Conceptus and FlexMedical Essure Product Pricing Matrix Agreement (2010)
This agreement between Conceptus Inc. and FlexMedical Disposables sets out the pricing structure for the Essure product (ESS305) based on the quantity of product kits ordered. It details tiered pricing, price increases, and reductions tied to specific components and manufacturing changes, with certain adjustments applied retroactively or from specified dates in 2009 and 2010. The agreement is signed by executives from both companies and outlines key cost-saving measures and conditions for price changes.
Exhibit 10.3
Conceptus Pricing Matrix
Product Number: ESS305
Product Description: Essure Product
Last Update: 3/31/2010
| Tier Brackets |
| Product Kit Quantity |
| Original |
| Added PPV |
| Cost Reduction |
| Cost Reduction |
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| Tier 1 |
| 0 - 50,000 |
| $ | 114.78 |
| $ | 124.63 |
| $ | 121.15 |
| $ | 112.00 |
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| Tier 2 |
| 50,001 - 75,000 |
| $ | 111.28 |
| $ | 121.13 |
| $ | 117.65 |
| $ | 108.50 |
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| Tier 3 |
| 75,001 - 120,000 |
| $ | 105.10 |
| $ | 114.95 |
| $ | 111.47 |
| $ | 102.32 |
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| Tier 4 |
| 120,001+ |
| $ | 97.92 |
| $ | 107.77 |
| $ | 104.29 |
| $ | 95.14 |
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| Assumptions / Notes |
| 1 | The $9.85 price increase is retroactive to all 2009 shipments and continues through 3/31/2010 shipments |
| 2 | The $3.48 price reduction is a combination of a $2.06 price reduction from Stacks Plasctic and is retroactive to January 1st, 2010 and a $1.42 price reduction for switching to Medelec bands. The cost savings for switching to Medelec bands considers a 50/50 cost savings with FlexMedical. The new Medelec bands are estimated to be used on shipments starting 3/25/2010. |
| 3 | The $9.15 price reduction for FlexMedical manufactured coils is effective April 1st, 2010. |
| Approvals: |
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| Signature | /s/ Greg Lichtwardt |
| Date: | 4/19/2010 |
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| Greg Lichtwardt |
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| Executive Vice President, |
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| Operations, & Chief Financial Officer |
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| Conceptus Inc. |
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| Signature | /s/ Chris Faller |
| Date: | 4/16/2010 |
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| Chris Faller |
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| Vice President, Operations |
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| FlexMedical Disposables |
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