Document:

Exhibit_10_2

		

			Exhibit 10.2

		

		

			 

		

		

			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

		

		

			 

		

		

			CONFIDENTIAL

		

		

			 

		

		
			DNAnexus, Inc.
		

		
			Fifth Amendment to the Application
		

		
			Service Provider Agreement dated September 19, 2014
		

		
			This Fifth Amendment (“Fifth Amendment”) is made as of October 18, 2019 (“Fifth Amendment Effective Date”) by and between DNAnexus, Inc., a Delaware corporation, having its principal place of business at 1975 W. El Camino Real, Suite 101, Mountain View, CA 94040 ("DNAnexus" or “Vendor”), and Natera, Inc., having its principal place of business at 201 Industrial Road, Suite 410, San Carlos, CA 94070 (“Natera”).
		

		
			Background
		

		
			A.    Vendor and Natera entered into that certain Application Service Provider Agreement having an effective date of September 19, 2014 (“Agreement”), as amended by the Amendment dated June 8, 2015, and the Second Amendment dated December 29, 2016, and the Third Amendment dated January 1, 2018, and the Fourth Amendment dated July 1, 2018 (“Fourth Amendment”);
		

		
			B.    Vendor,  for its business client in [*] (the “Territory”)  (such client, the “Client”), supports its Client in its operation of a version of the Vendor System within the country with similar functions as those of the Vendor System available in the U.S. (the “Local Platform”).
		

		
			C.    Natera desires to have Vendor develop and implement certain features to the Local Platform (the “Features”) to help allow [*]  (“Natera Customer”), and its authorized licensees and customers in the Territory(collectively, the “Natera Customer Parties ”) to access and use Natera’s algorithm application through the Local Platform, to analyze certain de-identified  patient data (the “Customer Data”)for purposes of performing the [*] test (the “Customer Test”) in the Territory,  and DNAnexus is willing to develop and implement such Features in accordance with the terms and conditions hereunder (the “Project”); provided, however, Vendor and Natera hereby agree that, notwithstanding anything to the contrary any and all features, modifications and changes to the Vendor’s platforms and/or systems shall be wholly-owned by Vendor and Natera shall use commercially reasonable efforts to take or cause to be taken necessary steps to facilitate Vendor’s ownership.
		

		
			NOW, THEREFORE, the Parties hereby agree as follows:
		

		
			1.    Project Plan and Performance.
		

		
			a.     The parties shall work in good faith to develop and finalize a development plan for the Project (such plan, the “Project Plan”) within fifteen (15) days following the Amendment Effective Date that specifies the Features to be developed by Vendor, each party’s tasks and responsibilities, timelines, milestones and deliverables, and other necessary terms and conditions. The Project Plan, upon the execution by both parties, shall be deemed to be incorporated in the Agreement by reference.
		

		
			
		

		
			

		 

		

		
			 
		

		
			Vendor shall perform its obligations and deliver the milestones and other deliverables as specified in the Project Plan, in accordance with the timelines and terms and conditions therein.
		

		
			b.    Availability of the Local Platform.
		

		
			i.     Vendor shall use commercially reasonable efforts to  (A)  maintain the capability and performance of the Local Platform through its Client, and (B) collaborate with its Client to assist Client to provide the Natera Customer Parties with access to the Local Platform for purposes of performing the Customer Test during the Term of this Agreement.
		

		
			ii.    To the extent permitted under its agreement with its Client and subject to confidentiality restrictions, Vendor shall notify Natera in writing  (A) at least [*] days prior to the termination for convenience or replacement of the Client initiated by Vendor, and (B) as soon as practical should Vendor be aware of or reasonably expect any event or incident that will likely have a material adverse impact on the availability or performance of the Local Platform.
		

		
			c.     Vendor acknowledges and agrees that its completion of the Project is the essential condition and consideration for Natera to agree to the terms provided in Sections 2  through 8 hereunder that will amend the Agreement (such terms, the  “Amendment Terms”) and therefore, if Natera properly terminates the Project  due to Vendor’s uncured material breach of the terms of the Project Plan or Natera’s proper Rejection in accordance with Section 11.6 of the Agreement,  Natera is also entitled to concurrently terminate the Amendment Terms such that the Amendment Terms shall no longer be effective or enforceable ( such Natera right is the “Amendment Revocation Right”). The Amendment Revocation Right shall expire on the earlier of completion of the Project and March 31, 2020.   Upon Natera’s proper exercise of its Amendment Revocation Right, Vendor shall promptly refund to Natera any prepaid but unused fees paid under this Fifth Amendment.
		

		
			2.    Protection of Personal Data in the Territory.
		

		
			a.     Notwithstanding anything to the contrary contained in this Fifth Amendment or the Agreement, the parties represent and warrant the following,  each to the extent within their respective control:
		

		
			i.    without prior written or effective consent of Natera Customer,  Vendor’s internal policies shall reflect that none of Natera (including its representatives), Vendor (though operations access capability exists) or any non-Client third party may be granted access to any Customer Data submitted to the Local Platform;
		

		
			ii.    Vendor shall not initiate or direct transmission of the Customer Data outside of the Territory and shall implement reasonable legally required measures and policies, and follow standard practices,  designed to support preventing any unauthorized third party from transmitting the Customer Data that is in Vendor’s control outside of the Territory for any purpose without Natera Customer’s prior consent in writing; and
		

		
			iii.   To the extent Vendor has control over its Client (based on a contractual arrangement or other relationship)  shall cause such Client to comply with applicable national and provincial, legal, regulatory and registration requirements of the Territory regulating collection, storage, transmission, use and processing of human genic data, health data and /or personal data, as well as operation of internet business and cloud computing businesses, including without limitation, [*].
		

		
			b.    Subject to confidentiality obligations, if the parties reasonably believe that a breach of any of the representations or warranties in subsection a. above or of confidentiality  has occurred,  (including without limitation  any breach as a result of  its partners’ or contractors’  action or inaction)  or is likely to occur or any Customer Data submitted to the Local Platform in the Territory has been improperly transmitted outside the Territory  without Natera Customer’s consent, Vendor and Natera shall promptly cooperate RE such breach or potential breach and take all reasonable efforts to minimize the impact of such breach.
		

		
			3.    Section 2 of the Agreement is hereby amended such that the first sentence thereof is deleted in its entirety and replaced with the following:
		

		
			“The term of this Agreement shall commence on the Effective Date and continue in full force until September 30, 2023 (the “Initial Term”).”
		

		
			4.    Section 24.3 of the Agreement is hereby amended and restated as follows: “Termination for Convenience. Without reason, penalty or breach of this Agreement and notwithstanding the other Party’s compliance with all requirements of this Agreement, 

		 

Natera and Vendor may each terminate this Agreement or any Statement of Work, Service, or Deliverable, provided that written notice is given to the other Party at least one hundred and eighty (180) days prior to the effective date of termination; provided, however, Natera may in no case terminate this Agreement or any Statement of Work, Service, Deliverable or other item in connection herewith prior to December 31, 2020 except in accordance with Section 24.1 (Bankruptcy) or 24.2 (Material Breach).”
		

		
			5.    Section 3 of the Fourth Amendment is hereby amended and restated as follows such that the terms therein regarding bona fide offers from another party shall no longer apply:
		

		
			“Exhibit B of the Agreement is hereby replaced in its entirety with Exhibits B1-B6 of this Fourth Amendment.”
		

		
			6.    Exhibit B2 of the Agreement is hereby amended to add the below text after the last sentence of Exhibit B2 such that upon the expiration of the “Initial License Term” on March 31, 2020, the following additional fees shall apply during the remainder of the Initial Term (as defined below):
		

		
			“DNAnexus will charge Natera a non-refundable license fee of [*] (the ‘New License Limit’) to be paid in equal installments of [*] over a period of [*] consecutive quarters commencing on April 1, 2020 and continuing until [*] (‘Renewal License Term’). DNAnexus shall submit invoices to Natera quarterly in advance of each quarter starting April 1, 2020 for use of up to [*]-worth of services (‘New Term License Limit’) at Discounted Pricing, as set forth in Exhibit B4. Should Natera utilize services in excess of the New Term License Limit at any point during the Renewal License Term, DNAnexus will charge contingent fees to Natera for usage in excess of the New Term License Limit at the Discounted Resource-based and Discounted Per-test Pricing, etc. (see Exhibit B4) (plus, where applicable, the fees identified in the Fifth Amendment), until commencement of the next renewal License Term after the Renewal License Term. Notwithstanding the foregoing, in the event Natera properly terminates the Agreement pursuant to the terms of Section 24.1, 24.2 or 24.3 the prepaid unused license fee (if any) will be promptly refunded to Natera prorated in an amount commensurate with services provided through the effective date of the termination. If actual resource and per test usage exceeds the cumulative quarterly invoiced prepaid amount, then DNAnexus may accelerate the next quarterly invoice.”
		

		
			7.    For all Natera Customer tests performed in connection with Natera outside of the Territory, notwithstanding the foregoing, separate from the per test pricing set forth in Exhibit B4, Natera shall pay DNAnexus an additional per test fee for such tests run in connection with Natera Customer, at the applicable rates as set forth immediately below (the “Natera-Customer Test Fees”).  Further, Natera guarantees to DNAnexus a minimum nonrefundable, nontransferable Natera-Customer Test Fees payment amount of [*] (such amount, the “Minimum Customer Fee”) over the [*] months following the Fifth Amendment Effective Date.  Should Natera fail to run enough qualifying tests and thus fail to pay such Minimum Customer Fee during such [*] month period, it will pay the difference between [*] and the already-paid Natera-Customer Test Fees within thirty (30) days following such [*] month period. So long as Natera has already paid DNAnexus the Minimum Customer Fee, the Natera-Customer Test Fee rates in the table below shall no longer apply and be replaced by the then-effective standard DNAnexus fees applicable to Natera.
		

			
					
						(“Value-add price per Natera test [*]”)

					
					
						Production test monthly volume

				
	
					
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			8.    The table in Exhibit B4 for “Discounted Per-test pricing” on page 9 of the Fourth Amendment is hereby amended and restated as follows:
		

		
			 
		

			
					
						Value-add price per test

					
					
						Production test monthly volume

				
	
					
						[*]

					
					
						[*]

				
	
					
						[*]

					
					
						[*]

				
	
					
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			9.    Except as expressly provided herein, the Agreement remains in full force and effect. If there is a conflict between this Fifth Amendment and the Agreement or any earlier amendment or renewal, the terms of this Fifth Amendment will prevail.
		

		
			IN WITNESS WHEREOF, the parties have executed this Fifth Amendment as of the Fifth Amendment Effective Date.
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						DNAnexus, Inc.

					
					
						   

					
					
						Natera, Inc.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Richard Daly

					
					
						 

					
					
						By:

					
					
						/s/ John Fesko

				
	
					
						Name

					
					
						Richard Daly

					
					
						 

					
					
						Name

					
					
						John Fesko

				
	
					
						Title

					
					
						CEO

					
					
						 

					
					
						Title

					
					
						Senior Vice President, BDExhibit

FEDERAL HOME LOAN BANK OF BOSTON ENDORSEMENT SPLIT-DOLLAR AGREEMENT

THIS AGREEMENT is adopted this 24th day of May, 2005, by and between FEDERAL HOME LOAN BANK OF BOSTON, a bank organized under the laws of the Commonwealth of Massachusetts with its main office in Boston, Massachusetts (the "Bank"), and FRANK NITKIEWICZ (the "Executive").

INTRODUCTION

To encourage the Executive to remain an employee of the Bank, the Bank is willing to divide the death proceeds of a life insurance policy on the Executive's life. The Bank will pay life insurance premiums from its general assets.

AGREEMENT

The Bank and the Executive agree as follows:

ARTICLE 1 - GENERAL DEFINITIONS

The following terms shall have the meanings specified:

1.1.    "Insurer" means the insurance company identified in Exhibit A to this Agreement.

1.2.    "Policy" means the specific life insurance policy issued by the Insurer identified in Exhibit A to this Agreement.

ARTICLE 2 - POLICY OWNERSHIP/INTERESTS

2.1.    Bank Ownership. The Bank is the sole owner of the Policy and shall have the right, to the extent of its interest, to exercise all incidents of ownership. The Bank shall be the beneficiary of the remaining death proceeds of the Policy after the interest of the Executive has been paid according to Section 2.2 below.

2.2.    Executive's Interest. The Executive shall have the right to designate a beneficiary or beneficiaries to receive his share of the proceeds payable upon the death of the Executive as
provided in this Section 2.2.  In the event of the Executive's death while in the employ of the
Bank, the Executive's beneficiary shall be paid $1,075,000, in a lump sum, from the death proceeds of the Policy, but in no event more than the total death benefit payable from the Policy. No death benefit shall be paid to the Executive's beneficiary if the Executive's death occurs after the Executive's termination of employment with the Bank.

2.3    Comparable Coverage. Upon execution of this Agreement, the Bank shall maintain the Policy in full force and effect and in no event shall the Bank amend, terminate or otherwise abrogate the Executive's interest in the Policy, unless the Bank replaces the Policy with a comparable insurance policy to cover the benefit provided under this Agreement, and the

Bank and the Executive execute a new Split-Dollar Policy Endorsement for said comparable insurance policy. The Policy or any comparable policy shall be subject to the claims of the Bank's creditors.

ARTICLE 3 - PREMIUMS

3.1.    Premium Payment. The Bank shall pay any premiums due on the Policy.

3.2.    Taxable Benefit. The Executive understands that he will receive a taxable benefit relating to the insurance as required by the Internal Revenue Service. The Bank (or its administrator) will report to the Executive the amount of imputed income received each year on Form W-2 or its equivalent.  Such amount will be determined by multiplying the current one­ year term life insurance rate for the Executive's age by the aggregate death benefit payable to the Executive's beneficiary. The "current one-year term life insurance rate" is the minimum amount required to be imputed under IRS regulations or other applicable authority.

ARTICLE 4 - INSURER

The Insurer shall not be deemed a party to this Agreement, but will respect the rights of the parties as herein developed upon receiving an executed copy of this Agreement. Payment or other performance in accordance with the Policy provisions shall fully discharge the Insurer from any and all liability.

ARTICLE 5 - CLAIMS AND REVIEW PROCEDURES

Any claims for benefits under the Agreement shall follow the claims procedure set forth in Exhibit B hereto.

ARTICLE 6 - AMENDMENTS AND TERMINATION

This Agreement may be amended or terminated only by a written agreement signed by the Bank and the Executive.

ARTICLE 7 - MISCELLANEOUS

7.1.    Binding Effect. This Agreement shall bind the Executive and the Bank and their beneficiaries, survivors, executors, administrators and transferees, and any Policy beneficiary.

7.2.    No Guarantee of Employment. This Agreement is not an employment policy or contract. It does not give the Executive the right to remain an employee of the Bank, nor does it interfere with the Bank's right to discharge the Executive. It also does not require the Executive to remain an employee nor interfere with the Executive's right to terminate employment at any time.

7.3.    Applicable Law.  The Agreement and all rights hereunder shall be governed by and construed according to the laws of the Commonwealth of Massachusetts, except to the extent preempted by the laws of the United States of America.

7.4.    Notice.  Any notice, consent or demand required or permitted to be given under the provisions of this Agreement by one party to another shall be in writing, shall be signed by the party giving or making the same, and may be given either by delivering the same to such other party personally, or by mailing the same, by United States certified mail, postage prepaid, to such party, addressed to his last known address as shown on the records of the Bank. The date of such mailing shall be deemed the date of such mailed notice, consent or demand.

7.5.    Entire Agreement. This Agreement constitutes the entire agreement between the Bank and the Executive as to the subject matter hereof. No rights are granted to the Executive by virtue of this Agreement other than those specifically set forth herein.

7.6.    Administration. The Bank shall have powers which are necessary to administer this Agreement, including but not limited to:

		
	(a)
	Interpreting, for the Bank, the provisions of this Agreement;

		
	(b)
	Establishing and revising the method of accounting, on the Bank's books, for this Agreement;

		
	(c)
	Maintaining, for the Bank, a record of benefit payments; and

		
	(d)
	Establishing, for the Bank, rules and prescribing any forms necessary or desirable to administer this Agreement.

7.7.    Named Fiduciary. The Bank shall be the named fiduciary and plan administrator under this Agreement. The named fiduciary may delegate to others certain aspects of the management and operation responsibilities of this Agreement, including the employment of advisors and the delegation of ministerial duties to qualified individuals.

IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above written.

	
			
	Attest:
	 
	Federal Home Loan Bank of

	 
	 
	Boston

	 
	 
	 

	 
	 
	By: /s/ Ellen McLaughlin

	Witness
	 
	Title: Sr. V.P. & General Counsel

	 
	 
	 

	 
	 
	 

	 
	 
	/s/ Frank Nitkiewicz

	Witness
	 
	Frank Nitkiewicz

	 
	 
	 

                    

EXHIBIT A - POLICY SUBJECT TO AGREEMENT

The following insurance policies and certificates shall be subject to the Endorsement Split-Dollar Agreement between the Federal Home Loan Bank of Boston and Frank Nitkiewicz dated May 24, 2005.

	
				
	 
	Policy No. 
	 
	Name of lnsurer

	 
	 
	 
	 

	 
	1552230
	 
	ING - Security Life of Denver

	 
	 
	 
	 

	 
	 
	 
	 

	 
	5/24/2005
	 
	/s/ Frank Nitkiewicz

	 
	Date
	 
	Signature

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

EXHIBIT B - CLAIMS PROCEDURE

1.    Any  controversy  or claim arising  out of or relating to this Agreement  shall be filed with the Named Fiduciary which shall make all determinations concerning such claim. Any decision by the Named Fiduciary denying such claim shall be in writing and shall be delivered to all parties in interest in accordance with the notice provisions of Section 7.4 hereof. Such decision shall set forth the reasons for denial in plain language. Pertinent provisions of the Agreement shall be cited. This notice of denial of benefits will be provided within 90 days of the Named Fiduciary's receipt of the claimant's claim for benefits.  If the Named Fiduciary fails to notify the claimant of its decision regarding his or her claim, the claim shall be considered denied, and the claimant shall then be permitted to proceed with his or her appeal as provided in this Section.

2.    A claimant who has been completely or partially denied a benefit shall be entitled to appeal this denial of his or her claim by filing a written statement of his or her position with the Named Fiduciary no later than sixty (60) days after receipt of the written notification of such claim denial. The Named Fiduciary shall schedule an opportunity for a full and fair review of the issue within thirty (30) days of receipt of the appeal.

3.    The decision on review shall set forth specific reasons for the decision, and shall cite specific references to the pertinent Agreement provisions on which the decision is based. Following its review of any additional information submitted by the claimant, either through the hearing process or otherwise, the Named Fiduciary shall render a decision on its review of the denied claim in the following manner:

4.    The Named Fiduciary shall make its decision regarding the merits of the denied claim within 60 days following its receipt of the request for review (or within 120 days after such receipt, in a case where there are special circumstances requiring extension of time for reviewing the appealed claim). The Named Fiduciary shall deliver the decision to the claimant in writing.  If an extension of time for reviewing the appealed claim is required because of special circumstances, written notice of the extension shall be furnished to the claimant prior to the commencement of the extension. If the decision on review is not furnished within the prescribed time, the claim shall be deemed denied on review.

BENEFICIARY DESIGNATION FORM
FOR THE ENDORSEMENT SPLIT-DOLLAR AGREEMENT

PRIMARY DESIGNATION:

	
				
	Name
	Address
	Relationship
	Percentage

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

SECONDARY (CONTINGENT) DESIGNATION:

	
				
	Name
	Address
	Relationship
	Percentage

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

All sums payable under the Endorsement Split-Dollar Agreement by reason of my death shall be paid to the Primary Beneficiary, if he or she survives me, and if no Primary Beneficiary shall survive me, then to the Secondary (Contingent) Beneficiary. If more than one surviving Primary or Secondary Beneficiary, each shall share in accordance with percentage indicated.

	
					
	 
	 
	 
	 
	 

	Name
	 
	 
	Date

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