Document:

EX-10.18

 Exhibit 10.18 
 Change of Control Retention and Severance Agreement 
 This Change of
Control Retention and Severance Agreement (the “Agreement”) is made and entered into as of             , 201    , by and between Cepheid and
                     (the “Executive”). Capitalized terms used in this Agreement shall have the meanings set forth in
Section 3 below. 
 1. Purpose. The purpose of this Agreement is to encourage Executive to remain in the employ of the Company and
to continue to devote Executive’s full attention to the success of the Company in the event of a Change of Control, as such term is defined in Section 3 of this Agreement. 
 2. Termination Upon Change of Control. In the event of Executive’s Termination Upon Change of Control, Executive shall receive the following payments and benefits: 

2.1 Accrued Salary, Bonus, Vacation and Benefits. Executive shall receive all salary and accrued vacation (less applicable
withholding) earned through Executive’s termination date, any earned but unpaid bonus, and the benefits, if any, under Company benefit plans to which Executive may be entitled pursuant to the terms of such plans. 

2.2 Equity Award Acceleration. Provided that Executive complies with Section 5 below, all outstanding equity awards,
including, without limitation, stock options, restricted stock, restricted stock units, stock appreciation rights, phantom stock rights and stock bonuses, granted or issued by the Company to Executive prior to the Change of Control shall become
fully vested and exercisable, and any such outstanding equity awards that are subject to a right of repurchase, right of forfeiture, or similar right, shall be released from such right and shall be fully vested, in each case, immediately prior to
the effective date of the Termination Upon Change of Control. 
 2.3 Cash Severance Payment. Provided that Executive
complies with Section 5 below, Executive shall receive a lump sum cash payment in an amount equal to (i) [twelve (12)/fifteen (15)/eighteen (18)] months of Executive’s then-effective annual base salary plus (ii) 100% of the
target bonus for which the Executive would have been eligible during the year of termination pursuant to the Company’s then-effective Key Employee Incentive Plan or equivalent cash incentive bonus plan (less applicable withholding), paid within
ten (10) business days of the effectiveness of the Release. For purposes of this Section 2.3, a Termination Upon Change of Control will be determined consistent with the rules relating to “separation from service” as defined in
Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”). Notwithstanding anything else provided herein, to the extent any payments provided under this Agreement in connection with Executive’s
termination of employment constitute deferred compensation subject to Section 409A, and Executive is deemed at the time of such termination of employment to be a “specified employee” under Section 409A, then such payment shall
not be made or commence until the earlier of (i) the expiration of the 6-month period measured from Executive’s separation from service from the Company or (ii) the date of 

 
Executive’s death following such a separation from service; provided, however, that such deferral shall only be effected to the extent required to avoid adverse tax treatment
to Executive including, without limitation, the additional twenty-percent (20%) tax for which Executive would otherwise be liable under Section 409A(a)(1)(B) in the absence of such a deferral. The first payment thereof will include a
catch-up payment covering the amount that would have otherwise been paid during the period between Executive’s termination of employment and the first payment date but for the application of this provision, and the balance of the installments
(if any) will be payable in accordance with their original schedule. All forms of compensation referred to in this Agreement are subject to reduction to reflect applicable withholding and payroll taxes and other deductions required by law. To the
extent that any provision of this Agreement is ambiguous as to its compliance with Section 409A, the provision will be read in such a manner so that all payments hereunder comply with Section 409A. To the extent any payment under this
Agreement may be classified as a “short-term deferral” within the meaning of Section 409A, such payment shall be deemed a short-term deferral, even if it may also qualify for an exemption from Section 409A under another provision
of Section 409A. 
 3. Definitions. Capitalized terms used in this Agreement shall have the meanings set forth in this
Section 3. 
 3.1 “Cause” means Executive’s (a) failure to perform any reasonable and lawful
duty of Executive’s position or failure to follow the lawful written directions of the Chief Executive Officer; (b) commission of an act that constitutes misconduct and is injurious to the Company or any subsidiary; (c) conviction of,
or pleading “guilty” or “no contest” to, a felony under the laws of the United States or any state thereof; (d) committing an act of fraud against, or the misappropriation of property belonging to, the Company or any
subsidiary; (e) commission of an act of dishonesty in connection with Executive’s responsibilities as an employee and affecting the business or affairs of the Company; (f) breach of any confidentiality, proprietary information or
other agreement between Executive and the Company or any subsidiary; or (g) failure or refusal to carry out the reasonable directives of the Company. 
 3.2 “Change of Control” means (a) any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)), other than a trustee or other fiduciary holding securities of the Company under an employee benefit plan of the Company, becomes the “beneficial owner” (as defined in Rule 13d-3 promulgated under
the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of (A) the outstanding shares of common stock of the Company or (B) the combined voting power of the Company’s then
outstanding securities; (b) the Company is party to a merger or consolidation which results in the voting securities of the Company outstanding immediately prior thereto failing to continue to represent (either by remaining outstanding or
by being converted into voting securities of the surviving or another entity) at least fifty (50%) percent of the combined voting power of the voting securities of the Company or such surviving or other entity outstanding immediately after such
merger or consolidation; (c) the sale or disposition of all or substantially all of the Company’s assets (or consummation of any transaction having similar effect); (d) the dissolution or liquidation of the Company; or (e) a
change in the composition of the Board of Directors of the Company, as a result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” shall mean directors who either (A) are directors of the
Company as of the date hereof, or (B) are elected, or 

  
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nominated for election, to the Board with the affirmative votes of at least a majority of those directors whose election or nomination was not in connection with any transactions described in
subsections (a), (b), (c) or (d) or in connection with an actual or threatened proxy contest relating to the election of directors of the Company. 
 3.3 “Company” means Cepheid and any successor or assign to substantially all the business and/or assets of Cepheid. 

3.4 “Diminution of Responsibilities” means the occurrence of any of the following conditions, without Executive’s
consent: (a) a significant diminution in the nature or scope of Executive’s authority, title, function or duties from Executive’s authority, title, function or duties in effect immediately preceding any Change of Control; (b) a
ten percent (10%) reduction in Executive’s base salary or a twenty-five percent (25%) reduction in Executive’s target bonus opportunity, if any, in effect immediately preceding any Change of Control (in either case, unless such
reduction is part of a Company officer-wide program to reduce expenses); (c) the Company’s requiring Executive to be based at any office or location more than 50 miles from the office where Executive was employed immediately preceding the
Change of Control; (d) any material breach of the terms of this Agreement by the Company; or (e) failure of any successor or assignee to the Company to assume this Agreement; provided, however, that Executive shall provide
notice to the Company within 90 days of the occurrence of a condition listed above constituting a Diminution of Responsibilities and allow the Company 30 days in which to cure such condition. 

3.5 “Termination Upon Change of Control” means: 

(a) any involuntary termination of the employment of Executive by the Company without Cause within twelve (12) months following a
Change of Control; or 
 (b) any resignation by Executive based on a Diminution of Responsibilities where (i) such
Diminution of Responsibilities occurs within twelve (12) months following the Change of Control, and (ii) such resignation occurs within ninety (90) days following such Diminution of Responsibilities. 

4. Federal Excise Tax. If the payments and benefits provided for in this Agreement constitute “parachute payments” within the meaning of
the Internal Revenue Code of 1986, as amended (the “Code”), but for this Section 4, would be subject to the excise tax imposed by Section 4999 of the Code, then the payments and benefits under this Agreement will be
payable, at Executive’s election, either in full or in such lesser amount as would result, after taking into account the applicable federal, state and local income taxes and excise tax imposed by Section 4999 of the Code, in
Executive’s receipt on an after-tax basis of the greatest amount of benefits. In the event Executive elects to receive such lesser amount of the payments and benefits under this Agreement, the payments and benefits shall be reduced in the
following order: (A) a pro rata reduction of (i) cash payments that are subject to Section 409A as deferred compensation and (ii) cash payments not subject to Section 409A; (B) a pro rata reduction of (i) employee
benefits that are subject to Section 409A as deferred compensation and (ii) employee benefits not subject to Section 409A; and (C) a pro rata cancellation of (i) accelerated vesting of stock and other equity-based awards
that are subject to Section 409A as deferred compensation and (ii) stock and other 

  
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equity-based awards not subject to Section 409A. In the event that acceleration of vesting of stock and other equity-based award compensation is to be reduced, such acceleration of vesting
shall be cancelled in the reverse order of the date of grant of Executive’s stock and other equity-based awards unless Executive elects in writing a different order for cancellation. 
 5. Release of Claims. The payments and benefits set forth in Sections 2.2 and 2.3 of this Agreement are subject to Executive’s delivery to the Company of a signed release of claims in a form
satisfactory to the Company and satisfaction of all conditions to make such release effective within sixty (60) days following the date of his Termination Upon Change of Control (the “Release”). 

6. Agreement Not to Solicit. If Company performs its obligations to deliver the severance compensation set forth in Sections 2.2 and 2.3 of this
Agreement, then for a period of one (1) year after Executive’s termination of employment, Executive will not solicit any employee of the Company to discontinue that person’s employment relationship with the Company. 

7. Arbitration. Any claim, dispute or controversy arising out of this Agreement, the interpretation, validity or enforceability of this Agreement
or the alleged breach thereof shall be submitted by the parties to binding arbitration by the American Arbitration Association. The site of the arbitration proceeding shall be in Santa Clara County, California, or another location mutually agreed to
by the parties. 
 8. Conflict in Benefits; Effect of Agreement. This Agreement shall supersede all prior arrangements, whether written
or oral, and understandings regarding severance compensation following a Change of Control and shall be the exclusive agreement for the determination of any severance compensation due upon Executive’s termination of employment upon a Change of
Control. 
 9. Miscellaneous. 
 9.1 Successors of the Company. The Company will require any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company, expressly, absolutely and unconditionally to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession or
assignment had taken place. 
 9.2 No Employment Agreement. This Agreement does not alter Executive’s at-will
employment status or obligate the Company to continue to employ Executive for any specific period of time, or in any specific role or geographic location. 
 9.3 Modification of Agreement. This Agreement may be modified, amended or superceded only by a written agreement signed by Executive and the Chief Executive Officer. 

9.4 Governing Law. This Agreement shall be interpreted in accordance with and governed by the laws of the State of California.

 9.5 Entire Agreement. This Agreement constitutes the entire agreement and understanding of the parties with respect to
the subject matter of this Agreement, and supersedes all prior understandings and agreements, whether oral or written between or among the parties hereto with respect to the specific subject matter hereof. 

  
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	EXECUTIVE	 		 	CEPHEID
				
	  
	 		 	By:	 	  

				
		 		 	Name:	 	 John L. Bishop

				
		 		 	Title:	 	 Chief Executive Officer

  
 5EX-10.27

 Exhibit 10.27 

 

							
	

	  	 	  	 WEB
 MAIN
 FAX
	 	 WWW.CEPHEID.COM

1.888.336.2743

1.408.734.1260

 December 22, 2011 
 Mr. Mike Fitzgerald 

10 Miller Place, #1702 
 San Francisco, CA 94108

  

	Re:	Offer of Employment by Cepheid 

Dear Mike: 
 I am very pleased
to confirm our offer to you of employment with Cepheid (the “Company”). You will report to John Bishop in the position of Senior Vice President, Human Resources. The terms of our offer and the benefits currently provided by
the Company are as follows: 
 1. Starting Salary. Your starting bi-weekly salary will be $11,153.85, which is the
equivalent of $290,000.00 on an annual basis, and will be subject to annual review. Please be advised that you will not be eligible for consideration of a merit increase until May, 2013. 

2. Incentive Plan. You will have the opportunity to earn a bonus targeted at 40% of your base salary, to be paid based upon
the financial performance of the Company and achievement of corporate goals approved by the Board of Directors. You will receive documentation regarding the Company’s Incentive Plan upon commencement of employment. 

3. Change of Control. The Company will offer you the change of control benefits detailed in Exhibit A effective with your
date of hire. 
 4. Benefits. In addition, you will be eligible to participate in regular health insurance, bonus
and other employee benefit plans established by the Company for its employees from time to time. Except as provided below, the Company reserves the right to change or otherwise modify, in its sole discretion, the preceding terms of employment, as
well as any of the terms set forth herein at any time in the future. 
 5. Paid Time Off. You will accrue Paid
Time Off (PTO) based on an accrual rate of 20 days per calendar year, commencing with your hire date. 
 6.
Confidentiality. As an employee of the Company, you will have access to certain confidential information of the Company and you may, during the course of your employment, develop certain Information or Inventions that will be the
property of the Company. To protect the Interests of the Company, you will need to sign the Company’s standard “Employee Invention Assignment and Confidentiality Agreement” as a condition of your employment. We wish to impress upon
you that we do not want you to, and we hereby direct you not to, bring with you any confidential or proprietary material of any former employer or to violate any other obligations you may have to any former employer. During the period that you
render services to the Company, you agree to not engage in any employment, business or activity that is in any way competitive with the business or proposed business of the Company. You will disclose to the Company in writing any other gainful
employment, business or activity that you are currently associated with or participate in that competes with the Company. You will not assist any other person or organization in competing with the Company or in preparing to engage in competition
with the business or proposed business of the Company. You represent that your signing of this offer letter, agreement(s) concerning stock options granted to you, if any, under the Plan (as defined below) and the Company’s Employee Invention
Assignment and Confidentiality Agreement and your commencement of employment with the Company will not violate any agreement currently in place between yourself and current or past employers. 

 
 

 

			
	

	  	 Mr. Mike Fitzgerald
 Employment Offer
  Page
 2

  

 7. Options. We will recommend to the Compensation Committee of the Board
of Directors of the Company that you be granted options to purchase up to 56,000 shares of Common Stock of the Company at the closing fair market value of the Company’s Common Stock at the end of business on the day the Compensation Committee
approves your grant, or your first day of employment, whichever is later, and which shall otherwise be subject to the option award agreement. The options will vest at the rate of twenty-five percent (25%) at the end of your first anniversary
with the Company, and an additional 1/48 of the total number of shares per month thereafter, so long as you remain employed by the Company. However, the grant of such options by the Company is subject to the Compensation Committee’s approval
and this promise to recommend such approval is not a promise of compensation and is not intended to create any obligation on the part of the Company. Further details on the specific option grant to you will be provided upon approval of such grant by
the Compensation Committee. 
 8. Restricted Stock. We will recommend to the Compensation
Committee of the Board of Directors of the Company that you be granted restricted stock units (“RSUs”) in respect of 10,000 shares of Common Stock of the Company, subject to the RSU award agreement. The RSUs will vest into
shares at the rate of twenty-five percent (25%) at the end of your first anniversary with the Company, and an additional 1/16th of the RSUs at the end of each three-month period thereafter, so long as you remain employed by the Company. However,
the grant of such RSUs by the Company Is subject to the Compensation Committee’s approval and this promise to recommend such approval is not a promise of compensation and is not intended to create any obligation on the part of the Company.
Further details on the specific RSU grant to you will be provided upon approval of such grant by the Compensation Committee. 

9. At-Will Employment. While we look forward to a long and profitable relationship, should you decide to accept our offer,
you will be an at-will employee of the Company, which means the employment relationship can be terminated by either of us for any reason, at any time, with or without prior notice and with or without cause. Any statements or representations to the
contrary (and, indeed, any statements contradicting any provision in this letter) should be regarded by you as ineffective. Further, your participation in any stock option or benefit program is not to be regarded as assuring you of continuing
employment for any particular period of time. Any modification or change In your at will employment status may only occur by way of a written employment agreement signed by you and the Chief Executive Officer of the Company. 

10. Authorization to Work. Please note that because of employer regulations adopted in the Immigration Reform and Control
Act of 1986, within three (3) business days of starting your new position you will need to present documentation demonstrating that you have authorization to work in the United States. If you have questions about this requirement, which applies
to U.S. citizens and non-U.S. citizens alike, you may contact our personnel office. 
 11. Insider Trading Policy.
This offer is contingent upon reading and signing the enclosed Insider Trading Policy. 
 12. Background Check.
This offer is also contingent upon successful completion of a background check, including a check of your employment references. This offer can be rescinded based upon data received in the background check. 

13. Entire Agreement. This offer, once accepted, constitutes the entire agreement between you and the Company with respect
to the subject matter hereof and supersedes all prior offers, negotiations and agreements, If any, whether written or oral, relating to such subject matter. You acknowledge that neither the Company nor Its agents have made any promise,
representation or warranty whatsoever, either express or implied, written or oral, which Is not contained In this agreement for the purpose of inducing you to execute the agreement, and you acknowledge that you have executed this agreement in
reliance only upon such promises, representations and warranties as are contained herein. 

  
 

 

			
	

	  	 Mr. Mike Fitzgerald
 Employment Offer
  Page
 3

  

 14. Acceptance. This offer will remain open until December 29, 2011.
If you decide to accept our offer, and I hope you will, please sign the enclosed copy of this letter in the space indicated and return it to me. Your signature will acknowledge that you have read and understood and agreed to the terms and conditions
of this offer letter and the attached documents, if any. Should you have anything else that you wish to discuss, please do not hesitate to call me. 
 We look forward to the opportunity to welcome you to the Company. 
  

	
	Sincerely,
	
	

	Kari E. Leetch
	Vice President, Human Resources

 I have read and understood this offer letter and hereby acknowledge, accept and agree to the terms as set forth
above and further acknowledge that no other commitments were made to me as part of my employment offer except as specifically set forth herein. 
  

							
	

	 	 	 	Date signed:	 	 22 DECEMBER 2011

	 Mike Fitzgerald
	 		 		 	
				
	JANUARY 2012	 		 		 	
	 Start Date

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