Document:

EX-10.25

 Exhibit 10.25 

LICENSE AGREEMENT 

This Agreement is entered into between the U.S. Government, as represented by the U.S. Department of Agriculture, Agricultural
Research Service (hereinafter referred to as “USDA”) and Marrone Organic Innovations, Inc., a Delaware corporation having offices at 215 Madison Place, Suites B/C, Davis, California (hereinafter referred to as “MOI”). 

WHEREAS, USDA has performed research to develop novel strains of Chromobacterium subtsugae useful as biocontrol agents
for insect pests and has received by assignment certain valuable patent rights thereon; and 
 WHEREAS, USDA desires, in the
public interest, that said invention be perfected, marketed, and practiced so that the benefits are readily available for widest possible utilization in the shortest time possible; and 

WHEREAS, MOI represents that it has the facilities, personnel and expertise and is willing to expend reasonable efforts and
resources to bring the invention to the point of practical application; and 
 WHEREAS, USDA is willing to provide
reasonable assistance to MOI to help bring the invention to the point of practical application; 
 NOW, THEREFORE, in
consideration of the foregoing and pursuant to 35 USC 207 and 37 CFR 404 and the mutual promises and obligations hereinafter set forth, USDA and MOI, intending to be legally bound, agree as follows: 

ARTICLE 1 
 DEFINITIONS

 1.1        Licensed Patent means U.S. Patent Application Serial
No. 10,678,023, entitled “Chromobacterium Subtsugae Sp. Nov. and Use for Control of Insect Pests” filed on October 1, 2003, the patent issuing therefrom, and U.S. Patent Application Serial No. I1/704,565, entitled
“Chromobacterium Subtsugae Sp. Nov. and Use for Control of Insect Pests” filed on February 8, 2007, the patent issuing therefrom, and all continuations, divisions, reissues, reexaminations, patent term extensions of such patents, and
any continuations-in-part that have complied with the requirements set forth in 37 CFR 404.7. 

1.2        Licensed Products means any and all compositions or formulations comprising
a strain of Chromobacterium subtsugae. sp. nov. and/or any insecticidally-active metabolite, supernatant, filtrate or extract obtained from a strain of Chromobacterium subtsugae. sp. nov. as covered in whole or in part by a Valid Claim
of the Licensed Patent. 
 1.3        Licensed Method means any and all methods for
controlling insect pests using Licensed Products as covered in whole or in part by a Valid Claim of the Licensed Patent. 

  

			
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 1.4        Licensed Territory means
the United States of America, its possessions and territories. 
 1.5        Net
Sales means the gross sales of Licensed Products by MOI to an independent third party less the sum of the following: 
  

	 	 (a)
	 discounts, in amounts customary in the trade, for quantity purchases, cash payments, wholesalers, and distributors; 

 

	 	 (b)
	 amounts repaid or credited by reason of rejection or returns; and 

 

	 	 (c)
	 any freight or other transportation costs, insurance, duties, tariffs and sales and excise taxes based directly on sales or turnover or delivery of
material produced under this Agreement. 

 No deductions shall be made for commissions paid to sales persons or agents or
for the cost of collections. Licensed Products produced by MOI for its own use shall be included for the purposes of computing Net Sales, except such Licensed Products used for non-revenue producing activity such as promotional items or market
trials. Licensed Products shall be considered sold when billed or invoiced. 

1.6        Prorated Share means the total fees and expenses incurred by USDA for
prosecuting and maintaining the Licensed Patent in the Licensed Territory divided by the number of licensees. 

1.7        Valid Claim means a claim of any unexpired United States Patent or Patent
Application included within the definition of the Licensed Patent that shall not have been withdrawn, canceled or disclaimed nor held invalid by a court of competent jurisdiction in an unappealed or unappealable decision. For the purposes of this
Agreement, all pending and issued claims of the Licensed Patent shall be considered valid and enforceable unless and until either otherwise adjudicated by a court of competent jurisdiction or otherwise declared by the United States Patent and
Trademark Office. 
 1.8        First Commercial Sale means the initial transfer by
or on behalf of MOI or its sublicensees of Licensed Products or product made by the Licensed Method in exchange for cash. 

1.9        Effective Date means the later date on which this Agreement is executed by
a party to the Agreement. 
 ARTICLE II 

GRANT 

2.1        USDA grants to MOI, subject to the terms and conditions herein, a
co-exclusive license in the Licensed Territory under the Licensed Patent to practice the Licensed Method and 

			
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to make, have made, use, have used, sell and have sold Licensed Products for the term of this Agreement. USDA shall grant no more than two (2) licenses under the Licensed Patent in the
Licensed Territory for the term of the Agreement. 
 2.2        USDA grants to MOI
the right to grant sublicenses subject to the provisions of this Agreement and to the prior submission to and approval by USDA of the proposed sublicense, which approval shall not be unreasonably withheld. All sublicenses shall make reference to
this Agreement, including the rights retained by the U.S. Government in accordance with the provisions of Article III below. MOI shall provide USDA with a copy of all sublicense agreements. 

ARTICLE III 
 RESERVATION
OF RIGHTS 
 3.1        The licenses granted in Article II above are subject to
the reservation by USDA of an irrevocable, nonexclusive, nontransferable, royalty-free license for the practice of the Licensed Patent throughout the world by or on behalf of the U.S. Government, and on behalf of any foreign government pursuant to
any existing or future treaty or agreement to which the United States is a signatory, including the right to engage in research, either alone or with one or more third parties, on inventions covered by the Licensed Patent. 

3.2        USDA reserves the right to require MOI to grant sublicenses to responsible
applicants, on reasonable terms, under any of the following circumstances: 
  

	 	 (a)
	 such grant is necessary to fulfill health or safety needs; or 

 

	 	 (b)
	 such grant is necessary to ensure that a specific commercial use for the Licensed Patent, which is not being actively brought to practical
application by MOI in the United States, is made available for utilization by the United States public. 

 ARTICLE IV

 FEES, ROYALTIES, AND PAYMENTS 

4.1        MOI shall pay to USDA a license execution fee of [*****], no part of which
shall be refunded for any reason. Payment of such fee shall be due within thirty (30) days of the Effective Date. 

4.2        MOI shall pay to USDA an annual license maintenance fee in accordance with
the following schedule: 
  

							
	 	 	 Date
	    	 Amount
	 	 
		 	 March 1, 2008
	    	 [*****]
	 	
		 	 March 1, 2009
	    		 	
		 	 March 1, 2010
	    		 	
		 	 March 1, 2011
	    		 	
		 	 March 1, 2012
	    		 	

  

	 [*****]
	 Confidential portions of this document have been redacted and filed separately with the Securities and Exchange Commission 

			
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 An annual maintenance fee of [*****] shall be due on March 1 of each calendar year
thereafter for the term of the Agreement. The annual license maintenance fee shall be credited against royalties owed to USDA under Paragraph 4.3 below during the same calendar year. The annual license maintenance fee paid in a given calendar year
shall not be credited against royalties owed in subsequent calendar years. No part of the annual license maintenance fee shall be refunded for any reason. 

4.3        MOI shall pay USDA royalties of [*****] on the Net Sales of Licensed
Products by MOI and its sublicensees. Royalties shall be due and payable upon submission of each royalty report, in accordance with the provisions of Paragraph 5.2 below. 

4.4        MOI shall pay to USDA [*****] of any payments, other than royalties payable
under Paragraph 4.3 above, received from a sublicensee as consideration for the rights granted to the sublicensee under the Licensed Patent. Such payments may include, but are not limited to, license execution fees, milestone payments, and license
maintenance fees. Payments specifically committed to further research on Licensed Products are excluded and shall not be considered in this calculation. Any amount due to USDA under this paragraph shall be paid within thirty (30) days of
receipt of such payments to MOI from its sublicensees. 
 4.5        MOI shall pay
to USDA a milestone payment of [*****] within sixty (60) days of receiving a new biopesticide product registration for the Licensed Product from the Environmental Protection Agency (“EPA”). No part of the milestone payment shall be
refunded for any reason. 
 4.6        MOI shall reimburse USDA a Prorated Share of
all fees and expenses, including reasonable legal fees, incurred by USDA in filing, prosecuting and maintaining the Licensed Patent in the Licensed Territory during the term of this Agreement. USDA shall provide MOI a statement of all such fees and
expenses on a quarterly basis, and reimbursement shall be due within thirty (30) days of receipt of such statement. Within thirty (30) days of the Effective Date, MOI shall request that USDA send copies of all official correspondence
relating to the Licensed Patent to MOI. Such official correspondence includes, but is not limited to, patent applications, office actions, responses, notification of fees due. MOI shall have the right to advise USDA as to the conduct of such
prosecution and maintenance, provided, however, that USDA shall have the right to make the final decisions for all matters associated with such prosecution and maintenance. USDA will use reasonable efforts to confer with MOI prior to making any
decisions about patent prosecution and/or payment of fees. 
 4.7        Before any
commitment to expend funds for an extraordinary and unusual procedure for maintaining the Licensed Patent, including but not limited to reissue and reexamination but not including infringement, USDA shall notify MOI of such extraordinary and unusual
procedure and the estimated cost thereof. USDA and MOI agree to use best efforts to reach mutual agreement upon the best course of action. 

  

	 [*****]
	 Confidential portions of this document have been redacted and filed separately with the Securities and Exchange Commission 

			
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 4.8        All payments due USDA
under this Article IV shall be payable in United States dollars for the account of USDA/Agricultural Research Service, License No. 1429-002. All checks and bank drafts shall be drawn on United States banks. A late payment of a license fee or
royalty shall automatically raise said fee or royalty by an amount equal to [*****] of the amount due for each month beyond the due date of such late payment. Conversion of foreign currency to United States dollars shall be made on the last business
day of the applicable reporting period for the purchase of United States dollar bank wire transfers for settlement of such payment obligations. Any and all loss of exchange, value, taxes, or other expenses incurred in the transfer or conversion of
other currency to United States dollars shall be paid entirely by MOI. 
 ARTICLE V 

REPORTS AND RECORDS 

5.1        MOI shall provide written annual reports within sixty (60) days of the
end of each calendar year detailing progress being made to bring the Licensed Patent to practical application. No further annual progress reports will be required after notification of the first commercial sale of Licensed Products unless otherwise
requested by USDA. 
 5.2        After notification of the first commercial sale of
Licensed Products, MOI shall submit to USDA within sixty (60) days after each calendar half year ending June 30th and
December 31st, reports setting forth for the preceding six (6) month period the amount of Licensed Products made, used, or sold or otherwise disposed of by MOI, and its sublicensees, the
Net Sales thereof and the royalties due pursuant to Paragraph 4.3 above. The report shall include an itemized accounting of the number of units of Licensed Products sold, price per unit, and each deduction taken from the gross sales for the purpose
of calculating Net Sales. A written report shall be due for each reporting period whether or not any royalties are due to USDA. 

5.3        MOI, and its sublicensees, shall keep accurate and complete records as are
required for the determination of royalties owed to USDA pursuant to this Agreement. Such records shall be retained for at least five (5) years following a given reporting period. Upon reasonable notice and at the expense of USDA, such records
shall be available during normal business hours for inspection and audit by representatives or agents of USDA for the sole purpose of verifying reports and payments hereunder. Such representatives or agents shall not disclose to USDA any information
other than information relating to the accuracy of reports and payments made under this Agreement. MOI, and its sublicensees, shall provide full cooperation in such inspection and audit. Such cooperation shall include, but not limited to, providing
sufficient time for such examination and convenient access to relevant personnel and records. If an inspection and audit show an underreporting or underpayment in excess of five percent (5%) for any twelve (12) month period, then MOI shall
reimburse USDA for the cost of the inspection at the time MOI pays the unreported royalties, including any late charges as required by Paragraph 4.8 of this Agreement. All payments required under this Paragraph 5.3 shall be due within thirty
(30) days of the date USDA provides MOI notice of the payment due. 

  

	 [*****]
	 Confidential portions of this document have been redacted and filed separately with the Securities and Exchange Commission 

			
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 ARTICLE VI 

LICENSEE PERFORMANCE 

6.1        MOI shall expend reasonable efforts and resources to carry out the
development and marketing plan submitted with MOI’s application for a license and to bring the Licensed Patent to the point of practical application as defined in Title 37 of the Code of Federal Regulations, Section 404.3(d). MOI shall
submit an application for new product registration to EPA within two (2) years of the Effective Date of this Agreement and MOI shall offer Licensed Products for sale within five (5) years of the Effective Date of this Agreement unless this
period is extended by mutual agreement of the parties. USDA shall not unreasonably withhold approval of any request by MOI to extend this period if such request is supported by evidence of reasonable efforts by MOI to bring the Licensed Patent to
practical application, including any reasonable and diligent application for regulatory approvals required by any U.S. Government agency. 

6.2        MOI shall notify USDA in writing within fifteen (15) days after the
first commercial sale of Licensed Products by MOI, or its sublicensees. 

6.3        Licensed Products sold or otherwise disposed of in the United States by
MOI, or its sublicensees, shall be manufactured substantially in the United States unless a waiver is obtained from USDA. 

6.4        After bringing the Licensed Patent to the point of practical application in
the United States, MOI shall keep Licensed Products reasonably available to the United States public during the term of this Agreement. 

ARTICLE VII 
 DURATION,
MODIFICATION, AND TERMINATION 
 7.1        This Agreement shall commence on the
Effective Date and, unless sooner terminated as provided under this Article VII, shall remain in effect until the expiration of the last to expire Licensed Patent. 

7.2        This Agreement may be modified or terminated by USDA, subject to the
provisions of Paragraphs 7.3 and 12.4 below, if it is determined that any one of the following has occurred: 
  

	 	 (a)
	 MOI, or its sublicensees, fails to meet the obligations set forth in Article VI above; 

 

	 	 (b)
	 Such action is necessary to meet requirements for public use specified by Federal regulations issued after the date of this Agreement and such
requirements are not reasonably satisfied by MOI, or one of its sublicensees; 

			
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	 	 (c)
	 MOI has willfully made a false statement or willfully omitted a material fact in the license application or in any report required by this
Agreement; 

  

	 	 (d)
	 MOI, or its sublicensees, commits a substantial breach of a covenant or provision contained in this Agreement; 

 

	 	 (e)
	 MOI has been found by a court of competent jurisdiction to have violated the Federal antitrust laws in connection with its performance under this
Agreement; 

  

	 	 (f)
	 MOI is adjudged bankrupt or has its assets placed in the hands of a receiver or makes any assignment or other accommodation for the benefit of
creditors; or 

  

	 	 (g)
	 MOI, or its sublicensees, misuses the Licensed Patent. 

7.3        Prior to modification or termination of this Agreement, USDA shall furnish
MOI and any sublicensees of record a written notice of intention to modify or terminate, and MOI shall be allowed thirty (30) days after the date of such notice to remedy any breach or default of any covenant or agreement of this Agreement or
to show cause why this Agreement should not be modified or terminated. 

7.4        MOI may terminate this Agreement at any time upon ninety (90) days
written notice to USDA. If MOI terminates this Agreement in accordance with the provisions of this Paragraph 7.4, MOI shall provide USDA with a summary report of the reasons for termination, whether of a business or technical nature, and USDA shall
be free to disclose such information to any third party who contacts USDA concerning a license under the Licensed Patent. 

7.5        Upon termination of this Agreement, all sums that have accrued and are due
to USDA pursuant to Article IV hereunder shall become immediately payable. In all other respects, the rights and obligations of the parties hereto concerning the Licensed Patent included in such termination shall cease as of the effective date of
such termination. MOI may, however, sell all Licensed Products completed and in inventory provided that royalties are paid on any such sales in accordance with the provisions of Article IV. 

7.6        In the event of termination of this Agreement, any sublicense of record
granted pursuant to Paragraph 2.2 may either be converted to a license directly between sublicensee and USDA or be terminated. 
 ARTICLE
VIII 
 PATENT ENFORCEMENT 

8.1        The U.S. Government is not obligated to enforce the Licensed Patent against
infringers. MOI shall continue to make all payments accruing to USDA pursuant to Article IV hereunder until such time as this Agreement is terminated by either party, even if the Government elects not to enforce the Licensed Patent against
infringers. 

			
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 8.2        MOI is granted the first
option at its own expense, in its own name, to enforce the Licensed Patent against a specific party who may be infringing the Licensed Patent, subject to the following conditions: 

 

	 	 (a)
	 The right of enforcement granted under this Paragraph 8.2 shall constitute the rights provided under Title 35, Chapter 29, of the U.S. Code.

  

	 	 (b)
	 If MOI elects the option to enforce the Licensed Patent against a specific party, the Government shall not be entitled to bring an enforcement
action against such party except if it chooses to join with MOI. 

  

	 	 (c)
	 The option is available to all other co-exclusive licensees, and if more than one co-exclusive licensee elects the option against a specific party,
there shall be a joint, not separate, enforcement action in the name of all co-exclusive licensees. 

  

	 	 (i)
	 The cost of enforcement shall be borne by whoever elects the option, and this cost shall be shared equally between all co-exclusive licensees who
elect the option, unless they agree otherwise as to relative shares. 

  

	 	 (ii)
	 After all co-exclusive licensees have been given the opportunity to make the election, USDA shall identify, to each co-exclusive licensee, all
co-exclusive licensees that have elected the option against a specific party. 

  

	 	 (d)
	 Prior to enforcement against a specific party, MOI shall submit a written request to elect the option to enforce the Licensed Patent, and USDA must
approve the election before MOI may bring an enforcement action against such party. Such enforcement actions may include, but are not limited to, notifying such party, either verbally or in writing, to cease and desist the alleged infringing
activity or filing an infringement suit against such party. 

  

	 	 (i)
	 If USDA does not approve the election, and cannot reasonably establish non-infringement, within ninety (90) days of MOI’s request for
approval, MOI shall not be obligated to pay royalties or fees that begin to accrue at the end of the ninety (90) day period. 

  

	 	 (ii)
	 If USDA grants approval after the end of the ninety (90) day period, MOI shall be obligated to pay royalties and fees that accrue beginning
with the day of subsequent approval, but shall not be obligated to pay royalties or fees that previously accrued during the time extending from the end of the ninety (90) day period to the day of subsequent approval. 

			
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	 	 (e)
	 If USDA requests in writing that MOI decide whether to elect the option to enforce the Licensed Patent against a specific party, MOI shall submit
its decision within sixty (60) days of the date of request. In the absence of a written response during the sixty (60) day period, the U.S. Government may enforce the Licensed Patent without MOI. 

 

	 	 (f)
	 All co-exclusive licensees who elect the option against a specific party shall have the right to jointly, but not separately, grant a sublicense to
such party, in lieu of the U.S. Government. 

  

	 	 (i)
	 Co-exclusive licensees who do not elect the option against a specific party shall not have the right to grant a sublicense to such party.

  

	 	 (ii)
	 All such sublicenses shall be subject to approval by USDA, which approval shall not be unreasonably withheld. 

 

	 	 (iii)
	 Each such sublicense shall make reference to this Agreement, and a copy shall be furnished to USDA promptly after its execution.

 8.3        The following disputes, if irreconcilable, between
co-exclusive licensees who have elected the option, shall be submitted by such co-exclusive licensees to binding arbitration at their joint expense: 
  

	 	 (a)
	 Disputes with regard to the terms of sublicenses granted to alleged infringers of the Licensed Patent. 

 

	 	 (b)
	 Disputes as to the terms of settlement with regard to infringement of the Licensed Patent. 

 

	 	 (c)
	 Disputes as to litigation procedure and strategy with regard to the Licensed Patent. 

8.4        The following conditions apply to court awards and sublicensing revenues
and other considerations as to the Licensed Patent, if MOI elects the enforcement option against a specific party. 
  

	 	 (a)
	 MOI is not required to share, with USDA, court awards from such party, but is required to share sublicensing revenues and other considerations from
such party pursuant to Article IV hereunder. 

  

	 	 (b)
	 MOI’s reasonable attorney’s fees for attempting to sublicense or enforce the Licensed Patent against a specific party may be deducted
from payments due to USDA under a sublicense to such party, provided that such reasonable attorney’s fees are not recouped as part of a court award for infringement of the Licensed Patent by such party, and provided that

			
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any such deductions do not exceed fifty percent (50%) of the payments due to USDA during any single reporting period. 

8.5        In the absence of prior written consent from USDA, MOI shall not be
entitled to waive any rights in the Licensed Patent as part of an agreement with a party who may be infringing the Licensed Patent. 

ARTICLE IX 
 MARKING AND
NON-USE OF NAMES 
 9.1        MOI, and its sublicensees, shall mark Licensed
Products or packages containing Licensed Products with all applicable patent numbers. 

9.2        MOI shall not use the name of the U.S. Government, the name of any
department or agency of the U.S. Government, the name of any U.S. Government employee, or any adaptation of the above in any promotional activity without prior written approval from USDA. 

ARTICLE X 

REPRESENTATIONS AND WARRANTIES 

10.1        USDA represents and warrants that the entire right, title and interest in
the Licensed Patent has been assigned to the United States of America as represented by the Secretary of Agriculture and that USDA has the authority to issue licenses under the Licensed Patent. 

10.2        USDA does not warrant the patentability or validity of the Licensed Patent
and makes no representations whatsoever with regard to the scope of the Licensed Patent or that such Licensed Patent may be exploited without infringing other patents. USDA FURTHER MAKES NO WARRANTIES AS TO THE MERCHANTABILITY OR FITNESS OF THE
LICENSED PATENT OR THE LICENSED PRODUCTS FOR ANY PARTICULAR PURPOSE, OR ANY OTHER WARRANTIES EXPRESS OR IMPLIED. 
 ARTICLE XI 

NOTICES 

Written notices and reports required to be given under this Agreement, and submission of license execution and maintenance
fees and royalties, shall be mailed by first class mail, postage prepaid and addressed as follows: 
  

			
	 If to USDA
	  	 If to MOI

		
	 Assistant Administrator

USDA, ARS, Office of Technology Transfer

5601 Sunnyside Avenue, 4-1159

Beltsville, Maryland 20705-5131
	  	 Pamela Marrone, CEO

Marrone Organic Innovations, Inc.

215 Madison Place, Suites B/C

Davis, California 95618

			
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 ARTICLE XII 

MISCELLANEOUS PROVISIONS 

12.1        This Agreement shall not be transferred or assigned by MOI to any party
other than to a successor or assignee of the entire business interest of MOI relating to the Licensed Patent, but in no event shall MOI assign or transfer this Agreement to a party not a citizen or resident of the United States of America. MOI shall
notify USDA in writing prior to any such transfer or assignment. 
 12.2        The
interpretation and application of the provisions of this Agreement shall be governed by the laws of the United States as interpreted and applied by the Federal courts in the District of Columbia. 

12.3        Neither party may waive or release any of its rights or interest in this
Agreement except in writing. The failure of a party to assert a right hereunder or to insist on compliance with any term or condition of this Agreement shall not constitute a waiver of that right or excuse a similar subsequent failure to perform any
such term or condition by the other party. 
 12.4        The parties shall make
every reasonable effort to resolve amicably any dispute concerning a question of fact arising under this Agreement. In accordance with the requirements of 37 CFR 404.11, USDA has established an administrative procedure for resolving disputes not
settled amicably between the parties. Any such disputes shall be decided by the Assistant Administrator, Office of Technology Transfer, Agricultural Research Service (ARS), who shall reduce such decision to writing and mail or otherwise furnish a
copy thereof to MOI. Any decision of the Assistant Administrator, ARS, whether it be a question of fact, or to modify or terminate this Agreement, may be appealed to the Administrator, ARS, whose decision shall be administratively final and
conclusive. This shall not preclude MOI from taking additional legal action once all administrative avenues have been exhausted. Pending final decision of a dispute hereunder, MOI shall proceed diligently with the performance of its obligations
under this Agreement. 
 12.5        Nothing relating to the grant of this license,
nor the grant itself, shall be construed to confer upon MOI or its sublicensees any immunity from or defenses under the antitrust laws or from a charge of patent misuse, and the acquisition and use of rights pursuant to this license shall not be
immunized from the operation of state or Federal law by reason of the source of the grant. 

12.6        The provisions of this Agreement are severable, and the illegality or
invalidity of any provision of this Agreement shall not impair, affect, or invalidate any other provisions of this Agreement. 

12.7        This Agreement constitutes the entire agreement and understanding between
the parties, and neither party shall be obligated by any condition, promise or representation other than those expressly stated herein or as may be subsequently agreed to by the parties hereto in writing. 

			
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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized representatives. 
 FOR THE UNITED STATES DEPARTMENT OF AGRICULTURE: 

 

					
			
	/s/ Richard J. Brenner	 		 	Nov. 9, 2007
	Signature	 		 	Date

 RICHARD J. BRENNER 

Assistant Administrator, Agricultural Research Service 
  

					
			
	 FOR MARRONE ORGANIC INNOVATIONS, INC.:
	 		 	  

			
	/s/ Pamela G. Marrone	 		 	Nov. 13, 2007
	Signature	 		 	Date
	 Name: Pamela G. Marrone
	 		 	
	 Title: CEOEX-10.26

 Exhibit 10.26 

LICENSE AGREEMENT 

THIS LICENSE AGREEMENT (this “Agreement”)
is made and entered into effective as of December 28, 2009 (the “Effective Date”), by and between THE UNIVERSITY OF THE STATE OF
NEW YORK (“USNY”), a New York corporation maintaining offices at State Education Building – Room 121, Albany, New York 12234-1000, and MARRONE
BIO INNOVATIONS, INC. (“MBI”), a Delaware corporation maintaining offices at 2121 Second Street, Ste. B-107, Davis, California 95618. 

ARTICLE 1 
 BACKGROUND

 1.1        USNY has the right and the authority to grant certain
licenses to the patents, patent applications and other inventions listed in Exhibit A. 

1.2        MBI is desirous of obtaining, and USNY wishes to grant to MBI, an
exclusive license to the Licensed Patent Rights (as defined in Section 2.9) and the Technology Rights (as defined in Section 2.15) under the terms and conditions of this Agreement. 

ARTICLE 2 
 DEFINITIONS

 2.1        “Affiliates” means, with respect to a party, any
entity that controls, is controlled by, or is under common control with the party. For the avoidance of doubt, Affiliate, with respect to USNY includes without limitation the New York State Education Department (“NYSED”). 

2.2        “Confidential Technology” means the following:
(a) the detailed culturing (e.g., fermentation) protocols related to the Licensed Product; (b) the specific location in North America where [*****]; (c) detailed protocols (dosage, etc.) used for [*****] by either [*****]; and
(d) detailed protocols for [*****] to achieve higher [*****] than would be achieved by [*****]. 

2.3        “Confidential Information” means, as to either party and
without limitation, such party’s proprietary or confidential items including: Confidential Technology, data, know-how, formulas, compositions, processes, documents, designs, sketches, photographs, plans, graphs, drawings, specifications,
equipment, samples, reports, findings, inventions, ideas and information, including business information related to Licensed Products and the Technology Rights. 

2.4        “Customer” means any purchaser of a Licensed Product other
than USNY, MBI, or a Sublicensee. 
  

	 [*****]
	 Confidential portions of this document have been redacted and filed separately with the Securities and Exchange Commission 

  
 1 

 2.5        “Deductible
Expenses” means the following items of expense incurred in connection with Sales of Licensed Products to the extent paid or allowed by MBI and/or a Sublicensee: (a) sales, use or turnover taxes; (b) excise, value added,
importation or other taxes, custom duties or consular fees; (c) transportation, freight, and handling charges, and insurance on shipments to customers; (d) trade, cash or quantity discounts or rebates to the extent actually granted
(including government-mandated rebates); (e) rebates, refunds, and credits for any rejected or returned Licensed Products or due to billing errors or because of retroactive price reductions, rebates or chargebacks; and (f) uncollected
accounts receivable attributable to Sales of Licensed Products. 

2.6        “Exclusive” means that for the term of this Agreement USNY
will not, in the Field, use or license to any licensee, other than MBI, the Licensed Patents or the Technology Rights. 

2.7        “EPA Registration” means a Section 3 approval by the
United States Environmental Protection Agency of a Licensed Product as a microbial pesticide. 

2.8        “Field” means applications or uses as a pesticide. 

2.9        “Licensed Patents” means: (i) all domestic and
foreign patents and patent applications listed in Exhibit A attached hereto; (ii) all divisionals, continuations, and continuations-in-part of the foregoing patent applications; (iii) all patents that issue on any of the foregoing
patent applications; (iv) all foreign counterparts of the foregoing patents and patent applications; and (v) all reissues, reexaminations, renewals, extensions, and supplementary protection certificates relating to any of the foregoing
patents. Exhibit A may be updated from time to time on mutual agreement. 

2.10        “Licensed Patent Rights” means any and all rights under
the Licensed Patents. 
 2.11        “Licensed Product” means any
product or device that is covered by, or is made by or utilizes a process or material covered by, the Licensed Patent Rights or based on the Technology Rights. 

2.12        “Net Revenues” means the amount received by MBI or a
Sublicensee, in each case for the Sale of a Licensed Product to a Customer, less the Deductible Expenses applicable to such Sale. 

2.13        “Sale” means the sale, transfer, exchange or other
commercial disposition of a Licensed Product, which shall include the use of such Licensed Product in a service performed for a Customer. In case of doubt, Sales of Licensed Products shall be deemed consummated no later than receipt of payment from
a Customer for the applicable transaction involving such Licensed Product. 

2.14        “Sublicensee” shall mean, with respect to a particular
Licensed Product, a third party to which MBI has granted a license or sublicense under any or all of the Licensed Patent Rights and/or any other Technology Rights. 

  
 2 

 2.15        “Technology
Rights” means all ideas, inventions, formulae, processes, trade secrets, know-how, intellectual property, techniques, methods, specifications, practices, data and other forms of information, including the Confidential Technology, relating
to the processes, methods and techniques for manufacturing, formulating and using the Licensed Patent Rights or relating to the Licensed Products, whether patentable or not and whether or not reduced to practice, including Licensed Patent Rights and
registration data, in each case owned or licensable or otherwise controlled by USNY or an Affiliate or directly or indirectly derived from the foregoing at any time during the term of this Agreement. For avoidance of doubt, Technology Rights do not
include research results, protocols or the like that relate only to biological strains or organisms other than those disclosed or covered by the Licensed Patents, whether or not such other biological strains or organisms could be used in the Field.

 2.16        “Territory” means the entire world. 

2.17        “Valid Claim” means, with respect to any country, a claim
of an issued patent within the Licensed Patents that has not, with respect to such country (a) expired or been canceled, (b) been declared invalid by an unreversed decision of a court or other appropriate body of competent jurisdiction
from which there can be no further appeal, (c) been admitted to be invalid or unenforceable through reexamination, reissue, disclaimer or otherwise, and/or (d) been abandoned in accordance with or as permitted by the terms of this
Agreement or by mutual written agreement. 
 ARTICLE 3 

REPRESENTATIONS, WARRANTIES AND COVENANTS OF USNY 

3.1        Corporate Power and Authority. USNY has the corporate power
and authority to execute and deliver this Agreement and perform its obligations hereunder. USNY also represents and warrants that it has the right and the authority, including ownership or appropriate and valid licenses, to grant the licenses set
forth in Article 5 and to grant and perform its other rights and obligations thereunder. 

3.2        Compliance with Law. USNY will conduct its activities and
operations under this Agreement in compliance with all applicable laws, statutes, rules or regulations. 

3.3        Ownership; No Conflicting Agreement. USNY represents and
warrants that it has the right to grant the licenses granted under this Agreement, that it has joint title and co-ownership of the Licensed Patent Rights and the Technology Rights with two co-owners, that it has obtained rights in the Field from one
such co-owner of the Licensed Patent Rights and the Technology Rights and that to the best of USNY’s knowledge neither such co-owner nor any other joint or co-owner has granted to any third party any right or interest in any of the Licensed
Patent Rights or other Technology Rights in the Field. USNY represents and warrants that it has not granted, and no Affiliate has granted, to any third party any right or interest in any of the Licensed Patent Rights or other Technology Rights that
is inconsistent with the rights granted to MBI herein, and neither USNY or any Affiliate will grant any third party such a right during the term of this Agreement. 

  
 3 

 3.4        No Litigation.
USNY represents and warrants that, as of the Effective Date, there are no pending or, to its or its Affiliates knowledge, threatened actions, suits, investigations, claims, or proceedings in any way relating to the Licensed Patent Rights or other
Technology Rights. 
 ARTICLE 4 

REPRESENTATIONS, WARRANTIES AND COVENANTS OF MBI 

4.1        Corporate Power and Authority. MBI has the corporate power
and authority to execute and deliver this Agreement and perform its obligations hereunder. 

4.2        Compliance with Law. MBI will conduct its activities and
operations under this Agreement in compliance with all applicable laws, statutes, rules or regulations. 

4.3        Commercialization. MBI will use its best efforts to
commercialize the Licensed Products. MBI will not provide Licensed Products at less than fair market value in order to intentionally avoid the royalties required hereunder or in order to intentionally induce purchase of other products or services of
MBI; provided, however, that nothing herein shall prohibit or impair the right of MBI to distribute Licensed Products at other than fair market value for use in research and/or development, as promotional samples, for testing,
demonstrations or trials or otherwise to third parties to promote Sales. 

4.4        Patent Coverage and Validity. MBI will not contest the
validity of the Licensed Patents or the coverage of the Licensed Patents of MBI’s Licensed Products as currently planned, nor will MBI intentionally assist any third party, including any Sublicensee, in doing so. 

ARTICLE 5 
 PATENT
LICENSE GRANT 
 5.1        Grant. Subject to the terms and
conditions of this Agreement, USNY hereby grants to MBI an Exclusive, royalty-bearing, sublicensable license (or sublicense, as applicable) in the Field, under the Licensed Patent Rights and any other Technology Rights, to research, develop, make,
have made, import, have imported, use, have used, sell, have sold, offer for sale, have offered for sale, and otherwise exploit Licensed Products in the Territory and in the Field. 

5.2        Exceptions. The license grant in Section 5.1 is
subject only to the reservation of USNY’s and NYSED’s rights: (a) to make, have made or use the Licensed Patent Rights and Technology Rights for USNY’s and NYSED’s research and educational purposes only (including such USNY
or NYSED research sponsored or funded by non-profit or government entities) but not to assist or support any other party in connection with any commercial use in the Field and not for sale or other distribution to third parties for commercial use in
the Field; and (b) to make, have made, use or license the Licensed Patent Rights and Technology Rights for use outside the Field. Consistent with the foregoing limited exception, USNY or NYSED may, and until January 1, 2010 as between
themselves and MBI shall have the exclusive right to, submit the results of their research underlying the Licensed Patent Rights and Technology Rights in 

  
 4 

 
reputable scientific journals or at scientific conferences; provided, however, that, at all times prior to January 1, 2010 and thereafter, MBI shall be furnished with a copy of
any proposed publication, paper or any other oral or written disclosure prior to submission for publication or disclosure to a third party and for limitation as provided below. In the case of abstracts, MBI shall be given a copy at least seven
(7) days prior to the earlier of submission or disclosure; in all other cases MBI shall be given such material at least fifteen (15) days prior to the earlier of submission or disclosure to third parties. At the end of such 7 or 15 day
period USNY or NYSED may proceed with submission or disclosure unless MBI has notified NYSED (or USNY) that in MBI’s reasonable opinion, supported by evidence, the submission or disclosure may describe or relate to inventions, materials or
discoveries made by MBI or USNY or Affiliates which MBI believes may be patentable and for which no patent application has been filed, or which is a trade secret or other confidential material the disclosure of which may be adverse to MBI’s
commercialization of the Licensed Product. If MBI has made such notification, then USNY or NYSED shall, as reasonably notified by MBI, edit such submission or disclosure, redact from such submission or disclosure any such material or refrain from
making such submission or disclosure; provided, however, that USNY or NYSED may elect to refrain from publishing such confidential material rather than publishing a redacted version. Without limitation to the foregoing, MBI, USNY and
NYSED and any of their Affiliates will not publish or otherwise make public the following information: (a) the detailed culturing (e.g., fermentation) protocols related to the Licensed Product; (b) the specific location in North America
where the bacterial strain was originally isolated; (c) the detailed protocols (dosage, etc.) used for killing the cells by either e-beaming or gamma ionizing radiation; or (d) the detailed protocols for combining supernatant with cells to
achieve higher dreissenid mortality than would be achieved by just cells alone; provided, however, that nothing herein will limit confidential disclosures by MBI in connection with MBI’s exercise of its license rights as granted
above. 
 5.3        Limits on Sublicensing. MBI has the right to
grant nonexclusive or exclusive sublicenses hereunder, provided, that: (a) MBI shall pay royalties on all Net Revenues of Sublicensees to USNY in accordance with Article 6; (b) MBI may grant sublicenses of no greater scope
than the licenses granted under Section 5.1; (c) MBI shall inform USNY of any proposed sublicenses; and (d) MBI shall not enter into a sublicense with any party that is barred from contracting with the State of New York

 5.4        Assignment of Sublicenses. Any sublicenses granted by
MBI of the rights it receives under Section 5.1, including any nonexclusive sublicenses, will remain in effect and, at MBI’s election, may be assigned to USNY if the license in Section 5.1 terminates pursuant to
Article 12, provided the financial obligations of each Sublicensee to USNY will be at least the same as the Sublicensee’s obligations to MBI with respect to Licensed Patent Rights but, in any event, will not be less than MBI’s
obligations to USNY for such sublicenses under this Agreement and provided that USNY has been provided with a copy of any sublicense agreement, USNY finds the terms of such agreement reasonably acceptable and any Sublicensee to be assigned agrees to
comply with all of the terms of this Agreement. For avoidance of doubt, USNY may reject assignment of a sublicense if USNY reasonably concludes that MBI or the Sublicensee has not provided adequate assurance of the capability of the Sublicensee to
satisfy the financial obligations of this Agreement. In such event and subject to the preceding 

  
 5 

 
sentences, and provided that any such Sublicensees are not barred from contracting with the State of New York, USNY will assume all the rights and obligations of MBI under such sublicenses with
respect to the licenses granted under the Licensed Patents Rights and other Technology Rights to such Sublicensees. In the event of such assignment, unless otherwise agreed by USNY, USNY will not be obligated to assume any obligation of MBI under
the license agreement other than the granting of the license rights consistent with the terms hereof. 

5.5        Term of License. The license grant in Section 5.1
shall continue for the term of this Agreement as set forth in Section 12.1, unless the Agreement is earlier terminated in accordance with Article 12 or otherwise. 

ARTICLE 6 
 ROYALTIES

 6.1        Licensee Fee. Subject to the terms and conditions of
this Agreement, MBI will pay USNY a license fee for the licenses granted under this Agreement. Such license fee shall be payable as follows: 

(a)        [*****] of such fee is due within [*****] after the Effective Date
of this Agreement; and 
 (b)        [*****] of such fee is due within
[*****] after satisfactory receipt by MBI of the first EPA Registration. 

6.2        Royalty on Sales of Licensed Products; Exclusions. With
respect to the Sale after the Effective Date of Licensed Products by or for MBI in the United States or Canada where a Valid Claim in the Field remains in such country (“North American Valid Claims”), MBI shall pay USNY [*****] of
Net Revenues based on such Sale in such country. With respect to the Sale after the Effective Date of Licensed Products by or for MBI in any other country, if and to the extent a North American Valid Claim in the Field remains, MBI shall pay USNY
[*****] of Net Revenues based on such Sale in such country. With respect to the Sale after the Effective Date of Licensed Products by or for MBI in any country, where no North American Valid Claim in the Field remains, MBI shall pay USNY [*****] of
Net Revenues based on such Sale in any such country during the term of this Agreement. No more than one royalty payment will be due with respect to a particular Sale of a Licensed Product. No multiple royalties will be payable because any Licensed
Product, or its manufacture, sale or use is covered by more than one Valid Claim in a given country. No royalty will be payable under this Section with respect to (a) Sales of Licensed Products among MBI and its Sublicensees, provided that the
Sublicensees are not end users of the Licensed Product and provided MBI pays USNY royalties owing on Net Revenues of such Sublicensees, or (b) Licensed Products distributed for use in research and/or development or as promotional samples or
otherwise distributed without charge to third parties to promote Sales of Licensed Products. 

6.3        Maximum Amount; Duration of Royalty Obligation.
Notwithstanding any other term of this Agreement, MBI is not obligated to pay USNY any royalties, license fees or other amounts under this Article or otherwise, including royalties based on MBI or Sublicensee Licensed Product Sales but excluding the
license fees described in Section 6.1, in excess of [*****]. Subject to the immediately preceding sentence, royalties due under this Article will 
  

	 [*****]
	 Confidential portions of this document have been redacted and filed separately with the Securities and Exchange Commission 

  
 6 

 
be payable in U.S. Dollars on a country-by-country and Licensed Product-by-Licensed Product basis until the end of the term of this Agreement. 

6.4        Currency Exchange. For the purpose of determining royalties
payable under this Agreement, any royalties or other revenues MBI receives in currencies other than U.S. dollars and any Net Revenues denominated in currencies other than U.S. dollars shall be converted into U.S. dollars according to MBI’s
reasonable standard conversion procedures (which shall be based on a readily available published rate). 
 ARTICLE 7 

PROPRIETARY RIGHTS 

7.1        Registrations; Improvements. MBI is entitled to submit all
regulatory filings in its name and shall own all such filings and other registrations, including the EPA Registrations and Canadian PMRA (Pest Management Regulatory Agency) registrations. USNY and its Affiliates shall provide MBI with all
information reasonably necessary or useful for such filings and registrations and shall cooperate with MBI so that MBI may make and maintain such filings and registrations. Prior to March 1, 2010, USNY’s and its Affiliates’
obligations under the preceding sentence shall be at USNY’s cost, and from and after March 1, 2010, USNY and its Affiliates shall be reimbursed for reasonable and customary expenses USNY and its Affiliates actually incur thereafter in
performing such obligation provided that such expenses are first disclosed to MBI. Any improvements to the Licensed Patent Rights or any other Technology Rights, whether patentable or not, made by MBI shall be the sole property of MBI. 

7.2        MBI Trademarks. MBI will obtain and maintain trademarks for
the Licensed Products as MBI sees fit at MBI’s sole discretion and at its own expense. MBI will retain sole and exclusive ownership of such trademarks at all times. Nothing in this Agreement shall be construed as conferring on USNY the right to
use in advertising, publicity or other promotional activities any name, trademark or tradename of MBI or its products; provided, however; in the event of an assignment of a sublicense from MBI to USNY in accordance with
Section 5.4 of this Agreement, USNY shall have the limited right to use the MBI trademarks solely in connection with a sale, transfer, exchange or other commercial disposition of Licensed Products that use such MBI trademarks and are already
manufactured at the time of such assignment of a sublicense if, and only to the extent, necessary to effect such sale, transfer, exchange or other commercial disposition. 

ARTICLE 8 
 INFRINGEMENT
BY THIRD PARTY 
 8.1        Right to Defend. As between USNY and
MBI, MBI shall at its expense, have the first right but not the obligation to protect the Licensed Patent Rights and other Technology Rights from infringement and prosecute infringers when, in its sole judgment, such action may be reasonably
necessary, proper and justified in order to maintain the value of MBI’s rights in the Field. If USNY shall have supplied MBI with evidence of infringement of Licensed Patent Rights, or other Technology Rights. USNY may by written notice request
MBI to take steps to enforce such intellectual property rights. If USNY does so, and MBI does not, within one hundred eighty (180) days of the receipt of such notice, either (a) cause the infringement to

  
 7 

 
terminate, or (b) initiate and continue a legal action against the infringer, USNY may, upon written notice to MBI, initiate an action against the infringer at USNY’s expense.
Notwithstanding the foregoing, MBI shall have the right to sublicense any alleged infringer pursuant to Article 5. 

8.2        Declaratory Judgment. In the event that a declaratory
judgment action or claim or counterclaim alleging invalidity, unenforceability or noninfringement of any of the Licensed Patents or other Technology Rights related to the Field shall be brought against USNY or MBI, MBI may elect to have control of
the action, and if MBI so elects it shall bear all the costs of the action; provided, however, that if such action, claim or counterclaim materially and adversely impacts rights outside the Field reserved to USNY or its Affiliates or licensed to a
third party, then USNY, the Affiliate, or the licensee shall have the right to participate in the action, claim or counterclaim, to comment on the defense or settlement of any such action, claim or counterclaim and their own expense, and to approve
(such approval not be unreasonably withheld or delayed) any settlement of such action, claim or counterclaim that would have a material adverse impact on the Licensed Patent Rights or Technology Rights outside the Field reserved to USNY or its
Affiliates. 
 8.3        Cooperation in an Action. In the event one
party shall institute or carry on a legal action pursuant to Section 8.1 or 8.2, the other party shall fully cooperate with and supply all assistance reasonably requested by the party instituting or carrying on such action,
including (a) by using commercially reasonable efforts to have its employees testify when requested and to make available relevant records, papers, information, samples, specimens, and the like, and (b) if requested by the party
instituting the action and necessary to pursue the action, joining in such action at the expense of the party requesting such joinder. A party instituting or carrying on such an action shall keep the other party informed of the progress of such
action, and said other party shall be entitled to be represented by counsel in connection with such action at its own expense. 

8.4        Allocation of Recovery. Any amounts paid to USNY or MBI by
third parties as the result of an action brought by either party pursuant to Section 8.1 or 8.2 (such as in satisfaction of a judgment or pursuant to a settlement), shall first be applied to reimbursement of the unreimbursed expenses
(including attorneys’ fees and expert fees) incurred by each party. Any remainder of the amount paid to MBI or USNY shall be divided between the parties as follows: (a) if such amount was paid to USNY, fifty percent (50%) of such
remainder shall be retained by USNY and the balance shall be paid to MBI; or (b) if such amount was paid to MBI, such remainder shall be deemed to be Net Revenues for Sale of Licensed Products and MBI shall pay to USNY royalties on such amounts
pursuant to Section 6.2. 
 ARTICLE 9 

RECORDS, REPORTS AND PAYMENTS 

9.1        Records; Audit. MBI shall keep complete and accurate records
and books of account in respect of all Licensed Products made and sold by MBI and of all payment obligations to USNY hereunder. MBI shall keep the same for at least six (6) years after it pays USNY the royalties due for such Licensed Products.
USNY shall have the right, during business hours, no more often than annually, to engage, at its own expense (other than as provided in the last sentence of this Section) a nationally-certified auditing firm reasonably acceptable to MBI to

  
 8 

 
examine such records and books to verify the amounts paid to USNY hereunder. Such auditors shall not disclose to USNY or to any third party any confidential information learned through an
examination of such records and books, except for any information showing a discrepancy in amounts owed to USNY, and USNY shall not use any such information for any purpose other than determining and enforcing its rights under this Agreement. In the
event that USNY’s examination of such records and books reveals any underpayment greater than ten percent (10%) of the amount actually paid to USNY in the relevant time period, MBI shall promptly pay to USNY the amount of such
underpayment, and MBI shall pay to USNY the reasonable costs and expenses incurred by USNY in connection with such examination. 

9.2        Reports; Payment. Following the first Sale of a Licensed
Product, on or before the day that is sixty (60) days after the end of each MBI fiscal quarter, and for so long as royalties are payable under this Agreement, MBI shall render to USNY a report in writing setting forth Net Revenues and the
number of units of Licensed Products Sold in each country during such quarter by MBI and Sublicensees during the preceding fiscal quarter (to the extent royalties are payable to USNY based on such revenues). Each such report shall also set forth an
explanation of the calculation of the royalties payable hereunder and be accompanied by payment of the royalties shown by said report to be due USNY, as well as payment of any underpayment in any prior period revealed by any audit by MBI or USNY.
Notwithstanding the foregoing, if (a) USNY materially breaches this Agreement, (b) MBI gives USNY written notice of the breach, and (c) USNY has not cured the breach by the time a payment is due under this Section 9.2,
then MBI may make the required payment into an interest bearing escrow account to be released to USNY when the breach is cured, less any damages that are payable to MBI by virtue of USNY’s breach. 

ARTICLE 10 

CONFIDENTIALITY 

10.1        Scope. During the term of this Agreement and for 5 years
thereafter, MBI and USNY agree: (a) not to disclose to any third party, except as specifically allowed by this Agreement, any Confidential Information of the other party, and (b) to limit disclosure of the other party’s Confidential
Information within its own organization to individuals whose duties justify the need to know such information and who are legally obligated to comply with the terms of this Agreement; provided, however, that nothing herein will limit
disclosures by MBI in connection with MBI’s exercise of its license rights as granted in Article 5, and provided, further, that nothing herein will limit disclosures among USNY and NYSED or to persons working with USNY or
NYSED on research outside the Field and who have signed a confidentiality statement agreeing to abide by the terms of Article 10 of this Agreement. To the extent practical, Confidential Information will be disclosed in tangible form and
marked “Confidential.” Information disclosed in non-tangible form, such as orally or by visual inspection, will be considered confidential when the disclosing party confirms in writing the fact and general nature of the disclosure within 1
month after it is made. 
 10.2        Exclusions; Required
Disclosure. The recipient of Confidential Information will be under no obligation with respect to any information which: (a) at the time of disclosure is available to the public; (b) after disclosure becomes available to the public
through no fault of the recipient, provided that the obligation of the recipient will cease only after the date on which 

  
 9 

 
such information has become available to the public; (c) the recipient can demonstrate through tangible evidence was in its possession before receipt from the disclosing party; (d) is
disclosed to the recipient without restriction on disclosure by a third party who has the lawful right to disclose such information; or (e) was independently developed by the recipient as proven by contemporaneous documentation made prior to
the disclosure to recipient. It shall not be a breach of this Article 10 if the recipient party is required to disclose the other party’s Confidential Information pursuant to an order of the government or a court of competent
jurisdiction or by state or federal law or regulation including but not limited to the Freedom of Information Act, provided that (a) the recipient party provides the other party with adequate notice of the court or government order or
legal disclosure request and the required disclosure, (b) the recipient party cooperates with the other party’s efforts to protect its Confidential Information with respect to such disclosure, and (c) the recipient party takes all
reasonable measures requested by the other party to challenge or to modify the scope of such required disclosure. 

10.3        No Third Party Disclosure. Except as expressly provided
herein, MBI and USNY agree not to disclose any terms of this Agreement to any third party without the consent of the other party; provided, however, that disclosures may be made as required by securities or other applicable laws, or to
actual or prospective investors or corporate partners, or to a party’s accountants, attorneys, other professional advisors who agree to appropriate confidentiality provisions to protect such information from disclosure or improper use, and by
MBI to Sublicensees or potential Sublicensees. 
 ARTICLE 11 

PATENTS AND PATENT COSTS 

11.1        Patent Costs. Subject to the terms of
Section 11.2, with respect to patent costs paid by USNY in connection with the preparation, filing, prosecution, issuance and maintenance of the Licensed Patents in the Territory, MBI shall pay to USNY [*****] of such patent costs that
are incurred from and after the Effective Date. 
 11.2        Responsible
Party. MBI shall have the sole right to apply for, prosecute and maintain, from the Effective Date through the termination of this Agreement, the Licensed Patent Rights. The application filings, prosecution, maintenance and payment of all fees
and expenses, including legal fees, relating to the Licensed Patent Rights shall be the responsibility of MBI during such period. USNY shall provide MBI with all information necessary or useful for the filing and prosecution of such Licensed Patent
Rights and shall cooperate fully with MBI so that MBI may establish and maintain such rights. Patent attorneys chosen by MBI and approved by USNY shall handle all patent filings and prosecutions, on behalf of USNY, provided, however,
USNY shall be entitled to review and comment upon and approve, all material actions undertaken in the prosecution of all patents and applications; provided that USNY will be deemed to have approved any such action if it fails to disapprove
such action within one month of notice per Section 3.5 of such request for approval. USNY shall promptly provide any comments or approvals which it elects or is required to provide hereunder. If MBI declines to apply for, prosecute or
maintain any Licensed Patent Rights, USNY shall have the right to pursue the same at USNY’s expense and MBI shall have no rights under USNY’s interest therein nor any obligation to reimburse USNY for its related prosecution and maintenance
fees. If MBI 
  

	 [*****]
	 Confidential portions of this document have been redacted and filed separately with the Securities and Exchange Commission 

  
 10 

 
decides not to apply for, prosecute or maintain any Licensed Patent Rights, MBI shall give sufficient and timely notice to USNY so as to permit USNY to apply for, prosecute and maintain such
Licensed Patent Rights. In such event, MBI shall provide USNY with all information necessary or useful for the filing and prosecution of such Licensed Patent Rights and shall cooperate fully with USNY so that USNY may establish and maintain such
rights. 
 ARTICLE 12 

TERMINATION 

12.1        Term and USNY Termination. The term of this Agreement shall
commence upon the Effective Date and, unless earlier terminated in accordance with this Article 12, expires upon the later of (a) the expiration of the last-to-expire issued Valid Claim or (b) December 31, 2017. USNY shall have
the right, subject to Section 12.2, to terminate this Agreement prior to the date it would otherwise expire pursuant to this Section 12.1 if: (a) MBI materially breaches this Agreement and fails to cure such breach
within sixty (60) days after notice from USNY of such breach or (b) any proceedings are instituted by or against MBI under any bankruptcy, insolvency, or moratorium law and such remain undismissed for at least 90 days. 

12.2        Cure Right; No Waiver. USNY may exercise its right of
termination under Section 12.1 by giving MBI, its trustees or receivers or assigns, sixty (60) days prior written notice of USNY’s election to terminate, which notice shall specify the basis for (and facts supporting)
USNY’s right to terminate. Upon the expiration of such period, this Agreement shall automatically terminate unless MBI has previously cured the breach or condition permitting termination under Section 12.1, in which case this
Agreement shall not terminate; provided, however, that if MBI receives notification from USNY of a material breach and if MBI notifies USNY in writing within thirty (30) days of receipt of such default notice that MBI disputes the asserted
default, the matter will be submitted to arbitration as provided in Section 13.4 of this Agreement. In such event, USNY shall not have the right to terminate this Agreement until it has been determined in such arbitration proceeding that
MBI materially breached this Agreement and MBI fails to cure such breach within ninety (90) days after the conclusion of such arbitration proceeding. Such notice and termination shall not prejudice USNY’s rights to any royalties and other
sums due hereunder and shall not prejudice any cause of action or claim of USNY accrued or to accrue on account of any breach or default by MBI. Upon any termination of this Agreement USNY shall accept an assignment by MBI of any sublicenses granted
by MBI to Sublicensees, subject to such Sublicensee’s eligibility to contract with the State of New York and subject to approval by USNY, such approval to not be unreasonably withheld, and any sublicense so assigned shall remain in full force
and effect. The failure of USNY at any time, or for any period of time, to enforce any of the provisions of this Agreement shall not be construed as a waiver of such provisions or the right of USNY thereafter to enforce each and every such
provision. 
 12.3        MBI Termination. MBI shall have the right to
terminate this Agreement prior to the date it would otherwise expire if USNY materially breaches this Agreement and fails to cure such breach within sixty (60) days after notice from MBI of such breach. 

  
 11 

 12.4        No Effect on
Accrued Payment Obligations.   No termination of this Agreement shall relieve MBI of the liability for payment of any royalty due for Licensed Products made prior to the effective date of such termination. 

12.5        Rights Regarding Licensed Products.  
Notwithstanding anything herein to the contrary, in the event of any termination or expiration of the term of this Agreement, MBI shall have the right to use or sell Licensed Products on hand on the date of such termination or expiration and to
complete Licensed Products in the process of manufacture at the time of such termination or expiration and use or sell the same, provided that MBI shall submit the applicable royalty reports described above, along with the royalty payments
required above for Sale of such Licensed Products. 
 12.6        No
Waiver of Claims.   Termination of this Agreement for any reason shall not release any party hereto from any liability which, at the time of such termination, has already accrued to the other party or which is attributable to a period
prior to such termination, nor preclude either party from pursuing any rights and remedies it may have hereunder or at law or in equity which accrued or are based upon any event occurring prior to such termination. 

12.7        Survival.   Articles 6.3, 7, 9, 10, 12 and
13 of this Agreement shall survive the expiration or termination of this Agreement for any reason. 
 ARTICLE 13 

MISCELLANEOUS 

13.1        Entire Agreement; Amendment. This Agreement sets forth the
complete agreement of the parties concerning the subject matter hereof and may not be contradicted by evidence of any prior or contemporaneous agreement between the parties concerning the subject matter of this Agreement. No waiver of or amendment
of any of the terms hereof shall have any force or effect unless in writing, signed by duly authorized representatives of the parties. 

13.2        Assignment.   This Agreement may not be assigned
or otherwise transferred by any party without the prior written consent of the other party; provided, that any party may assign this Agreement without the prior written consent of the other, to any successor of such first party (by way of merger,
acquisition, reorganization or similar transaction), or purchaser of all or a substantial part of the assets of the business to which this Agreement pertains and provided, further that USNY may assign this Agreement to an Affiliate but only along
with an assignment to such Affiliate of all rights and interest in the Licensed Patent Rights and the Technology Rights. Any permitted assignee of MBI shall succeed to all of the rights and obligations of MBI under this Agreement. The Agreement
shall be binding upon and inure to the benefit of any permitted successor or permitted assignee. 

13.3        Governing Law.   This Agreement shall be governed
by, and construed and interpreted, in accordance with the internal laws of the State of New York without giving effect to any choice of law rules. 

13.4        Arbitration.   Any dispute, controversy, or claim
arising under, out of, or relating to this Agreement (and subsequent amendments thereof), its valid conclusion, binding effect, interpretation, performance, breach or termination, including tort claims, shall be referred to and

  
 12 

 
finally determined by arbitration in accordance with the Rules of Arbitration of the American Arbitration Association under rules for commercial disputes in force at the time when arbitration is
initiated. A sole arbitrator shall be appointed. Such arbitration shall be held in New York. In any legal proceeding (including arbitration) between the parties, the prevailing party will be entitled to recover, in addition to any other relief
awarded or granted, its costs and expenses (including reasonable attorneys’ and expert witness’ fees) incurred in any such proceeding. 

13.5        Notices.   All notices, requests or consents
required or permitted under this Agreement will be made in writing and will be given to the other party by personal delivery, registered or certified mail (with return receipt), overnight air courier (with receipt signature) or facsimile
transmission (with “answerback” confirmation of transmission), sent to such party’s address or telecopy numbers set forth below, or such other addresses or telecopy numbers of which the parties have given notice pursuant to this
Section. Each such notice, request or consent will be deemed effective upon the date of actual receipt, receipt signature or confirmation of transmission, as applicable. 
  

	 	       USNY:
	       [*****] 

  

	 	       MBI:
	        Marrone Bio Innovations, Inc. 

2121 Second Street, Ste. B-107 

Davis, California 95618 

Attn: President 

Fax: 530-750-2808 

13.6        Indemnity.   MBI shall, at its expense, defend,
indemnify and hold harmless USNY, its directors, officers, managers, employees, representatives, Affiliates and agents (the “Indemnified Parties”) against any third party claim, suit or proceeding (“Claim”) brought against USNY
or its Affiliates and arising out of a breach of any representation or warranty made by MBI in this Agreement or arising out of any allegation of damages resulting from any Licensed Product offered directly or indirectly by MBI, including without
limitation any allegation that such a product or service is defective or has caused damage to person or property, to the extent such Claim arises solely from the actions or inactions of MBI or its Sublicensees; provided that (a) MBI is
notified promptly of any claims brought against an Indemnified Party of which such Indemnified Party has notice, (b) MBI has the sole right to control and defend or settle any litigation within the scope of this indemnity, and (c) the
Indemnified Parties reasonably cooperate in the defense of any claims. 

13.7        No Consequential Damages. SUBJECT TO SECTION 13.6 AND EXCEPT
FOR CLAIMS ARISING OUT OF BREACH OF ARTICLE 10 OR SECTION 13.6, NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, OR INDIRECT DAMAGES ARISING OUT OF THIS AGREEMENT, HOWEVER CAUSED, UNDER ANY THEORY OF LIABILITY.

  

	 [*****]
	 Confidential portions of this document have been redacted and filed separately with the Securities and Exchange Commission 

  
 13 

 13.8        Force
Majeure.   Neither party shall lose any rights hereunder or be liable to the other party for damages or losses (except for payment obligations) on account of failure of performance by the defaulting party if the failure is occasioned
by war, strike, fire, Act of God, earthquake, flood, lockout, governmental acts or orders or restrictions, failure of suppliers, or any other reason where failure to perform is beyond the reasonable control and not caused by the negligence or
intentional conduct or misconduct of the nonperforming party. 

13.9        Severability.   In the event that any provisions
of this Agreement are determined to be invalid or unenforceable by a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect without said provision. The parties shall in good faith negotiate a substitute
clause for any provision declared invalid or unenforceable, which shall most nearly approximate the intent of the parties in entering this Agreement. 

13.10        Counterparts; Facsimile Signatures.   This
Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement may be executed and delivered by facsimile and upon such
delivery the facsimile signature will be deemed to have the same effect as if the original signature had been delivered to the other party. 

13.11        Headings.   The headings of the several sections
are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. 

13.12        Waiver.   Failure by either party hereto to
exercise or enforce any rights conferred upon it by this Agreement will not be deemed to be a waiver of any such rights or operate so as to bar the exercise or enforcement thereof or of any other rights at any subsequent time or times. 

13.13        Status of the Parties.   Nothing in this
Agreement will be construed as to constitute a partnership or joint venture between the parties or authorize either to represent the other party or contract any liability on behalf of the other party. 

13.14        Joint Press Release; Publicity.   Upon execution
of this Agreement or as soon as practicable thereafter, the parties will issue a joint press release, the text of which will be mutually acceptable to the parties. In addition, from time to time during the term hereof, MBI may issue press releases
and other forms of publicity referring to the Licensed Products and USNY’s role with respect thereto, such to be subject to the consent of USNY (such consent not to be unreasonably withheld or delayed). 

[Signature Page Follows] 

  
 14 

 [Signature Page to License Agreement] 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the Effective Date. 

 

									
	 THE UNIVERSITY OF THE

STATE OF NEW YORK
	 		 	 MARRONE BIO INNOVATIONS, INC.

					
	 By:
	 	 /s/ David M. Steiner
	 		 	 By: 
	 	 /s/ Pamela G. Marrone

	 Name:
	 	 David M. Steiner
	 		 		 	 Name: Pamela G. Marrone

	 Title:
	 	 President
	 		 		 	 Title: CEO

  
 15 

 Exhibit A 

Patents 
 Molloy, D. P.
2001. A Method for Controlling Dreissena Species. United States Patent and Trademark Office, U. S. Department of Commerce. Patent No. 6,194,194. (Filed December 17, 1997 & issued February 27, 2001.) 4 pp. 

Molloy, D. P. 2004. A Method for Controlling Dreissena Species. Canadian Intellectual Property Office, Industry Canada. Patent
No. 2,225,436. (Filed December 22, 1997 & issued December 21, 2004.) 13 pp. 

  
 16

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