Document:

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                                                                    EXHIBIT 10.4

                 AMENDMENT TO PRODUCTION AND SUPPLY AGREEMENT

This Amendment ("Amendment") is made as of the 30 day of October 2000 by and
between Dade Behring Marburg GmbH, successor company to Behring Diagnostics GmbH
("Dade") and Messer Cutting and Welding AG, successor to Messer Griesheim
Schweisstechnik GmbH & Co.  ("Messer").

                                   Preamble

A.   Dade and Messer have entered into a Production and Supply Agreement dated
     September 29, 1997 (the "Agreement"), pursuant to which Dade has agreed to
     purchase certain Products from Messer, and pursuant to which the parties
     have agreed to certain terms relating to development of new products and
     technological advances affecting the existing Products.

B.   Dade wishes to take steps to ensure the performance of Messer under the
     Agreement and to gain greater control over the manufacture of certain
     Products; in particular the BN Prospec which is currently manufactured for
     Dade solely by Messer.

C.   Dade and Messer wish to amend the terms of the Agreement in accordance with
     the terms of section 17.6 thereof.

D.   Capitalised terms used and not otherwise defined herein shall have the same
     meanings as are ascribed to them in the Agreement.

NOW, THEREFORE, in consideration of Dade's agreement to forbear from exercising
certain rights under the Agreement based on Messer's performance thereunder,
Dade's agreement to maintain Messer as manufacturer for other Products, and the
mutual promises made herein, the parties hereby agree as follows:

                                   Article 1
                     Transition of  Products Manufacturing

1.1  Dade and Messer agree that manufacture of the Product BN Prospec, which is
     currently manufactured by Messer at its Schwalbach facility, shall be
     transferred to Dade's facility in Brookfield, United States of America, on
     or near June 30, 2001. Transition procedures include activities relating to
     training, transfer of know-how, scale-up, and parts supply, all as more
     fully described on Schedule 1 attached hereto. Each of such procedures
     shall be completed by the date specified on Schedule 1 and Messer agrees
     that failure to meet such milestones shall, absent an express waiver from
     Dade, constitute a breach of the Agreement as amended hereby, if such
     failure has a material adverse effect on the transition process. Such
     milestone dates may be adjusted from time to time as the parties may agree,
     provided, however, that such adjustments shall not be construed as
     permitting Messer to delay the transfer. After such transfer is complete,
     Messer shall cease all production of BN Prospec and the Brookfield facility
     shall be the sole manufacturer and supplier to Dade of BN Prospec.

1.2  Notwithstanding the target dates established in section 1.1 above and on
     Schedule 1, Dade shall determine in its sole discretion when the transfer
     of manufacture of BN Prospec to Brookfield shall be completed.  Dade and
     Messer agree to jointly create a detailed transition plan within ninety
     (90) days of the date of this Agreement.
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1.3  Dade agrees and guarantees that Messer shall have the right to produce all
     of Dade's requirements for BN Prospec for the Year 2000.  Dade further
     agrees that Messer shall have the right to produce at least fifty percent
     (50%) of Dade's requirements for the Year 2001 (the latter estimated to
     consist of 200 units), provided that Messer meets its milestones as set
     forth on Schedule 1.  Failing this, Dade shall have the option to reduce
     Messer's production to thirty percent (30%) of Dade's requirements for BN
     Prospec, subject in each case to the terms of the Agreement as amended
     hereby.

1.4  Dade expressly reserves the right to transfer the manufacture of any other
     Products currently manufactured by Messer to other facilities if Messer
     fails to meet its quality and continuity of supply obligations pursuant to
     the Agreement or this Amendment, including, without limitation, its
     obligations pursuant to section 4.4 hereof.

1.5  In addition to, and not in limitation of, the foregoing, Dade shall have
     the option to transfer the manufacture of the Product known as Behring
     Coagulation System (BCS) from Messer to Brookfield at any time after
     December 31, 2003.

1.6  Messer agrees to provide to Brookfield or any other facility designated by
     Dade spare parts and components for BN Prospec and any other transferred
     Products as required and ordered by Dade from time to time.  Prices for
     such spare parts and components shall be in accordance with the terms of
     section 7 of this Amendment.

1.7  Dade agrees to purchase from Messer, and Messer agrees to provide to Dade,
     all material that Messer itself has purchased for use in 2001 in connection
     with BN Prospec manufacturing and spare parts requirements, at Messer's
     cost less the amount required by Messer to manufacture certain quantities
     of instruments; provided, however, that all such material shall be useable
     and the purchased quantities shall be generally in line with Dade forecasts
     made to Messer.

                                   Article 2
                         Products Remaining at Messer

2.1  All Products other than BN Prospec which are currently manufactured by
     Messer pursuant to the Agreement and set out on Annex 1.1(a) thereto shall
     continue to be manufactured by Messer through the life of the respective
     Products or as otherwise agreed by Dade and Messer; subject, however, to
     the additional terms set out below.

2.2  The reference to the Behring Nephelometer 100 (BN 100) is hereby deleted
     from Annex 1.1(a) to the Agreement. The reference to New Small Analyzer
     (NSA) is hereby also deleted from Annex 1.1(a) as this is an earlier
     designation for BN Prospec. The references to Behring Elisa Processor II
     Plus (BEP II Plus) and Behring Fibrintimer A (BFA) shall remain on Annex
     1.1(a), but the parties acknowledge and agree that production of these
     products has ceased and only refurbishment and re-manufacturing work is
     carried out from time to time with respect thereto.

2.3  Dade agrees that Messer shall be its exclusive supplier of category II sub-
     assemblies, each as more fully described on Schedule 2 attached hereto, for
     a minimum period of three (3) years from the date of this Amendment,
     subject to (i) Messer's  timely meeting of the milestones set forth on
     Schedule 1 and (ii) Messer's continuing to meet its quality and continuity
     of supply obligations pursuant to the Agreement as amended hereby. In the
     event of such failure(s) by Messer, provided that such failure has a
                                         --------------------------------
     material adverse effect on the transition process or the implementation of
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     the Agreement as amended hereby, Dade shall have the option of reducing
     -------------------------------
     such three-year commitment for production of the category II sub-assemblies
     to any shorter period as it shall deem appropriate.  Dade shall have the
     option at the end of such period, whether it be three (3)

                                       2
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     years or less, to transfer manufacture and supply of these sub-assemblies
     to Brookfield, to another facility or facilities, or to an outside supplier
     in its sole discretion.

2.4  The reference to New Small Analyzer (NSA) in Annex 7.2 to the Agreement is
     hereby deleted.

                                   Article 3
                       Transition Support for BN Prospec

3.1  Messer shall use its best efforts to provide all necessary or desirable
     assistance and support to Dade relating to the transfer of know-how,
     practices and information as contemplated by Articles 1 and 2 of this
     Amendment.

3.2  Further to section 3.1 above, Messer agrees to provide Dade with all
     relevant documentation and other materials  necessary or desirable in
     connection with the transition of manufacturing to Brookfield.  Such
     documentation shall include, without limitation, drawings, specifications,
     manufacturing details, instructions, test procedures, supplier
     specifications, supplier listings, SOPs, process instructions, and any
     other relevant supplier information whether owned by Dade or by Messer.

3.3  Messer agrees to duplicate all manufacturing test fixtures, jigs or other
     equipment required for manufacturing of the transferred Products and to
     provide these to Dade at the Brook field or any other designated facility.

3.4  Messer agrees to provide specialist personnel as appropriate to assist in
     the transfer of know-how to Dade and to train Brookfield personnel either
     at Brookfield or at Schwalbach as the parties may agree.

3.5  Each of the undertakings described in this Article 3 shall be billed to
     Dade at the level of Messer's cost; provided, however, that the total
     amount billed to Dade for the same shall not exceed $300,000, with the sole
     exception that Dade shall pay for costs incurred by Messer above the
                         -----
     $300,000 threshold if such additional costs are directly attributable to
     Dade's failure to meet an agreed deadline pursuant to this Amendment and if
     such delay has a material adverse effect on Messer's transition support
     costs.

3.6  Notwithstanding the provisions of section 3.5 above, if Dade is able to
     provide new business as described in Article 6 hereof, then Messer shall
     absorb the costs described in sections 3.2 and 3.4 above.  The costs
     described in section 3.3 above shall be absorbed by Dade (subject to
     section 3.5) regardless of its provision of new business as described in
     Article 6.2.

3.7  Subject to Section 4.4 below, all of the transition support services
     referred to in this Article 3, and the costs and obligations incurred in
     connection therewith, relate exclusively to BN Prospec.

                                       3
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                                   Article 4
                          Ongoing Messer Obligations

4.1  Messer agrees to maintain an effective manufacturing environment that is
     fully compliant with all governmental regulations in support of the
     activities contemplated by the Agreement and this Amendment.  To this end,
     Messer guarantees that Messer's Schwalbach Plant will remain fully
     operational for a period lasting at least through December 31, 2004,
     provided that Dade's business with Messer amounts to at least 15 million DM
     in 2003 and 10 million DM in 2004, including in each case all instrument
     and parts purchases.  If such levels are not maintained and Messer
     therefore decides to close the Schwalbach Plant, it shall provide Dade with
     prior written notice equal to the period covered by Dade's then-current
     volume forecast or eighteen (18) months, whichever is shorter.  In
     addition, in such case, the same terms expressed in section 4.3 for
     shutdown after December 31, 2004 shall apply to shutdown prior to December
     31, 2004 pursuant to this section 4.1.

4.2  Regardless of volume reductions in Dade's business with Messer and
     notwithstanding section 4.1 above, in no event shall the Schwalbach Plant
     be closed earlier than December 31, 2003, provided that Dade's business
     with Messer amounts to at least 15 million DM in 2002.

4.3  In the event of a shutdown of Messer's Schwalbach Plant after December 31,
     2004, provided that manufacturing for Dade is still carried out at the
     Plant, the existing terms of the Agreement, as modified by this Amendment,
     regarding notification and transition support shall apply.  In addition,
     Messer expressly agrees and acknowledges that all costs of such shutdown
     shall be at Messer's expense.  Such costs include, without limitation,
     payment of retention bonuses, severance, relocation costs, scrap, lease
     costs, and unabsorbed overhead.

4.4  Messer agrees and guarantees to maintain a high quality of production and
     continuity of supply in support of each of the activities contemplated by
     the Agreement and this Amendment.  Provided that Messer fails to meet its
     obligations pursuant to the preceding sentence and that such failure has a
     material adverse effect on the transition process or the implementation of
     the Agreement as amended hereby, Dade shall have the option of transferring
     any other manufacturing then carried out by Messer for Dade to any other
     facility or facilities selected by Dade unless Messer is able to remedy the
     situation within ninety (90) days of receipt of written notice thereof. In
     such event, Messer shall be obliged to support the transfer of any Products
     according to the same terms as are set forth in Article 3 with respect to
     BN Prospec.  With respect to its specific obligations under this section
     4.4, Messer shall maintain its level of performance (including both product
     delivery and field reliability) at a level at least equal with its levels
     for the same quarter during 1999 (subject to the permitted monthly
     deviations set forth in section 4.1 of the Agreement). It shall be Messer's
     responsibility to demonstrate, at quarterly intervals, commencing three (3)
     months from the date of signature of this Agreement, that its performance
     post-1999 is at least equal with its  performance for the respective
     quarter of 1999, as approved by Dade.

4.5  Messer expressly agrees to do everything within its power to prevent any of
     its obligations under the Agreement or this Amendment from being
     jeopardised, compromised or unfulfilled in any way as a result of work
     force, labour union, or personnel difficulties at the Messer Schwalbach
     facility or any other location utilised by Messer in connection therewith.
     In addition, Messer  agrees, whenever a situation exists which is likely to
     result in production or supply interruption, to provide Dade with  written
     reports summarising its current relationship with its works councils and
     describing in detail the circumstances leading to such situation. Included
     in each such report shall be a detailed statement by Messer regarding its
     actions taken or proposed to be taken to remedy any existing or foreseen
     difficulties.

4.6  In order to facilitate Dade's assessment of Messer's performance under the
     Agreement as amended hereby, Messer shall, no later than three (3) business
     days prior to each scheduled quarterly meeting of the parties (as the same
     are provided for in section 4.1 of the Agreement), provide to Dade a
     written report setting forth manufacturing details, production volume,
     anticipated delays, and such other information as Dade shall request with
     respect to each of the Products manufactured and/or supplied by Messer to
     Dade during the immediately preceding full calendar quarter and the current
     calendar quarter to date. The parties agree

                                       4
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     to use the occasion of their scheduled quarterly meetings to resolve any
     issues identified in such reports, as well as to determine rolling
     forecasts for Products in accordance with section 4.1 of the Agreement.

4.7  Messer shall maintain complete, clear and accurate books and records
     documenting all activities regarding its performance under the Agreement as
     amended hereby to the extent necessary to enable Dade and its auditors and
     examiners to conduct audits and examinations of bills and invoices
     submitted to Dade.  During the term of the Agreement and for three (3)
     years afterward, Dade may, upon at least two (2) weeks' written notice,
     have its duly authorised representatives, agents or accountants examine
     such books and records and conduct such other reasonable investigations for
     the purposes of determining the accuracy of Messer's charges billed to or
     paid by Dade. All such audits and examinations shall be conducted during
     normal business hours and in a manner that does not unreasonably interfere
     with Messer's business operations.  If any such audit discloses that Messer
     overbilled Dade by more than five percent (5 %) and that Dade actually paid
     such excess amount,  then Messer shall pay to Dade the costs of such audit
     or the amount by which Messer was overpaid by Dade, whichever is greater.

4.8  Messer shall continue to be responsible for warranty costs for instruments
     or parts it produces as per sections 12.2 and 12.3 of the Agreement.  At
     the point when Messer ceases to produce BN Prospec instruments for Dade, it
     shall no longer be responsible for warranty costs for such instruments. At
     the point when full manufacture of BN Prospec instruments and spare parts
     transfers to Dade's Brookfield facility from Messer's Schwalbach facility,
     the parties will enter into an agreement relating to Messer's obligation
     for instruments and spare parts it produced through the term of the then
     existing warranty period.  The parties hereby agree, without now selecting
     one option over the other or excluding either one of them, that the
     following are to be options for such agreement:

     (a) Messer continues to process all defective material under warranty
     returned to it by Dade, and to repair or replace, as necessary, such
     material in line with its then current practices; and

     (b) At the point when its infrastructure for supporting BN Prospec is no
     longer viable, Messer reimburses Dade for all warranty costs, on an event
     basis or by means of lump sum payment based on an estimate of future
     warranty costs jointly developed by the parties.

4.9  Whenever the quality of a Product supplied hereunder or under the Agreement
     is deficient and is attributable to Messer workmanship, parts, or a Messer
     supplier, Messer shall be liable to Dade therefor.  Messer shall in such
     case observe all of its applicable warranty obligations  under the
     Agreement and this Amendment.

                                   Article 5
                         Excess and Obsolete Materials

5.1  As of the date of this Amendment, Dade shall be responsible for the costs
     of any excess material (that is not reasonably usable) which results from
     specific Dade forecasts which have turned out to be substantially greater
     than actual Dade purchases from Messer.

5.2  As of the date of this Amendment, Dade shall also be responsible for
     obsolescence costs which result directly from any design changes originated
     by Dade and  in connection with which a strategy of using up existing stock
     was expressly rejected by Dade.

5.3  Dade shall only be responsible for the costs described in sections 5.1 and
     5.2 above if Messer notifies Dade of such costs, and provides documentation
     reasonably satisfactory to Dade in support thereof, within one hundred and
     eighty (180) days of such cost occurrence.

5.4  All other costs related to excess or obsolete materials shall be borne by
     Messer.

                                       5
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5.5  This Amendment shall render null and void, and Messer hereby expressly
     waives, any other claims by Messer against Dade for costs of excess or
     obsolete material, which claims are based on facts existing or events
     occurring prior to the date of this Amendment.

                                   Article 6
                                 New Business

6.1  Dade agrees to use its reasonable efforts to assist Messer in finding new
     business for the Schwalbach Plant by acting as a reference if requested by
     Messer, or by providing Messer with information about potential new
     business about which Dade may become aware.

6.2  If Dade is able to provide Messer with incremental new refurb business in
     an amount of US$ 1 million or more per year for the years 2001 and 2002,
     then Messer agrees to absorb the full costs and expenses described in
     section 3.5 hereof.

                                   Article 7
                                    Pricing

7.1  Messer agrees and guarantees to Dade that there shall be no increase in
     prices for manufacture and supply of Products (including all Instruments,
     Spare Parts, sub-assemblies and refurbs) over the prices in effect as of
     the date of this Amendment  until December 31, 2002.  Thereafter,  the
     terms of the Agreement as amended by this Amendment shall apply with
     respect to price adjustments.

7.2  Notwithstanding the foregoing, the existing pricing terms may be adjusted
     otherwise by the parties as follows:

     a. Spare Parts for BN Prospec shall be negotiated at prices lower than
     those in effect currently;

     b. Prices may be adjusted with respect to certain purchase discounts where
     such discount is predicated on a certain purchase volume and such volume is
     reduced from 2000 levels by twenty percent (20%) or more;

     c. If the direct cost of Spare Parts to Messer increases due to loss of
     volume discounts or end of life substitution, and such costs are proved to
     be attributable to Dade, then Dade shall agree to price adjustments
     proportional to such increases, until December 31, 2002, for cost increases
     greater than eight percent (8%);

     d. The existing volume/price reduction terms still apply for BN Prospec;

     e. Prices may be increased based on documented price increases for the
     purchased personal computers  which accompany Dade's ordered Instruments;

     f. Messer and Dade agree to continue work on value engineering and
     successful results from such work shall be shared on a 50-50 basis by the
     two parties;

     g. Direct purchase costs may be increased in line with specific engineering
     changes initiated by Dade Engineering, if such changes actually and
     directly result in higher manufacturing costs.  The occurrence of such
     increased costs shall be determined as follows:  Messer shall compile and
     implement engineering changes initiated by Dade Engineering and,
     periodically, negotiate increased prices with Dade's Purchasing Department
     based on the collective cost increase resulting from such engineering
     changes as calculated for the period in question.

                                   Article 8

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<PAGE>

                Additional Remedies and Performance Guarantees

8.1  Messer acknowledges that one of the business objectives behind Dade's
     decision to enter into this Amendment is to ensure and optimise Messer's
     manufacturing and supply obligations under the Agreement. To this end, in
     addition to any other remedies Dade has under the Agreement or this
     Amendment, the parties agree to implement a liquidated damages program
     ("Liquidated Damages") in the event of Messer's failure to adequately
     perform. Messer expressly agrees that Dade may exercise its right to
     Liquidated Damages within six (6) months after any of the following occurs
     (subject to the notice provisions of the Agreement as amended hereby),
     without having to resort to or exhaust any other remedies available to it,

     but only if such occurrence has a material adverse effect on the transition
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     process or the implementation of the Agreement as amended hereby: if
     ----------------------------------------------------------------
     Messer fails to (i) implement the transition procedures set forth on
     Schedule 1 hereto in the manner and by the dates specified by Dade, (ii)
     manufacture and supply the sub-assemblies in accordance with Schedule 2
     attached hereto, (iii) provide transitional support as specified in Article
     3 hereof, (iv) observe its ongoing obligations as specified in Article 4
     hereof, (v) meet its manufacturing and supply obligations as agreed by the
     parties at scheduled quarterly meetings or as otherwise agreed from time to
     time, (vi) observe the pricing terms agreed by the parties from time to
     time, or (vii) observe the competitive constraints as specified in Article
     8 hereof, then Messer shall pay to Dade as Liquidated Damages the amounts
     set forth on Schedule 3 attached hereto.

8.2  In the event that Messer's failure to perform entitles Dade to invoke its
     rights to Liquidated Damages, Dade may, at its option, demand payment of
     the specified Liquidated Damages amounts, or offset such amounts against
     any amounts otherwise due to Messer by Dade under the Agreement as amended
     hereby.

                                   Article 9
                            Competitive Constraints

9.1  Dade agrees to amend the existing Agreement terms regarding Messer's
     obtaining business competitive to Dade (including, without limitation,
     Article 8 thereof) such that  Messer may obtain additional business for its
     Schwalbach Plant, including business from competitors of Dade, provided
     that:

     a. Dade technology is not utilised in obtaining or conducting such business
     without Dade's permission;

     b. the terms and provisions of all existing confidentiality agreements
     relating to Dade technology continue to be observed; and

     c. Messer provides Dade with prior written notice of its intention to
     produce for a competitor of Dade, including the identity of such competitor
     and the material terms of such arrangement.

                                  Article 10
                           Miscellaneous Provisions

10.1 The parties agree and acknowledge that, in connection with the execution
     of this Amendment, all relevant notice and/or termination terms of the
     Agreement have either been complied with or are hereby expressly waived by
     each of the parties.

10.2 Sections 7.2 and 7.3 of the Agreement are hereby deleted in their
     entirety. Section 7.6 shall be retained, subject to section 1.6 hereof.
     Section 7.7 is deleted save for its first sentence.  Section 7.1 shall be
     amended such that the last sentence thereof reads as follows:

     "If Dade and Messer agree to continue this Agreement beyond December 31,
     2007, either party may terminate this Agreement with or without cause
     thereafter with two (2) years' prior written notice to the end of a
     calendar quarter and an appropriate transition plan shall be submitted by
     the terminating party to the other party for negotiation."

                                       7
<PAGE>

10.3 With respect to each of the parties, the notice provisions in section 17.2
     of the Agreement shall be amended  as follows:

     Under "Notices to Messer", the name of the company is hereby amended to
     read "Messer Cutting and Welding AG".  In addition, for all Messer
     addresses provided, correspondence shall be directed to the attention of
     Dr. Rudiger Simonek rather than Dr. Michael Rornberg.

     Under "Notices to Behring", the reference to Behring Diagnostics GmbH at
     Marburg, Germany is hereby deleted. Primary notice, as opposed to copies,
     shall hereafter be provided to Dade International Inc. at the Deerfield,
     Illinois address already given, to the Mr. Donald Fuller, Senior Vice
     President, Global Manufacturing Operations.  The reference to Kirkland &
     Ellis at London, England is hereby deleted and replaced by a reference to
     Kirkland & Ellis at Chicago, Illinois.

10.4 Except as expressly set forth in this Amendment or as otherwise
     inconsistent with the actions contemplated by this Amendment, the terms of
     the Agreement shall remain unmodified and in full force and effect.

10.5 This Amendment may be executed in two or more counterparts, all of which
     taken together shall constitute the same document.

IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the date
first written above.

DADE BEHRING MARBURG GMBH

By: _________________________
    Name:  __________________
    Title: __________________

MESSER CUTTING AND WELDING AG

By: ___________________________
    Name:  ____________________
    Title: ____________________

                                       8
<PAGE>

                                  SCHEDULE 1

                             TRANSITION PROCEDURES

Transition Activity                               Completion Date
-------------------                               ---------------

1.  Messer to announce BN Prospec                 September 30, 2000
transfer to Messer employees, including
notice to and consultation with relevant
Works Council

2.  Messer to identify and announce Messer
team members                                      October 27, 2000

3.  Messer project members participate            November 13, 2000
in project kick-off meeting

4.  Messer ready to conduct first Brookfield      November 22, 2000
assembler training at Schwalbach

5.  Messer completes transfer of documentation    December 1, 2000
to Brookfield per section 3.2 of Amendment

6.  Messer prepared for critical evaluation of    December 15, 2000
pilot builds at Schwalbach

7.  Messer delivers all required BN Prospec       February 2, 2001
raw materials and sub-assemblies to
Brookfield

8.  Messer provides all information, documents    April 8, 2001
training etc. to transfer raw material planning/
ordering responsibility to Brookfield

9.  Messer completes beta-build training of       May 11, 2001
Dade employees at Brookfield

                                       9
<PAGE>

                                  SCHEDULE 2

                          CATEGORY II SUB-ASSEMBLIES

Dilutor
Pipetting Systems
Sample Unit
Reagent Unit
Measuring Unit
Optics

In contrast to Category I Sub-Assemblies, the above sub-assemblies consist of
nearly 200 different designed parts. More than 130 parts are cast or molded; the
other parts come from different suppliers in Germany and Eastern Europe.

Due to the required quality, in many cases a close communication between
supplier and instrument manufacturer is mandatory.

In addition, two sub-assemblies (dilutor; optics) are also used in other
instruments (BN 2; BN 100; BCS).

VOP is approximately DM 8,000.

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<PAGE>

                                  SCHEDULE 3

                              LIQUIDATED DAMAGES

Event/Breach                            Damages in  $US Dollars
------------                            -----------------------

Failure to Implement                      50,000
Transition Procedures
per Schedule 1

Failure to Comply with                    20,000
Schedule 2 (Sub-Assemblies)

Failure to Provide                        50,000
Transitional Support
per Article 3

Failure to Observe                        50,000
Ongoing Obligations per
Article 4

Failure to Meet Supply                    50,000
Obligations per Quarterly
Meetings

Failure to Observe Pricing                25,000
Terms

Failure to Observe Competitive            25,000
Constraints per Article 9

Any Other Breaches of                     50,000
Agreement as Amended

                                       11<PAGE>

                                                                    EXHIBIT 10.5

                             EMPLOYMENT AGREEMENT
                             --------------------

          THIS EMPLOYMENT AGREEMENT (this "Agreement") effective as of September
                                           ---------
1, 2000, between Dade Behring, Inc., a Delaware corporation (the "Company"), and
                                                                  -------
James Reid-Anderson ("Executive").
                      ---------

          The Company is a wholly-owned subsidiary of Dade Behring Holdings,
Inc., a Delaware corporation ("Holding").  Holding and Executive are parties to
                               -------
an Executive Agreement dated as of the date hereof (the "Executive Agreement")
                                                         -------------------
pursuant to which Holding will grant Executive options to acquire shares of
Holding's capital stock.

          In consideration of the mutual covenants contained herein and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

          1.   Employment.  The Company shall employ Executive, and Executive
               ----------
hereby accepts employment with the Company, upon the terms and conditions set
forth in this Agreement for the period beginning on September 1, 2000 and ending
as provided in paragraph 4 hereof (the "Employment Period").
                                        -----------------

          2.   Position and Duties.
               -------------------

          (a)  During the Employment Period, Executive shall serve as the
President and Chief Executive Officer of the Company and shall have the normal
duties, responsibilities and authority of the President and Chief Executive
Officer, subject to the overall direction and authority of the Board of
Directors.  In addition, so long as he is Chief Executive Officer of Holding,
the Executive shall be appointed to the board of directors of Holding and the
board of directors of the Company (so long as the Company remains the principal
operating subsidiary of Holding).  At the time he ceases to be the Chief
Executive Officer of Holding, Executive shall resign from the board of directors
of Holding.

          (b)  Executive shall report to the Board of Directors, and Executive
shall devote his best efforts and his full business time and attention to the
business and affairs of the Company and its Subsidiaries; provided, that nothing
in this paragraph 2(b) shall prohibit Executive from devoting a reasonable
amount of business time and attention to directorships and charitable or other
activities.

          (c)  For purposes of this Agreement, "Subsidiaries" shall mean any
                                                ------------
corporation of which the securities having a majority of the voting power in
electing directors are, at the time of determination, owned by the Company,
directly or through one or more Subsidiaries.

          3.   Base Salary and Benefits.
               ------------------------

          (a)  During the Employment Period, Executive's base salary shall be
$600,000 per annum and shall be subject to review by the Board of Directors on
an annual basis commencing
<PAGE>

July 1, 2001 (the "Base Salary"), which salary shall be payable in regular
                   -----------
installments in accordance with the Company's general payroll practices and
shall be subject to customary withholding. In addition, during the Employment
Period, Executive shall be entitled to participate in all of the Company's
employee benefit programs for which senior executive employees of the Company
and its Subsidiaries are generally eligible.

          (b)  The Company shall reimburse Executive for all reasonable expenses
incurred by him in the course of performing his duties under this Agreement
which are consistent with the Company's policies in effect from time to time
with respect to travel, entertainment and other business expenses, subject to
the Company's reasonable requirements with respect to reporting and
documentation of such expenses.

          (c)  In addition to the Base Salary, during each year during the
Employment Period commencing with the fiscal year ending December 31, 2000,
Executive will be eligible to earn an annual target bonus of $500,000 to be
based upon specific bonus targets to be established on an annual basis by the
Board (with specific overachievement opportunities to be made available in the
sole discretion of the Board); provided that with respect to the fiscal year
ending December 31, 2000, Executive's annual target bonus will be based upon (x)
a pro rata portion of 80% of $450,000 for the period ending August 31, 2000 and
(y) a pro rata portion of $500,000 for the period from September 1, 2000 through
December 31, 2000 (subject to achievement of the annual targets for the year).
Such bonus targets will generally focus on EBITDA, capital expenditure levels
and working capital targets, as established on an annual basis by the Board.

          (d)  In addition, Executive will be entitled to (i) four (4) weeks
paid vacation each year during the Employment Period, in accordance with Company
policy, (ii) an annual sum of $24,000, payable monthly, as an allowance to cover
expenses for the use of Executive's own automobile for business purposes, and
(iii) reimbursement (including an appropriate tax gross-up) for business class
family leave travel and personal financial and legal consulting expense
reimbursement in line with Company's senior executive program.

          (e)  In addition, Executive will be considered for grants of stock
options by Holding for which senior executive employees of the Company and its
Subsidiaries are generally eligible, which grants will be at sole discretion of
the Board.

          4.   Term.
               ----

          (a)  The Employment Period (i) shall terminate upon Executive's
resignation without Good Reason (as defined below), death or Disability (as
defined below), (ii) may be terminated by the Company at any time for Cause (as
defined below) or without Cause and (iii) may be terminated upon Executive's
resignation for Good Reason.

          (b)  If the Employment Period is terminated by the Company without
Cause or by Executive for Good Reason during the term of this Agreement,
Executive shall be entitled to (i) receive his Base Salary described in Section
3(a) above, (ii) receive the benefits described in Sections 3(d)(ii) and
3(d)(iii) above and (iii) participate in the Company's health program for which

                                      -2-
<PAGE>

senior executive employees of the Company and its Subsidiaries are generally
eligible, in each case, for 24 months after the date of such termination. In
addition, if the Employment Period is terminated by the Company without Cause,
by Executive for Good Reason or due to Executive's death or Disability during
the term of this Agreement, Executive shall be entitled to receive a bonus equal
to the bonus Executive would had received had he remained employed for the
entire bonus period (the amount to be determined by the Board in good faith),
pro rated based on the number of days that have elapsed during the year through
the date of termination (and payable in accordance with normal Company policy).
Any such amounts payable under this Section 4(b) will be payable at such times
and in such amounts as would have been payable had Executive not been
terminated. Notwithstanding anything in this Agreement to the contrary, the
Company shall have no obligation to pay any amounts payable under this Section
4(b) during such times as Executive is in material breach of any provision of
this Agreement (including, without limitation, that certain Employment Agreement
Addendum dated as of the date hereof between the Company and Executive (the
"Employment Agreement Addendum")) or any provision of the Executive Agreement.
 -----------------------------
As a condition to the Company's obligations (if any) to make severance payments
pursuant to this paragraph 4(b), Executive will execute and deliver a general
release in form and substance satisfactory to the Company, except that the
Company shall be obligated to pay amounts due and owing to Executive as
expressly provided by this Agreement.  In addition to the amounts described
above, in the event the Employment Period is terminated by the Company without
Cause, by Executive for Good Reason or due to Executive's death or Disability,
with respect to any time-based stock options issued to Executive by Holding, the
date of Executive's termination for purposes of all vesting schedules shall be
deemed to be immediately after the next succeeding vesting date. Notwithstanding
anything in Holding's option plans to the contrary, solely in the case of
Executive's death or Disability, the exercise period for each of Executive's
options shall be extended to the earlier of (x) the 12-month anniversary of the
date of termination of Executive's employment, and (y) the date on which each
such option otherwise would have expired had Executive remained employed with
the Company (including, without limitation, any acceleration event required by
the plan such as a change in control event).

          (c)  If the Employment Period is terminated by the Company for Cause
or is terminated pursuant to clause (a)(i) above, Executive shall be entitled to
receive his Base Salary through the date of termination.

          (d)  Except as otherwise provided in this Agreement, all of
Executive's rights to fringe benefits and bonuses hereunder (if any) which
accrue or become payable after the termination of the Employment Period shall
cease upon such termination. The Company may offset any amounts Executive owes
it or its Subsidiaries against any amounts it owes Executive hereunder.

          (e)  For purposes of this Agreement, "Disability" (i) shall mean any
                                                ----------
physical or mental incapacitation which results in Executive's inability to
perform his duties and responsibilities for the Company for a total of 180 days
during any twelve-month period, as determined by the Board in its good faith
judgment and (ii) shall be deemed to have occurred on the 180th day of such
inability to perform.

                                      -3-
<PAGE>

          (f)  For purposes of this Agreement, "Cause" shall mean (i) the
                                                -----
intentional disregard of a written direction from the Board of Directors to
Executive to which Executive has not objected within ten (10) business days of
receiving such written direction, which intentional disregard is materially
injurious to the Company or any of its affiliates, (ii) the knowing and
intentional theft by Executive of property of the Company or any of its
affiliates, which property has a substantial value, (iii) the commission by
Executive of an act of moral turpitude which is materially injurious to the
Company or any of its affiliates or (iv) any material breach of this Agreement
(including, without limitation, the Employment Agreement Addendum) or any
material breach of the Executive Agreement.

          (g)  For purposes of this Agreement, "Good Reason" shall mean (i) any
                                                -----------
substantial reduction of Executive's duties, without Executive's written
consent, (ii) a reduction by the Company of Executive's Base Salary, as in
effect on the date hereof or as the same may be increased from time to time,
(iii) the Executive's removal (without his consent) from the board of directors
of Holding or the board of directors of the Company (so long as the Company
remains the principal operating subsidiary of Holding) or (iv) the Executive
being required, without his consent, to move his primary place of business
outside of the greater Chicago area.

          (h)  Executive shall have the benefit of indemnification for acts
undertaken on behalf of the Company to the fullest extent provided under the
Company's bylaws and the laws of the State of Delaware.  In addition, the
Company agrees to maintain D&O insurance coverage during the Employment Period
for the benefit of Executive, in amounts not less than the coverage in effect on
the date hereof.  In addition, the Company shall provide supplemental disability
coverage under the same co-payment conditions as the Company's group plan for
Executive such that his aggregate annual disability benefit from the Company is
equal to (x) 70% of his most recent base salary, plus (y) his annual target
bonus, subject to the terms of the supplemental LTD benefits coverage the
Company is able to obtain on Executive's behalf and the ability of the Company
to obtain the coverage on reasonable terms.

          5.   Employment Agreement Addendum.  Each of the parties hereto
               -----------------------------
acknowledges and agrees that the Employment Agreement Addendum which is attached
hereto and is made a part hereof is an integral part of this Agreement and that
the Company would not be willing to enter into this Agreement and provide
Executive with the substantial benefits provided herein without Executive's
agreement to enter into and become bound by the terms and conditions of the
Employment Agreement Addendum, including the Conflict of Interest,
Confidentiality, Non-Competition and Intellectual Property Rights provisions
thereof.

          6.   Executive's Representations.  Executive hereby represents and
               ---------------------------
warrants to the Company that (i) the execution, delivery and performance of this
Agreement by Executive does not and will not conflict with, breach, violate or
cause a default under any contract, agreement, instrument, order, judgment or
decree to which Executive is a party or by which he is bound, (ii) Executive is
not a party to or bound by any employment agreement, noncompete agreement or
confidentiality agreement with any other person or entity and (iii) upon the
execution and delivery of this Agreement by the Company, this Agreement shall be
the valid and binding obligation of Executive, enforceable in accordance with
its terms.  Executive hereby acknowledges and represents

                                      -4-
<PAGE>

that he has consulted with independent legal counsel regarding his rights and
obligations under this Agreement and that he fully understands the terms and
conditions contained herein.

          7.   Survival.  The terms and conditions of the Employment Agreement
               --------
Addendum shall survive and continue in full force in accordance with their terms
notwithstanding any termination of the Employment Period.

          8.   Notices.  Any notice provided for in this Agreement shall be in
               -------
writing and shall be either personally delivered, sent by reputable overnight
courier or mailed by first class mail, return receipt requested, to the
recipient at the address below indicated:

          Notices to Executive:
          --------------------

          James Reid-Anderson
          1160 North Sheridan Road
          Lake Forest, IL 60045

          Notices to the Company:
          ----------------------

          Dade Behring, Inc.
          1717 Deerfield Road
          Deerfield, Illinois 60015
          Attn: Steven Barnes
                John Connaughton
                Robert Maple

          With a copy to:
          --------------

          Kirkland & Ellis
          200 East Randolph Drive
          Chicago, Illinois 60601
          Attn:  Matthew E. Steinmetz

or such other address or to the attention of such other person as the recipient
party shall have specified by prior written notice to the sending party.  Any
notice under this Agreement shall be deemed to have been given when so
delivered, deposited with such courier or mailed.

          9.   Severability.  Whenever possible, each provision of this
               ------------
Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect
any other provision or any other jurisdiction, but this Agreement shall be
reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.

                                      -5-
<PAGE>

          10.  Complete Agreement.  This Agreement, those documents expressly
               ------------------
referred to herein and other documents of even date herewith embody the complete
agreement and understanding among the parties and supersede and preempt any
prior understandings, agreements or representations by or among the parties,
written or oral, which may have related to the subject matter hereof in any way.

          11.  No Strict Construction.  The language used in this Agreement
               ----------------------
shall be deemed to be the language chosen by the parties hereto to express their
mutual intent, and no rule of strict construction shall be applied against any
party.

          12.  Counterparts.  This Agreement may be executed in separate
               ------------
counterparts, any one of which may be by facsimile and each of which is deemed
to be an original and all of which taken together constitute one and the same
agreement.

          13.  Successors and Assigns.  This Agreement is intended to bind and
               ----------------------
inure to the benefit of and be enforceable by Executive, the Company and their
respective heirs, successors and assigns, except that Executive may not assign
his rights or delegate his obligations hereunder without the prior written
consent of the Company.

          14.  Choice of Law.  All issues and questions concerning the
               -------------
construction, validity, enforcement and interpretation of this Agreement and the
exhibits and schedules hereto shall be governed by, and construed in accordance
with, the laws of the State of Illinois, without giving effect to any choice of
law or conflict of law rules or provisions (whether of the State of Illinois or
any other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of Illinois.

          15.  Amendment and Waiver.  The provisions of this Agreement may be
               --------------------
amended or waived only with the prior written consent of the Company and
Executive, and no course of conduct or failure or delay in enforcing the
provisions of this Agreement shall affect the validity, binding effect or
enforceability of this Agreement.

                             *    *    *    *    *

                                      -6-
<PAGE>

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

                                    DADE BEHRING, INC.

                                    By:  /s/ Stephen Pagliuca
                                         ---------------------------

                                    Its: __________________________

                                    /s/ James Reid-Anderson
                                    -------------------------------
                                    JAMES REID-ANDERSON

                                      -7-

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