Exhibit 10.1

 

 

CONFIDENTIAL TREATMENT REQUESTED

 

 

SECOND AMENDMENT TO SUPPLY AGREEMENT

 

This Second Amendment to Supply Agreement (the “Second Amendment”) is effective
as of the date last signed below (the “Second Amendment Date”) between Illumina,
Inc., a Delaware corporation having a place of business at 5200 Illumina Way,
San Diego, CA  92122 ("Illumina") and Natera, Inc., having a place of business
at 201 Industrial Road, Suite 410, San Carlos,
CA  94070   (“Customer”).   Customer and Illumina may be referred to herein as
“Party” or “Parties.”

 

WHEREAS, Illumina and Customer are Parties to a Supply Agreement having an
Effective Date of August 16, 2013, and amended on September 18, 2014
(“Agreement”); 

 

WHEREAS, the Parties have agreed upon certain amendments to the terms of the
Agreement regarding supplied products;  

 

NOW, THEREFORE, in consideration of the mutual promises and covenants
hereinafter set forth, the Parties hereto agree to amend the Agreement as
follows:

 

1.Amendment to Exhibit B – Illumina Hardware and Consumables. The Agreement is
hereby amended to delete Exhibit B in its entirety and add in its place new
Exhibit B set forth on Attachment 1 hereto.    

 

2. Entire Agreement. Except as expressly stated herein, this Second Amendment
does not alter any term or condition of the Agreement. This Second Amendment
including its attachments, represents the entire agreement between the Parties
regarding the subject matter hereof and supersedes all prior discussions,
communications, agreements, and understandings of any kind and nature between
the Parties regarding the subject matter hereof;  provided that ILMN Quotation
number 4005874 to Natera, dated September 16, 2015, remains in full force and
effect with respect to Natera Purchase Order #1059190, dated September 21, 2015,
which Purchase Order is contingent upon the signature of this Second Amendment.

 

3.Reference to Agreement. On and after the Second Amendment Date, each reference
in the Agreement to “this Agreement”, “hereunder”, or words of like import
referring to the Agreement shall mean and be a reference to the Agreement as
modified by this Second Amendment.

 

4.Governing Law.  This Second Amendment and performance by the Parties hereunder
shall be construed in accordance with the laws of the State of California,
U.S.A., without regard to provisions on the conflicts of laws.

 

5.Counterparts. This Second Amendment may be executed in one or more
counterparts, and each of which shall be deemed to be an original, and all of
which shall constitute one and the same instrument.

 

Page 1 of 8

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IN WITNESS WHEREOF, the Parties hereto acknowledge and agree to the terms and
conditions of this Second Amendment and have caused this Agreement to be
executed by their respective duly authorized representatives to be effective as
of the Second Amendment Date.

 

Natera, Inc.:

    

Illumina, Inc.:

 

 

 

 

 

 

By:

/s/ Solomon Moshkevich

 

By:

/s/ Jeffrey S. Eidel

 

 

 

 

 

Name:

Solomon Moshkevich

 

Name:

Jeffrey S. Eidel

 

 

 

 

 

Title:

VP Products & Strategy

 

Title:

VP, Corporate Development

 

 

 

 

 

Date:

September 23, 2015

 

Date:

9/22/15

 

Page 2 of 8

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ATTACHMENT 1

 

Exhibit B – Illumina Hardware and Consumables

 

Illumina Hardware (Equipment)

 

Only the Illumina Hardware listed on this Exhibit B is subject to purchase under
this Agreement.

 

Part Number

Description

Base Price

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

 

Illumina Hardware Purchase Price – Subject to exclusivity terms stated in
Exhibit A, Part 1, Paragraph 3(a), the purchase prices for Illumina Hardware
listed in the Table above are subject to a [*] discount. Accordingly, if the [*]
discount is applicable, then the purchase price for a unit of Illumina Hardware
listed above is calculated by multiplying the base price by [*]. 

 

Prior to the First Amendment Date, Customer submitted a purchase order for a [*]
Sequencing System. The Parties agree that the [*] Sequencing System purchased
prior to the First Amendment Date will be deemed to be “Existing Instrument”
under the Agreement on and after the First Amendment Date.

 

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*CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

 

Page 3 of 8

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Exhibit B (continued) – Illumina Hardware and Consumables

 

Consumables

 

Only the Consumables listed on this Exhibit B are subject to purchase under this
Agreement.

 

TG Consumables

 

Part Number

Description

Base Price

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

 

--------------------------------------------------------------------------------

*CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

 

Page 4 of 8

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Non-TG Consumables

 

 

 

 

Part Number

Description

Base  Price

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

 

Consumable Volume Discount: Based on Consumable Spend

 

 

 

 

 

TG Consumables

Non-TG Consumables

Consumable Spend

Discount off of Base Price

Discount off of Base Price

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

 

--------------------------------------------------------------------------------

*CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

 

Page 5 of 8

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Consumables Purchase Price

 

(A) Beginning on the Effective Date and ending on the First Amendment Date, the
purchase price for Consumables ordered on Purchase Orders submitted in
accordance with this Agreement during this period is equal to the base price for
Consumables listed in this Exhibit and, in all cases (including (1), (2), (3)
and (4) herein) subject to exclusivity terms stated in Exhibit A, Part 1,
Paragraph 3(a), less the discount in the table above corresponding to the
applicable Consumable Spend, provided that:

 

(1) for Consumable Spend that is $[*] and above during such period, the maximum
discount for TG Consumables is [*],  

 

(2) subject to part (3) herein, but otherwise notwithstanding anything in this
Agreement to the contrary, during such period Customer is entitled to purchase
Consumables in accordance with this Agreement at the base price in this Exhibit,
less (i) for TG Consumables, the discount that is the greater of [*] or the TG
Consumables discount in the table above corresponding to Customer’s actual
Consumable Spend and (ii) for non-TG Consumables, the discount that is the
greater of [*] or the Non-TG Consumables discount in the table above
corresponding to Customer’s actual Consumable Spend, and

 

(3) for Purchase Order numbers 103340 and 103341, dated August 1, 2014, and
Purchase Order numbers 103557 and 103558, dated September 1, 2014, and attached
hereto as Attachment 4, Illumina has agreed to a [*] discount off of the base
price, but only for the Products and quantities set forth on those two Purchase
Orders as of August 1, 2014, and two Purchase Orders as of September 1, 2014;
and

 

(4) for Purchase Order number 103342, dated August 1, 2014, and Purchase Order
number 103559, dated September 1, 2014, and also attached hereto as Attachment
4, Illumina has agreed to a [*] discount off of the base price, but only for the
Products and quantities set forth on those that Purchase Order as of August 1,
2014, and that Purchase Order as of September 1, 2014. 

 

(B) Beginning on the day after the First Amendment Date and ending on September
30, 2014 (end of Q3’14), the purchase price for Consumables ordered on Purchase
Orders submitted in accordance with this Agreement during this period is equal
to the base price for Consumables listed in this Exhibit and, in all cases
(including in all cases (i) and (ii) herein) subject to exclusivity terms stated
in Exhibit A, Part 1, Paragraph 3(a), less the discount in the table above
corresponding to the applicable Consumable Spend, provided that, notwithstanding
anything in this Agreement to the contrary, during such period Customer is
entitled to purchase Consumables in accordance with this Agreement at the base
price in this Exhibit, less (i) for TG Consumables, the discount that is the
greater of [*] or the TG Consumables discount in the table above corresponding
to Customer’s actual Consumable Spend and (ii) for non-TG Consumables, the
discount that is the greater of [*] or the Non-TG Consumables discount in the
table above corresponding to Customer’s actual Consumable Spend.

 

(C) Beginning on October 1, 2014 (start of Q4’14) and ending on expiration or
termination of this Agreement, the purchase price for Consumables ordered on
Purchase Orders submitted in accordance with this Agreement during this period
is equal to the base price for Consumables listed in this Exhibit and, in all
cases subject to exclusivity terms stated in Exhibit A, Part 1, Paragraph 3(a),
less the discount in the table above corresponding to the applicable Consumable
Spend.

 

“Consumable Spend” for Purchase Orders submitted prior to the First Amendment
Date equals (1) the total amount (minus freight, taxes, and any product credits
or offsets) Illumina has invoiced Customer for shipments of all Illumina
products (which includes services) to Customer during the 12 calendar months
that ended prior to the date a Purchase Order is due under the Agreement, which
includes Products purchased under this Agreement and Illumina products (which
includes services) purchased from Illumina outside of this Agreement, including
Illumina’s array products, plus (2) the total amount of NIPT Test Fees received
by Illumina from Customer during the 12 calendar months that ended prior to the
date a Purchase Order is due under the Agreement.

 

--------------------------------------------------------------------------------

*CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

Page 6 of 8

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“Consumable Spend” for Purchase Orders submitted after the First Amendment Date
and thereafter until expiration or termination of the Agreement, is determined
quarterly at the first day of each calendar quarter (i.e., January 1, April 1,
July 1, October 1), and equals (1) the total amount (minus freight, taxes, and
any product credits or offsets) Illumina has invoiced Customer for shipments of
all Illumina products (which includes services) delivered to Customer during the
12 calendar month period that immediately precedes such first day of a calendar
quarter under this Agreement, which includes Products purchased under this
Agreement and Illumina products (which includes services) purchased from
Illumina outside of this Agreement, including Illumina’s array products, plus
(2) the total amount of NIPT Test Fees received by Illumina from Customer during
the same 12 calendar month period.

 

Notwithstanding the foregoing, the only consumable products that can be
purchased at the discounts listed in his Exhibit are the Consumables purchasable
under this Agreement.

 

By way of example, the purchase price for Consumables purchased on Purchase
Orders submitted in accordance with this Agreement during the first calendar
quarter of 2015  (the period January 1, 2015 through March 31, 2015) is equal to
the base price for Consumables listed in this Exhibit and, subject to
exclusivity terms stated in Exhibit A, Part 1, Paragraph 3(a), less the discount
in the table above corresponding to the Consumable Spend amount calculated by
adding (1) the total amount (minus freight, taxes, and any product credits or
offsets) Illumina invoiced Customer for shipments of all Illumina products
delivered to Customer during the period January 1, 2014 through December 31,
2014 and (2) the total amount of NIPT Test Fees received by Illumina from
Customer during the same period of January 1, 2014 through December 31, 2014.

 

Attached as Attachment 1 to this Second Amendment is a certification that
Customer is, and has been since the Effective Date up to the later of the date
of Customer’s signature on the certification or the Second Amendment Date,
exclusively using Illumina TG Consumables and Temporary Consumables and Illumina
Hardware for all NIPT Uses other than as permitted by the last sentence of
Exhibit A, Part 1, Section 3(a).

 

Page 7 of 8

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ATTACHMENT 2

 

Certification Regarding Exclusivity

 

The undersigned certifies that he/she is an officer of Natera and is authorized
to, and hereby does, certify that from the Effective Date of the Agreement to
the Second Amendment Date, Natera has exclusively used Illumina TG Consumables
and Temporary Consumables and Illumina Hardware for all NIPT Uses performed by
Natera since the Effective Date other than as permitted by the last sentence of
Exhibit A, Part 1, Section 3(a).

 

 

/s/ Solomon Moshkevich

 

 

 

Name: Solomon Moshkevich

 

 

 

Title: VP Products & Strategy

 

 

 

Date: September 23, 2015

 

 

Page 8 of 8

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