The symbol [***] is used to indicate that a portion of the exhibit has been omitted and filed separately with the
Confidential treatment has been requested with respect to the omitted portion.
Applied Biosystems and Cepheid
THIS AGREEMENT ("Agreement") is made as of the 11th day of October, 2002 (the "Effective Date") and is by and
between Applera Corporation, a Delaware corporation, acting through its Applied Biosystems Group, with a place of
business at 850 Lincoln Center Drive, Foster City, CA 94404, U.S.A. ("ABI"), and Cepheid, a California corporation
with its principal place of business at 904 Caribbean Drive, Sunnyvale, CA 94089 ("Cepheid"). Cepheid and ABI are
sometimes referred to herein individually as a "Party," and collectively as the "Parties".
1.1 Supply to the USPS . ABI and Cepheid will each independently and working collaboratively seek to develop and
manufacture Products for use in Bio-Threat Agent Detection Systems. These Bio-Threat Agent Detection Systems
are intended to be provided to the USPS through agreements among the USPS, Northrop Grumman Security Services
("Northrop Grumman"), ETG (Environmental Technology Group, now known as Smiths-Detection Edgewood, Inc.),
and/ or Cepheid, and potentially others. These Bio-Threat Agent Detection Systems are intended to be used in
conjunction with the mail sorting machines used by the USPS, in order for the USPS to test for particular bio-threat
agents identified as being of interest to the USPS.
1.2 ABI Materials . The systems that are being provided are based on an assay called the 5' nuclease detection
process, a process employing in part the polymerase chain reaction ("PCR"), herein called Real-Time PCR. Due to
licensing constraints imposed by Roche Molecular Systems, Inc. and F. Hoffman La Roche Ltd ("collectively,
Roche"), the owner of some of the patents for the Real-Time PCR process, certain rules must be followed in order for