SEQUENOM INC
LETTER OF INTENT, MASS ARRAY
<DOCUMENT>
<TYPE>EX-10.48
<SEQUENCE>13
<FILENAME>0013.txt
<DESCRIPTION>LETTER OF INTENT, MASS ARRAY
<TEXT>

<PAGE>

                                                                   EXHIBIT 10.48

                                 CONFIDENTIAL

                   MassARRAY(TM) Distribution Contract Terms


                          SEQUENOM, Inc ("Sequenom")

                                      and

                   Nissei Sangyo Co., Ltd. ("Nissei Sangyo")


     Between, Nissei Sangyo Co., Ltd., ("Nissei Sangyo") a corporation duly
organized and existing under the laws of Japan having offices at 24-14, Nishi-
shimbashi, 1-chome, Minato-ku, Tokyo, 105-8717 Japan and Sequenom, Inc.
("Sequenom") a Delaware corporation having its principal place of business at
11555 Sorrento Valley Road, San Diego, California 92121-1331, U.S.A.
(collectively the "parties"); and

     Whereas, Sequenom is in the business of, among other things, designing,
developing, manufacturing and selling proprietary biopolymer analysis products
and related software and consumables; and

     Whereas, Sequenom has expertise in the development and utilization of mass
spectrometry for biopolymer analysis and has developed Sequenom's proprietary
MassARRAY(TM) products for high-throughput DNA analysis;

     Whereas, Nissei Sangyo and Sequenom desire to enter into a relationship
pursuant to which Sequenom will grant Nissei Sangyo certain rights to distribute
Sequenom's MassARRAY products and consumables throughout Japan and Nissei Sangyo
will actively market, sell, and service such products throughout Japan.

     Whereas, Sequenom and Nissei Sangyo would like to set forth the general
terms and conditions of such an arrangement in this binding Letter of Intent,
which upon execution, obligates the parties as follows:


1. General Terms

1.1  Exclusivity: Nissei Sangyo will act as Sequenom's exclusive distributor of
     MassARRAY systems, software and consumables in the Territory.

1.2  Field of Use: Sequenom grants Nissei Sangyo the right to sub-license
     MassARRAY technology for the field of individual DNA genotyping in the
     Territory under the condition that each new MassARRAY customer in the
     Territory shall sign a separate sub-licensing agreement consistent with the
     terms set forth in the distribution agreement.

     1.2.1  Sequenom grants Nissei Sangyo the right to sub-license MassARRAY to
            parties in the Territory for internal R&D purposes without
            additional
<PAGE>

            Sequenom consent provided that the party executes an R&D sub-
            licensing agreement.

     1.2.2  Sequenom grants Nissei Sangyo the right to sub-license MassARRAY to
            parties in the Territory for commercial purposes but only with
            Sequenom's prior written consent and provided that the party
            executes a commercial sub-licensing agreement. Such commercial
            sublicensing agreement will provide for royalty payments to Nissei
            Sangyo for such commercial use, with a portion thereof to be paid by
            Nissei Sangyo to Sequenom.

1.3  Territory: Territory for the contract is Japan.

1.4  Term: [...***...].

     1.4.1  Termination date is [...***...].

     1.4.2  Renewable on an annual basis thereafter upon mutual agreement.

1.5  Products: All new assays, instruments and software products that are
     commercially available for distribution will be made available for Nissei
     Sangyo to sell in the Japanese market for the duration of the Distribution
     Contract.

     1.5.1  Sequenom will provide a protocol and components for a commercial
            homogeneous MassEXTEND assay (hME) to Nissei Sangyo for sale in the
            Territory as soon as it is a commercially available product
            (estimated commercial release: by the end of 2000).

     1.5.2  Nissei Sangyo will have access to Sequenom developed genotyping
            assay panels (however, not including specific diagnostic panels) at
            a standard distribution transfer price, and the right to sell such
            assay panels in the Territory when they are commercially released
            for customer use.

     1.5.3  The Distribution Contract does not provide Nissei Sangyo with the
            right to sell or make use of Sequenom's proprietary technology for
            rapid Allele Frequency Determination by Pooling. The sale or support
            of genotyping programs within the Territory that would make use of
            this Pooling technology will require completion of a separate and
            independent agreement. Also, Nissei Sangyo will only have the right
            to sell Sequenom diagnostic panels on a non-exclusive basis and
            under licensing and royalty conditions defined in a separate
            diagnostic assay licensing and royalty agreement. The term
            commercial diagnostic service applies to the provision of a
            commercial service providing medical diagnostic information to a
            patient or to an intermediate company/provider that would then
            transfer this result to a patient.

*** Confidential Treatment Requested
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1.6  Nissei Sangyo will obtain, or will assist Sequenom in obtaining, any
     required licenses or permits and will assist Sequenom in complying with
     applicable laws, rules and regulations, including Japanese import
     regulations. Nissei Sangyo will pay any fees associated with any required
     licenses or permits.

1.7  All trademarks, trade names, trade dress and other trade rights of Sequenom
     remain the property of Sequenom and will be licensed for use by Nissei
     Sangyo in conjunction with, and limited to, its use for distribution of
     Sequenom products.

1.8  SEQUENOM shall be entitled to establish an independent Joint Venture (JV)
     with [...***...] or their representative for the purposes of identifying
     SNP markers of diagnostic or therapeutic utility in the Japanese
     population.

     1.8.1  SNP markers that are generated out of the JV may be made available
            to Nissei Sangyo at the discretion of the JV's management.

     1.8.2  [...***...].

     1.8.3  Nissei Sangyo acknowledges that Sequenom has been negotiating a
            joint venture with [...***...] for some time now, and that such
            joint venture, if and when established, will likely purchase and
            consume MassARRAY products. While Sequenom intends that Nissei
            Sangyo will distribute MassARRAY products to the JV (at discounted
            pricing to be agreed upon), Sequenom reserves the right to
            independently supply MassARRAY products to the JV in the event that
            the parties cannot reach agreement on pricing and/or for any other
            reason involving potential or actual interference with the timely
            supply of such products to the JV for its needs.

     1.8.4  Nissei Sangyo will be responsible for installation, support and
            service for MassARRAY systems installed at the JV, as for any
            Japanese customer.

1.9  Sequenom has the right to change its products, the configuration of
     products offered or product pricing from time to time. Sequenom commits to
     use best efforts in providing Nissei Sangyo with a notification of future
     product, product configuration and pricing changes at least one month prior
     to implementation.

1.10 Sequenom will sell SpectroDESIGNER Assay Design Software to Nissei Sangyo
     for use by Hitachi Life Science Group in their Core Facility for provision
     of commercial genotyping services. The transfer of this software is beyond
     the scope of product distribution and will be covered in a separate
     document, and for the avoidance of doubt, this will not be referenced in
     the distribution contract.

*** Confidential Treatment Requested
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1.11 Confidentiality: This Letter of Intent and the information contained
     herein, including all Exhibits, is considered the Confidential Information
     of Sequenom. Nissei Sangyo agrees to (i) hold such Confidential Information
     in strict confidence; (ii) not disclose it to any third parties or to use
     it in any way, commercially or otherwise; and (iii) not allow any
     unauthorized person access to such Confidential Information, without the
     prior consent of Sequenom.

1.12 Agreement: A formal, detailed agreement, that will include the terms
     herein, will be executed by the parties within thirty (30) days following
     the execution of this binding Letter of Intent.


2.   Nissei Sangyo Support Commitments

2.1  Nissei Sangyo commits to provide all necessary infrastructures for
     MassARRAY system sales, support, service and maintenance for the Territory
     for the term of the agreement.

2.2  Nissei Sangyo commits to stock adequate supplies of consumable items and
     spare parts to ensure a two-day supply time to local customers.

2.3  Nissei Sangyo commits to translate and do any and all necessary
     modifications of Sequenom's sales and marketing materials into Japanese
     language within three months of signing the MassARRAY Distribution
     Agreement.

     2.3.1  Nissei Sangyo agrees to provide Sequenom with final copies of all
            sales and marketing materials prior to local supply. Sequenom does
            have to authorize local language sales document release, for
            trademark and tradename use.

2.4  Nissei Sangyo shall ensure all necessary hardware and software manuals and
     training documentation necessary for the routine operation of the MassARRAY
     system are translated into Japanese language within three months of signing
     the MassARRAY distribution agreement.

     2.4.1  Nissei Sangyo agrees to provide Sequenom with final copies of all
            instruction manuals and training materials prior to local supply.
            Sequenom does have to authorize local language instruction document
            release, except to the extent necessary to insure proper use of its
            trademarks and tradenames.

2.5  Nissei Sangyo will use its best efforts to sell the MassARRAY system in the
     Territory, and in consideration for the exclusive arrangement, Nissei
     Sangyo will not sell or distribute competing products and/or technologies
     (with the exception of products pursuant to Nissei's prior relationship
     with Nanogen) while this agreement is in effect, without the written
     permission of Sequenom.
<PAGE>

2.6  Nissei Sangyo will provide Sequenom with a rolling sales forecast with a 12
     (twelve)-month projection on a quarterly basis.


3.   Sequenom Support Commitments

3.1  Sequenom will provide Nissei Sangyo personnel with comprehensive training
     covering; system installation, support and service; applications and
     systems software; assay development and implementation.

3.2  Sequenom will transfer to Nissei Sangyo its standard limited warranty as
     normally provided to customers. This warranty will also be set forth in
     end-user sub-license agreements consistent with the terms of the
     Distribution agreement. Nissei Sangyo will handle and be responsible for
     all local warranty returns from customers.

3.3  Sequenom will ensure instrument service support is made available to Nissei
     Sangyo from all secondary equipment suppliers who have a Japanese presence,
     including but not limited to PerSeptive, Bruker and Beckman. Nissei Sangyo
     is to maintain these relationships once established by Sequenom.

4.   Payment Terms

4.1  Nissei Sangyo will pay Sequenom a [...***...] exclusive distribution
     license fee of [...***...]. Nissei Sangyo will pay a portion of this fee
     [...***...] by wire transfer to an account designated by Sequenom
     [...***...]. Nissei Sangyo will pay to Sequenom a second portion of the
     exclusive license distribution fee [...***...] by wire transfer
     [...***...]. The remaining balance [...***...] is due upon [...***...].

4.2  All payments shall be made in U.S. dollars and are fixed amounts regardless
     of exchange rate fluctuations.

4.3  Nissei Sangyo will pay Sequenom [...***...] to cover costs in establishing
     MassARRAY installation and support infrastructure. This payment will be
     made to Sequenom within thirty (30) days of executing the Distribution
     Agreement.

4.4  All fees due and prices are net amounts due to Sequenom, exclusive of any
     and all taxes, customs, duties, or other fees that may be governmentally
     imposed or otherwise.

*** Confidential Treatment Requested
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4.5  To the extent that an EndUser licenses a particular technology, software,
     or assay from Sequenom that is not a standard distribution product (for
     example, pooling software as mentioned in section 1.5.3), Sequenom will pay
     to Nissei Sangyo [...***...] of the license fee. This provision will not
     apply where the EndUser is the Joint Venture referenced in section 1.8.


5.   Product Pricing Schedule

5.1  Refer to Exhibits I and II.

5.2  Discount Levels: Nissei Sangyo's MassARRAY Consumables pricing will start
     at Level 1 for the first order. The Level will be adjusted according to the
     Accrued Element Purchase Volume as outlined in the table below for
     subsequent orders. All discounts will be taken from the applicable List
     Prices for the MassARRAY Consumables listed in Exhibit II.

5.3  Prices do not include shipping costs, applicable duties or taxes, or other
     fees.

<TABLE>
<CAPTION>
   ----------------------------------------------------------------------------------------------
      Discount Level          Accrued Element* Purchase Volume      Discount Percentage from
                                                                              List Price
   ----------------------------------------------------------------------------------------------
   <S>                           <C>                                   <C>
   Level I                                  [...***...]                      [...***...]%
   ----------------------------------------------------------------------------------------------
   Level 2                                  [...***...]                      [...***...]%
   ----------------------------------------------------------------------------------------------
   Level 3                                  [...***...]                      [...***...]%
   ----------------------------------------------------------------------------------------------
   Level 4                                  [...***...]                      [...***...]%
   ----------------------------------------------------------------------------------------------
   Level 5                                  [...***...]                      [...***...]%
   ----------------------------------------------------------------------------------------------
   Level 6                                  [...***...]                      [...***...]%
   ----------------------------------------------------------------------------------------------
</TABLE>

  * An Element comprises solid-phase sample conditioning and one position on
   Sequenom's SpectroCHIP.  Each Element can accommodate multiple assays or
   run a multiplexed genotyping reaction, for a single person or organism's
                                     DNA.


     In Witness Whereof, both Sequenom and Nissei Sangyo have executed this
Letter of Intent, in duplicate originals, by their respective employee hereunto
duly authorized, as of the date below.

Sequenom, Inc.                         Nissei Sangyo Co., Ltd.

By:       /s/ Rick Episcopo            By:     /s/ Hisayoshi Ishihara
          ------------------------             ----------------------
Name:     Rick Episcopo                Name:   Hisayoshi Ishihara
          ------------------------             ----------------------
Title:    Sr. V.P. Commercial Ops.     Title:  General Manager
          ------------------------             ----------------------
Date:     December 8, 2000             Date:   Dec. 11, 2000
          ------------------------             ----------------------

*** Confidential Treatment Requested
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                                   Exhibit I
                                   ---------


MassARRAY(TM) Equipment Pricing
-------------------------------

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                               Product                                                 Price
------------------------------------------------------------------------------------------------------------
<S>                                                                     <C>
 High-speed SpectroREADER array mass spectrometer for separation,                                [...***...]
 detection and characterization of the analyte molecules from a
 miniaturized array; configured with:
       .  Workstation, post processing software
------------------------------------------------------------------------------------------------------------
SpectroJET, 4-Channel, v1.1, dispenser for nanoliter sample transfer                             [...***...]
       .  SPIP Micropump with 800 nl chamber volume
       .  droplet volume range of 0.5-2 nl
       .  CV  *2 % dispensing precision of the pump
       .  0,1 mm precision of x/y positioning stage
       .  maximum speed of 41.9 cm/sec
       .  PC, controller software
------------------------------------------------------------------------------------------------------------
SpectroPREP Automated Multipipettor                                                              [...***...]
       .  96-channel automated pipettor
       .  pipetting volume range of 2-200 ul
       .  magnetic lifter for bead separation
       .  six-position workdeck
       .  PC, controller software
------------------------------------------------------------------------------------------------------------
SpectroTYPER Workstation for automated genotype calling and data                                 [...***...]
 management
       .  Workstation (hardware)
       .  SpectroTYPER software
       .  Oracle database with license
------------------------------------------------------------------------------------------------------------
</TABLE>

* Less Than

*** Confidential Treatment Requested
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                                   Exhibit II
                                   ----------

MassARRAY(TM) Consumables Pricing
---------------------------------

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
       MassARRAY 384             Item Number                       Item                       Price
                            ---------------------------------------------------------------------------
<S>                           <C>                <C>                                       <C>
        Core Kit*                  10020         10x SpectroCHIP384 - 384 elements          [...***...]
                                               --------------------------------------------------------
                                                 Beads
                                               --------------------------------------------------------
                                                 Binding Buffer
                                               --------------------------------------------------------
                                                 Denaturation Solution
                                               --------------------------------------------------------
                                                 Wash & Conditioning Solution
                                               --------------------------------------------------------
                                                 Recovery Solution
                                               --------------------------------------------------------
                                                 Calibrant
-------------------------------------------------------------------------------------------------------
</TABLE>

*MassARRAY Enzyme pack for the MassEXTEND(TM) reaction, positive controls and
nucleotide mixes are not included and may be purchased separately.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------
         MassARRAY               Item Number                       Item                        Price
                            ----------------------------------------------------------------------------
<S>                           <C>                <C>                                       <C>
        Enzyme Pack                 10200        MassEXTEND Enzyme                           [...***...]
--------------------------------------------------------------------------------------------------------
         MassARRAY               Item Number                       Item                        Price
                            ----------------------------------------------------------------------------
  Positive Control Pack             10300        Positive Control Pack                       [...***...]
                                               ---------------------------------------------------------
--------------------------------------------------------------------------------------------------------
         MassARRAY               Item Number                       Item                        Price
                            ----------------------------------------------------------------------------
  Nucleotide Uni-Mix Pack           10400        EXTEND Mix 1 - ddATP/dCTP/dGTP/dTTP         [...***...]
                                               ---------------------------------------------------------
                                                 EXTEND Mix 2 - ddCTP/dATP/dGTP/dTTP
                                               ---------------------------------------------------------
                                                 EXTEND Mix 3 - ddGTP/dATP/dCTP/dTTP
                                               ---------------------------------------------------------
                                                 EXTEND Mix 4 - ddTTP/dATP/dCTP/dGTP
--------------------------------------------------------------------------------------------------------
        MassARRAY                Item Number                       Item                        Price
                            ----------------------------------------------------------------------------
  Nucleotide Di-Mix Pack            10401        EXTEND Mix 5 - ddATP/ddCTP/dGTP/dTTP        [...***...]
                                               ---------------------------------------------------------
                                                 EXTEND Mix 6 - ddATP/ddGTP/dCTP/dTTP
                                               ---------------------------------------------------------
                                                 EXTEND Mix 7 - ddATP/ddTTP/dCTP/dGTP
                                               ---------------------------------------------------------
                                                 EXTEND Mix 8 - ddCTP/ddGTP/dATP/dTTP
                                               ---------------------------------------------------------
                                                 EXTEND Mix 9 - ddCTP/ddTTP/dATP/dGTP
                                               ---------------------------------------------------------
                                                 EXTEND Mix 10 - ddGTP/ddTTP/dATP/dCTP
--------------------------------------------------------------------------------------------------------
        MassARRAY                Item Number                       Item                        Price
                            ----------------------------------------------------------------------------
 Nucleotide Tri-Mix Pack            10402        EXTEND Mix 11 - ddATP/ddCTP/ddGTP/dTTP      [...***...]
                                               ---------------------------------------------------------
                                                 EXTEND Mix 12 - ddATP/ddCTP/ddTTP/dGTP
                                               ---------------------------------------------------------
                                                 EXTEND Mix 13 - ddATP/ddGTP/ddTTP/dCTP
                                               ---------------------------------------------------------
                                                 EXTEND Mix 14 - ddCTP/ddGTP/ddTTP/dATP
--------------------------------------------------------------------------------------------------------
</TABLE>

A list of spare parts and accessories for the MassARRAY system with associated
pricing will be provided.

*** Confidential Treatment Requested
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