Document:

mbii-ex1043_174.htm

Exhibit 10.43

 

INTERCREDITOR AGREEMENT

 

This Intercreditor Agreement, dated as of March 22, 2017 (this “Agreement”), is made between Ivy Investment Management Company, a Delaware corporation, as administrative agent for the Waddell Lenders referred to below (in such capacity, “Waddell Agent”), Gordon Snyder, an individual, as administrative agent for the Snyder Lenders referred to below (in such capacity “Snyder Agent”), and LSQ Funding Group, L.C. (“LSQ”).

Recitals

	
A.
	
Marrone Bio Innovations, Inc., a Delaware corporation (“Borrower”), has entered into the A/R Facility Agreement (as defined below) with LSQ, which, along with any other obligations owing to LSQ by Borrower, is secured by certain property of Borrower.

	
B.
	
Ivy Science & Technology Fund, Waddell & Reed Advisors Science & Technology Fund and Ivy Funds VIP Science & Technology (collectively, the “Waddell Lenders”) are the holders of certain Senior Secured Promissory Notes, dated August 20, 2015 (as amended, restated, supplemented or otherwise modified from time to time, the “Waddell Notes”) made by Borrower pursuant to that certain Purchase Agreement, dated as of August 20, 2015 (as amended, restated, supplemented or otherwise modified from time to time, the “Waddell Purchase Agreement”), between Borrower and the investors party thereto.  Waddell Agent has the full right, power and authority to enter into this Agreement on behalf of the Waddell Lenders and bind the Waddell Lenders thereto, pursuant to the Security Agreement (as defined in the Waddell Purchase Agreement).  

	
C.
	
Borrower, the lenders party thereto (collectively, the “Snyder Lenders”), and Snyder Agent (as administrative agent and collateral agent for the Snyder Lenders) have entered into that certain Loan Agreement dated as of October 2, 2012 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Snyder Loan Agreement”).   Snyder Agent, as administrative agent for the Snyder Lenders, has the full right, power and authority to enter into this Agreement on behalf of the Snyder Lenders and bind the Snyder Lenders thereto, pursuant to the Snyder Loan Agreement.

	
D.
	
To induce each of LSQ and the Existing Creditors to make and maintain the credit extensions under the A/R Facility Agreement and each Existing Credit Agreement, respectively, each of LSQ and each Existing Agent, on behalf of the Existing Creditors, is willing to enter into this Agreement to, among other things, subordinate certain of its liens on the terms and conditions herein set forth.

NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

1.Definitions.  As used herein, the following terms have the following meanings:

“A/R Facility Agreement” means that certain Inventory Purchase Agreement, dated on or about March 22, 2017, between LSQ and Borrower, as the same may be amended, restated, 

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supplemented or otherwise modified from time to time.

“A/R Facility Documents” means the A/R Facility Agreement and all Loan Documents, each as defined in the A/R Facility Agreement. 

“A/R Facility Senior Collateral” means (i) Borrower’s present and future accounts arising from the sale or lease of inventory or the provision of services, (ii) Borrower’s present and future inventory, (iii) to the extent evidencing, governing, or securing Borrower’s accounts or inventory, Borrower’s payment intangibles, chattel paper, instruments and documents, (iv) proceeds of insurance policies covering Borrower’s accounts and inventory received with respect to such accounts and inventory, and (v) the direct and indirect proceeds of the foregoing; provided that, for purposes of clarification, notwithstanding the foregoing, in no event shall “A/R Facility Senior Collateral” include any right, title or interest of any Obligor in (A) any Intellectual Property or any licenses thereof, (B) equipment, (C) to the extent evidencing, governing, securing or otherwise related to equipment, any general intangibles, chattel paper, instruments or documents, or (D) Borrower’s deposit accounts # and # with Five Star Bank or any other property described as “Collateral” under the Commercial Security Agreement, dated as of June 13, 2014, by Borrower in favor of Five Star Bank, as such Security Agreement is in effect as of the date hereof or as amended with LSQ’s consent.

“Bankruptcy Code” means the federal bankruptcy law of the United States as from time to time in effect, currently as Title 11 of the United States Code.  Section references to current sections of the Bankruptcy Code shall refer to comparable sections of any revised version thereof if section numbering is changed.

“Claim” means, (i) in the case of LSQ, any and all present and future “claims” (used in its broadest sense, as contemplated by and defined in Section 101(5) of the Bankruptcy Code, but without regard to whether such claim would be disallowed under the Bankruptcy Code) of LSQ now or hereafter arising or existing under or relating to the A/R Facility Documents, whether joint, several, or joint and several, whether fixed or indeterminate, due or not yet due, contingent or non-contingent, matured or unmatured, liquidated or unliquidated, or disputed or undisputed, whether under a guaranty or a letter of credit, and whether arising under contract, in tort, by law, or otherwise, any interest or fees thereon (including interest or fees that accrue after the filing of a petition by or against any Obligor under the Bankruptcy Code, irrespective of whether allowable under the Bankruptcy Code), any costs of Enforcement Actions, including reasonable attorneys’ fees and costs, and any prepayment or termination fees, and (ii) in the case of Existing Creditors, any and all present and future “claims” (used in its broadest sense, as contemplated by and defined in Section 101(5) of the Bankruptcy Code, but without regard to whether such claim would be disallowed under the Bankruptcy Code) of Existing Creditors now or hereafter arising or existing under or relating to the Existing Loan Documents, whether joint, several, or joint and several, whether fixed or indeterminate, due or not yet due, contingent or non-contingent, matured or unmatured, liquidated or unliquidated, or disputed or undisputed, whether under a guaranty or a letter of credit, and whether arising under contract, in tort, by law, or otherwise, any interest or fees thereon (including interest or fees that accrue after the filing of a petition by or against any Obligor under the Bankruptcy Code, irrespective of whether allowable under the Bankruptcy Code), any costs of Enforcement Actions, including reasonable attorneys’ fees and costs, and any prepayment or termination fees.

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“Collateral” means all real or personal property of any Obligor in which any Creditor now or hereafter has a security interest.

“Common Collateral” means all Collateral in which both LSQ and each Existing Agent have a security interest.

“Credit Documents” means, collectively, the Existing Loan Documents and the A/R Facility Documents.

“Creditors” means, collectively, Existing Creditors and LSQ.

“Enforcement Action” means, with respect to any Creditor and with respect to any Claim of such Creditor or any item of Collateral in which such Creditor has or claims a security interest, lien, or right of offset, (i) any action, whether judicial or nonjudicial, to repossess, collect, offset, recoup, give notification to third parties with respect to, sell, dispose of, foreclose upon, give notice of sale, disposition, or foreclosure with respect to, or obtain equitable or injunctive relief with respect to, such Claim or Collateral, (ii) any action in connection with any Insolvency Proceeding to protect, defend, enforce or assert rights with respect to such Claim or Collateral, including without limitation filing and defending any proof of claim, opposing or joining in the opposition of any sale of assets or confirmation of a plan of reorganization, or opposing or joining in the opposition of any proposed debtor-in-possession loan or use of cash collateral, and (iii) the filing of, or the joining in the filing of, an involuntary bankruptcy or insolvency proceeding against any Obligor.  

“Existing Agent” means each of the Waddell Agent and the Snyder Agent.

“Existing Creditors” means, collectively, the Waddell Lenders, the Snyder Lenders, the Waddell Agent and the Snyder Agent.

“Existing Loan Documents” means, collectively, all Snyder Loan Documents and all Waddell Loan Documents.

“Existing Senior Collateral” means all Collateral in which an Existing Creditor has a security interest, other than the A/R Facility Senior Collateral.

“Intellectual Property” means, collectively, all copyrights, copyright registrations and applications for copyright registrations, including all renewals and extensions thereof, all rights to recover for past, present or future infringements thereof and all other rights whatsoever accruing thereunder or pertaining thereto (collectively, “Copyrights”), all patents and patent applications, including the inventions and improvements described and claimed therein together with the reissues, divisions, continuations, renewals, extensions and continuations in part thereof, all damages and payments for past or future infringements thereof and rights to sue therefor, and all rights corresponding thereto throughout the world and all income, royalties, damages and payments now or hereafter due and/or payable under or with respect thereto (collectively, “Patents”), and all trade names, trademarks and service marks, logos, trademark and service mark registrations, and applications for trademark and service mark registrations, including all renewals of trademark and service mark registrations, all rights to recover for all past, present and future infringements thereof and all rights to sue therefor, and all rights corresponding 

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thereto throughout the world (collectively, “Trademarks”), together, in each case, with the product lines and goodwill of the business connected with the use of, and symbolized by, each such trade name, trademark and service mark, together with (a) all inventions, processes, production methods, proprietary information, know-how and trade secrets; (b) all licenses or user or other agreements granted to any Obligor with respect to any of the foregoing, in each case whether now or hereafter owned or used; (c) all information, customer lists, identification of suppliers, data, plans, blueprints, specifications, designs, drawings, recorded knowledge, surveys, engineering reports, test reports, manuals, materials standards, processing standards, performance standards, catalogs, computer and automatic machinery software and programs; (d) all field repair data, sales data and other information relating to sales or service of products now or hereafter manufactured; (e) all accounting information and all media in which or on which any information or knowledge or data or records may be recorded or stored and all computer programs used for the compilation or printout of such information, knowledge, records or data; (f) all licenses, consents, permits, variances, certifications and approvals of governmental agencies now or hereafter held by any Obligor; and (g) all causes of action, claims and warranties now or hereafter owned or acquired by any Obligor in respect of any of the items listed above. 

“Junior Collateral” means, (i) in the case of LSQ, all Common Collateral consisting of Existing Senior Collateral, and (ii) in the case of Existing Creditors, all Common Collateral consisting of A/R Facility Senior Collateral.

“Obligor” means Borrower, each subsidiary thereof and each other person or entity that provides a guaranty of, or collateral for, any Claim of any Creditor.

“Proceeds Sweep Period” means the period beginning on the later to occur of (i) the occurrence of an event of default under any Creditor’s Credit Documents and (ii) receipt by the other Creditor of written notice from such Creditor of such event of default, and ending on the date on which such event of default shall have been waived in writing by the Creditor issuing such notice.

“Senior Collateral” means, (i) in the case of LSQ, all A/R Facility Senior Collateral and (ii) in the case of Existing Creditors, all Existing Senior Collateral.

“Snyder Loan Documents” means, collectively, the Snyder Loan Agreement and all documents and agreements relating thereto.  

“UCC” means the Uniform Commercial Code of any applicable jurisdiction and, if the applicable jurisdiction shall not have any Uniform Commercial Code, the Uniform Commercial Code as in effect in the State of New York. The following terms have the meanings given to them in the applicable UCC:  “account”, “chattel paper”, “commodity account”, “deposit account”, “document”, “equipment”, “general intangible”, “instrument”, “inventory”, “proceeds” and “securities account”. 

“Waddell Loan Documents” means, collectively, the Waddell Notes, the Waddell Purchase Agreement and all documents and agreements relating thereto.  

2.Lien Subordination.  (a)  Notwithstanding the respective dates of attachment or 

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perfection of the security interests of Existing Creditors and the security interests of LSQ, or any contrary provision of the UCC, or any applicable law or decision, or the provisions of the Credit Documents, and irrespective of whether LSQ or any Existing Creditor holds possession of all or any part of the Collateral, (i) all now existing and hereafter arising security interests of LSQ in any A/R Facility Senior Collateral shall at all times be senior to the security interests of Existing Creditors in such A/R Facility Senior Collateral, and (ii) all now existing and hereafter arising security interests of Existing Creditors in any Existing Senior Collateral shall at all times be senior to any security interests of LSQ in such Existing Senior Collateral.

(b)Each of LSQ and each Existing Agent, on behalf of the applicable Existing Creditors:

(i)acknowledges and consents to (A) Borrower granting to the other Creditor a security interest in the Common Collateral of such other Creditor, (B) the other Creditor filing any and all financing statements and other documents as reasonably deemed necessary by the other Creditor in order to perfect its security interest in its Common Collateral, and (C) Borrower’s entry into the Credit Documents to which the other Creditor is a party.

(ii)acknowledges, agrees and covenants, notwithstanding Section 2(c) but subject to Section 5, that it shall not contest, challenge or dispute the validity, attachment, perfection, priority or enforceability of the other Creditor’s security interest in the Common Collateral, or the validity, priority or enforceability of the other Creditor’s Claim. For the avoidance of doubt and notwithstanding anything in this Agreement to the contrary, LSQ shall not take any action seeking to recharacterize any Intellectual Property or equipment, the proceeds of either, or any other Existing Senior Collateral or proceeds thereof as A/R Facility Senior Collateral.

(c)Subject to Section 2(b)(ii), the priorities provided for herein with respect to security interests and liens are applicable only to the extent that such security interests and liens are enforceable, perfected and have not been avoided; if a security interest or lien is judicially determined to be unenforceable or unperfected or is judicially avoided with respect to one or more Claims or any part thereof, the priorities provided for herein shall not be available to such security interest or lien to the extent that it is avoided or determined to be unenforceable.  Nothing in this Section 2(c) affects the operation of any turnover of payment provisions hereof, or of any other agreements among any of the parties hereto.

3.Distribution of Proceeds of Common Collateral.  (a)  In the event that any Creditor shall receive any payment, distribution, security or proceeds constituting its Junior Collateral prior to the indefeasible payment in full of the other set of Creditors’ Claims and termination of all the other set of Creditors’ Credit Documents, such Creditor shall, upon demand of the other Creditor and delivery by such other creditor of evidence supporting its priority claim to such Collateral, deliver to such other Creditor such payment, distribution, security or proceeds for application to the other set of Creditors’ Claims.

(b)Except as expressly set forth herein, nothing in this Section 3 shall obligate any Creditor (i) to sell, exchange, collect or otherwise dispose of Collateral at any time, or (ii) to take any action in violation of any stay imposed in connection with any Insolvency Proceeding, 

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including without limitation the automatic stay in Section 362(a) of the Bankruptcy Code, nor shall any Creditor have any liability to the other arising from or in connection with such Creditor’s failure to take such action.

4.Subordination of Remedies.  Each of LSQ and each Existing Agent, on behalf of the applicable Existing Creditors (such Person for purposes of this Section 4, the “Junior Creditor”), agrees, subject to Section 5, that, unless and until all Claims of the other set of Creditors (for purposes of this Section 4, the “Senior Creditor”) have been indefeasibly paid in full and all Credit Documents of the Senior Creditor have been terminated, and whether or not any Insolvency Proceeding has been commenced by or against any Obligor, the Junior Creditor shall not, without the prior written consent of the Senior Creditor, enforce, or attempt to enforce, any rights or remedies under or with respect to any of such Junior Creditor’s Junior Collateral, including causing or compelling the pledge or delivery of such Junior Collateral, any attachment of, levy upon, execution against, foreclosure upon or the taking of other action against or institution of other proceedings with respect to any such Junior Collateral, notifying any account debtors of any Obligor, asserting any claim or interest in any insurance with respect to such Junior Collateral, or exercising any rights under any lockbox agreement, account control agreement, landlord waiver or bailee’s letter or similar agreement or arrangement with respect to such Junior Collateral, or institute or commence, or join with any person or entity in commencing, any action or proceeding with respect to such rights or remedies (including any action of foreclosure, enforcement, collection or execution and any Insolvency Proceeding involving any Obligor), except that notwithstanding the foregoing, at all times, including during a Proceeds Sweep Period, the Junior Creditor shall be able to exercise its rights under a lockbox agreement or an account control agreement with respect to any deposit account, securities account or commodity account constituting Collateral, including its rights to freeze such account or exercise any rights of offset.

5.Insolvency Proceedings.  (a)  Rights Continue.  In the event of any Obligor’s insolvency, reorganization or any case, action or proceeding, commenced by or against such Obligor, under any bankruptcy or insolvency law or laws relating to the relief of debtors, including, without limitation, any voluntary or involuntary bankruptcy (including any case commenced under the Bankruptcy Code), insolvency, receivership, liquidation, dissolution, winding-up or other similar statutory or common law proceeding or arrangement involving any Obligor, the readjustment of its liabilities, any assignment for the benefit of its creditors, or any marshalling of its assets or liabilities (each, an “Insolvency Proceeding”), this Agreement shall remain in full force and effect in accordance with Section 510(a) of the United States Bankruptcy Code.

(b)Proof of Claim, Sales and Plans.  At any meeting of creditors or in the event of any Insolvency Proceeding, each Creditor shall retain the right to vote, file a proof of claim and otherwise act with respect to its Claims (including the right to vote to accept or reject any plan of partial or complete liquidation, reorganization, arrangement, composition, or extension (a “Plan”)); provided that (i) no Creditor shall initiate, prosecute or participate in any claim or action in such Insolvency Proceeding directly or indirectly challenging the enforceability, validity, perfection or priority of the other set of Creditors’ Claims, this Agreement, the Credit Documents, or any liens securing the other set of Creditors’ Claims; and (ii) no Creditor shall propose any Plan or file or join in any motion or pleading in support of any motion or Plan or 

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exercise any other voting rights unless such Plan provides for the treatment of the Creditors’’ claims in a manner consistent with the terms of this Agreement.

(c)Finance and Sale Issues.  (i)  If any Obligor shall be subject to any Insolvency Proceeding and a Creditor shall desire to permit the use by such Obligor of cash collateral (as defined in Section 363(a) of the Bankruptcy Code, “Cash Collateral”) constituting such Creditor’s Senior Collateral or to permit any Obligor to obtain financing (including on a priming basis with respect to such Creditor’s Senior Collateral), whether from such Creditor or any other third party under Section 362, 363 or 364 of the Bankruptcy Code or any other applicable law (each, a “Post-Petition Financing”), then the other set of Creditors shall not oppose or raise any objection to or contest (or join with or support any third party opposing, objecting to or contesting), such use of Cash Collateral or Post-Petition Financing; provided, however, that, notwithstanding the foregoing, each Creditor shall be entitled to oppose, raise objection to, or contest (or join with or support any third party opposing, objecting to, or contesting) any such use of Cash Collateral or Post-Petition Financing if such proposed use of Cash Collateral or Post-Petition Financing would result in any liens on such Creditor’s Senior Collateral to be subordinated to or pari passu with such Cash Collateral or Post-Petition Financing.

(ii)Each of LSQ and each Existing Agent, on behalf of the applicable Existing Creditors, agrees that it shall raise no objection to, and shall not oppose or contest (or join with or support any third party opposing, objecting to or contesting), a sale, revesting or other disposition of any Collateral constituting its Junior Collateral free and clear of its liens or other Claims, whether under Sections 363 or 1141 of the Bankruptcy Code or other applicable law, if the other set of Creditors has consented to such sale or disposition of such assets; provided, however, that, notwithstanding the foregoing and for the avoidance of doubt, any Creditor shall be entitled to oppose, raise objection to, or contest (or join with or support any third party opposing, objecting to, or contesting) any sale, revesting or other disposition of any Collateral constituting its Senior Collateral free and clear of its liens or other Claims.

(d)Relief from the Automatic Stay.  Each of LSQ and each Existing Agent, on behalf of the applicable Existing Creditors, agrees that, until the other set of Creditors’ Claims have been indefeasibly paid in full, such Creditor shall not seek relief, pursuant to Section 362(d) of the Bankruptcy Code or otherwise, from the automatic stay of Section 362(a) of the Bankruptcy Code or from any other stay in any Insolvency Proceeding in respect of its Junior Collateral without the prior written consent of such other Creditor.

(e)Reserved.

(f)Post-Petition Interest.  Each Creditor shall not oppose or seek to challenge any claim by the other set of Creditors for allowance in any Insolvency Proceeding of Claims consisting of post-petition interest, fees or expenses; provided that the treatment of such Claims are consistent with the Creditors’ relative priorities set forth in this Agreement.

(g)Reserved.  

6.Notice of Default.  Each of LSQ and each Existing Agent, on behalf of the applicable Existing Creditors, shall give to the other prompt written notice of the occurrence of any default 

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or event of default (which has not been promptly waived or cured) under any of its Credit Documents of which it has knowledge (and any subsequent cure or waiver thereof) and shall, simultaneously with giving any notice of default or acceleration to Borrower, provide to such other Creditor a copy of such notice of default.  For the avoidance of doubt, nothing in this Section 6 shall obligate any Creditor to provide any notice in violation of any stay imposed in connection with any Insolvency Proceeding, including without limitation the automatic stay in Section 362(a) of the Bankruptcy Code, nor shall any Creditor have any liability to the other arising from or in connection with such Creditor’s failure to take such action.

7.Release of Liens. In the event of any private or public sale or other disposition, by or with the consent of LSQ and each Existing Agent, on behalf of the applicable Existing Creditors (such Person, for purposes of this Section 7, the “Senior Creditor”), of all or any portion of such set of Creditors’ Senior Collateral, an Existing Agent, on behalf of Existing Creditors, and LSQ, respectively (for purposes of this Section 7, the “Junior Creditor”), agrees that such sale or disposition shall be free and clear of such Junior Creditor’s liens; provided that such sale or disposition is made in accordance with the UCC or applicable provisions of the Bankruptcy Code, including without limitation Sections 363(f) or 1141(c) of the Bankruptcy Code.  The Junior Creditor agrees that, in connection with any such sale or other disposition, it shall execute any and all lien releases or other documents reasonably requested by the Senior Creditor in connection therewith.

8.Reserved.  

9.Agent for Perfection.  (a) LSQ acknowledges that applicable provisions of the UCC may require, in order to properly perfect Existing Creditors’ security interest in the Common Collateral securing the Existing Creditors’ Claims, that an Existing Agent possess certain of such Common Collateral, and may require the execution of control agreements in favor of an Existing Agent concerning such Common Collateral.  In order to help ensure that Existing Creditors’ security interest in such Common Collateral is properly perfected (but subject to and without waiving the other provisions of this Agreement), LSQ agrees to hold both for itself and, solely for the purposes of perfection and without incurring any duties or obligations to Existing Creditors as a result thereof or with respect thereto, for the benefit of Existing Creditors, any such Common Collateral, and agrees that Existing Creditors’ lien in such Common Collateral shall be deemed perfected in accordance with applicable law.  

(b)Each Existing Agent, on behalf of the applicable Existing Creditor, acknowledges that applicable provisions of the UCC may require, in order to properly perfect LSQ’s security interest in the Common Collateral securing LSQ’s Claims, that LSQ possess certain of such Common Collateral, and may require the execution of control agreements in favor of a LSQ concerning such Common Collateral.  In order to help ensure that LSQ’s security interest in such Common Collateral is properly perfected (but subject to and without waiving the other provisions of this Agreement), each Existing Agent, on behalf of the applicable Existing Creditor, agrees to hold both for itself and, solely for the purposes of perfection and without incurring any duties or obligations to LSQ as a result thereof or with respect thereto, for the benefit of LSQ, any such Common Collateral, and agrees that LSQ’s lien in such Common Collateral shall be deemed perfected in accordance with applicable law

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10.Credit Documents. (a)  Each of LSQ and each Existing Agent, on behalf of the applicable Existing Creditors, represents and warrants that it has provided to the other true, correct and complete copies of all of its Credit Documents.  

(b)At any time and from time to time, without notice to the other set of Creditors, each Creditor may take such actions with respect to its Claims as such Creditor, in its sole discretion, may deem appropriate, including, without limitation, terminating advances under its Credit Documents, increasing the principal amount, extending the time of payment, increasing applicable interest  to the default rate, renewing, compromising or otherwise amending the terms of any documents affecting its Claims and any Collateral therefor, and enforcing or failing to enforce any rights against Borrower or any other person, and no such action or inaction described in this sentence shall impair or otherwise affect such Creditor’s rights hereunder; provided, however, that no Creditor shall take any action that is inconsistent with the provisions of this Agreement.  Each of LSQ and each Existing Agent, on behalf of the applicable Existing Creditors, waives the benefits, if any, of any statutory or common law rule that may permit a subordinating creditor to assert any defenses of a surety or guarantor, or that may give the subordinating creditor the right to require a senior creditor to marshal assets, and each of LSQ and each Existing Agent, on behalf of the applicable Existing Creditors, agrees that it shall not assert any such defenses or rights.  

(c)Each of LSQ and each Existing Agent, on behalf of the applicable Existing Creditors, agrees that any other Creditor may release or refrain from enforcing its security interest in the Collateral, or permit the use or consumption of such Collateral by any Obligor free of the other Creditor’s security interest, without incurring any liability to any other Creditor.

11.Waiver of Right to Require Marshaling.  Each of LSQ and each Existing Agent, on behalf of the applicable Existing Creditors, expressly waives any right that it otherwise might have to require any other Creditor to marshal assets or to resort to Collateral in any particular order or manner, whether provided for by common law or statute.  No Creditor shall be required to enforce any guaranty or any security interest or lien given by any person or entity as a condition precedent or concurrent to the taking of any Enforcement Action with respect to the Collateral.

12.Representations and Warranties.  Each of LSQ and each Existing Agent, on behalf of the applicable Existing Creditors, represents and warrants to the other that:

(a)all action on the part of such Creditor, its officers, directors, partners, members and shareholders, as applicable, necessary for the authorization of this Agreement and the performance of all obligations of such Creditor hereunder has been taken;

(b)this Agreement constitutes the legal, valid and binding obligation of such Creditor, enforceable against such Creditor in accordance with its terms;

(c)the execution, delivery and performance of and compliance with this Agreement by such Creditor will not (i) result in any material violation or default of any term of any of such Creditor’s charter, formation or other organizational documents (such as Articles or Certificate of Incorporation, bylaws, partnership agreement, operating agreement, etc.) or (ii) violate any 

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material applicable law, rule or regulation.  

13.Disgorgement.  (a)  If, at any time after payment in full of the LSQ Claims any payments of the LSQ Claims must be disgorged by LSQ for any reason (including, without limitation, any Insolvency Proceeding), this Agreement and the relative rights and priorities set forth herein shall be reinstated as to all such disgorged payments as though such payments had not been made and Existing Creditors shall immediately pay over to LSQ all money or funds received or retained by Existing Creditors with respect to the Existing Creditors’ Claims to the extent that such receipt or retention would have been prohibited hereunder.

(b)If, at any time after payment in full of the Existing Creditors’ Claims any payments of the Existing Creditors’ Claims must be disgorged by any Existing Creditor for any reason (including, without limitation, any Insolvency Proceeding), this Agreement and the relative rights and priorities set forth herein shall be reinstated as to all such disgorged payments as though such payments had not been made and LSQ shall immediately pay over to an Existing Agent all money or funds received or retained by LSQ with respect to the LSQ Claims to the extent that such receipt or retention would have been prohibited hereunder.  

14.Successors and Assigns.  This Agreement shall bind any successors or assignees of each Creditor.  This Agreement shall remain effective until all Claims are indefeasibly paid or otherwise satisfied in full and the Credit Documents of  LSQ and the Existing Creditors have terminated.  This Agreement is solely for the benefit of the Creditors and not for the benefit of Borrower or any other party.  Each Creditor shall not sell, assign, pledge, dispose of or otherwise transfer all or any portion of its Claims or any of its Credit Documents or any interest in any Common Collateral unless, prior to the consummation of any such action, the transferee thereof shall execute and deliver to the other set of Creditors an agreement of such transferee to be bound hereby, or an agreement substantially identical to this Agreement providing for the continued subjection of such Claims, the interests of the transferee in the Collateral and the remedies of the transferee with respect thereto as provided herein with respect to the transferring Creditor and for the continued effectiveness of all of the other rights of the other Creditor arising under this Agreement, in each case in form satisfactory to the other set of Creditors.

15.Further Assurances.  Each of LSQ and each Existing Agent, on behalf of the applicable Existing Creditors, agrees to execute such documents and/or take such further action as the other Creditor may at any time or times reasonably request in order to carry out the provisions and intent of this Agreement, including, without limitation, ratifications and confirmations of this Agreement from time to time hereafter, as and when requested by the other Creditor.

16.Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.

17.Governing Law; Waiver of Jury Trial.  (a)  This Agreement and the rights and obligations of the parties hereunder 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 that would result in the application of the laws of any other jurisdiction.

(b)EACH CREDITOR WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY 

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CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN.

18.Entire Agreement.  This Agreement represents the entire agreement with respect to the subject matter hereof, and supersedes all prior negotiations, agreements and commitments.  Each Creditor is not relying on any representations by the other Creditor, Borrower or any other Obligor in entering into this Agreement, and each Creditor has kept and will continue to keep itself fully apprised of the financial and other condition of each Obligor.  This Agreement may be amended only by written instrument signed by the Creditors.

19.Relationship among Creditors. The relationship among the Creditors is, and at all times shall remain solely that of creditors of Obligors.  Creditors shall not under any circumstances be construed to be partners or joint venturers of one another; nor shall the Creditors under any circumstances be deemed to be in a relationship of confidence or trust or a fiduciary relationship with one another, or to owe any fiduciary duty to one another.  Creditors do not undertake or assume any responsibility or duty to one another to select, review, inspect, supervise, pass judgment upon or otherwise inform each other of any matter in connection with any Obligor’s property, any Collateral held by any Creditor or the operations of any Obligor.  Each Creditor shall rely entirely on its own judgment with respect to such matters, and any review, inspection, supervision, exercise of judgment or supply of information undertaken or assumed by any Creditor in connection with such matters is solely for the protection of such Creditor.

20.No Modification.  Notwithstanding anything contained herein, no provision of this Agreement shall be deemed to waive, amend, limit or otherwise modify any term or condition of the an Existing Credit Agreement and the A/R Facility Documents.

21.Severability.  Any provision of this Agreement which is illegal, invalid, prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent such illegality, invalidity, prohibition or unenforceability without invalidating or impairing the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

22.Notices.  All notices, demands, instructions and other communications required or permitted to be given to or made upon any party hereto shall be in writing and shall be delivered or sent by first-class mail, postage prepaid, or by overnight courier or messenger service or by facsimile, message confirmed, and shall be deemed to be effective for purposes of this Agreement on the day that delivery is made or refused.  Unless otherwise specified in a notice mailed or delivered in accordance with the foregoing sentence, notices, demands, instructions and other communications in writing shall be given to or made upon the respective parties hereto at their respective addresses and facsimile numbers indicated on the signature pages hereto.

[Signature pages follow]

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IN WITNESS WHEREOF, the undersigned have executed this Intercreditor Agreement as of the date first above written.

LSQ:

 

By /s/William Samuelson

	
	
 

William Samuelson

EVP & Director of Operations

 

Address for Notices:

 

LSQ Funding Group, L.C.

Address

Officer:William Samuelson 

Email:

Tel:

 

 

S-1

sf-3740373 

 

EXISTING AGENTS:

 

IVY INVESTMENT MANAGEMENT COMPANY, as administrative agent and collateral agent on behalf of the Waddell Lenders

 

By /s/ Zack Shafran 

Name: Zack Shafran

Title: Senior Vice President, Portfolio Manager

 

Address for Notices:

 

Attn:Cory Williams

Tel.:

Fax:

Email:

 

 

S-2

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/s/Gordon Snyder

Gordon Snyder, as Snyder Agent 

 

Address for Notices:

 

Tel.:

Fax:

Email:

S-3

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Acknowledged and Agreed to:

 

BORROWER:

 

MARRONE BIO INNOVATIONS, INC.

 

By:/s/Pamela Marrone

Name:Pamela Marrone 

Title:CEO+Founder

 

 

Address for Notices:

1540 Drew Avenue
Davis, CA 95618

 

 

 

 

 

S-4

sf-3740373mbii-ex1044_101.htm

exhibit 10.44

invoice PURCHASE AGREEMENT

THIS INVOICE PURCHASE AGREEMENT (the “Agreement”) is made on March 24, 2017, between MARRONE BIO INNOVATIONS, INC., a Delaware corporation (“Seller”) and LSQ Funding Group, L.C. (“Purchaser”).

1.Definitions and Index to Definitions. The following terms shall have the following meanings. All capitalized terms not defined in this Agreement shall have the meaning set forth in the Uniform Commercial Code (the “UCC”) as adopted in the Chosen State:

1.1“Advance Rate” – 80%, which percent may be revised at any time by Purchaser in Purchaser’s reasonable discretion.

1.2“Aging and Collection Fee” – A percentage multiplied by the Face Amount of each Account for the following periods that an Account remains unpaid: 0% from day 1 through day 90; and 0.35% from day 91thereafter, charged at the time of collection of an Account.

1.3“Avoidance Claim” – Any claim that a payment received by Purchaser is a preference or otherwise avoidable under the United States Bankruptcy Code or any other debtor-relief statute.

1.4“Chosen State” – Delaware.

1.5“Clearance Days” – Three (3) business days.

1.6“Closed Account” – An Account for which Purchaser has received full payment.

1.7“Collateral” – All now owned and hereafter acquired personal property and fixtures, and proceeds thereof, (including proceeds of proceeds) including without limitation: Accounts, including health-care insurance receivables; Chattel Paper; Inventory; Equipment; Instruments, including Promissory Notes; Investment Property; Documents; Deposit Accounts; Letter of Credit Rights; General Intangibles; and Supporting Obligations. Notwithstanding the foregoing, “Collateral” does not include Seller’s deposit accounts #3207933 and#3208014 with Five Star Bank.

1.8“Early Termination Fee” – See Sections 21.1,21.2,and 21.3.

1.9“Eligible Account” – An Account at all times acceptable to Purchaser in its sole discretion.

1.10“Eligibility Period” – 60 days beyond net terms of the Invoice, but in no case more than 120 days from invoice date.

1.11“Events of Default” – See Section 19.

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1.12“Face Amount” – The face amount due on a Purchased Account at the time of purchase.

1.13“Funds Usage Fee” – 0.035%, earned daily, charged monthly, on the last day of the monthtowhich it applies.

1.14“Invoice” – The document that evidences or is intended to evidence an Account.

1.15“Invoice Purchase Fee” – 1.00% multiplied by the Face Amount of a Purchased Account, charged at the time of the purchase of an Account.

1.16“Late Charge” – 18% per annum, which shall accrue and be payable on demand on any obligation not paid when due.

1.17“Maximum Amount” – $7,000,000.

1.18“Parties” – Seller and Purchaser.

1.19“Payor” – An Account Debtor, other obliger, or entity obligated on an Account, making payment for the account of such party.

1.20“Permitted lien” – 

(a)liens securing Seller’s obligations hereunder;

(b)liens for taxes, assessments and other governmental charges or levies (excluding any Lien imposed pursuant to the provisions of ERISA or Environmental Laws) (i) not yet due and payable or (ii) which are being properly contested and for which Seller has established adequate reserves;

(c)claims of materialmen, mechanics, carriers, warehousemen, processors or landlords arising out of operation of law so long as the obligations secured thereby [(i)] are not past due [or (ii) are being properly contested and for which Seller has established adequate reserves];

(d)liens consisting of deposits or pledges made in the ordinary course of business in connection with workers’ compensation, unemployment insurance, social security and similar laws;

(e)liens on equipment (including capital leases) to secure purchase money indebtedness, so long as such security interests do not apply to any property of Seller other than the equipment so acquired (and the products and proceeds thereof and records related thereto), and the Indebtedness secured thereby does not exceed the cost of such equipment (plus any related soft costs);

(f)liens on deposit accounts or securities accounts (and the contents thereof), in favor of the financial institution at which such account is located, arising pursuant to such financial institution’s standard terms and conditions governing such account;

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(g)customary rights of any lessor, lessee or sub lessee with respect to leased property arising under any lease entered into in the ordinary course of business;

(h)liens securing the Business Loan Agreement, dated June 13, 2014 (as amended from time to time), among Five Star Bank, Seller and Marrone Michigan Manufacturing, LLC, a Delaware limited liability company, and all documents relating thereto;

(i)liens subject to an inter-creditor agreement to which Purchaser is a party; and

(j)security interests, pledges, liens, charges, mortgages or other encumbrances in, to or on any Collateral in favor of any creditor of Seller other than Purchaser, so long as and to the extent that such security interest, pledge, lien, charge, mortgage or other encumbrance is junior and subordinate to the security interests, pledges, liens, charges, mortgages and other encumbrances in, to or on Collateral in favor of Purchaser

1.21“Prime Rate” – The prime rate published by The Wall Street Journal, from time to time as its prime rate.

1.22“Purchase Price” – The Face Amount of a Purchased Account minus the Invoice Purchase Fee.

1.23“Purchased Account” – An Account purchased which is not a Closed Account.

1.24“Required Reserve Amount” – 100% minus the Advance Rate multiplied by the unpaid Face Amount of Purchased Accounts that are Eligible Accounts plus 100% of the Face Amount of all other Purchased Accounts, plus accrued fees and expenses.

1.25“Reserve Account” – An account or accounts on the books of Purchaser for the purposes set forth herein.

1.26“Reserve Shortfall” – The amount by which the Reserve Account is less than the Required Reserve Amount.

1.27“Term and Termination Date” – See Section 21.

2.Assignment and Sale. Seller shall sell to Purchaser as absolute owner, and Purchaser shall purchase from Seller, Seller’s Accounts as Purchaser determines in its sole discretion. Each Account shall be accompanied by such documentation supporting and evidencing the Account as Purchaser may request. Purchaser shall pay the Purchase Price of any Purchased Account, less the Required Reserve and any amounts due to Purchaser from Seller, within two (2) business days of the date of Purchase. Seller represents that all Purchased Accounts are true and collectible and are sold to Purchaser free and clear of any claims (other than Permitted Liens).

3.Reserve Account.  Purchaser may credit any portion of any Purchase Price to the Reserve Account, including but not limited to the amount of the Reserve Shortfall. So long as there is no existing Event of Default, Purchaser shall pay to Seller upon Seller’s request, any 

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amount by which the Reserve Account exceeds the Required Reserve Amount. Purchaser may charge the Reserve Account for any amounts accrued and unpaid from Seller to Purchaser.

4.Notice of Assignment and Lock Box. Purchaser may notify any Account Debtor obligated with respect to any Account that the underlying Account has been assigned to Purchaser by Seller and that payment thereof is to be made to the order of and directly and solely to Purchaser. All Invoices for Accounts sent by Seller to Account Debtors shall contain on the face of the Invoice the following legend: “This account is assigned and payable only to LSQ Funding Group, L.C. Payments should be sent to LSQ at: P.O. Box 743451, Los Angeles, CA 90074-3451.”

5.Authorization for Purchases. Purchaser is authorized to purchase Accounts upon instructions received from any authorized representative designated by Seller.

6.Fees. Seller shall pay to Purchaser throughout the Term or any Renewal Term of this Agreement, the Invoice Purchase Fee, the Funds Usage Fee and the Aging and Collection Fee, on the date(s) that each Fee is due and payable as provided as set forth in Sections 1.2, 1.13, and 1.15 herein.

7.Other Charges and Expenses.  Seller shall reimburse Purchaser $15.00 for wire fees and the actual field examination fees directly incurred by Purchaser in the administration of this Agreement. Reimbursable expenses are due at the time of payment of the applicable fees or expenses by Purchaser and may be charged to the Reserve Account.

8.Repurchase Of Accounts.  Seller shall immediately on demand by Purchaser repurchase any Purchased Account that Purchaser determines at any time is uncollectible for any reason or is otherwise no longer an Eligible Account and on such demand shall pay to Purchaser the then unpaid Face Amount of the Account, together with any accrued but unpaid fees relating to the Account.  Purchaser shall retain its security interest in any Account repurchased by Seller.

9.Security Interest. To secure payment and performance of all present and future obligations of Seller to Purchaser, Seller grants to Purchaser a continuing first priority (upon entry into an inter-creditor agreement among Purchaser, Ivy Investment Management Company and Gordon Snyder) security interest in and to the Collateral, and authorizes Purchaser to file a UCC-1 in all jurisdictions and offices Purchaser deems appropriate which names Seller as the debtor and covering the Collateral.

10.Clearance Days.  Clearance Days will be added to the date on which Purchaser receives any payment before such payment is credited to reduce outstanding amounts due hereunder.

11.Authorization to Purchaser. Seller authorizes Purchaser, at Seller’s expense, to exercise the following powers until Purchaser has been paid in full: (a) receive, take, endorse, assign, deliver, accept and deposit, in the name of Purchaser or Seller, proceeds of any Collateral; (b) take or bring, in the name of Purchaser or Seller, all steps, actions, suits or proceedings deemed by Purchaser necessary or desirable to effect collection of all Collateral; (c) file any claim under any bond or under any trust fund; (d) pay any sums necessary to discharge any lien, claim, or encumbrance which is senior to Purchaser’s security interest in any assets of Seller, which sums shall be included as obligations of Seller and which shall accrue the Late Charge and be 

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immediately due and payable; (e) notify any Payor obligated with respect to any Account, that the underlying Account has been assigned to Purchaser by Seller and that payment thereof is to be made to the order and directly and solely to Purchaser; (f) communicate directly with Seller’s Payors to verify the amount and validity of any Account created by Seller; and (g) endorse and deposit on behalf of Seller any checks tendered by an Account Debtor “in full payment” of its obligation to Seller.

12.ACH Authorization. Purchaser may process electronic debit or credit entries through the ACH system to any deposit account of Seller.

13.Covenants By Seller.

13.1After written notice by Purchaser to Seller, and automatically, without notice following an Event of Default, Seller shall not (a) grant any extension of time for payment of any of its Accounts, (b) compromise or settle any of its Accounts for less than the full amount, (c) release in whole or in part any Account Debtor, or (d) grant credits, discounts, allowances, deductions, or return authorizations for any Accounts, in each case, except as set forth in Seller’s Master Distribution Agreements (provided that no such agreement may do any of the foregoing with respect to any amount owing under an Account or any invoice already issued by Seller with respect to an Account).

13.2Seller must keep at its principal place of business for a period of five years all books of account and business records customary for the industry, which books and records are subject to inspection by Purchaser and its agents and representatives during normal business hours. Purchaser or its designee shall have access, during reasonable business hours if prior to an Event of Default and at any time if on or after an Event of Default, to all premises where Collateral is located for the purposes of inspecting (and removing, if after the occurrence of an Event of Default) any of the Collateral, and Seller shall permit Purchaser or its designee to make copies of such books and records as Purchaser may request.

13.3Seller must give Purchaser 5 business days’ prior written notice of any change to its present name, the address of its headquarters or where its books and records are located, and any change to its form or jurisdiction of organization.

13.4Seller shall pay when due all of its payroll and other taxes, and shall provide proof of payment to Purchaser.

13.5Seller shall not create, incur, or permit the existence of any lien upon any Collateral without prior consent of Purchaser.

13.6Seller shall provide Purchaser, within 2 business days of receipt by Seller, copies of any business or legal notices, summonses, complaints, or other proceedings received by Seller.

13.7Seller shall pay to Purchaser on the next banking day following the date of receipt by Seller the amount of (a) any payment on account of a Purchased Account; and (b) after the occurrence of an Event of Default, any payment on account of any Account.

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14.Account Stated. Purchaser shall make available to Seller a statement setting forth the transactions arising hereunder. Each statement shall be considered correct and binding upon Seller as an account stated, except to the extent that Purchaser receives, within 30 days after the availability of such statement, written notice from Seller of any specific exceptions by Seller to that statement, and then it shall be binding against Seller as to any items to which it has not objected.

15.Account Disputes. Seller shall notify Purchaser of, and at Purchaser’s request, shall settle all disputes concerning any Purchased Account, at Seller’s sole cost and expense. Seller shall not, without Purchaser’s prior consent, compromise or adjust a Purchased Account or grant any additional discounts, allowances or credits on a Purchased Account. Purchaser may attempt to settle, compromise, or litigate any dispute upon such terms, as Purchaser in its sole discretion deems advisable.

16.Representation and Warranties. Seller represents and warrants that (a) Seller is fully authorized to enter into this Agreement; (b) this Agreement constitutes a legal and valid obligation that is binding upon Seller and that is enforceable against it; (c) Seller is in good standing in the state of its organization; (d) there are no pending actions, suits, or other legal proceedings of any kind (whether civil or criminal) now pending (or, to its knowledge, threatened) against Seller, the adverse result of which would in any material respect affect its property or financial condition, or threaten its continued operations; (e) Seller has not conducted business under or used any other name, whether legal or fictitious; (f) the Purchased Accounts are and will remain bona fide existing obligations created by the sale and delivery of goods or services in the ordinary course of its business, and are unconditionally owed and will be paid to Purchaser without defenses, disputes, offsets, counterclaims, or rights of return or cancellation; and (g) Seller has not received notice of actual or imminent bankruptcy, insolvency, or material impairment of the financial condition of any applicable Account Debtor regarding Purchased Accounts.

17.Indemnification. Seller agrees to indemnify Purchaser and save it harmless against any suits, claims, liabilities, demands and expenses, including but not limited to, any loss arising out of the assertion of any Avoidance Claim, and shall pay to Purchaser on demand the amount thereof including attorneys’ fees and expenses, resulting from or arising under this Agreement. With respect to an Avoidance Claim, Seller shall notify Purchaser within two (2) business days of Seller’s becoming aware of the assertion of an Avoidance Claim. This provision shall survive termination of this Agreement.

18.Disclaimer of Liability. Purchaser will not be liable to Seller for any lost profits, lost savings or other consequential, incidental, punitive, or special damages resulting from or arising out of or in connection with this Agreement.

19.Default and Events of Default.  The following events will constitute an Event of Default hereunder: (a) receipt by Seller or a third party of a Purchased Account which is not paid to Purchaser within three (3) business days following the date of Seller’s receipt or knowledge of receipt by such third party; (b) Seller defaults in the payment of any obligations hereunder; (c) breach by Seller in the performance of any provision of this Agreement, (d) any warranty or representation contained herein proves to be false in any way, howsoever minor, when made 

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under this Agreement; (e) Seller or any guarantor of the obligations becomes subject to any debtor-relief proceedings; (f) any guarantor fails to perform or observe any of the guarantor’s obligations to Purchaser or shall notify Purchaser of its intention to rescind, modify, terminate or revoke any guaranty, or any guaranty shall cease to be in full force and effect for any reason whatever.

19.1SELLER WAIVES ANY REQUIREMENT THAT PURCHASER INFORM SELLER BY AFFIRMATIVE ACT OR OTHERWISE OF ANY ACCELERATION OF SELLER’S OBLIGATIONS. PURCHASER’S FAILURE TO CHARGE OR ACCRUE INTEREST OR FEES AT ANY “DEFAULT” OR “PAST DUE” RATE SHALL NOT BE DEEMED A WAIVER BY PURCHASER OF ITS CLAIM.

19.2Upon the occurrence of any Event of Default, in addition to any rights Purchaser has under this Agreement or applicable law, Purchaser may immediately terminate this Agreement, at which time all obligations shall immediately become due and payable without notice.

20.Amendment and Waiver. Only a writing signed by all parties may amend this Agreement. No failure or delay in exercising any right shall impair any right that Purchaser has, nor shall any waiver by Purchaser be deemed a waiver of any default or breach occurring subsequently. Purchaser’s rights and remedies are cumulative and not exclusive of each other or of any rights or remedies that Purchaser would otherwise have.

21.Term and Termination Date.  This Agreement will be effective when executed by the Parties, will continue in full force and effect for 1 year thereafter (the “Term”), and shall be further extended automatically annually (the “Renewal Term”), unless Seller provides written notice of its intention to terminate at least 60 days and not greater than 90 days prior to each anniversary date. Notwithstanding the preceding sentence, such termination shall not occur and the Agreement shall continue as if no notice was given unless, on the termination date, Seller has fully repaid Purchaser all monies due, and delivered to Purchaser the release as required by Section 22 below.

21.1If effective notice by Seller under Section 21 above is not provided, then in addition to any other fees due under this Agreement, Seller agrees that it will pay an early termination fee equal to 0.75% multiplied by the Maximum Amount set forth in Section 1.17 herein multiplied by the number of months remaining in the Term or any Renewal Term (the “Early Termination Fee”).

21.2Notwithstanding Section 21.1, if Seller was referred to Purchaser by a bank or other institution and intends to refinance with such bank its obligations under this Agreement, Seller may terminate this Agreement prior to the end of the Term or any Renewal Term by providing Purchaser 60 days’ prior written notice and refinancing with referring bank or institution. If such notice is provided and Seller refinances with the referring bank or other institution, no Early Termination Fee pursuant to Section 21.1 shall be due.

21.3If Seller refinances its obligations under this Agreement with the bank that referred Seller to Purchaser without providing notice as required under Section 21.2, Seller may 

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terminate this Agreement prior to the end of the Term or any Renewal Term by paying an early termination fee equal to 1.5% multiplied by the Maximum Amount set forth in Section 1.17.

21.4Purchaser may terminate this Agreement at any time by giving Seller 30 days’ prior written notice of termination, whereupon this Agreement shall terminate on the earlier date of 30 days thereafter or the end of the then current Term or Renewal Term, upon which termination date Seller shall fully repay to Purchaser all monies due and deliver to Purchaser the release as required under  Section 22 below; provided that, if Purchaser for any reason, in good faith, deems itself insecure with respect to the prospect of repayment or performance of any obligations hereunder, such 30 day period shall not apply.

22.No Lien Termination without Release.  Notwithstanding payment in full of all obligations by Seller, Purchaser shall not be required to record any termination or satisfaction of its liens on the Collateral unless and until Seller and any guarantors deliver to Purchaser a general release.  Seller understands that this provision constitutes a waiver of its rights under §9-513 of the UCC.

23.Conflict. Unless otherwise expressly stated in any other agreement between Purchaser and Seller, if a conflict exists between the provisions of this Agreement and the provisions of such other agreement, the provisions of this Agreement shall control.

24.Severability. In the event any one or more of the provisions contained in this Agreement is held to be invalid, illegal or unenforceable in any respect, then such provision shall be ineffective only to the extent of such prohibition or invalidity, and the validity, legality, and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby.

25.Expenses. In addition to those Expenses set forth in Section 7 herein, Seller agrees to reimburse Purchaser the actual amount of all costs and expenses, including attorneys’ fees and expenses, which Purchaser may incur (a) protecting, preserving or enforcing any lien, security or other right granted by Seller to Purchaser or arising under applicable law, whether or not suit is brought, including but not limited to the defense of any Avoidance Claims or the defense of Purchaser’s lien priority; (b) for travel and attorneys’ fees and expenses incurred in complying with any subpoena or other legal process in any way relating to Seller; and (c) for the actual amount of all costs and expenses, including attorneys’ fees, which Purchaser may incur in enforcing this Agreement, or in connection with any federal or state insolvency proceeding commenced by or against Seller or any Account Debtor, including those (i) arising out of an automatic stay, (ii) seeking dismissal or conversion of a bankruptcy proceeding or (ii) opposing confirmation of Seller’s plan thereunder. All Expenses will be subtracted from the Reserve Account and are payable by Seller upon demand by Purchaser. This provision shall survive termination of this Agreement.

26.Entire Agreement. This Agreement supersedes all prior or contemporaneous agreements and understandings between the parties, verbal or written, express or implied, relating to the subject matter hereof. No promises of any kind have been made by Purchaser or any third party to induce Seller to execute this Agreement. No course of dealing, course of performance, or trade 

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usage, and no parol evidence of any nature, shall be used to supplement or modify any terms of this Agreement.

27.Choice of Law.  This Agreement shall be governed by, construed under, and enforced in accordance with the internal laws of the Chosen State.

28.Jury Trial Waiver.  IN RECOGNITION OF THE HIGHER COSTS AND DELAY WHICH MAY RESULT FROM A JURY TRIAL, THE PARTIES HERETO WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION (a) ARISING HEREUNDER, OR (b) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY FURTHER WAIVES ANY RIGHT TO CONSOLIDATE ANY SUCH ACTION IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

29.Venue: Jurisdiction. The parties agree that any suit, action, or proceeding arising out of the subject matter or the interpretation, performance, or breach of this Agreement, shall, if Purchaser so elects, be instituted in any courts of the Chosen State or those located in Orange County, Florida (each an “Acceptable Forum”). Each Party agrees that the Acceptable Forums are convenient to it, and each Party irrevocably submits to the jurisdiction of the Acceptable Forums, irrevocably agrees to be bound by any judgment rendered in connection with this Agreement, and waives any and all objections to jurisdiction or venue that it may have under the laws of the Acceptable Forums or otherwise in those courts in any such suit, action, or proceeding. Should such proceeding be initiated in any other forum, Seller waives any right to oppose any motion or application made by Purchaser as a consequence of such proceeding having been commenced in a forum other than an Acceptable Forum.

30.Counterparts. This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if all signatures were upon the same instrument. Delivery of an executed counterpart of the signature page to this Agreement by facsimile or other electronic means shall be effective as delivery of a manually executed counterpart of this Agreement, and any Party delivering such an executed counterpart of the signature page to this Agreement by such means to any other Party shall thereafter also promptly deliver a manually executed counterpart of this Agreement to such other Party, provided that the failure to deliver such manually executed counterpart shall not affect the validity, enforceability, or binding effect of this Agreement.

31.Notice. All notices required to be given to any Party shall be deemed given upon the first to occur of (i) transmittal sent by commercial overnight carrier, (ii) transmittal by electronic 

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means to a receiver under the control of such Party; or (iii) actual receipt by such Party or an employee or agent of such Party. Notices shall be sent to the following addresses, or to such other addresses as each such Party may in writing hereafter indicate:

	
PURCHASER:
	
LSQ Funding Group, L.C.
2600 Lucien Way, Suite 100
Maitland, FL 32751
Officer: William Samelson, wsamuelson@lsg.com

	
SELLER:
	
Marrone Bio Innovations, Inc.
1540 Drew Avenue
Davis, CA 95618
Officer: Pam Marrone, pmarrone@marronbio.com (email)

32.Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

33.Confidentiality and Nondlsclosure. The Parties agree that the terms of this Agreement, all business methods and trade secrets, and any and all other records and information clearly and specifically identified by the applicable Party as confidential will be held in strict confidence and treated as the confidential property of the other Party. A Party will not, except in the due performance of its duties or the enforcement of its rights under this Agreement, disclose any of the foregoing to any person, unless specifically authorized to do so in writing by the other Party or unless required by law. The provisions of this Section shall survive the termination of this Agreement.

LSQ FUNDING GROUP, LC.

 

 

 

By /s/ William M. Samuelson

Name: William M. Samuelson

Title:    EVP

Date:    March 24, 2017

 

LSQ FUNDING GROUP, LC.

 

 

 

By /s/ Pamela G. Marrone

Name: Pamela G. Marrone

Title:   CEO & Founder

Date:   March 20, 2017

 

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