Document:

Employment Agreement

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 This AGREEMENT (the “Agreement”) is
made this 19th day of January, 2012 (the “Execution Date”), by and between PUMA BIOTECHNOLOGY, INC., a Delaware corporation with principal executive offices at 10880 Wilshire Boulevard, Suite 2150, Los Angeles, California (the
“Company”), and ALAN H. AUERBACH (the “Executive”). 
 W I T N E S S E T H: 

WHEREAS, the Company’s predecessor hired the Executive on September 15, 2010 (the “Hire Date”) and the Company
currently employs the Executive as its President and Chief Executive Officer; and 
 WHEREAS, the Company desires to continue
employing the Executive, and the Executive desires to continue serving the Company, as its President and Chief Executive Officer, upon the terms and subject to the conditions contained in this Agreement. 

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties hereto hereby agree as follows:

 1. Employment. The Company agrees to continue to employ the Executive, and the Executive agrees to continue to be
employed by the Company, upon the terms and subject to the conditions of this Agreement. 
 2. Term. The employment of
the Executive by the Company as provided in Section 1 shall continue until September 1, 2014 unless sooner terminated in accordance with the provisions of Section 9 below (the “Initial Term”); provided,
however, that the Term shall be extended automatically for additional one-year periods (each a “Renewal Term”) unless one party shall advise the other in writing at least 60 days before the expiration of the Initial Term or
any Renewal Term, as applicable, that this Agreement shall no longer be so extended. For purposes of this Agreement, the “Term” shall include the Initial Term and any subsequent Renewal Term(s). In the event the Company provides
notice of its decision not to extend the Term and, at the time of such notice, the Executive is willing and able to continue providing services in accordance with the terms of this Agreement, such notice shall be deemed a termination without Cause
under this Agreement. The parties acknowledge that, notwithstanding the fact that this Agreement memorializes and governs the terms of the Executive’s employment with the Company beginning on the Hire Date, the Executive has received all
remuneration owed to him by the Company in any form in respect of the period of his employment preceding the Execution Date (other than any Base Salary payable for any pay period beginning prior to the Execution Date and ending on or after the
Execution Date (if any)). 
 3. Duties; Best Efforts; Place of Performance. 

(a) The Executive shall serve as President and Chief Executive Officer of the Company and shall perform, subject to the direction of the
Board of Directors of the Company (the “Board”), such duties as are customarily performed by the President and Chief Executive Officer. The Executive shall also have such other powers and duties as may be from time to time directed
by the Board, provided that the nature of the Executive’s powers and duties so prescribed shall not be inconsistent with the Executive’s position and duties hereunder. 

 (b) The Executive shall devote substantially all of his business time, attention and
energies to the business and affairs of the Company and shall use his best efforts to advance the best interests of the Company and shall not, during the Term, be actively engaged in any other business activity that (i) is pursued for gain,
profit or other pecuniary advantage, or (ii) will interfere with the performance by the Executive of his duties hereunder or the Executive’s availability to perform such duties or that will adversely affect, or negatively reflect upon, the
Company. 
 4. Directorship. Subject to the provisions of applicable law and approval by the Company’s stockholders,
the Executive shall be included in the management slate for election as a director at every stockholders meeting during the Term at which his term as a director would otherwise expire, unless such inclusion of the Executive would violate applicable
fiduciary duties. If elected by the Company’s stockholders, the Executive agrees to accept election, and to serve during the Term, as director of the Company, without any compensation therefor other than as specified in this Agreement.

 5. Compensation. Subject to Section 2 above, as full compensation for the performance by the Executive of his
duties under this Agreement, the Company shall, during the Term, pay the Executive as follows: 
 (a) Base Salary. The
Company shall pay the Executive a base salary (the “Base Salary”) at a rate of $470,000 per annum, payable in equal semi-monthly installments during the Term, or otherwise in accordance with the Company’s regular payroll
practices in effect from time to time (but in no event less often than monthly). Notwithstanding the foregoing, the parties acknowledge and agree that no Base Salary was earned or payable for any periods prior to September 1, 2011. The Board
shall annually review the Base Salary to determine whether an increase in the amount thereof is warranted. 
 (b)
Discretionary Bonus. At the sole discretion of the Board, the Executive shall be eligible to receive an annual discretionary bonus (the “Discretionary Bonus”) in an amount up to fifty percent (50%) of the Base Salary,
based upon his performance on behalf of the Company during the prior year; provided, however, that the Executive’s Discretionary Bonus with respect to the Company’s 2011 fiscal year (if any) shall be pro rated based on the period of
the Executive’s actual service during such fiscal year. The Discretionary Bonus shall be paid within 30 days of the date the Discretionary Bonus (if any) is awarded by the Board. In addition, the Board shall annually review the Discretionary
Bonus opportunity to determine whether an increase in the amount thereof is warranted. 
 (c) Withholding. The Company
shall withhold all applicable federal, state and local taxes and social security and such other amounts as may be required by law from all amounts payable to the Executive under this Section 5. 

  
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 (d) Equity Incentive Awards. 

(i) As soon as practicable after the Execution Date, the Company shall grant to the Executive an option to purchase
200,000 shares of the Company’s common stock (the “Option”) pursuant to the Company’s 2011 Incentive Award Plan (the “Plan”). The Option shall be granted with an exercise price equal to the Fair Market
Value (as defined in the Plan) of the shares underlying the Option on the date of grant and shall vest, subject to Section 10(d)(ii) below, as to one-third (1/3rd) of the shares subject thereto on the first anniversary of the Execution Date and as to an additional
one-thirty-sixth (1/36th) of the shares subject
thereto on each monthly anniversary of the Execution Date thereafter. Subject to the foregoing, the terms and conditions of the Option shall be set forth in a stock option agreement (the “Option Agreement”) and shall be governed by
the terms and conditions of the Option Agreement and the Plan. 
 (ii) In addition, the Board shall review the aggregate number
of stock options and/or other equity incentive awards granted to the Executive not less frequently than annually in order to determine whether new or additional equity incentive awards are warranted, and the Executive shall be eligible to receive
grants of equity incentive awards as determined by the Board. Notwithstanding the foregoing, to the extent that (1) an annual award of stock options and/or other equity incentive awards is made to one or more senior executive officers or
directors of the Company (other than the Executive), and/or (2) a special incentive or other non-recurring award of stock options and/or other equity incentive awards is made to the non-employee members of the Board as a group, in either case,
in any year during the Term, the Executive shall be entitled to receive an annual equity incentive award for such year that is no less favorable, in the aggregate, than the most favorable annual equity incentive award made to another executive
officer or director of the Company for such year. For the avoidance of doubt, in no event shall the immediately preceding sentence entitle the Executive to receive any new or additional award in connection with the grant to another executive
officer or director, as applicable, of any new hire award, any award made in connection with a director’s initial election to the Board, any special bonus award to any particular officer or director (other than to non-employee members of the
Board as a group) and/or any other equity incentive award, in any case, that would not properly be characterized as either an annual award or an award to non-employee members of the Board as a group, as determined by the Board. 

(e) Expenses. The Company shall reimburse the Executive for all normal, usual and necessary expenses incurred by the Executive in
furtherance of the business and affairs of the Company, including reasonable travel and entertainment, upon timely receipt by the Company of appropriate vouchers or other proof of the Executive’s expenditures and otherwise substantiated in
accordance with the Company’s expense reimbursement policy applicable to its senior executives, as may from time to time be adopted or revised by the Company. 
 (f) Other Benefits. The Executive shall be eligible to participate in any benefit or other plans (including, without limitation, dental, medical, medical reimbursement and hospital plans, pension
plans, employee stock purchase plans, profit sharing plans, bonus plans and other so-called “fringe” benefits) as the Company shall make available to its senior executives from time to time. This Section 5(f) shall not obligate the
Company to adopt or maintain any benefit or other plan or plans at any time. 

  
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 (g) Vacation. The Executive shall, during the Term, be entitled to a vacation of four
(4) weeks per annum, in addition to holidays observed by the Company; provided, however, that the Executive shall not be entitled to accrue more than six (6) weeks of accrued vacation time at any given time. In the event that
the Executive has accrued the maximum of six (6) weeks accrued and unused vacation time, the Executive shall cease accruing further vacation time until such time as the Executive’s accrued and unused vacation time is less than such maximum
amount. Vacation time so accrued shall be used in accordance with applicable Company policy. 
 6. Confidential Information
and Inventions. 
 (a) The Executive recognizes and acknowledges that in the course of his duties he has received and will
continue to receive confidential or proprietary information owned by the Company, its subsidiaries or third parties with whom the Company has an obligation of confidentiality. Accordingly, during and after the Term, the Executive agrees to keep
confidential and not disclose or make accessible to any other person or use for any other purpose other than in connection with the fulfillment of his duties under this Agreement, any Confidential and Proprietary Information (as defined below) owned
by, or received by or on behalf of, the Company or any of its subsidiaries. “Confidential and Proprietary Information” shall include, but shall not be limited to, confidential or proprietary scientific or technical information,
data, formulas and related concepts, business plans (both current and under development), clinical and regulatory plans, filings and protocols, client lists, promotion and marketing programs, trade secrets, or any other confidential or proprietary
business information relating to development programs, costs, revenues, marketing, investments, sales activities, promotions, credit and financial data, manufacturing processes, supply arrangements, financing methods, plans or the business and
affairs of the Company or of any subsidiary of the Company or client of the Company. The Executive expressly acknowledges the trade secret and/or proprietary status of the Confidential and Proprietary Information and that the Confidential and
Proprietary Information constitutes a protectable business interest of the Company. The Executive agrees: (i) not to use any such Confidential and Proprietary Information for himself or others, except as required in the proper execution of the
Executive’s duties to the Company; and (ii) not to take any Confidential and Proprietary Information, or embodiments thereof in Company materials or reproductions (including but not limited to writings, correspondence, notes, drafts,
records, invoices, technical and business policies, computer programs or disks) thereof from the Company’s offices at any time during his employment by the Company, except as required in the execution of the Executive’s duties to the
Company. The Executive agrees to return immediately all such Confidential and Proprietary Information, or embodiments thereof in Company materials and reproductions (including but not limited, to writings, correspondence, notes, drafts, records,
invoices, technical and business policies, computer programs or disks) thereof in his possession to the Company upon request and in any event immediately upon termination of employment. Notwithstanding anything herein to the contrary the following
shall not constitute Confidential and Proprietary Information: (i) information that the Executive can demonstrate was already known to him prior to the commencement of his employment with the Company, including the period prior to the Hire
Date, (ii) information that is in or has entered the public domain through no breach of this Agreement or other wrongful act of the Executive, and (iii) information that has been rightly received from a third party who is not under any
obligation of confidentiality with respect to such information. 

  
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 (b) Except with prior written authorization by the Company or until such time as such
information becomes available in the public domain other than as a result of the Executive’s violation of the provisions of this Section 6, the Executive agrees not to disclose or publish any of the Confidential and Proprietary
Information, including without limitation any confidential, scientific, technical or business information of any other party to whom the Company or any of its subsidiaries owes an obligation of confidence, at any time during or after his employment
with the Company. 
 (c) The Executive agrees that all inventions, discoveries, improvements, technologies, trade secrets and
patentable, trademarked or copyrightable works (“Inventions”) initiated, conceived or made by him, either alone or in conjunction with others, during the Term shall be the sole property of the Company to the maximum extent permitted
by applicable law and, to the extent permitted by law, shall be “works made for hire” as that term is defined in the United States Copyright Act (17 U.S.C.A., Section 101). The Company shall be the sole owner of all patents,
copyrights, trade secret rights, and other intellectual property or other rights in connection therewith. The Executive hereby assigns to the Company all right, title and interest he may have or acquire in all such Inventions; provided,
however, that the Board may in its sole discretion agree to waive the Company’s rights pursuant to this Section 6(c) with respect to any Invention that is not directly or indirectly related to the Company’s business,
provided, further, that in no event may the Board waive the Company’s right with respect to any Invention relating to the field of oncology. The Executive further agrees to assist the Company in every proper way (but at the
Company’s expense) to obtain and from time to time enforce patents, trademarks, copyrights or other rights on such Inventions in any and all countries, and to that end the Executive will execute all documents necessary: 

(i) to apply for, obtain and vest in the name of the Company alone (unless the Company otherwise directs) letters patent, trademarks,
copyrights or other analogous protection in any country throughout the world and when so obtained or vested to renew and restore the same; and 
 (ii) to defend any opposition proceedings or challenges in respect of such applications and any opposition proceedings or challenges or petitions or applications for revocation of such letters patent,
trademark, copyright or other analogous protection. 
 (d) The Executive acknowledges that while performing the services under
this Agreement the Executive may locate, identify and/or evaluate patented or patentable inventions having commercial potential in the fields of pharmacy, pharmaceutical, biotechnology, healthcare, technology and other fields which may be of
potential interest to the Company or one of its subsidiaries (the “Third Party Inventions”). The Executive understands, acknowledges and agrees that all rights to, interests in or opportunities regarding, all Third-Party Inventions
identified by the Company, any of its subsidiaries or either of the foregoing persons’ officers, directors, employees (including the Executive), agents or consultants during the Employment Term shall be and remain the sole and exclusive
property of the Company or such subsidiary and the Executive shall have no rights whatsoever to such Third-Party Inventions and will not pursue for himself or for others any transaction relating to the Third-Party Inventions which is not on behalf
of the Company; provided, however, that the Board may in its sole discretion agree to waive the Executive’s obligations pursuant to this Section 6(d) with respect to any Third Party

  
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Invention that is neither competitive nor potentially competitive with the Company’s business, provided, further, that in no event may the Board waive the Company’s right with
respect to any Invention relating to the field of oncology. 
 (e) The provisions of this Section 6 shall survive any
termination of this Agreement. 
 (f) The Executive has been notified and understand that the provisions of Section 6 of
this Agreement do not apply to any Invention that qualifies fully under the provisions of Section 2870 of the California Labor Code, which provides as follows: 
  

	 	“(a)	Any provision in an employment agreement which provides that an Executive shall assign, or offer to assign, any of his or her rights in an invention to his or her
employer shall not apply to an invention that the Executive developed entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions that either:

  

	 	(1)	Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably anticipated research or
development of the employer; or 

  

	 	(2)	Result from any work performed by the Executive for the employer. 

  

	 	(b)	To the extent a provision in an employment agreement purports to require an Executive to assign an invention otherwise excluded from being required to be assigned under
subdivision (a), the provision is against the public policy of this state and is unenforceable.” 

 7.
Non-Solicitation and Non-Disparagement. 
 (a) During the Term and for a period of 18 months following the termination of
the Executive’s employment with the Company, the Executive shall not, directly or indirectly, without the prior written consent of the Company, solicit or induce any employee of the Company or any of its subsidiaries to leave the employ of the
Company or any such subsidiary or solicit any former employee who was employed by the Company or any subsidiary within one year prior to the date of any such solicitation. 
 (b) The Executive agrees that both during the Term and at all times following the termination of the Executive’s employment with the Company, the Executive shall not directly or indirectly disparage,
whether or not such information is true, the name or reputation of the Company (including its officers and directors). The Company agrees, that, both during the Term and at all times following the termination of the Executive’s employment with
the Company, the Company’s officers and directors, in each case for so long as they continue to be employed by the Company or serve on the Board, as applicable, shall not publicly disparage, whether or not such information is true, the name or
reputation of the Executive. Notwithstanding anything to the contrary in this subsection, either party may make any statement necessary to respond to any government investigation, to comply with any court, legal or regulatory order or other
requirement, or to comply with any subpoena. 

  
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 (c) In the event that the Executive breaches any provisions of Section 6 or this
Section 7 or there is a threatened breach, then, in addition to any other rights which the Company may have, the Company shall (i) be entitled, without the posting of a bond or other security, to injunctive relief to enforce the
restrictions contained in such Sections and (ii) have the right to require the Executive to account for and pay over to the Company all compensation, profits, monies, accruals, increments and other benefits (collectively
“Benefits”) derived or received by the Executive as a result of any transaction constituting a breach of any of the provisions of Sections 6 or 7 and the Executive hereby agrees to account for and pay over such Benefits to the
Company. 
 (d) Each of the rights and remedies enumerated in Section 7(c) shall be independent of the others and shall be
in addition to and not in lieu of any other rights and remedies available to the Company at law or in equity. If any of the covenants contained in Section 6 above or in this Section 7, or any part of any of them, is hereafter construed or
adjudicated to be invalid or unenforceable, the same shall not affect the remainder of the covenant or covenants or rights or remedies which shall be given full effect without regard to the invalid portions. If any of the covenants contained in
Section 6 above or in this Section 7 is held to be invalid or unenforceable because of the duration of such provision or the area covered thereby, the parties agree that the court making such determination shall have the power to reduce
the duration and/or area of such provision and in its reduced form such provision shall then be enforceable. No such holding of invalidity or unenforceability in one jurisdiction shall bar or in any way affect the Company’s right to the relief
provided in this Section 7 or otherwise in the courts of any other state or jurisdiction within the geographical scope of such covenants as to breaches of such covenants in such other respective states or jurisdictions, such covenants being,
for this purpose, severable into diverse and independent covenants. 
 (e) In the event that an actual proceeding is brought in
equity to enforce the provisions of Section 6 or this Section 7, the Executive shall not urge as a defense that there is an adequate remedy at law nor shall the Company be prevented from seeking any other remedies which may be available.

 (f) The provisions of this Section 7 shall survive any termination of this Agreement. 

8. Representations and Warranties by the Executive. The Executive hereby represents and warrants to the Company as follows:

 (a) Neither the execution or delivery of this Agreement nor the performance by the Executive of his duties and other
obligations hereunder violates or will violate any statute, law, determination or award, or conflicts with or constitutes a default or breach of any covenant or obligation under (whether immediately, upon the giving of notice or lapse of time or
both) any prior employment agreement, contract, or other instrument to which the Executive is a party or by which he is bound. 

(b) The Executive has the full right, power and legal capacity to enter and deliver this Agreement and to perform his duties and other
obligations hereunder. This Agreement constitutes the legal, valid and binding obligation of the Executive enforceable 

  
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against him in accordance with its terms. No approvals or consents of any persons or entities are required for the Executive to execute and deliver this Agreement or perform his duties and other
obligations hereunder. 
 9. Termination. The Executive’s employment may be terminated as follows: 

(a) The Executive’s employment hereunder may be terminated by the Board for Cause. Any of the following actions by the Executive
shall constitute “Cause”: 
 (i) The willful failure, disregard or refusal by the Executive to perform his
duties hereunder except where the performance of such duties is deemed unlawful, which, to the extent capable of cure, is not cured by the Executive within thirty (30) days after written notice thereof is given to the Executive by the Company;

 (ii) Any willful, intentional or grossly negligent act by the Executive having the effect of injuring, in a material way
(whether financial or otherwise and as determined in good-faith by a majority of the Board), the business or reputation of the Company or any of its subsidiaries, taken as a whole; 

(iii) Willful misconduct by the Executive in respect of the duties or obligations of the Executive under this Agreement, including,
without limitation, insubordination with respect to lawful directions received by the Executive from the Board; 
 (iv) The
Executive’s commission of any felony or a misdemeanor involving moral turpitude (including entry of a nolo contendere plea to any such charge); 
 (v) The determination by the Company, after a reasonable and good-faith investigation by the Company (which shall include interviewing the Executive) following a written allegation by another employee of
the Company, that the Executive engaged in some form of harassment prohibited by law (including, without limitation, age, sex or race discrimination), unless the Executive’s actions were specifically directed by the Board; 

(vi) Any misappropriation or embezzlement of the property of the Company or its subsidiaries (whether or not a misdemeanor or felony);

 (vii) Breach by the Executive of any of the provisions of Sections 6, 7 or 8 of this Agreement; and 

(viii) Material breach by the Executive of any provision of this Agreement other than those contained in Sections 6, 7 or 8 which is not
cured by the Executive within thirty (30) days after written notice thereof is given to the Executive by the Company. 

(b) The Executive’s employment shall terminate automatically upon the Executive’s death during the Term. The Executive’s
employment hereunder may be terminated by the Board due to the Executive’s Disability. For purposes of this Agreement, a termination for “Disability” shall occur (i) when the Board has provided a written termination notice
to the Executive supported by a written statement from a reputable independent physician to the effect that the Executive shall have become so physically or mentally incapacitated as to be unable to

  
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resume, within the ensuing twelve (12) months, his employment hereunder by reason of physical or mental illness or injury, or (ii) upon rendering of a written termination notice by the
Board after the Executive has been unable to substantially perform his duties hereunder for 90 or more consecutive days, or more than 120 days in any consecutive twelve month period, by reason of any physical or mental illness or injury. For
purposes of this Section 9(b), the Executive agrees to make himself available and to cooperate in any reasonable examination by a reputable independent physician retained by the Company. 

(c) The Executive’s employment hereunder may be terminated by the Company (or its successor) in connection with the occurrence of a
Change in Control. For purposes of this Agreement, “Change in Control” shall have the meaning set forth in the Puma Biotechnology, Inc. 2011 Incentive Award Plan (as amended from time to time). 

(d) The Executive’s employment may be terminated by the Executive for Good Reason. “Good Reason” means the
occurrence of any one or more of the following events without the Executive’s prior written consent, unless the Company corrects in all material respects the circumstances constituting Good Reason (provided such circumstances are capable of
correction) in accordance with the correction provisions described below: 
 (i) A material diminution in the Executive’s
Base Salary, excluding any reduction applicable equally to all executive officers of the Company following a material decline in the Company’s earnings, public image, or performance; 

(ii) A material diminution in the Executive’s authority, duties or responsibilities; 

(iii) A change in the geographic location at which the Executive must perform services to a location that is greater than 25 miles from
the Company’s principal place of business as of the Execution Date; 
 (iv) A direction to the Executive to take any
action that that violates any applicable legal or regulatory requirement; or 
 (v) Any other action or inaction that
constitutes a material breach by the Company (including its officers and directors) of its obligations under this Agreement; 

provided, however, that no termination shall be deemed a termination by the Executive for Good Reason unless and until
(x) the Executive provides the Board with written notice of the circumstances constituting Good Reason within 90 days after the date that the Executive first becomes aware of the existence of such circumstances; (y) the Company fails to
correct the circumstance so identified within 30 days after the receipt of such notice (if capable of correction); and (z) the effective date of the Executive’s termination of employment occurs no later than 150 days after the date that
the Executive first becomes aware of the of the event or circumstances constituting Good Reason. 
 (e) The Executive’s
employment may also be terminated by the Executive or by the Company for any reason or no reason, subject in all cases to the provisions of Section 10 hereof. 

  
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 10. Compensation upon Termination. The Company shall be obligated to pay the
compensation and other benefits to the Executive described in this Section 10 in the event the Executive’s employment is terminated during the Term: 
 (a) Death or Disability. If the Executive’s employment is terminated as a result of his death or Disability, the Company shall pay to the Executive or to the Executive’s estate, as
applicable, in each case through the date of his death or Disability, his Base Salary, any Discretionary Bonus that has been awarded by the Board, but remains unpaid, expense reimbursement amounts incurred on or prior to the date of termination that
are reimbursable under Section 5(e) above and the cash value of any accrued but unused vacation time. 
 (b) For
Cause. If the Executive’s employment is terminated by the Board for Cause, then the Company shall pay to the Executive his Base Salary, any Discretionary Bonus that has been awarded by the Board, but remains unpaid, expense reimbursement
amounts incurred on or prior to the date of termination that are reimbursable under Section 5(e) above and the cash value of any accrued but unused vacation time through the date of his termination, and the Executive shall have no further
entitlement to any other compensation or benefits from the Company. 
 (c) For Good Reason or Without Cause. Subject to
Sections 10(f) and 10(g)(ii) below, if the Executive terminates his employment with the Company for Good Reason or the Executive’s employment is terminated by the Company other than as a result of the Executive’s death or Disability and
other than as specified in Section 10(b) above, then the Company shall: 
 (i) Pay the Executive an amount equal to the
sum of (A) the Executive’s then-current annualized Base Salary, plus (B) the maximum Discretionary Bonus for which the Executive was eligible in respect of the year in which such termination occurs, payable over a period of one year
following such termination in substantially equal installments on the regularly scheduled Company payroll dates occurring during such one-year period, provided, however, that the first such payment shall not be made until the first regularly
scheduled Company payroll date occurring more than fifty-two (52) days after the date of termination (the date on which such payment is made, “First Payroll Date”) and any amounts that would otherwise be payable prior to the
First Payroll Date shall instead be paid on the First Payroll Date; 
 (ii) Pay the Executive a lump-sum amount, payable on the
date of termination, equal to the sum of the cash value of all accrued but unused vacation time, any Discretionary Bonus that has been awarded by the Board for a prior year but remains unpaid, and expense reimbursement amounts incurred on or prior
to the date of termination that are reimbursable under Section 5(e) above; and 
 (iii) Subject to the Executive’s
valid and timely election under the Consolidated Omnibus Budget Reconciliation Act of 1986, as amended (“COBRA”) to receive benefits, pay directly to the insurer on the Executive’s behalf the full cost of the premiums required
to continue the healthcare of the Executive and his dependents at the same levels in effect on the date of termination until the earlier to occur of the 18-month anniversary of the 

  
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Executive’s date of termination or the date on which the Executive becomes eligible for substantially comparable healthcare coverage under the group health plan of another employer (in
either case, the “Continuation Period”), provided, however, that if (A) any plan pursuant to which such benefits are provided is not, or ceases prior to the expiration of the Continuation Period to be, exempt from the
application of Section 409A (as defined below) under Treasury Regulation Section 1.409A-1(a)(5), (B) the Company cannot provide the COBRA benefit without violating applicable law (including, without limitation, Section 2716 of
the Public Health Service Act), or (C) the Company is otherwise unable under applicable law to continue to cover the Executive or the Executive’s dependents under its group health plans without violating a prohibition on such coverage or
incurring penalties and/or additional taxes as a result of such coverage, then, in any such case, an amount equal to each remaining premium payment shall thereafter be paid to the Executive as currently taxable compensation in substantially equal
monthly installments over the Continuation Period (or the remaining portion thereof) (the benefit described in this Section 10(c)(iii), the “COBRA Severance”). After the Continuation Period, any COBRA continuation (to the
extent permitted under applicable law) shall be at the Executive’s sole expense. The Executive shall notify the Company immediately if the Executive becomes eligible to be covered by a medical or health insurance plan of another employer.

 (d) Change in Control. Notwithstanding Section 10(c) above or anything contained herein to the contrary, subject
to Sections 10(f) and 10(g)(ii) below, if, during the period beginning 60 days prior to and ending 18 months after the occurrence of a Change in Control, the Executive’s employment is terminated by the Company (or its successor) without Cause
or by the Executive for Good Reason, then the Company (or its successor) shall provide the following compensation and benefits to the Executive: 
 (i) A lump-sum cash payment equal to the sum of (A) twice the Executive’s Base Salary as in effect immediately prior to such termination, (B) twice the maximum amount of the Discretionary
Bonus to which the Executive was eligible for the year in which such termination occurs and (C) the cash value of any accrued but unused vacation time, any Discretionary Bonus that has been awarded by the Board but remains unpaid, and expense
reimbursement amounts incurred on or prior to the date of termination that are reimbursable under Section 5(e) above, with the payments described in (A) and (B) being paid on the First Payroll Date and the payments described in
(C) being paid on the date of termination; provided, however, that if the Change in Control occurs during the sixty-day period following the Executive’s termination and the Executive has already received or begun receiving
payments under Section 10(c)(i) and/or (ii) above prior to the date of the Change in Control, then the lump-sum payment described in this Section 10(d)(i) shall (x) be reduced by the amount of any such payments made under
Section 10(c) prior to the date of the Change in Control, and (y) be made in full and final satisfaction of all amounts payable under Section 10(c)(i) and (ii) above (and under this Section 10(d)(i)). 

(ii) All unvested stock options and other stock-based incentives held by the Executive and issued by the Company whether pursuant to a
stock option or stock incentive plan approved by the Company’s stockholders or otherwise (collectively, the “Incentives”) shall immediately vest upon the later to occur of the Change in Control or the Executive’s
termination without Cause or for Good Reason and, to the extent applicable, such Incentives shall remain exercisable for a period of 12 months following such termination; provided, however, that the exercise period for any Incentive shall not
extend beyond the expiration of the maximum term of such Incentive; and 

  
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 (iii) Subject to the Executive’s valid and timely election to receive benefits COBRA,
the COBRA Severance in accordance with the terms of Section 10(c)(iii) above. After the Continuation Period, any COBRA continuation (to the extent permitted under applicable law) shall be at the Executive’s sole expense. The Executive
shall notify the Company immediately if the Executive becomes eligible to be covered by a medical or health insurance plan of another employer. 
 (e) Parachute Payments. 
 (i) Parachute Payment Limitation. If any
payment or distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of the Executive, whether paid or payable pursuant to this Agreement or otherwise (“Payment”)
would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise
Tax”), then the Company shall cause to be determined, before any amounts of the Payment are paid to the Executive, which of the following two alternative forms of payment shall be paid to the Executive: (i) payment in full of the
entire amount of the Payment (a “Full Payment”), or (ii) payment of only a part of the Payment so that the Executive receives the largest payment possible without the imposition of the Excise Tax (a “Reduced
Payment”). A Full Payment shall be made in the event that the quotient obtained by dividing (i) the excess of (a) the Full Payment, over (b) the Reduced Payment, by (ii) the Reduced Payment, is greater than ten percent
(10%). A Reduced Payment shall be made in the event that the quotient obtained by dividing (i) the excess of (a) the Full Payment, over (b) the Reduced Payment, by (ii) the Reduced Payment, is less than or equal to ten percent
(10%). If a Reduced Payment is made, (i) the Payment shall be paid only to the extent permitted under the Reduced Payment alternative, and the Executive shall have no rights to any additional payments and/or benefits constituting the Payment,
and (ii) reduction in payments and/or benefits shall occur in the following order unless the Executive elects in writing a different order: (1) reduction of cash payments; (2) cancellation of accelerated vesting of equity awards other
than stock options; (3) cancellation of accelerated vesting of stock options; and (4) reduction of other benefits paid to the Executive. In the event that acceleration of compensation from the Executive’s equity awards is to be
reduced, such acceleration of vesting shall be canceled in the reverse order of the date of grant unless the Executive elects in writing a different order for cancellation. 
 (ii) Gross-Up Payment. If it is determined that the Payment would result in an Excise Tax, the Company shall pay and the Executive shall be entitled to receive an additional payment (a
“Gross-Up Payment”) from the Company in an amount that after the payment of all taxes (including, without limitation, (i) any income or employment taxes, (ii) any interest or penalties imposed with respect to such taxes,
and (iii) any additional excise tax imposed by Section 4999 of the Code) on the Gross-Up Payment, the Executive shall retain an amount equal to the full Excise Tax. In no event shall any such Gross-Up Payment or any payment of any income
or other taxes to be paid by the Company under this Section 10(e) be made later than the end of the Executive’s taxable year next following the Executive’s taxable year in which the Executive remits the related taxes. For purposes of
determining the amount of 

  
 12 

 
the Gross-Up Payment, the Executive shall be deemed to have: (x) paid federal income taxes at the highest marginal rate of federal income and employment taxation for the calendar year in
which the Gross-Up Payment is to be made, and (y) paid applicable state and local income taxes at the highest rate of taxation for the calendar year in which the Gross-Up Payment is to be made, net of the maximum reduction in federal income
taxes which could be obtained from deduction of such state and local taxes. Except as otherwise provided herein, the Executive shall not be entitled to any additional payments or other indemnity arrangements in connection with the Payment or the
Gross-Up Payment. 
 (iii) The independent registered public accounting firm engaged by the Company for general audit purposes
as of the day prior to the effective date of the Change of Control shall make all determinations required to be made under this Section 10(e). If the independent registered public accounting firm so engaged by the Company is serving as
accountant or auditor for the individual, entity or group effecting the Change of Control, the Company shall appoint a nationally recognized independent registered public accounting firm to make the determinations required hereunder. The Company
shall bear all expenses with respect to the determinations by such independent registered public accounting firm required to be made hereunder. 
 (iv) The independent registered public accounting firm engaged to make the determinations hereunder shall provide its calculations, together with detailed supporting documentation, to the Company and the
Executive within fifteen (15) calendar days after the date on which the Executive’s right to a Payment is triggered (if requested at that time by the Company or the Executive) or such other time as requested by the Company or the
Executive. Any good faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon the Company and the Executive. 
 (f) This Section 10 sets forth the only obligations of the Company with respect to the termination of the Executive’s employment with the Company, and the Executive acknowledges that, upon the
termination of his employment, he shall not be entitled to any payments or benefits which are not explicitly provided in this Section 10. Further, notwithstanding anything to the contrary contained in this Section 10, the Company shall
have no obligation to pay, and the Executive shall have no right to receive, any compensation, benefits or other consideration provided for in this Section 10 following termination of the Executive’s employment unless the Executive
executes a separate agreement, in the form attached hereto as Exhibit A (the “Release Agreement”), which Release Agreement shall be provided by the Company within 5 days of the date of the termination of the Executive’s
employment with the Company and shall be executed by the Executive within the time limit set forth therein, releasing the Company from any and all liability in connection with the Executive’s employment and the termination thereof;
provided, however, that the failure to execute the Release Agreement shall not relieve the Company of its obligation to pay to the Executive, and the Executive shall be entitled to receive, the amount or cash value of any earned but
unpaid: (i) Base Salary, (ii) previously awarded Discretionary Bonus, (iii) accrued but unused vacation time or (iv) unreimbursed expenses, in each case, as of the date of termination. 

  
 13 

 (g) Section 409A. 

(i) General. To the extent applicable, this Agreement shall be interpreted in accordance with Section 409A of the Code and
Department of Treasury regulations and other interpretative guidance issued thereunder, including without limitation any such regulations or other such guidance that may be issued after the Execution Date (“Section 409A”).
Notwithstanding any provision of this Agreement to the contrary, in the event that following the Execution Date, the Company determines in good faith that any compensation or benefits payable under this Agreement may not be either exempt from or
compliant with Section 409A, the Company shall consult with the Executive and may adopt such amendments to this Agreement or adopt other policies or procedures (including amendments, policies and procedures with retroactive effect), or take any
other commercially reasonable actions necessary or appropriate to preserve the intended tax treatment of the compensation and benefits payable hereunder and/or to preserve the economic benefits of such compensation and benefits, including actions
intended to (i) exempt the compensation and benefits payable under this Agreement from Section 409A, and/or (ii) comply with the requirements of Section 409A; provided, however, that this Section 10(g) does not, and
shall not be construed so as to, create any obligation on the part of the Company to adopt any such amendments, policies or procedures or to take any other such actions or to indemnify the Executive for any failure to do so. To the extent that
compensation or benefits payable under this Agreement constitute “nonqualified deferred compensation” within the meaning of Section 409A, and are designated under this Agreement as payable upon (or within a specified time following)
the Executive’s termination of employment, such compensation or benefits shall, subject to Section 10(g)(ii) hereof, be payable only upon (or, as applicable, within the specified time following) the Executive’s “separation from
service” from the Company (within the meaning of Section 409A). For purposes of Section 409A, any right to a series of installment payments pursuant to this Agreement, including without limitation any severance payments (including any
COBRA Severance), will be considered as a right to a series of separate payments. 
 (ii) Specified Employee.
Notwithstanding anything to the contrary in this Agreement, no compensation or benefits, including without limitation any termination payments or benefits payable under Sections 10(c) and (d) of this Agreement, shall be paid to the Executive
during the 6-month period following the Executive’s separation from service, to the extent that (i) the Executive is a specified employee (within the meaning of Section 409A and using the identification methodology selected by the
Company from time to time) and (ii) the Company makes a good faith determination that paying such amounts at the time or times indicated in this Agreement would be a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code. If
the payment of any such amounts is delayed as a result of the previous sentence, then the Company will pay the Executive the cumulative amount that would have otherwise been payable to the Executive during such 6-month period in a lump sum on the
first business day after such six-month period (or such earlier date upon which such amount can be paid under Section 409A of the Code without resulting in a prohibited distribution, including as a result of the Executive’s death),
together with interest for the period of delay, compounded annually, equal to the prime rate (as published in the Wall Street Journal) in effect as of the dates the payments should otherwise have been provided. 

  
 14 

 (h) The Company shall withhold all applicable federal, state and local taxes and social
security and such other amounts as may be required by law from all amounts payable to the Executive under this Section 10. 

(i) Upon termination of the Executive’s employment hereunder for any reason, the Executive shall be deemed to have resigned as
director of the Company and from all other offices and positions with the Company, effective as of the date of such termination, and the Executive shall take any steps reasonably requested by the Company to effectuate the foregoing. 

(j) The provisions of this Section 10 shall survive any termination of this Agreement. 

11. Miscellaneous. 
 (a) Choice of Law. This Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of California, without giving effect to its principles of conflicts
of laws. 
 (b) Arbitration. Any dispute arising out of, or relating to, this Agreement or the breach thereof (other than
Sections 6 or 7 hereof), or regarding the interpretation thereof, shall be finally settled by arbitration conducted in the City of Los Angeles, California in accordance with the rules of the JAMS then in effect before a single arbitrator appointed
in accordance with such rules. Judgment upon any award rendered therein may be entered and enforcement obtained thereon in any court having jurisdiction. The arbitrator shall have authority to grant any form of appropriate relief, whether legal or
equitable in nature, including specific performance. For the purpose of any judicial proceeding to enforce such award or incidental to such arbitration or to compel arbitration and for purposes of Sections 6 and 7 hereof, the parties hereby submit
to the non-exclusive jurisdiction of the state and federal courts located in the City of Los Angeles, California, and agree that service of process in such arbitration or court proceedings shall be satisfactorily made upon it if sent by registered
mail addressed to it at the address referred to in paragraph (g) below. The costs of such arbitration shall be borne by the Company, except that the Executive shall be required to pay an amount equivalent to any filing fees that the Executive
would have had to pay if a dispute had been filed in state or federal court in the City of Los Angeles. Notwithstanding the foregoing, the Executive shall be required to pay his own attorneys’ fees unless the arbitrator determines that the
Executive is the prevailing party, in which case, the Executive shall be entitled to recover reasonable attorneys’ fees from the Company. Judgment on the arbitration award may be entered by any court of competent jurisdiction. 

(c) Successors. This Agreement shall be binding upon and inure to the benefit of the parties hereto, and their respective heirs,
legal representatives, successors and assigns. 
 (d) Assignment. This Agreement, and the Executive’s rights and
obligations hereunder, may not be assigned by the Executive. The Company may assign its rights, together with its obligations, hereunder in connection with any sale, transfer or other disposition of all or substantially all of its business or
assets. 

  
 15 

 (e) Amendment. This Agreement cannot be amended orally, or by any course of conduct
or dealing, but only by a written agreement signed by the parties hereto (except as expressly provided in Section 10(g) above). 
 (f) Waiver. The failure of either party to insist upon the strict performance of any of the terms, conditions and provisions of this Agreement shall not be construed as a waiver or relinquishment
of future compliance therewith, and such terms, conditions and provisions shall remain in full force and effect. No waiver of any term or condition of this Agreement on the part of either party shall be effective for any purpose whatsoever unless
such waiver is in writing and signed by such party. 
 (g) Notice. All notices, requests, consents and other
communications, required or permitted to be given hereunder, shall be in writing and shall be delivered personally or by an overnight courier service or sent by registered or certified mail, postage prepaid, return receipt requested, to the parties
at the addresses set forth on the first page of this Agreement, and shall be deemed given when so delivered personally or by overnight courier, or, if mailed, five days after the date of deposit in the United States mails. Either party may designate
another address, for receipt of notices hereunder by giving notice to the other party in accordance with this paragraph (g). 

(h) Entire Agreement. This Agreement sets forth the entire agreement and understanding of the parties relating to the subject
matter hereof, and supersedes all prior agreements, arrangements and understandings, written or oral, relating to the subject matter hereof. No representation, promise or inducement has been made by either party that is not embodied in this
Agreement, and neither party shall be bound by or liable for any alleged representation, promise or inducement not so set forth. 
 (i) Severability. In the event that any one or more of the provisions of this Agreement shall be or become invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions of this Agreement shall not be affected thereby. 
 (j) Affiliates. As used in
this Agreement, “affiliate” of a specified Person shall mean and include any Person controlling, controlled by or under common control with tile specified Person. 
 (k) Headings. The section headings contained herein are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement. 

(l) Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute an original, but
all of which together shall constitute one and the same instrument. 

  
 16 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
above written. 
  

			
	PUMA BIOTECHNOLOGY, INC.
		
	By:	 	 /s/ Thomas Malley

		 	Name: Thomas Malley
		 	Title: Member, Board of Directors
	
	THE EXECUTIVE
	
	     /s/ Alan H. Auerbach

	            Alan H. Auerbach

  
 17 

 Exhibit A 

Release Agreement 
 THIS RELEASE AGREEMENT (the “Agreement”) is entered into as of [DATE] by and between Alan H. Auerbach (the “Executive”) and Puma Biotechnology, Inc., a Delaware
corporation (the “Company”). 
 WHEREAS, the Executive and the Company are parties to that certain Employment
Agreement dated January     , 2012 (the “Employment Agreement”), which sets forth the terms of the Executive’s employment with the Company as its President and Chief Executive Officer; 

WHEREAS, Section 10 of the Employment Agreement sets forth certain compensation and other benefits payable to the Executive in
certain circumstances upon the termination of his employment with the Company; 
 WHEREAS, paragraph (e) of Section 10
provides that the Company’s obligation to pay to the Executive the compensation and other benefits described in Section 10 of the Employment Agreement (other than certain accrued compensation) is conditioned upon the Executive’s
execution of a Release Agreement (as defined therein); and 
 WHEREAS, the parties intend that this Agreement shall constitute
the Release Agreement described in Section 10(e) of the Employment Agreement. 
 NOW, THEREFORE, in consideration of the
foregoing, the parties hereby agree as follows: 
 1. Separation of Employment. The Executive’s employment with the
Company terminated effective as of [DATE] under the circumstances described in Section 9([insert applicable paragraph of Sec. 9]) of the Employment Agreement. As a result of such termination, the Executive is entitled to the payments and
benefits described in Section 10([insert applicable paragraph of Sec. 10]), subject to his entry into this Agreement. The Executive acknowledges that he has been paid his final salary, any earned but unpaid Discretionary Bonus (as defined in
the Employment Agreement), any unreimbursed business expenses that are reimbursable under the terms of the Employment Agreement and the cash value of any accrued but unused vacation time through his last day of employment. 

2. Release of Claims. In consideration for the payments and other benefits described in Section 10 of the Employment
Agreement, the Executive hereby fully and finally releases, waives, and discharges any and all legal claims against the Company that he has through the date on which he signs this Agreement. This full and final release, waiver, and discharge extends
to legal and equitable claims of any kind or nature whatsoever including, without limitation, the following: 
 (a) All claims
that the Executive has now, whether or not he now knows about the claims; 
 (b) All claims for attorney’s fees and costs;

 (c) All claims for alleged discrimination against him under any applicable federal, state
and/or local law including, without limitation, rights and claims of age discrimination under the federal Age Discrimination in Employment Act (“ADEA”) and federal Older Workers Benefits Protection Act (“OWBPA”);
and discrimination claims under the California Fair Employment and Housing Act (“CFEHA”), Title VII of the Civil Rights Act of 1964 (“Title VII”), and the Americans With Disabilities Act (“ADA”);

 (d) All claims arising out of his employment and/or the termination of his employment and service as an officer, director
and/or employee of the Company, including, but not limited to, any alleged breach of contract, wrongful termination, termination in violation of public policy, defamation, invasion of privacy, fraud, negligence, infliction of emotional distress,
breach of implied contract and/or breach of the covenant of good faith and fair dealing; 
 (e) All claims for any other alleged
unlawful employment practices arising out of or relating to his employment or separation from employment and service as an officer, director and/or employee of the Company; and 

(f) All claims for any other form of pay, for example bonus pay, incentive pay, holiday pay, severance pay, termination pay,
transaction-based compensation and sick pay. 
 Provided, however, that the foregoing does not constitute a release or waiver of
the Executive’s rights, if any, to (a) indemnification under any applicable directors & officers liability insurance policy, applicable state and federal law, and the Company’s certificate of incorporation and bylaws,
(b) any vested interest he may have in any 40l(k) plan by virtue of his employment with the Company, (c) any rights or claims that may first arise after this Agreement is signed, (d) any rights to any unemployment compensation
benefits to which he is entitled taking into consideration all payments he receives, (e) the payments and benefits specifically promised to the Executive under this Agreement, or (f) the right to institute legal action for the purpose of
enforcing the provisions of this Agreement. 
 The Executive also hereby waives any right to reinstatement to employment with the Company.

 For purposes of this Section 2, “the Executive” includes anyone who has or obtains any legal rights or claims through the
Executive, and the term “Company” means Puma Biotechnology, Inc., and its past and present parents and subsidiaries, if any, and each of them; and past and present agents, officers, directors, employees, consultants, insurers, indemnitors,
attorneys, successors or assigns of any or all of the foregoing entities. 
 3. Rights to Counsel, Consider, and Revoke
and Rescind; Specific Release of ADEA Claims. In further consideration of the payments and benefits provided to the Executive under the Employment Agreement, the Executive hereby unconditionally releases and forever discharges the Company
from any and all claims that the Executive may have as of the date Executive signs this Agreement arising under the ADEA. By signing this Agreement, the Executive hereby acknowledges and confirms the following: 

(i) The Executive was, and is hereby, advised by the Company in connection with his termination to consult with an attorney of his
choice prior to signing this Agreement 

  
 A-2

 
and to have such attorney explain to the Executive the terms of this Agreement, including, without limitation, the terms relating to Executive’s release of claims arising under ADEA, and
the Executive has in fact consulted with an attorney; 
 (ii) The Executive was given a period of not fewer than
twenty-one (21) days to consider the terms of this Agreement and to consult with an attorney of his choosing with respect thereto; 
 (iii) The Executive knowingly and voluntarily accepts the terms of this Agreement; 
 (iv) The payments and benefits provided to the Executive in consideration of this release are in addition to any amounts otherwise owed to the Executive; and 

(v) This Agreement is written in a manner designed to be understood by the Executive and he understands it. The Executive also
understands that he has seven (7) days following the date on which he signs this Agreement within which to revoke the release contained in this paragraph, by providing the Company a written notice of his revocation of the release and waiver
contained in this paragraph. 
 4. Charges. This Agreement does not prohibit the Executive from filing an
administrative charge of discrimination with, or cooperating or participating in an investigation or proceeding conducted by, the Equal Employment Opportunity Commission or other federal or state regulatory or law enforcement agency. 

5. Notice of Section 1542 Rights. The Executive expressly agrees that this Agreement extends to all claims of every
nature and kind, known or unknown, suspected or unsuspected, vested or contingent, past, present, or future, whether arising from or attributable to the Executive, or to the Company’s officers, directors, employees, and agents, acting within or
beyond the scope of their employment; whether relating to his employment by the Company or performance of services for the Company occurring before the execution of this Agreement. 
 THE EXECUTIVE ACKNOWLEDGES THAT HE 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, THE EXECUTIVE HEREBY EXPRESSLY WAIVES ANY RIGHTS HE MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT. 

  
 A-3

 6. Notice of Section 1541 Rights. This Agreement is in full accord,
satisfaction and discharge of doubtful and disputed claims that the Executive has against the Company, and the Executive has signed this Agreement with the express intention of releasing and extinguishing all claims the Executive may have against
the Company, in accordance with Section 1541 of the California Civil Code, which section reads as follows: 
 §1541. An
obligation is extinguished by a release therefrom given to the debtor by the creditor, upon a new consideration, or in writing, with or without new consideration. 
 7. Other Agreements. The Executive’s obligations under Sections 6 and 7 of the Employment Agreement shall remain in full force and effect and will survive the termination of the
Executive’s employment with the Company in accordance with the terms of the Employment Agreement. Nothing in this Agreement shall be construed to supersede or otherwise relieve the Executive of such obligations. 

8. Remedies. In the event that the Executive initiates or voluntarily participates in any action waived by this Agreement,
or if he fails to abide by any of the terms of this Agreement or his post-termination obligations contained in the Employment Agreement, or if he revokes the ADEA release contained in Paragraph 3 of this Agreement within the seven (7)-day period
provided under Paragraph 3, the Company may, in addition to any other remedies it may have, reclaim any amounts paid to him under the severance provisions of the Employment Agreement and/or terminate any benefits or payments that are subsequently
due under the Employment Agreement, without waiving the release granted herein. The foregoing shall not apply to Executive’s bringing to the attention of the EEOC any claims of discrimination. Executive understands that by entering into this
Agreement he will be limiting the availability of certain remedies that he may have against the Company and limiting also his ability to pursue certain claims against the Company. 

10. Non-admission. Nothing contained in this Agreement will be deemed or construed as an admission of wrongdoing or
liability on the part of the Company. 
 11. Governing Law. All matters affecting this Agreement, including the
validity thereof, are to be governed by, and interpreted and construed in accordance with, the laws of the State of California regardless of the law that might be applied under principles of conflicts of laws. 

12. Miscellaneous. This Agreement states the entire agreement between the Executive and the Company with respect to the
subject matter hereof and supersedes and merges all prior negotiations, agreements, and understandings, if any. No modification, release, discharge, or waiver, of any provision of this Agreement shall be of any force or effect unless made in writing
and signed by the Executive and the Company, and specifically identified as a modification, release, or discharge, of this Agreement. If any term, clause, or provision of this Agreement shall for any reason be adjudged invalid, unenforceable, or
void, the same shall not impair or invalidate any of the other provisions of the Agreement, all of which shall be performed in accordance with their respective terms. This Agreement shall inure to the benefit of the successors and assigns of the
Company. 
 The Executive represents that this Agreement, and the release contained in this Agreement, have been given
voluntarily and free from duress or undue influence on the part of any person or entity released by this Agreement, or by any third party. The Executive acknowledges and understands that he has no obligation to enter into this Agreement, but that
the 

  
 A-4

 
Company has no obligation to provide to the Executive the payments and benefits described under Section 10(c) and/or 10(d) of the Employment Agreement if he does not enter into this
Agreement. 
 The Executive has read this Agreement carefully and understands all of its terms. He acknowledges that he has had
the opportunity to discuss this Agreement with his own attorneys prior to signing it, and to make certain that he understands the meaning of the terms and conditions contained in this Agreement and fully understands the content and effect of this
Agreement. In agreeing to sign this Agreement, the Executive acknowledges that he has not relied on any representations or statements, whether oral or written, other than the express statements of this Agreement. 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date(s) set forth below. 

 

									
	THE EXECUTIVE:	 		 	PUMA BIOTECHNOLOGY, INC.
				
	  
	 		 	By:	 	 
	Alan H. Auerbach	 		 	Its:	 	
					
	Dated:	 		 		 	Dated:	 	

  
 A-5Cooperation Agreement

 Exhibit 10cf 
 January 20, 2012 
 G. Mason Morfit 
 ValueAct Capital Master Fund, L.P., by VA Partners I, LLC its General Partner 
 VA Partners I, LLC

 ValueAct Capital Management, L.P., by ValueAct Capital Management, LLC its General Partner 

ValueAct Capital Management, LLC 
 435 Pacific Ave., 4th Floor 
 San Francisco, CA 94133 
 Re: Cooperation Agreement 
 Dear Mason: 

Having considered the request of the Investors (as defined below) that you (“you” or the “Nominee”), an individual
selected by the Investors, be appointed to the board of directors (the “Board”) of C. R. Bard, Inc. (the “Company”), and having received the consent of the Nominee to act as a director of the Company, the Governance
Committee (the “Governance Committee”) of the Board, effective upon the execution and delivery of, and subject to the terms and conditions of, this cooperation agreement, has recommended to the Board and the Board has
(i) increased the size of the Board by one director and elected you as a Class II director of the Company to serve until the 2012 annual meeting of the Company’s shareholders (the “2012 Meeting”), or until your earlier
death, resignation, disqualification or removal and (ii) subject to compliance by the Investor entities that are signatories to this agreement (the “Investors”) and you with this agreement and your continuing to satisfy the
Conditions (as defined in Section 1(b) below), determined to nominate you for election as a director of the Company at the 2012 Meeting. If you are elected by the Company’s shareholders at the 2012 Meeting to serve as a director,
then subject to compliance by the Investors and you with this agreement and your continuing to satisfy the Conditions, you shall serve as a Class II director of the Company until the 2013 annual meeting of the Company’s shareholders (including
any adjournment or postponement thereof) (the “2013 Meeting”). By signing this agreement, the undersigned agree and acknowledge as follows (capitalized terms used in this agreement but not defined have the meanings given to such
terms in Section 7 below): 
  

	1.	Board Representation 

 (a) As a condition to your nomination for election as a director of the Company at the 2012 Meeting, you and the Investor Group shall provide to the Company the information required to be disclosed
for candidates for directors and their Affiliates and Representatives in a proxy statement under the federal securities laws and applicable rules and regulations of The New York Stock Exchange and such other information as reasonably requested by
the Company from time to time with respect to you and the Investor Group. 
 (b) Nominee agrees that, at all
times while serving on the Board, he will: (i) meet all independence and other standards under applicable rules of The New York Stock Exchange and the Securities and Exchange Commission (the “SEC”)
and applicable provisions of the Securities Exchange Act of 1934, as amended (the “Exchange Act”); and (ii) be qualified to serve as a director under the New Jersey Business
Corporation Act, as amended (the foregoing in these clauses (i) and (ii) being referred to as the “Conditions”). Nominee agrees to promptly advise the Chairperson of the
Governance Committee in writing if he ceases to satisfy any of the Conditions. If (i) Nominee ceases to satisfy any of the Conditions or breaches any of his obligations under this Section 1, or (ii) any member of the
Investor Group fails to comply in all material respects with any of the terms of this agreement, in either case upon the request of the Board, Nominee shall promptly deliver his written resignation to the Board. 

(c) At all times while serving as a director, Nominee shall: (i) comply with all policies, procedures, processes, codes, rules,
standards and guidelines applicable to Board members, including the Company’s code of conduct and corporate governance guidelines; and (ii) keep confidential and not publicly disclose discussions and matters considered in meetings of the
Board and Board committees, unless previously disclosed publicly by the Company. 

 (d) If, at any time while Nominee is serving as a director, the members of the Investor
Group, collectively, cease to beneficially own, in the aggregate, at least five percent (5%) of the outstanding Voting Securities (the “Minimum Threshold Resignation”), then upon notice from the Board to the Investors,
(i) the Company’s obligations under the first paragraph of this agreement shall terminate immediately, and (ii) Nominee shall offer to resign from the Board immediately and, if requested by the Governance Committee, the Chairman
of the Board, the lead director of the Board or the Board, he shall promptly deliver his written resignation to the Board. Notwithstanding the foregoing, (x) any derivative, hedging or similar arrangement (including Derivative Instruments) that
has the effect of increasing the voting power or economic interest of the members of the Investor Group in the Company’s Voting Securities shall not be given effect, so that the shares that are subject to such derivative, hedging or
similar arrangement (including Derivative Instruments) shall not be deemed as beneficially owned by the members of the Investor Group for purposes of this Section 1(d) and (y) any share issuances, stock splits, or other programs
instituted by the Company that would have the net effect of reducing or diluting the Investor Group’s interest to below 5% shall not trigger the Minimum Threshold Resignation obligation of this Section 1(d). 

(e) In the event of the termination of employment of Nominee with the Investor Group and/or any Affiliate thereof for any reason,
including death, resignation, disqualification or removal (the “Employment Termination Resignation”), then the Investor Group shall provide prompt notice of such event to the Company and, (i) the Company’s obligations
under the first paragraph of this agreement shall terminate immediately, and (ii) Nominee shall resign from the Board immediately. 
  

	2.	Investor Representations and Warranties 

 The Investors jointly and severally represent and warrant to the Company that: 

(a) Each of the Investors is duly organized, validly existing and in good standing under the laws of its jurisdiction of
organization and has all requisite power and authority to execute and deliver this agreement; this agreement has been duly executed and delivered by each of the Investors and the Nominee; and this agreement constitutes the valid and binding
agreement of each of the Investors and the Nominee, enforceable against each of the Investors and the Nominee in accordance with its terms; 
 (b) as of the date of this agreement: (i) the members of the Investor Group, collectively, beneficially own, in the aggregate, the number of the Company’s common stock, par value $0.25 per
share (“Common Shares”) set forth on Schedule A; (ii) such Common Shares constitutes all of the Voting Securities beneficially owned by the members of the Investor Group; and (iii) no member of the Investor Group,
directly or indirectly (A) owns beneficially or of record any Derivative Instruments, (B) beneficially owns, or has any rights or options, or is party to any proxy, contract, arrangement, agreement or understanding to acquire or vote, any
Common Shares or Derivative Instruments or (C) beneficially owns, or has any rights or options, or is party to any proxy, contract, arrangement, agreement or understanding to acquire any debt securities of the Company; 

(c) as of the date of this agreement, the Nominee satisfies the Conditions, and the Nominee does not have any personal or business
interests that would conflict with his responsibilities and obligations to the Company as a director; and 
 (d) no member
of the Investor Group has taken any action prior to the date hereof that, if taken on or after the date hereof, would violate Section 3 of this agreement. 
  

	3.	Investor Cooperation 

 (a) Each of the Investors agrees that, during the Covered Period, no member of the Investor Group shall, unless specifically requested in writing by a resolution of a majority of the Company’s
directors (not including the Nominee), directly or indirectly, in any manner, alone or in concert with others: 
 (i) acquire,
agree or seek to acquire or make any proposal or offer to acquire, or announce any intention to acquire, beneficially or otherwise, any Voting Securities of the Company or any securities convertible or exchangeable into or exercisable for any Voting
Securities of the Company or any property, asset or business of the 

  
 2 

 
Company (other than securities issued pursuant to a plan established by the Board for members of the Board, a stock split, stock dividend or similar corporate action initiated by the Company with
respect to any securities beneficially owned by the members of the Investor Group on the date of this agreement) if, immediately after such acquisition, the members of the Investor Group, collectively, would, in the aggregate, beneficially own more
than 12.5% of the then outstanding Voting Securities; provided that, notwithstanding the foregoing, any derivative, hedging or similar arrangement (including Derivative Instruments) that has the effect of decreasing the voting power or
economic interest of the members of the Investor Group in the Company’s Voting Securities shall not be given effect, so that the shares that are the subject of such derivative, hedging or similar arrangement (including Derivative Instruments)
shall be deemed as owned by the members of the Investor Group for purposes of this subsection (i); 
 (ii) propose to any
Person, or effect or seek to effect, cause or participate in, assist or facilitate, or take any action, alone or in concert with others, in support of or make any statement with respect to, any take-over bid, tender or exchange offer, amalgamation,
merger, consolidation, acquisition, sale, transfer, scheme, divestiture, arrangement, business combination, recapitalization, reorganization, restructuring, liquidation, dissolution or other extraordinary transaction involving the Company or any of
its subsidiaries or joint ventures or any of their respective securities, businesses or assets (each, an “Extraordinary Transaction”), or tender any Voting Securities of the Company into any such tender or exchange offer or vote any
Voting Securities of the Company in favor of any such Extraordinary Transaction; provided, however, that nothing in this subparagraph (ii) shall prevent the Investor Group from voting in favor of any Extraordinary Transaction that
has been approved or recommended by the Board, or voting against any Extraordinary Transaction that has not been approved and recommended by the Board; 
 (iii) form, join, encourage, influence, advise or in any way participate in any Group with respect to any Voting Securities or otherwise in any manner agree, attempt, seek or propose to deposit any Voting
Securities into any voting trust or subject any Voting Securities to any voting or similar arrangement; 
 (iv) make, or in any
way encourage or participate in any “solicitation” of “proxies” (as such terms are used in the proxy rules of the SEC but without regard to the exclusion set forth in Rule 14a–1(l)(2)(iv) under the Exchange Act) or
consents to vote, or seek to advise, encourage or influence any Person with respect to the voting of, any Voting Securities; 

(v) (A) initiate, propose or otherwise “solicit” (as such terms are used in the proxy rules of the SEC) shareholders of
the Company for the approval of any shareholder proposal or cause or encourage any Person to initiate any such shareholder proposal; (B) seek to call, or request the call of, or call a special meeting of the shareholders of the Company or of
the Board; or (C) seek the written consent of the shareholders of the Company; 
 (vi) seek election or appointment to, or
representation on, or nominate or propose the nomination of any candidate to the Board, other than as set forth in this agreement; or seek the removal of any member of the Board; 

(vii) seek to effect, cause or participate in, assist, facilitate or take any action, alone or in concert with others, in support of:
(A) advising, controlling, changing or influencing, or seeking to advise, control, change or influence, the Board or the management, strategies or policies of the Company, including any plans or proposals to change the number or term of
directors or to fill any existing vacancies on the Board; (B) any material change in the Company’s business or corporate structure; or (C) seeking to have the Company waive, or make amendments or modifications to, (x) the
Company’s Amended and Restated Certificate of Incorporation, as amended, or the Bylaws of the Company, as amended, or (y) other actions or defenses that may impede the acquisition of control of the Company by any Person; 

(viii) (A) other than in a Rule 144 brokers transaction, knowingly sell, transfer or otherwise dispose of any Voting Securities to any
Person who or that is (or will become upon consummation of such sale, transfer or other disposition) a beneficial owner of ten percent (10%) or more of the outstanding Voting Securities; or (B) without the prior written consent of the
Company (acting through the Board), on any single day, sell, transfer or otherwise dispose of more than five percent (5%) of the outstanding Voting Securities through the public markets; 

(ix) (A) request the Company or any of its representatives release any member of the Investor Group from, amend or waive any
provision of this agreement; or (B) otherwise take, or make any public disclosure, announcement or statement with respect to any intention, plan or arrangement to take, any action that is inconsistent with, any provision of this agreement;

  
 3 

 (x) make, or issue or cause to be made or issued, or in any way encourage any other
Person to make or cause to be made, any public disclosure, announcement or statement: (A) in support of any solicitation described in paragraph (iv) or paragraph (v) above (other than solicitations by the Company); (B) in support
of any matter described in paragraph (ii) above; (C) regarding any intent, purpose, plan, action or proposal with respect to the Board, the Company, its management, strategies, policies or affairs or any of its securities or assets or this
agreement, that is inconsistent with the provisions of this agreement, including any intent, purpose, plan or proposal that is conditioned on, or would require waiver, amendment, nullification or invalidation of, any provision of this agreement
or take any action that could require the Company to make any public disclosure relating to such intent, purpose, plan, proposal or condition, or any other matter set forth in this agreement; or (D) that disparages the Company, any of its
directors or officers or any individual who has served as a director or officer of the Company; or 
 (xi) have any
discussions or communications, or enter into any arrangement, understanding or agreements (whether written or oral) with, or encourage, advise, assist, finance or facilitate, any Person in connection with any of the foregoing; make any investment in
or enter into any arrangement with any other Person that engages, or offers or proposes to engage, in any of the foregoing; or otherwise take, or solicit, cause or encourage others to take, any action inconsistent with any of the foregoing.

 (b) Each of the Investors and the Nominee agree with the Company that, at the 2012 Meeting, the Investors shall, and shall
cause each of its Representatives to, vote, or provide its consent with respect to, all of the Common Shares beneficially owned or over which control or direction is exercised by it on the matters furnished by the Company to the Investors on the
date hereof which will be subject to a vote of shareholders of the Company at such meeting in accordance with the recommendation of the Board. 
 (c) Nothing in Section 3 shall limit any actions that may be taken by the Nominee acting solely as a director of the Company consistent with his fiduciary duties as a director of the Company.

  

	4.	Confidentiality; Public Announcements; Securities Filings 

 (a) Concurrently with and as a condition of this agreement, each of the Investors and the Nominee is entering into a confidentiality agreement with the Company in form attached hereto as Exhibit
A (the “Confidentiality Agreement”). 
 (b) Each member of the Investor Group and the Nominee
(i) acknowledges that it has received a copy of the Company’s Business Ethics Policy (the “Business Ethics Policy”) and (ii) agrees that, until expiration of the Covered Period and thereafter for so long as the
Nominee or any member of the Investor Group is in possession of material, non-public information, Nominee shall comply with the Business Ethics Policy, and Nominee and each member of the Investor Group shall comply with applicable federal securities
laws restricting a Person’s ability to purchase, sell, trade or otherwise transfer securities of the Company, and a Person’s ability to communicate material, non-public information to any other Person under circumstances in which it is
reasonably foreseeable that such Person may purchase, sell, trade or otherwise transfer securities of the Company, while in possession of material, non-public information of an issuer.

(c) The Company may in its sole discretion announce the election of Nominee as a director of the Company by means of a press release
in a form reasonably agreeable to the Investors and/or filing with the SEC (the “Disclosure”). The Investors shall promptly, but in no case prior to the date of the filing or other public release of the Disclosure by the
Company so long as such press release or filing is made within two business days of the execution of this agreement, prepare and file an amendment (the “13D Amendment”) to their Schedule 13D with respect to the Company filed with
the SEC on October 29, 2010, as subsequently amended, reporting the entry into this agreement and amending applicable items to conform to its obligations hereunder. The 13D Amendment shall be consistent with the Disclosure and the terms of
this agreement. The Investors and the Investor Affiliates shall provide the Company with reasonable opportunity to review and comment upon the 13D Amendment prior to filing, and shall consider in good faith any changes proposed by the Company.
None of the Nominee, the Investors or the 

  
 4 

 
Investor Affiliates shall (i) issue a press release in connection with this agreement or the actions contemplated hereby or (ii) otherwise make any public statement, disclosure or
announcement with respect to this agreement or the actions contemplated hereby. 
  

	5.	Termination 

(a) This agreement is effective as of the date hereof and shall remain in full force and effect for the period (the “Covered
Period”) commencing on the date hereof and ending on the date that is the earliest of (i) the date that is 10 days following the date that the Company materially breaches its obligations under the first paragraph of this agreement,
provided that such breach has not been cured prior to the expiration of such 10-day period; (ii) the date that is 10 days following the date that the Nominee or any member of the Investor Group materially breaches its obligations under
this agreement upon which the Company may require the resignation of Nominee from the Board, provided that such breach has not been cured prior to the expiration of such 10-day period; (iii) the date immediately following the 2013
Meeting; (iv) the date of the Nominee’s termination of service as a director of the Company, including without limitation pursuant to a Minimum Threshold Resignation or an Employment Termination Resignation; and (v) such other date
established by mutual written agreement of the Company and the Investors. 
 (b) The provisions of
Section 1(b), Section 1(c) , Section 4, this Section 5, Section 6 and Section 7 and Section 8 shall survive the termination of this agreement. No termination
pursuant to Section 5(a) shall relieve any party hereto from liability for any breach of this agreement prior to such termination. 
  

	6.	Specific Performance 

 The parties agree that irreparable damage would occur in the event any of the provisions of this agreement were not performed in accordance with the terms hereof and that the parties are entitled to an
injunction or specific performance: (i) to enforce the terms hereof in addition to any other remedies at law or in equity; and (ii) to require the resignation of the Nominee from the Board commencing on the date that is 10 days following
the date that the Nominee and/or the Investor Group materially breaches its obligations under this agreement, provided that such breach has not been cured prior to the expiration of such 10-day period. Each of the parties hereto agrees to
waive any bonding requirement under any applicable law, in the case any other party seeks to enforce the terms by way of equitable relief. 
  

	7.	Definitions 

 The
following terms, as used in this agreement, have the following meanings: 
 (a) The term “Affiliate” has
the meaning given to such term in Rule 12b-2 promulgated by the SEC under the Exchange Act, and shall include Persons who become Affiliates of any Person after the date of this agreement; 

(b) the terms “beneficial owner” and “beneficially own” have the respective meanings given to such
terms in Rule 13d-3 promulgated by the SEC under the Exchange Act; 
 (c) the term “Derivative Instrument”
means any profits interest, option, warrant, convertible security, stock appreciation right, or similar right with an exercise or conversion privilege or a settlement payment or mechanism at a price related to any class or series of securities of
the Company or with a value derived in whole or in part from the value of any class or series of securities of the Company or any derivative or synthetic arrangement having characteristics of a long position in any class or series of securities of
the Company, whether or not such instrument or right shall be subject to settlement in the underlying class or series of securities of the Company, or otherwise, and any performance-related fees to which a Company shareholder is entitled based,
directly or indirectly, on any increase or decrease in the value of securities of the Company; 
 (d) the term
“Investor Group” means, collectively, each Investor and each Affiliate and Representative of each of the Investors and their Affiliates; 

  
 5 

 (e) the term “Group” means any partnership, limited partnership,
syndicate or other group, including, without limitation, any “group” (within the meaning of Section 13(d)(3) of the Exchange Act); 
 (f) the terms “Person” or “Persons” mean any individual, corporation (including not-for-profit), general or limited partnership, limited liability or unlimited
liability company, joint venture, estate, trust, association, organization or other entity of any kind or nature; 

(g) the term “Representative” means each of the Investors’ and their respective Affiliates’ directors,
officers, partners, members, employees, agents (acting in such capacity), attorneys, advisors, consultants, directly or indirectly controlled investment funds and any Person in which the Investors or their Affiliates and/or such funds beneficially
own and/or exercise control or direction over, directly or indirectly, securities carrying more than fifty percent (50%) of the voting rights of such Person; and 
 (h) the term “Voting Securities” means Common Shares and any other securities of the Company entitled to vote in the election of directors of the Company, or securities convertible
into, or exercisable or exchangeable for Common Shares or such other securities. 
  

	 	8.	Miscellaneous Provisions 

 (a) This agreement shall be binding upon and inure to the benefit of and be enforceable by the parties and their respective successors and assigns; provided, however, the rights and
privileges set forth in this agreement are personal to the Investors and the Nominee and may not be transferred or assigned to any Person, whether by operation of law or otherwise. Nothing in this agreement, whether express or implied, is
intended to or shall confer any rights, benefits or remedies under or by reason of this agreement on any Person other than the parties and their respective successors and permitted assigns. 

(b) This agreement shall be governed and construed in accordance with the laws of the State of New York. The
parties: (i) irrevocably and unconditionally consent and submit to the jurisdiction of the state and federal courts located in the State of New York for purposes of any action, suit or proceeding arising out of or relating to this
agreement; (ii) agree that service of any process, summons, notice or document by U.S. registered mail to the address set forth at the end of this agreement shall be effective service of process for any action, suit or proceeding brought
against them; (iii) irrevocably and unconditionally waive any objection to the laying of venue of any action, suit or proceeding arising out of or relating to this agreement in any state or federal court located in the State of New York; and
(iv) irrevocably and unconditionally waive the right to plead or claim, and irrevocably and unconditionally agree not to plead or claim, that any action, suit or proceeding arising out of or relating to this agreement that is brought in any
state or federal court located in the State of New York has been brought in an inconvenient forum.
 (c) This agreement may
only be amended pursuant to a written agreement executed by all the parties, and no waiver of compliance with any provision or condition of this agreement and no consent provided for in this agreement shall be effective unless evidenced by a written
instrument executed by the party against whom such waiver or consent is to be effective. No failure or delay by a party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise of any right, power or privilege hereunder. 

(d) This agreement, together with the Confidentiality Agreement, constitutes the entire agreement of all the parties and supersedes
any and all prior and contemporaneous agreements, memoranda, arrangements and understandings, both written and oral, between the parties, or any of them, with respect to the subject matter hereof. 

(e) Each of the parties hereto acknowledges that it has been represented by counsel of its choice throughout all negotiations that have
preceded the execution of this agreement, and that it has executed the same with the advice of said counsel. Each party and its counsel cooperated and participated in the drafting and preparation of this agreement and the documents referred to
herein, and any and all drafts relating thereto exchanged among the parties shall be deemed the work product of all of the parties and may not be construed against any party by reason of its drafting or preparation. Accordingly, any rule of law
or any legal decision that would require interpretation of any ambiguities in this agreement against any party that drafted or prepared it is of no application and is hereby expressly waived by each of the parties hereto, and any controversy over
interpretations of this letter agreement shall be decided without regard to events of drafting or preparation. 

  
 6 

 (f) This agreement may be executed in any number of counterparts (including by fax
transmission or e-mail), each of which shall be deemed to be an original, but all of which together shall constitute one binding agreement on the parties, notwithstanding that not all parties are signatories to the same counterpart. The
captions contained in this agreement are for convenience only and shall not affect the construction or interpretation of any provisions of this agreement. 
 *            *            * 

[Remainder of Page Intentionally Left Blank] 

  
 7 

 Please sign and have the Investors sign in the space provided below to acknowledge your and the
Investors’ agreement to the foregoing. 
  

			
	Sincerely yours,
	
	C. R. Bard, Inc.
		
	By:	 	  

	Name:	 	Timothy M. Ring
	Title:	 	Chairman and CEO

 Accepted and agreed as of 
 January 20, 2012: 
  

	
	NOMINEE:
	
	  

	G. Mason Morfit

 INVESTORS: 
 ValueAct Capital Master Fund, L.P., by VA Partners I, LLC its General Partner 
  

			
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 VA Partners I, LLC

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

 ValueAct Capital Management, L.P., by ValueAct Capital Management, LLC its General Partner 

 

			
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 ValueAct Capital Management, LLC

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  
 8 

 Schedule A 
 Common Shares Beneficially Owned by the Investor Group 
 5,872,939 shares 

  
 9 

 Exhibit A 
 January 20, 2012 
 G. Mason Morfit 

ValueAct Capital Master Fund, L.P., by VA Partners I, LLC its General Partner 
 VA Partners I, LLC 
 ValueAct Capital Management, L.P., by ValueAct Capital Management, LLC its
General Partner 
 ValueAct Capital Management, LLC 
 435 Pacific Ave., 4th Floor 
 San Francisco, CA 94133 
 Ladies and Gentlemen: 
 This letter agreement shall be effective concurrently with
the execution of the Cooperation Agreement (the “Cooperation Agreement”), dated as of the date hereof, by and among the Nominee, the Investors and C. R. Bard, Inc., a New Jersey corporation (the
“Company”). Capitalized terms used but not otherwise defined in this letter agreement have the respective meanings given to such terms in the Cooperation Agreement. 

The Investors (each of the foregoing individually without distinction, “you”) have informed the Company that, subject to
the terms of, and in accordance with, this letter agreement and except as otherwise instructed by the Company, the Nominee may, subject to his fiduciary duties under applicable law, disclose to one or more members of the Investor Group confidential,
non-public information regarding the Company and its Affiliates and their respective businesses the Nominee obtains while a member of the Board. You acknowledge and agree that all such information is confidential and proprietary to the Company
and may include strategic, business or financial planning information, financial results, financial projections and forecasts, the thoughts and deliberations of the Board or its committees as a whole or of individual members of the Board or its
committees or members of senior management, advice received by the Board or its committees or members of management of the Company from attorneys, accountants, consultants and other advisors to the Company or the Board or its committees, and other
confidential or proprietary, non-public information the disclosure of which could harm the Company and its shareholders. 
 In
consideration of the Company’s agreements and obligations in the Cooperation Agreement, you and your Affiliates and your and your Affiliates’ Representatives agree to treat any and all information regarding the Company and its Affiliates
and their respective businesses that is given to or received by you or your Representatives by the Company or any of its Representatives or the Nominee (regardless of the manner in which it is furnished, including without limitation in written or
electronic format or orally, gathered by visual inspection or otherwise) (collectively, “Confidential Information”), in accordance with the provisions of this letter agreement, and to take or abstain from taking the other
actions hereinafter set forth. 
 1. The term “Confidential Information” does not include information that
(i) is or has become generally available to the public other than as a result of a direct or indirect disclosure by you or your Representatives in violation of this letter agreement or any other duty or obligation of confidentiality to the
Company or one of its Affiliates, (ii) was within or came into your or any of your Representatives’ possession other than by being furnished to you by the Nominee, or by or on behalf of the Company or one of its Representatives or by or on
behalf of the Nominee; provided that in the case of the immediately foregoing clause (ii), the source of such information was not believed by you at the time of the receipt of such information, after reasonable inquiry of the disclosing
person, to be bound by a confidentiality agreement with or other contractual, legal or fiduciary obligation of confidentiality to the Company or one of its Affiliates with respect to such information at the time the same was disclosed, or
(iii) was independently developed by you or your Representatives without reference to or use of any of the Confidential Information. 
 2. You hereby agree that you and your Affiliates and your respective Representatives will (a) keep the Confidential Information strictly confidential and not disclose any of it except as
permitted below and in the last sentence of Section 3, and (b) not use any of the Confidential Information in relation to any action described in Section 3 or Section 4(b) of the Cooperation Agreement;
provided, however, that you may disclose Confidential Information to your Representatives who are informed by you of the confidential nature of such information and agree to comply with this letter agreement, and you will be
responsible for any violation of this letter agreement by your Representatives as if they were parties hereto. 

  
 10 

 3. If you or any of your Representatives are requested or required by any court or
regulatory authority to disclose any of the Confidential Information, you will (a) immediately notify the Company in writing by facsimile and certified mail, (b) sufficiently in advance of such disclosure to allow the Company a reasonable
opportunity to respond, provide the Company with a list of any Confidential Information you intend to disclose and (c) at all times cooperate with the Company, at the Company’s request and expense, to the extent it may seek to
limit such disclosure, including, if requested, taking all reasonable steps to resist or narrow the scope of such requested or required disclosure and to obtain confidential treatment of any information which could be disclosed. If, in the
absence of a protective order or the receipt of a waiver from the Company in its sole discretion after a request in writing therefor is made by you (such request to be made as soon as reasonably practicable to allow the Company a reasonable amount
of time to respond thereto), you are required by any court or regulatory authority to disclose Confidential Information, you will disclose only that portion of the Confidential Information which you are advised by counsel is legally required and use
your reasonable best efforts to obtain assurances that confidential treatment will be accorded to such Confidential Information. In no event will you or any of your Representatives oppose action by the Company to obtain a protective order or
other relief to prevent the disclosure of the Confidential Information or to obtain reliable assurance that confidential treatment will be afforded the Confidential Information. In the event that you and/or your Representatives shall have
complied in all material respects with the provisions of this paragraph, you and your Representatives shall have no liability hereunder for the disclosure of that Confidential Information which it is required by applicable law to be so disclosed.
Notwithstanding the foregoing, you and your Representatives shall not be subject to the foregoing provisions of this Section 3 in the context of standard requests for information from any governmental authority or self regulatory
organization with regulatory jurisdiction over any such person. 
 4. You acknowledge that (a) none of the Company or
any of its Representatives makes any representation or warranty, express or implied, as to the accuracy or completeness of the Confidential Information, and (b) none of the Company or any of its Representatives shall have any liability to you
or to any of your Representatives relating to or resulting from the use of the Confidential Information or any errors therein or omissions therefrom. 
 5. All Confidential Information shall remain the property of the Company. Neither you nor any of your Representatives shall by virtue of disclosure of and/or your use of any Confidential Information
acquire any rights with respect thereto all of which rights (including all intellectual property rights) shall remain exclusively with the Company. 
 6. You hereby represent and warrant to the Company that this letter agreement has been duly authorized, executed and delivered by you, and is a valid and binding obligation, enforceable against you
in accordance with its terms. 
 7. It is understood and agreed that no failure or delay by the Company in exercising any
right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or future exercise thereof or the exercise of any other right, power or privilege hereunder. 

8. (a) You and your Affiliates and your respective Representatives’ obligations to protect the Company’s Confidential
Information pursuant to this letter agreement shall survive the termination of this agreement and the Cooperation Agreement. 

(b) At any time upon the written request of the Company for any reason, you will promptly deliver to the Company or destroy all
Confidential Information (and all copies thereof) furnished to you, your Affiliates or any of your or their Representatives by or on behalf of the Company; provided, however, that in the event you destroy such Confidential Information, you
shall provide the Company with a certificate of an officer of each Investor certifying such destruction. Notwithstanding the foregoing, you and your Representatives (i) may retain a copy of the Confidential Information in order to comply with
applicable law, regulation or professional standards, or to comply with a bona fide document retention policy, and (ii) to the extent that Confidential Information is electronically stored, such electronically stored Confidential Information
shall be destroyed only to 

  
 11 

 
the extent that it is reasonably practical to do so. Notwithstanding the return of Confidential Information, you, your Affiliates and your and their Representatives will continue to be bound by
the confidentiality and other obligations set forth in this letter agreement. 
 9. You acknowledge that the value of the
Confidential Information to the Company is unique and substantial, but may be impractical or difficult to assess in monetary terms. In the event of an actual or threatened violation of this letter agreement, you expressly consent to the
enforcement of this letter agreement by injunctive relief or specific performance, without proof of actual damages, in addition to any other remedy to which the Company is entitled at law or in equity. Each of the parties hereto
(a) irrevocably waives the right to trial by jury, (b) agrees to waive any bonding requirement under any applicable law, in the case any other party seeks to enforce the terms by way of equitable relief and (c) irrevocably consents to
service of process by first-class certified mail, return receipt requested, postage prepaid, to the address of such party’s principal place of business or as otherwise provided by applicable law. THIS LETTER AGREEMENT SHALL BE GOVERNED IN
ALL RESPECTS, INCLUDING VALIDITY, INTERPRETATION AND EFFECT, BY THE LAWS OF THE STATE OF NEW YORK. 
 10. This letter
agreement contains the entire understanding of the parties with respect to the subject matter hereof and thereof and may be amended only by an agreement in writing executed by the parties hereto. 

11. All notices, consents, requests, instructions, approvals and other communications provided for herein and all legal process
in regard hereto shall be in writing and shall be deemed validly given, made or served, if delivered in person or sent by overnight delivery (providing proof of delivery) to the party at the following addresses (or at such other address for a party
as shall be specified by like notice) on the date of delivery, or if by fax, upon confirmation of receipt: 
  

			
	If to the Company:	 	C. R. Bard, Inc.
		 	730 Central Avenue
		
		 	Murray Hill, NJ 07974
		 	Attention: Office of General Counsel
		
		 	Fax: (908) 277-8025
		
	If to the Nominee, any	 	
	Investor or any Investor Affiliate:	 	 ValueAct Capital
 435
Pacific Ave., 4th Floor

San Francisco, CA 94133
 Attention: General
Counsel

		
		 	Fax: (415) 362-5727

 12. If at any time subsequent to the date hereof, any provision of this letter agreement shall be
held by any court of competent jurisdiction to be illegal, void or unenforceable, such provision shall be of no force and effect, but the illegality or unenforceability of such provision shall have no effect upon the legality or enforceability of
any other provision of this letter agreement. 
 13. This letter agreement may be executed in two or more counterparts
which together shall constitute a single agreement. 
 14. This letter agreement and the rights and obligations herein may
not be assigned or otherwise transferred, in whole or in part, by you without the express written consent of the Company, whether by operation of law or otherwise. 

  
 12 

 Please confirm your agreement with the foregoing by signing and returning one copy of this letter agreement
to the undersigned, whereupon this letter agreement shall become a binding agreement between you and the Company. 
  

			
	Very truly yours,
	
	C. R. Bard, Inc.
		
	By:	 	  

	Name:	 	Timothy M. Ring
	Title:	 	Chairman and CEO

 Accepted and agreed as of 
 January 20, 2012: 
  

	
	NOMINEE:
	
	  

	G. Mason Morfit

 INVESTORS: 
 ValueAct Capital Master Fund, L.P., by VA Partners I, LLC its General Partner 
  

			
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	VA Partners I, LLC
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 ValueAct Capital Management, L.P., by ValueAct Capital Management, LLC its General Partner 

 

			
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	ValueAct Capital Management, LLC
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  
 13

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