Document:

Form of Medium-Term Notes, Series K, Principal at Risk Securities Linked

 Exhibit 4.4 

[Face of Note] 

Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation
(“DTC”), to the Company or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as requested by an authorized representative
of DTC (and any payment is made to Cede & Co. or such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
registered owner hereof, Cede & Co., has an interest herein. 
  

	 CUSIP NO. 94986RY47 
	
FACE AMOUNT: $                   
  

 REGISTERED NO.          

WELLS FARGO & COMPANY 

MEDIUM-TERM NOTE, SERIES K 

Due Nine Months or More From Date of Issue 

Principal at Risk Securities Linked to the 

SPDR® S&P 500® ETF
Trust due May 7, 2019 
 WELLS FARGO & COMPANY, a corporation duly organized and existing under the laws
of the State of Delaware (hereinafter called the “Company,” which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & Co., or registered
assigns, an amount equal to the Redemption Amount (as defined below), in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts, on the Stated Maturity Date. The
“Initial Stated Maturity Date” shall be May 7, 2019. If the Calculation Day (as defined below) is not postponed, the Initial Stated Maturity Date will be the “Stated Maturity Date.” If the Calculation Day is
postponed, the “Stated Maturity Date” shall be the later of (i) the Initial Stated Maturity Date and (ii) the third Business Day (as defined below) after the Calculation Day as postponed. This Security shall not bear any
interest. 
 Any payments on this Security at Maturity will be made against presentation of this Security at the office or
agency of the Company maintained for that purpose in the City of Minneapolis, Minnesota and at any other office or agency maintained by the Company for such purpose. 

“Face Amount” shall mean, when used with respect to this Security, the amount set forth on the face of this
Security as its “Face Amount.” 

 Determination of Redemption Amount 

The “Redemption Amount” of this Security will equal: 

 

	 	•	 	 if the Ending Price is greater than the Starting Price: the lesser of: 

 

	 	(i)	 the Face Amount plus: 

 

																					
	 	 	  Face Amount x  
	 	 	 	  Ending Price – Starting Price  	 	 	 	   x  Participation Rate 
	 	 	 	  ; and
	 		 		 	
	 	 	 	 	 	Starting Price	 	 	 	 	 	 	 		 		 	

  

	 	(ii)	 the Capped Value; 

  

	 	•	 	 if the Ending Price is less than or equal to the Starting Price, but greater than or equal to the Threshold
Price: the Face Amount; or 

  

	 	•	 	 if the Ending Price is less than the Threshold Price: the Face Amount minus: 

 

											
		 	 	 	  Face Amount x  
	 	Threshold Price – Ending Price  	 	 	 	
		 	 	 	 	Starting Price	 	 	 	

 All calculations with respect to the Redemption Amount will be rounded to the nearest one
hundred-thousandth, with five one-millionths rounded upward (e.g., 0.000005 would be rounded to 0.00001); and the Redemption Amount will be rounded to the nearest cent, with one-half cent rounded upward. 

The “Fund” shall mean the SPDR S&P 500 ETF Trust. 

The “Pricing Date” shall mean October 31, 2016. 

The “Starting Price” is $212.55, the Fund Closing Price of the Fund on the Pricing Date. 

The “Ending Price” will be the Fund Closing Price of the Fund on the Calculation Day. 

The “Fund Closing Price” with respect to the Fund on any Trading Day means the product of (i) the
Closing Price of one share of the Fund (or one unit of any other security for which a Fund Closing Price must be determined) on such Trading Day and (ii) the Adjustment Factor applicable to the Fund on such Trading Day. 

The “Closing Price” with respect to a share of the Fund (or one unit of any other security for which a
Closing Price must be determined) on any Trading Day means the price, at the scheduled weekday closing time, without regard to after hours or any other trading outside the regular trading session hours, of the share on the principal United States
securities exchange registered under the Securities Exchange Act of 1934, as amended, on which the share (or any such other security) is listed or admitted to trading. 

  
 2 

 The “Adjustment Factor” means, with respect to a share of the
Fund (or one unit of any other security for which a Fund Closing Price must be determined), 1.0, subject to adjustment in the event of certain events affecting the shares of the Fund. See “—Anti-dilution Adjustments Relating to the Fund;
Alternate Calculation —Anti-dilution Adjustments” below. 
 The “Threshold Price” is $191.295,
which is equal to 90% of the Starting Price. 
 The “Participation Rate” is 140%. 

The “Capped Value” is 123% of the Face Amount of this Security. 

The “Underlying Index” shall mean the S&P 500 Index. 

“Business Day” shall mean a day, other than a Saturday or Sunday, that is neither a legal holiday nor a day
on which banking institutions are authorized or required by law or regulation to close in New York, New York. 
 A
“Trading Day” with respect to the Fund means a day, as determined by the Calculation Agent, on which the Relevant Stock Exchange (as defined below) and each Related Futures or Options Exchange (as defined below) with respect to the
Fund, or any successor thereto, if applicable, are scheduled to be open for trading for their respective regular trading sessions. 

The “Relevant Stock Exchange” for the Fund means the primary exchange or quotation system on which shares (or
other applicable securities) of the Fund are traded, as determined by the Calculation Agent. 
 The “Related Futures
or Options Exchange” for the Fund means each exchange or quotation system where trading has a material effect (as determined by the Calculation Agent) on the overall market for futures or options contracts relating to the Fund. 

The “Calculation Day” shall be April 30, 2019. If such day is not a Trading Day, the Calculation Day
will be postponed to the next succeeding Trading Day. The Calculation Day is also subject to postponement due to the occurrence of a Market Disruption Event (as defined below). If a Market Disruption Event occurs or is continuing with respect to the
Fund on the Calculation Day, such Calculation Day will be postponed to the first succeeding Trading Day on which a Market Disruption Event has not occurred and is not continuing; however, if such first succeeding Trading Day has not occurred as of
the eighth Trading Day after the originally scheduled Calculation Day, that eighth Trading Day shall be deemed the Calculation Day. If the Calculation Day has been postponed eight Trading Days after the originally scheduled Calculation Day and a
Market Disruption Event occurs or is continuing with respect to the Fund on such eighth Trading Day, the Calculation Agent will determine the Closing Price of the Fund on such eighth Trading Day based on its good faith estimate of the value of the
shares (or other applicable securities) of the Fund as of the Close of Trading (as defined below) on such eighth Trading Day. See “—Market Disruption Events.” 

“Calculation Agent Agreement” shall mean the Calculation Agent Agreement dated as of March 18, 2015
between the Company and the Calculation Agent, as amended from time to time. 

  
 3 

 “Calculation Agent” shall mean the Person that has entered into
the Calculation Agent Agreement with the Company providing for, among other things, the determination of the Ending Price and the Redemption Amount, which term shall, unless the context otherwise requires, include its successors under such
Calculation Agent Agreement. The initial Calculation Agent shall be Wells Fargo Securities, LLC. Pursuant to the Calculation Agent Agreement, the Company may appoint a different Calculation Agent from time to time after the initial issuance of this
Security without the consent of the Holder of this Security and without notifying the Holder of this Security. 
 Market Disruption Events

 A “Market Disruption Event” means, with respect to the Fund, any of the following events as
determined by the Calculation Agent in its sole discretion: 
  

	 	(A)	 The occurrence or existence of a material suspension of or limitation imposed on trading by the Relevant Stock
Exchange or otherwise relating to the shares (or other applicable securities) of the Fund or any Successor Fund (as defined below) on the Relevant Stock Exchange at any time during the one-hour period that ends at the Close of Trading on such day,
whether by reason of movements in price exceeding limits permitted by such Relevant Stock Exchange or otherwise. 

  

	 	(B)	 The occurrence or existence of a material suspension of or limitation imposed on trading by any Related
Futures or Options Exchange or otherwise in futures or options contracts relating to the shares (or other applicable securities) of the Fund or any Successor Fund on any Related Futures or Options Exchange at any time during the one-hour period that
ends at the Close of Trading on that day, whether by reason of movements in price exceeding limits permitted by the Related Futures or Options Exchange or otherwise. 

 

	 	(C)	 The occurrence or existence of any event, other than an early closure, that materially disrupts or impairs the
ability of market participants in general to effect transactions in, or obtain market values for, shares (or other applicable securities) of the Fund or any Successor Fund on the Relevant Stock Exchange at any time during the one-hour period that
ends at the Close of Trading on that day. 

  

	 	(D)	 The occurrence or existence of any event, other than an early closure, that materially disrupts or impairs the
ability of market participants in general to effect transactions in, or obtain market values for, futures or options contracts relating to shares (or other applicable securities) of the Fund or any Successor Fund on any Related Futures or Options
Exchange at any time during the one-hour period that ends at the Close of Trading on that day. 

  

	 	(E)	 The closure of the Relevant Stock Exchange or any Related Futures or Options Exchange with respect to the Fund
or any Successor Fund prior to its Scheduled Closing Time unless the earlier closing time is announced by the Relevant Stock Exchange or Related Futures or Options Exchange, as applicable, at least one hour prior to the earlier of (1) the
actual closing time for the regular trading 

  
 4 

	 	 
session on such Relevant Stock Exchange or Related Futures or Options Exchange, as applicable, and (2) the submission deadline for orders to be entered into the Relevant Stock Exchange or
Related Futures or Options Exchange, as applicable, system for execution at the Close of Trading on that day. 

  

	 	(F)	 The Relevant Stock Exchange or any Related Futures or Options Exchange with respect to the Fund or any
Successor Fund fails to open for trading during its regular trading session. 

 For purposes of
determining whether a Market Disruption Event has occurred: 
  

	 	(1)	 “Close of Trading” means the Scheduled Closing Time of the Relevant Stock Exchange with
respect to the Fund or any Successor Fund; and 

  

	 	(2)	 the “Scheduled Closing Time” of the Relevant Stock Exchange or any Related Futures or Options
Exchange on any Trading Day for the Fund or any Successor Fund means the scheduled weekday closing time of such Relevant Stock Exchange or Related Futures or Options Exchange on such Trading Day, without regard to after hours or any other trading
outside the regular trading session hours. 

 Anti-dilution Adjustments Relating to the Fund; Alternate Calculation 

Anti-dilution Adjustments 

The Calculation Agent will adjust the Adjustment Factor with respect to the Fund as specified below if any of the events
specified below occurs with respect to the Fund and the effective date or ex-dividend date, as applicable, for such event is after the Pricing Date and on or prior to the Calculation Day. 

The adjustments specified below do not cover all events that could affect the Fund. The Calculation Agent may, in its sole
discretion, make additional adjustments to any terms of this Security upon the occurrence of other events that affect or could potentially affect the market price of, or shareholder rights in, the Fund, with a view to offsetting, to the extent
practical, any such change, and preserving the relative investment risks of this Security. In addition, the Calculation Agent may, in its sole discretion, make adjustments or a series of adjustments that differ from those described herein if the
Calculation Agent determines that such adjustments do not properly reflect the economic consequences of the events specified herein or would not preserve the relative investment risks of this Security. All determinations made by the Calculation
Agent in making any adjustments to the terms of this Security, including adjustments that are in addition to, or that differ from, those described herein, will be made in good faith and a commercially reasonable manner, with the aim of ensuring an
equitable result. In determining whether to make any adjustment to the terms of this Security, the Calculation Agent may consider any adjustment made by the Options Clearing Corporation or any other equity derivatives clearing organization on
options contracts on the Fund. 
 For any event described below, the Calculation Agent will not be required to adjust the
Adjustment Factor unless the adjustment would result in a change to the Adjustment Factor then 

  
 5 

 
in effect of at least 0.10%. The Adjustment Factor resulting from any adjustment will be rounded up or down, as appropriate, to the nearest one-hundred thousandth. 

 

	 	(A)	 Stock Splits and Reverse Stock Splits 

If a stock split or reverse stock split has occurred, then once such split has become effective, the Adjustment Factor will
be adjusted to equal the product of the prior Adjustment Factor and the number of securities which a holder of one share (or other applicable security) of the Fund before the effective date of such stock split or reverse stock split would have owned
or been entitled to receive immediately following the applicable effective date. 
  

	 	(B)	 Stock Dividends 

If a dividend or distribution of shares (or other applicable securities) to which this Security is linked has been made by
the Fund ratably to all holders of record of such shares (or other applicable security), then the Adjustment Factor will be adjusted on the ex-dividend date to equal the prior Adjustment Factor plus the product of the prior Adjustment Factor and the
number of shares (or other applicable security) of the Fund which a holder of one share (or other applicable security) of the Fund before the ex-dividend date would have owned or been entitled to receive immediately following that date; provided,
however, that no adjustment will be made for a distribution for which the number of securities of the Fund paid or distributed is based on a fixed cash equivalent value. 
  

	 	(C)	 Extraordinary Dividends 

If an Extraordinary Dividend (as defined below) has occurred, then the Adjustment Factor will be adjusted on the ex-dividend
date to equal the product of the prior Adjustment Factor and a fraction, the numerator of which is the Closing Price per share (or other applicable security) of the Fund on the Trading Day preceding the ex-dividend date, and the denominator of which
is the amount by which the Closing Price per share (or other applicable security) of the Fund on the Trading Day preceding the ex-dividend date exceeds the Extraordinary Dividend Amount (as defined below). 

For purposes of determining whether an Extraordinary Dividend has occurred: 

 

	 	(1)	 “Extraordinary Dividend” means any cash dividend or distribution (or portion thereof) that
the Calculation Agent determines, in its sole discretion, is extraordinary or special; and 

  

	 	(2)	 “Extraordinary Dividend Amount” with respect to an Extraordinary Dividend for the securities
of the Fund will equal the amount per share (or other applicable security) of the Fund of the applicable cash dividend or distribution that is attributable to the Extraordinary Dividend, as determined by the Calculation Agent in its sole discretion.

  
 6 

 A distribution on the securities of the Fund described below under the section
entitled “—Reorganization Events” below that also constitutes an Extraordinary Dividend will only cause an adjustment pursuant to that “—Reorganization Events” section. 

 

	 	(D)	 Other Distributions 

If the Fund declares or makes a distribution to all holders of the shares (or other applicable security) of the Fund of any
non-cash assets, excluding dividends or distributions described under the section entitled “—Stock Dividends” above, then the Calculation Agent may, in its sole discretion, make such adjustment (if any) to the Adjustment Factor as it
deems appropriate in the circumstances. If the Calculation Agent determines to make an adjustment pursuant to this paragraph, it will do so with a view to offsetting, to the extent practical, any change in the economic position of a holder of this
Security that results solely from the applicable event. 
  

	 	(E)	 Reorganization Events 

If the Fund, or any Successor Fund, is subject to a merger, combination, consolidation or statutory exchange of securities
with another exchange traded fund, and the Fund to which this Security is linked is not the surviving entity (a “Reorganization Event”), then, on or after the date of such event, the Calculation Agent shall, in its sole discretion,
make an adjustment to the Adjustment Factor or the method of determining the Redemption Amount or any other terms of this Security as the Calculation Agent determines appropriate to account for the economic effect on this Security of such event, and
determine the effective date of that adjustment. If the Calculation Agent determines that no adjustment that it could make will produce a commercially reasonable result, then the Calculation Agent may deem such event a Liquidation Event (as defined
below). 
 Liquidation Events 

If the Fund is de-listed, liquidated or otherwise terminated (a “Liquidation Event”), and a successor or
substitute exchange traded fund exists that the Calculation Agent determines, in its sole discretion, to be comparable to the Fund, then, upon the Calculation Agent’s notification of that determination to the Trustee and the Company, any
subsequent Fund Closing Price for the Fund will be determined by reference to the Fund Closing Price of such successor or substitute exchange traded fund (such exchange traded fund being referred to herein as a “Successor Fund”),
with such adjustments as the Calculation Agent determines are appropriate to account for the economic effect of such substitution on the holder of this Security. 

If the Fund undergoes a Liquidation Event prior to, and such Liquidation Event is continuing on, the date that any Fund
Closing Price of the Fund is to be determined and the Calculation Agent determines that no Successor Fund is available at such time, then the Calculation Agent will, in its discretion, calculate the Fund Closing Price for the Fund on such date by a
computation methodology that the Calculation Agent determines will as closely as 

  
 7 

 
reasonably possible replicate the Fund, provided that if the Calculation Agent determines in its discretion that it is not practicable to replicate the Fund (including but not limited to the
instance in which the sponsor of the index underlying the Fund discontinues publication of that index), then the Calculation Agent will calculate the Fund Closing Price for the Fund in accordance with the formula last used to calculate such Fund
Closing Price before such Liquidation Event, but using only those securities that were held by the Fund immediately prior to such Liquidation Event without any rebalancing or substitution of such securities following such Liquidation Event. 

If a Successor Fund is selected or the Calculation Agent calculates the Fund Closing Price as a substitute for the Fund, such
Successor Fund or Fund Closing Price will be used as a substitute for the Fund for all purposes, including for purposes of determining whether a Market Disruption Event exists. 

If any event is both a Reorganization Event and a Liquidation Event, such event will be treated as a Reorganization Event for
purposes of this Security unless the Calculation Agent makes the determination referenced in the last sentence of the section entitled “—Anti-dilution Adjustments—Reorganization Events” above. 

Alternate Calculation 

If at any time the method of calculating the Fund or a Successor Fund, or the Underlying Index, is changed in a material
respect, or if the Fund or a Successor Fund is in any other way modified so that the Fund does not, in the opinion of the Calculation Agent, fairly represent the price of the securities of the Fund or such Successor Fund had such changes or
modifications not been made, then the Calculation Agent may, at the close of business in New York City on the date that any Fund Closing Price is to be determined, make such calculations and adjustments as, in the good faith judgment of the
Calculation Agent, may be necessary in order to arrive at a Closing Price of an exchange traded fund comparable to the Fund or such Successor Fund, as the case may be, as if such changes or modifications had not been made, and calculate the Fund
Closing Price and the Redemption Amount with reference to such adjusted Closing Price of the Fund or such Successor Fund, as applicable. 

Calculation Agent 

The Calculation Agent will determine the Redemption Amount and the Ending Price. In addition, the Calculation Agent will
(i) determine if adjustments are required to the Fund Closing Price and/or the Adjustment Factor under the circumstances described in this Security, (ii) if the Fund undergoes a Liquidation Event, select a Successor Fund or, if no
Successor Fund is available, determine the Fund Closing Price of the Fund, and (iii) determine whether a Market Disruption Event or non-Trading Day has occurred. 

The Company covenants that, so long as this Security is Outstanding, there shall at all times be a Calculation Agent (which
shall be a broker-dealer, bank or other financial institution) with respect to this Security. 

  
 8 

 All determinations made by the Calculation Agent with respect to this Security
will be at the sole discretion of the Calculation Agent and, in the absence of manifest error, will be conclusive for all purposes and binding on the Company and the Holder of this Security. 

Tax Considerations 

The Company agrees, and by acceptance of a beneficial ownership interest in this Security each Holder of this Security will be
deemed to have agreed (in the absence of a statutory, regulatory, administrative or judicial ruling to the contrary), for United States federal income tax purposes to treat this Security as a prepaid derivative contract that is an “open
transaction.” 
 Redemption and Repayment 

This Security is not subject to redemption at the option of the Company or repayment at the option of the Holder hereof prior
to May 7, 2019. This Security is not entitled to any sinking fund. 
 Acceleration 

If an Event of Default, as defined in the Indenture, with respect to this Security shall occur and be continuing, the
Redemption Amount (calculated as set forth in the next sentence) of this Security may be declared due and payable in the manner and with the effect provided in the Indenture. The amount payable to the Holder hereof upon any acceleration permitted
under the Indenture will be equal to the Redemption Amount hereof calculated as provided herein as though the date of acceleration was the Calculation Day. 
  

 

Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions
shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication
hereon has been executed by the Trustee referred to on the reverse hereof by manual signature or its duly authorized agent under the Indenture referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose. 
 [The remainder of this page has been left intentionally blank] 

  
 9 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed
under its corporate seal. 
 DATED:
                     
  

					
	WELLS FARGO & COMPANY
		
	By:	 	 
		 	 
		 	Its:	 	 

 [SEAL] 
  

					
	Attest:	 	 
		 	 
		 	Its:	 	 

  

			
	 TRUSTEE’S CERTIFICATE OF

AUTHENTICATION
 This is one of the Securities of the

series designated therein described
 in the within-mentioned Indenture.

	
	 CITIBANK, N.A.,

      as Trustee

		
	By:	 	 
		 	Authorized Signature
	
	                    OR
	
	 WELLS FARGO BANK, N.A.,

  as Authenticating Agent for the Trustee

		
	By:	 	 
		 	Authorized Signature

  
 10 

 [Reverse of Note] 

WELLS FARGO & COMPANY 

MEDIUM-TERM NOTE, SERIES K 

Due Nine Months or More From Date of Issue 

Principal at Risk Securities Linked to the 

SPDR® S&P 500® ETF
Trust due May 7, 2019 
 This Security is one of a duly authorized issue of securities of the Company (herein
called the “Securities”), issued and to be issued in one or more series under an indenture dated as of July 21, 1999, as amended or supplemented from time to time (herein called the “Indenture”), between the
Company and Citibank, N.A., as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement
of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities, and of the terms upon which the Securities are, and are to be, authenticated and delivered. This
Security is one of the series of the Securities designated as Medium-Term Notes, Series K, of the Company, which series is limited to an aggregate principal amount or face amount, as applicable, of $25,000,000,000 or the equivalent thereof in one or
more foreign or composite currencies. The amount payable on the Securities of this series may be determined by reference to the performance of one or more equity-, commodity- or currency-based indices, exchange traded funds, securities, commodities,
currencies, statistical measures of economic or financial performance, or a basket comprised of two or more of the foregoing, or any other market measure or may bear interest at a fixed rate or a floating rate. The Securities of this series may
mature at different times, be redeemable at different times or not at all, be repayable at the option of the Holder at different times or not at all and be denominated in different currencies. 

Article Sixteen of the Indenture shall not apply to this Security. 

The Securities are issuable only in registered form without coupons and will be either
(a) book-entry securities represented by one or more Global Securities recorded in the book-entry system maintained by the Depositary or (b) certificated
securities issued to and registered in the names of, the beneficial owners or their nominees. 
 The Company agrees, to the
extent permitted by law, not to voluntarily claim the benefits of any laws concerning usurious rates of interest against a Holder of this Security. 

Modification and Waivers 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights
and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the
Securities at the 

  
 11 

 
time Outstanding of all series to be affected, acting together as a class. The Indenture also contains provisions permitting the Holders of a majority in principal amount of the Securities of all
series at the time Outstanding affected by certain provisions of the Indenture, acting together as a class, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with those provisions of the Indenture. Certain
past defaults under the Indenture and their consequences may be waived under the Indenture by the Holders of a majority in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such
series. Solely for the purpose of determining whether any consent, waiver, notice or other action or Act to be taken or given by the Holders of Securities pursuant to the Indenture has been given or taken by the Holders of Outstanding Securities in
the requisite aggregate principal amount, the principal amount of this Security will be deemed to be equal to the amount set forth on the face hereof as the “Face Amount” hereof. Any such consent or waiver by the Holder of this Security
shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or
waiver is made upon this Security. 
 Defeasance 

Section 403 and Article Fifteen of the Indenture and the provisions of clause (ii) of Section 401(1)(B) of the
Indenture, relating to defeasance at any time of (a) the entire indebtedness on this Security and (b) certain restrictive covenants and certain Events of Default, upon compliance by the Company with certain conditions set forth therein,
shall not apply to this Security. The remaining provisions of Section 401 of the Indenture shall apply to this Security. 
 Authorized
Denominations 
 This Security is issuable only in registered form without coupons in denominations of $1,000 or any
amount in excess thereof which is an integral multiple of $1,000. 
 Registration of Transfer 

Upon due presentment for registration of transfer of this Security at the office or agency of the Company in the City of
Minneapolis, Minnesota, a new Security or Securities of this series, with the same terms as this Security, in authorized denominations for an equal aggregate Face Amount will be issued to the transferee in exchange herefor, as provided in the
Indenture and subject to the limitations provided therein and to the limitations described below, without charge except for any tax or other governmental charge imposed in connection therewith. 

This Security is exchangeable for definitive Securities in registered form only if (x) the Depositary notifies the
Company that it is unwilling or unable to continue as Depositary for this Security or if at any time the Depositary ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended, and a successor depositary is not
appointed within 90 days after the Company receives such notice or becomes aware of such ineligibility, (y) the Company in its sole discretion determines that this Security shall be exchangeable for definitive Securities in registered form
and notifies the Trustee thereof or (z) an Event of Default with respect to the Securities represented hereby has occurred and is continuing. If this Security is exchangeable pursuant to the preceding sentence, it shall be exchangeable for
definitive Securities in registered 

  
 12 

 
form, having the same date of issuance, Stated Maturity Date and other terms and of authorized denominations aggregating a like amount. 

This Security may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the
Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor of the Depositary or a nominee of such successor. Except as provided above, owners of beneficial interests in this Global
Security will not be entitled to receive physical delivery of Securities in definitive form and will not be considered the Holders hereof for any purpose under the Indenture. 

Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary. 
 Obligation of the Company Absolute 

No reference herein to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation
of the Company, which is absolute and unconditional, to pay the Redemption Amount at the times, place and rate, and in the coin or currency, herein prescribed, except as otherwise provided in this Security. 

No Personal Recourse 

No recourse shall be had for the payment of the Redemption Amount, or for any claim based hereon, or otherwise in respect
hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, stockholder, officer or director, as such, past, present or future, of the Company or any successor corporation, whether by virtue of
any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issuance hereof, expressly waived and released.

 Defined Terms 

All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture
unless otherwise defined in this Security. 
 Governing Law 

This Security shall be governed by and construed in accordance with the law of the State of New York, without regard to
principles of conflicts of laws. 

  
 13 

 ABBREVIATIONS 

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they
were written out in full according to applicable laws or regulations: 
  

					
	 TEN COM
	 	  -- 
	 	 as tenants in common

			
	 TEN ENT
	 	  -- 
	 	 as tenants by the entireties

			
	 JT TEN
	 	  -- 
	 	 as joint tenants with right

of survivorship and not
 as
tenants in common

  

									
	 UNIF GIFT MIN ACT
	 	  -- 
	 	 	 	 Custodian
	 	 
		 		 	(Cust)	 		 	(Minor)

  

	
	Under Uniform Gifts to Minors Act
	
	   

	(State)

 Additional abbreviations may also be used though not in the above list. 

FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto 

 

	
	 Please Insert Social Security or
 Other
Identifying Number of Assignee

	
	   

  
  

 
  
  

 
 (PLEASE
PRINT OR TYPE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE)

  
 14 

 the within Security of WELLS FARGO & COMPANY and does hereby irrevocably constitute and
appoint
                                        
attorney to transfer the said Security on the books of the Company, with full power of substitution in the premises. 
 Dated:
                                 

 

	
	   

  

	
	   

 NOTICE: The signature to this assignment must correspond with the name as written upon the face of the
within instrument in every particular, without alteration or enlargement or any change whatever. 

  
 15bioa-ex101_112.htm

Exhibit 10.1

September 9th, 2016

 

BioAmber Inc.

1250 Rene-Levesque Blvd. West, Suite 4310

Montreal, Quebec, 

Canada H3B 4W8

 

Attention: President & CEO

 

Dear Mr. Jean-François Huc:

 

	
Re:  
	
Bridging Finance Inc. (in its capacity as lender, the “Lender”), demand non-revolving credit facility in favour of the Borrower (as defined below) 

 

The Lender is pleased to offer the credit facility (the “Facility”) described in this letter agreement (the “Agreement”) subject to the terms and conditions set forth herein including, without limitation, the satisfactory completion of due diligence. Unless otherwise indicated, all amounts are expressed in Canadian currency. All capitalized terms not otherwise defined in the body of this Agreement shall have the meanings ascribed hereto in Schedule “A”.

 

	
Borrower:
	
BioAmber Inc. (the “Borrower”), a corporation incorporated pursuant to the laws of Delaware

 

Lender:Bridging Finance Inc.

 

	
Guarantors:
	
BioAmber Canada Inc. and, if the BioAmber Lux Windup is not completed within 60 days of the date hereof, BioAmber International S.A.R.L (together, the “Guarantors”) 

 

	
Facility:
	
Non-revolving demand loan of up to $25,000,000.  Subject to the provisions hereof, the Lender may demand payment in writing at any time and this Facility shall become payable by the Lender immediately upon receipt of such demand.

 

	
Purpose:
	
To refinance certain amounts owed by the Borrower to Tennenbaum Capital Partners (“TCP”) and for general working capital and corporate purposes.

 

	
Term:
	
The earlier of the date of demand and September 30, 2017
	
 

 

Loan

	
Availability:
	
Subject to the terms and conditions of this Agreement, the amount available under the Facility may be drawn only in a single advance on the date of the initial advance under the Facility, at which time any undrawn amount under the Facility shall be permanently cancelled. 
	
 

 

Interest Rate

	
and Fees:
	
Interest: Interest shall accrue at an annual rate of Bank of Montreal Prime plus ten and eight tenths of one percent (10.8%) calculated on the daily outstanding balance of the Facility and compounded monthly, not in advance and with no deemed reinvestment of monthly payments. On the occurrence of an Event of Default, interest shall be calculated at an annual rate of twenty-one percent (21%) per annum calculated and compounded as aforesaid. Bank of Montreal Prime shall mean the floating annual rate of interest established from time to time by the Bank of Montreal as the base rate it will use to determine rates of interest on Canadian dollar loans to customers in Canada and 

 

 
1
 

 

		
designated as its Prime Rate.  

 

	

	
Work Fee:  A work fee of one and fifty hundredths of one percent (1.50%) of the size of the Facility, plus any applicable taxes due thereon, shall be due and payable by the Borrower to the Lender at the time of the first advance of the Facility and shall be deducted from the advance of the Facility.

 

Administration Fee: If the Borrower fails to pay any amounts on the day such amounts are due or if the Borrower fails to deliver the required reports set out herein, the Borrower shall pay to the Lender a late administration fee of $100.00 per day, plus any applicable taxes due thereon, until such date that such payment has been made or the Borrower has delivered such report, as the case may be. 

 

Expenses: The Borrower shall pay all fees and expenses (including, but not limited to, all due diligence, consultant, field examination and appraisal costs, all fees and expenses for outside legal counsel and other outside professional advisors and the time spent by the Lender and its representatives in retaking, holding, repairing, processing and preparing for disposition and disposing of the Security calculated at the Lender’s standard per diem rate in effect at such applicable time and established by the Lender  in its sole discretion for internal personnel of the Lender) reasonably incurred by the Lender in connection with the preparation, registration and ongoing administration of this Agreement and the Security and with the enforcement of the Lender’s rights and remedies under this Agreement or the Security, whether or not any amounts are advanced under this Agreement.  If the Lender has paid any expense for which the Lender is entitled to reimbursement from the Borrower and such expense has not been deducted from the advance of the Facility, such expense shall be payable by the Borrower upon demand therefor from the Lender.  All such fees and expenses and interest thereon shall be secured by the Security only if the funds under the Facility are advanced.  

	
Payments:
	
Without limiting the right of the Lender to at any time demand repayment according to the terms of this Agreement, and subject to and in addition to the requirement for repayment in full pursuant to this Agreement at the end of the Term, interest only at the aforesaid rate, calculated daily and compounded and payable monthly, not in advance on the outstanding amount of the Facility, shall be due and payable on the last Business Day of each and every month during the Term.    

 

	
Prepayment:
	
After April 1, 2017, the Facility can be repaid in full or partially at any time without any fee or penalty upon at least ninety (90) days prior written notice to the Lender (for clarity, the earliest date where such prepayment can occur without any fee or penalty is April 2, 2017, provided at least a ninety (90) days prior notice has been sent to the Lender).  After April 1, 2017, the Facility can also be repaid in full or partially at any time without any prior notice or with a prior notice of less than ninety (90) days, provided that in such event, or in the event of a termination of the Facility resulting from the occurrence of an Event of Default, the Borrower shall pay to the Lender an amount equal to the following formula:  

 

	

	
    I/365 x (90- N)  x M 

	

	
 

	

	
 

	

	
Where:

	
 
	

	
I = the annual interest rate on the Facility on the date that notice of termination, or demand, as the case may be, is made

	
 
	

	
N = the number of days between the date that notice of termination is provided, and the date of termination, provided that if such number is greater than ninety (90) days, it shall be equal to 90 for the purposes of this calculation, and if demand occurs during the occurrence of an 

 

 
2
 

 

	
 
		
Event of Default, N shall equal 0

	
 
	

	
M = the outstanding amount, including any interest and other fees owing, under this Agreement, on the date that notice of termination, or demand, as the case may be, is provided

 

	
Deposit: 
	
The Lender acknowledges that it has been paid a deposit of $80,000 towards its expenses by the Borrower and that any unused amount of such deposit will be credited against the Facility.

 

	
Renewal:
	
Subject to demand by the Lender or the occurrence and continuance of an Event of Default, the Borrower acknowledges that the principal amount of the Facility is payable upon maturity at the end of the Term and that the Lender is not obligated to grant any renewal or extension of the Term.

 

Application of 

	
Payments:
	
Notwithstanding anything else contained herein, all payments received by the Lender shall first be credited as repayment of interest and fees or other charges owing by the Borrower and then as repayment of the principal amount owing by the Borrower to the Lender hereunder. 

 

Conditions

	
Precedent:
	
The availability of the Facility is subject to and conditional upon the following conditions:

 

	
 
	
(i)
	
satisfactory completion of the Lender’s due diligence and continual due diligence, including the Lender’s review of the corporate structure of the Borrower and the Operating Companies and operations of the Borrower, the Operating Companies and their respective business and financial plans;

 

	
 
	
(ii)
	
receipt of a duly executed copy of this Agreement and the Security, in form and substance satisfactory to the Lender and its legal counsel, registered as required to perfect and maintain the security created thereby and such certificates, authorizations, resolutions and legal opinions as the Lender may reasonably require including an opinion from the Borrower’s and Guarantors’ counsel with respect to status and the due authorization, execution, delivery, validity and enforceability of this Agreement and the Security; 

 

	
 
	
(iii)
	
the discharge or subordination of any and all existing security against the Borrower, other than the security listed in Schedule B hereto, as may be required by the Lender;

 

	
 
	
(iv)
	
payment of all fees owing to the Lender hereunder;

 

	
 
	
(v)
	
delivery of such financial and other information or documents relating to the Borrower and the Operating Companies as the Lender may require;

 

	
 
	
(vi)
	
the Lender being satisfied that there has been no material deterioration in the financial condition of the Borrower or the Operating Companies;

 

	
 
	
(vii)
	
no event shall have occurred and be continuing and no circumstance shall exist which has not been waived, which constitutes a default in respect of any material commitment, agreement or any other instrument to which the Borrower or any Operating Company is a party or is otherwise bound, entitling any other party thereto to accelerate the maturity of amounts of principal owing thereunder or terminate any such material commitment, agreement or instrument which would have a material adverse effect upon the financial condition, property, 

 

 
3
 

 

	
 
		
assets, operation or business of the Borrower or any Operating Company; and

 

	
 
	
(viii)
	
no event that constitutes, or with notice or loss of time or both, would constitute an Event of Default shall have occurred.

 

	
Covenants:
	
The Borrower and each Guarantor jointly and severally covenants and agrees with the Lender, while this Agreement is in effect, to:

 

	
 
	
(i)
	
pay all sums of money when due hereunder or arising therefrom;

 

	
 
	
(ii)
	
provide the Lender with prompt written notice of any event which constitutes, or which, with notice, lapse of time, or both, would constitute an Event of Default, a breach of any covenant or other term or condition of this Agreement or of any other Credit Document;

 

	
 
	
(iii)
	
use the proceeds of the Facility for the purposes provided for herein;

 

	
 
	
(iv)
	
continue, and cause the Operating Companies to continue, to carry on business in the nature of or related to the business transacted by the Borrower and the Operating Companies prior to the date hereof in the name and for the account of the Borrower and the Operating Companies;

 

	
 
	
(v)
	
keep and maintain books of account and other accounting records in accordance with generally accepted accounting principles; 

 

	
 
	
(vi)
	
ensure all shares constituting Collateral are in the possession and control of the Lender; 

 

	
 
	
(vii)
	
cause all material properties and assets used or useful in the conduct of the business of the Borrower and each of the Operating Companies to be maintained and kept in good condition, repair and working order (ordinary wear and tear excepted) and supplied with all necessary equipment and cause to be made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in its reasonable judgment may be necessary so that the business carried on in connection therewith may be properly and advantageously conducted at all times;

 

	
 
	
(viii)
	
cause each of the Operating Companies to not sell, transfer, convey, lease or otherwise dispose of any of its material assets or fail to renew any material contracts; 

 

	
 
	
(ix)
	
not incorporate any subsidiary or otherwise permit any other entity to carry on any business currently conducted or anticipated to be conducted by the Borrower; 

 

	
 
	
(x)
	
not transfer any cash or other material assets to any person other than the Borrower or a Guarantor and cause each Operating Company that is not a Guarantor to transfer all of its cash distributions (after paying ordinary course expenses) to a Guarantor or the Borrower, subject to the rights of the existing lenders and shareholders of any such Operating Company;

 

	
 
	
(xi)
	
not, and cause each of the Operating Companies to not, sell, transfer, convey, lease or otherwise dispose of any of its properties or assets, other than in the ordinary course of its business;

 

	
 
	
(xii)
	
not, and cause each of the Operating Companies to not, sell, transfer, convey, 

 

 
4
 

 

	
 
		
encumber or otherwise dispose of any of its capital stock or permit any reorganization or change of control of the Borrower or any Operating Company; 

 

	
 
	
(xiii)
	
not purchase or redeem its shares or units or otherwise reduce the capital of the Borrower or any Operating Company;

 

	
 
	
(xiv)
	
not declare or pay any dividends, or distributions to unit holders, or repay any shareholders’ loans, interest thereon or share capital of the Borrower;

 

	
 
	
(xv)
	
not make loans or advances (excluding for greater certainty, salaries and bonuses (which shall not be funded from the sale of assets) payable in the ordinary course of business and in accordance with past practice) to shareholders, directors, officers or any other related or associated party;

 

	
 
	
(xvi)
	
permit the Lender and its representatives, at any time and from time to time, with such frequency as the Lender, in its sole discretion, may require, to visit and inspect the Borrower’s and each Operating Companies’ respective premises, properties and assets and to examine and obtain copies of the Borrower’s and each Operating Companies’ records or other information and discuss the Borrower’s and each Operating Companies’ affairs with the auditors, counsel and other professional advisors of the Borrower and each Operating Company all at the reasonable expense of the Borrower;

 

	
 
	
(xvii)
	
keep the Lender informed on any changes to the strategy of the Borrower or any Operating Company;

 

	
 
	
(xviii)
	
forthwith notify the Lender of the particulars of any action, suit or proceeding, pending or to the Borrower's knowledge threatened against the Borrower or any Operating Company;

 

	
 
	
(xix)
	
in a form and manner prescribed by the Lender (which may include by fax and/or e-mail), deliver to the Lender any financial information, certified by a senior officer of the Borrower, with respect to the Borrower and any Operating Company as and when reasonably requested by the Lender; 

 

	
 
	
(xx)
	
file, and cause each of the Operating Companies to file, all tax returns which the Borrower and each Operating Company must file from time to time, to pay or make provision for payment of all taxes (including interest and penalties) and other potential preferred claims which are or will become due and payable and to provide adequate reserves for the payment of any tax, the payment of which is being contested;

 

	
 
	
(xxi)
	
not, and cause each of the Operating Companies to not, make any capital expenditures other than those that are in a budget approved by the Lender, in its sole discretion;

 

	
 
	
(xxii)
	
not, and cause each of the Operating Companies to not, grant, create, assume or suffer to exist any mortgage, charge, Lien, pledge, security interest, including a purchase money security interest, or other encumbrance affecting any of the properties, assets or other rights of the Borrower or any Operating Company except for Encumbrances approved by the Lender (collectively, “Permitted Encumbrances”) which for certainty includes those Encumbrances listed on Schedule B hereto;

 

	
 
	
(xxiii)
	
shall keep its business and the Collateral insured for risks and in amounts standard for companies in the Borrower’s industry and location and as the 

 

 
5
 

 

	
 
		
Lender may reasonably request.  Insurance policies shall be in a form, with companies, and in amounts that are reasonably satisfactory to the Lender.  All property policies shall have a lender’s loss payable endorsement showing the Lender as lender loss payee and waive subrogation against the Lender and shall provide that the insurer must give the Lender at least twenty (20) days’ notice before canceling, amending, or declining to renew its policy.  All liability policies shall show, or have endorsements showing, the Lender as an additional insured with a waiver of subrogation rights, and all such policies (or the loss payable and additional insured endorsements) shall provide that the insurer shall give the Lender at least twenty (20) days’ notice before canceling, amending, or declining to renew its policy.  At the Lender’s request, Borrower shall deliver certified copies of policies and evidence of all premium payments.  Proceeds payable under any policy shall, at the Lender’s option, be payable to the Lender on account of the Obligations;

 

	
 
	
(xxiv)
	
not cancel any debt owing to it;

 

	
 
	
(xxv)
	
not, and cause each of the Operating Companies to not, create, incur, assume or permit to exist any indebtedness, except indebtedness existing on the date of this Agreement and indebtedness consented to in writing by the Lender, provided that “indebtedness” includes, without limitation, (i) debt for borrowed money or for the deferred purchase price of property or services (including reimbursement and all other obligations with respect to surety bonds, letters of credit and bankers’ acceptances, whether or not matured); (ii) all indebtedness created or arising under any conditional sale or other title retention agreements; and, (iii) capital lease obligations;

 

	
 
	
(xxvi)
	
not grant a loan or make an investment in or provide financial assistance to a third party (including, any Operating Company) by way of a suretyship, guarantee or otherwise except for financial assistance existing as of the date of this Agreement and delivered in connection with indebtedness secured by Permitted Encumbrances;

 

	
 
	
(xxvii)
	
not change its name, merge, amalgamate or otherwise enter into any other form of business combination with any other entity without the prior written consent of the Lender; 

 

	
 
	
(xxviii)
	
the Borrower will provide 30 days prior written notice to the Lender of any change in the Borrower’s or any Operating Company’s places of business;

 

	
 
	
(xxix)
	
keep the Borrower’s and each Operating Companies’ assets fully insured against such perils and in such manner as would be customarily insured by companies carrying on a similar business or owning similar assets;

 

	
 
	
(xxx)
	
comply, and cause each of the Operating Companies to comply, with all laws and regulations, including consumer lending regulations; to advise the Lender promptly of any action, requests or violation notices received from any government or regulatory authority concerning the Borrower’s and/or the Operating Companies’ operations; and to indemnify and hold the Lender harmless from all liability of loss as a result of any non-compliance with such laws and regulations;

 

	
 
	
(xxxi)
	
promptly provide the Lender with notice if any license or agreement of the Borrower or any Operating Company required by the Borrower or such Operating Company to conduct its business, as then conducted, is terminated, materially restricted or is threatened to be terminated or material restricted; 

 

 
6
 

 

 

	
 
	
(xxxii)
	
comply, and cause each Operating Company to comply, with all public reporting and disclosure requirements and all requirements of any securities laws applicable to the Borrower and any Operating Company;

 

	
 
	
(xxxiii)
	
cause BioAmber International S.A.R.L. to be wound up within 60 days of the date hereof and cause all assets of BioAmber International S.A.R.L. to be distributed to the Borrower (the “BioAmber Lux Windup”).  Should the BioAmber Lux Windup not be completed within 60 days of the date hereof, the Borrower and the Lender shall cause BioAmber International S.A.R.L. to execute all documents requested by the Lender to cause BioAmber International S.A.R.L. to become a Guarantor and to provide all Security that the Lender may request;

 

	
 
	
(xxxiv)
	
within 90 days of the date hereof, enter into an intercreditor agreement, on terms satisfactory to the Lender, in its sole discretion, with each person currently having security over the assets of the Borrower and/or the Operating Companies; 

 

	
 
	
(xxxv)
	
the Borrower shall use its best efforts to, within 90 days of the date hereof, cause BioAmber Sarnia Inc. to become a “Guarantor” for purposes of this Facility and to provide to the Lender with security, in form satisfactory to the Lender, on all of the property and assets of BioAmber Sarnia Inc., which security shall be for amounts and rank in the following priorities with all other holders of security in BioAmber Sarnia Inc.:

 

	
 
	
(i)
	
First rank: Comerica Bank, Export Development Canada and Farm Credit Canada for an amount of $16,923,077;

 

	
 
	
(ii)
	
Second rank: the Lender, for an amount of $15 million;

 

	
 
	
(iii)
	
Third rank: Business Development Bank of Canada for an amount of $10 million;

 

	
 
	
(iv)
	
Fourth rank: the Lender, for an amount of $10 million; and

 

	
 
	
(v)
	
Fifth rank: the Ontario Government (Ministry of Economic Development, Employment and Infrastructure) for an amount of $15 million; and

 

	
 
	
(xxxvi)
	
promptly, and in any event within two Business Days, use all proceeds received by the Borrower on account of (i) the exercise of any of the Borrower’s outstanding warrants issued in connection with its initial public offering completed in May 2013, and (ii) the issuance of shares in connection with any financing, to repay all or a portion of the then outstanding Facility.

 

Security and other

	
Requirements:
	
Borrower hereby grants Lender, to secure the payment and performance in full of all of its Obligations, a continuing security interest in, and pledges to the Lender, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof (the “General Security Interest”). In addition to the foregoing, as general and continuing security for the performance by the Borrower and each of the Guarantors of all of its Obligations, present and future, to the Lender, including, without limitation, the repayment of advances granted hereunder and the payment of interest, fees and any other amounts provided for hereunder and under the security documents, the Borrower and the Guarantors each undertake to grant to the Lender and to maintain at all times the following security in form satisfactory to the Lender (together with the General 

 

 
7
 

 

		
Security Interest, the “Security”), in accordance with the forms in use by the Lender or as prepared by its solicitors:

 

	
 
	
(i)
	
a pledge agreement, on the Lender’s form, signed by the Borrower constituting a first ranking security interest in all of the Borrower’s interest in the Operating Companies subject only to Statutory Encumbrances and other Permitted Encumbrances, and excluding the shares owned in BioAmber Sarnia Inc.;

 

	
 
	
(ii)
	
an intellectual property security agreement, on the Lender’s form, providing security on all of the Borrower’s and the Guarantors intellectual property, subject to the exclusions described in Schedule C;

 

	
 
	
(iii)
	
an assignment of adequate all risk, business interruption, commercial general liability and property insurance (including the equipment of the Borrower in an amount not less than its appraised value); 

 

	
 
	
(iv)
	
a movable hypothec affecting the universality of assets of the Borrower and the Guarantor;

 

	
 
	
(v)
	
postponement and assignment of all claims from the directors and shareholders of the Borrower and each Guarantor; and

 

	
 
	
(vi)
	
such other security as may be reasonably required by the Lender. 

 

 

Should the BioAmber Lux Windup not be completed to the satisfaction of the Lender, in its sole discretion, prior to the date that is 60 days following the date hereof, BioAmber Lux shall become a Guarantor for purposes of this Agreement and shall provide all security requested of it by the Lender, including any of the Security listed above that the Lender determines to be appropriate, in its sole discretion.

 

	

	
The Borrower shall execute any further instruments and take further action as the Lender reasonably requests to perfect or continue Lender’s Lien in the Collateral or to effect the purposes of this Agreement.

 

	

	
Borrower represents, warrants, and covenants that the security interest granted herein is and shall at all times continue to be a first priority perfected security interest in the Collateral (subject only to the Permitted Liens identified as such that may have superior priority to Lender’s lien under this Agreement).  If Borrower shall acquire a commercial tort claim in an amount greater than Fifty Thousand Dollars ($50,000), Borrower shall promptly notify Lender in writing signed by Borrower of the general details thereof and grant to Lender in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to the Lender.  If this Agreement is terminated, the Lender’s lien on the Collateral shall continue until the Obligations of the Borrower hereunder are satisfied in full, and at such time, Lender shall, at Borrower’s sole cost and expense, terminate its security interest in the Collateral and all rights therein shall revert to the Borrower and the Lender shall, at the Borrower’s sole cost and expense, execute such documentation and take such further action as may be reasonably necessary to make effective the termination contemplated by this paragraph. If at any time after such termination or Lender’s release of its security interest granted herein any Collateral or other property Lender receives in satisfaction of the Obligations of the Borrower hereunder is recovered, disgorged, set aside or otherwise avoided, or is subject to recovery, disgorgement, being set aside or avoided (whether through a formal court proceeding or otherwise) by or to Borrower, a bankruptcy trustee, a receiver or similar representative, then this Agreement shall be deemed revived, reinstated and in full force 

 

 
8
 

 

		
and effect as if the original disposition was never made to the Lender, and the Lender’s security interest and all other rights in the Collateral shall be deemed in full force and effect until the full and final repayment of all Obligations of the Borrower hereunder.

 

	

	
Borrower hereby authorizes Lender to file financing statements, without notice to Borrower, with all appropriate jurisdictions to perfect or protect the Lender’s interest or rights hereunder. Such financing statements may indicate the Collateral as “all assets of the Debtor” or words of similar effect, or as being of an equal or lesser scope, or with greater detail all in the Lender’s discretion. 

 

Events

	
of Default:
	
Without limiting any other rights of the Lender under this Agreement, including the right of the Lender to demand repayment at any time irrespective of the occurrence or continuance of an Event of Default, if any one or more of the following events (an “Event of Default”) has occurred and is continuing:

 

	
 
	
(i)
	
the Borrower fails to pay when due any principal, interest, fees or other amounts due under this Agreement or under any of the Security; 

 

	
 
	
(ii)
	
the Borrower or any Guarantor breaches any provision of this Agreement or any of the Security or other agreement with the Lender, and such breach has not been cured ten (10) days following the receipt by the Borrower or a Guarantor of a notice to this effect;

 

	
 
	
(iii)
	
the Borrower or any Operating Company is in default under the terms of any other contracts, agreements or otherwise with any other creditor;

 

	
 
	
(iv)
	
any representation or warranty made or deemed to have been made in this Agreement or any other Credit Document, or in any written statement pursuant hereto or thereto, including any information certificate delivered in association with the entering into this Agreement, or in any report, financial statement or certificate made or delivered to the Lender by the Borrower, shall be untrue or incorrect in any material respect as of the date when made or deemed made, regardless of whether such breach involves a representation or warranty with respect to a party that has not signed this Agreement;

 

	
 
	
(v)
	
the Borrower or any Operating Company ceases or threatens to cease to carry on business in the ordinary course;

 

	
 
	
(vi)
	
any default or failure by the Borrower or any Operating Company to make any payment of wages or other monetary remuneration payable by the Borrower or any Operating Company to their respective employees under the terms of any contract of employment, oral or written, express or implied; 

 

	
 
	
(vii)
	
any default or failure by the Borrower to keep current all amounts owing to parties other than the Lender who, in the Lender’s sole opinion, have or could have a security interest, trust or deemed trust in the property, assets or undertaking of the Borrower or any Guarantor which, in the Lender’s sole opinion could rank in priority to the security held by the Lender upon the property, assets and undertaking of the Borrower or any Guarantor;

 

	
 
	
(viii)
	
if, in the reasonable opinion of the Lender, there is a Material Adverse Change in the financial condition, ownership or operation of the Borrower or any Operating Company; 

 

	
 
	
(ix)
	
the Borrower or any Operating Company is unable to pay its debts as such debts 

 

 
9
 

 

	
 
		
become due, or is adjudged or declared to be or admit to being bankrupt or insolvent;

 

	
 
	
(x)
	
any judgment or award is made against the Borrower or any Operating Company, in respect of which (i) in the opinion of the Lender, acting reasonably, is likely to cause a Material Adverse Effect with respect to the Borrower or any Operating Company, (ii) there is not an appeal or proceeding for review being diligently pursued in good faith or (iii) adequate provision has not been made on the books of the Borrower or any Operating Company, as applicable; or

 

	
 
	
(xi)
	
any notice of intention is filed or any voluntary or involuntary case or proceeding filed or commenced for:

 

	
 
	
(a)
	
the bankruptcy, liquidation, winding-up, dissolution or suspension of general operations of the Borrower or any Operating Company, or the approval of a plan or a proposal for liquidation by any of the shareholders of the Borrower or any Operating Company;

 

	
 
	
(b)
	
the composition, rescheduling, reorganization, arrangement or readjustment of, or other relief from, or stay of proceedings to enforce, some or all of the debts of the Borrower or any Operating Company;

 

	
 
	
(c)
	
the appointment of a trustee, receiver, receiver and manager, liquidator, administrator, custodian or other official for, all or any significant part of the assets of the Borrower or any Operating Company; 

 

	
 
	
(d)
	
the possession, foreclosure, retention, sale or other disposition of, or other proceedings to enforce security over, all or any significant part of the assets of the Borrower or any Operating Company; or

 

	
 
	
(e)
	
any secured creditor, encumbrancer or lienor, or any trustee, receiver, receiver and manager, agent, bailiff or other similar official appointed by or acting for any secured creditor, encumbrancer or lienor, takes possession of or forecloses or retains, or sells or otherwise disposes of, or otherwise proceeds to enforce security over all or any significant part of the assets of the Borrower or any Operating Company or gives notice of its intention to do any of the foregoing;

 

then, in such event, the Lender may, by written notice to the Borrower declare all monies outstanding under the Facility to be immediately due and payable.  Upon receipt of such written notice, the Borrower shall immediately pay to the Lender all monies outstanding under the Facility and all other Obligations of the Borrower to the Lender in connection with the Facility under this Agreement.  The Lender may enforce its rights to realize upon its security and retain an amount sufficient to secure the Lender for the Borrower’s Obligations to the Lender.  On the occurrence of an Event of Default, the Lender may notify any debtor owing the Borrower money of the Lender’s security interest in such funds and verify the amount of such account. The Borrower hereby confirms that it has no knowledge of any actual or imminent Insolvency Proceeding of any of its debtors. 

 

Nothing contained in this section shall limit any right of the Lender under this Agreement to demand payment of the Facility at any time, provided that, notwithstanding any other provisions of this Agreement, if the Lender requires the payment of the Facility in the absence of the occurrence of an Event of Default, the Borrower shall have a grace period of 15 days in order to put in place a new financing as necessary in order to repay the Facility.

 

 
10
 

 

 

The Borrower hereby irrevocably appoints the Lender as its lawful attorney-in-fact, exercisable upon the occurrence and during the continuance of an Event of Default, to:  (a) endorse the Borrower’s name on any checks or other forms of payment or security; (b) sign the Borrower’s name on any invoice or bill of lading for any account or drafts against any debtor of the Borrower; (c) settle and adjust disputes and claims about the accounts directly with any debtor of the Borrower, for amounts and on terms Lender determines reasonable; (d) make, settle, and adjust all claims under the Borrower’s insurance policies; (e) pay, contest or settle any Lien, charge, encumbrance, security interest, and adverse claim in or to the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; and (f) make any disposition of the Collateral into the name of the Lender or a third party as the Uniform Commercial Code permits.  Borrower hereby appoints the Lender as its lawful attorney-in-fact to sign Borrower’s name on any documents necessary to perfect or continue the perfection of the Lender’s security interest in the Collateral regardless of whether an Event of Default has occurred until all Obligations (other than inchoate indemnity obligations) have been satisfied in full.  The Lender’s foregoing appointment as the Borrower’s attorney in fact, and all of Lender’s rights and powers, coupled with an interest, are irrevocable until all Obligations (other than inchoate indemnity obligations) have been fully repaid.

 

Evidence of

	
Indebtedness:
	
The Lender shall maintain records evidencing the Facility. The Lender shall record the principal amount of the Facility, the payment of principal and interest on account of the Facility, and all other amounts becoming due to the Lender under this Agreement.

 

	
 
	

	
The Lender's accounts and records constitute, in the absence of manifest error, conclusive evidence of the indebtedness of the Borrower to the Lender pursuant to this Agreement.

 

Representations

	
and Warranties: 
	
The Borrower and each Guarantor jointly and severally represents and warrants to the Lender that:

 

	
 
	
(i)
	
the Borrower and each of the Operating Companies has been incorporated under the laws of its jurisdiction of incorporation and has not been terminated;

 

	
 
	
(ii)
	
In connection with this Agreement, the Borrower has delivered to the Lender a completed certificate signed by the Borrower, entitled “Perfection Certificate”.  The Borrower represents and warrants to the Lender that (i) the Borrower and each Operating Company’s exact legal name and address is as indicated in section (a) of the Perfection Certificate; (ii) the Borrower and each Operating Company is an organization of the type and is organized in the jurisdiction set forth in section (b) of the Perfection Certificate; (iii) section (c) of the Perfection Certificate accurately sets forth the Borrower and each Operating Company’s organizational identification number or accurately states that there is none; (iv) section (d) of the Perfection Certificate accurately sets forth the names (formal and informal), jurisdiction of formation, organizational structure or type, and organizational number assigned by its jurisdiction that Borrower and each Subsidiary used for the past five (5) years; and (v) all other information set forth on the Perfection Certificate is accurate and complete;

 

	
 
	
(iii)
	
the full name of the Borrower is “BioAmber Inc.”, it does not have a French version of such name and it carries on business under the name and style “BioAmber Inc.”;

 

	
 
	
(iv)
	
the Borrower and each Operating Company are duly registered and licensed to 

 

 
11
 

 

	
 
		
carry on business in the jurisdictions in which they carry on business or own property where so required by the laws of that jurisdiction and they are not otherwise precluded from carrying on business or owning property in such jurisdictions by any other commitment, agreement or document;

 

	
 
	
(v)
	
the Borrower and each Operating Company has full corporate power and authority to carry on its business as now carried on by it;

 

	
 
	
(vi)
	
the Borrower is the sole, direct or indirect, beneficial shareholder of each Operating Company (other than BioAmber Sarnia Inc. in which it owns 60% and Amberworks LLC in which it owns 50%) and has no other subsidiaries as of the date hereof and there are no outstanding shares, options or agreements for the purchase of any of the shares or membership interests of these such entities, except as set forth in the joint venture agreement of BioAmber Sarnia Inc. governing the relationship between the Borrower and Mitsui & Co., Ltd.;

 

	
 
	
(vii)
	
the information with respect to the assets, liabilities and financial performance of the Borrower, as set out in the annual and interim financial statements and management discussion and analysis set out in the Borrower’s Public Record disclosure posted on EDGAR, are materially correct as of the dates thereof;

 

	
 
	
(viii)
	
the Public Record, information contained on the Borrower’s website, and all financial, marketing, sales and operational information provided to the Lender do not contain any misrepresentations (as such term is defined in the Applicable Laws);

 

	
 
	
(ix)
	
the Borrower has complied and will fully comply with the requirements of all applicable corporate and securities laws and administrative policies and directions, including, without limitation, the Applicable Laws in relation to the issue and trading (where such trading was undertaken by the Borrower) of its securities;

 

	
 
	
(x)
	
the Borrower and the Operating Companies are in compliance with all applicable laws, regulations and statutes in the jurisdictions in which they carry on business and which may materially affect the Borrower and the Operating Companies, have not received a notice of non-compliance, nor knows of, nor have reasonable grounds to know of, any facts that could give rise to a notice of non-compliance with any such laws, regulations and statutes, and the Borrower and the Operating Companies are not aware of any pending change or contemplated change to any applicable law or regulation or governmental position that would materially affect the business of the Borrower, the Operating Companies or the business or legal environment under which they operate;

 

	
 
	
(xi)
	
the Borrower and the Operating Companies have all material licences, permits, approvals, consents, certificates, registrations and other authorizations (collectively the “Permits”) under all applicable laws and regulations necessary for the operation of the businesses currently carried on, or proposed to be carried on, by the Borrower and the Operating Companies and each Permit is valid, subsisting and in good standing and the Borrower and the Operating Companies are not in default or breach of any Permit, and to the best of the knowledge of the Borrower, no material proceeding is pending or threatened to revoke or limit any Permit;

 

	
 
	
(xii)
	
the Borrower is a “reporting issuer” in the United States and has its shares posted and listed for trading on the New York Stock Exchange (“NYSE”) and is not in default of any of the requirements of the Applicable Laws or any of the 

 

 
12
 

 

	
 
		
administrative policies or notices of the Regulatory Authorities, including the NYSE;

 

	
 
	
(xiii)
	
no order ceasing, halting or suspending trading in securities of the Borrower nor prohibiting the sale of such securities has been issued to and is outstanding against the Borrower or its directors, officers or promoters or against any other companies that have common directors, officers or promoters and, to the best of the Borrower’s knowledge, no investigations or proceedings for such purposes are pending or threatened; 

 

	
 
	
(xiv)
	
the Borrower has and will have filed as of the time of the initial advance hereunder all documents that are required to be filed under the continuous disclosure provisions of the Applicable Securities Laws, including annual and interim financial information and annual reports, press releases disclosing material changes and Material Change reports;

 

	
 
	
(xv)
	
the execution, delivery and performance by the Borrower of this Agreement and all documents delivered in connection with this Agreement have been duly authorized by all necessary actions and do not violate the constating documents or any Applicable Laws or agreements to which the Borrower or any Guarantor is subject or by which it is bound;

 

	
 
	
(xvi)
	
the Borrower’s and the Operating Companies’ financial statements most recently provided to the Lender fairly present their financial positions as of the date thereof and its results of operations and cash flows for the fiscal period covered thereby, and since the date of such financial statements, there has occurred no Material Adverse Change in the Borrower’s and each Operating Companies’ business or financial condition;

 

	
 
	
(xvii)
	
there is no claim, action, prosecution or other proceeding of any kind pending or threatened against the Borrower or any Operating Company or any of their respective assets or properties (including any of its intellectual property) before any court or administrative agency which relates to any non-compliance with any law which, if adversely determined, might have a material adverse effect upon its financial condition or operations or its ability to perform its Obligations under this Agreement or any of the Security, and there are no circumstances of which the Borrower is aware which might give rise to any such proceeding;

 

	
 
	
(xviii)
	
there is no litigation or governmental proceeding pending or, to the best of its knowledge, threatened against the Borrower or any Operating Company which, if adversely determined, would materially adversely affect the financial condition of the Borrower or such Operating Company;

 

	
 
	
(xix)
	
neither the Borrower nor any Operating Company is a party to any agreement or instrument, or subject to any corporate restriction or any judgment, order, writ, injunction, decree, award, rule or regulation, which materially adversely affects or, to the best of its knowledge, in the future is likely to materially and adversely affect, its ability to enter this Agreement or any other Credit Document or to perform its Obligations;

 

	
 
	
(xx)
	
neither the Borrower nor any Operating Company has any contingent liabilities which are not disclosed on or referred to in the financial statements most recently delivered to the Lender which would have a Material Adverse Effect on its business or prospects;

 

	
 
	
(xxi)
	
there are no outstanding rent payments owing by the Borrower or any Operating 

 

 
13
 

 

	
 
		
Company in respect of any leased real property;

 

	
 
	
(xxii)
	
the Borrower and the Operating Companies have good and marketable title to all of their properties and assets, free and clear of any Encumbrances, other than Statutory Encumbrances, Permitted Encumbrances or as may otherwise be provided for herein, and except, as it relates to BioAmber Sarnia Inc., with respect to all securities pledged to its existing lenders;

 

	
 
	
(xxiii)
	
Section (f) of the Perfection Certificate lists all Intellectual Property of Borrower and the Operating Companies. Borrower is the sole owner of the Intellectual Property which it owns or purports to own except for (i) non-exclusive licenses granted to its customers in the ordinary course of business, (ii) over-the-counter software and other non-customized mass market licenses that are commercially available to the public, and (iii) material Intellectual Property licensed to the Borrower and noted on the Perfection Certificate.  Except as specifically noted in the Perfection Certificate, the Borrower has the full right and authority to dispose of its Intellectual Property, and each of the Operating Companies has the full right and authority to dispose of its Intellectual Property;

 

	
 
	
(xxiv)
	
no event has occurred which constitutes, or which, with  notice, lapse of time, or both, would constitute, an Event of Default, a breach of any covenant or other term or condition of this Agreement or any of the Security given in connection therewith; and

 

	
 
	
(xxv)
	
each of the Borrower and the Operating Companies has filed all tax returns which were required to be filed by them, if any, paid or made provision for payment of all taxes (including interest and penalties) which are due and payable, if any and provided adequate reserves for payment of any tax, the payment of which is being contested, if any.

 

 

	
Tax Indemnity:
	
Any and all payments made by Borrower under this Agreement or any Credit Documents shall be made free and clear of and without deduction for any and all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed by any governmental authority (including any interest, additions to tax or penalties applicable thereto) other than any taxes imposed on or measured by Lender’s overall net income and franchise taxes imposed on it (in lieu of net income taxes), by a jurisdiction (or any political subdivision thereof) as a result of Lender being organized or resident, conducting business (other than a business deemed to arise from Lender having executed, delivered or performed its obligations or received a payment under, or enforced, or otherwise with respect to, this Agreement or any Credit Documents) or having its principal office in such jurisdiction (“Indemnified Taxes”).  If any Indemnified Taxes shall be required by law to be withheld or deducted from or in respect of any sum payable under this Agreement or any Credit Documents to Lender (w) an additional amount shall be payable as may be necessary so that, after making all required withholdings or deductions (including withholdings or deductions applicable to additional sums payable under this Section) Lender receives an amount equal to the sum it would have received had no such withholdings or deductions been made, (x) Borrower shall make such withholdings or deductions, (y) Borrower shall pay the full amount withheld or deducted to the relevant taxing authority or other authority in accordance with applicable law and (z) Borrower shall deliver to Lender evidence of such payment.  Borrower’s obligation under this paragraph shall survive the termination of this Agreement.

	

	
 

	
Books and Records:
	
The Borrower agrees, upon request and 24 hours prior written notice, to promptly provide the Lender with unfettered access to the books and records of the Borrower and the 

 

 
14
 

 

		
Operating Companies.

 

	
Confidentiality: 
	
Each party agrees to keep all of the information and terms related to this Agreement confidential.  In particular, the existence of this Agreement or the discussions surrounding this Agreement, and any confidential information exchanged in connection with this Agreement cannot be used by the receiving party (except in connection with the administration of the Facility) or disclosed to any party, including other creditors, without the other party’s prior written consent.  Notwithstanding the preceding, as a result of Borrower’s status as a publicly traded company listed on the New York Stock Exchange, Borrower has the obligation to issue a press release announcing the execution of this Agreement, and publicly file a Form 8-K and this Agreement with the United States of America Securities and Exchange Commission.  The date and the content of any such disclosure shall be discussed in good faith and agreed to by both parties, acting reasonably, taken into consideration the public disclosure obligations applicable to the Borrower..

 

	
General: 
	
Credit: The Borrower authorizes the Lender, hereinafter, to obtain such factual and investigative information regarding the Borrower, from others as permitted by law, to furnish other consumer credit grantors and credit bureaus such information.  The Lender, after completing credit investigations, which it will make from time to time concerning the Borrower must in its absolute discretion be satisfied with all information obtained, prior to any advance being made under the Facility. 

 

	
 
	

	
The Borrower further authorizes any financial institution, creditor, tax authority, employer or any other person, including any public entity, holding information concerning the Borrower, or its assets, including any financial information or information with respect to any undertaking or suretyship given by the Borrower, to supply such information to the Lender in order to verify the accuracy of all information furnished or to be furnished from time to time to the Lender and to ensure the solvency of the Borrower at all times.

 

	
 
	

	
Non-Merger: The provisions of this Agreement shall not merge with any of the Security, but shall continue in full force and effect for the benefit of the parties hereto. In the event of an inconsistency between this Agreement and any of the Security and security documentation, including the Security, the provisions of this Agreement shall prevail.

 

	
 
	

	
Further Assurances and Documentation:  The Borrower shall do all things and execute all documents deemed necessary or appropriate by the Lender for the purposes of giving full force and effect to the terms, conditions, undertakings hereof and the Security granted or to be granted hereunder.

 

	
 
	

	
Severability: If any provision of this Agreement is or becomes prohibited or unenforceable in any jurisdiction, such prohibition or unenforceability shall not invalidate or render unenforceable the provision concerned in any other jurisdiction nor shall it invalidate, affect or impair any of the remaining provisions of this Agreement.

 

	
 
	

	
Marketing: The Borrower and the Lender shall be permitted to use the name of the Borrower and the amount of the Facility for advertising purposes.

 

	
 
	

	
Governing Law: This Agreement and all agreements arising hereinafter shall be deemed to have been made and accepted in the City of Toronto, Ontario and construed in accordance with and be governed by the laws of the Province of Ontario and of Canada applicable therein; provided, however, that to the extent any provisions of this Agreement relate to Collateral in the United States, including the grant of any security interest in such Collateral, or any proceedings relating to such Collateral are instituted, such provisions and proceedings shall be interpreted in accordance with and exclusively 

 

 
15
 

 

	
 
		
governed by the laws of the state of Delaware.

 

	
 
	

	
Counterparts: This Agreement, the Security and all agreements arising hereinafter may be executed in any number of separate counterparts by any one or more of the parties thereto, and all of said counterparts taken together shall constitute one and the same instrument.  Delivery of an executed counterpart of this Agreement by telecopier, PDF or by other electronic means shall be as effective as delivery of a manually executed counterpart.

 

	
 
	

	
Assignment: This Agreement when accepted and any commitment to advance, if issued, and the Security in furtherance thereof may be assigned by the Lender.  The Borrower and each Guarantor may not assign or transfer all or any part of its rights or obligations under this Agreement, any such transfer or assignment being null and void insofar as the Lender are concerned and rendering any balance then outstanding under the Facility immediately due and payable at the option of the Lender.

 

	
 
	

	
Joint and Several:  Where more than one person is liable as the Borrower for any obligation under this Agreement, then the liability of each such person for such obligation is joint and several with each other such person. 

 

	
 
	

	
Time: Time shall be of the essence in all provisions of this Agreement. 

 

	
 
	

	
Whole Agreement, Amendments and Waiver: This Agreement, the Security and any other written agreement delivered pursuant to or referred to in this Agreement constitute the whole and entire agreement between the parties in respect of the Facility. There are no verbal agreements, undertakings or representations in connection with the Facility. No amendment or waiver of any provision of this Agreement will be effective unless it is in writing signed by the Borrower and the Lender. No failure or delay on the part of the Lender in exercising any right or power hereunder or under any of the Security shall operate as a waiver thereon.  No course of conduct by the Lender will give rise to any reasonable expectation which is in any way inconsistent with the terms and conditions of this Agreement and the Security or the Lender’s rights thereunder.

 

 

 

[THIS REST OF THIS PAGE IS INTENTIONALLY BLANK. SIGNATURE PAGE FOLLOWS]

 

 
16
 

 

If the terms and conditions of this Agreement are acceptable to you, please sign in the space indicated below and return the signed copy of this Agreement to us. Acceptance may also be effected by facsimile or scanned transmission and in counterpart. 

 

We thank you for allowing us the opportunity to provide you with this Agreement. 

 

Yours truly,

 

BRIDGING FINANCE INC., as lender

 

 

Per:  /s/ Andrew Mushore

Name:  Andrew Mushore 

Title: Chief Compliance Officer 

 

I have authority to bind the Corporation.

 

 

ACCEPTANCE

 

The undersigned hereby accepts this Agreement this __9__ day of September, 2016.

 

 

 

 

BIOAMBER INC., as Borrower

 

 

Per:  /s/ Jean-François Huc

Name:  Jean-François Huc

Title: CEO 

 

I have authority to bind the Corporation.

 

BIOAMBER CANADA INC., as Guarantor

 

 

Per:  /s/ Jean-François Huc

Name:  Jean-François Huc

Title: President

 

I have authority to bind the Corporation.

 

 
17
 

 

 

Schedule A

Definitions

 

In addition to terms defined elsewhere in this Agreement, the following terms shall have the following meanings:

 

	
 
	
(a)
	
“Applicable Laws” means, with respect to any person, property, transaction or event, all present or future statutes, regulations, rules, orders, codes, treaties, conventions, judgments, awards, determinations and decrees of any governmental, regulatory, fiscal or monetary body or court of competent jurisdiction, in each case, having the force of law in any applicable jurisdiction.

 

	
 
	
(b)
	
“Applicable Securities Laws” means all federal and state securities laws of the United States applicable to the Borrower, together with all the regulations and rules made and promulgated thereunder and all administrative policy statements, instruments, blanket orders and rulings, notices and administrative directions issued by the securities commission or equivalent regulatory authority in the United States;

 

	
 
	
(c)
	
“Board” means the board of directors of the Borrower.

 

	
 
	
(d)
	
“Business Day” means any day other than a Saturday or a Sunday or any other day on which banks are closed for business in Toronto, Ontario.

 

	
 
	
(e)
	
“Cargill License” means (i) that certain Commercial License Agreement in the field of succinic acid, dated April 15, 2010, as amended, initially entered into between Cargill, Inc., through its Bio Technology Development Center (“Cargill”) and BioAmber S.A.S., a French entity, and now being between Cargill and BioAmber International SARL as a result of a reorganization transaction completed in October 2011, and (ii) that certain Commercial License Agreement in the field of adipic acid, dated May 4, 2012, entered into between Cargill and the Borrower.

	
 
	
(f)
	
“Collateral” means any and all properties, rights and assets of Borrower and the Guarantors, including those described on Schedule C.

	
 
	
(g)
	
“Credit Documents” shall mean this Agreement, each Guarantee and all security agreements, hypothecs, mortgages and all other documents, instruments, certificates, and notices at any time delivered by any person (other than the Lender or its affiliates) in connection with any of the foregoing;

	
 
	
(h)
	
“Encumbrances” means any mortgage, Lien, pledge, assignment, charge, security interest, title retention agreement, hypothec, levy, execution, seizure, attachment, garnishment, right of distress or other claim in respect of property of any nature or kind whatsoever howsoever arising (whether consensual, statutory or arising by operation of law or otherwise) and includes arrangements known as sale and lease-back, sale and buy-back and sale with option to buy-back or other agreement to sell or give a security interest in and any filing of or agreement to give any financing statement under the PPSA or the Uniform Commercial Code (or equivalent statutes) of any jurisdiction.

 

	
 
	
(i)
	
“Insolvency Proceeding” is any proceeding by or against any person under the United States Bankruptcy Code, or any other bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief.

	
 
	
(j)
	
“Lien” means any mortgage, charge, pledge, hypothecation, security interest, assignment, encumbrance, lien (statutory or otherwise), charge, title retention agreement or arrangement, 

 

 
18
 

 

	
 
		
restrictive covenant or other encumbrance of any nature or any other arrangement or condition that in substance secures payment or performance of an obligation.

 

	
 
	
(k)
	
“Material Adverse Change” means any change, condition or event which, when considered individually or together with other changes, conditions, events or occurrences could reasonably be expected to have a Material Adverse Effect.

 

	
 
	
(l)
	
“Material Adverse Effect” means a material adverse effect on (i) the business, revenues, operations, assets, liabilities (contingent or otherwise), financial condition or prospects of the Borrower or any Operating Company; (ii) on the rights and remedies of the Lender under this Agreement and the Security; (iii) on the ability of the Borrower to perform its obligations under the Credit Documents; or (iv) on the Liens created by the Security Agreements.

 

	
 
	
(m)
	
“Obligations” are the Borrower’s and the Guarantors’ obligations to pay when due any debts, principal, interest, fees, expenses, prepayment penalties and other amounts such person owes the Lender now or later, whether under the Credit Documents or otherwise, and including interest accruing after Insolvency Proceedings begin, and debts, liabilities, or obligations of such person assigned to the Lender, and to perform the Borrower’s and the Guarantor’s duties under the Credit Documents.

	
 
	
(n)
	
“Operating Companies” means BioAmber International S.A.R.L., BioAmber Sarnia Inc., Sinoven Biopolymers Inc., BioAmber Canada Inc. and BioAmber USA LLC and “Operating Company” means any one of them. 

	
 
	
(o)
	
“Material Change” has the meaning defined in the Applicable Securities Laws. 

	
 
	
(p)
	
“Permitted Encumbrances” means any Encumbrance approved by the Lender including, without limitation, any Encumbrance listed on Schedule B hereto.

 

	
 
	
(q)
	
“person” includes a natural person, a partnership, a joint venture, a trust, a fund, an unincorporated organization, a company, a corporation, an association, a government or any department or agency thereof, and any other incorporated or unincorporated entity.

 

	
 
	
(r)
	
“PPSA” means the Personal Property Security Act (Ontario) as the same may be amended from time to time.

 

	
 
	
(s)
	
“Public Record” means the annual information forms, information circulars, material change reports, press releases, financial statements, management discussion and analysis, and other continuous disclosure documents filed or furnished by or on behalf of the Borrower, as applicable, with the NYSE and any applicable securities regulatory authority (including on EDGAR).

 

	
 
	
(t)
	
“Statutory Encumbrances” means any Encumbrances arising by operation of Applicable Laws, including, without limitation, for carriers, warehousemen, repairers', taxes, assessments, statutory obligations and government charges and levies for amounts not yet due and payable or which may be past due but which are being contested in good faith by appropriate proceedings (and as to which there are no other enforcement proceedings or they shall have been effectively stayed). 

 

Words importing the singular include the plural thereof and vice versa and words importing gender include the masculine, feminine and neuter genders.

 

 

 

 
19
 

 

 

Schedule B

Permitted Encumbrances

“Permitted Encumbrances” are:

	
(a)
	
Liens existing on the date of this Agreement and shown in the Public Records;

	
(b)
	
Liens for taxes, fees, assessments or other government charges or levies, either (i) not due and payable or (ii) being contested in good faith and for which Borrower maintains adequate reserves on its books;

	
(c)
	
purchase money Liens or capital leases (i) on equipment acquired or held by Borrower after the date of this Agreement which is incurred for financing the acquisition of the equipment securing no more than $500,000 in the aggregate amount outstanding, or (ii) existing on equipment when acquired prior to the date of this Agreement, if the Lien is confined to the property and improvements and the proceeds of the equipment;

	
(d)
	
Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in (a) through (c), but any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness may not increase;

	
(e)
	
leases or subleases of real property granted in the ordinary course of Borrower’s business (or, if referring to another person, in the ordinary course of such person’s business), and leases, subleases, non-exclusive licenses or sublicenses of personal property (other than Intellectual Property) granted in the ordinary course of Borrower’s business (or, if referring to another person, in the ordinary course of such person’s business), if the leases, subleases, licenses and sublicenses do not prohibit granting Lender a security interest therein; and

	
(f)
	
non-exclusive licenses of intellectual property granted to third parties in the ordinary course of business.

 

 
20
 

 

Schedule C

Collateral

 

 

The Collateral consists of all of Borrower’s and each Guarantor’s real and personal property of every kind and nature whether now owned or hereafter acquired by, or arising in favor of Borrower or any Guarantor, and regardless of where located, including, without limitation, all of Borrower’s and Guarantor’s right, title and interest in and to the following property:

 

1.All Goods, Accounts (including health-care receivables), Collateral Accounts, Equipment, Inventory, contract rights or rights to payment of money, leases, license agreements, franchise agreements, General Intangibles (including Intellectual Property), Commercial Tort Claims, Documents, Instruments (including any Promissory Notes), Chattel Paper (whether tangible or electronic), cash and Cash Equivalents, Fixtures, letters of credit, Letter of Credit Rights (whether or not the letter of credit is evidenced by a writing), Securities, and all other Investment Property, Supporting Obligations, and Financial Assets, whether now owned or hereafter acquired, wherever located, but excluding (a) the Cargill License, and (b) BioAmber International SARL’s ownership of BioAmber Sarnia Inc. (i) to the extent such ownership is pledged to Comerica Bank pursuant to that certain Loan Agreement between BioAmber Sarnia, Comerica Bank and the other parties thereto dated as of June 20, 2014, as such agreement may be amended, restated, supplemented or otherwise modified from time to time and (ii) for so long as the Second Amended and Restated Joint Venture Agreement dated February 15, 2016 by and among the Borrower, BioAmber International SARL, Mitsui & Co., Ltd. and BioAmber Sarnia Inc. is in effect; and

 

2.All real property interests (including leaseholds, mineral rights, timber, etc.); and

 

3.All Borrower’s Books relating to the foregoing, and all additions, attachments, accessories, accessions and improvements to any of the foregoing, and all substitutions, replacements or exchanges therefor, and all Proceeds, insurance claims, products, profits and other rights to payments not otherwise included in the foregoing; provided, that, the grant of security interest herein shall not extend to and the term "Collateral" shall not include (a) rights held under any license that prohibits the granting of a security interest or that is not assignable by its terms without the consent of the licensor thereof (in all cases only to the extent such restriction on assignment is enforceable under applicable law); and (b) equipment subject to liens permitted pursuant to Subsection (c) of the definition of Permitted Encumbrances where the agreements governing the capital lease obligations or purchase money Indebtedness related thereto prohibit such security interest, for so long as such prohibition exists.

 

 

 
21

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