Document:

Exhibit

Exhibit 10.1

SPLIT DOLLAR LIFE INSURANCE AGREEMENT

THIS SPLIT DOLLAR AGREEMENT (this "Agreement") is entered into this 20th day of September, 2012, by and between by and between Marathon National Bank of New York, located in Astoria, New York (the "Employer"), and Paul Stathoulopoulos (the "Executive").

WITNESSETH:

WHEREAS, the Executive is employed by the Employer;

WHEREAS, the Employer recognizes the valuable services the Executive has performed for the Employer and wishes to encourage the Executive's continued employment and to provide the Executive with additional incentive to achieve corporate objectives;
    
WHEREAS, the Employer wishes to provide the terms and conditions upon which the Employer shall share the death proceeds of certain life insurance policies with the Executive's designated beneficiary;

NOW THEREFORE, in consideration of the premises and of the mutual promises herein contained, the Employer and the Executive agree as follows:

ARTICLE 1 
DEFINITIONS

Whenever used in this Agreement, the following terms shall have the meanings specified:

1."Administrator" means the Board or such person or persons who may be appointed by the Board to administer this Agreement

2."Beneficiary" means each designated person, or the estate of the deceased Executive, entitled to benefits upon the death of the Executive.

		
	3.
	"Board" means the Board of Directors of the Employer.

4."Insurer" means the insurance company or companies issuing a Policy listed on Exhibit A to this Agreement.

5."Policy'' or "Policies" means the individual insurance policy or policies listed on Exhibit A purchased by the Employer for purposes of insuring the Executive's life under this Agreement.

Exhibit 10.1

ARTICLE 2 
PURCHASE OF POLICY

The Employer has purchased the Policy or Policies listed on Exhibit A. The parties agree that they will take any and all action which may be necessary to cause each Policy to conform to the provisions of this Agreement. The parties agree that each Policy shall be subject to the terms and conditions of this Agreement and of the endorsement to each Policy or beneficiary designation filed with the Insurer in accordance with this Agreement.

ARTICLE 3 
OWNERSHIP OF POLICY

1.Except as otherwise specifically provided in this Agreement, the Employer shall be the sole and absolute owner of each Policy, and may exercise all ownership rights granted to the owner thereof by the terms of the Policy, including. but not limited to, the right to elect and to change the Death Benefit Option, the Face Amount of the Death Benefit, and the investment options of the Policy.

2.Notwithstanding any other provision hereof, during the term of this Agreement, the Executive shall not have any direct or indirect access to the cash value of any Policy, including. but not limited to, any right to obtain, use, or realize any economic value from the cash value of the Policy. Specifically, the Executive shall have no right to directly or indirectly make a withdrawal from a Policy, borrow from or against a Policy, totally or partially surrender a Policy, nor anticipate, assign (either at law or in equity), alienate, pledge, or otherwise encumber the cash value of the Policy.  To the extent permitted by law, the Executive's creditors shall not have access to the cash value of a Policy through attachment, garnishment, levy, execution, or through any other legal or equitable process.

ARTICLE 4
ELECTION OF SETTLEMENT OPTION AND BENEFICIARY DESIGNATION BY EMPLOYEE;
POLICY ENDORSEMENT BY EMPLOYER

1.The Executive may select the beneficiary or beneficiaries to receive the portion of death benefit proceeds to which the Executive is entitled to under this Agreement, as well as the settlement option for payment of that portion of the death benefit provided under the Policies, by specifying such election in a written notice to the Employer in the form attached to this Agreement as Exhibit B. Upon receipt of such notice, the Employer shall promptly execute and deliver to the Insurer the endorsement to or beneficiary designation for the applicable Policy, under the form used by the Insurer therefor, to elect the requested settlement option and to designate the requested person, persons or entity as the beneficiary or beneficiaries to receive the death benefit proceeds of the Policy in excess of the amount to which the Employer is entitled to under this Agreement.  The parties agree to take all action necessary to cause the settlement option and beneficiary designation provisions of each Policy to conform to the provisions of this Agreement.

Exhibit 10.1

2.The Employer shall not terminate, alter or amend such endorsement or beneficiary designation without the express written consent of the Executive.

3.In the absence of a valid Beneficiary designation, or if, at the time any benefit payment is due to a Beneficiary, there is no living Beneficiary validly named by the Executive, the Employer shall pay the benefit payment to the Executive's spouse. If the spouse is not living then the Employer shall pay the benefit payment to the Executive's living descendants per stirpes, and if there no living descendants, to the Executive's estate. In determining the existence or identity of anyone entitled to a benefit payment, the Employer may rely conclusively upon information supplied by the Executive's personal representative, executor, or administrator.

ARTICLE 5
PAYMENT OF PREMIUMS AND IMPUTED INCOME

1.On or before the due date of each Policy premium (but no later than the end of the grace period provided under the Policy, the Employer shall pay the full amount of the premium to the Insurer, and shall, upon request, promptly furnish the Executive evidence of timely payment of such premium.

2.The Employer shall determine the economic benefit attributable to the Executive with respect to the Policy. The amount of such benefit shall be an amount equal to the annual cost of current life insurance protection on the life of the Executive, measured by the lower of the rate provided in Table 2001 as set forth in the IRS Notice 2002-8 (or any subsequent Internal Revenue Service guidance which is applicable to this arrangement), or the Insurer's current published premium rate for annually renewable term insurance for standard risks, as determined under Notice IRS 2002-8 applicable to post-January 28, 2002 arrangements (or any subsequent Internal Revenue Service guidance which is applicable to this arrangement).

3.The Employer annually shall furnish the Executive a statement of the amount of income reportable by the Executive for federal and state income tax purposes as a result of the insurance protection provided the Policy beneficiary hereunder.

ARTICLE 6
LIMITATIONS ON EMPLOYER'S RIGHTS IN POLICY

Except as otherwise specifically provided in this Agreement, the Employer shall not sell, assign, transfer, surrender or cancel the Policy, change the Policy endorsement or beneficiary designation provision thereof, change the Death Benefit Option provision, or decrease the Face Amount of Insurance Death Benefit, make withdrawals from the Policy without, in any such case, the express written consent of the Executive.

ARTICLE 7
DEATH BENEFT PROCEEDS

7.1 Upon the death of the Executive, the Employer shall cooperate with the beneficiary or 

Exhibit 10.1

beneficiaries designated by the Employer at the direction of the Executive to take whatever action is necessary to collect the death benefit provided under the Policy; when such benefit has been collected and paid as provided herein, this Agreement shall thereupon terminate.

7.2    Upon the death of the Executive, the Executive's Beneficiary shall have the right to receive payment of a death benefit under the Policy equal to

(a)    Seven Hundred Fifty Thousand Dollars ($750,000)

The Employer shall have the unqualified right to receive the remaining portion the death proceeds payable under the Policy.  No amount shall be paid from such death benefit to the beneficiary or beneficiaries designated by the Employer at the direction of the Executive, until the full amount due the Employer hereunder has been paid. The parties agree that the endorsement of or beneficiary designation provision of the Policy shall conform to the provisions hereof.

ARTICLE 8
TERMINATION OF THE AGREEMENT DURING THE EXECUTIVE'S LIFETIME

1.This Agreement shall terminate during the Executive's lifetime only upon the occurrence of any of the following events:

		
	(a)
	Total cessation of the Employer's business;

		
	(b)
	Bankruptcy. receivership or dissolution of the Employer;

		
	(c)
	The Executive becoming subject to a final removal or prohibition order issued by an appropriate federal banking agency pursuant to Section 8(c) of the Federal Deposit Insurance Act; or

		
	(d)
	Termination of the Executive's employment by the Employer for Cause. For purposes of this paragraph (d), Cause shall mean personal dishonesty, willful misconduct, breach of duty involving personal profit, intentional failure to perform stated duties, willful violation of any law, rule or regulation (other than traffic violation or similar offenses) or final cease-and-desist or material breach of any provision of this Agreement; provided, however, that no act or failure to act shall be considered "willful" unless done, or omitted, by the Executive not in good faith and without reasonable belief that the Executive's act or omission was in the best interest of the Employer.

2.In addition, the Executive may terminate this Agreement at any time by written notice to the Employer. Any such termination shall be effective as of the date of such notice.

		
	3.
	No benefits shall be payable under this Agreement if

		
	(a)
	the Agreement is terminated pursuant to Section 8.1(c) or 8.1(d) above; or

		
	(b)
	an Insurer denies coverage (i) for material misstatements of fact made by the Executive on any application for life insurance purchased by the Employer, or (ii) for any other reason; provided, however, that the Employer shall evaluate the reason for the denial, 

Exhibit 10.1

and upon advice of legal counsel and in its sole discretion, consider judicially challenging any denial.

ARTICLE 9
DISPOSITION OF POLICY ON TERMINATION OF THE AGREEMENT DURING THE
EXECUTIVE'S LIFETIME

9.1. This Article 10 shall apply in the event that this Agreement is terminated during the Executive's lifetime pursuant to Section 8.1(a), 8.1(b) or Section 8.2.

9.2 During the sixty (60) day period following the date of the termination of this Agreement during the Executive's lifetime, the Executive shall have the assignable option to purchase the Policies from the Employer. The purchase price for the Policies shall be equal to the greater of the cash surrender value of the Policies or the cumulative amount of the premium payments made by the Employer. Upon receipt of such amount, the Employer shall transfer all of its right, title and interest in and to the Policy to the Executive or [his][her] assignee, by the execution and delivery of an appropriate instrument of transfer.

9.2 If the Executive or [his][her] assignee fails to exercise such option within such sixty (60) day period, then, the Employer may enforce its right to be repaid the amount due it hereunder by surrendering or canceling the Policy for its cash surrender value, or it may change the beneficiary designation provisions of the Policy, naming itself or any other person or entity as revocable beneficiary thereof, or exercise any other ownership rights in and to the Policy, without regard to the provisions hereof. Thereafter, neither the Executive nor [his][her] respective heirs, assigns or beneficiaries shall have any further interest in and to the Policy, either under the terms thereof or under this Agreement

ARTICLE 10 
ASSIGNMENT BY EXECUTIVE

Notwithstanding any provision hereof to the contrary, the Executive shall have the right to absolutely and irrevocably assign by gift all of [his][her] right, title and interest in and to this Agreement and the rights it provides in and to the Policy to an assignee. This right shall be exercisable by the execution and delivery to the Employer of a written assignment, in substantially the form attached hereto as Exhibit C, which by this reference is made a part hereof. Upon receipt of such written assignment executed by the Executive and duly accepted by the assignee thereof, the Employer shall consent thereto in writing, and shall thereafter treat the Executive's assignee as the sole owner of all of the Executive's right, title and interest in and to this Agreement and in and to the Policy. Thereafter, the Executive shall have no right, title or interest in and to this Agreement or the Policy, all such rights being vested in and exercisable only by such assignee.

ARTICLE 11 
INSURER NOT A PARTY

The Insurer shall be fully discharged from its obligations under the Policy by payment of 

Exhibit 10.1

the Policy death benefit to the beneficiary or beneficiaries named in the Policy, subject to the terms and conditions of the Policy. In no event shall the Insurer be considered a party to this Agreement, or any modification or amendment hereof.  No provision of this Agreement, nor of any modification or amendment hereof, shall in any way be construed as enlarging, changing, varying, or in any other way affecting the obligations of the Insurer as expressly provided in the Policy, except insofar as the provisions hereof are made a part of the Policy by the endorsement or beneficiary designation executed by the Employer and filed with the Insurer in connection herewith.

ARTICLE 12 
ADMINISTRATION

1.Administrator Duties.  The Administrator shall be responsible for the management, operation, and administration of the Agreement. When making a determination or calculation, the Administrator shall be entitled to rely on information furnished by the Employer, Executive or Beneficiary.

2.Administrator Authority. The Administrator shall enforce this Agreement in accordance with its terms, shall be charged with the general administration of this Agreement, and shall have all powers necessary to accomplish its purposes. Such powers include, but are not limited to, the following:

		
	(a)
	To construe and interpret the terms and provisions of this Agreement and to reconcile any inconsistency;

		
	(b)
	To compute and certify the amount payable to the Executive and the Beneficiary; to determine the time and manner in which such benefits are paid; and to determine the amount of any withholding taxes to be deducted;

		
	(c)
	To maintain all records that may be necessary for the administration of this Agreement;

		
	(d)
	To provide for the disclosure of all information and the filing or provision of all    reports and statements to the Executive, the Beneficiary and governmental agencies as required by law;

		
	(e)
	To make and publish such rules for the regulation of this Agreement and procedures for the administration of this Agreement so long as no such rules or procedures are not inconsistent with the terms hereof;

		
	(f)
	To administer this Agreement's claims procedures;

		
	(g)
	To approve the forms and procedures for use under this Agreement; and

		
	(h)
	To employ others, including actuaries, attorneys, accountants, independent fiduciaries, recordkeepers and administrative consultants, to render advice or 

Exhibit 10.1

perform services with respect to the responsibilities of the Administrator under the Agreement.

1.Binding Effect of Decision. The decision or action of the Administrator with respect to any question arising out of or in connection with the administration, interpretation or application of this Agreement and the rules and regulations promulgated hereunder shall be final, conclusive and binding upon all persons having any interest in this Agreement

2.Compensation, Expenses and Indemnity. The Administrator is authorized at the expense of the Employer to employ such legal counsel and recordkeeper as it may deem advisable to assist in the performance of its duties hereunder. Expense and fees in connection with the administration of this Agreement shall be paid by the Employer.

3.Employer Information. The Employer shall supply full and timely information to the Administrator on all matters relating to the Executive's death, termination of employment and such other information as the Administrator reasonably requires..

ARTICLE 13
CLAIMS AND REVIEW PROCEDURE

1.Claims Procedure. A Claimant who has not received benefits under this Agreement that he or she believes should be distributed shall make a claim for such benefits as follows.

		
	(a)
	Initiation- Written Claim. The Claimant initiates a claim by submitting to the Administrator a written claim for the benefits. If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within sixty {60) days after such notice was received by the Claimant. All other claims must be made within one hundred eighty {180) days of the date on which the event that caused the claim to arise occurred. The claim must state with particularity the determination desired by the Claimant.

		
	(b)
	Timing of Administrator Response. The Administrator shall respond to such Claimant within ninety (90) days after receiving the claim. If the Administrator determines that special circumstances require additional time for processing the claim, the Administrator can extend the response period by an additional ninety (90) days by notifying the Claimant in writing, prior to the end of the initial ninety (90) day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Administrator expects to render its decision.

		
	(c)
	Notice of Decision.   If the Administrator denies part or all of the claim, the Administrator shall notify the Claimant in writing of such denial. The Administrator shall write the notification in a manner calculated to be understood by the Claimant The notification shall set forth: (i) the specific reasons for the denial; (ii) a reference to the specific provisions of this Agreement on which the denial is based; (iii) a description of any additional information or material necessary for the Claimant to 

Exhibit 10.1

perfect the claim and an explanation of why it is needed; (iv) an explanation of this Agreement's review procedures and the time limits applicable to such procedures; and (v) a statement of the Claimant's right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review.

2.Review Procedure. If the Administrator denies part or all of the claim, the Claimant shall have the opportunity for a full and fair review by the Administrator of the denial as follows.

		
	(a)
	Initiation - Written Request To initiate the review, the Claimant, within sixty

(60) days after receiving the Administrator's notice of denial, must file with the Administrator a written request for review.

		
	(b)
	Additional Submissions - Information Access. The Claimant shall then have the opportunity to submit written comments, documents, records and other information relating to the claim. The Administrator shall also provide the Claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the Claimant's claim for benefits.

		
	(c)
	Considerations on Review. In considering the review, the Administrator shall take into account all materials and information the Claimant submits relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.

		
	(d)
	Timing of Administrator Response. The Administrator shall respond in writing to such Claimant within sixty (60) days after receiving the request for review. If the Administrator determines that special circumstances require additional time for processing the claim, the Administrator can extend the response period by an additional sixty (60) days by notifying the Claimant in writing. prior to the end of the initial sixty (60) day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Administrator expects to render its decision.

		
	(e)
	Notice of Decision. The Administrator shall notify the Claimant in writing of its decision on review. The Administrator shall write the notification in a manner calculated to be understood by the Claimant. The notification shall set forth; (i) the specific reasons for the denial; (ii) a reference to the specific provisions of this Agreement on which the denial is based; (iii) a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the Claimant's claim for benefits; and (iv) a statement of the Claimant's right to bring a civil action under ERISA Section 502(a).

Exhibit 10.1

ARTICLE 14
AMENDMENTS AND TERMINATION

This Agreement may be amended only by a written agreement signed by both the Employer and the Executive.

ARTICLE 15 
MISCELLANEOUS

1.No Effect on Employment Rights. Neither this Agreement, nor any benefit payable under this Agreement, shall confer upon the Executive any right to continue in employment with the Employer nor shall they interfere in any way with the right of the Employer to terminate the Executive's employment at any time.

2.Facility of Payment. If a distribution is to be made to a minor, or to a person who is otherwise incompetent, then the Administrator may make such distribution: (a) to the legal guardian, or if none, to a parent of a minor payee with whom the payee maintains his or her residence; or (b) to the conservator or administrator or, if none, to the person having custody of an incompetent payee. Any such distribution shall fully discharge the Employer and the Administrator from further liability on account thereof.

3.Governing Law. To the extent not governed by ERISA or other Federal law, the provisions of this Agreement shall be construed and interpreted according to the laws of the State of New York without regard to conflicts of laws principles.

4.Severability. The provisions of this Agreement are severable. If any provision of this Agreement is deemed legally or factually invalid or unenforceable to any extent or in any application, then the remainder of the provision and the Agreement, except to such extent or in such application, shall not be affected, and each and every provision of the Agreement shall be valid and enforceable to the fullest extent and in the broadest application permitted by law.

5.Notice. Any notice, consent or demand required or permitted to be given to the Employer or Administrator under this Agreement shall be sufficient if in writing and hand-delivered or sent by registered or certified mail to the Employer's principal business office. Any notice or filing required or permitted to be given to the Executive or Beneficiary under this Agreement shall be sufficient if in writing and hand-delivered or sent by mail to the last known address of the Executive or Beneficiary, as appropriate. Any notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark or on the receipt for registration or certification.

6.Heading sand Interpretation. Headings and sub-headings in this Agreement are inserted for reference and convenience only and shall not be deemed part of this Agreement Wherever the fulfillment of the intent and purpose of this Agreement requires and the context will permit, the use of the masculine gender includes the feminine and use of the singular includes the plural.

Exhibit 10.1

7.Other Benefits. No benefit payable under this Agreement shall be deemed salary or compensation for the purpose of computing benefits under any employee benefit plan or other arrangement of the Employer for the benefit of its employees, unless such plan or arrangement provides otherwise.

8.Successors and Assignment. This Agreement shall be binding upon and shall inure to the benefit of the Employer, its successor and assigns, and the Executive, the Executive's successors, heirs, executors, administrators, and the Beneficiary.

9.Entire Agreement. This Agreement constitutes the entire agreement between the Employer and the Executive as to the subject matter hereof. No rights are granted to the Executive under this Agreement other than those specifically set forth herein.

IN WITNESS WHEREOF, the Executive and a duly authorized representative of the Employer have signed this Agreement.

EXECUTIVE                EMPLOYER

/s/ Paul Stathoulopoulos                          By:   /s/ Emanuel Polichronakis
Title:   President                        

Exhibit 10.1

SPLIT DOLLAR LIFE INSURANCE AGREEMENT
EXHIBIT A

The  following  life  insurance  Policy  is  subject  to  the  Split  Dollar  Life  Insurance Agreement to which this Exhibit is attached:

    
Insurer:            Mass Mutual

Insured:            Paul Stathoulopoulos

Policy Number:         54234

Date of Issue:        December 31st, 2002

Face Amount:        Eight Hundred Twenty One Thousand Dollars ($821,000) 

[Death Benefit Option]:    Same as Face Amount

Insurer:            New York Life

Insured:            Paul Stathoulopoulos

Policy Number:        56604309

Date of Issue:        December 31st, 2002

Face Amount:        Eight Hundred Sixty One Thousand Dollars ($861,000)

[Death Benefit Option]:    Same as Face Amount

Insurer:            West Coast Life

Insured:            Paul Stathoulopoulos

Policy Number:        ZUA393013

Date of Issue:        December 31st, 2002

Specified Amount:        Eight Hundred Sixty Two Thousand Dollars ($862,000) 

[Death Benefit Option]:    Same as Specified Amount

Exhibit 10.1

SPLIT DOLLAR LIFE INSURANCE AGREEMENT

EXHIBIT B

Beneficiary Designation

I, Paul Stathoulopoulos, designate the following as Beneficiary under this Agreement:

Primary

Ramona Stathoulopoulos                                100%

Contingent

		
	Christopher  N.  Stathoulopoulos 
	50%

		
	Nicholas  P. Stathoulopoulos
	50%

I understand that I may change this beneficiary designation by delivering a new written designation to the Administrator, which shall be effective only upon receipt by the Administrator prior to my death. I further understand that the designation will be automatically revoked if the Beneficiary predeceases me or if I have named my spouse as Beneficiary and our marriage is subsequently dissolved.

Signature: /s/ Paul Stathoulopoulos    Date: 09.20.2012

SPOUSAL CONSENT (Required only if Administrator requests and someone other than spouse is named Beneficiary)

I consent to the beneficiary designation above. I also acknowledge that if I am named Beneficiary and my marriage is subsequently dissolved, the beneficiary designation will be automatically revoked.

Spouse Name:    ______________________
Signature:     ______________________    Date: __________

Exhibit 10.1

SPLIT DOLLAR LIFE INSURANCE AGREEMENT

EXHIBIT C

THIS ASSIGNMENT, dated this __ day of ______________, 20__.

WITNESSETH THAT:

WHEREAS, the undersigned (the "Assignor") is the Employee under that certain Split Dollar Life Insurance Agreement between Marathon National Bank of New York (the "Employer") and Paul Stathoulopoulos dated September 20th, 2012, effective as of January 1, 2013 (the "Split Dollar Agreement"), which Split-Dollar Agreement confers upon the undersigned certain rights and benefits with regard to one or more policies of insurance insuring the Assignor's life; and

WHEREAS, pursuant to the provisions of said Split Dollar Agreement, the Assignor retained the right, exercisable by the execution and delivery to the Corporation of a written form of assignment, to absolutely and irrevocably assign all of the Assignor's right, title and interest in and to said Split-Dollar Agreement to an assignee; and

WHEREAS, the Assignor desires to exercise said right;

NOW, THEREFORE, the Assignor, without consideration, and intending to make a gift, hereby absolutely and irrevocably assigns, gives, grants and transfers to ________ (the "Assignee"), all of the Assignor's right, title and interest in and to the Split-Dollar Agreement and said policies of insurance, intending that, from and after this date, the Split- Dollar Agreement be solely between the Corporation and the Assignee and that hereafter the Assignor shall neither have nor retain any right, title or interest therein.
                
__________________________
Assignor 

ACCEPTANCE OF ASSIGNMENT

The undersigned Assignee hereby accepts the above assignment of all right, title and interest of the Assignor therein in and to the Split Dollar Agreement, and the undersigned hereby agrees to be bound by all of the terms and conditions of said Split Dollar Agreement, as if the original Employee thereunder.
___________________________
                        
___________________________
Assignee 

Dated: __________, 20__

Exhibit 10.1

CONSENT TO ASSIGNMENT

The undersigned Employer hereby consents to the foregoing assignment of all of the right, title and interest of the Assignor in and to the Split Dollar Agreement, to the Assignee designated therein. The undersigned Employer hereby agrees that, from and after the date hereof. the undersigned Employer shall look solely to such Assignee for the performance of all obligations under said Split-Dollar Agreement which were heretofore the responsibility    of the Assignor, shall allow all rights and benefits provided therein to the Assignor to be exercised only by said Assignee, and shall hereafter treat said Assignee in all respects as if the original Employee thereunder.

                                                      ________________________
                                                      By: _______________________

Dated: __________, 20__Exhibit_10_1

		

			Exhibit 10.1

		

		

			THE SYMBOL “[*]” DENOTES PLACES WHERE CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH (i) NOT MATERIAL, AND (ii) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED

		

		

			 

		

		
			Amended and Restated Employment  Agreement
		

		
			THIS Amended and Restated Employment Agreement (the “Agreement”) effective as of January 2, 2019 (the “Effective Date”), by and between Steve Chapman (the “Executive”) and Natera, Inc., a Delaware corporation (the “Company”).
		

			
	
			
				 1.
			Duties and Scope of Employment.

			
	
			
				 (a)
			Position.  Effective as of the Commencement Date (the “Employment”), the Company agrees to employ the Executive in the position of Chief Executive Officer (“CEO”).   The Executive shall report to the Company’s Board of Directors (the “Board”).  Further, no later than the first meeting of the Board following the commencement of the Employment,  the Executive shall be elected to the Board, and at all times thereafter during the term of the Executive’s service as Chief Executive Officer of the Company, the Executive shall serve as a member of the Board.  The Executive agrees to resign as a member of the Board in connection with any resignation or termination of his Employment as Chief Executive Officer, whether voluntary or involuntary, with or without cause and for any or no reason.

			
	
			
				 (b)
			Obligations to the Company.  During his Employment, the Executive shall be a full-time employee and shall devote the Executive’s full business efforts to the Company in order to perform the duties of the Executive’s position.   The Executive shall comply with the Company’s policies and rules that may be in effect from time to time during his Employment.  The Executive shall be located in the Company’s California headquarters, but acknowledges that this position may require travel for business purposes.

			
	
			
				 (c)
			No Conflicting Obligations.  The Executive represents and warrants to the Company that he is under no obligations or commitments, whether contractual or otherwise, that are inconsistent or conflict with his obligations under this Agreement.  The Executive represents and warrants that he will not use or disclose, in connection with his Employment, any trade secrets or other proprietary information or intellectual property in which the Executive or any other person or entity has any right, title or interest and that his Employment will not infringe or violate the rights of any other person or entity.  The Executive represents and warrants to the Company that he has returned all property and confidential information belonging to any prior employer.  During the Employment, the Executive agrees not to engage in any other employment, consulting or other business activity (whether full-time or part‐time) that would create a conflict of interest with the Company.

			
	
			
				 (d)
			Commencement Date.  The commencement date for the Employment pursuant to this Agreement will be January 2, 2019 (the “Commencement Date”).

			
	
			
				 2.
			Cash and Incentive Compensation.

			
	
			
				 (a)
			Salary.  The Company shall pay the Executive as compensation for his services an initial base salary at a gross annual rate of $450,000  (Four Hundred Fifty  Thousand Dollars).  This salary will be subject to adjustment pursuant to the Company’s employee compensation policies in effect from time to time.   Such salary shall be payable in accordance with the Company’s standard payroll procedures.   The annual compensation specified in this Section 2(a), as in effect from time to time, is referred to in this Agreement as “Base Salary.” 

		
			

		 

		

			

		

		

			 

		

 

		

			
	
			
				 (b)
			Cash Bonus.    The Executive shall be eligible for an annual incentive bonus.  The Executive’s eligible bonus for the Company’s 2019 fiscal year will be equal to 50% of his Base Salary (the “Eligible Bonus”), payable to the extent applicable performance goals have been satisfied.  The bonus for the Company’s 2019 fiscal year, if any, will be calculated based on achievement of Company performance goals.  The Board or Compensation Committee of the Board shall use commercially reasonable efforts to communicate such Company performance goals to the Executive by March 31 of each year, subject to any reasonable and necessary revisions to such goals during the year to accommodate the changing requirements of the Company’s business.    Such bonus shall be awarded based on the Company bonus policy and pursuant to the Company’s Management Cash Incentive Plan and, except as is otherwise provided herein, is subject to change at the sole discretion of the Company.  The determination of the Company’s Board or Compensation Committee with respect to bonuses shall be final and binding.  Except as otherwise provided herein, the Executive shall not be entitled to an annual bonus if the Executive is not employed by the Company on the date when such bonus is paid.  Further, the Executive shall not be entitled to a prorated bonus distribution upon a Separation from the Company. 

			
	
			
				 (c)
			Time-Based Stock Options.  

			
	
			
				 (i)
			Initial Award.  Subject to the approval of the Company’s Board, as soon as practicable after the Commencement Date and consistent with the Company’s standard equity grant cycle, the Company shall grant the Executive an option to purchase 100,000  (One Hundred Thousand) shares of the Company’s Common Stock (the “Initial Option”).  

			
	
			
				 (ii)
			Additional Award.  Subject to the approval of the Company’s Board, in connection with the Company’s annual equity award process and consistent with the Company’s standard equity grant cycle, the Company shall grant the Executive an option to purchase 100,000 (One Hundred Thousand) shares of the Company’s Common Stock (the “Second Option,” and together with the Initial Option, the “Options”).  

			
	
			
				 (iii)
			General.    The exercise price per share of each Option will be the closing price of the Company’s Common Stock on the date such Option is granted.   Each Option shall be subject to the terms and conditions applicable to options granted under the Company’s 2015 Equity Incentive Plan (the “Plan”), as described in the Plan and in each applicable Stock Option Agreement.  Except as otherwise provided herein, the Executive will vest in 25% of the option shares subject to each Option after twelve months of continuous, full-time service following the Commencement Date, and the balance will vest in equal monthly installments over the next thirty-six months of continuous, full-time service, as described in each applicable Stock Option Agreement. 

			
	
			
				 (d)
			Time-Based Restricted Stock Units (RSUs).  

			
	
			
				 (i)
			Initial Award.  Subject to the approval of the Company’s Board, as soon as practicable after the Commencement Date and consistent with the Company’s standard equity grant cycle, the Company shall grant the Executive 50,000 (Fifty Thousand) Restricted Stock Units (the “Initial RSUs”).  

			
	
			
				 (ii)
			Additional Award.  Subject to the approval of the Company’s Board, in connection with the Company’s annual equity award process and consistent with the Company’s standard equity grant cycle, the Company shall grant the Executive 50,000 (Fifty Thousand) Restricted Stock Units (the “Second RSUs,” and together with the Initial RSUs, the “RSUs”).  

			
	
			
				 (iii)
			General.  The RSUs shall be subject to the terms and conditions applicable under the Plan,  as described in the Plan and in each applicable Restricted Stock Unit Agreement.  Except 

		 

		

			

		

		

			2

		

 

	as otherwise provided herein, the Executive will vest in 25% of the RSUs after twelve months of continuous, full-time service following the Commencement Date, and the balance will vest in equal quarterly installments over the next thirty-six months of continuous, full‐time service, as described in the Plan and in each Restricted Stock Unit Agreement. 

			
	
			
				 (e)
			Long-Term Incentive Equity Awards.

			
	
			
				 (i)
			Awards.  Subject to the approval of the Company’s Board, as soon as practicable after the Commencement Date and consistent with the Company’s standard equity grant cycle, the Company shall grant the Executive (1) an option to purchase 200,000 (Two Hundred Thousand) shares of the Company’s Common Stock (the “Performance Option”) and (2) 100,000 (One Hundred Thousand) Restricted Stock Units (the “Performance RSUs,” and together with the Performance Option, the “Performance Awards”).

			
	
			
				 (ii)
			Vesting.  Vesting of the Performance Awards shall occur as follows;  provided, however, that if the First Milestone has not been achieved within four years of the Commencement Date, then the portion of the Performance Awards that would have vested on  the First Milestone Vesting (as defined below) and on the M1 Nine Month Date and the M1 Fifteen Month Date (each as defined below) shall expire and be cancelled in full and if  the Second Milestone has not been achieved within six years of the Commencement Date, then the portion of the Performance Awards that would have vested on  the Second Milestone Vesting (as defined below) and on the M2 Nine Month Date and the M2 Fifteen Month Date (each as defined below) shall expire and be cancelled in full:

			
					
						Number of Performance Option Shares

					
					
						Number of Performance RSUs

					
					
						Vesting Condition

				
	
					
						[*]

					
					
						[*]

					
					
						Completion of Continuous Service Through Last Day of Calendar Month in which First Milestone Achieved (“First Milestone Vesting Date”)

				
	
					
						[*]

					
					
						[*]

					
					
						Completion of Nine Months of Continuous Service Following First Milestone Vesting Date (“M1 Nine Month Date”) AND Stock Value Equals or Exceeds First Milestone Stock Value (1) on the M1 Nine Month Date or (2) When Averaged During the Three-Month Period Ending on the M1 Nine Month Date

				
	
					
						[*]

					
					
						[*]

					
					
						Completion of Fifteen Months of Continuous Service Following First Milestone Vesting Date (“M1 Fifteen Month Date”) AND Stock Value Equals or Exceeds First Milestone Stock Value (1) on the M1 Fifteen Month Date or (2) When Averaged During the Three-Month Period Ending on the M1 Fifteen Month Date

				
	
					
						[*]

					
					
						[*]

					
					
						Completion of Continuous Service Through Last Day of Calendar Month in which Second Milestone Achieved (“Second Milestone Vesting Date”)

				

		 

		

			

		

		

			3

		

 

	
					
						

					
						[*]

					
					
						[*]

					
					
						Completion of Nine Months of Continuous Service Following Second Milestone Vesting Date (“M2 Nine Month Date”) AND Stock Value Equals or Exceeds Second Milestone Stock Value (1) on the M2 Nine Month Date or (2) When Averaged During the Three-Month Period Ending on the M2 Nine Month Date

				
	
					
						[*]

					
					
						[*]

					
					
						Completion of Fifteen Months of Continuous Service Following Second Milestone Vesting Date (“M2 Fifteen Month Date”) AND Stock Value Equals or Exceeds Second Milestone Stock Value (1) on the M2 Fifteen Month Date or (2) When Averaged During the Three-Month Period Ending on the M2 Fifteen Month Date

				

		
			 
		

			
	
			
				 (iii)
			Definitions.

			
	
			
				 (1)
			First Milestone. “First Milestone” shall mean that the average closing price per share of the Company’s Common Stock for a calendar month calculated as of the last day of the calendar month (the “Stock Value”) equals or exceeds the quotient of (i) $2,000,000,000 and (ii) the Company’s outstanding shares as most recently reported on the Company’s Form 10-Q or Form 10-K (the “Capitalization”) (the “First Milestone Stock Value”);  

			
	
			
				 (2)
			Second Milestone.  “Second Milestone” shall mean that the Stock Value equals or exceeds the quotient of (i) $3,000,000,000 and (ii) the Capitalization (the “Second Milestone Stock Value”).

			
	
			
				 (3)
			Performance Milestones.    “Performance Milestone” shall mean the First Milestone and Second Milestone, collectively.  

		
			In the event the Company is subject to a Change in Control, the Company’s finance team shall evaluate whether the First Milestone or the Second Milestone has been achieved based on the value of the Company in connection with such Change in Control,  and such evaluation shall be confirmed, certified and approved by the Compensation Committee (and if so confirmed, certified and approved those portions of the Performance Awards shall vest as of immediately prior to such Change in Control).  Further, and for the avoidance of doubt, the First Milestone Stock Value or Second Milestone Stock Value requirement will be deemed satisfied at all times after such Change in Control (provided the First Milestone or Second Milestone has been achieved prior to or upon such Change in Control).
		

			
	
			
				 (i)
			General.  The exercise price per share of the Performance Option will be the closing price of the Company’s Common Stock on the date such Performance Option is granted.  The Performance Option and the Performance RSUs  shall be subject to the terms and conditions applicable to options granted under the Plan, as described in the Plan and in each applicable award agreement.  Notwithstanding the foregoing, no vesting shall occur until the Board or its Compensation Committee certifies that the First Milestone or the Second Milestone has been achieved.  The Company’s finance team shall be responsible for determining whether the First Milestone or the Second Milestone has been achieved, which such determination shall be undertaken monthly.  Upon such determination, the finance team shall notify the Compensation Committee of such result for its certification.

		
			

		 

		

			

		

		

			4

		

 

		

			
	
			
				 3.
			Executive Benefits.  As a regular status, full-time employee, the Executive will be eligible to participate in all Company-sponsored benefits,  subject in each case to the generally applicable terms and conditions of the plan or benefit in question and to the determinations of any person or committee administering such plan or benefit.   The Company’s benefits are subject to change from time to time and currently include medical, dental, vision and life insurance,  a 401(k) retirement plan with a Company match, as well as holiday pay and paid-time off.

			
	
			
				 4.
			Business Expenses.  The Executive will be reimbursed for ordinary and necessary business expenses that are submitted in accordance with the Company’s  then-current policies.  [In addition, the Executive shall be eligible to fly business class for all flights with a duration of four hours or longer].

			
	
			
				 5.
			Employment Relationship.

			
	
			
				 (a)
			Employment at Will.  The Executive’s Employment with the Company is for no specific period of time.  The Executive’s Employment with the Company shall be “at will,” meaning  that either the Executive or the Company may terminate the Executive’s Employment at any time and for any reason, with or without cause.  Any contrary representations that may have been made to the Executive shall be superseded by this Agreement.  This Agreement shall constitute the full and complete agreement between the Executive and the Company on the “at will” nature of the Executive’s Employment, which may only be changed in an express written agreement signed by the Executive and the Company’s General Counsel or Chief Executive Officer.

			
	
			
				 (b)
			Rights Upon Termination.  Upon any termination of Employment,  the Executive shall be entitled to the compensation, benefits and expense reimbursements that the Executive has earned under this Agreement before and including the effective date of the termination.

			
	
			
				 6.
			Termination Benefits.

			
	
			
				 (a)
			Conditions.  If the Executive is subject to an Involuntary Termination as described below in this Section 6, then the Executive will be entitled to the benefits described in this Section 6,  provided that the Executive has (i) completed three years of continuous service with the Company (except in the event of a CIC Involuntary Termination (as defined below),  (ii) returned all Company property in the Executive’s possession, (iii) resigned as a member of the boards of directors of the Company and all of its subsidiaries, to the extent applicable, and (iv)  executed a general release of all claims, in a reasonable form prescribed by the Company  (the “Release”).  The Executive must execute and return the Release on or before the date specified by the Company in the prescribed form (the “Release Deadline”).  The Release Deadline will in no event be later than fifty days after the Executive’s Separation.  For the avoidance of doubt, if  the Executive fails to return the Release on or before the Release Deadline, or if the Executive revokes the Release, then the Executive will not be entitled to the benefits described in this Section 6.

			
	
			
				 (b)
			Severance Pay.   If the Executive is subject to an Involuntary Termination, then the Company shall pay the Executive a lump sum equal to twelve months of Base Salary  (or if an Involuntary Termination occurs within eighteen months following such Change in Control (a “CIC Involuntary Termination”), then the Company shall pay the Executive a lump sum equal to the sum of (A) eighteen months of Base Salary plus (B) the Eligible Bonus (calculated, for the avoidance of doubt, as if all performance criteria had been satisfied at 100% of the target level (where applicable)).  Such amount will be referred to as the “Severance” payment.

		
			The cash Severance payment will be made within sixty days after the Executive’s Separation; however, if such sixty-day period spans two calendar years, then the payment will in any event be made in the second calendar year.
		

		
			

		 

		

			

		

		

			5

		

 

		

		
			If the Executive is subject to an Involuntary Termination and if the Executive elects to continue health insurance coverage under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) following Separation, then the Company will pay the Executive’s  monthly premium under COBRA until the earliest of (i) twelve months after Separation (eighteen months after Separation in the event of a CIC Involuntary Termination), (ii) the expiration of the Executive’s continuation coverage under COBRA or (iii) the date when the Executive receives substantially equivalent health insurance coverage in connection with new employment or self-employment.  Such amounts may be reported as taxable income to the Executive to the extent necessary or advisable to avoid adverse tax consequences to the Executive, the Company or the Company’s other employees, in the Company’s sole discretion.
		

			
	
			
				 (c)
			Vesting of Equity.  If the Executive is subject to an Involuntary Termination other than a CIC Involuntary Termination,  then the Executive will become vested in the greater of (i) an additional 50% of the then-unvested option shares and shares granted pursuant to stock or other equity or equity-based awards (“Equity Awards”) and (ii) a number of shares subject to Equity Awards determined as if the Executive had completed an additional twelve months of continuous service.  

		
			If the Executive is subject to a CIC Involuntary Termination,  pursuant to Section 6(d)(i), 6(d)(ii)(B) or 6(d)(ii)(C) of this Agreement, but not pursuant to Section 6(d)(ii)(A) of this Agreement, then the Executive shall become fully vested in all of the then-unvested Equity Awards.  If this subparagraph of Section 6(c) applies, then the subparagraph of Section 6(c)  immediately above shall not apply. 
		

		
			For the avoidance of doubt, and notwithstanding anything in this Agreement to the contrary, any greater benefits granted to the Executive pursuant to the terms of an existing equity award shall not be superseded hereby.
		

		
			Notwithstanding anything in this Section (c) to the contrary, no portion of any Performance Award shall vest on an accelerated basis if a Performance Milestone has not been achieved prior to or within 60 days following such Involuntary Termination.     
		

		
			Further, if an Involuntary Termination occurs after a Performance Milestone has been achieved but prior to completion of the continuous service requirements for subsequent vesting, the remaining portions of the Performance Awards shall be eligible for accelerated vesting in accordance with this Section (c) if and only if the Stock Value equals or exceeds the First Milestone Stock Value or Second Milestone Stock Value, as applicable, on either (1) the date of such Involuntary Termination or (2) when averaged during the three-month period ending on the date of such Involuntary Termination.
		

			
	
			
				 (d)
			Definition of “Involuntary Termination.”  For all purposes under this Agreement, “Involuntary Termination” shall mean a Separation as a result of either (i) the involuntary discharge of the Executive by the Company (or the parent or subsidiary employing him) for reasons other than Cause, or (ii) a voluntary resignation by the Executive following (A) a change in his position with the Company (or the parent or subsidiary employing him) that materially reduces his level of authority or responsibility without his consent, (B) a reduction in his then-current Base Salary or (C) receipt of notice that his principal workplace will be relocated more than thirty miles;  provided that  a resignation shall not constitute an Involuntary Termination unless (1) the Executive gives the Company written notice of the condition within ninety days after the condition comes into existence, (2) the Company fails to remedy the condition within thirty days after receiving such written notice and (3) such resignation is effective within six months after the condition first comes into existence.

			
	
			
				 (e)
			Definition of “Cause.”  For all purposes under this Agreement, “Cause” shall mean:

		
			

		 

		

			

		

		

			6

		

 

		

			
	
			
				 (i)
			The unauthorized use or disclosure by the Executive of the Company’s confidential information or trade secrets;

			
	
			
				 (ii)
			A material breach by the Executive of any agreement between the Executive and the Company;

			
	
			
				 (iii)
			A material failure by the Executive to comply with the Company’s written policies or rules;

			
	
			
				 (iv)
			The Executive’s commission of, or plea of “guilty” or “no contest” to, a  felony under the laws of the United States or any state  thereof;

			
	
			
				 (v)
			The Executive’s gross negligence, willful misconduct or commission of an act of fraud in his dealings with the Company;

			
	
			
				 (vi)
			Failure by the Executive to perform, or apply the requisite effort to, his assigned duties after receipt of written notice of such failure from the Company and a failure so to remedy;

			
	
			
				 (vii)
			The Executive’s (1) inability to perform the essential functions of the Executive’s position, with or without reasonable accommodation, for a period of at least 120 consecutive days because of a physical or mental impairment or (2) death; or

			
	
			
				 (viii)
			Failure to cooperate in good faith with a governmental or internal investigation of the Company or its directors, officers or executives, if the Company has requested such cooperation.

			
	
			
				 (f)
			Definition of “Change in Control.”  For all purposes under this Agreement, “Change in Control” means (a) the consummation of a merger or consolidation of the Company with or into another entity, or (b) the dissolution, liquidation or winding up of the Company.    The foregoing notwithstanding, a merger or consolidation of the Company does not constitute a “Change in Control” if immediately after the merger or consolidation a  majority of the voting power of the capital stock of the continuing or surviving entity, or any direct or indirect parent corporation of the continuing or surviving entity, will be owned by the persons who were the Company’s stockholders immediately prior to such merger or consolidation in substantially the same proportions as their ownership of the voting power of the Company’s capital stock immediately prior to the merger or consolidation.

			
	
			
				 (g)
			Definition of “Separation.”  For all purposes under this Agreement, “Separation” shall mean a  “separation from service,” as defined in the regulations under Section 409A of the Code and the Treasury regulations promulgated thereunder.

			
	
			
				 (h)
			Definition of “Code.”  For all purposes under this Agreement, “Code” shall mean the U.S. Internal Revenue Code of 1986, as amended.

			
	
			
				 (i)
			Golden Parachute Tax Limitation.

			
	
			
				 (i)
			In the event that it is determined that any payment or distribution of any type (cash, equity or otherwise) to or for the Executive’s benefit made by the Company, by any of its affiliates, by any person who acquires ownership or effective control of the Company or ownership of a substantial portion of the Company’s assets (within the meaning of Code Section 280G and the regulations thereunder) or by any affiliate of such person, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or under any other agreement including the Executive’s equity 

		 

		

			

		

		

			7

		

 

	award agreements (the “Total Payments”), would be subject to the excise tax imposed by Code Section 4999 or any interest or penalties with respect to such excise tax (such excise tax, together with any such interest or penalties, are collectively referred to as the “Excise Tax”), then the Total Payments shall be made to the Executive either (i) in full or (ii) as to such lesser amount as would result in no portion of the Total Payments being subject to Excise Tax (a “Reduced Payment”), whichever of the foregoing results in the Executive’s receipt, on an after-tax basis, of benefits of the greatest value, notwithstanding that all or some portion of the Total Payments may be subject to the Excise Tax.

			
	
			
				 (ii)
			For avoidance of doubt, the Total Payments shall include acceleration of vesting of equity awards granted by the Company that accelerate in connection with a Change in Control of the Company, but only to the extent such acceleration of vesting is deemed a parachute payment with respect to a Change in Control of the Company.

			
	
			
				 (iii)
			The determination (the “Determination”) as to whether any of the Total Payments are “parachute payments” (within the meaning of Code Section 280G) and whether to make a Reduced Payment shall be made by an independent accounting firm selected by the Company (the “Accounting Firm”), which shall provide such Determination, together with detailed supporting calculations both to the Company and to the Executive within seven business days of the Executive’s  Separation, if applicable, or such earlier time as is requested by the Company or by the Executive (if the Executive reasonably believes that any of the Total Payments may be subject to the Excise Tax).  In any event, as promptly as practicable following the Accounting Firm’s Determination, the Company shall pay or transfer to or for the Executive’s benefit such amounts as are then due to the Executive and shall promptly pay or transfer to or for the Executive’s benefit in the future such amounts as become due to the Executive.  Any determination by the Accounting Firm shall be binding upon the Executive and the Company, absent manifest error.

			
	
			
				 (iv)
			For purposes of determining whether to make a Reduced Payment, if applicable, the Company shall cause to be taken into account all federal, state and local income and employment taxes and excise taxes applicable to the Executive (including the Excise Tax).  If a Reduced Payment is made, the Company shall reduce or eliminate the Total Payments in the following order:  (1) cancellation of accelerated vesting of options with no intrinsic value, (2) reduction of cash payments, (3) cancellation of accelerated vesting of equity awards other than options, (4) cancellation of accelerated vesting of options with intrinsic value and (5) reduction of other benefits paid to the Executive.  In the event that acceleration of vesting is reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of the Executive’s equity awards.  In the event that cash payments or other benefits are reduced, such reduction shall occur in reverse order beginning with payments or benefits which are to be paid farthest in time from the date of the Determination.  For avoidance of doubt, an option will be considered to have no intrinsic value if the exercise price of the shares subject to the option exceeds the fair market value of such shares.

			
	
			
				 (v)
			As a result of uncertainty in the application of Code Sections 4999 and 280G of at the time of the initial Determination by the Accounting Firm hereunder, it is possible that payments will have been made by the Company that should not have been made (an “Overpayment”)  or that additional payments that will not have been made by the Company could have been made (an “Underpayment”), consistent in each case with the calculation of whether and to what extent a Reduced Payment shall be made hereunder.  In either event, the Accounting Firm shall determine the amount of the Underpayment or Overpayment that has occurred.  In the event that the Accounting Firm determines that an Overpayment has occurred, such Overpayment shall be treated for all purposes as a loan to the Executive that the Executive shall repay to the Company, together with interest at the applicable federal rate provided in Code Section 7872(f)(2); provided,  however, that no amount shall be payable by the Executive to the Company if and to the extent that such payment would not reduce the amount that is subject to taxation 

		 

		

			

		

		

			8

		

 

	under Code Section 4999.  In the event that the Accounting Firm determines that an Underpayment has occurred, such Underpayment shall promptly be paid or transferred by the Company to or for the Executive’s benefit, together with interest at the applicable federal rate provided in Code Section 7872(f)(2).

			
	
			
				 (vi)
			If this Section 6(i) is applicable with respect to the Executive’s receipt of a Reduced Payment, it shall supersede any contrary provision of any plan, arrangement or agreement governing the Executive’s rights to the Total Payments.

			
	
			
				 7.
			Proprietary Information and Inventions Agreement.  The Executive will remain subject to the Company’s standard Proprietary Information and Inventions Agreement, which the Executive has previously signed.

			
	
			
				 8.
			Successors.    This Agreement shall be binding upon any successor (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets.  For all purposes under this Agreement, the term “Company” shall include any successor to the Company’s business and/or assets that becomes bound by this Agreement.

			
	
			
				 9.
			Miscellaneous Provisions.

			
	
			
				 (a)
			Notice.  Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid.  In the case of the Executive, mailed notices shall be addressed to him at the home address that he most recently communicated to the Company in writing.  In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Corporate Secretary.   Notices may also be sent by electronic mail or facsimile and will be effective upon transmission or confirmation of transmission, as the case may be, to the address of the party to be noticed as set forth herein or to such other address as such party last provided to the other by written notice.

			
	
			
				 (b)
			Modifications and Waivers.  No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing by the Executive and by an officer of the Company authorized by the Company’s Board.  No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time.

			
	
			
				 (c)
			409A.  If the Company determines that the Executive is a “specified employee” under Section 409A(a)(2)(B)(i) of the Code at the time of the Executive’s Separation, then the cash Severance payment under Section 6, to the extent that it is subject to Section 409A of the Code, will be paid on the first business day following the earlier of (A) the expiration of the six-month period measured from the Executive’s Separation or (B) the date of the Executive’s death.  For purposes of Section 409A of the Code, each “payment” (as defined by Section 409A of the Code) made under this Agreement shall be considered a “separate payment.”  In addition, for purposes of Section 409A of the Code, each such payment shall be deemed exempt from Section 409A of the Code to the fullest extent possible under the “short-term deferral” exemption of Treasury Regulation § 1.409A-1(b)(4), as well as any other applicable exemptions.

			
	
			
				 (d)
			Whole Agreement.  No other agreements, representations or understandings (whether oral or written and whether express or implied) that are not expressly set forth in this Agreement have been made or entered into by either party with respect to the subject matter hereof.  This Agreement 

		 

		

			

		

		

			9

		

 

	contains the entire understanding of the parties with respect to the subject matter hereof and supersedes and replaces any prior agreements, representations or understandings between the parties with respect to the subject matter hereof, including without limitation that certain employment agreement by and between the Executive and the Company entered into as of August 7, 2017, as amended from time to time.

			
	
			
				 (e)
			Withholding Taxes.  All forms of compensation referred to in this Agreement shall be subject to reduction to reflect taxes or other deductions required to be withheld by law.  The Executive is encouraged to obtain his own tax advice regarding the Executive’s compensation from the Company.  The Executive agrees that the Company does not have a duty to design its compensation policies in a manner that minimizes the Executive’s tax liabilities, and the Executive will not make any claim against the Company or its Board related to tax liabilities arising from the Executive’s compensation.

			
	
			
				 (f)
			Choice of Law, Choice of Venue and Severability.  This Agreement shall be interpreted in accordance with the laws of the State of California (except their provisions governing the choice of law).  The Company and the Executive agree to file any claims, complaints or actions, whether in law or equity, arising out of the Executive’s employment with the Company with the federal courts of competent jurisdiction located in San Francisco, California, and the state courts of competent jurisdiction located in San Mateo County, State of California only, and such courts shall have exclusive jurisdiction of any such matters.  If any provision of this Agreement becomes or is deemed invalid, illegal or unenforceable in any applicable jurisdiction by reason of the scope, extent or duration of its coverage, then such provision shall be deemed amended to the minimum extent necessary to conform to applicable law so as to be valid and enforceable or, if such provision cannot be so amended without materially altering the intention of the parties, then such provision shall be stricken and the remainder of this Agreement shall continue in full force and effect.  If any provision of this Agreement is rendered illegal by any present or future statute, law, ordinance or regulation (collectively, the “Law”), then such provision shall be curtailed or limited only to the minimum extent necessary to bring such provision into compliance with the Law.  All the other terms and provisions of this Agreement shall continue in full force and effect without impairment or limitation.

			
	
			
				 (g)
			No Assignment.  This Agreement and all rights and obligations of the Executive hereunder are personal to the Executive and may not be transferred or assigned by the Executive at any time.  The Company may assign its rights under this Agreement to any entity that assumes the Company’s obligations hereunder in connection with any sale or transfer of all or a substantial portion of the Company’s assets to such entity.

			
	
			
				 (h)
			Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

		
			[Remainder of page intentionally left blank]
		

		
			 
		

		
			 
		

		
			

		 

		

			

		

		

			10

		

 

		

			Exhibit 10.1

		

		

			THE SYMBOL “[*]” DENOTES PLACES WHERE CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH (i) NOT MATERIAL, AND (ii) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED

		

		

			 

		

		

		
			IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its duly authorized officer, as of the day and year written below.
		

			
					
						 

					
					
						EXECUTIVE

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By: 

					
					
						/s/ Steve Chapman

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Date: 

					
					
						1/8/2019

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Name:    STEVE CHAPMAN

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Personal Email Address:   [*]

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Address:   [*]

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						[*]

				

		
			 
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						NATERA, INC.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By: 

					
					
						/s/ Todd Cozzens

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Date: 

					
					
						1/22/2019

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Name: 

					
					
						Todd Cozzens

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Title: 

					
					
						Director

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