Document:

EX10.1 9.30.14

Exhibit 10.1
Settlement Agreement and General Release

|This Settlement Agreement and General Release (the “Agreement”) is made by and between Bradford Crutchfield (“Executive”) and Bio-Rad Laboratories, Inc., on behalf of itself and its subsidiaries and affiliates (together, the “Company”), effective as of the eighth day following Executive’s signature of this Agreement without revocation (the “Effective Date”) with reference to the following facts:

A.    Executive was President, Life Science Group and Executive Vice President-Bio-Rad through August 25, 2014   (the “Separation Date”).

B.    Executive and the Company want to end their relationship amicably and also to establish the obligations of the parties including all amounts due and owing to Executive through the Separation Date.

NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, the parties agree as follows:

1.Payments.  

(a)Wages Through Separation Date.  Executive acknowledges receipt of amounts equal to all wages, including accrued, unused vacation or paid time off, owed to him through the Separation Date.  Executive further acknowledges that no additional compensation or payment is due and owing to Executive following the Separation Date, except as set forth herein. 
(b)Cash Severance.  Without admission of any liability, fact or claim, the Company hereby agrees, subject to the timely execution of this Agreement without revocation within twenty-one (21) days following the Separation Date, and Executive’s performance of his continuing obligations pursuant to this Agreement, the Bio-Rad Employment Agreement executed as of May 20, 1985, and any other material agreement between Executive and the Company, to provide Executive severance pay in the aggregate amount of $626,625.00 (the “Severance Payment”).  All Severance Pay shall be paid in a lump sum in accordance with the Company’s normal payroll practices, and shall be reduced by the amount of all applicable payroll taxes.  
(c)COBRA.  The Company shall pay the employee contribution for medical, dental, and vision coverage for the Executive and his covered dependents (if COBRA coverage is elected)  through (i) August 31, 2015,  (ii) until Executive accepts employment with an employer that offers alternative health coverage, or (iii) until Executive is otherwise no longer eligible for COBRA, whichever occurs first.
(d)Options.  On the Separation Date, Executive’s outstanding equity grants will be cancelled and forfeited, to the extent not vested.  Except as expressly provided herein, Executive’s rights under all equity awards shall be governed by the applicable equity plan, notice of grant and award agreement.
(e)Taxes.  Executive understands and agrees that all payments under this Agreement will be subject to appropriate tax withholding and other deductions.  To the extent any taxes may be payable by Executive for the benefits provided to him by this Agreement beyond those withheld by the Company, Executive agrees to pay them himself and to indemnify and hold the Company and the other entities released herein harmless for any tax claims or penalties, and associated attorneys’ fees and costs, resulting from any failure by him to make required payments. To the extent that any reimbursements payable pursuant to this Agreement are subject to the provisions of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), such reimbursements shall be paid to Executive no later than December 31 of the year following the year in which the expense was incurred, the amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent year, and Executive’s right to reimbursement under this Agreement will not be subject to liquidation or exchange for another benefit.

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(f)Sole Separation Benefit.  Executive acknowledges and agrees that the payments referenced in this Section 1 are not required, whether by agreement or otherwise, and constitute adequate and valuable consideration, in and of themselves, for the promises contained in this Agreement.

2.Full Payment.  Executive acknowledges that the payments and arrangements herein shall constitute full and complete satisfaction of any and all amounts properly due and owing to Executive as a result of his employment with the Company and the separation thereof, other than reimbursement of expenses incurred prior to the date hereof in the ordinary course of business in accordance with the Company’s expense reimbursement policies.  

3.Executive’s Release of the Company.  Executive understands that by agreeing to the release provided by this Section 3, Executive is agreeing not to sue, or otherwise file any claim against, the Company or any of its employees or other agents for any reason whatsoever based on anything that has occurred as of the date Executive signs this Agreement.

(a)On behalf of Executive and Executive’s heirs and assigns, Executive hereby releases and forever discharges the “Company Releasees” hereunder, consisting of the Company, and each of its owners, affiliates, divisions, predecessors, successors, assigns, agents, directors, officers, partners, employees, and insurers, and all persons acting by, through, under or in concert with them, or any of them, of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, loss, cost or expense, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called “Claims”), which Executive now has or may hereafter have against the Company Releasees, or any of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the date hereof, including, without limiting the generality of the foregoing, any Claims arising out of, based upon, or relating in any manner to Executive’s Employment Agreement, hire, employment, remuneration, equity grants, failure to grant to Executive equity to which he claims he was entitled, or separation of the Executive’s employment by the Company Releasees, or any of them, Claims arising under federal, state, or local laws relating to employment, Claims of any kind that may be brought in any court or administrative agency, including any Claims arising under the Age Discrimination in Employment Act ("ADEA"), as amended, 29 U.S.C. § 621, et seq.; Title VII of the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991, 42 U.S.C. § 2000 et seq.; the Equal Pay Act, 29 U.S.C. § 206(d); the Civil Rights Act of 1866, 42 U.S.C. § 1981; the Family and Medical Leave Act of 1993, 29 U.S.C. § 2601 et seq.; the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 et seq.; the False Claims Act , 31 U.S.C. § 3729 et seq.; the Employee Retirement Income Security Act, 29 U.S.C. § 1001 et seq.; the Worker Adjustment and Retraining Notification Act, 29 U.S.C.  § 2101 et seq. the Fair Labor Standards Act, 29 U.S.C. § 215 et seq., the Sarbanes-Oxley Act of 2002; the California Labor Code; the employment and civil rights laws of California; Claims for breach of contract; Claims arising in tort, including, without limitation, Claims of wrongful dismissal or discharge, discrimination, harassment, retaliation, fraud, misrepresentation, defamation, libel, infliction of emotional distress, violation of public policy, and/or breach of the implied covenant of good faith and fair dealing; and Claims for damages or other remedies of any sort, including, without limitation, compensatory damages, punitive damages, injunctive relief and attorney’s fees.

(b)Notwithstanding the generality of the foregoing, Executive does not release Claims for indemnification under the Company’s Bylaws, California Labor Code Section 2802 or any other applicable law, any director and officer policies of insurance in effect as of the Separation Date; Executive’s right to bring to the attention of the Equal Employment Opportunity Commission or the California Department of Fair Employment and Housing claims of discrimination, harassment or retaliation; provided, however, that Executive does release Executive’s right to secure any damages for alleged discriminatory treatment; and any other Claims that cannot be released as a matter of law.

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(c)In accordance with the Older Workers Benefit Protection Act of 1990, Executive has been advised of the following:

(i)Executive has the right to consult with an attorney before signing this Agreement;

(ii)Executive has been given at least twenty-one (21) days to consider this Agreement;

(iii)Executive has seven (7) days after signing this Agreement to revoke it, and Executive will not receive the severance benefits provided by Section 1 of this Agreement unless and until such seven (7) day period has expired.  If Executive wishes to revoke this Agreement, Executive must deliver notice of Executive’s revocation in writing, by email, no later than 5:00 p.m. on the 7th day following Executive’s execution of this Agreement to Colleen Corey at colleen_corey@bio-rad.com.

(d)EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE HAS BEEN ADVISED OF AND IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH, IF KNOWN BY HIM OR HER, MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”
BEING AWARE OF SAID CODE SECTION, EXECUTIVE HEREBY EXPRESSLY WAIVES ANY RIGHTS EXECUTIVE MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

4.Additional Covenants.  Executive and the Company further agree as follows:

(a)Non-Disparagement.  Executive agrees that he shall not disparage, criticize or defame the Company, its affiliates and their respective affiliates, directors, officers, agents, partners, stockholders or employees, whether verbally or by non-verbal gesture or communication, either publicly or privately.  The Company agrees that the Company’s Board of Directors (“Board”) and its Chief Executive Officer shall not disparage, criticize or defame Executive, either publicly or privately.  If required, the Company will issue a press release in the form exchanged concurrently herewith with respect to Executive’s separation and additional public disclosure shall be consistent with such press release or as otherwise required by applicable securities laws. Nothing in this Section 4(a) shall have application to any communication with any government agency or any evidence or testimony required by any court, arbitrator or government agency.  

(b)Non-Solicitation and Non-Interference with Vendors and Customers.  Executive agrees that, during the Term of the Settlement Agreement, he shall not (without the prior written consent of the Company) (i) solicit, directly or indirectly, personally or through others, encourage, induce, attempt to induce, solicit or attempt to solicit (whether on Executive’s own behalf or on behalf of any other person or entity) any vendor or customer of the Company to adversely alter its business arrangements with the Company, and/or (ii) interfere or in any way seek to negatively influence, directly or indirectly, personally or through others, the Company’s relationship or business with any vendor or customer of the Company. 

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(c)  Non-Solicitation and Non-Interference with Employees, Consultants and Independent Contractors.  Executive agrees that, during the Term of the Settlement Agreement and for a period of 12 (twelve) months thereafter, he shall not (without the prior written consent of the Company) (i) solicit, directly or indirectly, personally or through others, encourage, induce, attempt to induce, solicit or attempt to solicit (whether on Executive’s own behalf or on behalf of any other person or entity) any employee, consultant or independent contractor of the Company to leave his, her or its employment, consulting or independent contractor relationship with the Company, and/or (ii) interfere or in any way seek to negatively influence, directly or indirectly, personally or through others, the Company’s relationship or business with any employee, consultant or independent contractor of the Company.  The foregoing will not prohibit solicitation of employment where Executive can demonstrate by written records that the employee, consultant or independent contractor first initiated contact with Executive.

(d)Transfer of Company Property.  Executive represents and warrants that, on or before the Separation Date, he left within his files and laptop turned over to the Company all electronic or physical files, memoranda, records, and other documents, and any other electronic, physical or personal property of the Company which Executive had in his possession, custody or control.  

(e)Executive’s Cooperation.  After the Separation Date, Executive shall cooperate with the Company and its affiliates, upon the Company’s reasonable request (other than with respect to clause (iv) below, which Executive hereby agrees to comply with beginning as of the Separation Date without any further request by the Company), with respect to any  (i) the pending U.S. government Foreign Corrupt Practices Act investigation, or any other pending, contemplated or future internal or governmental investigation or criminal, administrative, regulatory, arbitral, or judicial proceeding in any jurisdiction involving matters within the scope of Executive’s duties and responsibilities to the Company during his employment with the Company, including, without limitation, Executive being available to the Company upon reasonable notice and at reasonable times and places for interviews, depositions, testimony and factual investigations, appearing at the Company’s reasonable request to give testimony or interviews without requiring service of a subpoena or other legal process, turning over to the Company all relevant Company documents which are or may have come into Executive’s possession during his employment, and providing declarations as requested.  Such cooperation shall be provided without additional charge during the period that Executive is receiving Severance Pay, and at a mutually agreeable rate after such time.

(f)Board and Office Resignation.  Contemporaneously with the execution of this Agreement, Executive has executed and delivered to the Company a resignation, in the form of Exhibit 4(f) hereto, from all board and officer positions he holds in the Company and its subsidiaries.

(g)Review of Press Release.  The Company will afford Executive the right to review and reasonably approve its press release announcing its chief executive transition insofar as such press release refers to Executive (but Executive shall not have any approval right with respect to any language in such press release that does not specifically refer to Executive).  

5.Representations.  Executive warrants and represents that (a) he has not filed or authorized the filing of any complaints, charges or lawsuits against the Company or any released party with any governmental agency or court, and that if, unbeknownst to Executive, such a complaint, charge or lawsuit has been filed on his behalf, he or it will immediately cause it to be withdrawn and dismissed, (b) the execution, delivery and performance of this Agreement by Executive does not and will not conflict with, breach, violate or cause a default under any agreement, contract or instrument to which Executive is a party or any judgment, order or decree to which Executive is subject, and (c) upon the execution and delivery of this Agreement by  Executive, this Agreement will be a valid and binding obligation of Executive, enforceable in accordance with its terms (subject to the uncertainties of California law, the enforceability exceptions and the discretion of a court or arbitrator in granting equitable or legal relief).  Executive further represents that (i) he has reported all hours worked as of the date of this Agreement and has been paid all compensation, wages, bonuses, commissions, and/or benefits to which he may be entitled and no other compensation, wages, bonuses, commissions and/or benefits 

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are due to him, except as provided in this Agreement, and (ii) he has no known workplace injuries or occupational diseases and has been provided and/or has not been denied any leave requested under the Family and Medical Leave Act or any similar state law.

6.No Assignment.  Executive warrants and represents that no portion of any of the matters released herein, and no portion of any recovery or settlement to which Executive might be entitled, has been assigned or transferred to any other person, firm or corporation not a party to this Agreement, in any manner, including by way of subrogation or operation of law or otherwise, other than in connection with Executive’s death.  If any claim, action, demand or suit should be made or instituted against the Company or any other released party because of any unpermitted assignment, subrogation or transfer by Executive, Executive agrees to indemnify and hold harmless the aggrieved party against such claim, action, suit or demand, including necessary expenses of investigation, attorneys’ fees and costs.

7.Governing Law.  This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the laws of the State of California or, where applicable, United States federal law, in each case, without regard to any conflicts of laws provisions or those of any state other than California. 

8.Agreement to Arbitrate.  Any dispute, claim or controversy based on, arising out of or relating to Executive’s employment or this Agreement shall be settled by final and binding arbitration in San Jose, California, before a single neutral arbitrator in accordance with the National Rules for the Resolution of Employment Disputes (the “Rules”) of the American Arbitration Association (“AAA”), and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction.  Arbitration may be compelled pursuant to the California Arbitration Act (Code of Civil Procedure §§ 1280 et seq.).  If the parties are unable to agree upon an arbitrator, one shall be appointed by the AAA in accordance with its Rules.  Each party shall pay the fees of its own attorneys, the expenses of its witnesses and all other expenses connected with presenting its case; provided, however, Executive and the Company agree that, to the extent permitted by law, the arbitrator may, in his or her discretion, award reasonable attorneys’ fees to the prevailing party; provided, further, that the prevailing party shall be reimbursed for such fees, costs and expenses within forty-five (45) days following any such award, but in no event later than the last day of the Executive’s taxable year following the taxable year in which the fees, costs and expenses were incurred; provided, further, that the parties’ obligations pursuant to this sentence shall terminate on the tenth (10th) anniversary of the Separation Date .  Other costs of the arbitration, including the cost of any record or transcripts of the arbitration, AAA’s administrative fees, the fee of the arbitrator, and all other fees and costs, shall be borne by the Company.  This Section 10 is intended to be the exclusive method for resolving any and all claims by the parties against each other for payment of damages under this Agreement or relating to Executive’s employment; provided, however, that neither this Agreement nor the submission to arbitration shall limit the parties’ right to seek provisional relief, including without limitation injunctive relief, in any court of competent jurisdiction pursuant to California Code of Civil Procedure § 1281.8 or any similar statute of an applicable jurisdiction.  Seeking any such relief shall not be deemed to be a waiver of such party’s right to compel arbitration.  Both Executive and the Company expressly waive their right to a jury trial.

9.Entire Agreement.  This Agreement and the Confidentiality Agreement constitute the entire agreement between the parties with regard to the subject matter hereof and the Confidentiality Agreement shall continue pursuant to its terms and conditions.  The Company and Executive acknowledge that the termination of Executive’s employment with the Company was an involuntary separation from service for the purposes of Section 409A of the Code, and the related Department of Treasury regulations.  Executive acknowledges that there are no other agreements, written, oral or implied, and that he may not rely on any prior negotiations, discussions, representations or agreements.  This Agreement may be modified only in writing, and such writing must be signed by Executive and the Chief Executive Officer of the Company and recite that it is intended to modify this Agreement.  This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same agreement.  
 (Signature page(s) follow)

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IN WITNESS WHEREOF, the undersigned have caused this Settlement Agreement and General Release to be duly executed and delivered as of the date indicated next to their respective signatures below.

DATED: September 14, 2014
/s/ Bradford Crutchfield        
Bradford Crutchfield

 BIO-RAD LABORATORIES, INC.

DATED: September 15, 2014

By: /s/ Norman Schwartz    
Name:  Norman Schwartz
Title: Chief Executive Officer

S-1

|EXHIBIT 4(f)

August 25, 2014

Bio-Rad Laboratories, Inc.
1000 Alfred Nobel Drive
Hercules, CA 94547

Ladies and Gentlemen:

I hereby resign, effective immediately, from all positions I hold as a member of the board of directors, or as an officer or employee, of Bio-Rad Laboratories, Inc. (the “Company”) and its subsidiaries.  Please be advised that my resignation from these positions is not because of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.

/s/ Bradford Crutchfield    
Bradford Crutchfield

S-2CBST-EX10.1_2014.9.30

Exhibit 10.1

CONFIDENTIAL TREATMENT 

AMENDMENT NO. 7
to the 
MANUFACTURING AND SUPPLY AGREEMENT
entered into as of September 30, 2001
by and between
ACS Dobfar, SpA and Cubist Pharmaceuticals, Inc.

This AMENDMENT NO. 7 (“Amendment No. 7”), to that certain Manufacturing and Supply Agreement (the “Agreement”) entered into as of September 30, 2001, is made effective this 1st day of July, 2014 (“Amendment No. 7 Effective Date”), by and between ACS Dobfar, SpA, an Italian corporation (“ACSD”) and Cubist Pharmaceuticals, Inc., a Delaware corporation (“Cubist”).  Unless otherwise defined herein, capitalized terms used but not defined herein shall have the meaning set forth in the Agreement, and the Agreement shall be amended to incorporate any additional definitions provided for in this Amendment No. 7, including definitions in the preamble and recitals hereto.

WHEREAS, Cubist and ACSD desire to amend the Agreement as set forth in this Amendment No. 7; 

NOW, THEREFORE, in consideration of the foregoing and the mutual promises made herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree to amend the Agreement as follows:

1.Amendment of Section 5.1.  The Agreement is hereby amended by adding the following sentence after the last sentence of Section 5.1:

“Notwithstanding the foregoing, if []* from and after []* or the parties mutually agree to []*, then Cubist’s volume purchase requirements set forth in this Agreement shall be deleted, waived and no longer be of any effect.”

2.Amendment of Section 5.2.  The Agreement is hereby amended by deleting Section 5.2 in its entirety and replacing it with “[Reserved].”

3.Amendment of Section 5.3.  The Agreement is hereby amended by adding the following as a new sentence to fall between the current first sentence and the current second sentence of Section 5.3:

“Each such Purchase Forecast shall specify the quantity of Product forecasted that is intended for worldwide distribution, and as such shall be manufactured in the []* []* and with use of the []* equipment installed in []* (“Worldwide Product”), and the 

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

quantity of Product that is intended for distribution in those countries where the use of such specific equipment is not required (“Non-Specific Product”).”

4.Amendment of Section 5.6.  The Agreement is hereby amended by deleting subsection (a) of Section 5.6 in its entirety and replacing it with the following subsection (a):

“(a)  ACSD shall be obligated to accept each Cubist Purchase Forecast and each purchase order (including purchase orders that exceed the Purchase Forecast by any amount); provided that (i) such Purchase Forecasts and purchase orders do not require delivery of Product in any calendar year in excess of []* of Product, (ii) such Purchase Forecasts and purchase orders do not require delivery of Worldwide Product in any calendar quarter in excess of []*.  A failure of ACSD to accept a Cubist Purchase Forecast or purchase order that meets the requirements set forth above shall constitute a breach by ACSD of a material obligation under Section 12.2(a)(i) of the Agreement.  ACSD shall not be in breach of this Section 5.6(a) if ACSD’s failure to supply Product is due to a Force Majeure event.  Delivery dates will be set independently from Product release and invoice dates as described in Section 5.7.”

The Agreement is hereby further amended by adding the following subsection (e) at the end of Section 5.6.

“(e)  In the event that ACSD and/or Cubist commence efforts to increase the capacity of the Facility, ACSD and Cubist shall agree upon the increase to the capacity restrictions set forth in 5.6(a) (i) and (ii) above, such that the capacity restrictions shall be at least []* of the new theoretical capacity of the Facility.”

5.    Amendment of Section 6.1.  The Agreement is hereby amended by deleting Section 6.1 thereof in its entirety and replacing it with the following Section 6.1:

“6.1    Product Price

(a)For all Product ordered by Cubist for delivery on or after []* through []*, Cubist shall pay for the Product in []* according to the Product Price Schedule attached hereto as Exhibit H (such Product Price Schedule, as updated from time to time in accordance with Sections 6.1(b) and (c) below, referred to herein as the “Product Price Schedule”).

(b)Prior to []* and each []* anniversary of such date thereafter, Cubist and ACSD shall update the Product Price Schedule appended to this Agreement as Exhibit H to reflect any change of more than []* to []* set forth in the schedule attached hereto as Exhibit H-1 (the “[]*”), excluding any change in the []* covered by the adjustments described in Section 6.1(c).  Any adjustments to the prices set forth on the Product Price Schedule shall be effective for all Product ordered by Cubist for delivery on or after []* of the immediately following calendar year (e.g., the prices 

*Confidential Treatment Requested.  Omitted portions filed with the Commission.    2

agreed to by []* will be effective on []*).  In order to verify any changes to the Product Price Schedule, ACSD shall permit Cubist to conduct a thorough review of []*, in substantially the same manner and to substantially the same degree as such review of []* was conducted by Cubist prior to the completion of Exhibit H.  Following the completion of Cubist’s review of all materials supporting such changes, ACSD and Cubist shall update the Product Price Schedule.  If ACSD and Cubist cannot agree upon any changes to the Product Price Schedule on or before, []* of the applicable calendar year, the Product prices set forth on Exhibit H shall remain in effect until the parties can agree on the new Product Price Schedule (which shall be effective as of []* of the applicable calendar year).  
(c)The Product prices set forth on the then-current Product Price Schedule may be adjusted on an []* basis, effective on each []*, beginning on []*, upon []* written notice from ACSD to Cubist []*, provided, however, that in no event shall such increase or decrease be more than []* per []*.
(d)The appropriate price from the Product Price Schedule shall be determined using the number of kgs of Product forecast by Cubist to be delivered during the relevant calendar year in accordance with Section 5.3.  At the end of each calendar year, if the actual number of kgs of Product ordered to be delivered during such calendar year would cause the price per kg according to the Product Price Schedule to be different than previously paid by Cubist, then, no later than March 31st of the following calendar year, Cubist shall pay to ACSD the additional amount if Cubist paid too little; or ACSD shall pay to Cubist the amount Cubist overpaid if Cubist paid too much.
(e)ACSD will work diligently and in good faith with Cubist to achieve all feasible cost savings with respect to the []*.

6.    Amendment of Section 6.5.  The Agreement is hereby amended by adding the following as a new second paragraph to subsection (a) of Section 6.5:  

“In addition to the Product requirements set forth above, and elsewhere in this Agreement, ACSD shall use good faith and diligent efforts to ensure that all Product delivered in any calendar quarter shall, together, have an average Product []* target of at least []*, but in no event shall such average Product []* be less than []* on a quarterly basis (the “Quarterly Average Product []*”).  In the event that ACSD delivers Product to Cubist that meets the Product Specifications, but nonetheless would cause ACSD to fail to meet the Quarterly Average Product []*, then (i) for the first occurrence of such failure, Cubist and ACSD shall meet to discuss the implementation of a plan to avoid such future failures, and (ii) for any subsequent failures, Cubist shall have the right to reject any batch(es) of Product that caused the failure of the Quarterly Average Product []*.  Notwithstanding the above, before Cubist rejects any Product for failure to meet the Quarterly Average Product []*, Cubist shall make a good faith determination that, despite the Product meeting the 

*Confidential Treatment Requested.  Omitted portions filed with the Commission.    3

Product Specifications, Cubist is unable to use the Product in its production due to the failure of the Quarterly Average Product []*. In the event any Product is rejected by Cubist in accordance with this paragraph, the provisions of Section 6.5 (b) shall apply to such Product and the provisions of Section 6.5(b) discussing the rejection and replacement of Product for the failure to meet Product Specifications shall apply mutatis mutandis to the Product rejected for causing the failure to achieve the Quarterly Average Product []*.”

7.    Amendment of Section 7.  The Agreement is hereby amended by adding the following as a new second paragraph of Section 7:

“For the longer of: (i) the []*; and (ii) as long as Cubist []* plus an additional []*, neither ACSD nor any of its Affiliates shall:

		
	(a)
	manufacture, develop, supply or otherwise produce any product containing []* or any related []* used in the manufacture of []* for itself or any third party;

		
	(b)
	commence or participate in any action or proceeding (including, without limitation, any patent opposition or reexamination proceeding), or otherwise assert in writing any claim, challenging or denying the validity of any of such []*, or any claim thereof (each, a “Patent Challenge”);

		
	(c)
	actively assist any other person or entity in bringing or prosecuting any Patent Challenge; or

		
	(d)
	in any country where []*, file, or actively assist any other person or entity regarding the filing of, an Abbreviated New Drug Application containing a Patent Challenge, or equivalent filing outside of the United States, for any product containing []*.

In the event the exclusivity provisions under this Section 7 constitute a breach of applicable anti-trust law, the Parties shall cooperate in good faith to agree upon exclusivity provisions which are in line with such anti-trust law.”

*Confidential Treatment Requested.  Omitted portions filed with the Commission.    4

8.    Amendment of Section 12.1.  The Agreement is hereby amended by deleting Section 12.1 thereof in its entirety and replacing it with the following Section 12.1:

“12.1    Term

This Agreement shall take effect as of the Effective Date and shall remain in effect until June 30, 2024, unless sooner terminated in accordance with Section 12.2 or extended in accordance with this Section 12.1.  All applicable terms and conditions of this Agreement shall remain in effect during the extension term, unless expressly amended in writing by the parties. Cubist may renew this Agreement for additional two-year extension terms by providing written renewal notice to ACSD not later than eighteen (18) months prior to the expiration of the then current extension term.”

9.    Amendment to Exhibit.  The Agreement is hereby amended by replacing the existing Exhibit H with the Exhibit H attached to this Amendment No. 7. 

10.    Inventory Levels.  ACSD shall at all times maintain at least []*’ inventory of []* sufficient for the production of Products under the Agreement.

11.    Dedication of New []*.  The new []* located in []* of the Facility, a description of which is attached hereto as Exhibit 1 (the “New []*”), will be dedicated by ACSD to Cubist.  ACSD shall not directly or indirectly use the New []* for any other customer or project without Cubist’s prior written authorization.  In addition, all of the equipment in the Facility outside of the New []*, including, but not limited to, the equipment used by ACSD in the Facility’s []* and []* and any other equipment set forth in the list attached hereto as Exhibit 2, will not be used by ACSD to produce any []* or other []* without Cubist’s prior written consent.  Upon at least six (6) months prior written notice to ACSD of its intent to use such equipment, Cubist shall have the right to use any such equipment in the Facility on a first priority basis.  ACSD will maintain complete and accurate records for such equipment, including, but not limited to, logbooks and cleaning records, as reasonably requested by Cubist or as otherwise needed to support cGMPs.  Such records will be made available to Cubist upon its reasonable request for review.

12.    No Other Amendments.  Except to the extent amended hereby, all of the definitions, terms, provisions and conditions set forth in the Agreement are hereby ratified and confirmed and shall remain in full force and effect.  The terms and conditions herein and subject matter hereof shall at all times be considered Confidential Information of Cubist, as defined in the Agreement.  The Agreement and this Amendment No. 7 shall be read and construed together as a single agreement and the term “Agreement” shall be deemed a reference to the Agreement as amended by This Amendment No. 7.  This Amendment No. 7 may be signed in any number of counterparts, each of which shall be deemed to be an original and all of which together shall constitute but one and the same instrument.  In making proof of this Amendment No. 7 it shall not be necessary to produce or account for more than one such counterpart.  

*Confidential Treatment Requested.  Omitted portions filed with the Commission.    5

IN WITNESS WHEREOF, the Parties have caused this Amendment No. 7 to be executed by their duly authorized representatives as of the Amendment Effective Date.

ACS DOBFAR SpA

By:     /s/ Marco Falciani            

Name:     Marco Falciani            

Title:     President                

Date:     July 1, 2014                

CUBIST PHARMACEUTICALS, INC.

By:    /s/ Robert J. Perez            

Name:    Robert J. Perez            

Title:    President & Chief Operating Officer    

Date:    July 10, 2014                
    

*Confidential Treatment Requested.  Omitted portions filed with the Commission.    6

EXHIBIT H

PRODUCT PRICE SCHEDULE EFFECTIVE []*

	
			
	KGS ORDERED-LOWER
	KGS ORDERED-UPPER

	PRICE IN []*

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	[]*

	[]*
	[]*
	[]*

	[]*
	[]*
	[]*

	[]*
	[]*
	[]*

	[]*
	[]*
	[]*

	[]*
	[]*
	[]*

	[]*
	[]*
	[]*

	[]*
	[]*
	[]*

	[]*
	[]*
	[]*

	[]*
	[]*
	[]*

*Confidential Treatment Requested.  Omitted portions filed with the Commission.    7

EXHIBIT H-1

[]* 
as of the Amendment No. 7 Effective Date

	
			
	Code
	Description
	[]*

	[]*
	[]*
	[]*

	[]*
	[]*
	[]*

	[]*
	[]*
	[]*

	[]*
	[]*
	[]*

	[]*
	[]*
	[]*

*Confidential Treatment Requested.  Omitted portions filed with the Commission.    8

EXHIBIT 1

DESCRIPTION OF NEW []*

*Confidential Treatment Requested.  Omitted portions filed with the Commission.    9

EXHIBIT 2

EQUIPMENT LIST

	
		
	Function
	Equipment Code

	[]*
	[]*

	[]*

	[]*
	[]*

	[]*

	[]*

	[]*

	[]*

	[]*

	[]*

	[]*
	[]*

	[]*

	[]*

	[]*

*Confidential Treatment Requested.  Omitted portions filed with the Commission.    10

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