Document:

Prepared by MerrillDirect

THE NEWHALL LAND AND FARMING
COMPANY

EMPLOYEE SAVINGS PLAN

AMENDMENT NO. 4

 

             The
Newhall Land and Farming Company Employee Savings Plan (the “Plan”), as
restated in its entirety effective January 1, 1989, and subsequently amended,
is further amended effective as of the dates set forth below, as follows:

             1.          Section 2.04 of the Plan is amended,
effective as of January 1, 2001, to read as follows:

“Accounting
Date shall mean January 1 of each year subsequent to the effective date of
the Plan on January 1, 1980 and each other date or dates as may be
established by the Committee.”

             2.          Subsection 2.12(a) of the Plan is
amended, as of July 1, 2000, to read as follows:

             “(a)       any individual who performs services for a Participating
Company solely as a Leased Employee, independent contractor, consultant or
employee of a third-party employment agency or is classified as such by the
Participating Company for whom such services are performed (whether or not such
classification is upheld upon governmental or judicial review); and”

3.          Section 2.19 of the Plan is amended,
as of January 1, 1997, by striking the definition of  “Highly Paid Employee” and substituting the following:

“Highly
Paid Employee means, effective for Plan Years commencing after January 1, 1996,
and in determining whether an Employee is Highly Compensated for Plan Years
beginning in 1997, an Employee who:

             (a) was a Five Percent Owner at any
time during the year or the preceding year, or

             (b) for the preceding year received
aggregate Remuneration from the Employer in excess of $80,000 (or such greater
amount as the Internal Revenue Service may determine pursuant to Section
414(q)(1) of the Code) and was in the group of Employees consisting of the top
20% of Employees when ranked on the basis of Remuneration paid during the
preceding year.

For
purposes of identifying Highly Paid Employees, the following rules shall apply:

             (I)         For
purposes of determining the number of Employees in the top 20% of Employees by
Remuneration under subsection (b) above, the Committee shall exclude Employees
who: (i) have not completed six (6) months of service; (ii) normally work less
than 17 1/2 hours per week; (iii) normally work during not more than six (6)
months during any year; (iv) have not attained age 21; (v) are included in a
unit of employees covered by a collective bargaining agreement (except to the
extent provided in Treasury Regulations); or (vi) rendered no services to any
Affiliated Company during such year.

             (II)        A former Employee who separates from service (whether
actually or constructively) shall continue to be treated as a Highly Paid
Employee if such Employee was a Highly Paid Employee (i) at any time during the
Plan Year in which his/her Severance Date occurs or (ii) at any time after
attainment of age fifty-five(55).

             (III)       For purposes of this Paragraph, notwithstanding Section 2.13,
the term “Employee” shall exclude any individual who is, at all times during a
Plan Year, a nonresident alien and who receives no earned income (within the
meaning of Section 911(d)(2) of the Code) from an Affiliated Company which
constitutes income from sources within the United States within the meaning of
Section 861(a)(3) of the Code.

             (IV)       In determining whether an Employee is a Highly Paid Employee
for the 1997 Plan Year, the amendments to Section 414(q) of the Code stated
above are treated as having been in effect for years beginning in 1996.”

             4.          Section 2.20 of the Plan is amended,
as of January 1, 1997, by striking subparagraph (d) of the definition of
“Highly Paid Participant.”

             5.          Section 2.22 of the Plan is amended,
as of January 1, 1997, by striking the definition of “Leased Employee” and
substituting in lieu thereof the following:

“Leased
Employee means any person, other than an a common law employee of an
Affiliated Company, who pursuant to an agreement between an Affiliated Company
and any other person has performed services for the Affiliated Company (or for
the Affiliated Company and related persons determined in accordance with
Section 414(n)(6) of the Code) on a substantially full-time basis for a period
of at least one year, and such services are performed under the primary
direction or control of the Affiliated Company.”

             6.          Article II of the Plan is amended, as
of January 1, 1997, by striking Section 2.34, the definition of “Remaining
Participant.”

             7.          Section 2.35 of the Plan is amended,
effective as of January 1, 1998, by adding the following paragraph:

“For
purposes of Section 5.03, for Limitation Years beginning after December 31,
1997, Remuneration paid or made available during such Limitation Year shall
include any elective deferral (as defined in Section 402(g)(3) of the Code),
and any amount which is contributed or deferred by the Employer at the election
of the Employee and which is not includible in the gross income of the Employee
by reason of Sections 125 or 457 of the Code.”

             8.          Section 5.01 is amended, effective as
of January 1, 2001, to read as follows:

“Basic
Employer Contributions. A Participating Company shall contribute to the
Plan on behalf of each Participant who is employed by it at any time during a
payroll period an amount equal to the Basic Employer Contribution elected by
such Participant with respect to his or her Earnings for such payroll period
that are attributable to service for such Participating Company.”

             9.          The introductory phrase in Subsection
5.02(a) is clarified as applied to the determination of eligibility for the
Matching Employer Contribution for Plan Years beginning on and after
January 1, 1995 to read as follows:

“Subject
to subsections (b), (c) and (d), Section 5.03, and Article VI, each
Participating Company shall, with respect to each Participant employed by it
during a payroll period, contribute to the Trust in cash a Matching Employer
Contribution in an amount determined by multiplying (i) the aggregate
amount of Basic Employer Contributions not in excess of 6% of a Participant’s
Earnings actually allocated to such Participant’s Basic Employer Contribution
account for such payroll period by reason of employment with such Participating
Company by (ii) a percentage determined by reference to such Participant’s
years of Seniority Service as of the end of such Plan Year as follows:”

             10.        Subsections 5.03(e) and 5.04(g) shall be
deleted, effective January 1, 2000, and shall have no force or effect with
respect to the Account of a Participant who performs an Hour of Service on or
after January 1, 2000.

             11.        Effective January 1, 1989, a new
Subsection 5.06(c) shall be added to clarify the treatment of Rollover
Contributions prior to an Eligible Employee’s becoming a Participant as
provided in Article III to read as follows:

             “(c)       An Eligible Employee who makes a Rollover
Contribution shall become a Participant as of the date of such contribution
even if he or she had not previously become a Participant.  Such an Eligible Employee shall become a
Participant only for the purposes of such Rollover Contribution and shall not
be eligible to share in any Company contributions until he or she becomes a
Participant in accordance with Section 3.01.”

             12.        Article VI of the Plan is amended,
effective as of January 1, 1997, by substituting “non-Highly Paid Participant”
for “Remaining Participant” wherever the latter appears in Article VI.

             13.        Section 6.01(a) of the Plan is amended
in its entirety, effective as of January 1, 1998, to read as follows:

             “(a)       With respect to any Plan Year, the Actual Deferral Percentage
(as defined in subsection (b)) of the group consisting of all Highly Paid
Participants for such Plan Year shall not exceed the greater of:

             (1)         125
percent of the prior year’s Actual Deferral Percentage for the group of all
non-Highly Paid Employee for the prior Plan Year.

             (2)         The
lesser of: (i) 200 percent of the prior year’s Actual Deferral Percentage for
the group of all non-Highly Paid Participant for the prior Plan Year; or (ii)
the prior year’s Actual Deferral Percentage for the group of all non-Highly
Paid Participants for the prior Plan Year plus two (2) percentage points.

Notwithstanding
the foregoing, the Employer has the right to elect and amend the Plan to use
current year data for determining the deferral percentage for all non-Highly
Paid Participants.”

             14.        Section 6.02(b) of the Plan is amended
in its entirety, effective as of January 1, 1997, to read as follows:

“For
Plan Years commencing on or after January 1, 1997, Excess Contributions are
allocated to the Highly Paid Participants with the largest dollar amount of
Basic Employer Contributions taken into account in Section 6.01(a) above, for
the year in which the Excess Contributions arose, beginning with the Highly
Paid Participants with the largest dollar amount of such Basic Employer
Contributions and continuing in descending order until all the Excess
Contributions have been allocated.  For
purposes of the preceding sentence, the “largest amount” is determined after
distribution of any Excess Contributions.”

             15.        Section 6.03(a) of the Plan is amended
in its entirety, as of January 1, 1998, to read as follows:

             “(a)       With respect to any Plan Year, the Contribution Percentage (as
defined in subsection (b)) of the group consisting of all Highly Paid
Participants for such Plan Year shall not exceed the greater of:

             (1)         125
percent of the prior year’s Contribution Percentage for the group of all
non-Highly Paid Participants for the prior Plan Year.

             (2)         The
lesser of: (i) 200 percent of the prior year’s Contribution Percentage for the
group of all non-Highly Paid Participants for the prior Plan Year; or (ii) the
prior year’s Contribution Percentage for the group of all non-Highly Paid
Participants for the prior Plan Year plus two (2) percentage points.

Notwithstanding
the foregoing, the Employer has the right to elect and amend the Plan to use
current year data for determining the contribution percentage for all non-Highly
Paid Participants.”

             16.        Section 6.04(b) of the Plan is amended,
effective as of January 1, 1997, by adding the following paragraph:

“For
Plan Years commencing on or after January 1, 1997, Excess Aggregate
Contributions are allocated to the Highly Paid Participants with the largest
dollar amount of Matching Contributions taken into account in Section 6.03(a)
above, for the year in which the Excess Aggregate Contributions arose,
beginning with the Highly Paid Participant with the largest dollar amount of
such Matching Contributions and continuing in descending order until all the
Excess Aggregate Contributions have been allocated.  For purposes of the preceding sentence, the “largest amount” is
determined after distribution of any, Excess Aggregate Contributions.”

             17.        Article VI of the Plan is amended,
effective as of January 1, 1998, by striking Section 6.05.

             18.        Section 6.06 of the Plan is amended,
effective as of January 1, 1997, by striking Subsection (d).

             19.        Section 6.07(a) of the Plan is amended in
its entirety, effective as of January 1, 1998, to read as follows:

             “(a)       If both the Actual Deferral Percentage and the Contribution
Percentage do not satisfy the basic limitations set forth in Sections
6.01(a)(1) and 6.03(a)(1) and one or more Highly Paid Participants are eligible
to have Basic Employer Contributions made on their behalf and to have Matching
Contributions made on their behalf, then the sum of the Actual Deferral
Percentages of Highly Paid Participants plus the sum of the Contribution Percentages
of Highly Paid Participants shall not exceed the greater of:

             (1)         The
sum of: (i) 125 percent of the greater of the prior year’s Actual Deferral
Percentage or Actual Contribution Percentage for the group of all non-Highly
Paid Participants for the prior Plan Year, plus (ii) two percentage points plus
the lesser of the prior year’s Actual Deferral Percentage or Actual
Contribution Percentage for the group of all non-Highly Paid Participants for
the prior Plan Year.

             (2)         The
sum of: (i) 125 percent of the lesser of the prior year’s Actual Deferral
Percentage or Actual Contribution Percentage for the group of all non-Highly
Paid Participants for the prior Plan Year, plus (ii) two percentage points plus
the greater of the prior year’s Actual Deferral Percentage or Actual
Contribution Percentage for the group of all non-Highly Paid Participants for
the prior Plan Year.

Notwithstanding
the foregoing, the Employer has the right to elect and amend the Plan to use
current year data for determining the deferral or contribution percentage for
all non-Highly Paid Participants.”

             20.        The second sentence of Section 7.02
shall be amended, effective as of January 1, 2001, to read as
follows:

“Participants
may elect to invest amounts held in their Accounts in shares of a fund
consisting of cash and Depositary Units (“Newhall Fund”), consistent with the
investment policy implemented by the Committee pursuant to its discretionary
authority to administer and interpret the Plan.”

             21.        The last sentence of Section 7.03(a)
shall be amended, effective as of January 1, 2001, to read as
follows:

“Such
designation shall become effective as soon as practicable following receipt of
the Participant’s election by the Committee or its delegate.”

             22.        Section 7.03(b) shall be amended,
effective January 1, 2001, to read as follows:

“As
of each Accounting Date, a Participant may elect to transfer a portion of his
or her existing funds into the Newhall Fund consistent with the investment
policy and procedures implemented by the Committee, provided the aggregate
value of his or her Accounts invested in the Newhall Fund does not exceed 30%
of the value of his or her Accounts.  A
transfer that exceeds the percentage limitation shall be reduced pro rata
between the originating investment funds. 
The election provided for in the preceding sentence shall be effective
as soon as practicable following receipt of the Participant’s election form by
the Committee or its delegate.

             23.        The second sentence of Section 7.09
shall be amended, effective July 8, 1997, to read as follows:

“Each such Investment Manager must be a person (i)
who has the power to manage, acquire or dispose of any assets of the Plan, (ii)
who (I) is registered as an investment adviser under the Investment Advisers
Act of 1940 or any successor statute (“the Act”), (II) is not registered as an
investment adviser under the Act by reason of paragraph (1) of Section 203A(2)
of the Act, but is registered as an investment advisor under the laws of the
state (referred to in paragraph (1) of Section 203A of the Act) in which it
maintains its principal office and place of business, and, at the time the
fiduciary last filed the registration form most recently filed by the fiduciary
with such state in order to maintain the fiduciary’s registration under the
laws of such state, also filed a copy of such form with the Secretary of Labor,
(III) is a bank as defined in that Act, or (IV) is an insurance company
qualified to manage, acquire or dispose of any assets of the Plan under the
laws of more than one state, and (iii) has acknowledged in writing that he/she
is a fiduciary with respect to the Plan.”

             24.        Subparagraph 9.02(b)(1)(iii) of the Plan
is amended in its entirety, effective as of January 1, 1997, to read
as follows:

“Payment
of tuition, related educational fees, and room and board expenses, for the next
12 months of post-secondary education for the Participant, or the Participant’s
spouse, children, or dependents.”

             25.        The first sentence of Section 9.04 is
amended, effective as of January 1, 2001 to read as follows:

Upon
approval of his or her application by the Committee (in accordance with the
procedure and criteria set forth in subsection (a)), a Participant may borrow
from the Trust an amount as specified in subsection (b), upon the terms and
conditions set forth in subsection (d).

             26.        The first sentence of Subsection
11.01(c) is amended, effective August 1, 2001, to read as follows:

Notwithstanding
subsection (b), a Participant may elect in writing at any time following his or
her termination of employment to receive a distribution of his or her entire
Vested Value in a lump sum provided that such distribution occurs not more than
90 days following such Participant’s election.

             27.        Effective August 5, 1997, a new
Subsection 14.02(g) shall be added to read as follows:

             “(g)      The prohibition set forth in subsection (a) shall not apply to
an offset to a Participant’s Account against an amount that the Participant is
ordered or required to pay the Plan with respect to a judgment, order or decree
issued, or a settlement entered into, on or after August 5, 1997 in accordance
with Sections 401(a)(13)(C) and (D) of the Code.”

             28.        Effective January 1, 1999, the following
shall be added to the end of Paragraph 14.06(b)(1):

“and
any hardship withdrawal pursuant to Section 9.02.”

             29.        Effective December 12, 1994, a new
Section 14.08 shall be added to read as follows:

“USERRA
Compliance.  Notwithstanding any
provision of this Plan to the contrary, contributions, benefits and service
credit with respect to qualified military service shall be provided in
accordance with Section 414(u) of the Code.”

             30.        Except as modified by this Amendment No.
4, all the terms and provisions of the Plan (as previously amended) shall
continue in full force and effect.

                           IN
WITNESS WHEREOF, Newhall Management Corporation, managing general partner of Newhall
Management Limited Partnership, managing general partner of The Newhall Land
and Farming Company, a California limited partnership has caused this Amendment
No. 4 to be executed on behalf of such partnership by its duly authorized
officer as of this 18th day of July, 2001.

	 	THE
  NEWHALL LAND AND FARMING COMPANY (A CALIFORNIA LIMITED PARTNERSHIP)
	 	 
	 	By:	NEWHALL MANAGEMENT LIMITED PARTNERSHIP,
	 	 	MANAGING GENERAL PARTNER
	 	 	 
	 	By:	NEWHALL MANAGEMENT CORPORATION,
	 	 	MANAGING GENERAL PARTNER
	 	 	 
	 	By:	/s/ Trude A. Tsujimoto

	 	Title:	SecretaryPrepared by MerrillDirect

Exhibit 10.1

[**] The confidential portion has been omitted and filed separately with
the Securities and Exchange Commission.

VERSICOR MANUFACTURING, DEVELOPMENT

AND SUPPLY AGREEMENT

             This
Manufacturing, Development and Supply Agreement (the “Agreement”) is
entered into this 25th day of June, 2001, and effective December 11,  2000 by and between Abbott Laboratories, an Illinois
corporation having a principal place of business at 100 Abbott Park Road,
Abbott Park, Illinois  60064-3500
(“Abbott”), and Versicor, Inc., a
Delaware corporation, having a principal place of business at 34790 Ardentech
Court, Freemont California 94555 (“Versicor”).

             WHEREAS,
Eli Lilly Industries, Inc. is the owner or licensee of certain technology and
patent rights regarding ECBN-HCl (as defined below) and API (as defined below),
and the manufacturing processes relating thereto;

             WHEREAS,
Lilly has granted to Versicor a worldwide license to develop, manufacture and
sell an injectable form of API; and

             WHEREAS,
Versicor will file for approval with the United States Food and Drug
Administration (and its foreign equivalents) (the “FDA”), a New Drug
Application (and its foreign equivalents) (an “NDA”), and Investigational New
Drug Applications (“INDs”) for certain formulations containing API, (as defined
below); and

             WHEREAS,
Versicor has certain process information relating to the synthesis of ECBN-HCl
(as defined below) and API; and

             WHEREAS, Abbott possesses process engineering capabilities
and operates process development facilities, which include small scale
production and pilot plants, as well as large scale facilities for manufacture
of commercial quantities of certain ECBN-HCl and API; and

             WHEREAS,
the parties desire to have Abbott evaluate Versicor’s process information and
to scale-up and adapt the current manufacturing process for the preparation of
ECBN-HCl and API licensed to Versicor by Lilly to Abbott facilities; and

             WHEREAS,
Abbott desires to manufacture for Versicor developmental, clinical and
commercial quantities of ECBN-HCl and API and Versicor desires to purchase from
Abbott such quantities.

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

1.          Definitions

As
used in this Agreement, the following words and phrases shall have the
following meanings:

             1.1        “Abbott
Know-How” means all non-patented technical data, processing
information, drawings, documentation, analytical and regulatory information and
other information, including all improvements thereto, not included in Abbott
Patent Rights, as defined below, covering manufacturing and process and
ECBN-HCl and API development operations relating to the manufacture of ECBN-HCl
and API according to the process developed hereunder by Abbott for Versicor,
that is owned by Abbott, or licensed to Abbott, with the right to sublicense,
as of the Effective Date, as defined below, or generated or acquired by Abbott
during the term of this Agreement.

             1.2        “Abbott
Patent Rights” means United States and foreign patents and patent
applications, including divisions, continuations, continuations-in-part,
additions, renewals, extensions, re-examinations and reissues of all such
patents and patent applications, all as are owned by Abbott, or licensed to
Abbott, as of the Effective Date, with the right to sublicense, claiming
manufacturing and/or process development operations relating to the manufacture
of ECBN-HCl and API according to the process adapted hereunder by Abbott for Versicor.

             1.3        “Affiliate” of a party hereto means any
entity that controls, is controlled by, or is under common control with such
party.  For purposes of this definition,
a party shall be deemed to control another entity if it owns or controls,
directly or indirectly, at least fifty percent (50%) of the voting equity of
the other entity (or other comparable ownership interest for an entity other
than a corporation).

             1.4        “API”, “LY303366”
or “VER002” means the bulk form of
the final active pharmaceutical ingredient, Anidulafungin, which is issued as a
drug for Candidiasis, Aspergillosis and other fungal infections, as more fully
described in Exhibit A.

             1.5        “cGMP” means the FDA’s current good
manufacturing practices for drug products, as specified in the Code of Federal
Regulations and FDA’s guidance documents, and all successor regulations, orders
and guidance documents thereto.

             1.6        “CMC” means the Chemistry and Manufacturing
Controls (or its foreign equivalents) filed with the FDA in support of the  NDA, IND or DMF.

             1.7        “Confidential Information” means all
information, including, but not limited to, Versicor Know-How and Abbott
Know-How disclosed pursuant to this Agreement in writing (or all information
disclosed orally, visually, in writing and/or in another tangible form, except
any portion thereof that:

	 	(a)	 	is known to the
  recipient, as evidenced by its written records before receipt thereof under
  this Agreement;
	 	 	 	 
	 	(b)	 	is disclosed to the
  recipient without restriction after acceptance of this Agreement by a third
  person who has the right to make such disclosure;
	 	 	 	 
	 	     (c )	 	is or becomes part of the public domain through
  no fault of the recipient;  or
	 	 	 	 
	 	(d)	 	is independently
  developed by or for the recipient by individuals or entities that have not
  had access to Confidential Information, as evidenced by its written records.

             1.8        “Contract Year” shall mean [**].

             1.9        “DMF” means the Drug Master File filed with
the FDA in support of the NDA .

             1.10       “ECBN-HCl” means
the bulk form intermediate Echinocandin B Nucleus hydrochloride used in the
production of API as more fully described in Exhibit B.

             1.11      “ECBN-HCl Specifications”
and/or  “API Specifications” (hereinafter collectively referred to as
the “Specifications”) means the
written specifications for API and the ECBN-HCl.  The API Specifications are set forth in Exhibit C as of the date
hereof.  The ECBN-HCl Specifications
shall be added to Exhibit C of this Agreement at a later date, upon their
approval in writing by both parties. 
The Specifications may be modified from time to time pursuant to Section
7.2 of this Agreement, by written agreement of the parties.  Neither the addition of the ECBN-HCl
Specifications, or any modification to the Specifications, shall require a
formal amendment to this Agreement.

             1.12      “Effective Date”
means December 11, 2000.

             1.13      “EMEA” shall mean the European Medicine Evaluation Agency, or
any successor entity thereto.

             1.14      “FDA” means the
United States Food and Drug Administration (or its foreign equivalents), or any
successor entity thereto.

             1.15      “IND” means an
Investigational New Drug Application(or
its foreign equivalent) filed with the FDA.

             1.16      “Launch Date”
means the date on which the first commercial sale of Product is made in the
Territory by Versicor.

             1.17      “NDA” means the New Drug Application (or its foreign
equivalent) filed with or to be filed by Versicor with the FDA, seeking
authorization to market Product in the Territory.

             1.18      “Product” means any finished pharmaceutical product containing
API as its active ingredient.

             1.19      “Project” means a
multi-stage project to adapt the process for the manufacture of ECBN-HCl and
API.

             1.20      “Proposal” means
the description of the Project, as set forth in Exhibit D.

             1.21      “Regulatory Filings” means the governmental filings required to
obtain approval to market Product in a given country, including, but not
limited to, Product registration(s) and marketing approval(s), as applicable,
in each country.

             1.22      “Regulatory Authorities”
means the FDA, the EMEA, or any comparable national or territorial regulatory
entity.

             1.23      “Stability Protocol”
means the document created by Abbott personnel and reviewed by Versicor, or any
of its CMC consultants that controls the details of collection and analysis of
samples by the Quality Control group of Abbott.

             1.24      “Territory”  means the world.

             1.25      “Versicor Know-How”
means all non-patented technical data, processing information, drawings,
documentation, analytical and regulatory information, oral data and other
information, including all improvements thereto, not included in Versicor
Patent Rights, as defined below, relating to the manufacture, use or sale of
ECBN-HCl or API that is owned by Versicor, or licensed to Versicor, with the
right to sublicense, as of the Effective Date, or generated or acquired by
Versicor during the term of this Agreement.

             1.26      “Versicor Patent Rights”
means United States and foreign patents and patent applications, including
divisions, continuations, continuations-in-part, additions, renewals,
extensions, re-examinations and reissues of all such patents and patent
applications, all as are owned by Versicor, or licensed to Versicor, with the
right to sublicense, claiming ECBN-HCl and API, and under which Abbott would
need a license or sublicense to lawfully manufacture ECBN-HCl and API for
Versicor under this Agreement.

2.          ECBN-HCl
and API Development Project.

             Promptly after the Effective Date,
Abbott shall undertake the Project.  The
Project shall consist of research and development activities described in the Proposal
in accordance with Exhibit D.  Abbott
shall use its reasonable best efforts in performing its research and
development activities hereunder, but Versicor understands that, because the
Project involves research from which the results are inherently uncertain,
Abbott cannot and does not make any representation, warranty or guarantee of
any kind that the Project will result in a commercially-viable process.

3.          Abbott’s
Research and Development Activities.

             3.1        Abbott’s Activities.  Abbott shall use its reasonable best efforts
to conduct and perform certain activities including, but not limited, to the
following:

	 	      a.	Source raw materials
  for use in manufacturing ECBN-HCl and API;
	 	 	 
	 	      b.	Chemically synthesize
  the ECBN-HCl to form the API;
	 	 	 
	 	      c.	Perform pilot scale
  evaluation of Versicor’s manufacturing process;
	 	 	 
	 	      d.	Adapt Versicor’s
  manufacturing process to Abbott’s equipment and systems;
	 	 	 
	 	      e.	Develop process
  parameters to manufacture ECBN-HCl and API in Abbott’s manufacturing
  facility;
	 	 	 
	 	      f.	Prepare suitable
  manufacturing instructions and manufacturing controls for inclusion in
  Regulatory Filings;
	 	 	 
	 	      g.	Provide appropriate
  Regulatory Authorities with letters of authorization referencing Abbott's DMF
  and containing process validation data, batch documents and other data
  required to support Regulatory Filings and to provide timely notice to
  Versicor of any significant changes in Abbott’s process development and
  production activities (whether or not referred to herein) to enable Versicor
  to amend the appropriate Regulatory Filings and to assist Versicor in
  responding to questions from Regulatory Authorities concerning the ECBN-HCl
  and API;
	 	 	 
	 	      h.	Conduct material
  contact and cleaning validation studies, engineering and validation runs,
  process validation studies, and preparing process justification and
  validation summary reports, in a timely manner, to pass FDA pre-approval and
  other appropriate Regulatory Authority inspections to support manufacture of
  the ECBN-HCl and API in the Abbott manufacturing facility, and either (i)
  provide Versicor with copies of such reports and studies, in a timely manner
  to enable Versicor to make all appropriate Regulatory Filings, or (ii) allow
  Versicor to refer to Abbott’s Type II DMF containing such information and
  permitting Versicor to have access to such documents;
	 	 	 
	 	      i.	Permit Versicor to
  conduct all necessary cGMP and quality assurance reviews of Abbott facilities
  and documentation in accordance with Section 8.4 hereof, including review and
  receipt of copies of Abbott manufacturing instructions (both prior to and
  after the manufacturing process), and to provide notice to Versicor so as to
  permit Versicor to have a representative in Abbott’s manufacturing plant at
  the time of critical operations upon the mutual agreement of the parties,
  which consent by Abbott shall not be unreasonably withheld and at Versicor’s
  cost;
	 	 	 
	 	      j.	Permit Versicor to use
  and access Abbott’s data and development reports, including, but not limited
  to, the DMF and compounds as they relate solely to the manufacture of
  ECBN-HCl and API;
	 	 	 
	 	      k.	Provide Versicor with
  acceptable environmental impact statements for inclusion with Regulatory
  Filings, if required;
	 	 	 
	 	      l.	Provide Versicor with
  appropriate pilot and commercial scale batch record manufacturing
  documentation for Regulatory Filings;
	 	 	 
	 	      m.	Conduct all stability
  testing on ECBN-HCl and/or API and compile data for Regulatory Filings;
	 	 	 
	 	      n.	Prepare and administer
  the FDA pre-approval inspection; and
	 	 	 
	 	      o.	Manufacture
  development supplies, clinical supplies, stability supplies and process
  validation batches of ECBN-HCl and/or API in accordance with current cGMPs
  and pursuant to protocols to which the parties shall mutually agree.

4.          Versicor’s
Research and Development Activities.

             4.1        Versicor’s Activities.  Versicor shall use its reasonable best
efforts to conduct and perform research and development activities, including
the following:

	 	 	      a.	Provide Abbott with
  applicable and available analytical methods for raw materials, in-process
  tests and manufacture of ECBN-HCl and/or API and all available reference
  materials;
	 	 	 	 
	 	 	      b.	Provide Abbott with technical data on ECBN-HCl
  and/or API that includes, but is not limited to, the following:  (i) material safety data sheets with
  environmental and safety information, and (ii) additional detailed data, if
  necessary, to define potential hazards and establish employee exposure levels;
	 	 	 	 
	 	 	      c.	Provide Abbott with copies of Regulatory Filings
  as necessary for Abbott to obtain regulatory pre-inspection approval;
	 	 	 	 
	 	 	      d.	Maintain a stability program for, and retain
  samples of, the ECBN-HCl and/or API; and
	 	 	 	 
	 	      e.	Provide Abbott with such additional information
  as Abbott may reasonablyrequest, including but not limited to:  process, product, and safety/toxicity  information.
				

5.          Payment for Abbott’s Development Efforts

             5.1        Research and Development Fee.  In consideration of select activities that
Abbott shall perform under Articles 3 and 4 hereof, Versicor shall pay Abbott a
non-refundable research and development fee of [**] U.S. Dollars
(U.S. $[**]).  In the event that Abbott
does not receive complete, validated reference standards in Abbott specified
amounts from Eli Lilly or other third parties, and it becomes necessary for
Abbott to perform additional research and development, Versicor shall pay to
Abbott an amount, not to exceed [**] U.S. Dollars (U.S. $[**]) as set
forth on Exhibit D.  This “not to
exceed” amount is currently reflected in Exhibit E.  The total research and development fees charged to Versicor under
this Agreement shall not exceed [**] U.S. Dollars (U.S. $[**]), excluding
all raw materials other than [**] and additional charges, if any, incurred
pursuant to Sections 5.2 and 5.3 below. 
Unless instructed by Versicor, the total fees to be paid by Versicor
under Exhibit E in Contract Years [**] shall not exceed the amounts set forth
therein.  If reference standard
production fees are incurred in [**], Abbott shall adjust other fees
accordingly to assure that the total annual charges do not exceed the total
annual charges set forth in Exhibit E. 
The parties shall agree to any additional changes in the research and
development scope and commercial production activities that are not covered
herein.  The research and development
fee shall be paid to Abbott in accordance with Exhibit E.

             5.2        Changes in Project Scope.  If changes occur in the Project or Specifications,
or if technical difficulties require that Abbott perform either additional work
or repeat work, unrelated to Abbott’s fault or negligence, or if Abbott
reclassifies the ECBN-HC1 or ABI, or if the ECBN-HC1 or ABI is found to be a
skin sensitizor dictating specific containment necessary for manufacturing,
Abbott shall provide Versicor with new or revised activities and price
estimates for such work.  The current
Abbott drug classification is Level 2 based on the toxicology information
provided by Lilly.  If Versicor approves
such estimates and activities, Abbott shall perform such work and shall invoice
Versicor for such work.  Versicor shall
remit payment on such invoice within [**] of receipt of such invoice.  Reimbursement for such additional work shall
be at the rate of [**] U.S. Dollars (U.S. $[**]) per hour per person, plus
out-of-pocket costs for reasonable travel and sustenance, materials and
supplies.

             5.3        Additional Costs.  Versicor shall pay Abbott for its direct
costs pre-approved by Versicor associated with any FDA filing by Abbott
requested by Versicor including but not limited to the filing of a CMC or CMC
amendment, in support of Versicor’s FDA filing with respect to ECBN-HCl, API
and/or Product.  Versicor also shall pay
Abbott’s direct costs pre-approved by Versicor for any work requested by
Versicor to produce and assemble documentation for Productregistrations outside the United States.

6.          Pilot Scale and Clinical Supplies.

	 	      6.1	Year
  [**] Clinical Supplies.
	 	 	 
	 	      a.	API.  Abbott
  shall provide to Versicor [**] pilot scale lots of API, with each lot
  consisting of [**] to [**] of API, using ECBN-HCl provided by Versicor.
	 	 	 
	 	      b.	ECBN-HCl.  Abbott
  shall provide to Versicor [**] cGMP lots of ECBN-HCl with each lot consisting
  of enough material to prepare [**] lots of approximately [**]  of API. 
  Versicor shall notify Abbott regarding any alteration of the clinical
  schedule and ECBN-HCl and API amounts needed.

             6.2        Revisions to Schedule.  If necessary, a revised pilot scale and
clinical development schedule will be mutually negotiated by the parties.  In the event that there is a change in the
pilot scale and clinical development schedule that has not been communicated by
Versicor to Abbott upon at least [**] prior written notice, the parties shall
mutually agree to an allocation of the costs associated with revisions to such
schedule.

7.          Manufacture
and Commercial Supply of ECBN-HCl and API.

             7.1        Purchase
and Sale of ECBN-HCl and API.  Pursuant to the terms
and conditions of this Agreement, Abbott shall manufacture, sell and deliver
ECBN-HCl and API exclusively to Versicor and, Versicor may but shall not be
obligated to purchase from Abbott any of its requirements of ECBN-HCl and
API(other than the purchase of approximately [**] of commercial validation
materials as provided in Section 5.1 and Exhibit E); provided, however, from
and after the date the parties mutually agree on an acceptable price for
commercial supplies of API, Versicor shall purchase from Abbott, at an amount
not to exceed such price, a minimum of [**] of its commercial requirements of
ECBN-HCl and API in the Territory.  In
the event that Abbott is unable to deliver a scheduled shipment of ECBN-HCl or
API for any reason and is unable to cure such failure by delivering to Versicor
the scheduled shipment of ECBN-HCl and API within [**] of such scheduled
shipment date, Versicor shall have the right to purchase its remaining ECBN-HCl
and API requirements in the Territory from secondary sources until Abbott becomes
able to meet said requirements. 
Versicor may elect to designate, qualify and enable a secondary supplier
at any time during this Agreement.

             7.2        Modification
of Specifications.  If the Specifications are modified by
Versicor hereunder, or the Specifications must be modified by requirement of
the FDA or other regulatory agency, or a process change would be required under
the CMC, or other applicable governmental application, and such modification or
process change increases or decreases Abbott's cost to manufacture ECBN-HCl or
API, Abbott shall submit to Versicor a revised price for either the current or
future stage of development or ECBN-HCl or API that reflects such cost increase
or decrease.  Abbott and Versicor shall
mutually agree on the cost allocation of such change.  In the event the parties are unable to agree on such cost
allocation, either party may seek to have the dispute resolved in accordance
with the provisions of Section 18.2 hereof. 
If such modification results in the requirement to reprocess and/or
retest previously manufactured and otherwise acceptable ECBN-HCl or API, any
additional costs incurred by Abbott in such reprocessing and/or retesting shall
be paid by Versicor upon submission by Abbott of documentation and justification
of such costs.

             7.3        Modification
of ECBN-HCl or API Process. 
Process changes by Abbott that effect Versicor’s ECBN-HCl or API DMF or
CMC shall not occur without prior written permission of Versicor.

             7.4        Validation
Production Runs.  Abbott
will make [**] production runs of API starting from the initial fermentation,
and ending with the chemical synthesis steps (“Validation Production
Runs).   The Validation Production Runs
will be conducted at the desired and agreed upon production batch size and may
be used for validation and/or commercial market supply needs as determined by
the parties.

	 	      a.	The Validation
  Production Runs will be conducted at the Abbott facility in North Chicago and
  directed by an accompanying Protocol. 
  A completed, signed copy of the Protocol which will be generated by
  Abbott personnel and approved in writing by Versicor will be forwarded to
  Versicor for inclusion in the NDA.
	 	 	 
	 	      b.	The Validation
  Production Runs produced by Abbott will meet API Specifications and an Abbott
  Certificate of Analysis will be generated for each lot.
	 	 	 
	 	      c.	At the conclusion
  of the Validation Production Runs a validation report will be generated by
  Abbott.  A copy of this report will be
  signed, dated and sent to Versicor for inclusion in the NDA.
	 	 	 
	 	      d.	Abbott shall ship
  the API generated from the Validation Production Runs to a Versicor specified
  drug Product formulation facility upon written notice by Versicor and
  completion by Abbott.
	 	 	 
	 	      e.	EBC and API
  produced by Abbott under this Section 7.4 will be placed on stability at an
  appropriate location under real time and accelerated conditions.

8.          Manufacture
of ECBN-HCl and Bulk Drug Substance API.

             8.1        ECBN-HCl and API Title and Shipment.  Any ECBN-HCl and API manufactured by Abbott
pursuant to this Agreement shall be shipped F.O.B. Abbott’s manufacturing
facility.  Title and risk of loss shall
pass to Versicor upon delivery of ECBN-HCl and/or API to the carrier.  Shipment shall be via a carrier designated
by Versicor.  All shipment costs shall
be borne by Versicor.

             8.2        ECBN-HCl and API Storage.  Versicor shall pay Abbott at a rate of [**]
U.S. Dollars (U.S.$[**]) per month for any ECBN-HCl and/or API storage costs
incurred by Abbott in excess of [**] after manufacture, provided that such
ECBN-HCl or API was forecasted by Versicor.

             8.3        Quality Control.  Abbott shall apply its quality control
procedures and in-plant quality control checks on the manufacture of ECBN-HCl
or API for Versicor in the same manner as Abbott applies such procedures and
checks to material of a similar nature manufactured for sale by Abbott.  In addition, Abbott will test and release
ECBN-HCl and/or API to Versicor in accordance with the Specifications described
in Exhibit C.

             8.4        Audits. Upon Abbott’s written approval,
which approval shall not be unreasonably withheld or delayed, Versicor shall
have the right, upon [**] prior written notice to Abbott, to conduct during
normal business hours a quality assurance audit and inspection of Abbott’s
records and ECBN-HCl and/or API facilities relating to the manufacture of
ECBN-HCl and/or API, and to perform follow-up audits as reasonably
necessary.  Such audits and inspections
may be conducted from time to time on a reasonable basis prior to ECBN-HCl
and/or API production of the first commercial API order placed by Versicor and
thereafter once each Contract Year.  The
duration of such audits shall not exceed [**] and such audits shall be
performed by no more than [**], unless Versicor reasonably believes that a
longer audit or additional personnel are necessary and provides its reasons for
such belief to Abbott in writing.  If
Versicor wishes to perform audits more often than once per year or over a
period in excess of [**], Versicor shall pay Abbott [**] U.S. Dollars (U.S.
$[**]) per additional audit day. 
Notwithstanding the foregoing, in the event that an audit is required by
Versicor due to quality issues that arise during any Contract Year, Versicor
shall be entitled to conduct such audit free of charge.  If more than [**] perform the audit,
Versicor shall pay Abbott [**] U.S. Dollars (U.S. $[**]) per additional
auditor.

             Visits by Versicor to Abbott’s
ECBN-HCl or API facilities may involve the transfer of Confidential
Information, and any such Confidential Information shall be subject to the
terms of Article 11 hereof.  The results
of such audits and inspections shall be considered Confidential Information
under Article 11 and shall not be disclosed to third persons, including but not
limited to the FDA and any other Regulatory Authority, unless required by law
and upon prior written notice to Abbott. If Versicor utilizes auditors that are
not employees of Versicor, each of such auditors shall execute a non-disclosure
agreement with confidentiality terms at least as stringent as those set forth
herein.

             Abbott shall be responsible for
inspections of its North Chicago manufacturing facility by the FDA or an
equivalent Regulatory Authority and shall notify Versicor of all inspections
that are directly related to the manufacture of ECBN-HCl or API within [**] or
receipt by Abbott of notice of such inspections

             8.5        Payment Terms.

	 	      a.	Price
  and Payment.  Abbott shall invoice Versicor upon
  delivery of ECBN-HCl and/or API by Abbott at the prices set forth in Exhibit
  E of this Agreement.  Versicor shall
  make payment net [**] from the date of receipt of Abbott’s invoice.  All payments due under this Agreement
  shall be paid in U.S. Dollars by wire transfer or by such other means agreed
  upon by the parties, in each case at the expense of the payor, for value no
  later than the due date thereof (with [**] advance notice of each wire
  transfer) to the following bank account or such other bank accounts as the
  payee shall designate in writing within a reasonable period of time prior to
  such due date:
	 	 	 
	 	 	Account Name:	Abbott Laboratories
	 	 	Account Number:	[**]
	 	 	Bank:	[**]
	 	 	 	New York,
  New York
	 	 	ABA Number:	[**]
	 	      b.	Taxes.  Any
  federal, state, county or municipal sales or use tax, excise, customs charges,
  duties or similar charge, or any other tax assessment (other than that
  assessed against income), license, fee or other charge lawfully assessed or
  charged on the manufacture, sale or transportation of ECBN-HCl and/or API
  sold pursuant to this Agreement shall be paid by Versicor.

 

9.          Orders and Forecasts.

             9.1        First [**] Estimate.  Versicor
shall, within [**] after filing its NDA for the Product, provide
Abbott with a written estimate of Versicor’s monthly requirements of ECBN-HCl
and API to be supplied by Abbott for the [**] period commencing on the Launch Date.  Abbott acknowledges that such quantities are
estimates only and are not binding.

             9.2        Rolling Forecast.  Thereafter, Versicor shall provide [**] to
Abbott rolling [**] projections of requirements of ECBN-HCl and API to
be manufactured by Abbott, with the first [**] of such projection consisting of firm purchase
orders and the remaining [**] of each projection consisting of Versicor’s best
estimate forecast of its ECBN-HCl and API requirements.

             9.3        First Firm Order.  Abbott and Versicor shall cooperate fully in
estimating and scheduling production for the first commercial order of ECBN-HCl
and API to be placed by Versicor with Abbott in anticipation of regulatory
approval of Product.  The first firm
order shall cover the [**] period commencing on the Launch Date.  Versicor shall place its first firm order
for ECBN-HCl and API approximately [**] in advance of the anticipated NDA approval date or desired API
availability date.  At the same time,
Versicor shall provide to Abbott Versicor’s estimate of its monthly
requirements of ECBN-HCl and API to be supplied by Abbott for the next
succeeding [**] calendar month period.  Each Firm Order submitted by Versicor shall be no less than [**] percent ([**] %) nor more than [**] percent ([**]%) of the most recent forecast covering such time
period.

             9.4        Purchase Order Acceptance.  Within [**] after receipt of Versicor’s firm
purchase orders for ECBN-HCl and API, Abbott shall confirm to Versicor its
acceptance of the purchase order, delivery date and quantity of ECBN-HCl and
API ordered by Versicor.

             9.5        Firm Order Changes.  If, due to significant unforeseen
circumstances, Versicor requests changes to firm orders within the [**] firm purchase order timeframe, Abbott shall
attempt to accommodate the changes within reasonable manufacturing capabilities
and efficiencies.  Abbott shall advise
Versicor of the costs associated with making any such change and Versicor and
Abbott shall mutually agree to proceed with changes at Versicor’s cost.

             9.6        Purchase Order Terms.  Each purchase order or any acknowledgment
thereof, whether printed, stamped, typed, or written shall be governed by the
terms of this Agreement and none of the provisions of such purchase order or
acknowledgment shall be applicable except those specifying ECBN-HCl and/or API
quantities ordered, delivery dates, special shipping instructions and invoice
information.

10.        Proprietary
Ownership of Development Work, Preexisting Technology and License Grants

             10.1      Existing Proprietary
Information.  Except as
otherwise provided herein, neither party hereto shall be deemed by this
Agreement to have been granted any license or other rights to patent rights
existing as of the date hereof, or know-how relating to compounds,
formulations, or processes that are owned or controlled by the other party.

             10.2      Abbott Inventions.  With respect to any ideas, innovations or
inventions (whether or not patentable) developed by Abbott during the term of
this Agreement and relating to the manufacturing process of ECBN-HCl and/or
API, Abbott shall own all proprietary rights to such ideas, innovations and
inventions, and may obtain patent, copyright, and/or other proprietary
protection relating to such ideas, innovations and inventions; provided
however, that Abbott shall grant to Versicor a worldwide exclusive license,
with the right to grant sublicenses, to any ideas, innovations or inventions
developed hereunder as they relate to the manufacturing process of ECBN-HCl or
API.  In the event that Versicor
utilizes a third party in the manufacture of ECBN-HCl or API, Versicor shall
pay Abbott an innovation transfer payment (“ITP”) to be mutually agreed upon by
the parties in an amount no more than [**] percent of the dollar volume of ECBN-HCl
and API purchased by Versicor from a third party utilizing such licensed
technology solely for the manufacture of ECBN-HCl and API for Versicor
depending on the quality and quantity of Abbott inventions so used, as
reasonably determined by Abbott.  In the
event that Abbott files a patent application on such ideas, innovations or
inventions, then Abbott shall so notify Versicor within [**] of the filing of
such patent application.  Abbott may not
use any specific ECBN-HCl or API innovations or inventions for ECBN-HCl or API
developed in the Agreement by Abbott or Versicor to develop or manufacture any
glucan synthase inhibitors for any third party other than Versicor during the
term of this Agreement, and for a [**] period thereafter; provided, however, that
Abbott shall be entitled to use any innovations or inventions developed by
Abbott hereunder for Abbott’s own purposes; provided, however, that such Abbott
inventions and/or innovations shall not include any Versicor Patent Rights,
Versicor Know-How or API.

             10.3      Versicor Inventions.  During the term of this Agreement, Versicor hereby grants to Abbott a
royalty-free, worldwide, nonexclusive license, with the right to grant
sublicenses to satisfy Abbott’s manufacturing obligations hereunder, to Versicor Confidential Information, Versicor Know-How, Versicor Patent Rights, and other
proprietary rights reasonably necessary to conduct the research and development
work described in Articles 3 and 4 hereof, and to make, have made, import, sell
and supply ECBN-HCl and/or API hereunder, but only for such purposes.  In the event that Abbott desires to use a
third party in the manufacture of ECBN-HCl and/or API, Abbott shall notify
Versicor in advance of such use in order to obtain Versicor’s approval of such
third party manufacturer, which approval shall not be unreasonably
withheld.  Versicor shall have [**] to
approve or reject such third party manufacturer.  Failure of Versicor to respond in writing with such [**] time
period shall be deemed a rejection of that third party manufacturer.  Abbott shall only use Versicor approved
third party manufacturers in the manufacture of ECBN-HCl and/or API.

11.        Confidential Information.

             Neither party shall use or disclose
any Confidential Information received by any third party contract entered into
by Abbott and that party shall contain a provision to allow Versicor to audit
such facilities pursuant to this Agreement without the prior written consent of
the other party.  Except as provided in
the following sentence, nothing contained in this Article shall be construed to
restrict the parties from disclosing Confidential Information as is reasonably
necessary to perform acts permitted by this Agreement.  However, if either party is required or
feels it necessary to disclose any Confidential Information received by it
pursuant to this Agreement (whether by audit or otherwise) to any third party
or governmental agency in compliance with any federal, state and/or local laws
and/or regulations, or pursuant to an order of a court of competent
jurisdiction, the disclosing party shall notify the party owning such
Confidential Information immediately, prior to any such disclosure, in order to
enable the owning party to protect its Confidential Information.  In any event, the disclosing party shall
make any disclosures of Confidential Information received by it pursuant to
this Agreement only to the extent required, and only to such persons who have a
need to know.  The obligations of the
parties relating to Confidential Information shall expire [**] after
termination of this Agreement.

12.        Term
and Termination.

             12.1      Term.  This Agreement shall become effective as of
the Effective Date, and unless sooner terminated hereunder, shall continue in
effect until the completion of the [**] Contract Year following the Launch Date.  THIS
AGREEMENT MAY BE TERMINATED UPON EXPIRATION OF SUCH [**] TERM UPON NOT LESS THAN [**] WRITTEN NOTICE.  THEREAFTER, THIS AGREEMENT SHALL STAY IN
EFFECT FOR ADDITIONAL [**] PERIODS UNLESS [**] PRIOR WRITTEN NOTICE OF A PARTY’S
INTENT TO TERMINATE IS GIVEN TO THE OTHER PARTY.

             12.2      Versicor Termination
Rights.  Versicor may
terminate the Project upon [**] prior written notice to Abbott if Versicor
determines in good faith that the clinical, development and/or commercial stage
of the ECBN-HCl and/or API, before or after the Launch Date, is not
technically, clinically or commercially feasible, as determined by
Versicor.  If the Project is terminated,
Abbott shall advise Versicor of Abbott’s actual research and development costs
on the Project incurred prior to such termination.  If Versicor disputes such amount, the dispute shall be resolved
in accordance with the provisions of Section 18.2 hereof.  The parties shall negotiate in good faith an
appropriate adjustment based upon Abbott’s actual costs and Versicor’s payments
to Abbott to support the Project. 
Abbott, if requested by Versicor, shall provide to Versicor a summary of
costs payable pursuant to this Section 12.2. 
Upon payment of any adjustment required by this Section 12.2, this
Agreement shall terminate.

             12.3      Abbott Termination Rights.  In the event Versicor elects not to launch
Product by [**], Abbott shall have the right to terminate this
Agreement.

             12.4      General Termination Rights.  Upon the occurrence of the following events,
either party may terminate this Agreement by giving the other party [**] prior
written notice:

	 	a.	Upon the bankruptcy
  or insolvency of the other party; or
	 	 	 
	 	b.	Upon the material
  breach of any provision of this Agreement by the other party if the breach is
  not remedied prior to the expiration of such [**] notice period.

             12.5      Termination in Event of Hardship.  In the event that during the term of this
Agreement the general situation and/or the data and/or economic appropriateness
on which this Agreement is based are substantially changed such that it is not
commercially reasonable for either party to proceed towards commercialization
of the Product, such party may, after good faith negotiations between the
parties, terminate this Agreement with [**] prior written notice to the other
party; provided, however, that in the event that Versicor subsequently proceeds
toward the commercialization of Product, Abbott shall be entitled to
manufacture the ECBN-HCl and API for such Product at the price and upon the
terms and conditions set forth in this Agreement.

             12.6      Survival Provisions.  Termination, expiration, cancellation or
abandonment of this Agreement through any means and for any reason shall not
relieve the parties of any obligation accruing prior thereto, including, but
not limited to, the obligation to pay money, and shall be without prejudice to
the rights and remedies of either party with respect to the antecedent breach
of any of the provisions of this Agreement. Further, Articles 10,11, 12, 13,
14, 15, 16,  20 and 25 shall survive the
termination of this Agreement.

13.        Warranties

             13.1      Versicor Warranties.  Versicor warrants to Abbott that Versicor
Patent Rights, Versicor Know-How, and Confidential Information provided by
Versicor to Abbott for use in the research and development work described in
this Agreement and for Abbott to manufacture and supply ECBN-HCl and API under
this Agreement do not, and will not for the term hereof, infringe any patent or
other proprietary right of any third party. Versicor warrants that it owns or
controls all of the rights, title and interest in and to the Versicor Patent
Rights, Versicor Know-How, and Confidential Information provided by Versicor to
Abbott hereunder, and that it has the full right and authority to grant to
Abbott the license described in Section 10.2. 
Versicor further warrants that such license constitutes the only license
that Abbott will need to manufacture and supply ECBN-HCl and API for Versicor,
its Affiliates, subsidiaries, licensees and sublicensees.

             13.2      Abbott Warranties. 
Abbott warrants to Versicor that Abbott Patent Rights, Abbott Know-How,
and Confidential Information provided by Abbott for use in the research and
development work described in this Agreement and the manufacture and supply of
ECBN-HCl and API under this Agreement do not, and will not for the term hereof,
infringe any patent or other proprietary right of any third party.  Abbott warrants to Versicor that ECBN-HCl
and API delivered to Versicor pursuant to this Agreement shall conform to cGMP
and the Specifications, and shall be in compliance with applicable laws and
regulations.  ABBOTT MAKES NO OTHER WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO
ECBN-HCl OR API.  ALL OTHER WARRANTIES,
EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, THE IMPLIED WARRANTIES OR
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE HEREBY DISCLAIMED BY
ABBOTT.  IN NO EVENT SHALL ABBOTT BE
LIABLE FOR INDIRECT, INCIDENTAL OR CONSEQUENTIAL
DAMAGES, INCLUDING WITHOUT LIMITATION, LOST REVENUES OR PROFITS.

14.        Indemnification.

             14.1      Versicor Indemnification.  Versicor shall defend, indemnify and hold
Abbott and its Affiliates and their respective employees, consultants,
directors and agents harmless against any liability, judgment, demand, action,
suit, loss, damage, cost and other expense (including reasonable attorney's
fees) (”Liability") arising from (i) Versicor’s negligence or willful act
or omission in the development, testing, use, manufacture, promotion,
marketing, sale, distribution, packaging, labeling, handling, storage, and/or
disposal of ECBN-HCl and/or API and/or Product; or (ii) any action brought by a
third party alleging infringement of any patent or other proprietary rights of
such third party by use of the Versicor Patents, Versicor Know-How, or
Confidential Information provided by Versicor; or (iii) Versicor’s and/or any
Versicor’s Affiliate’s, licensee’s and/or sublicensee’s material breach of this
Agreement, except to the extent Abbott is liable under Section 14.2.

             14.2      Abbott Indemnification.  Abbott shall defend, indemnify and hold
Versicor, its Affiliates, licensees and sublicensees and their respective
employees, consultants, directors and agents harmless against any Liability
arising from (i) Abbott’s negligence or willful act or omission in the
development, testing, use, storage, handling, manufacture, storage or delivery
of ECBN-HCl and/or API; (ii) any action brought by a third party alleging
infringement of any patent or other proprietary rights of such third party by
use of the Abbott Patents, Abbott Know-How, or Confidential Information
provided by Abbott; or (iii) Abbott’s material breach of this Agreement, except
to the extent Versicor is liable under Section 14.

             14.3      Claims and Proceedings.  Each party shall notify the other promptly
of any threatened or pending claim or proceeding covered by any of the above
Sections in this Article 14 and shall include sufficient information to enable
the other party to assess the facts. 
Each party shall cooperate fully with the other party in the defense of
all such claims.  No settlement or
compromise shall be binding on a party hereto without its prior written
consent.

15.        Assignment.

             Neither party shall assign this
Agreement or any part thereof without the prior written consent of the other
party, which consent shall not be unreasonably withheld.  Any permitted assignee shall assume all
obligations of its assignor under this Agreement.  No assignment shall relieve any party of responsibility for the
performance of any accrued obligation, which such party then has hereunder.

16.        Notices.

             All notices hereunder shall be in
writing and shall be delivered personally, registered or certified mail,
postage prepaid, mailed by express mail service or given by facsimile, to the
following addresses of the respective parties:

	 	If
  to Abbott:	Abbott Laboratories
	 	 	President
	 	 	Specialty Products
  Division
	 	 	Department 390,
  Building A1
	 	 	1401 Sheridan Road
	 	 	North Chicago, IL
  60064-4000
	 	 	Fax Number:
  847/938-2315
	 	 	 
	 	with copy to:	Abbott Laboratories
	 	 	Senior Vice President and General Counsel
	 	 	Department 364, Building AP6D
	 	 	100 Abbott Park Road
	 	 	Abbott Park, IL 60064-6049
	 	 	Fax Number: 847/938-6277
	 	 	 
	 	If to Versicor:	Versicor, Inc.
	 	 	34790 Ardentech
  Court
	 	 	Fremont, Ca 94555
	 	 	Attention: CEO and
  CFO
	 	 	 
	 	With a copy to	O’Melveny &
  Myers LLP
	 	 	275 Battery Street,
  Suite 2600
	 	 	San Francisco,
  California 94111
	 	 	Attention:  Peter T. Healy, Esq.

Notices
shall be effective upon receipt if personally delivered, on the third business
day following the date of mailing if sent by certified or registered mail, and
on the second business day following the date of delivery to the express mail
service if sent by express mail, or the date of transmission if sent by facsimile.  A party may change its address listed above
by notice to the other party.

17.        Entire
Agreement.

             This Agreement constitutes the
entire agreement between the parties concerning the subject matter hereof and
supersedes all written or oral prior agreements or understandings with respect
thereto.

18.        Alternative Dispute Resolution and Applicable Law.

             18.1      Choice
of Law.  This Agreement
shall be construed, interpreted and governed by the laws of the State of New
York, excluding its choice of law provisions.

             18.2      Alternative Dispute
Resolution.  The parties
recognize that bona fide disputes may arise which relate to the parties’ rights
and obligations under this Agreement. 
The parties agree that any such dispute shall be resolved by Alternative
Dispute Resolution (“ADR”) in accordance with the procedure set forth in
Exhibit F.

19.        Force
Majeure.

             Any delay in the performance of any
of the duties or obligations of any party (except the payment of money due
hereunder) caused by an event outside the affected party’s reasonable control
shall not be considered a breach of this Agreement, and unless provided to the
contrary herein, the time required for performance shall be extended for a
period equal to the period of such delay. 
Such events shall include without limitation, acts of God; acts of the
public enemy; insurrections; riots; injunctions; embargoes; labor disputes,
including strikes, lockouts, job actions, or boycotts; fires; explosions;
floods; earthquakes; shortages of material or energy; delays in the delivery of
raw materials, or other unforeseeable causes beyond the reasonable control and
without the fault or negligence of the party so affected.  The party so affected shall give prompt
notice to the other party of such cause, and shall take whatever reasonable
steps are necessary to relieve the effect of such cause as rapidly as
reasonably possible.

20.        Severability.

             If any term or provision of this
Agreement shall for any reason be held invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any
other term or provision hereof, and this Agreement shall be interpreted and
construed as if such term or provision, to the extent the same shall have been
held to be invalid, illegal or unenforceable, had never been contained herein.

21.        Waiver.

             No waiver or modification of any of
the terms of this Agreement shall be valid unless in writing and signed by an
authorized representative of each party hereto.  Failure by either party to enforce any rights under this
Agreement shall not be construed as a waiver of such rights, nor shall a waiver
by either party in one or more instances be construed as constituting a
continuing waiver or as a waiver in other instances.

22.        Exhibits.

             All Exhibits referenced herein are
hereby made a part of this Agreement.

23.        Counterparts.

             This Agreement may be executed in
any number of separate counterparts, each of which shall be deemed to be an
original, but which together shall constitute one and the same instrument.

24.        No Publicity.

             With the exception of
communicating, “Abbott has become the worldwide manufacturing, development and
supply partner for Versicor’s ECBN-HCl and API,” for the limited purposes of
communicating information (i) to Versicor’s Board of Directors, (ii) Versicor
investors, (iii) to symposium participants in break out question and answer
sessions, neither party shall disclose the existence of this Agreement or the
provisions of this Agreement without the prior written approval of the other party.  Neither party shall use the name of the
other party in any publicity or advertising without the other party’s prior
written consent.  Neither party shall
make any public announcement concerning the transactions contemplated herein,
or make any public statement that includes the name of the other party or any
of its Affiliates or subsidiaries, or otherwise use the name of the other party
or any of its Affiliates or subsidiaries in any public statement or document,
except as may be required by law or judicial order, without the written consent
of the other party, which consent shall not be unreasonably withheld.  Subject to any legal or judicial disclosure
obligation, any such public announcement proposed by a party that names the
other party shall first be provided in draft to the other party.

             IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized representatives on the later day and year
written below.

	ABBOTT LABORATORIES	 	VERSICOR, INC.
	 	 	 	 	 
	By:	/s/  Chris Kolber	 	By:	/s/George F.
  Horner, III
	 	

	 	 	

	Title:	DVP	 	Title:	President and CEO
	 	

	 	 	

	Date:	6/12/01	 	Date:	25 June 2001
	 	

	 	 	

EXHIBIT A

API

VER002 API

 

Anidulafungin
(VER002) API Structure

Chemical name:  [**]

 

 

[**]

EXHIBIT B

EBCN-HCl

 

 

 

[**]

 

 

 

 

 

[**]

 

 

 

 

 

 

Chemical
Name:  [**]

EXHIBIT C

ECBN-HCl AND/OR API SPECIFICATIONS

	Analytical Property	Method Type/Code	 	Limit
	

	

	

	

	[**]	[**]	 	[**]
	[**]	[**]	 	[**]
	[**]	[**]	 	[**]
	[**]	[**]	 	[**]
	 	 	 	 
	[**]	 	 	 
	[**]	[**]	 	[**]
	[**]	[**]	 	[**]
	[**]	[**]	 	[**]
	 	 	 	 
	[**]	[**]	 	[**]
	[**]	[**]	 	[**]
	[**]	[**]	 	[**]
	[**]	[**]	 	[**]
	[**]	[**]	 	[**]
	[**]	[**]	 	[**]
	 	 	 	 
	[**]	[**]	 	[**]
	 	 	 	 
	[**]	[**]	 	[**]
	 	 	 	 
	[**]	[**]	 	[**]
	 	 	 	 
	[**]	[**]	 	[**]
	 	 	 	 
	[**]	[**]	 	[**]
	 	 	 	 
	[**]	[**]	 	[**]
	 	 	 	 
	[**]	[**]	 	[**]
	 	 	 	 
	[**]	[**]	 	[**]

 

EXHIBIT
D

PROPOSALS

LY
303366 PROPOSAL

Versicor - ABBOTT LABORATORIES

PIII CHEMICAL PRODUCTION PROGRAM

 

Goals:

[**]

Abbott Activities:

[**]

Assumptions:

[**]

Summary

Program
Timeline

[**]

Goals:

[**]

Abbott Activities:

[**]

Assumptions:

[**]

Program
Timeline:

[**]

 

VERSICOR CHEMICAL R&D VALIDATION PROPOSAL

STAGE II

 

[**]

 

 

 VERSICOR
CHEMICAL R&D VALIDATION PROPOSAL

STAGE III

 

[**]

 

 

VERSICOR
FERMENTATION ACTIVITY LIST

[**] – DAJ

 

[**]

 

FERMENTATION
REFERENCE STANDARDS

PROPOSAL OPTIONS

SCOPE:

[**].

BACKGROUND:

[**]

	SCENARIO	START
  DATE	DEMO
  RUN COMPLETE	PROCESS
  VALIDATION RUN #1	PROCESS
  VALIDATION RUN #2	PROCESS
  VALIDATION RUN #3	ADDED
  COST From Scen. 1	PROJECT
  DELAY From Scen. 1
	

	

	

	

	

	

	

	

	Scenario
  1	[**]	[**]	[**]	[**]	[**]	[**]	[**]
	Scenario
  2	[**]	[**]	[**]	[**]	[**]	[**]	[**]
	Scenario
  3	[**]	[**]	[**]	[**]	[**]	[**]	[**]
	Scenario
  4	[**]	[**]	[**]	[**]	[**]	[**]	[**]

 

Scenario
1        [**]

Scenario
2        [**]

Scenario
3        [**]

Scenario
4        [**]

ASSUMPTIONS:

[**]

DECISION
MILESTONES:

	[**]:	Deadline
  for Versicor to select the optimal scenario in order for Abbott to maintain
  the appropriate timelines posted in the above table.  Note:  if a decision is made sooner or later, the
  timelines will be affected accordingly.
	 	 
	[**]:	Deadline
  for Abbott to receive reference standards in order to maintain project timing
  in Scenarios 2-4.

Additional
Comments:

•            [**]

•            [**]

•            [**]

EXHIBIT
E

 

PROGRAM
TIME GAITED COSTS

($000s)

All dates are estimated and actual activity dates are subject to change

	Activity	Start Date	End Date	Actual [**]	Projected[**]	Projected[**]	Projected[**]
	

	

	

	

	

	

	

	[**]	 	 	[**]	 	 	 
	[**]	 	 	[**]	 	 	 
	[**]	 	 	[**]	 	 	 
	 	 	 	 	 	 	 
	[**]	[**]	[**]	 	[**]	 	 
	[**]	[**]	[**]	 	[**]	 	 
	[**]	[**]	[**]	 	  [**]	 	 
	[**]	[**]	[**]	 	[**]	 	 
	[**]	[**]	[**]	 	[**]	 	 
	[**]	[**]	 	 	[**]	 	 
	[**]	 	 	 	 	[**]	 
	[**]	[**]	[**]	 	[**]	 	 
	[**]	[**]	 	 	[**]	 	 
	[**]	 	[**]	 	 	[**]	 
	[**]	[**]	[**]	 	   [**]	 	 
	[**]	[**]	[**]	 	[**]	 	 
	 	 	 	 	 	 	 
	[**]	[**]	[**]	 	 	[**]	 
	[**]*	[**]	[**]	 	 	[**]	 
	[**]*	[**]	[**]	 	 	[**]	 
	[**]	[**]	[**]	 	 	[**]	 
	[**]	 	 	 	 	 	[**]**
	[**]	 	 	[**]	[**]	[**]	[**]**

                                                                                                                                                                Total
Program Cost           [**]

Invoices shall be sent to
Versicor upon the completion of each line item activity above unless specified
as project initiation; Upon such event, invoices shall be sent on the
initiation date of said activity.

[**].

[**].

Activities
to include the cGMP production of approx. [**] of Commercial validation
material.

**Miscellaneous program charges if reference standard production fees are
incurred in [**].  Abbott shall adjust
the timing of other fees accordingly to assure that the total annual charges do
not exceed the total annual charges listed above.

EXHIBIT F

Alternative Dispute Resolution

The
parties recognize that from time to time a dispute may arise relating to either
party’s rights or obligations under this Agreement.  The parties agree that any such dispute shall be resolved by the
Alternative Dispute Resolution (“ADR”) provisions set forth in this Exhibit,
the result of which shall be binding upon the parties.

             To begin the ADR process, a party
first must send written notice of the dispute to the other party for attempted
resolution by good faith negotiations between their respective presidents (or
their designees) of the affected subsidiaries, divisions, or business units
within [**] after such notice is
received (all references to “days” in this ADR provision are to calendar
days).  If the matter has not been resolved
within [**] of the notice of
dispute, or if the parties fail to meet within such [**], either party may initiate an ADR proceeding as
provided herein.  The parties shall have
the right to be represented by counsel in such a proceeding.

1.          To begin an ADR proceeding, a party
shall provide written notice to the other party of the issues to be resolved by
ADR.  Within [**] after its receipt of such notice, the other
party may, by written notice to the party initiating the ADR, add additional
issues to be resolved within the same ADR.

2.          Within [**] following receipt of the original ADR notice,
the parties shall select a mutually acceptable neutral to preside in the
resolution of any disputes in this ADR proceeding.  If the parties are unable to agree on a mutually acceptable
neutral within such period, either party may request the President of the CPR
Institute for Dispute Resolution (“CPR”), 366 Madison Avenue, 14th Floor, New
York, New York  10017, to select a neutral
pursuant to the following procedures:

(a)            The CPR shall submit to the parties
a list of not less than [**] candidates within [**] after receipt of the request, along with a Curriculum
Vitae for each candidate.  No
candidate shall be an employee, director, or shareholder of either party or any
of their subsidiaries or affiliates.

(b)            Such list shall include a statement
of disclosure by each candidate of any circumstances likely to affect his or
her impartiality.

(c)            Each party shall number the
candidates in order of preference (with the number one (1) signifying the
greatest preference) and shall deliver the list to the CPR within [**] following receipt of the list of
candidates.  If a party believes a
conflict of interest exists regarding any of the candidates, that party shall
provide a written explanation of the conflict to the CPR along with its list
showing its order of preference for the candidates.  Any party failing to return a list of preferences on time shall
be deemed to have no order of preference.

(d)            If the parties collectively have
identified fewer than [**] candidates deemed to
have conflicts, the CPR immediately shall designate as the neutral the
candidate for whom the parties collectively have indicated the greatest
preference.  If a tie should result
between two candidates, the CPR may designate either candidate.  If the parties collectively have identified [**] or more candidates deemed to have conflicts,
the CPR shall review the explanations regarding conflicts and, in its sole
discretion, may either (i) immediately designate as the neutral the candidate
for whom the parties collectively have indicated the greatest preference, or
(ii) issue a new list of not less than [**] candidates, in which case the procedures set
forth in subparagraphs 2(a) - 2(d) shall be repeated.

3.          No earlier than [**] or later than [**] after selection, the neutral shall hold a
hearing to resolve each of the issues identified by the parties.  The ADR proceeding shall take place at a
location agreed upon by the parties.  If
the parties cannot agree, the neutral shall designate a location other than the
principal place of business of either party or any of their subsidiaries or
affiliates.

4.          At least [**] prior to the hearing, each party shall submit
the following to the other party and the neutral:

(a)             a copy of all exhibits on which
such party intends to rely in any oral or written presentation to the neutral;

(b)            a list of any witnesses such party
intends to call at the hearing, and a short summary of the anticipated
testimony of each witness;

(c)             a proposed ruling on each issue to
be resolved, together with a request for a specific damage award or other
remedy for each issue. The proposed rulings and remedies shall not contain any
recitation of the facts or any legal arguments and shall not exceed one (1)
page per issue.

(d)            a brief in support of such party’s
proposed rulings and remedies, provided that the brief shall not exceed [**] pages. 
This page limitation shall apply regardless of the number of issues
raised in the ADR proceeding.

Except
as expressly set forth in subparagraphs 4(a) - 4(d), no discovery shall be
required or permitted by any means, including depositions, interrogatories,
requests for admissions, or production of documents.

5.          The hearing shall be conducted on [**] and shall be governed by the following rules:

(a)             Each party shall be entitled to [**] of hearing time to present its case.  The neutral shall determine whether each
party has had the [**] to which it is
entitled.

(b)             Each party shall be entitled, but
not required, to make an opening statement, to present regular and rebuttal
testimony, documents or other evidence, to cross-examine witnesses, and to make
a closing argument.  Cross-examination
of witnesses shall occur immediately after their direct testimony, and cross-examination
time shall be charged against the party conducting the cross-examination.

(c)              The party initiating the ADR shall
begin the hearing and, if it chooses to make an opening statement, shall
address not only issues it raised but also any issues raised by the responding
party.  The responding party, if it
chooses to make an opening statement, also shall address all issues raised in
the ADR.  Thereafter, the presentation
of regular and rebuttal testimony and documents, other evidence, and closing
arguments shall proceed in the same sequence.

(d)             Except when testifying, witnesses
shall be excluded from the hearing until closing arguments.

(e)              Settlement negotiations, including
any statements made therein, shall not be admissible under any
circumstances.  Affidavits prepared for
purposes of the ADR hearing also shall not be admissible.  As to all other matters, the neutral shall
have sole discretion regarding the admissibility of any evidence.

6.          Within [**] following completion of the hearing, each party
may submit to the other party and the neutral a post-hearing brief in support
of its proposed rulings and remedies, provided that such brief shall not
contain or discuss any new evidence and shall not exceed [**] pages. 
This page limitation shall apply regardless of the number of issues
raised in the ADR proceeding.

7.          The neutral shall rule on each
disputed issue within [**] following completion of
the hearing.  Such ruling shall adopt in
its entirety the proposed ruling and remedy of one of the parties on each
disputed issue but may adopt one party’s proposed rulings and remedies on some
issues and the other party’s proposed rulings and remedies on other
issues.  The neutral shall not issue any
written opinion or otherwise explain the basis of the ruling.

8.          The neutral shall be paid a reasonable
fee plus expenses.  These fees and
expenses, along with the reasonable legal fees and expenses of the prevailing
party (including all expert witness fees and expenses), the fees and expenses
of a court reporter, and any expenses for a hearing room, shall be paid as
follows:

(a)        If the neutral rules in favor of one
party on all disputed issues in the ADR, the losing party shall pay 100% of
such fees and expenses.

(b)             If the neutral rules in favor of
one party on some issues and the other party on other issues, the neutral shall
issue with the rulings a written determination as to how such fees and expenses
shall be allocated between the parties. 
The neutral shall allocate fees and expenses in a way that bears a reasonable
relationship to the outcome of the ADR, with the party prevailing on more
issues, or on issues of greater value or gravity, recovering a relatively
larger share of its legal fees and expenses.

9.          The rulings of the neutral and the
allocation of fees and expenses shall be binding, non-reviewable, and
non-appealable, and may be entered as a final judgment in any court having
jurisdiction.

10.        Except
as provided in paragraph 9 or as required by law, the existence of the dispute,
any settlement negotiations, the ADR hearing, any submissions (including
exhibits, testimony, proposed rulings, and briefs), and the rulings shall be
deemed Confidential Information.  The
neutral shall have the authority to impose sanctions for unauthorized
disclosure of Confidential Information.

 

[**]
The confident portion has been omitted and filed separately with the Securities
and Exchange Commission

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}]]