Document:

EXHIBIT 10.56

REDACTED VERSION

SCALE UP AGREEMENT

By and between

ImmunoGen, Inc.,
a corporation organized under the laws of the Commonwealth of Massachusetts,
with its principal offices at 128 Sidney Street, Cambridge, Massachusetts 02139-4239,
U.S.A. (“ImmunoGen”)

and

SICOR—Società
Italiana Corticosteroidi S.r.l., an Italian corporation with single
shareholder, having its principal place of business at Via Terrazzano 77, 20017
Rho (MI), Italy (“Sicor”)

with
regards to the Maytansinoid Products DM1 and DM4 (these and other capitalized
terms as defined hereinbelow).

WHEREAS, under a certain Technology Transfer
and Development Agreement between ImmunoGen and Sicor, effective as of November 12,
2004 and amended on June 21, 2006 and December 15, 2006 (as so
amended, the “Technology Transfer Agreement”),
Sicor has provided and continues to provide ImmunoGen with expertise, technical
assistance and advice in connection with ImmunoGen fermentation and chemical
synthesis technologies in order to have such processes utilizable for the
production of maytansinoid derivative compounds at the industrial scale;

WHEREAS, in view of ImmunoGen’s intention to
prepare for [***] and with development of one or more Drug Products, Sicor has
made certain investments and is carrying out certain preparatory activities,
necessary as preliminary steps to scale-up the production of the Ansamitocins
and DMx compounds to be used in such Drug Products;

WHEREAS, ImmunoGen now desires that Sicor
scale-up the aforementioned processes, with the goal of producing one or both
of the Products in cGMP conditions;

WHEREAS, during such scale-up activities,
ImmunoGen is interested in having Sicor manufacture scale-up batches of such
Products;

WHEREAS, ImmunoGen also desires Sicor to
carry out certain preliminary regulatory work and other scale-up activities,
including the GMP-related Activities, regarding Maytansinol, certain
Ansamitocins and the Products, in connection with ImmunoGen plans to submit one
or more Health Registrations for the Drug Product(s);

WHEREAS, ImmunoGen intends to enter into a
Supply Agreement (the “[***] Supply Agreement”) with [***] (“[***]”) pursuant to which ImmunoGen will
provide [***] with
certain Products manufactured by Sicor under this Agreement;

 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
  
 

WHEREAS, Sicor is willing to carry out such scale-up activities and
GMP-related Activities, and to supply to ImmunoGen scale-up batches of the
Products, under the terms and conditions set forth hereinbelow;

NOW, THEREFORE, the parties hereto agree to the
following:

1.          Definitions.   Any term or
concept defined only in the Technology Transfer Agreement, or defined in this
Agreement by reference to a definition in the Technology Transfer Agreement,
shall have the meaning, and be interpreted and integrated using the terms and
conditions, set forth in the Technology Transfer Agreement. Any other terms
defined in both the Technology Transfer Agreement and this Agreement shall be
have the meaning set forth in this Agreement. Subject to the foregoing, whenever
used in this Agreement the terms defined in this Article 1 shall have the
following specified meanings.

1.1.       “Batch”  shall mean any
Product that is produced by Sicor during the same cycle of Manufacture, as
defined by the applicable Master Batch Records.

1.2.       “Certificate of Analysis”  shall mean a
document prepared by Sicor in the same form as generally used by Sicor for such
purpose and in a form and format substantially in the form attached hereto as Exhibit A that (i) lists all analytical tests and standards
Sicor uses to evaluate a Batch and/or any intermediate of a Product used in the
production of a Batch and (ii) certifying the results of each of the
foregoing.

1.3.       “cGMP” shall mean the then
current good manufacturing practices applicable to the manufacture of bulk
active pharmaceutical ingredients for drug products destined for marketing in
the United States or the European Union, in accordance with the applicable
parts of Title 21 of the United States Code of Federal
Regulations, the Guide to Good Manufacturing Practices for Medical Products as
promulgated under European Directive 2003-94-EC, and ICH7A, each as
amended or updated from time to time, as implemented by the respective Regulatory Authorities thereof.

1.4.       “Downstream Processing” shall mean the
downstream processing activities to be conducted by Sicor using the DSP
Technologies and any Project Inventions which the parties agree are applicable
to the conduct of the Scale-up Project.

1.5.       “Effective Date” shall mean 27 April 2007.

1.6.       “Fermentation Process” shall mean the
fermentation process activities to be conducted by Sicor using the ImmunoGen
Fermentation Process Technologies and any Project Inventions which the parties
agree are applicable to the conduct of the Scale-up Project.

1.7.       “GMP-related Activities” shall have the
meaning set forth in Article 3.

1.8.       “Manufacture” shall mean the
manufacture and quality control testing (including in-process, release, and
stability testing) of Ansamitocin(s) or Products, as appropriate, conducted
in accordance with this Agreement.

1.9.       “Manufacturing Documentation” shall mean all
Master Batch Records and any other executed batch
records with all associated documentation, including but not limited to [***] and [***] associated with
each Batch, as further defined in Appendix 4.

 2
 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
  
 

1.10.    “Manufacturing Process” shall mean any
and all processes (or step in any process) used or planned to be used by Sicor
in the Manufacture of the Products for ImmunoGen or the Supply Partners.

1.11.    “Manufacturing Registrations” shall mean any
and all applicable technical, medical or scientific licenses, registrations,
authorizations and/or approvals (including, without limitation, manufacturing
approvals and authorizations) that are required by any Regulatory Authority for
the Manufacture of Product, as amended or supplemented from time to time. For the sake of clarification, “Manufacturing
Registrations” shall not mean any of the aforementioned that are applicable solely to
drug master files or similar regulatory filings.

1.12.    “Master Batch Records” (or “MBRs”) shall mean the written descriptions of the
Manufacturing Process used hereunder for each Product, which shall include the technical requirements and specifications with
regard to the manufacturing methods, packaging process, and storage methods and
procedures, as applicable, and as further clarified, and subject to, Section 1
of Appendix 4.

1.13.    “Mutual Confidentiality Agreement” shall mean that
certain Mutual Confidentiality Agreement effective as of [***], by and among
ImmunoGen, [***] and Sicor.

1.14.    “Product” shall mean
either DM1 or DM4; “Products” shall
mean both DM1 and DM4.

1.15.    “Regulatory Guidelines and
Requirements” shall mean any
federal, state, local, national and supra-national laws, statutes, rules and
regulations, including the cGMP, and any other regulatory norms or guidelines,
in effect at any particular time, issued or required by the FDA and the
European Medicines Agency or other competent legislative bodies or Regulatory
Authorities of the United States and the European Union, applicable to a
particular activity hereunder, including the Manufacture of Product. For purposes of clarity, “Regulatory Guidelines and
Requirements” shall not mean any regulatory norms or guidelines that are specifically applicable
to drug master files for active pharmaceutical ingredient or
advanced intermediate, or similar regulatory filings for such substances,
including but not limited to norms or guidelines concerning their preparation,
submission, maintenance and updating, even where such files or submissions may
be required of the manufacturer of such substances in connection with the
filing and/or approval of Health Registrations.

1.16.    “Run” shall mean a
single fermentation run of the Manufacturing Process used hereunder to produce
Ansamitocins at the [***] liter fermentation scale at the Sicor Facility, and the
harvest, recovery, purification, quality testing and release of Ansamitocins. For
purposes of this Agreement, “[***] liter fermentation scale” shall mean a
fermentation carried out in a fermenter with a [***]-liter nominal
volume.

1.17.    “Scale-up Batches” shall mean each
and every Batch of the Products Manufactured by Sicor pursuant to Section 2.3
hereof.

1.18.    “Scale-Up Conforming Product” shall mean Product
which, at the time of delivery to ImmunoGen, conforms to cGMP as applicable to
non-validated processes, the Tentative Specifications and any other
Specifications agreed to by the Parties in writing, and the applicable Master
Batch Records.

 3
 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
  
 

1.19.    ““Scale-up Project” shall mean the
production of Scale-up Batches as set forth in Section 2.3, and the
associated pre-requisite scale-up activities and the GMP-related Activities set
forth in Section 2.2 and Appendix 1, and
Article 3, respectively.

1.20.    “Specifications” shall mean the
specifications and the quality control testing procedures applicable to the
Manufacture by Sicor of each of the Products, as set forth in Appendix 2 hereto, as amended in writing by the parties.
“Tentative Specifications” shall have the
meaning set forth in the same Appendix 2.

1.21.    “Term” shall mean the
period from the Effective Date to the date of termination or expiration of this
Agreement, pursuant to Article 6 hereof.

 4
 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
  
 

Additional Definitions.   Each of the
following definitions is set forth in the section of this Agreement or the
Technology Transfer Agreement indicated below:

	
  Definition

  	
   

  	
   

  	
   

  	
  Section

  
	
  Affiliate

  	
   

  	
  1.3 of Technology Transfer Agreement

  
	
  Ansamitocin P3

  	
   

  	
  1.2 of Technology Transfer Agreement

  
	
  Ansamitocins

  	
   

  	
  1.2 of Technology Transfer Agreement

  
	
  Applicable Acceptance Tests

  	
   

  	
  2.4

  
	
  Change of Control

  	
   

  	
  1.5 of Technology Transfer Agreement

  
	
  Claims

  	
   

  	
  8.3.1

  
	
  DM1

  	
   

  	
  1.7 of Technology Transfer Agreement

  
	
  DM4

  	
   

  	
  1.7 of Technology Transfer Agreement

  
	
  Drug Product

  	
   

  	
  1.3 of Technology Transfer Agreement

  
	
  DSP Technologies

  	
   

  	
  1.8 of Technology Transfer Agreement

  
	
  FDA

  	
   

  	
  1.9 of Technology Transfer Agreement

  
	
  Full Process Development

  	
   

  	
  1.13 of Technology Transfer Agreement

  
	
  Health Registrations

  	
   

  	
  1.14 of Technology Transfer Agreement

  
	
  ICC

  	
   

  	
  2,4

  
	
  Indemnitee

  	
   

  	
  8.3.3

  
	
  ImmunoGen Fermentation Process Technologies

  	
   

  	
  1.18 of Technology Transfer Agreement

  
	
  ImmunoGen Indemnitees

  	
   

  	
  8.3.1

  
	
  ImmunoGen Notice

  	
   

  	
  2.4

  
	
  Intermediates

  	
   

  	
  2.3.2.2

  
	
  Laboratory

  	
   

  	
  2.4

  
	
  Losses

  	
   

  	
  8.3.1

  
	
  Maytansinol

  	
   

  	
  1.24 of Technology Transfer Agreement

  
	
  Maytansinoid Products

  	
   

  	
  1.25 of Technology Transfer Agreement

  
	
  Minimum Yield

  	
   

  	
  2.3.1

  
	
  [***]

  	
   

  	
  1.27 of Technology Transfer Agreement

  
	
  Preparatory Work for the Scale-up Project

  	
   

  	
  6.1(a)(i) of Technology Transfer
  Agreement

  
	
  Regulatory Authority

  	
   

  	
  1.32 of Technology Transfer Agreement

  
	
  Supply Partner

  	
   

  	
  1.36 of Technology Transfer Agreement

  
	
  Sicor Confidential Information

  	
   

  	
  1.33 of Technology Transfer Agreement as
  supplemented by 2.11.1 hereof

  
	
  Sicor Facility

  	
   

  	
  1.34 of Technology Transfer Agreement

  
	
  Sicor Indemnitees

  	
   

  	
  8.3.2

  
	
  Strain

  	
   

  	
  1.35 of Technology Transfer Agreement

  
	
  Targeted Requirements

  	
   

  	
  1.37 of Technology Transfer Agreement

  

 

Appendices

Appendix 1 Scale up Project

Appendix 2 Specifications

 5
 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
  
 

Appendix 3 cGMP-Related Activities

Appendix 4 Manufacturing Documentation

Exhibits

Exhibit A Form of
Certificate of Analysis

2.          Scale-up and
Manufacture

2.1.       Preparatory Activities.   The parties hereby acknowledge and agree that Sicor has begun
and is continuing to carry out the Preparatory Work for the Scale-up Project as
contemplated in the Technology Transfer Agreement.

2.2.       Scale-up to [***] Liter Scale
Fermentation.   Sicor shall begin scale-up of the Fermentation
Process and the Downstream Processing of Ansamitocins to the [***] liter
fermentation scale in accordance with Appendix 1
attached hereto.

2.3.       Scale-up Batches

2.3.1.          Fermentation Scale-up.   As part
of the scale-up activities set forth in Section 2.2, Sicor shall
Manufacture Ansamitocins in [***] Runs in accordance with Sub-section 2.3.3, to
be used by Sicor in the Manufacture and supply of Product set forth in the
following Sub-section. In the event that the Manufacture of DM1 and DM4 as set
forth in Paragraph 2.3.2.1 does not result in at least [***] grams of such
substances and of any other Maytansinoid Products consumed in performing analytical sampling and/or any other activities performed during such Runs agreed to in writing by ImmunoGen (the “Minimum Yield”), Sicor shall Manufacture Ansamitocins
carrying out [***] Run. For purposes of determining the Minimum Yield, the
quantity of said other Maytansinoid Products shall be considered on a
proportional basis calculated from actual yields, as per the following example
(said example not to be deemed indicative in any manner of the yields or
sampling expected.

If [***] gram of Ansamitocins (from Fermentations Scale-up) is used
to Manufacture [***] gm DM1, and [***] grams of Ansamitocins are consumed for
sampling, then for purpose of determining the Minimum Yield, it will be
considered that [***] gram-equivalents of DM1 were used for sampling purposes.

Furthermore, notwithstanding any of the foregoing, if prior to startup of
the Chemical Synthesis Scale-up, laboratory scale production demonstrates a
significantly lower yield (difference of [***]) of DM1 (from
Ansamitocins) relative to that of DM4, then the overall quantities of DM4
required to reach the Minimum Yield (after subtracting DM1 and the
aforementioned Maytansinoid Products) shall be adjusted proportionately.

 6
 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
  
 

2.3.2.          Chemical
Synthesis Scale-up

2.3.2.1.             Upon completion of the Manufacture of Ansamitocins set forth
in Sub-section 2.3.1 hereof, Sicor shall Manufacture and supply to ImmunoGen (a) [***] Scale-up Batches
of DM1, and (b) [***] Scale-up Batches of DM4, or such other number of batches of
each Product as are agreed to by the parties. To the extent Sicor is obligated
under Sub-section 2.3.1 hereof to Manufacture Ansamitocins in a [***] Run in
accordance with Section 2.3.3, ImmunoGen shall inform Sicor as to whether
such Ansamitocins should be used to Manufacture DM1 or DM4, and Sicor shall
Manufacture such Product from the [***] Run in accordance with Appendix 1.

2.3.2.2.             Sicor shall carry out the assessments on the Scale-up
Batches as set forth in Appendix 1.
Without limiting the foregoing, Sicor shall (a) test a representative
sample from each Scale-up Batch in accordance with the schedule set forth on Appendix 1, (b) provide
and submit to ImmunoGen (i) a Certificate
of Analysis for the Ansamitocins and Maytansinol (the “Intermediates”) used to
Manufacture each Scale-up Batch within [***] days after
completion of testing and (ii) a Certificate of Analysis for each Scale-up
Batch approved by Sicor for delivery to ImmunoGen  [***] of each such Scale-Up Batch and (c) provide ImmunoGen
with a copy of the original set of Manufacturing Documentation associated with
each Scale-Up Batch as described in Appendix 4
attached hereto, provided that, until and unless
the parties have agreed to [***] governing the provision
of the Manufacturing Documentation set forth in Sections 9-11 of
said Appendix 4, Sicor may provide such
Manufacturing Documentation on a voluntary basis, but shall not be contractually
obliged to do so.

2.3.3.                       All Product supplied under this Section 2.3
shall conform to cGMP applicable for non-validated processes and to the
Tentative Specifications and shall be delivered to ImmunoGen in accordance with
Section 5.3 of the Technology Transfer Agreement (excluding the pro-forma
nature of the relative invoices, which shall not be applicable to Product
supplied under this Section).

 7
 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
  

2.4.       Inspection, Acceptance and
Rejection.   ImmunoGen shall have [***] days from
receipt of each Scale-up Batch at the ImmunoGen designated delivery site in
accordance with Sub-sections 2.3.1 and/or 2.3.2 to conduct acceptance
testing to determine whether the Scale-up Batch constitutes Scale-Up Conforming
Product. In the event that any Scale-up Batch fails to constitute Scale-Up Conforming
Product, ImmunoGen shall notify Sicor in writing within such [***] day period (the
“ImmunoGen Notice”). Except as otherwise
provided below, (a) Sicor shall, at Sicor’s own cost (including freight
and insurance) deliver additional or replacement quantities of such Scale-up
Batch failing to constitute Scale-Up Conforming Product to ImmunoGen and (b) in the event
that [***] Scale-up Batch fails to constitute Scale-Up Conforming Product, ImmunoGen and [***] shall have the
rights set forth in Section 2.11.2. Sicor may analyze any Scale-Up Conforming Products rejected
for nonconformity. In case of any disagreement between the parties as to
whether a Scale-up Batch constitutes Scale-Up Conforming Product, the claim shall be submitted for
resolution to an independent testing organization mutually agreed upon by the
parties which meets current Good Laboratory Practices as defined by the FDA
from time to time (the “Laboratory”),
the appointment of which shall not be unreasonably withheld or delayed by
either party. Should the parties fail to agree upon a Laboratory within [***] from the day
either party first proposes an independent testing organization, either
disputing party shall have the right to have recourse instead to the
International Centre for Technical Expertise of the International Chamber of
Commerce (“ICC”), in accordance with the ICC’s
Rules for Technical Expertise, with the determination of said Centre to be
deemed that of a Laboratory for purposes of this Section. The determination of
such entity with respect to all or part of any shipment of Scale-up Batch shall
be final and binding upon the parties. The fees and expenses of the Laboratory
making such determination shall be paid by the party against which the
determination is made. For purposes of this Agreement, any Scale-up Batch shall
be deemed to have been accepted by ImmunoGen upon the first to occur of
(i) the issuance by ImmunoGen to Sicor of a written notice of acceptance;
(ii) the failure of ImmunoGen to provide Sicor with the ImmunoGen Notice
on or before expiration of the [***] period described above; and (iii) the
determination by the Laboratory that the Scale-up Batch constitutes Scale-Up
Conforming Product as described above.

2.5.       Subsequent to completion of
the scale-up activities set forth and described in Sections 2.2 and 2.3
and Appendix 1 hereof, the
parties hereto shall discuss ImmunoGen’s need for other pre-commercial cGMP
production of DM1 and/or DM4 or other Maytansinoid Product(s), prior to and
additional to any [***] supplies as contemplated in Section 2.3 hereof, and to
the extent ImmunoGen determines such production is required, negotiate in good
faith the necessary terms and conditions relative thereto, including any
necessary extension of the Term.

2.6.       Sicor undertakes to use
reasonable commercial and technical efforts to meet the time periods set forth
in Appendix 1. The parties agree that to
the extent that the failure to meet any of such time periods is due to
scientific or technical reasons inherent to the experimental nature of the
scale-up activities and beyond Sicor’s reasonable control, Sicor will not be
held liable for such failure. In the event that
Sicor, at any time during the term of this Agreement, reasonably believes that
it will be unable to supply ImmunoGen in a timely manner with the full
quantities of Product as detailed in Appendix 1,
Sicor shall provide prompt written notice of same to ImmunoGen

2.7.       Sample
Retention.   Sicor shall take and retain, for such period as may
be required by Regulatory Guidelines and Requirements, samples of Ansamitocins,
Maytansinol and Product 

 8
 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
  
 

Manufactured under this Agreement sufficient to
perform at least full duplicate quality control testing. When required for
complying with specific requirements of Regulatory Authorities or other
Regulatory Guidelines and Requirements, Sicor shall submit to ImmunoGen amounts
from such samples, as required under the particular circumstances, as well as
the relative quality control and other records (including, but not limited to,
raw data) as ImmunoGen may reasonably request in writing in order for ImmunoGen
to meet such requirements. Throughout the term of this Agreement, ImmunoGen
also agrees to take and retain samples of Product Manufactured and supplied
hereunder, sufficient to perform at least full duplicate quality control
testing, for use to meet such specific requirements as described above.

2.8.       Record
Retention.   All batch records relating to the Manufacture of
Product by Sicor hereunder shall be retained and archived by Sicor for a period
of [***] years following completion of the applicable Batch, or such
longer period as may be required by Regulatory Guidelines and Requirements. Sicor shall, upon the expiration
of each retention period and in any case prior to destroying any such records,
provide written notice to ImmunoGen identifying the records that are no longer
subject to this Section 2.8 and shall, if requested in writing by
ImmunoGen within [***] days of its receipt
of Sicor’s notice, provide copies of such records to ImmunoGen.

2.9.       No Use of
Third Party Subcontractors.   Sicor acknowledges and agrees
that, with the exception of analytical testing of the Products or other
Maytansinoid Products, Sicor may not perform any of its obligations regarding
the Manufacture and supply of the Products, through any Third Party subcontractors
without the prior written consent of ImmunoGen, such consent not to
unreasonably withheld or delayed. The parties acknowledge that Sicor has
requested and received ImmunoGen’s consent for use of the following third party
contractors for carrying out applicable parts of the Preparatory Work for the
Scale-up Project and/or of this Agreement:

·       [***] for the
execution of the [***]; and

·       [***] for [***].

2.10.    Sicor
Facility; Equipment.   Except as otherwise provided for in Section 2.9
hereof, or consented to by ImmunoGen pursuant to such Section, Sicor shall
conduct all Manufacturing of Product at the Sicor Facility and shall maintain
at the Sicor Facility all equipment and other items used to Manufacture
Products. Sicor shall maintain the Sicor Facility, to the extent used for the
Manufacture of Product hereunder, and all such equipment and other items in a
state of repair and operating efficiency consistent with the requirements of
the Specifications, cGMP and all other applicable Regulatory Guidelines and
Requirements that affect the Manufacture of Product.

2.11.    Audit of Sicor Facility. Sicor
agrees that ImmunoGen, [***] and their respective agents shall have the
right, upon reasonable prior notice to Sicor, to inspect the Sicor Facility and
audit Sicor’s quality systems during normal business hours at times reasonably
agreed to with Sicor in order to ascertain compliance by Sicor with the terms
of this Agreement, including but not limited to, inspection of (a) the
materials used in the Manufacture of the Ansamitocins and Product, (b) the
holding facilities for such materials, (c) equipment, (d) the quality
control procedures and systems and (e) all records relating to such
manufacturing, quality control and quality assurance. The parties agree that,
except under extraordinary circumstances and needs, such inspections shall be
limited to [***] per calendar year. Any information disclosed in writing,
orally or by inspection of tangible objects, including but not limited to
general Sicor SOPs reviewed by 

 9
 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
  
 

ImmunoGen during such audits, shall be
considered Sicor Confidential Information and protected as such by ImmunoGen
pursuant to the terms of the Technology Transfer Agreement and by [***] pursuant to the
Mutual Confidentiality Agreement.

2.12.    Batch and
Run Failures.   Without limiting the rights of ImmunoGen and [***] under Section 2.11,
in the event that (i) [***] Scale-up Batch [***] to [***], or (ii) [***] Run [***] to [***] [***], based on the [***][***] during the
Technology Transfer Agreement, or (iii) any [***][***] to [***][***][***] or other [***], ImmunoGen, [***] and their
respective employees and agents shall have the right to meet with Sicor at the
Sicor Facility or such other location as may be mutually agreeable to the
Parties to discuss and otherwise have input on the steps to be taken into
consideration in order to [***] such [***] and the possible presence of at most [***] employee from
each of ImmunoGen and [***] during certain of such [***][***].

2.13.    Government
Inspections.   Sicor, in accordance with Regulatory Guidelines
and Requirements, shall permit representatives of any Regulatory Authority
having jurisdiction over the Manufacture of Product and/or marketing of Drug
Products in countries where ImmunoGen or Supply Partners are submitting Health
Registrations, including the FDA, to inspect the Sicor Facility in conjunction
with the Manufacture, storage, handling and shipping of the Product. ImmunoGen
will inform Sicor of such countries to the extent necessary for Sicor to meet
and comply with the foregoing obligation and any other obligations under this
Agreement. Sicor shall promptly advise ImmunoGen if Sicor receives a notice of
an impending inspection or if an authorized agent of the FDA or other
Regulatory Authority visits the Sicor Facility with respect to Product
Manufactured for ImmunoGen and shall, if requested by ImmunoGen, permit
ImmunoGen to be present at the Sicor Facility during any such inspection. Sicor
shall furnish to ImmunoGen non-confidential copies of any report regarding
Product Manufactured for ImmunoGen, including any FDA Form 483 notices (or
comparable notices of other governmental agencies), regulatory letters or
similar documents received from such Regulatory Authority and the application
of such report to such Product, if any, within [***] days of Sicor’s
receipt of such report.

2.14.    Communication and Meetings.   To the extent requested by
ImmunoGen and subject to the final sentence of this Section 2.14, (a) Sicor
shall meet with ImmunoGen and [***] not more than [***] per [***] at the Sicor
Facility or such other meeting place as the parties may agree to discuss the
Scale-up Project; (b) Sicor shall participate in any meetings of the joint
project committee, established by ImmunoGen and [***] under the [***] Supply
Agreement; and (c) Sicor shall permit [***] to attend any meeting of Sicor and ImmunoGen that involves the Sicor
Scale-up Project in a non-decision-making, observer capacity. For purposes of clarity,
all meetings of the joint project committee shall be conducted in accordance
with the following guidelines:

The joint project committee shall establish a schedule of times for regular
[***] (or as often as
otherwise agreed to by ImmunoGen, [***] and (to the
extent involving Sicor) Sicor) meetings, taking into account the planning needs
and timetable of the Project and the responsibilities of the joint project
committee. The meetings of the joint project committee shall be held by
teleconference.

2.15.    Information
and Assistance.   To the extent requested by ImmunoGen and
solely as applicable for Products Manufactured hereunder with non-validated
processes, Sicor shall provide ImmunoGen and [***] with such reasonable information and assistance relating to
Sicor’s 

 10
 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
  
 

Manufacture of Products hereunder as either
party may reasonably require for purposes of applying for and maintaining any regulatory
submissions which are Health Registrations for any Drug Products of ImmunoGen
or [***] containing
Product Manufactured by Sicor hereunder, including, without limitation,
providing ImmunoGen and/or [***] with all
reports, authorizations, certificates, methodologies, and other documentation
in the possession or under the control of Sicor relating to the Manufacture of
Product (or any component thereof). Such reports, authorizations, certificates, methodologies
and other documentation, shall not be deemed to be included or be required to
be included in drug master files or other similar regulatory filings mentioned
in Section 1.15 hereof. The parties shall use reasonable efforts to have Sicor
provide all such assistance by telephonic conference calls; provided, that, to
the extent any in-person meeting is required for such assistance, it shall be
on such terms as may be reasonably requested by Sicor.

3.          GMP-related
and Quality Control Activities.

3.1.       During scale-up and any
other operations contemplated under Article 2 hereof, Sicor will conduct
in a diligent manner the regulatory activities, quality assurance and analytical
activities set forth in Appendix 3
appropriate for cGMP production in accordance with all other Regulatory
Guidelines and Requirements.

4.          Payments.

4.1.       Scale-up and
GMP-related Activities.   In consideration of the scale-up
activities and production carried out by Sicor, including the associated
pre-requisite activities set forth in Sections 2.2 and Article 3
hereof, ImmunoGen shall pay to Sicor a non-refundable amount of Euro Five
Million (€5,000,000.00[***]percent of such amount will be due from
ImmunoGen [***]and [***]of such amount will be due from ImmunoGen [***][***]and [***] of such amount
will be due from ImmunoGen [***]and the [***]and [***]and[***]respectively and the [***]as provided [***] Sicor shall provide ImmunoGen with a written invoice with respect to the
occurrence of each event for which a payment is due under this Section 4.1
(in the case of the [***], with [***][***], as appropriate, with the [***][***][***], provided with [***][***][***]) and ImmunoGen shall pay Sicor the amount set forth in each
such invoice within [***] days of receipt
thereof(except for the [***][***] which shall be
due within [***] days of the
aforementioned ImmunoGen [***] of [***][***]).

4.2.       All payments set forth in Section 4.1
hereof shall be exclusive of any Value Added Tax or any other taxes, duties of
government charges due in respect of the products, services or other taxable or
chargeable items of which such payments are being made. Any applicable Value
Added Tax, as invoiced by Sicor, shall be paid by ImmunoGen as part of payment
for Sicor performance under this Agreement. In the event Sicor is required to prepay any other such tax
or fee, ImmunoGen will reimburse Sicor promptly upon receipt by ImmunoGen of
appropriate documentation supporting Sicor’s prepayment. When applicable, any
such charges shall be stated as separate line items on Sicor’s invoice(s).

5.          Supply of Products  [***].

5.1.       [***], the parties hereto shall negotiate in good
faith [***] pursuant to Section 6.1(c),
Appendix 6 and Appendix 7
of the Technology Transfer Agreement. Such negotiations shall also 

 11
 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
  
 

consider, to the extent feasible, the practical
experience and results obtained during the scale-up activities contemplated
herein.

6.          Term.

6.1.       This Agreement shall come
into force on the Effective Date and, unless terminated earlier as provided
herein, shall terminate upon the date of payment of the last sum due hereunder
for the scale-up activities and Scale-up Batches, or upon the date when the
last activities required to be performed hereunder are performed, whichever
date shall last occur unless specifically extended by further written
agreement.

6.2.       Termination
for Force Majeure.   If it becomes apparent to either party
hereto at any time during the performance of the scale-up activities, the
production of the Scale-up Batches and/or the GMP-related Activities that it
will not be possible to carry out such activities for scientific reasons or as
a result of Force Majeure (as described in Article 11 below), the parties
shall permit [***] business days
for discussion to resolve, if possible, the scientific issue or Force Majeure
issue giving rise to the problem. If the parties fail to resolve the problem within
this [***] day period,
either party shall have the right to terminate this Agreement, effective upon
written notice to the other. In the event of such termination for the
production activities carried out under Articles 2 and 3 and pursuant to Appendix 1 and Appendix 3
hereof, Sicor shall be paid an amount calculated as a proportion of the amounts
due under such Section 4.1, based on the actual time spent on activities
performed by Sicor relative to the overall estimated time established for all
such activities.

6.3.       Early
Termination for other Reasons.   Either party hereto may
terminate this Agreement effective upon written notice if either of the
following events occurs:

(a)        the other party commits a
breach of this Agreement and the breach is not remedied within [***] days after the receipt of notice identifying
the breach, requiring its remedy and stating the intent of the party to
terminate in the absence of remedy; or

(b)        the other party
(i) becomes unable to pay its debts as they become due, (ii) suspends
payment of its debts, (iii) enters into or becomes subject to corporate
rehabilitation or bankruptcy proceedings or liquidation or dissolution,
(iv) makes an assignment for the benefit of its creditors or
(v) seeks relief under any similar laws for debtor’s relief.

 12
 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
  

6.4.       Effect of
Termination.   Upon the expiration or termination of this
Agreement, the provisions of article 11.4 paragraphs a) through d) of the
Technology Transfer Agreement shall be applied mutatis
mutandis; provided, that (a) all references in such Section 11.4
paragraphs a) through d to the Project shall be deemed to refer to the Scale-up
Project as defined hereunder; and (b) the rights and obligations under
Section 4.1 of this Agreement, respectively, shall not survive early
termination of this Agreement by ImmunoGen for material breach by Sicor.

7.          Intellectual
Property Rights; Manufacturing Documentation.

7.1.       Intellectual
Property Rights.   The parties recognize and agree that it is
not specifically intended that the activities contemplated hereunder would give
rise to new technology or intellectual property. All provisions of
Article 7 of the Technology Transfer Agreement shall, in any event, be
applied mutatis mutandis to this Agreement;
provided, that all references to the Project in the Technology Transfer
Agreement shall be deemed to refer to the Scale-up Project.

7.2.       Manufacturing
Documentation.   Notwithstanding anything to the contrary in
this Agreement or in the Technology Transfer Agreement all Manufacturing Documentation shall be jointly-owned by
the parties and the use and disclosure by the parties of such Manufacturing
Documentation shall be subject to the following limitations: (a) ImmunoGen
may (i) use all Manufacturing Documentation for any and all purposes
without restriction, (ii) disclose to [***], under appropriate obligations of confidentiality and restricted use, all
Manufacturing Documentation, and (iii) disclose to any Third Party other
than [***] the
Manufacturing Documentation listed in Sections 4, 6, 7 and 12 of Appendix 4 for any and all purposes without restriction, provided that ImmunoGen shall consult with Sicor as to which
Manufacturing Documentation from Section 4 is so disclosed and
(b) Sicor may (i) use Manufacturing
Documentation solely for [***] and (ii) disclose Manufacturing Documentation to
(A) Regulatory Authorities, but solely to the extent
required to meet general regulatory requirements of such Regulatory Authorities
and in order to implement or carry out this Agreement and the
aforementioned activities and (B) any Marketing Partner if
and solely to the extent (1) such disclosure is reasonably approved by
ImmunoGen and (2) the relative documents and information regarding any
Batches, or parts thereof, for which the Products so Manufactured, or
intermediates thereof, are also supplied to such Marketing Partner. For purposes of
clarity, under no circumstances shall Sicor use or disclose
Manufacturing Documentation for any purpose not described in this Section 7.2.

8.          Representations.
Warranties and Indemnification.

8.1.       All provisions,
representations, warranties and exclusions of Sections 8.1, 8.3 and 8.4 of the
Technology Transfer Agreement shall be applied mutatis
mutandis to this Agreement; provided, that all references to the
Project in the Technology Transfer Agreement shall be deemed to refer to the
Scale-up Project.

8.2.       Additional
Representations of Sicor.   Sicor further represents and
warrants to ImmunoGen that:

 13
 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
  
 

8.2.1.          At the time of transfer to ImmunoGen of title and risk to
each Product pursuant to the applicable delivery terms, such Product:
(a) will have been Manufactured and shipped in accordance with the
applicable Specifications, cGMP, the Manufacturing Process used hereunder and
Regulatory Guidelines and Requirements, and (b) will not be adulterated or
misbranded under the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. § 321 et
seq., as amended, or under any other Regulatory Guidelines and Requirements.

8.2.2.          The Manufacture of Product hereunder shall be performed with
requisite care, skill and diligence, in accordance with industry standards by
individuals who are appropriately trained, experienced and qualified.

8.2.3.          Sicor has not been debarred, nor is subject to a pending
debarment and that Sicor will not use in any capacity, in connection with the
services to be performed under this Agreement, any person who has been debarred
pursuant to Section 306 of the Federal Food, Drug, and Cosmetic Act, 21
U.S.C. § 335a, or who is the subject of a conviction described in such section.
Sicor agrees to inform ImmunoGen in writing immediately if Sicor or any person
who is performing services under this Agreement is debarred or is the subject
of a conviction described in Section 306, or if any action, suit, claim,
investigation, or legal or administrative proceeding is pending or, to the best
of Sicor’s knowledge, is threatened, relating to the debarment or conviction of
Sicor or any person performing services hereunder.

8.2.4.          Sicor has and shall maintain during the Term all
Manufacturing Registrations required to perform its obligations under this
Agreement.

8.3.       Indemnification.

8.3.1.          Sicor.   Subject to Sub-section 8.3.2 and Section
9.1, [***] shall [***] and [***][***], its [***], their [***],[***] and [***], and their [***],[***] and [***] (the “[***]”),[***] and [***] ([***] and [***] of [***]) (collectively, “[***]”)[***] or [***] any one or more
of the [***] as a [***] of [***] or [***] of any [***],[***] and [***] and [***] of [***] and the [***] (collectively, “[***]”)[***] of (a) the [***] or [***], or (b) [***] or [***] in the [***]; provided,
however, that [***] be [***] to [***] or [***] a [***] for [***] to the [***] that [***] from (a) the [***] or [***] of an [***], or (b) the [***] of [***] or [***] by [***] under this
Agreement.  In the [***] of [***],[***], or other [***][***] an [***] by a [***] shall [***] of the [***] or [***], and [***] and [***], at its [***], the [***] of [***],[***] or other [***]and its [***], keeping [***] of the [***] of the [***] and/or [***].  The [***] shall [***] with [***] and [***], at [***] and [***], be [***] in [***],[***] or other [***] be [***] for [***] or [***] by the [***]

 14
 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
  
 

8.3.2.          ImmunoGen.   [***] to [***] and [***],[***] and [***],[***] and [***] and [***] (the “[***]”)[***] and [***] by or [***] or [***] of the [***], as a [***] or [***] of (a) the [***] of [***] or [***] by [***] this [***], or (b) the [***]  for [***]  or [***] by [***] or [***]  or [***]  of [***], of [***], or (c) [***]  or [***]  or [***] in the [***] of [***]; provided,
however, that [***] be [***] to [***] or [***] a [***]  for [***] to the [***] that [***]
from (i)
the [***]  or [***] of an [***] or (ii) the [***] of any [***] by [***] to [***] the [***] of [***]. In the [***] of [***], or other [***]  a [***] by a [***],[***] in [***] of the [***] or other [***], and [***] shall [***] and [***], at its [***], the [***] of the [***] or other [***] and its [***]  of the [***] of the [***] and/or [***].  The [***] shall [***] and [***], at [***] and [***], be [***]  in any [***],[***] or other [***].  [***]  be [***] for [***] or [***] by the [***].

8.3.3.          Identification of
[***].   An "[***]" means [***] with [***] to [***], and [***] with[***] to [***].  An
"[***]" means [***] of the [***] with respect to [***], and [***] of the [***] with [***] to [***].

8.3.4.          Indemnification
Procedures.   An [***] which intends to [***] under [***]  or [***] shall [***]  in
writing of any [***] or other [***]  in [***]  of [***] the [***], its [***], or any of [***] and [***] to [***]; provided, however, that [***] or [***] in [***] from [***] to the [***] that the [***] is [***].  [***] the [***], at its [***], to [***] and/or [***] or other [***], at the [***], and [***] to the [***] of such [***] or [***] by the [***]; provided, however, [***] the [***] or [***] any [***] the [***] in [***]  to [***].  [***] or [***] be [***] the [***] of the [***], not to be [***], and the [***] not be [***] for any [***] or [***] as [***].  [***], its [***]  and
their [***] and [***] with the [***] and its [***] in the [***] and [***]  of [***] or [***] by this [***], all at the [***] of the [***].[***] the [***], but not the[***], to be [***] by [***] of its own [***] and at its [***].

8.3.5.          Exclusion of
VAT.   Where a Party to this Agreement is required to [***]   or [***]   an [***], such obligation
to [***]   or [***]   [***]   extend to
any value added tax payable by the [***] in respect of
the cost, expense or other matter [***]   or [***],  [***]  any such value added tax which cannot normally
be offset from payables of value added tax to the competent tax authorities.

8.3.6.          [***]

[***]

[***]

[***]

8.3.7.          [***]

[***]

 15
 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
  
 

[***]

[***]

9.          Limitation
of Liability.   All provisions of Article 9 the Technology
Transfer Agreement shall be applied mutatis mutandis to
this Agreement; provided, that, all references to Appendices 4 and 5 in the
Technology Transfer Agreement shall be deemed to refer to Appendices 1, 2 and 3
of this Agreement, all references to the Project shall be deemed to refer to
the Scale-up Project, and all references to the Technology Transfer Agreement
shall be deemed to refer to this Agreement.

10.        Confidentiality.   All
provisions of Article 10 of the Technology Transfer Agreement shall be
applied mutatis mutandis to this Agreement;
provided, that, all references to the Project in the Technology Transfer
Agreement shall be deemed to refer to the Scale-up Project. 

11.        Force
Majeure.   Any delay in the performance of any of the duties or
obligations of either party hereto (except the payment of money) caused by an
event outside the affected party’s reasonable control, including, without
limitation, fire, flood, storm, explosions, earthquakes, electrical outages,
damage or failure of key equipment, Internet service providers, commotion,
riots, insurrection, acts of God or the public enemy, strikes or other labor
disturbances, accidents or shipping difficulties, embargoes, restrictions on
the use of any material, any inadequate supply of material, or any lawful
government, intergovernmental or supranational authority or body, shall not be
considered a breach of this Agreement and the time required for performance
shall be extended for a period equal to the period of such delay. The party so
affected shall give prompt notice to the other party of such cause, and shall
take whatever reasonable steps are appropriate in that party’s discretion to
relieve the effect of such cause as rapidly as possible.

12.        Severability.   In
the event that any provision in this Agreement becomes wholly or partially
invalid, the effectiveness of the remaining provisions shall not be affected.
The parties hereto undertake to replace any such invalid provision by a valid
one which most closely corresponds with the economic intention of the invalid
provision.

13.        Assignment.   All
provisions of Sections 12.11 and 12.12 of the Technology Transfer Agreement
shall be applied mutatis mutandis to this
Agreement.

14.        Successor in
Interest.   This Agreement shall be binding upon and inure to
the benefit of the parties hereto, their Affiliates, successors and permitted
assigns.

15.        Entire
Agreement.   This Agreement shall constitute the entire
agreement between the parties hereto with regards to the Scale-up Project and
shall supersede any other agreements, whether oral or written, express or
implied, as they pertain to the Scale-up Project. This Agreement shall not be
changed or modified except by written instrument signed by both parties.

16.        Notice.   Any
notice required hereunder may be served by either party on the other by
personal delivery, or by sending the same, first class registered mail or by
international courier service or by facsimile (in the latter case, promptly
confirmed by personal delivery, first class registered mail or international
courier service) addressed to the other party at its address first indicated
hereinabove, or to 

 16
 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
  
 

such other address as shall have been notified
in writing to the sending party by the receiving party from time to time, and
shall take effect upon receipt by the addressee. In the case of Sicor, said
notice shall be served upon or addressed to the attention of the Managing
Director with a copy to the Contracts Administrator.

17.        Waiver.   The
waiver by either party hereto of any right hereunder, or of the failure to
perform, or of a breach by the other party of any of the terms hereof shall not
be deemed a waiver of any other right hereunder or of any other breach or
failure by said other party, whether of a similar nature or otherwise.

18.        Governing
Law and Arbitration.    All provisions of Section 12.4 of
the Technology Transfer Agreement shall be applied mutatis
mutandis to this Agreement; provided, that, all references to the
Project in the Technology Transfer Agreement shall be deemed to refer to the
Scale-up Project.

19.        Property
Rights.   Except as provided for under Article 7 hereof,
nothing otherwise contained in this Agreement shall be construed as granting or
conferring any rights by license or otherwise, expressly, implicitly, or
otherwise for any invention, discovery or improvement made, conceived or
acquired prior to or after the date of this Agreement with regard to the
subject matter hereof.

20.        Manufacturing
Authorizations and Health Registrations.   Sicor shall be
responsible for obtaining, at its expense, any authorizations or other licenses
or permits, and any regulatory and government approvals, including all
Manufacturing Registrations, necessary for the Manufacture and supply of the
Product to ImmunoGen in accordance with the terms and conditions of this Agreement.
Sicor shall provide to ImmunoGen all information in its possession reasonably
relevant to specific methods of the Manufacture of the Products and any other
information specific to the Products and relevant to FDA and analogous non-U.S.
Health Registrations, including, but not limited to, IND, NDA and other Health
Registrations, in a timely manner as required to enable punctual submission by
ImmunoGen of necessary regulatory documentation. The aforementioned
authorizations, licenses, permits and approvals, and the information
contemplated under this Section, shall not be deemed to include or be required
to be included in drug master files or other similar regulatory filings
mentioned in Section 1.15 hereof.

21.        Third Party Beneficiaries.   Except as
set forth in Sections 8.3.1 and 8.3.2, no third party (including, without
limitation, any employees of either party) shall have or acquire any rights by
reason of this Agreement. Notwithstanding anything to the contrary in this
Agreement, (a) the parties hereby acknowledge and agree that ImmunoGen shall enter into the [***]pursuant to which
ImmunoGen will supply [***]Sicor hereby
acknowledges and agrees, in connection therewith, [***]

[Remainder of page intentionally left
blank.]

 17
 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
  
 

 

IN WITNESS WHEREOF, each
of the parties hereto has caused this Agreement in duplicate to be executed and
to be retained by its duly authorized officers or representatives this 30th day of April 2007.

	
  SIGNED BY

  	
   

  	
  /s/ Ms. MARGALIT
  FINE

  	
   

  
	
   

  	
   

  	
  Ms. Margalit Fine

  
	
   

  	
   

  	
  Managing Director

  
	
   

  	
   

  	
  duly authorized for and
  on behalf of

  
	
   

  	
   

  	
  SICOR—Società Italiana Corticosteroidi S.r.l.

  
	
  SIGNED BY.

  	
   

  	
  /s/ ING. STEFANO
  LOMBARDI

  	
   

  
	
   

  	
   

  	
  Ing. Stefano Lombardi

  
	
   

  	
   

  	
  General Manager

  
	
   

  	
   

  	
  duly authorized for and
  on behalf of

  
	
   

  	
   

  	
  SICOR—Società Italiana Corticosteroidi S.r.l.

  
	
  SIGNED BY

  	
   

  	
  /s/ PAULINE JEN RYAN

  	
   

  
	
   

  	
   

  	
  Pauline Jen Ryan

  
	
   

  	
   

  	
  Senior Vice President,

  Corporate Development & Operations

  
	
   

  	
   

  	
  duly authorized for and
  on behalf of

  
	
   

  	
   

  	
  IMMUNOGEN, Inc.

  

 

 18
 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
  

Appendix 1

Scale-up Activities

The production schedule will be organized in a
way that the [***] ([***] and [***]) will be [***] and [***] by the [***][***][***] of [***][***][***] in the [***][***] according to the following scheme:

1.                              Ansamitocins:   The
production of Ansamitocins will be performed by means of fermentation, in the [***][***][***][***] Sicor, [***][***]. There are [***]and[***]other than by [***]the [***]of the this [***].

The process will [***]in [***]to the [***]

·       [***]will be [***]in [***]and will [***]for [***]

·       [***]will be [***]in a [***]of [***]of [***]and will [***]for [***]The [***]can be used [***]or [***]to [***]or [***]of [***].

[***]will be [***]in [***]of [***]of [***]and will [***]The [***]can be [***]as a [***]or in [***]

 Appendix 1-1
 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
 

[***]will be [***]in the [***]and will [***]The [***]of the [***]will [***]the [***]from [***]or [***]of [***]

The [***]will be [***]in a [***]

[***]and [***]are [***]to [***]in [***]the [***]of such [***]will be [***]on the [***]of the [***]

[***]will be [***]to [***]

The [***]in the [***]of [***]of [***]will be [***]and [***]by the [***]The [***]is [***]to [***]

If [***]in [***]with a [***]is [***]In [***]the [***]of [***]will [***]to [***]at [***]the [***]in the [***]of the [***]this [***]will be [***]to [***].

[***]is [***]to [***]on [***]

2.                              Maytansinol:   The
production of Maytansinol will be performed by mean of chemical transformation
of Ansamitocins, there are no [***]and [***]other than by [***]during the [***]of the this [***].

The production of Maytansinol will be carried
out in the [***][***][***] in the Sicor, [***][***].

[***]are [***]each [***]about [***]

Each [***]will be [***]and [***]by the [***]The [***]is [***]to [***]

The [***]will be [***]as [***]in a [***]from a [***]

The [***]is [***]to [***]from a [***].

[***]The [***]may [***]on the [***]and on the [***]of the [***]

The [***]will be used [***]by the [***]

The [***]is [***]to [***]the [***]of the [***]

The [***]of [***]will be [***]to [***]the [***]is [***]to [***]the [***]of the [***]of the 
 [***]see [***]

[***]is [***]to [***]

3.                              DM1:   The
production of DM1 will be performed by mean of chemical transformation of
Maytansinol, there are no [***]and [***]other than by [***]the [***]of the this [***].

The production of DM1 will be carried out in the
[***][***][***] in the Sicor, [***][***].

[***]are [***]each [***]about [***]

Each [***]will be [***]and [***]by the [***]The [***]is [***]to [***].

The [***]will be [***]as [***]a [***]of [***]to that [***]from [***]of [***]

[***]The [***]may [***]on the [***]of [***]and on the [***]of the [***]

The [***]will be [***]by the [***]

The [***]is [***]to [***]the [***]

The [***]of [***]will be [***]to [***]

·       [***]is [***]to [***]

4.                              DM4:   The
production of DM4 will be performed by mean of chemical transformation of
Maytansinol, there are [***]and [***]than [***]the [***]of the this [***].

 Appendix 1-2
 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
  
 

The production of DM4 will be carried out in the
[***][***][***] in the Sicor, [***][***].

[***]

Each [***]will be [***]and [***]by the [***]The [***]is [***]to [***].

The [***]will be [***]as [***]a [***]of [***]to that [***]from [***]of [***]

·       The [***]may [***]on the
 [***]of [***]

[***]of the [***]

[***]of the [***]to be [***]

·        [***]of ImmunoGen on [***]of [***]

The [***]will be [***]by the [***]

The [***]is [***]to [***]the [***]

The [***]of [***]will be [***]to [***]

[***]is [***]to [***]

All the above activities will be performed in
accordance with Master Batch Records [***] of the present
Agreement.

The [***]and [***]the [***]in [***]on the [***]may be [***]by such [***].

 Appendix 1-3
 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
  

Appendix 2

DM1 Specifications

DM1 shall be
Manufactured and supplied according to the following Targeted Requirements as
previously set forth in Appendix 2 of the Technology Transfer Agreement

	
  TEST

  	
   

  	
   

  	
   

  	
  VARIABLE

  	
   

  	
  TARGET

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
   

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
   

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  

 

and as further developed by common agreement of the parties, prior to the
start of other scale-up activities (the “Tentative Specifications”).

Specifications shall mean the Tentative
Specifications, and after the scale-up activities, as further developed by
common agreement of the parties..

 Appendix 2-1
 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
 

Appendix 2

DM4 specifications

DM4 shall be
Manufactured and supplied according to the following Targeted Requirements as
previously set forth in Appendix 2 of the Technology Transfer Agreement

	
  TEST

  	
   

  	
   

  	
   

  	
  VARIABLE

  	
   

  	
  TARGET

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
   

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
   

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  

 

and as further developed by common agreement of the parties, prior to the
start of other scale-up activities (the “Tentative Specifications”).

Specifications shall mean the Tentative Specifications, and after the
scale-up activities, as further developed by common agreement of the parties.

 Appendix 2-2
 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
  

Appendix 3

GMP-related Activities

In the following paragraphs
all the described activities, and the documents generated thereof, will be
performed in accordance with the relevant SOPs enforced in Sicor at the moment
of the performance of such activities.

Written documents, resulting from the below activities, will be prepared
and provided to ImmunoGen in accordance with the provisions of Appendix 4 (for the documents cited therein).

1.          [***]:

[***]in                                        which the [***]of [***]and [***]will [***]will be [***]

[***]where not [***]will be [***]out [***]the [***]of the [***]

A                              [***]will be [***]and [***]

[***]will be [***]

At the [***]of the [***]a [***]will be [***]and [***]

1.1.                    [***]

[***]of [***]and [***]the [***]of the [***]will be [***]

A                              [***]will be [***]and [***]

[***]will be [***]

At the end of the [***]a [***]will be [***]and [***]

2.          [***]:

2.1.       [***]

For [***]in the [***]for [***]of [***]and [***]that are not [***]in use in [***]

The [***]will be [***]and [***]

Every [***]in the [***]of [***]and [***]will be [***]and [***]by the [***]in the [***].

2.2.       [***]

[***]by [***]in [***]of the [***]of the [***]and [***]will be [***]

The [***]of such [***]will be [***]only if [***]will [***]it as [***]

In case an [***]will be [***]this will be made in [***]to [***]

[***]will be [***]in the form of [***]that will be [***]in the [***]

2.3.       [***]and
[***]

For each of the [***]and [***]to be [***]a [***]of [***]to be [***]for the [***]of such [***]will be [***]

Upon [***]of [***]by ImmunoGen[***]a [***]will be [***]and [***]

For the [***]for which it will be [***]to [***]a [***]of [***]will be [***]

[***]

A                              [***]will be [***]and [***]

[***]will be [***]

At the end of the [***]a [***]will be [***]and [***]

The [***]will be [***]the [***]of any such [***]and [***].

 Appendix 3-1
 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
 

Upon [***]of the [***]and [***]each [***]will be [***]and [***]by the [***]The [***]will be [***]the [***]upon [***]and the [***]will be [***]if [***]all [***]A [***]will be then [***]this [***]will [***]all the [***]see [***]

3.          [***]s

3.1        [***]

[***]and [***]will be [***]and [***]they are[***]along the [***]

3.2        [***]

3.2.1    [***]

For each of [***]and [***]that will [***]and [***]by the [***]a [***]will be [***]This [***]will be [***]by [***]to [***]
to this [***]will be [***]in the [***]according to [***]

3.2.2    [***]

At the end of the [***]of each [***]the [***]will be [***]and [***]by [***]

[***]will be [***]and those [***]in [***]will be eventually [***]for the [***]of a new [***]

[***]will be [***]to the [***].

3.2.3    [***]

[***]will be issued
and approved before their use in the process.

4.          [***]

[***]will be [***]between [***]and [***]at the end of the [***]

[***]for detection of
calculated allowed [***]will be [***]and[***].

4.1.       [***]

A          [***]will be issued

At the end of the [***]of [***]the [***]will be [***]and [***]will be [***]to the [***]

Due to the fact that a [***]can be [***]only [***]an [***]will be [***]

The [***]will be [***]when [***].

4.2.       [***][***]

An [***]will be [***]

The [***]will be [***]

The [***]will not be [***]due to the fact that [***]of [***]and [***]outside the scope of this Agreement, are
planned to be [***]in [***]

5.          [***]

Even if these activities are not strictly related to[***]the [***]of [***]will be [***]of the [***]

If [***]a [***]for [***]from the one [***]for [***]will be [***]

6.          [***]

As the last step of the [***]a [***]for each of the [***]and [***]will be [***]using [***]and [***]

The [***]of this [***]based on such
information, will be agreed upon by the [***]

A [***]for [***]and [***]

 Appendix 3-2
 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
  

Appendix
4

Manufacturing Documentation

	
  #

  	
   

  	
   

  	
   

  	
  Document

  Description

  	
   

  	
  [***]

  	
   

  	
  Details

  
	
  1

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]will be [***]at
  the [***]by ImmunoGen[***]will be [***]to [***]for [***]A [***]will be [***]to
  ImmunoGen for [***]which [***]shall not be [***]or [***]to [***]at [***]of the [***]will be [***]to
  ImmunoGen[***]  [***]which [***]in a [***]or a [***]to the [***]of the [***]shall
  be made to [***]and [***]and [***]by [***]as
  appropriate with [***]of the [***]being provided to ImmunoGen. Such [***]shall be deemed the [***]for [***]of [***]of the [***]  [***]from [***]which [***]in a [***]or a [***]to the
  [***]of the [***]will be reviewed and approved by
  ImmunoGen [***]the [***]used for the [***]

  
	
  2

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]are reviewed at ImmunoGen’s discretion based upon [***][***]provided to ImmunoGen by [***]can be [***]to [***]in [***].

  
	
  3

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]of [***]will be
  provided to ImmunoGen [***]and [***]at [***]

  
	
  4

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  A [***]will be prepared by [***]to [***]the [***]and [***]for all the [***]in [***]A [***]the [***]and [***]with
  ImmunoGen[***]The [***]will be completed [***]of [***]of [***]for the [***]in the [***]

  
	
  5

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]will provide [***]for
  [***]and [***]to ImmunoGen for [***]and
  [***]For [***]and [***]upon
  such [***]these will be considered
  [***]for [***]of the [***]The [***]the [***]and [***]will
  also [***]for [***].

  
	
  6

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  A [***]will be provided to ImmunoGen [***][***]for each [***]or [***]The [***]and a [***]will be [***]with the [***]of
  the [***]for the [***]and the [***]will be provided with the [***]

  
	
  7

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  A [***]will be provided to ImmunoGen [***]for each [***]and [***]of the [***]for the [***]and the [***]will
  be provided [***]

  
	
  8

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]will be [***]as [***]to a [***]of the [***]will
  [***]of such events from [***]within [***]of [***]  [***]to [***]in the [***]will
  be [***]on the [***]to [***]will also be annotated[***]These
  [***]will be [***]into [***]as [***]see [***]

  
	
  9

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]will provide copies of the [***]for [***]to ImmunoGen
  for review and [***]to [***]

  
	
  10

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]will [***]of the
  [***]to ImmunoGen upon [***]of the [***]

  
	
  11

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]will provide [***]of
  the [***]for [***]and [***]for [***]

  
	
  12

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]will
  provide [***]for [***]and [***]

  

 

 Appendix 4-1
 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
 

Exhibit A

[***]

 Portions of this Exhibit were omitted, as indicated by [***], and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.EXHIBIT
10.2

BRIGGS &
STRATTON CORPORATION AND SUBSIDIARIES

2007 Annual Report
on Form 10-K

AMENDED AND RESTATED
ECONOMIC VALUE ADDED

INCENTIVE COMPENSATION
PLAN

As Amended and Restated

Effective 7-2-07

BRIGGS
& STRATTON CORPORATION

ECONOMIC VALUE ADDED

INCENTIVE
COMPENSATION PLAN

As adopted by the
Compensation Committee on April 20, 2004 and amended on August 9, 2005 and on
August 7, 2007

 2

BRIGGS & STRATTON
CORPORATION

ECONOMIC VALUE
ADDED INCENTIVE COMPENSATION PLAN

I.                 Plan
Objectives

A.           To promote the
maximization of shareholder value over the long term by providing incentive
compensation to key employees of Briggs & Stratton Corporation (the
“Company”) in a form which is designed to financially reward participants for
an increase in the value of the Company to its shareholders.

B.             To provide
competitive levels of compensation to enable the Company to attract and retain
employees who are able to exert a significant impact on the value of the
Company to its shareholders.

C.             To encourage teamwork
and cooperation in the achievement of Company goals.

D.            To recognize
differences in the performance of individual participants.

II.             Plan Administration

The Compensation Committee of the Board of Directors
(the “Committee”) shall be responsible for the design, administration, and
interpretation of the Plan.

III.         Definitions

A.           “Accrued Bonus”
means the bonus, which may be negative or positive, which is calculated in the
manner set forth in Section V.A.

B.             “Actual EVA”
means the EVA as calculated for the relevant Plan Year.

C.             “Base Salary”
means the amount of a Participant’s base compensation earned during the Plan
Year without adjustment for bonuses, salary deferrals, value of benefits,
imputed income, special payments, amounts contributed to a savings plan or
similar items.

D.            “Capital” means
the Company’s weighted average monthly operating capital for the Plan Year,
calculated as follows:

	
  

  	
   

  	
  Current Assets

  
	
  -

  	
   

  	
  Non-operating Investments

  
	
  +

  	
   

  	
  Bad Debt Reserve

  
	
  +

  	
   

  	
  LIFO Reserve

  
	
  -

  	
   

  	
  Deferred Tax
  Liabilities or Assets

  Classified as Current Assets

  
	
  -

  	
   

  	
  Current Noninterest-Bearing Liabilities

  
	
  +

  	
   

  	
  Warranty Reserve

  
	
  +

  	
   

  	
  Environmental Reserve

  
	
  +

  	
   

  	
  Property, Plant, Equipment, Net

  
	
  -

  	
   

  	
  Construction in Progress

  
	
  +

  	
   

  	
  Other Assets (not including prepaid Pension Costs)

  
	
  (+/-)

  	
   

  	
  Unusual Capital Items

  

 

E.              “Capital Charge”
means the deemed opportunity cost of employing Capital in the Company’s
businesses, determined as follows:

Capital
Charge = Capital X Cost of Capital

 1
 

F.              Cost of Capital”
means the weighted average of the cost of equity and the after tax cost of debt
for the relevant Plan Year on a market value basis.  The Cost of Capital will be determined (to
the nearest tenth of a percent) by the Committee prior to each Plan Year,
consistent with the following methodology:

a)              Cost of Equity =
Risk Free Rate + (Business Risk Index X Average Equity Risk Premium)

b)             Debt Cost of Capital
= Debt Yield X (1 - Tax Rate)

c)              The weighted average
of the Cost of Equity and the Debt Cost of Capital is determined by reference
to the actual debt-to-capital ratio

where the Risk Free Rate is the average daily closing
yield rate on 10 year U.S. Treasury Bonds for the month of March immediately
preceding the relevant Plan Year, the Business Risk Index is determined by
using an average  of the Beta available in
the four (4) most recent Value Line reports on the Company.  The Average Equity Risk Premium is 6%, the
Debt Yield is the weighted average yield of all borrowing included in the
Company’s permanent capital, and the tax rate is the combination of the
relevant federal and state income tax rates.

G.             “Designated Key
Contributor” means those Participants named by the Chief Executive Officer
as a Designated Key Contributor under the Plan.

H.            “Divisional EVA
Performance Factor” means an Individual Performance Factor calculated in
the same manner as the Company Performance Factor as set forth in Section VI.A.,
except that EVA, Actual EVA, Target EVA, EVA Leverage Factor, NOPAT, Capital,
Capital Charge and other relevant terms shall be defined by reference to the
particular operating division, service division or sales group, not by
reference to the entire Company.

I.                 “Economic
Value Added” or “EVA” means the NOPAT that remains after subtracting
capital Charge, expressed as follows:

NOPAT

Less:       Capital Charge

Equals:   EVA

EVA may be
positive or negative.

J.                “EVA Leverage
Factor” means the expected deviation in EVA from the average EVA, generally
reflected as a percentage of capital employed. 
For purposes of this Plan, the Company’s EVA Leverage Factor is
determined to be $27 million.

K.    “NOPAT”
means cash adjusted net operating profits after taxes for the Plan Year,
calculated as follows:

	
  

  	
   

  	
  Pretax Income

  
	
  +

  	
   

  	
  Interest Expense

  
	
  -

  	
   

  	
  Normal Pension Costs

  
	
  +/-

  	
   

  	
  Pension Income/Expense

  
	
  +/-

  	
   

  	
  Change in LIFO Reserve

  
	
  +/-

  	
   

  	
  Change in Bad Debt Reserve

  
	
  +/-

  	
   

  	
  Change in Post Retire Health Care Reserve

  
	
  +/-

  	
   

  	
  Change in Warranty Reserve

  
	
  +/-

  	
   

  	
  Other Income & Expense on Non-Operating
  Investments

  
	
  +/-

  	
   

  	
  Unusual Charges

  
	
  +/-

  	
   

  	
  Amortization of Unusual Income or Expense Items

  
	
  -

  	
   

  	
  Cash Taxes on the above (+/-changes in Deferred
  Taxes)

  

 

L.              “Plan Year”
means the one year period coincident with the Company’s fiscal year.

M.   “Senior Executives”
means those Participants designated as Senior Executives by the Committee with
respect to any Plan Year.

 2
 

N.      “Target EVA” means
the target level of EVA for the Plan Year, determined as follows:

	
  

  	
   

  	
  Prior Year

  	
   

  	
   

  	
   

  	
  Prior Year

  
	
  Target EVA =

  	
   

  	
  Target EVA

  	
   

  	
  +

  	
   

  	
  Actual EVA

  
	
   

  	
   

  	
  2

  

IV.         Eligibility

A.           Eligible Positions.  In general, all Company Officers, Division
General Managers, and members of the corporate operations group, and certain
direct reports of such individuals may be eligible for participation in the
Plan.  However, actual participation will
depend upon the contribution and impact each eligible employee may have on the
Company’s value to its shareholders, as determined by the Chief Executive
Officer of the Company, and approved by the Committee.

B.             Nomination and
Approval.  Each Plan Year, the Chief
Executive Officer of the Company will nominate eligible employees of the
Company and its subsidiaries and affiliates to participate in the Plan for the
next Plan Year.  The Committee will have
the final authority to select Plan participants (the “Participants”) among the
eligible employees nominated by the Chief Executive Officer of the Company.  Continued participation in the Plan is
contingent on approval of the Committee. 
Selection normally will take place, and will be communicated to each
Participant, prior to the beginning of the pertinent Plan Year.

V.             Individual
Participation Levels

A.           Calculation of
Accrued Bonus.  Each Participant’s
Accrued Bonus will be determined as a function of the Participant’s Base
Salary, the Participant’s Target Incentive Award (provided in paragraph V.B.,
below), Company Performance Factor (provided in Section VI.A.) and the
Individual Performance Factor (provided in Section VI.B.) for the Plan
Year.  Each Participant’s Accrued Bonus
will be calculated as follows:

	
  

  	
   

  	
   

  	
   

  	
  Target

  	
   

  	
  Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Target

  	
   

  	
  Individual

  
	
  30

  	
  %

  	
  Participant’s

  	
  x

  	
  Incentive

  	
  x

  	
  Performance

  	
  +

  	
  70%

  	
   

  	
  Participant’s

  	
  x

  	
  Incentive

  	
  x

  	
  Performance

  
	
   

  	
   

  	
  Base Salary

  	
   

  	
  Award

  	
   

  	
  Factor

  	
   

  	
   

  	
   

  	
  Base Salary

  	
   

  	
  Award

  	
   

  	
  Factor

  

 

In no case may the
Accrued Bonus exceed three times the Target Incentive Award or be less than
negative one times the Target Incentive Award.

B.             Target Incentive
Awards.  The Target Incentive Awards
will be determined according to the following schedule:

	
  Executive Position

  	
   

  	
  Target Incentive Award

  (% of Base Salary)

  	
   

  
	
  Chief Executive
  Officer

  	
   

  	
  100

  	
  %

  
	
  Chief Operating
  Officer

  	
   

  	
  80

  	
  %

  
	
  Executive Vice
  President & Senior Vice President

  	
   

  	
  60

  	
  %

  
	
  Other Elected
  Officers

  	
   

  	
  40

  	
  %

  
	
  Division General
  Manager

  	
   

  	
  40

  	
  %

  
	
  Designated Key
  Contributors

  	
   

  	
  25

  	
  %

  
	
  All Others

  	
   

  	
  20

  	
  %

  

 

VI.         Performance Factors

A.           Company Performance
Factor Calculation.  For any Plan
Year, the Company Performance Factor will be calculated as follows:

 3
 

Company
Performance Factor = 1.00  +  Actual EVA 
-  Target EVA

EVA Leverage Factor

B.             Individual
Performance Factor Calculation. 
Determination of the Individual Performance Factor will be the
responsibility of the individual to whom the participant reports.  This determination will be subject to
approval by the Committee and should be in conformance with the process set
forth below:

(1)          Quantifiable
Supporting Performance Factors.  The
Individual Performance Factor of the Accrued Bonus calculation will be based on
the accomplishment of individual, financial and/or other goals (“Supporting
Performance Factors”).  Whenever
possible, individual performance will be evaluated according to quantifiable
benchmarks of success.  These Supporting
Performance Factors will represent an achievement percentage continuum that
ranges from 50% to 150% of the individual target award opportunity, and will be
enumerated from .5 to 1.5 based on such continuum. Provided, however, that if
the Quantifiable Supporting Performance Factor is based on divisional EVA and
is calculated in the same manner as the Company Performance Factor as set forth
in Section VI.A. with respect to such division (such Supporting Performance
Factor referred to herein as a Divisional EVA Performance Factor), then the
Supporting Performance Factor may be unlimited, if so approved by the
Committee.  A Quantifiable Supporting
Performance Factor may also be unlimited if the Quantifiable Supporting
Performance Factor as approved by the Committee for such individual is the same
as the Company Performance Factor determined in accordance with Section VI.A.

(2)          Non-Quantifiable
Supporting Performance Factors.  When
performance cannot be measured according to a quantifiable monitoring system,
an assessment of the Participant’s overall performance may be made based on a
Non-Quantifiable Supporting Performance Factor (or Factors).  The person to whom the Participant reports
will evaluate the Participant’s performance, and this evaluation will determine
the Participant’s Supporting Performance Factor (or Factors) according to the
following schedule:

	
  Individual

  Performance Rating

  	
   

  	
  Supporting

  Performance Factor

  
	
   

  	
   

  
	
  Outstanding

  	
  1.3 - 1.5

  
	
  Excellent

  	
  1.1 - 1.3

  
	
  Good

  	
  .9 - 1.1

  
	
  Satisfactory

  	
  .5 - .9

  
	
  Unsatisfactory

  	
  0

  

 

(3)          Aggregate
Individual Performance Factor.  The
Individual Performance Factor to be used in the calculation of the Accrued Bonus
shall be equal to the average (or weighted average) of one or more Quantifiable
and/or Non-Quantifiable Supporting Performance Factors according to relative
importance, except that the Non-Quantifiable Supporting Performance Factor
shall account for no more than 15% of the Accrued Bonus.

VII.  Change in Status During the Plan Year

A.           New Hire, Transfer,
Promotion, Demotion

A newly hired employee or
an employee transferred, promoted, or demoted during the Plan Year to a
position qualifying for participation (or leaving the participating class) may
accrue (subject to discretion of the Committee) a pro rata Accrued Bonus based
on the percentage of the Plan Year (actual weeks/full year times a full year
award amount for that position) the employee is in each participating position.

B.             Discharge

An employee
discharged during the Plan Year shall not be eligible for an Accrued Bonus,
even though his or her service arrangement or contract extends past year-end,
unless the Committee determines that the conditions of the termination indicate
that a prorated Accrued Bonus is appropriate. 
The Committee shall have full and final authority in making such a
determination.

 4
 

C.             Resignation

An employee who
resigns during the Plan Year to accept employment elsewhere (including
self-employment) will not be eligible for an Accrued Bonus.

D.            Death, Disability,
Retirement

If a Participant’s
employment is terminated during a Plan Year by reason of death, disability, or
normal or early retirement under the Company’s retirement plan, a tentative
Accrued Bonus will be calculated as if the Participant had remained employed as
of the end of the Plan Year.  The final
Accrued Bonus will be calculated by multiplying the tentative Accrued Bonus by
a proration factor.  The proration factor
will be equal to the number of full weeks of employment during the Plan Year
divided by fifty-two.  For purposes of
this section, the date a participant is deemed to be terminated pursuant to
disability shall be the date the employee begins receiving a monthly Long Term
Disability Benefit under the Company’s Group Insurance Plan.

Each employee may
name any beneficiary or beneficiaries (who may be named contingently or
successively) to whom any benefit under this Plan is to be paid in case of the
employee’s death.

Each such
designation shall revoke all prior designations by the employee, shall be in
the form prescribed by the Committee, and shall be effective only when filed by
the employee in writing with the Committee during his or her lifetime.

In the absence of
any such designation, benefits remaining unpaid at the employee’s death shall
be paid to the employee’s estate.

E.              Leave of Absence

An employee whose status
as an active employee is changed during a Plan Year as a result of a leave of
absence may, at the discretion of the Committee, be eligible for a pro rata
Accrued Bonus determined in the same way as in paragraph D. of this Section.

VIII.                         Bonus
Paid and Bonus Bank

All or a portion of the
Accrued Bonus will be either paid to the Participant or credited to or charged
against the Bonus Bank as provided in this Article.

A.           Participants Who Are
Not Senior Executives.  All positive
Accrued Bonuses of Participants who are not Senior Executives for the Plan Year
shall be paid in cash, less amounts required by law to be withheld for income
and employment tax purposes, on or before the end of the second month following
the end of the Plan Year in which the Accrued Bonus was earned.  Participants who are not Senior Executives
shall not be charged or otherwise assessed for negative Accrued Bonuses nor
shall such Participants have any portion of their Accrued Bonuses banked.

B.             Participants Who
Are Senior Executives.  The Total
Bonus Payout to Participants who are Senior Executives for the Plan Year shall
be as follows:

	
  

  	
   

  	
  Accrued Bonus

  
	
  Less:

  	
   

  	
  Extraordinary Bonus Accrual

  
	
  Plus:

  	
   

  	
  Bank Payout

  
	
  Equals:

  	
   

  	
  Total Bonus Payout

  

 

The Total Bonus
Payout for each Plan Year, less amounts required by law to be withheld for
income tax and employment tax purposes, shall be paid on or before the end of
the second month following the end of the Plan Year in which it was earned.

 5
 

C.             Establishment of a
Bonus Bank.  To encourage a long term
commitment to the enhancement of shareholder value by Senior Executives,
“Extraordinary Bonus Accruals” shall be credited to an “at risk” deferred
account (“Bonus Bank”) for each such Participant, and all negative Accrued
Bonuses shall be charged against the Bonus Bank, as determined in accordance with
the following:

1.               “Bonus Bank”
means, with respect to each Senior Executive, a bookkeeping record of an
account to which Extraordinary Bonus Accruals are credited, and negative
Accrued Bonuses debited as the case may be, for each Plan Year, and from which
bonus payments to such Senior Executive are debited.

2.               “Bank Balance”
means, with respect to each Senior Executive, a bookkeeping record of the net
balance of the amounts credited to and debited against such Senior Executive’s
Bonus Bank.  The Bank Balance shall
initially be equal to zero.

3.               “Extraordinary
Bonus Accrual” shall mean the amount of the Accrued Bonus for any year that
exceeds the Senior Executive’s Target Incentive Award.

4.               Annual
Allocation.  Each Senior Executive’s
Extraordinary Bonus Accrual or negative Accrued Bonus is credited or debited to
the Bonus Bank maintained for that Senior Executive or paid to the executive in
accordance with the following rules: (a) if the Bank Balance is zero or
positive when the Extraordinary Bonus Accrual or negative Accrued Bonus is
calculated, 100% of any Extraordinary Bonus Accrual or negative Accrual Bonus
shall be credited or debited to the Bank Balance, (b) if the Bank Balance has a
deficit that is 50% or less of the Extraordinary Bonus Accrual when the accrual
is calculated, the deficit shall be eliminated and the Bank Balance shall be
credited with the amount by which the Extraordinary Bonus Accrual exceeds the
deficit, and (c) if the Bank Balance has a deficit that is more than 50% of the
Extraordinary Bonus Accrual when the accrual is calculated, 50% of the
Extraordinary Bonus Accrual shall be applied to reduce the deficit and 50%
shall be paid directly to the Senior Executive. 
Such Annual Allocation will occur as soon as possible after the conclusion
of each Plan Year.  Although a Bonus Bank
may as a result of negative Accrual Bonuses have a deficit, the deficit may
never exceed one times a Senior Executive’s Target Incentive Award for the most
recently completed Plan Year, and no Senior Executive shall be required, at any
time, to reimburse his/her Bonus Bank for such deficit other than by crediting
an Extraordinary Bonus Accrual to a deficit balance.

5.               “Available
Balance” means that the Bank Balance at the point in time immediately after
the Annual Allocation has been made.

6.               “Payout
Percentage” means the percentage of the Available Balance that may be paid
out in cash to the Participant.  The
Payout Percentage will equal 33%.

7.               “Bank Payout”
means the amount of the Available Balance that may be paid out in cash to the
Senior Executive for each Plan Year.  The
Bank Payout is calculated as follows:

Bank Payout   =  Available Balance  X 
Payout Percentage

The Bank Payout is
subtracted from the Bank Balance.

8.               Treatment of
Available Balance Upon Termination

a)              Resignation or
Termination With Cause.  Senior
Executives leaving voluntarily to accept employment elsewhere (including
self-employment) or who are terminated with cause will forfeit their Available
Balance.

b)             Retirement, Death,
Disability or Termination Without Cause. 
In the event of a Senior Executive’s normal or early retirement under
the Company’s retirement plan, death, disability, or termination without cause,
the Available Balance, less amounts required by law to be withheld for income
tax and employment tax purposes, shall be paid to the Senior Executive on or
before the end of the second month following the end of the Plan Year in which
the termination for one of such events occurred.

 6
 

c)              For
purposes of this Plan “cause” shall mean:

(i)             any act or acts of
the Participant constituting a felony under the laws of the United States, any
state thereof or any foreign jurisdiction;

(ii)          any material breach by
the Participant of any employment agreement with the Company or the policies of
the Company or the willful and persistent (after written notice to the
Participant) failure or refusal of the Participant to comply with any lawful
directives of the Board;

(iii)       a course of conduct
amounting to gross neglect, willful misconduct or dishonesty; or

(iv)      any misappropriation of
material property of the Company by the Participant or any misappropriation of
a corporate or business opportunity of the Company by the Participant.

IX.        Administrative
Provisions

A.           Amendments.  The Board of Directors of the Company shall
have the right to modify or amend this Plan from time to time, or suspend it or
terminate it entirely; provided that no such modification, amendment,
suspension, or termination may, without the consent of any affected
participants (or beneficiaries of such participants in the event of death),
reduce the rights of any such participants (or beneficiaries, as applicable) to
a payment or distribution already earned under Plan terms in effect prior to
such change.

B.             Interpretation of
Plan.  Any decision of the Committee
with respect to any issues concerning individual selected for awards, the
amount, terms, form and time of payment of awards, and interpretation of any
Plan guideline, definition, or requirement shall be final and binding.

C.             Effect of Award on
Other Employee Benefits.  By
acceptance of a bonus award, each recipient agrees that such award is special
additional compensation and that it will not affect any employee benefit, e.g.,
life insurance, etc., in which the recipient participates, except as provided
in paragraph D. below.

D.            Retirement Programs.  Awards made under this Plan shall be included
in the employee’s compensation for purposes of the Company Retirement Plans and
Savings Plan.

E.              Right to
Continued Employment; Additional Awards. 
The receipt of a bonus award shall not give the recipient any right to
continued employment, and the right and power to dismiss any employee is
specifically reserved to the Company.  In
addition, the receipt of a bonus award with respect to any Plan Year shall not
entitle the recipient to an award with respect to any subsequent Plan Year.

F.              Adjustments to
Performance Goals.  When a
performance goal is based on Economic Value Added or other quantifiable
financial or accounting measure, it may be necessary to exclude significant
nonbudgeted or noncontrollable capital investments or gains or losses from
actual financial results in order to properly measure performance.  The Committee will decide those items that
shall be considered in adjusting actual results.  For example, some types of items that may be
considered for exclusion are:

(1)          Any gains or losses
which will be treated as extraordinary in the Company’s financial statements.

(2)          Profits or losses of any
entities acquired by the Company during the Plan Year, assuming they were not
included in the budget and/or the goal.

(3)          Material gains or losses
not in the budget and/or the goal which are of a nonrecurring nature and are
not considered to be in the ordinary course of business.  Some of these would be as follows:

(a)          Gains or losses from the
sale or disposal of real estate or property.

(b)         Gains resulting from
insurance recoveries when such gains relate to claims filed in prior years.

 7
 

(c)          Losses resulting from
natural catastrophes, when the cause of the catastrophe is beyond the control
of the Company and did not result from any failure or negligence on the
Company’s part.

(4)   Capital incurred for a major
acquisition for a reasonable period following such acquisition.

G.             Vesting.  All amounts due but unpaid to any Participant
under this plan shall vest, subject to the terms of this EVA Plan, upon actual
termination of employment of the Participant.

X.            Miscellaneous

A.           Indemnification.  Each person who is or who shall have been a
member of the Committee or of the Board, or who is or shall have been an
employee of the Company, shall not be liable for, and shall be indemnified and
held harmless by the Company from any loss, cost, liability, or expense that
may be imposed upon or reasonably incurred by him or her in connection with any
claim, action, suit, or proceeding to which he or she may be a party by reason
of any action taken or failure to act under this Plan.  The foregoing right of indemnification shall
not be exclusive of any other rights of indemnification to which such persons
may be entitled under the Company’s Articles of Incorporation or Bylaws, as a
matter of law, or otherwise, or any power that the Company may have to
indemnify them or hold them harmless.

B.             Expenses of the
Plan.  The expenses of administering
this Plan shall be borne by the Company.

C.             Withholding Taxes.  The Company shall have the right to deduct
from all payments under this Plan any Federal or state taxes required by law to
be withheld with respect to such payments.

D.            Governing Law.  This Plan shall be construed in accordance
with and governed by the laws of the State of Wisconsin.

 8

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