Document:

Exhibit

WAIVER AND FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT

THIS WAIVER AND FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT (the “Amendment”) is made and entered into as of the 25th day of June, 2019, by and among INNOVATUS LIFE SCIENCES LENDING FUND I, LP, a Delaware limited partnership (“Innovatus”), as collateral agent (in such capacity, together with its successors and assigns in such capacity, “Collateral Agent” and a Lender and EAST WEST BANK (“Bank” collectively, with Innovatus, “Lender”) and BIONANO GENOMICS, INC., a Delaware corporation (“Borrower”).

W I T N E S S E T H:

WHEREAS, Borrower, Agent and Lender have entered into that certain Loan and Security Agreement dated as of March 14, 2019 (as the same has been amended, supplemented or otherwise modified to date, including hereby the “Loan Agreement”); 

WHEREAS, Borrower has requested that Lender waive certain defaults and make certain amendments to the Loan Agreement; and

WHEREAS, Lender has agreed to waive such defaults and make such amendments subject to the terms and conditions of this Amendment.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto agree as follows:

1.Definitions.  All capitalized terms not otherwise defined herein are used herein with the respective definitions given them in the Loan Agreement.

2.  Waiver; Effect of Waiver.  Subject to the terms and conditions of this Amendment, Lender hereby waives the Defaults and Events of Default arising from Borrower’s failure to comply with the requirements of Section 6.6(a) of the Loan Agreement to maintain all of its and its Domestic Subsidiaries’ domestic depository and operating accounts with Bank and subject to a Control Agreement in favor of, and in form and content acceptable to, Collateral Agent on or prior to the date that is 90 days after the Effective Date. The specific waiver contemplated hereby does not constitute a waiver of any provision of the Loan Documents other than as expressly set forth herein, whether now existing or hereafter arising.  Neither this Amendment nor any other indulgences that may have been granted to Borrower by Lender shall constitute a course of dealing or otherwise obligate Lender to modify, expand or extend the agreements contained herein, to agree to any other amendments to the Loan Agreement or to grant any consent to, waiver of or indulgence with respect to any other noncompliance with any provision of the Loan Documents.

3.Amendments to Loan Agreement.  

(a)Section 6.6(a) (Operating Accounts) of the Loan Agreement is hereby amended and restated as follows:

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(a)    From and after July 31, 2019, Borrower shall maintain its, and its Domestic Subsidiaries’, domestic depository and operating accounts with Bank, subject to a Control Agreement in favor of, and in form and content acceptable to, Collateral Agent; provided, however, until July 31, 2019, all Collateral Accounts maintained with any bank or financial institution shall be subject to one or more Control are in such form and substance as are acceptable to Collateral Agent.

(b)Section 13 of the Loan Agreement is hereby amended as follows:
(i)    The definition of “Permitted Indebtedness” therein is hereby amended by (A) deleting the word “and” at the end of clause (g) thereof; (B) deleting the period at the end of clause (h) thereof and replacing it with “; and” and (C) adding a new clause (i) thereof as follows:
(i)    Indebtedness consisting of credit cards in an aggregate amount not to exceed $150,000 at any time outstanding.
(ii)    The definition of “Permitted Liens” therein is hereby amended by (A) deleting the word “and” at the end of clause (i) thereof; (B) deleting the period at the end of clause (j) thereof and replacing it with “; and” and (C) adding a new clause (k) thereof as follows:
(k)    Liens securing Indebtedness permitted under clause (i) of the definition of “Permitted Indebtedness”.
4.    Conditions.  Notwithstanding any other provision of this Amendment and without affecting in any manner the rights of Lender hereunder, it is understood and agreed that this Amendment shall not become effective, and Borrower shall have no rights under this Amendment, until the following conditions have been satisfied:

(a)    Borrower and Lender shall have executed and delivered a counterpart of this Amendment;
(b)    each of the representations and warranties of Borrower contained in Sections 5 and 7 below shall be true and correct in all material respects as of the date hereof (except to the extent that such representations and warranties relate solely to an earlier date).
5.    Authorization.  To induce Lender to enter into this Amendment, Borrower hereby represents and warrants to Lender that it has taken all necessary organizational action to authorize the execution and delivery of this Amendment and its performance of this Amendment and the Loan Agreement, as amended by this Amendment.  This Amendment constitutes a legal, valid and binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).  This Amendment has been duly executed and delivered on behalf of Borrower.  

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6.    Ratification and Reaffirmation.  Borrower hereby ratifies and reaffirms all of its covenants, duties, indebtedness and liabilities under the Loan Documents to which it is a party.

7.    Representations and Warranties.  Borrower hereby represents and warrants to Lender that the representations and warranties contained in the Loan Agreement and the other Loan Documents are true and correct in all material respects on and as of the date hereof, except for representations and warranties that expressly relate to an earlier date, which remain true and correct in all material respects as of said earlier date. 

8.    Certain References.  Each reference to the Loan Agreement in any of the Loan Documents shall be deemed to be a reference to the Loan Agreement, as amended by this Amendment.  

9.    Costs and Expenses.  Borrower agrees to promptly pay all costs and expenses of Lender actually incurred in connection with the preparation, negotiation and execution and delivery of this Amendment and the other agreements and documents executed and delivered in connection herewith, including, without limitation, the reasonable fees and expenses of counsel for Lender with respect thereto.

10.    Binding Nature.  This Amendment shall be binding upon and inure to the benefit of the parties hereto, their respective successors, successors-in-titles, and assigns.

11.    GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

12.    Effect of Amendment.  Except as set forth expressly herein, all terms of the Loan Agreement, as amended hereby, and the other Loan Documents shall be and remain in full force and effect and shall constitute the legal, valid, binding and enforceable obligations of Borrower to Lender.  The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of Lender under the Loan Agreement or the other Loan Documents, nor constitute a waiver of any provision of the Loan Agreement or the other Loan Documents.  This Amendment shall constitute a Loan Document for all purposes of the Loan Agreement.

13.    No Novation.  This Amendment is not intended by the parties to be, and shall not be construed to be, a novation of the Loan Agreement or an accord and satisfaction in regard thereto.

14.    Counterparts.  This Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, each of which shall be deemed an original and all of which, taken together, shall be deemed to constitute one and the same instrument.  Delivery of an executed counterpart of this Amendment by facsimile transmission or by electronic mail in pdf form shall be as effective as delivery of a manually executed counterpart hereof.

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15.    Entire Understanding.  This Amendment sets forth the entire understanding of the parties with respect to the matters set forth herein, and shall supersede any prior negotiations or agreements, whether written or oral, with respect thereto.

[Signature Pages Follow]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their duly authorized representatives as of the date first above written.

BORROWER:

BIONANO GENOMICS, INC.

By:     /s/ R. Erik Holmlin, Ph.D.            
Name:    R. Erik Holmlin, Ph.D.        
Title: CEO                    

Signature Page to Waiver and Second Amendment to Loan Agreement

COLLATERAL AGENT AND LENDER:

INNOVATUS LIFE SCIENCES LENDING FUND I, LP

By:  Innovatus Life Sciences GP, LP, its general partner

By: /s/ Andrew Dym            
Name: Andrew Dym            
Title: Authorized Signatory        

EAST WEST BANK:

EAST WEST BANK

By:     /s/ James Tai                
Name: James Tai                
Title: Managing Director / Head of Life Sciences

Signature Page to Waiver and First Amendment to Loan and Security AgreementExhibit

Execution Version

AMENDMENT TO AMENDED AND RESTATED 
SUPPLY AND OFFTAKE AGREEMENT
This AMENDMENT TO AMENDED AND RESTATED SUPPLY AND OFFTAKE AGREEMENT (this “Amendment”) is made and entered into as of June 20, 2019, by and among Par Hawaii Refining, LLC f/k/a Hawaii Independent Energy, LLC (the “Company”), Par Petroleum, LLC (the “Guarantor”) and J. Aron & Company LLC (“Aron”) (each referred to individually as a “Party” and collectively, the “Parties”).
RECITALS
A.    The Company owns and operates a crude oil refinery and related assets located in Kapolei, Hawaii (the “Refinery”) for the processing and refining of crude oil and other feedstocks and the recovery therefrom of refined products.
B.    The Parties have entered into an Amended and Restated Supply and Offtake Agreement, dated as of December 21, 2017 (as from time to time amended, modified, supplemented, extended, renewed and/or restated, the “S&O Agreement”), pursuant and subject to which Aron has agreed to supply crude oil to the Company to be processed at the Refinery and purchase refined products from the Company produced at the Refinery. 
C.    The Parties have agreed to amend the S&O Agreement pursuant to the terms set forth herein.
AGREEMENTS
NOW, THEREFORE, in consideration of the foregoing premises, the mutual promises and covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, subject to the terms and conditions hereinafter set forth, agree as follows:
		
	Section 1
	Definitions; Interpretation

Section 1.1    Defined Terms.  All capitalized terms used in this Amendment (including in the Recitals hereto) and not otherwise defined herein shall have the meanings assigned to them in the S&O Agreement.
Section 1.2    Interpretation.  The rules of construction set forth in Section 1.2 of the S&O Agreement shall be applicable to this Amendment and are incorporated herein by this reference.
		
	SECTION 2
	Amendment

Section 2.1    Amendment to S&O Agreement.  Upon the effectiveness of this Amendment:
(a)    Section 1.1 of the S&O Agreement is hereby amended by inserting, in the appropriate alphabetical order, the following new definition:
“HECO Entities” means, collectively, (i) Hawaiian Electric Co., Inc., (ii) Maui Electric Company, Ltd. and (iii) Hawaii Electric Light Company, Inc.
“HECO Parent” means Hawaiian Electric Industries, Inc.
(b)    Section 1.1 of the S&O Agreement is hereby amended by amending and restated each of the following existing definitions:
“Included Utility” means Kauai Island Utility Cooperative.
(c)    Clause (w)(I) of the definition of “Eligible Receivables” in Section 1.1 of the S&O Agreement is hereby amended and restated in its entirety to read as follows:
(I)    the aggregate amount of such Accounts owing by a single account debtor does not constitute more than twenty-five percent (25%) of the sum of all Eligible Receivables (but the portion of the Accounts not in excess of such percentage shall be deemed Eligible Receivables); provided that with respect to the HECO Entities, (x) at all times HECO Parent maintains an Investment Grade Rating, the aggregate amount of such Accounts owing by the HECO Entities does not constitute more than forty percent (40%) of the sum of all Eligible Receivables and (y) at all times HECO Parent does not maintain an Investment Grade Rating, the aggregate amount of such Accounts owing by the HECO Entities does not constitute more than twenty-five (25%) of the sum of all Eligible Receivables.
(d)    Section 11.8 of the S&O Agreement is hereby amended by deleting the proviso immediately following subsection (c) thereof.
(e)    The Schedules attached to the S&O Agreement are hereby amended by replacing the Schedule D attached to the S&O Agreement with the Schedule D attached hereto.
Section 2.2    References Within S&O Agreement.  Each reference in the S&O Agreement to “this Agreement” and the words “hereof,” “hereto,” “herein,” “hereunder,” or words of like import, and each reference in any other Transaction Document to “the S&O Agreement” and the words “thereof,” “thereto,” “therein,” “thereunder” or words of like import, in each case, shall mean and be a reference to the S&O Agreement as heretofore amended and as amended by this Amendment. 
		
	SECTION 3
	Representations and Warranties

To induce the other Party to enter into this Amendment, each Party hereby represents and warrants that (i) it has the corporate, governmental or other legal capacity, authority and power to execute this Amendment, to deliver this Amendment and to perform its obligations under the S&O Agreement, as amended hereby, and has taken all necessary action to authorize the foregoing; (ii) the execution, delivery and performance of this Amendment does not violate or conflict with any law applicable to it, any provision of its constitutional documents, any order or judgment of any court or Governmental Authority applicable to it or any of its assets or subject; (iii) all governmental and other consents required to have been obtained by it with respect to this Amendment have been obtained and are in full force and effect; (iv) its obligations under the S&O Agreement, as amended hereby, constitute its legal, valid and binding obligations, enforceable in accordance with its terms (subject to applicable bankruptcy, reorganization, insolvency, moratorium or similar laws affecting creditors’ rights generally and subject, as to enforceability, to equitable principles of general application regardless of whether enforcement is sought in a proceeding in equity or at law) and (v) no Event of Default with respect to it has occurred and is continuing.
		
	SECTION 4
	Reaffirmation

All of the terms and provisions of the S&O Agreement shall, as amended and modified hereby, remain in full force and effect. Each of the Company and the Guarantor hereby agrees that the amendments and modifications herein contained shall in no manner affect (other than expressly provided herein) or impair the Obligations or the Liens securing the payment and performance thereof. Each of the Company and the Guarantor hereby ratifies and confirms all of its respective obligations and liabilities under the Transaction Documents to which it is a party, as expressly modified herein, and the Guarantor ratifies and confirms that such obligations and liabilities extend to and continue in effect with respect to, and continue to guarantee the Obligations of the Company under the Transaction Documents, as expressly modified herein.
		
	SECTION 5
	Miscellaneous

Section 5.1    S&O Agreement Otherwise Not Affected.  Except for the amendments pursuant hereto, the S&O Agreement remains unchanged.  As amended pursuant hereto, the S&O Agreement remains in full force and effect and is hereby ratified and confirmed in all respects.  The execution and delivery of, or acceptance of, this Amendment and any other documents and instruments in connection herewith by either Party shall not be deemed to create a course of dealing or otherwise create any express or implied duty by it to provide any other or further amendments, consents or waivers in the future.  For all purposes of the S&O Agreement and the other Transaction Documents, this Amendment shall constitute a “Transaction Document.”
Section 5.2    No Reliance.  Each Party hereby acknowledges and confirms that it is executing this Amendment on the basis of its own investigation and for its own reasons without reliance upon any agreement, representation, understanding or communication by or on behalf of any other Person.
Section 5.3    Binding Effect.  This Amendment shall be binding upon, inure to the benefit of and be enforceable by the Company, Aron and their respective successors and assigns.
Section 5.4    Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY, CONSTRUED AND ENFORCED UNDER THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ITS CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER STATE.
Section 5.5    Amendments.  This Amendment may not be modified, amended or otherwise altered except by written instrument executed by the Parties’ duly authorized representatives.
Section 5.6    Effectiveness; Counterparts.  This Amendment shall be binding on the Parties as of the date on which it has been fully executed by the Parties. This Amendment may be executed in any number of counterparts and by different Parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement.
Section 5.7    Interpretation.  This Amendment is the result of negotiations between the Parties and has been reviewed by counsel to each of the Parties, and is the product of all Parties hereto.  Accordingly, this Amendment shall not be construed against either Party merely because of such Party’s involvement in the preparation hereof.
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IN WITNESS WHEREOF, each Party hereto has caused this Amendment to be executed by its duly authorized representative as of the date first above written.

J. ARON & COMPANY LLC

By:    /s/ Harsha V. Rajamani        
Name:    Harsha V. Rajamani            
Title:    Managing Director            

PAR HAWAII REFINING, LLC

By:    /s/ James Matthew Vaughn        
Name:    James Matthew Vaughn        
Title:    Vice President and Secretary        

PAR PETROLEUM, LLC

By:    /s/ James Matthew Vaughn        
Name:    James Matthew Vaughn        
Title:    Vice President and Secretary

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