the practice of the Idaho Technology Licensed Patents,
Cepheid’s use of TaqMan® probes, Scorpion® probes, and other detection moieties for which
use is not otherwise proprietary to Idaho Technology is specifically included within the
Cepheid License.
	 
	 	 	 	For purposes of this Agreement, “Affiliate” shall mean any person, firm, business,
corporation, limited liability company or other form of legal entity controlled by, under
common control with, or controlling, the party. For these purposes, “control” shall refer
to the ownership, directly or indirectly, of at least 50% of the voting securities or other
ownership interests of a person or entity.
	 
	 	 	 	For purposes of this Agreement, “Product Specifications” shall mean the product and
software specifications, information and other data disclosed by Cepheid to Idaho
Technology, pursuant to the Mutual Non-Disclosure Agreement referenced in paragraph 39
below, through a password-protected electronic data room. The Product Specifications shall
be, and hereby are, incorporated by reference as if set forth verbatim herein, and shall be
maintained for reference purposes as described in paragraph 39 below. Cepheid represents
and warrants that the Product Specifications accurately represent the Cepheid Instruments
and Cepheid Licensed Kits as of the date first set forth above.

Cepheid Licensed Patents

	 	5.	 	Cepheid Licensed Patents means and includes: U.S. Patent Nos. 6,713,297; 6,783,934;
6,911,327; and 6,942,971, plus any and all continuations, divisions, CIPs, foreign
counterparts and other patents claiming priority from said patents or the applications
upon which such patents are based, including pending U.S. Patent Application No.
11/225,247.
	 
	 	6.	 	“Idaho Technology Products” means a device, instrument or software used, marketed,
distributed, sold, leased or otherwise transferred by Idaho Technology that but for the
Idaho Technology License below, would infringe (including contributory infringement) or
induce infringement of one or more claims of any of the Cepheid Licensed Patents.
	 
	 	7.	 	Grant by Cepheid – Cepheid hereby grants to Idaho Technology and its Affiliates the
world-wide, non-exclusive, fully-paid up, perpetual, royalty-free, non-terminable and
irrevocable right and license to make, have made, use, sell, offer to sell, have sold,
import, and export Idaho Technology Products pursuant to the Cepheid Licensed Patents (the
“Idaho Technology License”). Additionally,

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	 	 	 	Cepheid releases Idaho Technology for any claims of past infringement of the Cepheid
Licensed Patents.

Non-blocking

	 	8.	 	It is the intent of the parties to allow Cepheid to exercise its rights and enjoy the
practical benefits of the Cepheid License and covenant not to sue, and for Cepheid’s
distributors to distribute and sell as contemplated by the “have sold” rights under the
Cepheid License, unhindered by other intellectual property rights that Idaho Technology
has the right to license or sublicense. To that end, but only to that end, and without
expanding the scope of the Cepheid License or covenant not to sue, Idaho Technology
represents and warrants that it does not, as of the date first set forth above, have the
power to license or sublicense any other patents or currently pending patent applications
that would materially block Cepheid from the exercise of any claim of the Cepheid License
(“Idaho Technology Blocking Patents”).
	 
	 	9.	 	Without expanding the scope of the Cepheid License, Idaho Technology hereby grants to
Cepheid, on a world-wide, non-exclusive, fully paid-up, royalty-free basis, a further
license and covenant-not-to-sue Cepheid for any such Idaho Technology Blocking Patents,
but only insofar as not to materially block Cepheid from the exercise of the Cepheid
License (the “Cepheid Additional Licenses”). Further, solely with respect to the sale or
other distribution of Cepheid Instruments or Cepheid Licensed Kits by Cepheid’s
distributors under the “have sold” rights of the Cepheid License, Idaho Technology hereby
covenants not to sue Cepheid’s distributors for infringement of any such Idaho Technology
Blocking Patents.
	 
	 	10.	 	Notwithstanding anything to the contrary in this Agreement, Idaho Technology’s
covenants not to sue and any licenses or other rights granted by Idaho Technology under
this Agreement (specifically including the covenants not to sue and licenses or rights
under paragraphs 4, 9, 12 and 23), shall not extend to, and expressly exclude any right of
Cepheid or any third party to make, have made, use, sell, offer to sell, have sold,
import, or export, or to recommend to users or prospective users of any Cepheid Instrument
or Cepheid Licensed Kits, any of the following items, services or processes: (a) FRET
hybridization probe pairs, (b) SYBR® Green I, (c) LCGreen® I, LCGreen® Plus, (d)
SimpleProbes®, (e) high resolution melting using a saturation dye and/or an unlabeled
probe (as defined in U.S. Patent Application Publication Nos. 2005/0233335 and
2006/0019253), (f) all claims of U.S. Patent No. 6,174,670 not specifically included in
the Idaho Technology Licensed Patents, or (g) any additional nucleic acid detection method
wherein the detection means or use thereof is proprietary to Idaho Technology and that is
first filed, first sold, first offered for sale, or for which rights are first acquired by
Idaho Technology after the Effective Date (the “Excluded Matters”).

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	 	11.	 	It is the intent of the parties to allow Idaho Technology to exercise the Idaho
Technology License, unhindered by other intellectual property rights that Cepheid has the
right to license or sublicense. To that end, but only to that end, and without expanding
the scope of the Idaho Technology License, Cepheid represents and warrants that it does
not have the power to license or sublicense any other patents or currently pending patent
applications that would materially block Idaho Technology from the exercise of the Idaho
Technology License (“Cepheid Blocking Patents”).
	 
	 	12.	 	Without expanding the scope of the Idaho Technology License, Cepheid hereby grants to
Idaho Technology on a world-wide, non-exclusive, fully paid-up, royalty-free basis, a
further license and covenant-not-to-sue Idaho Technology for any such Cepheid Blocking
Patents, but only insofar as not to materially block Idaho Technology from the exercise of
any claim of the Idaho Technology License (the “Idaho Technology Additional Licenses”).
Further, solely with respect to sales or other distribution by Idaho Technology’s
distributors under the “have sold” rights of the Idaho Technology License, Cepheid hereby
covenants not to sue Idaho Technology’s distributors for infringement of any such Cepheid
Blocking Patents.

Marking

	 	13.	 	Cepheid covenants and agrees that any Cepheid Instruments and any Cepheid Licensed
Kits manufactured, marketed, distributed, sold, imported or exported by or for Cepheid
under the Cepheid License or any Cepheid Additional Licenses shall be conspicuously
marked, labeled and packaged with the following label licenses (and advertised in a
consistent manner) to the extent reasonably practical:

	 	a.	 	For kits:

“The purchase of this product includes a limited, non-transferable license under U.S.
Patents Nos. 6,787,338; 6,503,720 and 6,303,305, and claims 9, 10, 11, 56, 76, 80 and
107 of U.S. Patent No. 6,174,670, and corresponding claims in patents and patent
applications outside the United States, owned by the University of Utah Research
Foundation and licensed to Idaho Technology, Inc., to use only this amount of product
and only in an instrument marketed, distributed, sold, leased or otherwise transferred
using a Cepheid trademark. No right is conveyed, expressly, by implication or
estoppel, under any other patent or patent claims owned by the University of Utah
Research Foundation or Idaho Technology, Inc. Without limiting the foregoing, no
right, title or license is herein granted with respect to the uses that are proprietary
to Idaho Technology or the University of Utah Research Foundation of fluorescent double
stranded nucleic acid binding dyes , specifically including but not limited to SYBR®
Green I, LCGreen® I, or LCGreen® Plus.”

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	 	b.	 	For instruments:

“The purchase of this instrument includes a limited, non-transferable license under
U.S. Patents Nos. 6,787,338; 6,503,720 and 6,303,305, and claims 9, 10, 11, 56, 76, 80
and 107 of U.S. Patent No. 6,174,670, and corresponding claims in patents and patent
applications outside the United States, owned by the University of Utah Research
Foundation and licensed to Idaho Technology, Inc. No right is conveyed, expressly, by
implication or estoppel, under any other patent or patent claims owned by the
University of Utah Research Foundation or Idaho Technology, Inc. Without limiting the
foregoing, no right, title or license is herein granted with respect to the uses that
are proprietary to Idaho Technology or the University of Utah Research Foundation of
fluorescent double stranded nucleic acid binding dyes, specifically including but not
limited to SYBR® Green I, LCGreen® I, or LCGreen® Plus.”

It is understood that Idaho Technology may update the above label licenses from time to
time by providing written notice to Cepheid of any changes, provided that Cepheid shall be
given sufficient time to make appropriate revisions to its labels and marketing materials.
Subject to its reservation of rights, remedies and protections of law related to the
Excluded Matters, and solely to the extent of the Cepheid License and any Cepheid
Additional Licenses, Idaho Technology covenants not to sue Cepheid or its distributors for
use of Cepheid Licensed Instruments or Cepheid Licensed Kits manufactured, distributed or
sold by Cepheid under the Cepheid License or the Cepheid Additional Licenses, provided such
manufacture, distribution and sale and such customer’s use of the Cepheid Licensed
Instruments or Cepheid Licensed Kits is otherwise in compliance with the terms and
conditions of this Agreement and applicable label licenses.

	 	14.	 	Idaho Technology covenants and agrees that any Idaho Technology Products
manufactured, marketed, distributed, sold, imported or exported by or for Idaho Technology
under the Idaho Technology License or any Idaho Technology Additional Licenses shall be
conspicuously marked, labeled and packaged with the following label licenses (and
advertised in a consistent manner) to the extent reasonably practical:

“The purchase of this product includes a limited, non-transferable license under U.S.
Patents Nos. 6,713,297; 6,783,934; 6,911,327; and 6,942,971, including pending U.S.
Patent Application No. 11/225,247, and corresponding claims in patents and patent
applications outside the United States, owned by Cepheid, to use this product. No
right is conveyed, expressly, by implication or estoppel, under any other patent or
patent claims owned by Cepheid.

It is understood that Cepheid may update the above label licenses from time to time by
providing written notice to Idaho Technology of any changes, provided that Idaho Technology
shall be given sufficient time to make appropriate

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revisions to its labels and marketing materials. Solely to the extent of the Idaho
Technology License and the Idaho Technology Additional Licenses, Cepheid covenants not to
sue Idaho Technology or its distributors or customers for use of Idaho Technology Products
manufactured, distributed or sold by Idaho Technology under the Idaho Technology License or
any Idaho Technology Additional Licenses, provided such manufacture, distribution and sale
and such customer’s use of the Idaho Technology Products is otherwise in compliance with
the terms and conditions of this Agreement and applicable label licenses.

Fields

	 	15.	 	All fields for Cepheid Licensed Instruments, Cepheid Licensed Kits, and Idaho
Technology Licensed Products.

Sublicensing and Assignments

	 	16.	 	Either party or its Affiliates may extend the rights licensed to it under the other
party’s patents to a bona fide joint venture to which a party or any of its Affiliates is
a party and to the other joint venture partner(s) in any such joint venture, but only to
the extent necessary for research and development. Any such sales of a product of a
Cepheid joint venture must be made using Cepheid’s trademarks, as described in paragraphs
2 and 3.
	 
	 	17.	 	Either party may transfer the rights licensed to it under the other party’s patents
to any third party that acquires all or substantially all of a party’s business and
operations under the Cepheid License or the Idaho Technology License. In such a situation
the transferor shall relinquish its license under this Agreement to the transferee.
	 
	 	18.	 	Except as otherwise provided in paragraphs 16 and 17, neither the rights under the
Idaho Technology License, the Cepheid License nor this Agreement as a whole, shall be
assignable or transferable by either respective party without the prior written permission
of the other party, which permission may be withheld at the sole discretion of the other
party. Notwithstanding the foregoing, without permission of the other party, and subject
to the other provisions of this paragraph, either party may assign or transfer all rights
and releases for past infringement, but only to the extent of Cepheid Instruments or
Cepheid Licensed Kits, and obligations under this Agreement to a merger partner or third
party in connection with such third party’s acquisition of all or substantially all of
such party’s assets.

Releases

	 	19.	 	Idaho Technology Plaintiffs shall, and hereby do, for themselves and for each of
their respective predecessors and successors, release and forever discharge Cepheid and
its respective past and present subsidiaries, parents, Affiliates,

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	 	 	 	officers, directors, employees, partners, agents, predecessors, successors, assigns and
attorneys, jointly and severally, (collectively, the “Cepheid Releasees”) of and from any
manner of actions and causes of action, damages and remedies whatsoever in law or in
equity, asserted or that could have been asserted in the Utah Litigation, or that could
have been asserted with respect to the Idaho Technology Licensed Patents, including without
limitation all claims for past (but not future) damages in connection with U.S. Patent Nos.
6,569,627 and 6,174,670. For the avoidance of doubt, these releases do not include,
however, any defense to a claim of infringement or a breach of license (whether asserted by
way of affirmative defense, counterclaim or declaratory judgment) that may be asserted with
respect to any patent or claims thereof.
	 
	 	20.	 	Cepheid shall, and hereby does, for itself and each of its predecessors and
successors, release and forever discharge Idaho Technology Plaintiffs and their respective
past and present subsidiaries, parents, Affiliates, officers, directors, employees,
partners, agents, predecessors, successors, assigns and attorneys, jointly and severally,
(collectively, the “Idaho Technology Releasees”) of and from any manner of actions and
causes of action, damages and remedies whatsoever in law or in equity, asserted or that
could have been asserted in the Utah Litigation, or that could have been asserted with
respect to the Cepheid Licensed Patents. For the avoidance of doubt, these releases do
not include, however, any defense to a claim of infringement or a breach of license
(whether asserted by way of affirmative defense, counterclaim or declaratory judgment)
that may be asserted with respect to any patent or claims thereof.
	 
	 	21.	 	The Parties hereby waive, with respect to the releases given above, to the extent
necessary and consistent with the scope of the releases herein, Cal. Civ. Code section
1542 and any statutory law or common law principle of any state or territory of the United
States of similar effect. Section 1542 provides: “A GENERAL RELEASE DOES NOT EXTEND TO
CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE
TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED
HIS OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”
	 
	 	22.	 	None of the releases in paragraphs 4, 7, 19 or 20 above shall apply to claims based
on events occurring after the Effective Date hereof. Further, and notwithstanding
anything to the contrary in this Agreement, with respect to the releases of claims
pursuant to paragraphs 4, 7, 19 or 20 above, such releases (a) shall inure solely to the
benefit of Cepheid and Idaho Technology and their respective Affiliates as of the date
hereof, as the case may be, (b) shall not inure to the benefit, directly or indirectly, of
any third party, including any transferee or sublicense of either party’s rights
hereunder, and (c) shall not be transferable or assignable, in whole or in part, to any
third party, except as permitted in paragraph 18.

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Covenant Not to Sue

	 	23.	 	Subject to its reservation of rights, remedies and protections of law related to the
Excluded Matters, Idaho Technology covenants not to sue Cepheid or Cepheid’s distributors
or customers with respect to Cepheid’s marketing, distribution, sale, lease or other
transfer (directly or through its distributors) of products that (i) are manufactured by
Becton, Dickinson & Co.; (ii) are marketed, distributed, sold, leased or otherwise
transferred by Cepheid under trademarks owned by Becton, Dickinson; and (iii) except for
being marketed, distributed, sold, leased or otherwise transferred under trademarks owned
by Becton, Dickinson, would otherwise constitute Cepheid Licensed Kits; and (iv) infringe
in any manner upon one or more claims of the Idaho Technology Licensed Patents. However,
nothing in this Agreement shall limit Idaho Technology’s rights or remedies against
Becton, Dickinson or against the manufacturers of other third party products.
Furthermore, Cepheid’s rights under this Agreement shall not affect any royalty or other
obligations of third parties to Idaho Technology.
	 
	 	24.	 	Said covenant not to sue shall run with the Idaho Technology Licensed Patents, such
that any acquirer of any of the Idaho Technology Licensed Patents subject to these
covenants shall be bound to the same obligations as the parties herein.

Consideration

	 	25.	 	In addition to the licenses, releases and covenants above, Cepheid shall pay the sum
of Three Million Three Hundred Fifty Thousand Dollars ($3,350,000) (the “Settlement
Payment”) to Idaho Technology in accordance with wire transfer instructions to be provided
by Idaho Technology prior to the Effective Date, within three (3) business days of the
final execution and delivery of this Agreement, which sum is not refundable or subject to
any deductions or offsets of any kind or nature. Time is of the essence with respect to
payment of the Settlement Payment. The Settlement Payment shall be made in United States
currency by wire transfer in accordance with written wire transfer instructions provided
by Idaho Technology.
	 
	 	26.	 	Notwithstanding anything to the contrary in this Agreement, the parties covenant and
agree that (a) the releases under paragraphs 4 and 19, and the licenses granted under
paragraphs 4 and 9, are and shall be expressly subject to and conditioned upon Idaho
Technology’s timely receipt of the Settlement Payment in full as set forth above; and (b)
following any failure or refusal of Cepheid to make the Settlement Payment in full as set
forth above, Idaho Technology shall have the right, for itself and on behalf of the Utah
Research Foundation, to cancel and rescind the releases under paragraphs 4 and 19, and the
licenses granted under paragraphs 4 and 9, effective upon written notice to Cepheid.

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	 	27.	 	The parties acknowledge that the Settlement Payment, the releases under paragraphs 4,
7, 19 and 20, and the licenses granted under paragraphs 4, 7, 9 and 12, are not evidence
of what a reasonable royalty would be as determined in a suit for infringement of any of
the patents covered by this Agreement because, among other reasons, the determination of a
reasonable royalty in a patent infringement suit assumes that the relevant patent is
valid, enforceable and infringed, while in this case, the payment under this paragraph as
well as the releases under paragraphs 4, 7, 19 and 20, and the licenses granted under
paragraphs 4, 7, 9 and 12, represent a compromise settlement of disputed issues.
Accordingly, the parties acknowledge that the Settlement Payment is specifically based
upon many considerations, including but not limited to: the issues raised by the Utah
Litigation, the fact that the parties desire to comprise and settle the Utah Litigation
without incurring the cost, expense and risk of further litigation, and the fact that the
negotiations do not reflect what a willing licensee would pay a willing licensor in an
arm’s-length transaction with respect to any patent covered by this Agreement and the fact
that this Agreement includes cross-licenses as to certain patent rights between Idaho
Technology and Cepheid.
	 
	 	28.	 	If the Settlement Payment to Idaho Technology provided for herein should for any
reason subsequently be determined to be “voidable” or “avoidable” in whole or in part
within the meaning of any state or federal law (collectively “voidable transfers”),
including, without limitation, fraudulent conveyances or preferential transfers under the
United States Bankruptcy Code or any other federal or state law, and Idaho Technology is
required to repay or restore any voidable transfers or the amount or any portion thereof,
or upon the advice of Idaho Technology’s counsel is advised to do so, then, as to any such
amount or property repaid or restored, including all reasonable costs, expenses, and
attorneys fees of Idaho Technology related thereto, the entire liability of Cepheid and
all rights of Idaho Technology against Cepheid, if any, existing or alleged prior to the
date of execution of this Agreement shall automatically be revived, reinstated and
restored and shall exist, and the licenses granted hereunder shall be automatically
terminated, as though this Agreement had never been executed and the voidable transfers
had never been made.
	 
	 	29.	 	No other royalties shall be due now or in the future for Cepheid Licensed
Instruments, Cepheid Licensed Kits, or Idaho Technology Licensed Products.

     Term:

	 	30.	 	The Cepheid License and the Cepheid Additional Licenses shall expire upon the last to
expire of the Idaho Technology Licensed Patents, whereas the Idaho Technology License and
the Idaho Technology Additional Licenses shall expire upon the last to expire of the
Cepheid Licensed Patents.

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     Representations and Warranties

	 	31.	 	Nothing contained in this Agreement is or shall be construed as: (a) a warranty or
representation by any of the parties to this Agreement as to the validity, enforceability
or scope of any of the Idaho Technology Licensed Patents or the Idaho Technology Blocking
Patents; (b) a warranty or representation that any manufacture, sale, lease, use or other
disposition of products will be free from infringement of any patent rights or other
intellectual property rights of any third-party; or (c) an obligation to furnish any
technical or other information or know-how.
	 
	 	32.	 	Nothing contained in this Agreement is or shall be construed as: (a) a warranty or
representation by any of the parties to this Agreement as to the validity, enforceability
or scope of any of the Cepheid Licensed Patents or the Cepheid Blocking Patents; (b) a
warranty or representation that any manufacture, sale, lease, use or other disposition of
products will be free from infringement of any patent rights or other intellectual
property rights of any third-party; or (c) an obligation to furnish any technical or other
information or know-how.
	 
	 	33.	 	The Idaho Technology Plaintiffs each represent and warrant that (i) they are, either
individually or collectively, the owners or joint owners of the right, title and interest
in and to the Idaho Technology Licensed Patents to the extent applied for or issued on or
before the date hereof; and (ii) they have the right and power to enter into this
Agreement and, have the power to grant the licenses, releases and covenants-not-to-sue set
forth herein.
	 
	 	34.	 	Cepheid represents and warrants that (i) it is the owner of the right, title and
interest in and to the Cepheid Licensed Patents; and (ii) it has the right and power to
enter into this Agreement and, has the power to grant the licenses, releases and
covenants-not-to-sue set forth herein.
	 
	 	35.	 	EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH IN THIS AGREEMENT, NO PARTY MAKES ANY
REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE, EXPRESS OR IMPLIED, REGARDING ANY
MATTER, INCLUDING WITHOUT LIMITATIONS THE IMPLIED WARRANTIES OF MERCHANTABILITY, LACK OF
INFRINGEMENT OF THE RIGHTS OF THIRD PARTIES, SUITABILITY AND/OR FITNESS FOR A PARTICULAR
USE OR PURPOSE.

     Additional Terms and Conditions:

	 	36.	 	The parties agree to promptly dismiss the Utah Litigation with prejudice, each side
to bear its own fees and costs, except that such dismissal shall not preclude the future
assertion of any claims, defense, or counterclaim solely with respect to any non-licensed
patent claims or portions thereof, or any defense reserved under paragraphs 19 and 20.

12

 

	 	37.	 	Confidentiality. The terms of this Agreement shall remain confidential. However,
the parties each respectively reserves the right to disclose portions of this Agreement
under confidentiality to third parties, as required by pre-existing agreements with such
third parties, to bona fide potential acquirers, to the parties’ respective auditors,
accounting and legal professionals, and as otherwise required by law; provided, however,
that (a) the disclosing party shall disclose only the minimum amount of information
required by applicable law and (b) any such disclosures shall be subject to, and comply
with, paragraph 39 below.
	 
	 	38.	 	Idaho Technology and Cepheid shall issue a joint press release regarding this
Agreement, the text of which shall be subject to mutual agreement of Idaho Technology and
Cepheid and shall be subject to paragraph 39 below. Except for the information disclosed
in the joint press release and the label license requirements set forth in paragraph 13
above, no party shall use the name of the other party or reveal the terms of this
Agreement on any publicity or advertising without the prior written approval of the other
parties, except that Idaho Technology and Cepheid may use the text of a written statement
approved in advance by both Idaho Technology and Cepheid without further approval.
	 
	 	39.	 	Notwithstanding anything to the contrary in this Agreement, (i) any disclosure of the
terms of this Agreement shall fairly and accurately describe the settlement as involving a
settlement payment to Idaho Technology and related cross-licenses of certain patent rights
between Idaho Technology and Cepheid; (ii) each party’s “Confidential Information” (as
such quoted term is defined below) shall remain subject to that certain Mutual
Non-Disclosure Agreement executed between Cepheid and Idaho Technology dated November 16,
2006 (the “NDA”); and (iii) neither party shall use or disclose any such “Confidential
Information” except as expressly permitted under the NDA. For purposes of this paragraph
39, the information set forth in documents # 1-4, 7, and 9-21 of the “Product
Specifications” shall be deemed Confidential Information under the NDA.
	 
	 	 	 	With respect to the Product Specifications, (i) on or prior to the date hereof, Cepheid
shall store or save the Product Specifications in electronic, read-only format on four (4)
separate DVD-ROMs, all of which are labeled “Cepheid-Idaho Technology Settlement and
Cross-License Agreement: Product Specifications” and dated; and (ii) on or prior to the
date hereof, Cepheid shall distribute the DVD-ROMs as follows: one (1) copy to Idaho
Technology; one (1) copy to Idaho Technology’s outside counsel of record in the Utah
Litigation, one (1) copy to Cepheid’s outside counsel of record in the Utah Litigation, and
one (1) copy to be retained by Cepheid.
	 
	 	40.	 	This settlement is intended solely as a compromise of disputed claims without further
litigation. Neither the fact of entry into this Agreement nor the terms hereof nor any
acts undertaken pursuant hereto shall constitute an admission or concession of liability
or of the validity of any claim or defense asserted in the Utah Litigation, or of any
wrongdoing toward any other person, including any breach of contract or violation of any
federal, state or local law, regulation or

13

 

	 	 	 	ordinance. The parties specifically disclaim any liability to each other for any alleged
wrongdoing of any kind. Neither the fact of entry into this Agreement nor the terms hereof
nor any acts undertaken pursuant hereto shall be offered or admitted in evidence in any
legal proceeding other than to enforce rights and obligations relating to this Agreement.
	 
	 	41.	 	Notwithstanding anything to the contrary in this Agreement, no implied licenses are
granted hereunder and, except for the license grants expressly set forth in paragraphs 4,
7, 9 and 12 above, no further rights or licenses are granted, by implication, estoppel or
otherwise, in or to any patents, patentable subject matter, trademarks, trade secrets,
copyrights or copyrightable subject matter or other tangible or intangible rights or
interests of any party hereto.
	 
	 	42.	 	All rights and licenses expressly granted under or pursuant to this Agreement,
specifically including the Cepheid License, the Idaho Technology License, the Cepheid
Additional License and the Idaho Technology Additional License are, and shall otherwise be
deemed to be, for purposes of paragraph 365(n) of the Bankruptcy Code, licenses of rights
to “intellectual property” as defined under paragraph 101(56) of the Bankruptcy Code. The
parties agree that the licensee of such rights under this Agreement shall retain and may
fully exercise all of its rights and elections under the Bankruptcy Code, including but
not limited to the right to retain all of its rights under this Agreement if the licensor
thereof as a debtor-in-possession or a trustee-in-bankruptcy rejects this Agreement.

     Miscellaneous.

	 	43.	 	Each of the provisions and agreements herein contained shall be binding upon and
inure to the benefit of the parties hereto. This Agreement shall not be assigned by
either party, except as otherwise provided in paragraphs 16 and 17 above.
	 
	 	44.	 	This Agreement (and the NDA referenced herein) constitutes the entire understanding
of the parties hereto with respect to the subject matter hereof. Except to the extent
expressly set forth herein, no prior negotiations, proposals, contracts, arrangements or
agreements, whether written or verbal, are made a part of this Agreement. No amendment,
modification or alteration of the terms hereof shall be binding unless the same be in
writing, dated subsequent to the date hereof and duly approved and executed by each party.
	 
	 	45.	 	Each party agrees that the releases and discharges contained in this Agreement are
given for good and adequate consideration, freely and voluntarily and after having
consulted with his, her or its counsel concerning the terms of this Agreement. Each
party acknowledges that they are represented by legal counsel of their choice and have had
the opportunity to consult with legal counsel to the extent desired regarding the meaning
and consequences of the terms of this Agreement and understand the same. Each party
acknowledges that they have been given adequate time within which to read and review this
Agreement and to consider whether or not to execute this Agreement. Each party affirms
that they are not

14

 

	 	 	 	relying on any representations or statements made by the other party which are not
specifically included in this Agreement.
	 
	 	46.	 	Nothing contained in this Agreement shall be construed as imposing any obligation to
institute any suit or action for infringement of any patents, or to defend any suit or
action brought by a third-party which challenges or concerns the validity or
enforceability of any patents licensed under this Agreement.
	 
	 	47.	 	This Agreement will not be binding until it has been signed below by all parties.
	 
	 	48.	 	Nothing contained in this Agreement shall be construed as an obligation to file any
patent application or to secure any patent or to maintain any patent in force.
	 
	 	49.	 	Except as required by paragraph 13 above, nothing contained in this Agreement shall
be construed as conferring any right to use in advertising, publicity, or other
promotional activities any name, trade name, trademark or other designation of either
party hereto and its subsidiaries (including any contraction, abbreviation or simulation
of any of the foregoing).
	 
	 	50.	 	Every provision of this Agreement is intended to be severable. If any term or
provision hereof is illegal or invalid for any reason whatsoever, such illegality or
invalidity shall not affect the validity of the remainder of this Agreement.
	 
	 	51.	 	The headings of this Agreement are inserted for convenience and identification only,
and are in no way intended to describe, interpret, define or limit the scope, extent or
intent of this Agreement or any provision hereof.
	 
	 	52.	 	Nothing in this Agreement shall be construed to place any or all of the parties in a
relationship of partners or joint venturers.
	 
	 	53.	 	This Agreement, and the application or interpretation thereof, shall be governed
exclusively by its terms and by the laws of the State of Utah (excluding its conflicts of
laws principles). Venue for all purposes shall be deemed to lie exclusively within the
state and federal courts located in the State of Utah. Each party irrevocably and
unconditionally consents to the personal jurisdiction of such courts and waives trial by
jury and any and all motions, objections or defenses, whether procedural or substantive,
based upon or directly or indirectly asserting lack of in personam jurisdiction,
inconvenient forum or the like.
	 
	 	54.	 	This Agreement and any counterpart original thereof may be executed and transmitted
by facsimile or by emailed portable document format (“.pdf”) document. The facsimile
and/or .pdf signature shall be valid and acceptable for all purposes as if it were an
original. This Agreement may be executed in multiple counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.

15

 

	 	55.	 	The waiver by either party, or the failure by either party to claim a breach, of any
provision of this Agreement shall not be construed or interpreted as a continuing waiver,
a waiver of any subsequent breach or to affect in any way the effectiveness of such
provision.

     THE UNDERSIGNED hereby execute and deliver this Agreement and make the same effective as of
the latest date specified below (the “Effective Date”).

IDAHO TECHNOLOGY, INC.

	 	 	 	 	 	 	 
	By:	 	/s/ Kirk Ririe         
	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Print name/title:	 	Kirk Ririe	 	 
	 

	 	 	 	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Date: January 2, 2007	 	 
	 
	 	 	 	 	 	 
	THE UNIVERSITY OF UTAH RESEARCH FOUNDATION	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ John K. Morris	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Print name/title: John K. Morris	 	 
	 

	 	 	 	Secretary	 	 
	 
	 	 	 	 	 	 
	Date: January 2, 2007	 	 
	 
	 	 	 	 	 	 
	CEPHEID	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Joseph H. Smith	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Print name/title: Joseph H. Smith	 	 
	 	 	 	 	Senior Vice President, General Counsel and Secretary
	 
	 	 	 	 	 	 
	Date: January 5, 2007	 	 

16exv10w2

 

Exhibit 10.2

CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION
HAS BEEN FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTIONS.

SUBLICENSE AGREEMENT

This Agreement is entered into by and between

bioMérieux S.A. (hereinafter referred to as “bioMérieux”),

a corporation of France

having its principal place of business at 69280 Marcy l’Etoile, France

and

Cepheid, (hereinafter referred to as “Licensee”),

a corporation of the State of California,

having its principal place of business at 904 Caribbean Drive, Sunnyvale California 94089, USA

WHEREAS, bioMérieux is the exclusive licensee, with the right to sub-license, of certain
patents owned by Kainos Laboratories Inc. and Professor Keiichi Hiramatsu relating to the diagnosis
of methycillin resistant Staphylococcus aureus;

WHEREAS, Licensee wishes to acquire rights under these patents for the purpose of
developing, manufacturing, using and selling products for use in connection with its GeneXpert® and
SmartCycler® platforms; and

WHEREAS, bioMérieux has the right to grant sub-licenses, and is desirous of sublicensing
these patents to Licensee to the extent set forth herein.

NOW THEREFORE, THE PARTIES AGREE AS FOLLOWS:

Article 1. Definitions

	1.1	 	The term “Affiliate” means, as to any party hereto, any entity, that is controlling,
is controlled by, or is under common control with that party. “Control” shall mean the power
to direct the management and policies of an entity through the direct or indirect ownership of
at least 50% of the voting securities, by contract or otherwise.
	 
	1.2.	 	The term “Cepheid Platforms” means the GeneXpert® and the SmartCycler® platforms of
Licensee that are described in Exhibit 2 hereto, including any improvements brought by

			
	***	 	CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION
HAS BEEN FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTIONS.

 

 

	 	 	Licensee during the term hereof that do not substantially modify the technical features and
characteristics of these platforms, as these technical features and characteristics are
described in Exhibit 2 hereto.
	 
	1.3	 	The term “Collaboration Sepsis Products” means products that are developed or will be
developed under the Collaboration Agreement of January 16, 2007 between the Parties that are
for testing for sepsis directly from blood and/or for hospital-acquired pneumonia directly
from pulmonary samples obtained from bronchial alveolar lavage, BAL, and tracheal aspirates.
	 
	1.4	 	The term “Effective Date” means the last date of signature written below.
	 
	1.5	 	The term “Excluded Products” means products that test for sepsis in blood and/or for
hospital-acquired pneumonia in pulmonary samples and that differ by only two or less than two
pathogens from the panel of pathogens in the Collaboration Sepsis Products.
	 
	1.6.	 	The term “Field” means (i) human in-vitro diagnostics, to the exclusion of
Collaboration Sepsis Products and Excluded Products, and (ii) all other diagnostic
fields (including veterinary and environment testing).
	 
	1.7.	 	The term “Patents” means the patents and patent applications described in the
attached Exhibit 1 hereto, as well as any patents subsequently granted to such applications
including any substitutions, divisions, continuations, continuations in part, renewals,
reissues, confirmations or registrations, foreign counterparts and extensions of the
foregoing.
	 
	1.8.	 	The term “Net Sales” means the gross amounts actually invoiced to end-users by
Licensee and/or its Affiliates, on sales, or other dispositions for value, of Products, less:

	 	(i)	 	sales, use, value added taxes and/or other excise taxes or duties, if any, and less
	 
	 	(ii)	 	a lump sum fixed at [***] of the invoiced amount(s) (excluding V.A.T., if any) for
the Products, which shall be deemed to cover all usual deductions such as trade,
quantity and cash discounts, allowances or credits for returned products, insurance,
packaging and transport costs

	 	 	Products may be sold under a reagent rental agreement or analogous agreement, where a
purchaser is provided an instrument for use in conjunction with the Product and the costs
associated with the placement and use of the instrument are not separately billed, but
instead represent some portion of the purchase price of the Product, such that the
transaction does not enable determination of Net Sales solely with respect to a Product. In
such event, the Net Sales for those units of such a particular Product that is sold on a
reagent rental or analogous basis shall be calculated by multiplying for each Product, (i)
the average Net Sales price per unit of said Product, during the royalty-paying period in
question, to end users on other than a reagent rental or analogous basis, by (ii) the number
of such units of said Product sold on a reagent rental or analogous basis during the period
for which Net Sales is being calculated.

			
	***	 	CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION
HAS BEEN FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTIONS.

 

 

	 	 	In the event that a Licensed Product is testing for several bacteria including
Staphylococcus aureus, Net Sales of such Licensed Products for purposes of determining
royalties shall be calculated by dividing the Net Sales of such Product by the number of
different genus of bacteria that are tested using such Licensed Product, provided however
that the maximum number of genus taken into account for the purpose of this clause shall be
limited to three (3). For example, the testing for Staphylococcus aureus, MRSA and MSSA
using one Licensed Product accounts for one genus.
	 
	 	 	For Products sold by Licensee and/or its Affiliates to distributors, the Net Sales
shall mean the gross amount actually invoiced to distributors by Licensee and/or its
Affiliates, on sales, or other dispositions for value, of Products, increased by a mark-up
of [***] of such gross amount, less the deductions allowed under sub-sections (i) and (ii)
of the first paragraph of this Section 1.8 above.
	 
	 	 	Sales or other transfers of Products to Cepheid’s Affiliates or between Cepheid’s
Affiliates and resold to third parties shall not constitute Net Sales of Products until the
Products are sold to third parties who are not Affiliates.
	 
	1.9	 	The term “Products” means products, assays, diagnostic tests and/or kits designed
solely for use on any of the Cepheid Platforms, the development, manufacture, use or sale of
which would, but for the sublicense granted herein, infringe a Valid Claim of the Patents.
	 
	1.10	 	The term “Third Party License” means any royalty-bearing license agreement with a
third party which is not an Affiliate of Licensee, entered into by Licensee with said third
party, in the absence of which the manufacture, use, import or sale of Products by Licensee
would constitute an infringement of the relevant technology, if patented, or a
misappropriation, if unpatented.
	 
	1.11	 	The term “Valid Claim” means a claim of any unexpired patent or a claim pending in a
patent application within the Patents which has not been withdrawn, cancelled, lapsed or
disclaimed, or held permanently revoked, invalid or unenforceable by a court, government body
or other tribunal of competent jurisdiction in a decision from which an appeal has not been or
cannot be made.

Article 2. Licensing of Patents

	2.1	 	bioMérieux hereby grants to Licensee a personal, non-transferable (except pursuant to Section
9.2), irrevocable, non-exclusive, worldwide sublicense under the Patents, for the sole purpose
of developing, manufacturing, having manufactured, using, selling, offering for sale,
importing and/or having sold Products under Licensee’s own and sole label in the Field for the
duration of this Agreement.

			
	***	 	CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION
HAS BEEN FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTIONS.

 

 

	2.2	 	The sublicense granted to Licensee under Section 2.1 does not include the right for Licensee
to grant sublicenses, except that Licensee may grant sublicenses to its Affiliates who agree
to be bound by the terms hereof. Licensee shall remain liable to bioMérieux for any breach
hereof by any of its Affiliates.
	 
	2.3	 	Licensee’s right to have the Products manufactured by a third party manufacturer is granted
provided that the appointed third party manufacturer shall in no event be granted the right to
also sell the Products.
	 
	2.4	 	The requirement of the use of Licensee’s own and sole label with respect to the Products does
not preclude Licensee from adding the label of other licensors if required by the relevant
licenses nor the label of a distributor provided that such other labels are less prominent
than Licensee’s own label, and provided that such labelling shall not permit the equivalent of
an OEM sublicense.
	 
	2.5	 	Licensee hereby accepts the sublicense granted to it hereunder at its own risks and
undertakes to use its best efforts to develop, market and sell the Products in the whole
world.
	 
	2.6	 	Licensee shall promptly inform bioMérieux of any improvements, whether patentable or not, on
the technology covered by the Patents which it may at any time during this Agreement own,
possess or control and Licensee shall offer to bioMérieux a worldwide license to develop,
make, have made, use, sell, offer for sale, import and have sold any products using or
incorporating such improvements. Such offer shall be made in writing, setting out the major
terms, which shall be reasonable and commercially viable and be subsequently negotiated in
good faith.
	 
	2.7	 	Licensee shall credit bioMérieux as the licensor of Patents in its promotional materials,
including for example advertisements, package inserts and data sheets, intended for
distribution to third parties as follows:
“This product is sold under license from bioMérieux under US patent ......” or any such
equivalent mutually agreed upon reference.
Such reference shall be reasonably prominent and will be directly associated with
information on the Product.
	 
	2.8	 	No rights are granted to Licensee outside the Field.

Article 3. Financial Terms, Records and Accounting

	3.1.	 	In consideration of the rights granted under Article 2, Licensee shall pay bioMérieux on the
Effective Date a non-refundable, non deductible lump sum payment of three million euros (€
3,000,000) which payment shall not act as prepaid royalties creditable toward any running
royalties due under this Agreement.

			
	***	 	CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION
HAS BEEN FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTIONS.

 

 

	3.2.	 	Furthermore, Licensee shall pay bioMérieux, as from the date of first commercial sale of a
Product, a running royalty :

	 	—	 	of [***] of the Net Sales of Products designed to be used in connection with the
SmartCycler® platform; and
	 
	 	—	 	of the higher of [***] of the Net Sales and [***] per GeneXpert® MRSA cartridge, for
Products designed to be used in connection with the GeneXpert® platform.

	3.3.	 	In the event Licensee pays royalties under any Third Party License and provided that
Licensee provides to bioMérieux written evidence of the existence and applicability of such
Third Party License(s), the royalty rate under Section 3.2 shall be reduced by [***] of the
royalty rate Licensee pays under such Third Party License with respect to the Products.
	 
	 	 	However, notwithstanding the foregoing, in no event shall the royalty rate under this
Agreement fall below :

	 	—	 	[***] of Net Sales of Products designed to be used in connection with the SmartCycler®
platform and
	 
	 	—	 	for Products designed to be used in connection with the GeneXpert® platform, the higher of
[***] of Net Sales and (ii) [***] per GeneXpert® MRSA cartridge.

	3.4.	 	Licensee’s customers will have no royalty obligations to bioMérieux with respect to Products
for which royalties are paid by Licensee pursuant to this Article 3.
	 
	3.5.	 	Licensee agrees to keep and cause its Affiliates to keep accurate records and books of
account in accordance with good accounting practice, showing the information required to
permit calculation of Net Sales and royalties under this Article and the verification of said
calculation. These books and records shall be preserved for at least six (6) years from the
date of the royalty payments to which they pertain.
	 
	3.6.	 	On or before the forty-fifth (45th) day of each calendar quarter during the term
hereof, Licensee shall prepare and send to bioMérieux royalty reports for the previous
calendar quarter. Said reports shall indicate quantity sold, as well as total sales and Net
Sales, applicable rate reduction pursuant to Section 3.3, per Product and per country, under
this Agreement for the previous calendar quarter and shall show the amount of royalty due with
sufficient information to enable verification by bioMérieux. Sales to end-users and sales to
distributors shall be clearly segregated in each report.
	 
	 	 	Licensee shall include payment of the amount of royalties shown to be due with such report.
Reports shall be sent by Licensee to:

bioMérieux Business Development Department,

69280 Marcy l’Etoile,

France,

Fax n° +33 478 87 75 12.

	3.7.	 	Upon thirty (30) days prior written notice and not more than once per calendar year, Licensee
agrees to permit a certified public accountant appointed by bioMérieux and reasonably
acceptable to Licensee to enter upon the premises of Licensee and/or its

			
	***	 	CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION
HAS BEEN FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTIONS.

 

 

	 	 	Affiliates (but only if such Affiliates have records pertinent to the calculation of
royalties owed under this Agreement), during normal business hours, in order to inspect
files and records directly pertaining to Net Sales and royalties owed under this Agreement
for the purposes of verifying the accuracy of royalty amounts reported under this Agreement.
The audit period shall only include quarters for which Licensee has closed its financial
reporting records, in accordance with governmental requirements. Once examined, the royalty
reports and payments shall be closed for that period. The certified public accountant must
execute a confidentiality agreement reasonably acceptable to Licensee prior to the
commencement of any audit.. The results of such audit will be the confidential information
of Licensee; however, the certified public accountant may provide the results of the audit
to bioMérieux. In the event any audit results in a change upward in any royalty payment of
five percent (5%) or more for the audited period, Licensee shall pay the costs of such
audit. Otherwise, such audit shall be at bioMérieux’s expenses. In any case, Licensee shall
without delay pay to bioMérieux any underpayment of royalties, irrespective of the
percentage or amount of such underpayment.
	 
	3.8.	 	Payment of all royalties hereunder shall be made in EUROs at the middle rate of exchange
existing on the last day of the quarter to which the payment applies, as published in the Wall
Street Journal (European Edition). On overdue payments, an annual interest rate will be paid
at the lesser of ten percent (10%) per annum or the maximum interest rate then permissible
under French law. Any such interest calculation would only be applied to each day the payment
is past due as measured from the date of the check or wire transfer, i.e., 1/365 of the
interest rate applied to the balance past due for each day past due.
	 
	3.9.	 	If laws or regulations of any government require withholding of income taxes or other taxes
as may be imposed with regard to any payments due bioMérieux under this Section 3, Licensee
shall make such withholding payments as may be required and shall subtract such withholding
payments from such payments due bioMérieux. The Parties shall cooperate and sign all
documents aiming at claiming exemption from or reducing such withholding tax under any
applicable double taxation or similar treaty. Licensee shall submit proper evidence
of payment or other required documentation of such taxes to bioMérieux.

Article 4. Duration

	4.1.	 	This Agreement shall become effective on the Effective Date and shall, without prejudice to
an earlier termination pursuant to this Agreement, remain in effect until the last to expire
of the Patents.
	 
	4.2.	 	In the event either party breaches this Agreement, the other party may, in addition to all
other rights and remedies it may have, terminate this Agreement by written notice. Such
termination shall become effective on the date set forth in the notice of termination, but in

			
	***	 	CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION
HAS BEEN FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTIONS.

 

 

	 	 	no event shall it be earlier than sixty (60) days from the date of mailing thereof and shall
have no effect if the breach has been cured within the said period of notice.
	 
	4.3.	 	If one of the parties hereto becomes insolvent or makes an assignment for the benefit of
creditors or if proceedings in voluntary or involuntary bankruptcy are instituted on behalf of
or against said party or a receiver or trustee of said party’s property is appointed, this
Agreement may be terminated with immediate effect by written notice by the other party without
any notice period.
	 
	4.4.	 	bioMérieux may terminate this Agreement in the event that Licensee, without the prior written
consent of bioMérieux, assigns or transfers this Agreement in violation of Article 9.
	 
	4.5.	 	bioMérieux may terminate this Agreement with immediate effect in the event that Licensee
directly or through a surrogate challenges the validity of any of the Patents or provides
assistance to a third party knowing that such assistance will be used to challenge such
validity.
	 
	4.6	 	Upon the expiration or sooner termination of this Agreement, any of the Products in inventory
and not sold shall be deemed sold on the day such expiration or termination becomes effective
and royalty shall be due as per Article 3. Licensee shall then be entitled to sell such
Products.
	 
	4.7.	 	The termination of this Agreement shall not relieve Licensee from its obligation to pay
bioMérieux all amounts, including royalties, that shall have accrued up to the effective date
of termination.
	 
	4.8	 	Upon termination of this Agreement and subject to Section 4.6, all licences and rights
granted to Licensee hereunder shall terminate.

Article 5. Entirety Clause — Modifications

	5.1	 	This Agreement sets forth the entire agreement between the parties hereto relating to the
subject matter of this Agreement and supersedes all prior agreements pertaining to said
subject matter.
	 
	5.2	 	This Agreement may be modified only by a written document signed by the authorised
representatives of each party.

Article 6. Warranty

	6.1.	 	bioMérieux represents and warrants to Licensee that it has the full right and power to grant
the sublicense to Licensee as set forth in this Agreement.

			
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HAS BEEN FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTIONS.

 

 

	6.2.	 	Except as specifically set forth in Section 6.1. herein, BIOMERIEUX MAKES NO REPRESENTATIONS
AND GIVES NO WARRANTIES, EITHER EXPRESS OR
IMPLIED, ARISING BY LAW OR OTHERWISE, INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

In particular, with no limitation, nothing in this Agreement will be construed as :

	(i)	 	A warranty or representation by bioMérieux as to the validity or scope of the Patents;
	 
	(ii)	 	A warranty or representation by bioMérieux that practice under the Patents is or will be free
from infringement of any third parties’ patents or other intellectual property rights;
	 
	(iii)	 	Except as contemplated under Section 2.7, conferring the right to use in advertising,
publicity, or otherwise any trademark, trade name, or any contraction, abbreviation,
simulation, or adaptation thereof, of bioMérieux; or
	 
	(iv)	 	Conferring by implication, estoppel, or otherwise any license or rights under any patents of
bioMérieux other than the Patents.

	6.3.	 	In the event Licensee becomes aware of infringement of the Patents by a third party, it will
immediately notify bioMérieux thereof.
	 
	 	 	bioMérieux intends to use such reasonable efforts, as it in its sole discretion determines,
to pursue infringers and enforce its rights under the Patents.
	 
	 	 	Licensee, at bioMérieux’s expense and request, shall render all reasonable assistance and
cooperation in that regard. Any recoveries resulting from such action by bioMérieux shall
be bioMérieux’s property.

Article 7. Applicable Law and Dispute Resolution

	7.1.	 	This Agreement shall be deemed to have been made in and shall be construed in accordance with
the laws of France, for all matters other than scope and validity of any patents, as to which
the laws of the particular country where such patents are in dispute shall apply.
	 
	7.2.	 	The parties shall attempt in good faith to resolve promptly any dispute arising out of or
relating to this Agreement by negotiation. If the matter can not be resolved in the normal
course of business, any interested party shall give the other party written notice of any

			
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HAS BEEN FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTIONS.

 

 

	 	 	such dispute not resolved, after which the dispute shall be referred to senior executives of both
parties, who shall likewise attempt to resolve the dispute.
	 
	7.3.	 	If the dispute has not been resolved by negotiation within forty-five (45) days of the
disputing party’s written notice, or if the parties fail to meet within twenty (20) days as
from such notice, the parties shall endeavour to settle the dispute by mediation under the
supervision of and in accordance with the CPR Model European Mediation Procedure.
	 
	 	 	Unless otherwise agreed, both parties or each individual party may request the CPR to
appoint an independent mediator. The language of mediation shall be English and the seat of
mediation shall be agreed upon by both parties and, in the event parties do not timely
agree, the seat will be determined within France by the mediator.
	 
	7.4.	 	If the dispute has not been resolved by non-binding means as provided in Section 7.3 above
within ninety (90) days of the initiation of such procedure or if one of the parties has
informed the other party in writing that it is not willing to start or proceed with the
mediation as contemplated in Section 7.3. hereof, the dispute shall be finally and exclusively
settled by arbitration in Paris, by a single independent arbitrator appointed and acting in
accordance with the Rules of Arbitration of the International Chamber of Commerce. The
language of the arbitration shall be English. The arbitration shall be in lieu of any other
remedy and the award shall be final, binding and enforceable by any court having jurisdiction
for that purpose.
	 
	7.5.	 	This Article shall, however, not be construed to limit or to preclude either party from
bringing any action in any court of competent jurisdiction for injunctive or other provisional
relief as necessary or appropriate.

Article 8. Miscellaneous provisions

	8.1.	 	All notices which shall or may be given hereunder shall be in writing in English and shall be
made by prepaid registered mail or express courier or fax (confirmed by registered mail or
express courier) addressed to the recipient at the addresses herein stated, or at such other
address as a party may from time to time designate:

bioMérieux SA

69280 Marcy l’Etoile

France

Attn.: Corporate General Counsel

Fax: 33.4.78.87.53.70

and

Cepheid Inc.

904 Caribbean Drive,

			
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HAS BEEN FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTIONS.

 

 

Sunnyvale California 94089, USA

Attn.: General Counsel

Fax: (408) 400-8305

	8.2.	 	The invalidity or unenforceability of any terms of this Agreement under any applicable law
shall not affect the validity of its remaining terms. In such case, the parties shall agree
without delay on a valid substitute term which shall approximate as closely as possible the
purpose of the invalid or unenforceable term.
	 
	8.3.	 	Licensee warrants that its’ Affiliates that have been granted sublicenses under Section 2.2
will be bound by the terms and conditions of this Agreement and will assume the rights and
obligations set out herein.
	 
	8.4.	 	A failure by either Party to exercise or enforce any right conferred on it by this Agreement
shall not be considered a waiver of such right nor operate so as to preclude the exercise or
enforcement thereof at any subsequent time or on any subsequent occasion.

Article 9. Assignment 

	9.1	 	bioMérieux shall have the right to assign this Agreement to, or delegate its obligations
hereunder to be performed by any successor, Affiliate of bioMérieux or third party. Any such
successor shall be bound by all terms of this Agreement.
	 
	9.2	 	This Agreement is not assignable by Licensee without the prior written consent of bioMérieux,
except that no such consent is required to assign this agreement to the acquirer of all or
substantially all of Licensee’s assets to which this Agreement pertains. Any such successor
shall be bound by all terms of this Agreement.

Article 10. Hold harmless

Licensee shall defend, indemnify and hold harmless bioMérieux from and against any and all claims,
demands, damages, losses and expenses, including attorney’s fees to the extent arising from or in
connection with third party claims, suits, actions, demands or judgments, relating to the
development, manufacture, use or sale of the Products.

Article 11. Limitation of Liability

In no event will a party’s aggregate liability to the other party for all damages arising under
this Agreement exceed Fifteen Million US dollars.

EXCEPT AS SPECIFICALLY SET FORTH HEREIN, IN NO EVENT WILL EITHER PARTY HAVE ANY OBLIGATION OR
LIABILITY TO THE OTHER PARTY ARISING FROM TORT OR CONTRACT FOR LOSS OF BUSINESS OPPORTUNITY OR
PROFIT, OR FOR

			
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SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, UNLESS SUFFERED AS A RESULT OF ITS
WILFUL MISCONDUCT.

Article 12. Confidentiality

Each party to this Agreement agrees that any information obtained by it from the other party
pursuant to this Agreement, including the major terms of this Agreement, shall be kept in the
strictest confidence and shall only be used for the proper performance of this Agreement.
Confidential information of the disclosing party may not be disclosed by the recipient to any third
party except to employees and agents of the recipient that have a need to know such confidential
information to perform recipient’s obligations or exercise recipient’s rights under this Agreement
and who have executed a written confidentiality agreement or are bound by confidentiality
obligations at least as protective of disclosing party’s confidential information as the terms of
this Agreement. A party’s obligations with respect to confidential information shall not apply to
information which:

	 	a)	 	is in or becomes part of the public domain otherwise than by breach of this
Agreement; or
	 
	 	b)	 	the recipient can demonstrate was in its possession at the date of receipt
thereof; or
	 
	 	c)	 	is legally received by the recipient from a third party having the legal right to
transmit the same; or
	 
	 	d)	 	is independently developed by the recipient or any of its Affiliates without the
benefit of any disclosure by the disclosing party.

In the event the recipient is required by judicial or administrative process to disclose
confidential information of the other party, it shall promptly notify said party thereof so that
said party may oppose such process or reduce the scope of such disclosure.

bioMérieux shall be entitled to disclose the terms of this Agreement and the royalty reports
received from Licensee to its licensors of the Patents under confidentiality terms substantially
similar to those contained herein.

The foregoing obligation shall cease five (5) years after termination or expiration of this
Agreement.

Neither party shall issue any press release or other publicity materials, or make any external
presentations with respect to the existence, terms and conditions of this Agreement without the
prior written consent of the other party which shall not be unreasonably withheld. Notwithstanding
the foregoing obligations of confidentiality in this Article 11, each party may determine in its
respective reasonable discretion to file this Agreement with the Security and Exchange Commission
or any foreign equivalent (e.g., in a Quarterly Report on Form 10-Q or

			
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WITH RESPECT TO THE OMITTED PORTIONS.

 

 

Annual Report on Form 10-K
or any foreign equivalent) or as otherwise required by law, regulation or the rules of any
securities exchange on which such party’s securities are traded. The
filing party shall seek confidential treatment for at least the financial terms hereof in
connection with any such filing, subject to applicable law, regulation or rule of any applicable
securities exchange, and shall so notify the other sufficiently in advance to enable the other
party to comment and advise on the proposed filing.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement in duplicate by their duly
authorized officers.

	 	 	 	 	 	 	 
	For and on behalf of

	 	 	 	For and on behalf of	 	 
	bioMérieux S.A.

	 	 	 	Cepheid	 	 
	Date: January 16, 2007

	 	 	 	Date: January 16, 2007	 	 
	 
	 	 	 	 	 	 
	/s/ Stéphane Bancel

	 	 	 	/s/ Joseph H. Smith	 	 
	 

Name: Stéphane Bancel

	 	 
	 	 

Name: Joseph H. Smith
	 	 
	Title: Directeur Général Délégué

	 	 	 	Title: Senior Vice President, General Counsel	 	 

			
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HAS BEEN FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTIONS.

 

 

Exhibit 1

Patents

	 	 	 
	Docket Number

	 	00166 
	 
	 	 
	Title

	 	Diagnostic method
	 
	 	 
	Inventor(s)

	 	HIRAMATSU Keiichi
	 

	 	ITO Teruyo
	 

	 	AWAYA Akira
	 

	 	OHNO Hiroie
	 

	 	HAYASHI Tsukasa
	Internal Reference

	 	MRSA
	Current Owner

	 	Kainos Laboratories Inc.
	Applicant

	 	Kainos Laboratories Inc.
	First Filing Date

	 	23/02/1996 
	 
	 	 
	Memo Fields

	 	Disclosed is a specific identification method of an MRSA and MRC-NS, which is speedy, simple and reliable. Specifically, the present invention
provides a diagnostic method of an MRSA or MRC-NS, which comprises performing a reaction with a sample by making combined use of a part of a
mecDNA, which is an integrated adventitious DNA existing on a chromosome of the MRSA or MRC-NSA and carrying an mecA gene thereon, and a
part of a nucleotide sequence of a chromosomal DNA surrounding the integrated DNA; and also a diagnostic method of an MRSA or MRC-NS by
PCR, LCR or hybridization, which comprises performing a reaction with a sample by using a nucleotide sequence of a chromosomal DNA
surrounding an integrated site of a mecDNA in a chromosome of an MSSA or MSC-NS, wherein said method makes use of an occurence of a
negative reaction when said sample contains a mecDNA integrated therein.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Country	 	Application Number	 	Application Date	 	Publication Number	 	Publication Date	 	Patent Number	 	Grant Date	 	Expiration Date	 	Status
	AU

	 	AU1810997
	 	21/02/1997
	 	WO9731125
	 	28/08/1997
	 	AU696462
	 	10/09/1998
	 	21/02/2017
	 	Granted
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CA

	 	CA2218476
	 	21/02/1997
	 	WO9731125
	 	28/08/1997
	 	CA2218476
	 	18/06/2002
	 	21/02/2017
	 	Granted
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DE

	 	EP97903593.8
	 	21/02/1997
	 	WO9731125
	 	28/08/1997
	 	EP/DE0887424
	 	11/01/2006
	 	21/02/2017
	 	Granted
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	EP

	 	EP97903593.8
	 	21/02/1997
	 	WO9731125
	 	28/08/1997
	 	EP0887424
	 	11/01/2006
	 	21/02/2017
	 	Inactive
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	FR

	 	EP97903593.8
	 	21/02/1997
	 	WO9731125
	 	28/08/1997
	 	EP/FR0887424
	 	11/01/2006
	 	21/02/2017
	 	Granted
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	GB

	 	EP97903593.8
	 	21/02/1997
	 	WO9731125
	 	28/08/1997
	 	EP/GB0887424
	 	11/01/2006
	 	21/02/2017
	 	Granted
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	JP

	 	JP6037396
	 	23/02/1996
	 	WO9731125
	 	28/08/1997
	 	 	 	 	 	 	 	Filed
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	US

	 	US08945810
	 	21/02/1997
	 	WO9731125
	 	28/08/1997
	 	US6156507
	 	05/12/2000
	 	21/02/2017
	 	Granted
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	WO

	 	PCT/JP97/00487
	 	21/02/1997
	 	WO9731125
	 	28/08/1997
	 	 	 	 	 	 	 	Inactive

			
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HAS BEEN FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTIONS.

 

 

Exhibit 2

Description of the Cepheid Platforms

Cepheid Platforms are of two types: those with automated sample preparation, as in the Cepheid
GeneXpert® instrument, and those without automated sample preparation, as in the Cepheid
SmartCyler® instrument. Each of these platforms is a thermal cycler that has the following
characteristics:

	 	a.	 	It is primarily intended for use in the automated performance of the
polymerase chain reaction (PCR) process;
	 
	 	b.	 	It has one or more core modules, each one of which is a self-contained
thermal cycler;
	 
	 	c.	 	Each core module can cycle between two or more temperatures; however,
each core module can be programmed to follow essentially any temperature profile of
biological relevance;
	 
	 	d.	 	Each core module is configured for receiving a single reaction vessel,
and the platform is programmable so that the temperature profile for thermal
cycling each reaction vessel can be controlled independently of any other reaction
vessel by independently controlling each core module, regardless of whether the
reactions are thermal cycled simultaneously, sequentially or otherwise;
	 
	 	e.	 	Each core module in its base configuration has an integrated reading
system for detecting signals from a reaction vessel inserted into the core module.
However, in an optional configuration, the platforms have a separate detection
system for reading signals from a reaction vessel that contains a micro-array of
nucleic acid reaction locations, wherein the reaction vessel and micro-array are
arranged such that each location in the micro-array is exposed to the same, common,
reagent environment in the reaction vessel; and
	 
	 	f.	 	Each platform is marketed, distributed, sold, leased or otherwise
transferred using trademarks owned or controlled by Cepheid.

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