Document:

mbii-ex1045_175.htm

Exhibit 10.45

SUBORDINATION AGREEMENT

This SUBORDINATION AGREEMENT, dated as of March 28, 2017 (this "Agreement"), is among – Five Star Bank (the "Subordinating Creditor"), Marrone Bio Innovations, Inc., (the "Debtor"), and LSQ Funding Group L.C. (the "Senior Creditor").

RECITALS

A. Senior Creditor has or expects to acquire a security interest in assets of the Debtor in which the Subordinating Creditor has an interest, including but not limited to the Senior Creditor Collateral.

B. Debtor and Subordinating Creditor are or may become parties to the Subordinating Creditor Agreements.

C. The Creditors are executing this Agreement to set forth their lien priorities with respect to the Senior Creditor Collateral.

NOW, THEREFORE, in consideration of the premises, and intending to be legally bound hereby, the Creditors hereby agree as follows:

AGREEMENT

1. DEFINITIONS.  The following terms used herein shall have the following meaning.  All capitalized terms not herein defined shall have the meaning set forth in the Uniform Commercial Code:

1.1. "Bankruptcy Code" - Title 11 of the United States Code.

1.2. "Chosen State" - California.

1.3. "Creditors" - The Subordinating Creditor and the Senior Creditor.

1.4. "Debtor" - See preamble.

1.5. "Party" - Each of the Subordinating Creditor, the Debtor, and the Senior Creditor.

1.6. "Secondary Collateral" - Collateral of a Creditor holding a security interest which is inferior to the priority of the other Creditor.

1.7. "Senior Creditor" - See preamble.

1.8. “Senior Creditor Collateral” – See Exhibit B attached to this Agreement.

1.9. "Senior Creditor Priority Collateral" - All Debtor's present and future Accounts (as 

1

sf-3750113 v3 

defined in the Uniform Commercial Code), Inventory, Instruments, Documents, Chattel Paper, and General Intangibles (other than intellectual property), and the direct and indirect proceeds thereof, but excluding Debtor’s deposit account number and deposit account number with Subordinating Creditor.

1.9.1.Senior Creditor Priority Collateral shall also include any raw materials, unfinished goods, finished goods, and//or Inventory of Debtor while in the possession and control of Debtor’s wholly-owned subsidiary, Marrone Michigan Manufacturing, LLC.

1.10. "Senior Creditor Obligations" - Obligations of the Debtor to the Senior Creditor secured by the Senior Creditor Collateral.

1.11. "Subordinating Creditor" - See preamble.

1.12. "Subordinating Creditor Agreements" - All agreements now or hereafter entered into between Subordinating Creditor and Debtor which create an obligation which is secured by the Subordinating Creditor Collateral.

1.13. “Subordinating Creditor Collateral” – All collateral described in the UCC-1 Financing Statements listed on Exhibit A attached to this Agreement, including Debtor’s deposit account number 3207933 and deposit account number 3208014 with Subordinating Creditor.

1.14. "Subordinating Creditor Obligations" - Indebtedness owed by the Debtor to the Subordinating Creditor secured by Subordinating Creditor Collateral.

2. PRIORITY.

2.1. Notwithstanding the terms or provisions of any agreement or arrangement which either Creditor may now or hereafter have with the Debtor or any rule of law, and irrespective of the time, order, or method of attachment or perfection of any security interest or the recordation or other filing in any public record of any financing statement, any security interests in the Senior Creditor Priority Collateral now or hereafter held by the Senior Creditor as security for the Senior Creditor Obligations, whether or not perfected, are and shall remain senior to any lien therein now or hereafter held by the Subordinating Creditor.

2.2  Notwithstanding the terms or provisions of any agreement or arrangement which either Creditor may now or hereafter have with the Debtor or any rule of law, and irrespective of the time, order, or method of attachment or perfection of any security interest or the recordation or other filing in any public record of any financing statement, any security interests in the Subordinating Creditor Collateral, other than Senior Creditor Priority Collateral, now or hereafter held by the Subordinating Creditor as security for the Subordinating Creditor Obligations, whether or not perfected, are and shall remain senior to any lien therein now or hereafter held by the Senior Creditor.

2

sf-3750113 v3 

3. ENFORCEMENT OF SECURITY INTEREST.

3.1. The Subordinating Creditor shall have no right to take any action with respect to its Secondary Collateral, whether by judicial or non-judicial foreclosure, recordation or enforcement of mechanics liens, notification to the Debtor's account debtors, the seeking of the appointment of a receiver for any portion of the Debtor's assets, setoff, or otherwise, unless and until all Senior Creditor Obligations have been fully and indefeasibly paid.

3.2. Senior Creditor shall have no right to take any action with respect to its Secondary Collateral, whether by judicial or non-judicial foreclosure, recordation or enforcement of mechanics liens, notification to the Debtor's account debtors, the seeking of the appointment of a receiver for any portion of the Debtor's assets, setoff, or otherwise, unless and until all Subordinating Creditor Obligations have been fully and indefeasibly paid.

4. PROCEEDS OF COLLATERAL.

4.1.  Any proceeds of Secondary Collateral, or proceeds of proceeds, received by a Creditor shall be, immediately upon discovery, paid to the other Creditor.

4.2. Nothing contained herein shall prohibit the Subordinating Creditor from receiving and retaining payments made directly by the Debtor by check or electronic funds transfer directly from any deposit account of Debtor, unless the Subordinating Creditor is acting in collusion with Debtor to divert the proceeds of Senior Creditor Priority Collateral from Senior Creditor.

4.3. Any sums due pursuant to Section 4.1 of this Agreement not paid when due shall accrue a late charge at the rate of 10% per annum.

5.CREDITOR COVENANTS AND WARRANTIES. 

5.1. The Subordinating Creditor warrants, covenants, and represents that it:

5.1.1. Is the owner of the Subordinating Creditor Obligations, free and clear of the claims of any other entity;

5.1.2. Is the secured party of record in each UCC Financing Statement listed on the attached Exhibit A.

5.1.3. Will not, at any time while this Agreement is in effect assign any of the Subordinating Creditor Obligations to any entity which does not agree in a writing, reasonably satisfactory in form and substance to the Senior Creditor (the "Transfer Document"), to become a Party and to succeed to the rights and to be bound by all of the obligations of the Subordinating Creditor hereunder.  In the case of any such proposed assignment by the Subordinating Creditor, it will notify the Senior Creditor at least (10) ten days prior to the date of any of such intended disposition and include with such notice a copy of the proposed 

3

sf-3750113 v3 

Transfer Document.

5.1.4. Will indemnify Senior Creditor and hold it harmless against any direct or indirect loss (including attorney’s fees and expenses) arising from the assertion by any holder of the Subordinating Creditor Obligations that the provisions of this Agreement do not bind such holder.

5.1.5. Waives any rights it may have to claim that the enforceability of this Agreement may be affected by any subsequent modification, release, extension, or other change, material or otherwise, in the Senior Creditor Obligations or the Senior Creditor Collateral.

5.1.6. Will not interfere with Senior Creditor’s notifications to the Debtor's account debtors that proceeds of Accounts should be paid to Senior Creditor and not to Subordinating Creditor.

5.2  The Senior Creditor warrants, covenants, and represents that it:

5.2.1. Is the owner of the Senior Creditor Obligations, free and clear of the claims of any other entity;

5.2.2. Is or will become the secured party of record by the filing of a UCC Financing Statement describing the Senior Creditor Collateral listed on the attached Exhibit B.

5.2.3. Will not, at any time while this Agreement is in effect assign any of the Senior Creditor Obligations to any entity which does not agree in a writing, reasonably satisfactory in form and substance to the Subordinating Creditor (the "Senior Creditor Transfer Document"), to become a Party and to succeed to the rights and to be bound by all of the obligations of the Senior Creditor hereunder.  In the case of any such proposed assignment by the Senior Creditor, it will notify the Subordinating Creditor at least (10) ten days prior to the date of any of such intended disposition and include with such notice a copy of the proposed Senior Creditor Transfer Document.

5.2.4. Will indemnify Subordinating Creditor and hold it harmless against any direct or indirect loss (including attorney’s fees and expenses) arising from the assertion by any holder of the Senior Creditor Obligations that the provisions of this Agreement do not bind such holder.

5.2.5. Waives any rights it may have to claim that the enforceability of this Agreement may be affected by any subsequent modification, release, extension, or other change, material or otherwise, in the Subordinating Creditor Obligations or the Subordinating Creditor Collateral.

5.2.6. Will not interfere with Subordinating Creditor’s efforts to realize on Subordinating Creditor’s Collateral, other than Senior Creditor Priority Collateral.

4

sf-3750113 v3 

6. REMEDY FOR BREACH.

6.1. Any breach hereof is likely to cause irreparable damage to the aggrieved party.  Therefore, the relief to which such party shall be entitled in such event shall include, but not be limited to: (a) a mandatory injunction for specific performance, (b) judicial relief to prevent a violation of any of the provisions of this Agreement, (c) damages, and (d) any other relief to which it may be entitled at law or in equity.

7. AMENDMENT OF SUBORDINATING CREDITOR AGREEMENTS.

7.1. The consent of Subordinating Creditor shall not be required for any amendment of the Senior Creditor Agreements; provided however, no such amendments of the Senior Creditor Agreements shall affect the rights of Subordinating Creditor hereunder.

7.2. The consent of Senior Creditor shall not be required for any further amendment of the Subordinating Creditor Agreements; provided however, no such amendments of the Subordinating Creditor Agreements shall affect the rights of Senior Creditor hereunder.

8. EFFECT OF BANKRUPTCY.

8.1. This Agreement shall remain in full force and effect notwithstanding the filing of a petition for relief by or against the Debtor under the Bankruptcy Code and, without limiting the foregoing shall apply with full force and effect with respect to all Senior Creditor Collateral and Subordinating Creditor Collateral acquired by the Debtor, and obligations incurred by the Debtor to Senior Creditor and the Subordinating Creditor, subsequent to the date of any such petition.

9. NO DUTY TO PROVIDE FINANCIAL ACCOMMODATIONS.

9.1. Nothing contained herein or in any prior agreement or understanding between the Creditors shall be deemed to create any duty on the part of either Creditor to extend or continue to extend financial accommodations to the Debtor.

10. CROSS DEFAULT.

10.1. Notwithstanding anything to the contrary contained in any agreement between Debtor and Senior Creditor, default by Debtor in the performance of its obligations to the Subordinating Creditor shall constitute a default by Debtor in the performance of the Senior Creditor Obligations.

10.2. Notwithstanding anything to the contrary contained in any agreement between Debtor and Subordinating Creditor, default by Debtor in the performance of its obligations to the Senior Creditor shall constitute a default by Debtor in the performance of the Subordinating Creditor Obligations.

5

sf-3750113 v3 

11. CHOICE OF LAW. 

11.1. This Agreement and all transactions contemplated hereunder and/or evidenced hereby shall be governed by, construed under, and enforced in accordance with the internal laws of the Chosen State.  

 

12. AMENDMENT AND WAIVER. 

12.1. Only a writing signed by all parties hereto may amend this Agreement.  No failure or delay in exercising any right hereunder shall impair any such right that Senior Creditor may have, nor shall any waiver by Senior Creditor hereunder be deemed a waiver of any default or breach subsequently occurring.  Either Creditor's rights and remedies herein are cumulative and not exclusive of each other or of any rights or remedies that either Creditor would otherwise have.

13. CONSTRUCTION OF AGREEMENT.

13.1. This Agreement and all agreements relating to the subject matter hereof is the product of negotiation and preparation by and among each party and its respective attorneys.  This Agreement supersedes any and all prior agreements and understandings between the parties regarding the subject matter of this Agreement, including that certain Subordination Agreement dated June 14, 2013, by and among the Debtor, Subordinating Creditor and Senior Creditor.

14. BENEFITS OF THIS AGREEMENT.

14.1. This Agreement is solely for the benefit of and shall bind the Creditors and their respective successors and assigns and no other entity shall have any right, benefit, priority, or interest hereunder.

15. TERM.

15.1. This Agreement shall continue so long as the Senior Creditor holds a security interest in any portion of the Senior Creditor Collateral.

16. ATTORNEY'S FEES.

16.1. In the event that any party finds it necessary to retain counsel in connection with the interpretation, defense, or enforcement of this agreement, the prevailing party shall recover its reasonable attorney's fees and expenses from the unsuccessful party.  It shall be presumed (subject to rebuttal only by the introduction of competent evidence to the contrary) that the amount recoverable is the amount billed to the prevailing party by its counsel and that such amount will be reasonable if based on the billing rates charged to the prevailing party by its 

6

sf-3750113 v3 

counsel in similar matters.

17. COUNTERPARTS.

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

18. NOTICE.

18.1. All notices required to be given to either party hereunder shall be deemed given upon the first to occur of: (a) deposit thereof, postage prepaid, in a receptacle under the control of the United States Postal Service; (b) the first business day following transmittal by electronic means to a device under the control of the party to whom notice is being given; or (c) actual receipt by the party to whom notice is being given, or an employee or agent of thereof.

18.2 The Creditors each agree to file a UCC-3 Amendment in connection with the Financing Statements filed or to be filed in connection with the Senior Creditor Collateral and the Subordinating Creditor Collateral, which shall give notice that such Financing Statements are subject to the terms and conditions of this Subordination Agreement.

SUBORDINATING CREDITOR

PARTY:Five Star Bank

ADDRESS:

OFFICER:Jim Snider, SVP

 

DEBTOR

PARTY:Marrone Bio Innovations, Inc.

ADDRESS:1540 Drew Avenue

Davis, CA 95618

OFFICER:Pamela Marrone, CEO/President

 

 

SENIOR CREDITOR

PARTY:LSQ Funding Group, L.C.

ADDRESS:

OFFICER:William Samuelson, EVP

7

sf-3750113 v3 

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered by their respective officers thereunto duly authorized as of the date first above written.

 

SUBORDINATING CREDITOR:Five Star Bank

 

 

By:  /s/ Jim SnyderJim Snider

SVP

 

 

 

DEBTOR:Marrone Bio Innovations, Inc.

 

 

By: /s/ Pamela Marrone

 

Pamela Marrone

CEO/President

 

 

 

SENIOR CREDITOR:LSQ Funding Group, L.C.

 

 

By:/s/ William Samuelson

                 William Samuelson

EVP & Director of Operations

 

 

8

sf-3750113 v3 

EXHIBIT A

(Subordinating Creditor Financing Statements)

Filing DateFiling NumberFiling Office Jurisdiction

01/03/201220120023053DE

09/03/201420143526878DE

09/03/2014147426716533CA

08/20/201520153643946CA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9

sf-3750113 v3 

EXHIBIT B

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

10

sf-3750113 v3Exhibit

Exhibit 10.1

TWELFTH AMENDMENT TO CREDIT AND SECURITY AGREEMENT
THIS TWELFTH AMENDMENT TO CREDIT AND SECURITY AGREEMENT (this “Amendment”), dated as of March 20, 2017, is entered into by and among NOVATEL WIRELESS, INC., a Delaware corporation (“Novatel”), ENFORA, INC., a Delaware corporation (“Enfora”), and FEENEY WIRELESS, LLC, an Oregon limited liability company (“Feeney Wireless”; Novatel, Enfora and Feeney Wireless are sometimes referred to in this Amendment individually as a “Borrower” and collectively as the “Borrowers”), R.E.R. ENTERPRISES, INC., an Oregon corporation (“RER Enterprises”), and FEENEY WIRELESS IC-DISC, INC., a Delaware corporation (“Feeney Wireless IC-DISC”), INSEEGO CORP. (f/k/a VANILLA TECHNOLOGIES, INC.), a Delaware corporation (“Inseego”; RER Enterprises, Feeney Wireless IC-DISC and Inseego are sometimes referred to in this Amendment individually as a “Guarantor” and collectively as the “Guarantors”), and WELLS FARGO BANK, NATIONAL ASSOCIATION (the “Lender”).  Borrowers and Guarantors are sometimes individually referred to herein as a “Loan Party” and collectively referred to herein as the “Loan Parties”.  Terms used herein without definition shall have the meanings ascribed to them in the Credit Agreement defined below.
RECITALS
A.    The Lender and the Loan Parties have previously entered into that certain Credit and Security Agreement dated as of October 31, 2014 (as amended, modified and supplemented from time to time, the “Credit Agreement”), pursuant to which the Lender has made certain loans and financial accommodations available to Borrowers.
B.    Borrowers and Guarantors have requested that the Lender amend the Credit Agreement as set forth herein, and Lender is willing to amend the Credit Agreement, in each case, on the terms and conditions set forth herein.  
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:
		
	1.
	Amendments to Credit Agreement.

1.1Section 2.4(b) of the Credit Agreement is hereby amended to read in its entirety as follows:
“(b)    Payments by Account Debtors.  (i) Each Loan Party shall instruct all of its Account Debtors to make payments directly to the Collection Account (by wire transfer, ACH, or other means as Lender may direct from time to time), (ii) if any Loan Party receives a payment of the Proceeds of Collateral directly, such Loan Party will promptly deposit the payment or Proceeds into the Collection Account and any funds maintained in any Deposit Account by such Loan Party shall be promptly transferred to the Collection Account, (iii) until so deposited, such Loan Party will hold all such payments and Proceeds in trust for Lender without commingling with other funds or property, and (iv) any collected and immediately available funds received in the Collection Account shall be applied by Lender to the outstanding Obligations (unless Lender is restricted or prohibited from doing so as a matter of law).”

1.2Section 6.12(l) of the Credit Agreement is hereby amended to read in its entirety as follows:
“(l)    Deposit Accounts.  Unless Lender agrees otherwise in writing (in Lender’s sole discretion), each Loan Party agrees not to withdraw any funds from any Deposit Account pledged to Lender pursuant to this Agreement except for (x) any Deposit Accounts identified on Schedule 5.15 to the Information Certificate which are specifically and exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for employees of any Borrower or any Loan Party or any of their respective Subsidiaries, or (y) so long as Lender has not restricted access thereto as a result of the occurrence of any Event of Default, the Designated Account.”
1.3Section 8(a) of the Credit Agreement is hereby amended to read in its entirety as follows:
“(a)    Minimum EBITDA.  Achieve EBITDA, measured monthly, commencing with the month ended January 31, 2017, of not less than the amount set forth in the following table opposite the applicable test date for the applicable test period (numbers appearing between “< >” are negative):
	
		
	Minimum Required EBITDA
	Test Date and Test Period

	$<2,200,000>
	January 31, 2017, for the one month period ending on such date

	$<4,000,000>
	February 28, 2017, for the two month period ending on such date

	$<4,900,000>
	March 31, 2017, for the three month period ending on such date

	$<5,200,000>
	April 30, 2017, for the four month period ending on such date

	$<5,400,000>
	May 31, 2017, for the five month period ending on such date

	$<5,600,000>
	June 30, 2017, for the six month period ending on such date

	$<5,000,000>
	July 31, 2017, for the seven month period ending on such date

	$<4,400,000>
	August 31, 2017, for the eight month period ending on such date

	$<3,900,000>
	September 30, 2017, for the nine month period ending on such date

	$<3,500,000>
	October 31, 2017, for the ten month period ending on such date

	$<3,100,000>
	November 30, 2017, for the eleven month period ending on such date

	$<3,400,000>
	December 31, 2017, for the twelve month period ending on such date

Notwithstanding the foregoing, no later than December 31, 2017, Borrowers and Lender shall agree on new minimum required EBITDA amounts for the measurement periods ending in 2018, and such new minimum required EBITDA amounts shall be reasonably satisfactory to Lender.  Failure to reset the minimum required EBITDA amounts for 2018 by December 31, 2017 (for any reason), shall constitute an immediate Event of Default under this Agreement and the other Loan Documents.”

1.4Section 8(c) of the Credit Agreement is hereby amended to read in its entirety as follows:
“(c)    Minimum Excess Availability and Liquidity.  Borrowers shall maintain (i) so long as Advances are outstanding, (x) at all times (other than on the last Business Day of any calendar month and continuing to and including the first two Business Days of the succeeding calendar month) Excess Availability in an amount equal to or greater than $3,000,000, and (y) on the last Business Day of any calendar month and continuing to and including the first two Business Days of the succeeding calendar month, Liquidity in an amount equal to or greater than $3,000,000, and (ii) so long as no Advances are outstanding, at all times Liquidity in an amount equal to or greater than $3,000,000.”
1.5The definition of “Applicable Margin” set forth in Schedule 1.1 to the Credit Agreement is hereby amended to read in its entirety as follows:
““Applicable Margin” means, with respect to interest accruing on the outstanding Advances and other Obligations, 4.0 percentage points when the interest rate is based on Daily Three Month LIBOR, and 1.5 percentage points when the interest rate is based on the Prime Rate.”
1.6The new defined term “Availability Block Amount” is hereby added to Schedule 1.1 to the Credit Agreement in the appropriate alphabetical position to read in its entirety as follows:
““Availability Block Amount” means $500,000; provided that such amount shall be permanently decreased to zero (-0-) on the first date that (i) Lender has received the results of a collateral examination on or after the Twelfth Amendment Effective Date, the results of which are satisfactory to Lender, and (ii) no Default or Event of Default has occurred and is continuing,”
1.7The definition of “Borrowing Base” set forth in Schedule 1.1 to the Credit Agreement is hereby amended to read in its entirety as follows:
““Borrowing Base” means, as of any date of determination, the result of:
(a)    85% of the amount of Eligible Accounts owned by the Borrowers, plus
(b)    the lower of:
(i)    $2,500,000; or
(ii)    without duplication of clause (a) above, 85% of the amount of Eligible Foreign Accounts, minus
(c)    the Availability Block Amount, minus
(d)    the aggregate amount of Reserves, if any, established by Lender.”
1.8The definition of “Collection Account” set forth in Schedule 1.1 to the Credit Agreement is hereby amended to read in its entirety as follows:
““Collection Account” means, with respect to any Loan Party, such Loan Party’s Deposit Account identified on Schedule A-1.”
1.9The definition of “Designated Account” set forth in Schedule 1.1 to the Credit Agreement is hereby amended to read in its entirety as follows:
““Designated Account” means, with respect to any Borrower, such Borrower’s operating Deposit Account maintained with Lender identified on Schedule D-1.”

1.10The definition of “Covenant Threshold” set forth in Schedule 1.1 to the Credit Agreement is hereby deleted in its entirety.  
1.11Clauses (a) and (k) of the definition of “Eligible Accounts” set forth in Schedule 1.1 to the Credit Agreement are each hereby amended to read in its entirety as follows:
“(a)    Accounts that the Account Debtor (other than Verizon and/or its Affiliates (“Verizon”)) has failed to pay within 60 days of original due date, not to exceed 90 days past invoice date, and Accounts that Verizon has failed to pay (i) during the period from the Twelfth Amendment Effective Date through and including June 15, 2017, within 45 days of original due date, not to exceed 75 days past invoice date, and (ii) during the period from June 16, 2017 and at all times thereafter, within 60 days of original due date, not to exceed 90 days past invoice date;”
“(k)    Accounts owing by a single Account Debtor or group of Affiliated Account Debtors (other than Verizon) whose total obligations owing to Borrower exceed fifteen percent (15%) of the aggregate amount of all otherwise Eligible Accounts, and such Accounts owing by Verizon which exceed the following percentages of the aggregate amount of all otherwise Eligible Accounts for the applicable periods related thereto: (i) from the Twelfth Amendment Effective Date through and including June 15, 2017, sixty percent (60%), and (ii) from June 16, 2017 and at all times thereafter, fifty percent (50%) (but the portion of the Accounts not in excess of the foregoing applicable percentages may be deemed Eligible Accounts), such percentages being subject to reduction if the creditworthiness of such Account Debtor deteriorates;”  
1.12The definition of “Liquidity” set forth in Schedule 1.1 to the Credit Agreement is hereby amended to read in its entirety as follows:
““Liquidity” means, as of any date of determination, the sum of (i) Excess Availability, plus (ii) Qualified Cash; provided that (A) for purposes of clause (o) of the defined term “Permitted Investments”, the amount included in this clause (ii) in order to calculate Liquidity shall in no event exceed (x) during the period from June 22, 2016 through January 31, 2017, so long as no Advances are outstanding as of such date, more than 66 2/3% of the Liquidity as of any date of determination, and (y) at any time other than the period described in the immediately preceding clause (x) more than 50% of the Liquidity as of any date of determination, and (B) for purposes of Section 8(c)(ii), so long as any Letter of Credit is outstanding, the amount included in the foregoing clause (i) in order to calculate Liquidity shall in no event be less than $1,175,000.”
1.13The definition of “Maximum Revolver Amount” set forth in Schedule 1.1 to the Credit Agreement is hereby amended to read in its entirety as follows:
““Maximum Revolver Amount” means $10,000,000, decreased by permanent reductions in such amount made in accordance with Section 2.11.”
1.14The new defined term “Twelfth Amendment Effective Date” is hereby added to Schedule 1.1 to the Credit Agreement in the appropriate alphabetical position to read in its entirety as follows:
““Twelfth Amendment Effective Date” means March 20, 2017.”
1.15Schedule 2.12 to the Credit Agreement is hereby amended to read in its entirety as set forth on Annex A attached to this Amendment:
1.16Schedule 6.2 to the Credit Agreement is hereby amended to read in its entirety as set forth on Annex B attached to this Amendment.

1.17Schedule 1 to the form of Compliance Certificate attached as Exhibit A to the Credit Agreement is hereby amended to read in its entirety as set forth on Annex C attached to this Amendment.  
1.18Schedule A-1 to the Credit Agreement is hereby amended to read in its entirety as set forth on Annex D attached to this Amendment.  
1.19Schedule D-1 to the Credit Agreement is hereby amended to read in its entirety as set forth on Annex E attached to this Amendment.  
2.Amendment to Eleventh Amendment.  Section 2 of the Eleventh Amendment is hereby amended by deleting the reference to “February 28, 2017” that appears therein and replacing it with “June 30, 2017 (or such later date as Lender may agree to in its sole discretion)”.
3.Accommodation Fees.  Borrowers shall pay Lender, in lieu of the amounts due pursuant to Schedule 2.12 of the Credit Agreement with respect to the reduction of the Maximum Revolving Amount on the date hereof, the following accommodation fees:
3.1A fee in the amount of $50,000 (the “Twelfth Amendment Accommodation Fee”), which is fully earned and non-refundable as of the date of this Amendment, and due payable upon execution of this Amendment by Borrowers, Guarantors and Lender. 
3.2A fee in the amount of $50,000 in the event the Sale (as defined in the Eleventh Amendment) has not been consummated by June 30, 2017, which shall be fully earned and non-refundable, and due and payable, on such date.  
4.Effectiveness of this Amendment.  This Amendment shall be effective upon Lender’s receipt of the following items, in form and content acceptable to the Lender:
4.1This Amendment, duly executed in a sufficient number of counterparts for distribution to all parties;
4.2The Twelfth Amendment Accommodation Fee;
4.3A certificate from the Secretary or Assistant Secretary of each Loan Party (i) attesting to the Governing Documents of such Loan Party, (ii) attesting to the resolutions of the Board of such Loan Party, authorizing its execution, delivery, and performance of this Amendment and the other Loan Documents to which such Loan Party is a party, (iii) authorizing specific officers of such Loan Party to execute the same, and (iv) attesting to the incumbency and signatures of such specific officers of such Loan Party;
4.4The representations and warranties set forth in this Amendment must be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof); and
4.5All other documents and legal matters in connection with the transactions contemplated by this Amendment shall have been delivered or executed or recorded, as reasonably required by the Lender.
5.Extension of Post-Amendment Covenants.  Lender hereby extends the due date for the post-closing obligation set forth in (i) Section 6.1 of the Joinder and Tenth Amendment to Credit and Security Agreement and other Loan Documents and Consent, dated as of November 8, 2016, by and among the Borrowers, Guarantors and Lender (the “Tenth Amendment”), to April 30, 2017 (or such later date as Lender may agree to in its sole discretion), and (ii) Section 6.2 of the Tenth Amendment to the date that is 15 Business Days following the date of this Amendment (or such later date as Lender may agree to in its sole discretion).

6.Representations and Warranties.  Each Loan Party represents and warrants as follows:
6.1Authority.  Each Loan Party has the requisite corporate or limited liability company, as applicable, power and authority to execute and deliver this Amendment, and to perform its obligations hereunder and under the Loan Documents (as amended or modified hereby) to which it is a party.  The execution, delivery and performance by the Loan Parties of this Amendment have been duly approved by all necessary corporate or limited liability company, as applicable, action and no other corporate or limited liability company, as applicable, proceedings are necessary to consummate such transactions.
6.2Enforceability.  This Amendment has been duly executed and delivered by the Loan Parties.  This Amendment and each Loan Document (as amended or modified hereby) is the legal, valid and binding obligation of each Loan Party, enforceable against each Loan Party in accordance with its terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors’ rights generally, and is in full force and effect.
6.3Representations and Warranties.  The representations and warranties contained in each Loan Document (other than any such representations or warranties that, by their terms, are specifically made as of a date other than the date hereof) are true and correct in all material respects on and as of the date hereof as though made on and as of the date hereof.
6.4Due Execution.  The execution, delivery and performance of this Amendment are within the corporate or limited liability company, as applicable, power of each Loan Party, have been duly authorized by all necessary action, have received all necessary governmental approval, if any, and do not contravene any law or any contractual restrictions binding on any Loan Party except to the extent that any such contravention could not individually or in the aggregate reasonably be expected to cause a Material Adverse Change.
6.5No Default.  Upon the effectiveness of this Amendment, no event has occurred and is continuing that constitutes a Default or an Event of Default.
7.No Waiver.  Except as otherwise expressly provided herein, the execution of this Amendment and the acceptance of all other agreements and instruments related hereto shall not be deemed to be a waiver of any Default or Event of Default under the Credit Agreement or a waiver of any breach, default or event of default under any other Loan Document or other document held by Lender, whether or not known to Lender and whether or not existing on the date of this Amendment.
8.Release.  Each of the Loan Parties hereby absolutely and unconditionally releases and forever discharges Lender, and any and all participants, parent corporations, subsidiary corporations, affiliated corporations, insurers, indemnitors, successors and assigns thereof, together with all of the present and former directors, officers, agents and employees of any of the foregoing, from any and all claims, demands or causes of action of any kind, nature or description, whether arising in law or equity or upon contract or tort or under any state or federal law or otherwise, which the Loan Parties have had, now have or have made claim to have against any such person for or by reason of any act, omission, matter, cause or thing whatsoever arising from the beginning of time to and including the date of this Amendment, whether such claims, demands and causes of action are matured or unmatured or known or unknown.  It is the intention of the Loan Parties in executing this release that the same shall be effective as a bar to each and every claim, demand and cause of action specified and in furtherance of this intention the Loan Parties each waives and relinquishes all rights and benefits under Section 1542 of the Civil Code of the State of California, which provides:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MIGHT HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”
The parties acknowledge that each may hereafter discover facts different from or in addition to those now known or believed to be true with respect to such claims, demands, or causes of action and agree that this instrument shall be and remain effective in all respects notwithstanding any such differences or additional facts.
9.Costs and Expenses.  Borrowers hereby reaffirm their agreement under the Credit Agreement to pay or reimburse Lender on demand for all Lender Expenses incurred by Lender in connection with the Loan Documents. Without limiting the generality of the foregoing, Borrowers specifically agree to pay all reasonable and documented (to the extent such documentation is reasonably requested by Borrowers) out-of-pocket fees and disbursements of counsel to Lender for the services performed by such counsel in connection with the preparation of this Amendment and the documents and instruments incidental hereto.  Borrowers hereby agree that Lender may, at any time or from time to time in its sole discretion and without further authorization by Borrowers, make an Advance to the Borrowers under the Credit Agreement, or apply the proceeds of any Advance, for the purpose of paying any such fees, disbursements, costs and expenses.
10.Choice of Law; Venue; Jury Trial Waiver; Arbitration.  The validity of this Amendment, its construction, interpretation and enforcement, and the rights of the parties hereunder shall be determined under, governed by, and construed in accordance with the internal laws of the State of California governing contracts only to be performed in that State.  All of the terms of Section 13 of the Credit Agreement are hereby incorporated by reference into this Amendment, mutatis mutandis.
11.Counterparts.  This Amendment may be executed in any number of counterparts and by different parties and separate counterparts, each of which when so executed and delivered, shall be deemed an original, and all of which, when taken together, shall constitute one and the same instrument.  Delivery of an executed counterpart of a signature page to this Amendment by telefacsimile or “pdf” file or other similar method of electronic transmission shall be effective as delivery of a manually executed counterpart of this Amendment.
12.Reference to and Effect on the Loan Documents.
12.1Upon and after the effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to “the Credit Agreement”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as modified and amended hereby.
12.2Except as specifically amended by this Amendment, the Credit Agreement and all other Loan Documents, are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed and shall constitute the legal, valid, binding and enforceable obligations of the Loan Parties to the Lender and Bank Product Providers, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors’ rights generally.

12.3The 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 the Lender under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.
12.4To the extent that any terms and conditions in any of the Loan Documents shall contradict or be in conflict with any terms or conditions of the Credit Agreement, after giving effect to this Amendment, such terms and conditions are hereby deemed modified or amended accordingly to reflect the terms and conditions of the Credit Agreement as modified or amended hereby.
12.5This Amendment shall be deemed to be a “Loan Document” (as defined in the Credit Agreement).
13.Ratification.  The Loan Parties each hereby restate, ratify and reaffirm each and every term and condition set forth in the Credit Agreement and the other Loan Documents to which it is a party, in each case as amended by this Amendment, effective as of the date hereof.
14.Estoppel.  To induce the Lender to enter into this Amendment and to continue to make Advances or issue Letters of Credit to or for the account of the Borrowers under the Credit Agreement, the Loan Parties each hereby acknowledges and agrees that, as of the date hereof, there exists no right of offset, defense, counterclaim or objection in favor of the Loan Parties as against the Lender or any Bank Product Provider with respect to the Obligations.
15.Integration; Conflict; Successors and Assigns; Amendment.  This Amendment, together with the other Loan Documents, incorporates all negotiations of the parties hereto with respect to the subject matter hereof and is the final expression and agreement of the parties hereto with respect to the subject matter hereof.  In the event of any conflict between this Amendment and the Credit Agreement, the terms of this Amendment shall govern.  This Amendment shall bind and inure to the benefit of the respective successors and assigns of each of the parties, subject to the provisions of the Credit Agreement and the other Loan Documents.  No amendment or modification of this Amendment shall be effective unless it has been agreed to by Lender in a writing that specifically states that it is intended to amend or modify this Amendment.
16.Severability.  In case any provision in this Amendment shall be invalid, illegal or unenforceable, such provision shall be severable from the remainder of this Amendment and the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.
[signature pages follow]

IN WITNESS WHEREOF, the parties have entered into this Amendment as of the date first above written.
	
		
	BORROWERS:

	 
	 

	NOVATEL WIRELESS, INC.

	 
	 

	By:
	/s/ Michael Newman

	Name:
	Michael Newman

	Title:
	Chief Financial Officer

	 
	 

	ENFORA, INC.

	 
	 

	By:
	/s/ Michael Newman

	Name:
	Michael Newman

	Title:
	Chief Financial Officer

	 

	FEENEY WIRELESS, LLC

	 
	 

	By:
	/s/ Michael Newman

	Name:
	Michael Newman

	Title:
	Secretary

	 
	 

	GUARANTORS:

	 

	R.E.R. ENTERPRISES, INC.

	 
	 

	By:
	/s/ Michael Newman

	Name:
	Michael Newman

	Title:
	Secretary

	 
	 

	FEENEY WIRELESS IC-DISC, INC.

	 
	 

	By:
	/s/ Michael Newman

	Name:
	Michael Newman

	Title:
	Secretary

	 
	 

	INSEEGO CORP.

	 
	 

	By:
	/s/ Michael Newman

	Name:
	Michael Newman

	Title:
	Chief Financial Officer

LENDER:
	
		
	WELLS FARGO BANK, 
NATIONAL ASSOCIATION

	 
	 

	By:
	/s/ Robin Van Meter

	Name:
	Robin Van Meter

	Title:
	Authorized Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00271-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00271-of-00352.parquet"}]]