Document:

shbi_Ex10_3

		
			Exhibit 10.3
		

		
			SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
		

		
			This SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (this “Agreement”) is made and entered into this 19th day of July, 2019  (the “Effective Date”), by and among SHORE UNITED BANK,  a  Maryland bank (the “Bank”), and Donna Stevens (the “Executive”). Capitalized terms used herein are defined in Section 10 of this Agreement.
		

		
			 
		

		
			BACKGROUND
		

		
			 
		

		
			To incentivize the Executive to devote his full business time, attention, and energies to the business of the Bank,  the Bank and the Executive desire to enter into this Agreement to establish the terms and conditions of the nonqualified supplemental executive retirement plan to be maintained by the Bank on the Executive’s behalf.
		

		
			 
		

		
			AGREEMENT
		

		
			In consideration of the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, intending to be legally bound hereby, the parties hereby agree as follows:
		

		
			1.          General Terms and Conditions.  The Bank hereby establishes a nonqualified supplemental executive retirement plan for the benefit of the Executive.  Section 2 below describes the benefits available to the Executive, or the Executive’s Beneficiary, upon the occurrence of certain events as described in, and subject to the terms and conditions of, this Agreement; provided the Executive remains in the Continuous Service of the Bank from the Effective Date until the specified event. Each benefit described in Section 2 is in lieu of any other benefit therein.  No benefits under this Agreement shall be payable with respect to any event other than the events described below, and the benefits otherwise payable pursuant to Section 2 below are subject to the further limitations in Section 2(f) and (g).
		

		
			2.          Retirement Benefits.
		

		
			(a)         Termination on or after Normal Retirement Age.  If Executive remains in the Continuous Service of the Bank until on or after attaining Normal Retirement Age, then following the date on which the Executive experiences a Separation from Service on or after Normal Retirement Age (the “Normal Retirement Date”) for any reason other than (i) discharge of the Executive by the Bank for Cause, (ii) because the Executive dies or becomes Permanently Disabled or (iii) on or within twelve (12) months following the effective date of a Change in Control, the Bank shall pay to the Executive the Normal Retirement Benefit each year for ten (10) years.  Payment of the Normal Retirement Benefit shall commence upon the Executive’s Normal Retirement Date, beginning with the month immediately following the Executive’s Normal Retirement Date, and be paid in twelve (12) equal monthly installments (without interest) on the first day of each month thereafter until paid in full.
		

		
			(b)         Termination Prior to Normal Retirement Age.  If the Executive experiences a Separation from Service prior to attaining Normal Retirement Age for any reason other than (i) discharge of the Executive by the Bank for Cause, (ii) because the Executive dies or becomes Permanently Disabled or (iii)  on or within twelve (12) months following the effective date of a Change in Control,  then the Bank shall pay to the Executive in a single lump sum on or within thirty (30) days after the Executive’s Separation from Service an amount equal to the Accrual
		

		
			
		

		
			

		 

		

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			Balance as of the date of Executive’s Separation from Service.
		

		
			(c)         Termination in Connection with a Change in Control.  If before, on or after Normal Retirement Age,  the Executive experiences a Separation from Service on or within the twelve (12) months following the effective date of a Change in Control for any reason other than (i) discharge of the Executive by the Bank for Cause or (ii)  because the Executive dies or becomes Permanently Disabled,  then the Bank shall pay to the Executive in a single lump sum on or within thirty (30) days after the Executive’s Separation from Service an amount equal to the present value of the Participant’s Normal Retirement Benefit discounted using the current discount rate being utilized to calculate GAAP liabilities and assuming payments commence immediately.
		

		
			(d)         Disability.  If Executive becomes Permanently Disabled while in the Continuous Service of the Bank and before any event described in Subsections (a), (b) or (c) above, the Bank shall pay to the Executive in a single lump sum on or within thirty (30) days following the date on which the Executive becomes Permanently Disabled an amount equal to the Accrual Balance as of the date Executive becomes Permanently Disabled.
		

		
			(e)         Death.  If the Executive dies while in the Continuous Service of the Bank and before the occurrence of any event triggering the Executive’s entitlement to a benefit under this Section 2, then no benefits shall be paid under this Agreement.  If Executive dies after the occurrence of any event triggering the Executive’s entitlement to a benefit under this Section 2 and prior to payment of the entire Accrual Balance, the Executive’s Beneficiary shall receive in a single lump sum on or within thirty (30) days after the Executive’s death an amount equal to the remaining Accrual Balance at the time of Executive’s death.
		

		
			(f)         Forfeiture of Benefits; Regulatory Limitations.  Notwithstanding any other provision of this Agreement, if  (i) the Bank discharges the Executive for Cause, or grounds exist for the Bank to discharge the Executive for Cause, regardless of whether an event triggering an entitlement to a benefit under Subsection (a) through (e) has occurred, no benefits shall be paid under this Agreement and any previously paid amounts shall be repaid to Bank by Executive upon five (5) days’ notice.  The obligations of the Bank under this Agreement are further subject to its adherence to applicable state and federal banking regulations, rules, or statutes.
		

		
			(g)         Temporary Suspension Applicable to a Specified Employee.  Notwithstanding the foregoing provisions of this Section 2, if Executive is a “specified employee,” within the meaning of Code Section 409A, as of the date of Executive’s  Separation from Service with the Bank other than by reason of death, payment of benefit amounts otherwise due shall be delayed to the extent necessary under Code Section 409A until the earlier of six (6) months after Separation from Service or the date of Executive’s death, as applicable.  Any payments that are so delayed shall be paid in a single lump sum in cash in the seventh month following Executive’s  Separation from Service, or within thirty (30) days after the Executive’s death, if earlier.
		

		
			3.          Amendment; Termination.  This Agreement may be amended or terminated only by a written agreement signed by the Bank and the Executive.  The Bank may unilaterally amend the Agreement to conform with written directives to the Bank to comply with legislative changes or tax law, including, without limitation, Code Section 409A and any and all Treasury regulations and guidance promulgated thereunder.  No amendment shall provide for or otherwise permit any acceleration of the time or schedule of any payment under the Agreement in a manner that would be prohibited under Code Section 409A.  No waiver of any provision contained in this Agreement shall be effective unless it is in writing and signed by the party against whom such waiver is asserted.  Notwithstanding the preceding provisions of this Section 3, the Bank may elect to terminate the Agreement under any circumstances permitted by Treasury
		

		
			
		

		
			

		 

		

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			Regulations Section 1.409A-3(j)(4)(ix).  In any such event, the Bank shall distribute to the Executive the Accrual Balance in a single lump sum at the earliest date permitted under such Treasury Regulations.  The amount of the benefit (but not the timing of payment) shall be determined as if the effective date of the termination of the Agreement constituted an involuntary discharge by the Bank other than for Cause on or within twelve (12) months following a Change in Control.
		

		
			4.          ERISA Provisions.
		

		
			(a)         Plan Administrator Duties.  This Agreement shall be administered by the Board of Directors of the Bank (the “Board of Directors”), or such committee or person(s) as the Board of Directors shall appoint,  except that the Executive may not participate in any such actions and will excuse himself from participating in any such matter involving himself and/or this Agreement.  The Board of Directors, (or its delegatee(s)) in its capacity as the “administrator” of the Agreement for purposes of ERISA, shall have the discretion and authority to (i) make, amend, interpret and enforce all appropriate rules and regulations for the administration of this Agreement; and (ii) decide or resolve any and all questions including interpretations of this Agreement, as may arise in connection with the Agreement.  The decision or action of the Board of Directors (or its delegatee) with respect to any question arising out of or in connection with the administration, interpretation and application of the Agreement and the rules and regulations promulgated hereunder shall be final, conclusive and binding upon all persons having any interest in the Agreement.  The “Named Fiduciary” under the Agreement is the Bank.
		

		
			(b)         Claims Procedures.
		

		
			(i)          Notice of Denial.
		

		
			(1)         If Executive or a Beneficiary (a “claimant”) is denied a claim for benefits under this Agreement, the Claims Administrator shall provide to the claimant written notice of the adverse benefit determination (whether such claim is denied in whole or in part) within a reasonable period of time but no later than ninety (90) days after the Claims Administrator receives the claim.  However, under special circumstances (to be determined by the Claims Administrator), the Claims Administrator may extend the time for processing the claim to a day no later than one hundred eighty (180) days after the Claims Administrator receives the claim.  The claimant shall be notified in writing within the initial 90-day period of the need to extend the time for review, the special circumstances requiring an extension, and the date by which a decision is expected.
		

		
			(2)         With respect to a claim for benefits due to Executive being Permanently Disabled, the Claims Administrator shall provide to the claimant written notice of the adverse benefit determination within a reasonable period of time but no later than forty-five (45) days after the Claims Administrator receives the claim.  This 45-day period may be extended up to thirty (30) days if an extension is necessary due to matters beyond the control of the Agreement (to be determined by the Claims Administrator) and the claimant is notified, prior to the expiration of the initial 45-day period, of the circumstances requiring the extension of time and the date by which the Claims Administrator expects to render a decision.  If, prior to the end of the first 30-day extension period, the Claims Administrator determines that, due to matters beyond the control of the Agreement (to be determined by the Claims Administrator), a decision cannot be rendered within that extension period, the period for making the determination may be
		

		
			
		

		
			

		 

		

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			extended for up to an additional thirty (30) days, provided that the Claims Administrator notifies the claimant, prior to the expiration of the initial 30-day extension period, of the circumstances requiring the extension and the date as of which the Claims Administrator expects to render a decision.  In the case of any such extension, the notice of extension shall also specifically explain the standards on which entitlement to a benefit is based, the unresolved issues that prevent a decision on the claim, and the additional information needed to resolve those issues, and the claimant shall have at least forty-five (45) days within which to provide the specified information, if any.
		

		
			(ii)         Contents of Notice of Denial.  If a claimant is denied a claim for benefits under this Agreement, the Claims Administrator shall provide to such claimant written notice of the denial.  Any such notice of an adverse benefit determination shall be written in a manner calculated to be understood by the claimant (and with respect to a claim for benefits due to Executive being Permanently Disabled, be provided in a culturally and linguistically appropriate manner) and shall set forth:
		

		
			(1)         the specific reason or reasons for the denial;
		

		
			(2)         specific references to the pertinent provisions of this Agreement on which the denial is based;
		

		
			(3)         a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary;
		

		
			(4)         an explanation of this Agreement’s claim review procedures, and the time limits applicable to such procedures, including a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse benefit determination on review;
		

		
			(5)         in the case of a claim for benefits due to Executive being Permanently Disabled:
		

		
			(A)        a discussion of the decision, including an explanation of the basis for disagreeing with or not following: the views presented by the claimant to the Agreement of health care professionals treating the claimant and vocational professionals who evaluated the claimant, the views of medical or vocational experts whose advice was obtained on behalf of the Agreement in connection with a claimant’s adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination, and a disability determination regarding the claimant presented by the claimant to the Agreement made by the Social Security Administration;
		

		
			(B)        if the adverse benefit determination is based on a medical necessity or experimental treatment or similar exclusion or limit, either an explanation of the scientific or clinical judgment for the determination, applying the terms of the Agreement to the claimant’s medical circumstances, or a statement that such explanation will be provided free of charge upon request in writing;
		

		
			
		

		
			

		 

		

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			(C)        the specific internal rules, guidelines, protocols, standards or other similar criteria of the Agreement relied upon in making the adverse determination, or, alternatively, a statement that such rules, guidelines, protocols, standards or other similar criteria of the Agreement do not exist; and
		

		
			(D)        a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant’s claim for benefits.
		

		
			(iii)       Right to Review.  After receiving written notice of the denial of a claim, a claimant or his representative shall be entitled to:
		

		
			(1)         submit written comments, documents, records, and other information relating to the denied claim to the Claims Administrator or Appeals Fiduciary, as applicable; and
		

		
			(2)         request, free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claim
		

		
			(3)         request a full and fair review of the denial of the claim by written application to the Claims Administrator (or Appeals Fiduciary in the case of a claim for benefits payable due to Executive being Permanently Disabled), which shall include:
		

		
			(A)        a review that takes into account all comments, documents, records, and other information submitted by the claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination; and
		

		
			(B)        in the case of a claim for benefits due to Executive being Permanently Disabled:
		

		
			i.           before issuing an adverse benefit determination on review, providing the claimant, free of charge with any new or additional evidence considered, relied upon, or generated by the Agreement or other person making the benefit determination (or at the direction of the Agreement or such other person) in connection with the claim as soon as possible and sufficiently in advance of the date on which the notice of adverse benefit determination on review is required to be provided to give the claimant a reasonable opportunity to respond prior to that date; and
		

		
			ii.          before issuing an adverse benefit determination on review based on a new or additional rationale, providing the claimant, free of charge, with the rationale as soon as possible and sufficiently in advance of the date on which the notice of adverse benefit determination on review is required to be provided to give the claimant a reasonable opportunity to respond prior to that date.
		

		
			(iv)        Application for Review.
		

		
			(1)         If a claimant wishes a review of the decision denying his claim to benefits under this Agreement, other than a claim described in paragraph (2) of this
		

		
			
		

		
			

		 

		

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			Section 4(b)(iv), he must submit the written application to the Claims Administrator within sixty (60) days after receiving written notice of the denial.
		

		
			(2)         If the claimant wishes a review of the decision denying his claim to benefits under this Agreement due to Executive being Permanently Disabled, he must submit the written application to the Appeals Fiduciary within one hundred eighty (180) days after receiving written notice of the denial.
		

		
			(v)         Hearing.  Upon receiving such written application for review, the Claims Administrator or Appeals Fiduciary, as applicable, may schedule a hearing for purposes of reviewing the claimant’s claim, which hearing shall take place not more than thirty (30) days from the date on which the Claims Administrator or Appeals Fiduciary received such written application for review.
		

		
			(vi)        Notice of Hearing.  At least ten (10) days prior to the scheduled hearing, the claimant and his representative designated in writing by him, if any, shall receive written notice of the date, time, and place of such scheduled hearing.  The claimant or his representative, if any, may request that the hearing be rescheduled, for his convenience, on another reasonable date or at another reasonable time or place.
		

		
			(vii)       Counsel.  All claimants requesting a review of the decision denying their claim for benefits may employ counsel for purposes of the hearing.
		

		
			(viii)     Decision on Review.  No later than sixty (60) days (forty-five (45) days with respect to a claim for benefits due to Executive being Permanently Disabled) following the receipt of the written application for review, the Claims Administrator or the Appeals Fiduciary, as applicable, shall submit its decision on the review in writing to the claimant involved and to his representative, if any, unless the Claims Administrator or Appeals Fiduciary determines that special circumstances (such as the need to hold a hearing) require an extension of time, to a day no later than one hundred twenty (120) days (ninety (90) days with respect to a claim for benefits due to Executive being Permanently Disabled) after the date of receipt of the written application for review.  If the Claims Administrator or Appeals Fiduciary determines that the extension of time is required, the Claims Administrator or Appeals Fiduciary shall furnish to the claimant written notice of the extension before the expiration of the initial sixty (60) day (forty-five (45) days with respect to a claim for benefits due to Executive being Permanently Disabled) period.  The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Claims Administrator or Appeals Fiduciary expects to render its decision on review.  In the case of a decision adverse to the claimant, the Claims Administrator or Appeals Fiduciary shall provide to the claimant written notice of the denial.  Any such notice of an adverse benefit determination shall be written in a manner calculated to be understood by the claimant (and with respect to a claim for benefits due to Executive being Permanently Disabled, be provided in a culturally and linguistically appropriate manner) and shall include:
		

		
			(1)         the specific reason or reasons for the adverse benefit determination;
		

		
			(2)         specific references to the pertinent provisions of this Agreement on which the adverse benefit determination is based;
		

		
			
		

		
			

		 

		

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			(3)         a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant’s claim for benefits;
		

		
			(4)         a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA following the adverse benefit determination on review;
		

		
			(5)         a statement regarding the availability of other voluntary alternative dispute resolution options;
		

		
			(6)         in the case of a claim for benefits due to Executive being Permanently Disabled:
		

		
			(A)        a description of any contractual limitations period that applies to the claimant’s right to bring a civil action under Section 502(a) of ERISA, including the calendar date on which the contractual limitations period expires for the claim;
		

		
			(B)        a discussion of the decision, including an explanation of the basis for disagreeing with or not following: the views presented by the claimant to the Agreement of health care professionals treating the claimant and vocational professionals who evaluated the claimant, the views of medical or vocational professionals whose advice was obtained on behalf of the Agreement in connection with a claimant’s adverse benefit determination, without regard to whether the advice was relied upon in making the determination, and a disability determination regarding the claimant presented by the claimant to the Agreement made by the Social Security Administration;
		

		
			(C)        if the adverse benefit determination is based on a medical necessity or experimental treatment or similar exclusion or limit, either an explanation of the scientific or clinical judgment for the determination, applying the terms of the Agreement to the claimant’s medical circumstances, or a statement that such explanation will be provided free of charge upon request; and
		

		
			(D)        the specific internal rules, guidelines, protocols, standards or other similar criteria of the Agreement relied upon in making the adverse determination, or a statement that such rules, guidelines, protocols, standards or other similar criteria do not exist.
		

		
			The Claims Administrator has the discretionary authority to determine all interpretative issues arising under this Agreement and the interpretations of the Claims Administrator shall be final and binding upon Executive or any other party claiming benefits under this Agreement.
		

		
			(ix)        Calculating Time Periods.  The period of time within which a benefit determination initially or on review is required to be made shall begin at the time a claim or request for review is filed in accordance with the procedures of the Agreement, without regard to whether all the information necessary to make a benefit determination accompanies the filing.  In the event that a period of time is extended due to the failure of a claimant to submit information necessary to decide a claim or review, the period for
		

		
			
		

		
			

		 

		

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			making the benefit determination shall be tolled from the date on which the notification of the extension is sent to the claimant until the date on which the claimant responds to the request for additional information.
		

		
			(x)         Standards for Culturally and Linguistically Appropriate Notices.  With respect to any notices required to be provided in a culturally and linguistically appropriate manner, the Agreement shall provide (i) oral language services in the applicable non-English language (that include answering questions in any applicable non-English language and providing assistance with filing claims in any applicable non-English language), (ii) a statement in the applicable non-English language, prominently displayed on notices, explaining how to access language services and (iii) notices in the applicable non-English language upon request. For this purpose, a non-English language is an applicable non-English language if 10% or more of the population residing in the county for which the notice is sent is literate only in the same non-English language.
		

		
			(xi)        Adjudication of Disability Benefit Claims: Independence and Impartiality.  All claims and appeals with respect to benefits due to Executive being Permanently Disabled shall adjudicated in a manner designed to ensure the independence and impartiality of the persons involved in making the decision.  Accordingly, decisions regarding hiring, compensation, termination, promotion, or other similar matters with respect to any individual (such as a claims adjudicator or medical or vocational expert) shall not be based upon the likelihood that the individual will support the denial of benefits.
		

		
			(xii)       Exhaustion of Administrative Remedies Available under the Agreement.
		

		
			(1)         In no event will Executive be entitled to challenge the Claims Administrator’s decision in court or any other proceeding unless and until these claims procedures are exhausted.  The Executive then shall have one hundred eighty (180) days from the date of receipt of the Claims Administrator’s decision on appeal in which to file suit regarding a claim for benefits under this Agreement.  If suit is not filed within such one hundred eighty (180)-day period, it shall be forever barred.
		

		
			(2)         Notwithstanding the foregoing, in the case of a claim for benefits due to Executive being Permanently Disabled, if the Claims Administrator or Appeals Fiduciary, as applicable, fails to strictly adhere to all the applicable requirements hereunder, the claimant is deemed to have exhausted the administrative remedies available under the Agreement, except as provided in the paragraph below with respect to de minimis violations.  If the claimant chooses to pursue remedies under Section 502(a) of ERISA under such circumstances, the claim or appeal is deemed denied on review without the exercise of discretion by an appropriate fiduciary.
		

		
			The administrative remedies available under the Agreement will not be deemed exhausted based on de minimis violations that do not cause, and are not likely to cause, prejudice or harm to the claimant, provided the Agreement demonstrates that the violation was for good cause or due to matters beyond the control of the Agreement and that the violation occurred in the context of an ongoing, good faith exchange of information between the Agreement and the claimant. A violation shall not be de minimis if it is part of a pattern or practice of violations by the Agreement.  The claimant may request a written explanation of the violation from the Agreement, and the Agreement must provide such explanation within ten (10) days, including a specific description of its bases, if any, for asserting that the violation
		

		
			
		

		
			

		 

		

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			should not cause the available administrative remedies to be deemed exhausted. If a court rejects the claimant’s request for immediate review on the basis that the Agreement met the standards for the de minimis exception the claim shall be considered as refiled on appeal upon the Agreement’s receipt of the court’s decision. Within a reasonable time after the receipt of the decision, the Agreement shall provide the claimant with notice of the resubmission.
		

		
			(xiii)     Definitions.  For purposes of the Agreement’s claims procedures, the following words and phrases shall have the respective meanings set forth below:
		

		
			(1)         “Adverse benefit determination” means any of the following: a denial, reduction or termination of, or a failure to provide or make payment (in whole or in part) for, a benefit, including any such denial, reduction, termination, or failure to provide or make payment that is based on a determination of a claimant’s eligibility to participate in a plan and with respect to a claim for benefits due to Executive being Permanently Disabled, shall also mean any rescission of disability coverage with respect to a Participant or Beneficiary (whether or not there is an adverse effect on any particular benefit at that time), where rescission means a cancellation or discontinuance of coverage that has retroactive effect, except to the extent it is attributable to a failure to timely pay required premiums or contributions towards the cost of coverage.
		

		
			(2)           “Appeals Fiduciary” means an individual or group of individuals appointed by the Claims Administrator to review appeals of claims for benefits payable due to the Executive being Permanently Disabled made pursuant to this Subsection (b).
		

		
			(3)         “Claims Administrator”  means the Board of Directors or such other person designated by the Board of Directors from time to time and named by notice to Executive.
		

		
			(4)         A document, record, or other information shall be considered “relevant” to a claimant’s claim if such document, record, or other information (A) was relied upon in making the benefit determination, (B) was submitted, considered, or generated in the course of making the benefit determination, without regard to whether such document, record, or other information was relied upon in making the benefit determination, (C) demonstrates compliance with the administrative processes and safeguards required in making the benefit determination, or (D) in the case of a claim for benefits due to Executive being Permanently Disabled, constitutes a statement of policy or guidance with respect to the Agreement concerning the denied treatment option or benefit for the claimant’s diagnosis, without regard to whether such advice or statement was relied upon in making the benefit determination.
		

		
			(xiv)      Person Authorized to Act on Behalf of Claimant.  The Claims Administrator may establish reasonable procedures to permit an authorized person to act on behalf of the claimant (and for determining whether a person has been authorized to act on behalf of a claimant).
		

		
			5.          Funding by Bank.
		

		
			(a)         The benefit obligations of the Bank set forth herein constitute an unfunded
		

		
			
		

		
			

		 

		

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			retirement arrangement, the obligations under which shall be reflected on the general ledger of the Bank (the “Retirement Liability”).  The general corporate funds of the Bank shall be the sole source of payment of the Retirement Liability.  The Bank shall be under no obligation to set aside, earmark or otherwise segregate any funds with which to pay the Retirement Liability.  Executive and Executive’s Beneficiary or any successor in interest shall be and shall remain unsecured general creditors of the Bank with respect to the Retirement Liability.  Executive and Executive’s Beneficiary shall have no interest in any property of the Bank or any other rights with respect thereto except to the extent of the contractual right to the Retirement Liability represented by the obligations described in Section 2 of this Agreement.
		

		
			(b)         Notwithstanding anything herein to the contrary, the Bank has no obligation whatsoever to set aside assets, either directly or indirectly, in a trust for purposes of paying the Retirement Liability under this Agreement.  The Retirement Liability is not a deposit, is not otherwise funded by the Bank and is not insured by the Federal Deposit Insurance Corporation and does not constitute a trust account or any other special obligation of the Bank and does not have priority of payment over any other general obligations of the Bank.  If the Bank determines in its sole discretion to set aside assets in a grantor trust for the purpose of paying benefits under this Agreement, the grantor trust shall not be located outside of the United States or subsequently transferred to any trust outside of the United States.
		

		
			(c)         Notwithstanding anything herein to the contrary, the Bank, in its sole discretion, may procure bank-owned life insurance covering the life of the Executive, with respect to which the Bank shall be the beneficiary, to pay the Bank’s obligations and to remain available to satisfy any claims of the Bank’s general creditors, under this Agreement.  Executive agrees to fully cooperate with the Bank to enable the Bank to procure such life insurance, including undertaking a physical to the extent needed to procure the policy.  Executive and Executive’s Beneficiary, however, shall have no interest in any such policy of the Bank or any other rights with respect to such policy, the proceeds of which will be paid to the Bank.  The Bank in its sole discretion will determine whether to procure any such policy and, if the Bank elects to procure such policy, the face amount of such policy.
		

		
			6.          Employment of Executive; Other Agreements.  The benefits provided for herein for Executive are supplemental retirement benefits and shall not be deemed to modify, affect or limit any salary or salary increases, bonuses, profit sharing or any other type of compensation of Executive in any manner whatsoever.  No provision contained in this Agreement shall in any way affect, restrict or limit any existing employment agreement between the Bank and Executive, nor shall any provision or condition contained in this Agreement create specific employment or other service rights of Executive or limit the right of the Bank to discharge Executive with or without cause or otherwise terminate the Executive’s service at the Bank.
		

		
			7.          Withholding.
		

		
			(a)         The Executive is responsible for payment of all taxes applicable to compensation and benefits paid or provided to the Executive under the Agreement, including federal and state income tax withholding, as applicable.  The Bank  shall withhold any taxes that, in its reasonable judgment, are required to be withheld, including but not limited to taxes owed under Code Section 409A and regulations thereunder, if any, and all employment taxes due to be paid by the Bank pursuant to Code Section 3121(v) and regulations promulgated thereunder (i.e., Federal Insurance Contributions Act (“FICA”) taxes on the present value of payments hereunder which are no longer subject to vesting).  The Bank’s sole liability regarding such taxes is to forward any amounts withheld to the appropriate taxing authority(ies).  By participating in the Agreement, the Executive consents to the deduction of all tax withholdings attributable to participation in the Agreement from the benefits due under the Agreement or other payments due to the Executive by the Bank to satisfy the employee-portion of such obligations.  If insufficient cash wages are available or, if the
		

		
			
		

		
			

		 

		

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			Executive so desires, the Executive may remit payment in cash for the withholding amounts.
		

		
			(b)         Notwithstanding any other provision in the Agreement to the contrary, to the extent permitted by Code Section 409A, payments due under the Agreement may be accelerated to pay, where applicable, the FICA tax imposed under Code Sections 3101, 3121(a), and 3121(v)(2) and any state, local, and foreign tax obligations (the “Tax Obligations”) that may be imposed on amounts deferred pursuant to the Agreement prior to the time such amounts are paid or made available and to pay the income tax at source on wages imposed under Code Section 3401 or the corresponding withholding provisions of applicable state, local, or foreign tax laws as a result of an accelerated payment of the Tax Obligations (the “Income Tax Obligations”).  Accelerated payments pursuant to this Section 7(b) shall not exceed the amount of the Tax Obligations and Income Tax Obligations and shall be made as a payment directly to taxing authorities pursuant to the applicable withholding provisions.  Any accelerated payments pursuant to this Section 7(b) shall reduce the benefit otherwise payable to the Executive pursuant to the Agreement.
		

		
			(c)         Notwithstanding any other provision in the Agreement to the contrary, the Executive shall be liable for all taxes related to payments under this Agreement, and the Bank shall not be liable to any interested party for any such taxes or if the Agreement fails to be exempt from or to comply with Code Section 409A.  Moreover, the Bank and the Executive acknowledge that amounts payable under this Agreement may need to be bifurcated and made subject to different withholdings and reporting, given the benefits to accrue hereunder relate to both the Executive’s employment with the Bank.
		

		
			8.          Arbitration; Jury Trial Waiver.
		

		
			(a)         Except as otherwise expressly provided herein or in any other subsequent written agreement between Executive and the Bank, unless prohibited by law, any controversy or claim between Executive and the Bank, or between the respective successors or assigns of either, or between Executive and any of the Bank’s officers, employees, agents or affiliated entities, arising out of or relating to this Agreement or any representations, negotiations, or discussions leading up to this Agreement or any relationship that results from any of the foregoing, whether based on contract, an alleged tort, breach of warranty, or other legal theory (including claims of fraud, misrepresentation, suppression of material fact, fraud in the inducement, and breach of fiduciary obligation), and whether based on acts or omissions occurring or existing prior to, at the time of, or after the execution of this Agreement and whether asserted as an original or amended claim, counterclaim, cross-claim, or otherwise, shall be settled by binding arbitration; provided, however, that resort to arbitration as provided in this Section 8 may only be had after exhaustion of the claims procedure described in Subsection 4(b) followed by mediation under the Commercial Mediation Rules of the American Arbitration Association.  Thereafter, arbitration of any unresolved claim shall be administered by the American Arbitration Association under its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.  Any dispute regarding whether a particular claim is subject to arbitration will be decided by the arbitrator.  Any court of competent jurisdiction may compel arbitration of claims pursuant to this Agreement.
		

		
			(b)         The arbitrator may award to the prevailing party pre-and post-award expenses of the arbitration, including the arbitrator’s fees and travel expenses, administrative fees, out-of-pocket expenses such as copying and telephone, court costs, witness fees, stenographer’s fees, and (if allowed by
		

		
			
		

		
			

		 

		

			11

		

		

		
			applicable law) attorneys’ fees.  Otherwise, the parties will share equally the arbitrator’s fee and travel expenses and administrative fees, and each party will bear its own expenses.
		

		
			(c)         This agreement to arbitrate disputes will survive the payment of all obligations under this Agreement and termination or performance of any transactions contemplated hereby between Executive and the Bank, and will continue in full force and effect unless Executive and the Bank otherwise expressly agree in writing.
		

		
			(d)         By entering into this Agreement, Executive and the Bank agree and acknowledge that:
		

		
			(i)          by agreeing to arbitrate disputes, Executive and the Bank are giving up the right to trial in a court and THE RIGHT TO TRIAL BY JURY of all claims that are subject to arbitration under this Agreement;
		

		
			(ii)         grounds for appeal of the arbitrator’s decision are very limited; and
		

		
			(iii)       in some cases the arbitrator may be employed by, or may have worked closely with, a business in the same or a related type of business as the business engaged in by Executive or the Bank.
		

		
			(e)         EXECUTIVE AND THE BANK HEREBY WAIVE THE RIGHT TO TRIAL BY JURY OF ALL DISPUTES, CONTROVERSIES AND CLAIMS BY, BETWEEN OR AGAINST EXECUTIVE OR THE BANK, WHETHER THE DISPUTE, CONTROVERSY OR CLAIM IS SUBMITTED TO ARBITRATION OR IS DECIDED BY A COURT.
		

		
			Executive must initial here:              
		

		
			9.          Miscellaneous Provisions.
		

		
			(a)         Counterparts.  This Agreement may be executed simultaneously in any number of counterparts.  Each counterpart shall be deemed to be an original, and all such counterparts shall constitute one and the same instrument.  This Agreement may be executed and delivered by facsimile transmission of an executed counterpart.
		

		
			(b)         Construction.  As used in this Agreement, the neuter gender shall include the masculine and the feminine, the masculine and feminine genders shall be interchangeable among themselves and each with the neuter, the singular numbers shall include the plural, and the plural the singular.  The term “person” shall include all persons and entities of every nature whatsoever, including, but not limited to, individuals, corporations, partnerships, governmental entities and associations.  The terms “including,” “included,” “such as” and terms of similar import shall not imply the exclusion of other items not specifically enumerated.
		

		
			(c)         Severability.  If any provision of this Agreement or the application thereof to any person or circumstance shall be held to be invalid, illegal, unenforceable or inconsistent with any present or future law, ruling, rule or regulation of any court, governmental or regulatory authority having jurisdiction over the subject matter of this Agreement, such provision shall be rescinded or modified in accordance with such law, ruling, rule or regulation and the remainder of this Agreement or the application of such provision to the person or circumstances other than those as to which it is held inconsistent shall not be affected thereby and shall be enforced to the greatest extent permitted by law.
		

		
			
		

		
			

		 

		

			12

		

		

		
			(d)         Governing Law.  This Agreement is made in the State of Maryland and shall be governed in all respects and construed in accordance with the laws of the State of Maryland, without regard to its conflicts of law principles, except to the extent superseded by the Federal laws of the United States.
		

		
			(e)         Binding Effect.  This Agreement is binding upon the parties, their respective successors, assigns, heirs and legal representatives.  Without limiting the foregoing this Agreement shall be binding upon any successor of the Bank whether by merger or acquisition of all or substantially all of the assets or liabilities of the Bank.  This Agreement may not be assigned by any party without the prior written consent of each other party hereto.
		

		
			(f)         No Trust.  Nothing contained in this Agreement and no action taken pursuant to the provisions of this Agreement shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Bank and Executive, Executive’s Beneficiary or any other person.
		

		
			(g)         Assignment of Rights and Benefits.  No right or benefit provided in this Agreement will be transferable by Executive except, upon his death, to a named Beneficiary as provided in this Agreement.  No right or benefit provided for in the Agreement will be subject to anticipation, alienation, sale, assignment, pledge, encumbrance or charge, and any attempt to anticipate, alienate, sell, assign, pledge, encumber, or charge the same will be void.  No right or benefit provided for in the Agreement will in any manner be liable for or subject to any debts, contracts, liabilities or torts of the person entitled to such benefits; provided, however, that the undistributed portion of any benefit payable hereunder shall at all times be subject to set-off for debts owed by Executive to the Bank.
		

		
			(h)         Entire Agreement.  This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and all prior or contemporaneous negotiations, agreements and understandings, whether oral or written, are hereby superseded, merged and integrated into this Agreement.
		

		
			(i)          Notices.  All notices and other communications required or permitted under this Agreement shall be in writing and, if mailed by prepaid first-class mail or certified mail, return receipt requested, shall be deemed to have been received on the earlier of the date shown on the receipt or three (3) business days after the postmarked date thereof.  In addition, notices hereunder may be delivered by hand, facsimile transmission or overnight courier, in which event the notice shall be deemed effective when delivered or transmitted.  All notices and other communications under this Agreement shall be given to the parties hereto, at the following addresses:
		

		
			Bank:
		

		
			Shore United Bank
		

		
			18 East Dover Street
		

		
			Easton, MD 21601
		

		
			Attention: CHRO
		

		
			 
		

		
			Executive: Address on file with Bank
		

		
			(j)          Non-waiver.  No delay or failure by either party to exercise any right under this Agreement, and no partial or single exercise of that right, shall constitute a waiver of that or any other right.
		

		
			
		

		
			

		 

		

			13

		

		

		
			(k)         Headings.  Headings in this Agreement are for convenience only and shall not be used to interpret or construe its provisions.
		

		
			(l)          Accelerated Payouts in the Event of 409A Violations.  Notwithstanding any other provision of the Agreement to the contrary, the Bank shall make payments hereunder before such payments are otherwise due if it determines that the provisions of the Agreement fail to meet the requirements of Code Section 409A and the rules and regulations promulgated thereunder; provided, however, that such payment(s) may not exceed the amount required to be included in income as a result of such failure to comply with the requirements of Code Section 409A and the rules and regulations promulgated thereunder and, to the extent permissible therein, any taxes, penalties, interest and costs attributable thereto.
		

		
			10.        Definitions.  Where the following words and phrases appear in the Agreement, they shall have the respective meanings set forth below, unless their context clearly indicates to the contrary:
		

		
			(a)         “Accrual Balance” means the liability that the Bank accrues, under Generally Accepted Accounting Principles (“GAAP”) as reasonably applied by the Bank, for the Bank’s obligation to the Executive under this Agreement in accordance with Accounting Principles Board Opinion Number 12, as amended by Statement of Financial Accounting Standards Number 106, and the Discount Rate.  Any one of a variety of amortization methods may be used to determine the Accrual Balance.  However, once chosen, the method must be consistently applied.
		

		
			(b)         “Beneficiary” shall mean the person(s) designated by the Executive to receive any death benefits described under Section 2(e) of the Agreement.  The Executive shall designate his Beneficiary in writing to the Bank pursuant to procedures as may be established from time to time; provided, however, if no such designation has been made or if the Beneficiary predeceases Executive, the Beneficiary of Executive under this Agreement shall be Executive’s  legally-married spouse, if any, or, if there is no legally-married surviving spouse, the Beneficiary shall be Executive’s estate.
		

		
			(c)         “Cause” shall have the same meaning given to the same or similar term in any employment agreement between the parties as may be in effect from time to time; provided, however, if there is no such term or similar term in the employment agreement or if there is no such employment agreement, then the term shall mean (i) intentional misconduct or gross malfeasance, or an act or acts of gross negligence in the course of employment or any material breach of the Executive’s obligations contained herein, including, without limitation, acts competitive with or deliberately harmful to the business of the Bank; (ii) any intentional misstatement or omission to the directors or executive officers of the Bank with respect to any matter; (iii) the intentional failure of the Executive to follow the reasonable instructions and policies of the Bank; (iv) the Executive’s conviction, admission or confession of any felony or an unlawful act involving active and willful fraud or moral turpitude; or (v) the violation by the Executive of applicable state and federal banking regulations, rules, or statutes.  If there is a discharge of the Executive by the Bank for Cause, the Executive will be deemed to and shall resign from the Bank contemporaneously with the termination of the Executive’s employment.
		

		
			(d)         “Change in Control” shall mean (i) any transaction, whether by merger, consolidation, asset sale, recapitalization, reorganization, combination, stock purchase, tender offer, reverse stock split, or otherwise, which results in the acquisition of, or beneficial ownership (as such term is defined under rules and regulations promulgated under the Securities Exchange Act of 1934, as amended) by any entity, person or any group thereof acting in concert, of 50% or more of the outstanding shares of common stock of the Bank; or (ii) the sale of 50% or more of the
		

		
			
		

		
			

		 

		

			14

		

		

		
			collective assets of the Bank.  For purposes of this Section 10(d), persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Bank.  Change in Control shall be construed consistent with its meaning under Section 409A of the Code.
		

		
			(e)         “Code” means the Internal Revenue Code of 1986, as amended, and all applicable rules and regulations promulgated thereunder.
		

		
			(f)         “Continuous Service” shall mean continuous employment by the Executive with the Bank or any affiliates as a common law employee and/or continuous service by the Executive as a member of the Board of Directors.
		

		
			(g)         “Discount Rate” shall mean the interest rate designated by the Board of Directors for determining the present value of any benefits payable under this Agreement and/or the amount of the installment payments necessary to fully amortize the Accrual Balance at the designated Discount Rate over the specified payment period.  The Board of Directors has the authority to designate and/or adjust the Discount Rate, in its sole discretion, so as to maintain the rate within reasonable standards according to GAAP and applicable bank regulatory guidance.
		

		
			(h)         “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and all applicable rules and regulations promulgated thereunder,
		

		
			(i)          “Normal Retirement Age” means the attainment of age sixty five  (65)  by the Executive.
		

		
			(j)          “Normal Retirement Benefit” means one hundred thousand dollars ($100,000).
		

		
			(k)         “Permanently Disabled” shall mean any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months that results in Executive (i) being unable to engage in any substantial gainful activity; or (ii) receiving income replacement benefits for a period of not less than three (3) months under the Bank’s long-term disability plan covering Executive.  The determination of whether Executive is Permanently Disabled shall be made by the Bank and shall be construed consistent with its meaning under Section 409A of the Code.  If the Executive becomes Permanently Disabled, the Executive will be deemed to and shall resign from the Bank contemporaneously with the Executive becoming Permanently Disabled.
		

		
			(l)          “Separation from Service” shall mean (i) a termination of the Executive’s employment where either (A) the Executive has ceased to perform any services for the Bank and all affiliated companies that, together with the Bank, constitute the “service recipient” within the meaning of Code Section 409A and the regulations thereunder (collectively, the “Service Recipient”) or (B) the level of bona fide services the Executive performs for the Service Recipient after a given date (whether as an employee or as an independent contractor) permanently decreases (excluding either a decrease as a result of military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed six (6) months, or if longer, so long as the Executive retains a right to reemployment with the Service Recipient under an applicable statute or by contract or any other decrease permitted under Code Section 409A) to no more than twenty percent (20%) of the average level of bona fide services performed for the Service Recipient (whether as an employee or an independent contractor) over the immediately preceding 36-month period (or the full period of service if the Executive has been providing services to the Service Recipient for less than 36 months), and (ii) a termination of the Executive’s service at the Bank, in
		

		
			
		

		
			

		 

		

			15

		

		

		
			each case, consistent with a “separation from service” within the meaning of Code Section 409A.  Given the Executive is to be provided retirement benefits under the Agreement in return for his services as an employee of the Bank, the Executive will need to separate from service as an employee to be treated as having a Separation from Service for purposes of this Agreement. All references to termination or discharge of employment and/or service shall be deemed to refer to a “separation from service.”
		

		
			[Remainder of Page Intentionally Left Blank]
		

		
			
		

		
			

		 

		

			16

		

		

		
			IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set forth above.
		

		
			 
		

			
					
						 

					
					
						SHORE UNITED BANK:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						EXECUTIVE:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						/s/ Donna J. Stevens

				
	
					
						 

					
					
						Donna J. Stevens

				

		
			 
		

		
			
		

		
			

		 

		

			17

		

		

		
			DESIGNATION OF BENEFICIARY FORM
		

		
			UNDER
		

		
			SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
		

		
			Pursuant to Section 10(b) of the SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (the “Agreement”), I, Donna Stevens, hereby designate the beneficiary(ies) listed below to receive any benefits under the Agreement that may be due following my death.  This designation shall replace and revoke any prior designation of beneficiary(ies) made by me under the Agreement.
		

		
			Full Name(s), Address(es) and Social Security Number(s) of Primary Beneficiary(ies)*:
		

			
					
						 

				
	
					
						 

				
	
					
						 

				

		
			 
		

		
			*If more than one beneficiary is named above, the beneficiaries will share equally in any benefits, unless you have otherwise provided above.  Further, if you have named more than one beneficiary and one or more of the beneficiaries is deceased at the time of your death, any remaining beneficiary(ies) will share equally, unless you have provided otherwise above.  If no primary beneficiary survives you, then the contingent beneficiary designated below will receive any benefits due upon your death.  In the event you have no designated beneficiary upon your death, any benefits due will be paid to your legally-married spouse, if any, or, if there is no legally-married surviving spouse, to your estate.  In the event that you are naming a beneficiary that is not a person, please provide pertinent information regarding the designation.
		

		
			Full Name, Address and Social Security Number of Contingent Beneficiary:
		

			
					
						 

				
	
					
						 

				
	
					
						 

				

		
			 
		

			
					
						Date

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Donna J. Stevens

				

		
			 
		

		 

		

			18FIRST
AMENDMENT TO LEASE

 

THIS
FIRST AMENDMENT TO LEASE (the “First Amendment”) is made and entered into as Of April 25, 2019 by and between SAN
CARLOS RETAIL VENTURE, L.P., a California limited partnership, VERBENA URP PARTNERS, LP, a California limited partnership,
FULCRUM URP INVESTORS, LP, a California limited partnership, GRAY & AFFRIME FAMILY LLC, a California limited
liability company, and FLORES-LOPEZ ANVARY LLC, a California limited liability company (collectively, ‘‘Landlord”),
as successor-in-interest to Seven Davis LLC (“Prior Landlord”) and Marrone Bio Innovations, Inc., a Delaware
corporation (the “Tenant”).

 

RECITALS

 

	 	A.	Landlord
    and Tenant entered into a lease agreement dated April 30, 2014 (the “Lease”) pertaining to certain premises located
    at the University Research Park herein referred to as (the “Project”) consisting of approximately 17,438 rentable
    square feet known as 1490 Drew Avenue, Davis, California (the “Premises”);
	 	 	 
	 	B.	Tenant
    and Landlord acknowledge the Tenant is currently in possession and occupying the Premises. Tenant desires to exercise the
    first of two options provided for in the Lease and extend the term of the Lease for five (5) years. Landlord and Tenant desire
    to amend the current Rent; and
	 	 	 
	 	C.	Landlord
    and Tenant agree to amend the Lease as provided for herein;

 

NOW,
THEREFORE, in consideration of the mutual covenants and promises set forth hereinafter, Landlord and Tenant agree as follows:

 

	 	1.	Tenant
    is currently in possession and occupying the Premises. The current term of the Lease expires August 31, 2019.
	 	 	 
	 	2.	Term.
    Landlord and Tenant desire to extend the term of the Lease for a period of five (5) years (the “First Extension
    Option”). The First Extension Option shall be from September 1, 2019 through August 31, 2024.
	 	 	 
	 	3.	Rent.
    Tenant shall pay to Landlord the following monthly Rent during the First Extension Option:

 

	 	Term	 	Monthly
    Rent	 	 	Rent/RSF	 
	 	9/1/2019	 	8/31/2020	 	$	37,491.70	 	 	$	2.15	 
	 	9/1/2020	 	8/31/2021	 	$	38,537.98	 	 	$	2.21	 
	 	9/1/2021	 	8/31/2022	 	$	39,758.64	 	 	$	2.28	 
	 	9/1/2022	 	8/31/2023	 	$	40,979.30	 	 	$	2.35	 
	 	9/1/2023	 	8/31/2024	 	$	42,199.96	 	 	$	2.42	 

 

    	 	 	 

    	 

    

 

	 	4.	Option
    To Extend. Tenant has one remaining option to extend the term of the Lease as defined in Section 42 of the Lease.
	 	 	 
	 	5.	Repairs
    by Landlord. Section 9 of the Lease is hereby modified with the following:
	 	 	 
	 	 	Landlord
    agrees to maintain in good condition and repair the Office HVAC System equipment (“Office HVAC”). Landlord shall
    contract with a service company for the regular (but not less frequently than quarterly) maintenance, repair and/or replacement
    (when necessary) of the Office HVAC equipment serving the Premises. Such repairs and/or maintenance of the Office HVAC System
    shall be billed back to the Tenant as defined in Section 6 herein.
	 	 	 
	 	 	Except
    for Landlord’s obligations set forth in Section 9 of the Lease and above, Tenant, at its sole cost and expense, shall
    keep any specific Lab HVAC (“Lab HVAC System”) in good working order, repair and condition. Tenant shall ensure
    that any and all Lab HVAC System equipment that is installed shall be maintained at all times in a manner to prevent roof
    leaks, damage, or noise due to vibrations or improper installation, maintenance or operation. Tenant shall have the sole responsibility
    to contract with a service company for the regular maintenance and repair of the Lab HVAC System.
	 	 	 
	 	6.	Operating
    Expenses and Real Estate Taxes. From and after the First Expense Year as hereinafter defined, in addition to the Monthly
    Rent, Tenant agrees to pay additional rent as and when provided in this Section 6.
	 	 	 
	 	a)	Definitions.
    For the purposes of this section, the following terms are defined as follows:

 

	 	i)	“Lease
    Year.” Each consecutive calendar year of the term.
	 	 	 
	 	ii)	“Tenant’s
    Expense Percentage.” That portion the Rentable Area of the Premises (RSF) bears to the rentable area of the Complex,
    as defined herein and as applicable to the operating expenses defined in Sections 6 (b) and 6 (c) below. The Complex shall
    be defined as 7-URP as defined in Exhibit A-1 attached.
	 	 	 
	 	iii)	“Operating
    Expenses” means only the following operating costs actually incurred by Landlord in managing, operating, insuring,
    repairing, replacing and maintaining of the Complex and the Project, where the Complex is located, as more particularly described
    in in Sections 6 (b) and 6 (c).
	 	 	 
	 	iv)	Base
    Year. The term “Base Year” shall mean the 12-calendar month period in Year 2019 “grossed-up” to
    reflect a 95% occupied and fully-assessed Project.
	 	 	 
	 	v)	Expense
    Year. The term “Expense Year” shall mean the 12-calendar month period as set forth herein. The first Expense
    Year (the “First Expense Year”) shall commence on the first day following the end of the Base Year and shall continue
    for the next succeeding 12 calendar months. The second and subsequent Expense Years shall commence on the first day following
    the end of the preceding Expense Year and shall continue for the next succeeding 12 calendar months.

 

    	 	 	 

    	 

    

 

	 	b)	All
    expenses, costs and amounts of every kind and nature which Landlord pays during any Expense Year because of or in connection
    with the ownership, management, maintenance, repair, replacement, restoration or operation of the Project and the real property
    upon which the Premises is located (collectively, the “Project”), or any portion thereof, without limiting the
    generality of the foregoing, Operating Expenses shall specifically include any and all of the following: (a) The cost of all
    reasonable and necessary repairs, maintenance and operation of the common area heating, air conditioning and ventilating (if
    applicable), HVAC to the Premises (if applicable), parking areas, sidewalks and grounds including, without limitation, all
    exterior lighting, the cost of parking area repair, restoration, and maintenance including but not limited to, resurfacing,
    repainting, restriping, and cleaning and the cost of ordinary materials and supplies consumed in connection with any such
    maintenance, repair, operation and replacement that in accordance with generally accepted accounting principles would not
    be capitalized, except to the extent the costs are intended to effect economies in the on-site operation or on-site maintenance
    of the project; (b) The reasonable and customary management fee for Landlord or Landlord’s managing agent (in accordance
    with the local market place for comparable buildings) not to exceed three percent (3%) of Base Rent, which shall be inclusive
    of any cost of materials and supplies used in connection with such management, Landlord’s general overhead, and salaries
    and benefits of Landlord’s personnel, officers and executives; (c) Salary of the on-site employees directly engaged
    in the operation and maintenance of the Project; (d) Premiums incurred by Landlord for insurance coverage maintained by Landlord
    that is required by this Lease or that is customarily carried by operators of comparable buildings in the area of the building;
    (e) Cost of repair, maintenance, operation and replacements with respect to the Premises utility lines contained therein,
    including, without limitation, electrical and lighting systems, plumbing systems, sanitary and storm drainage systems, and
    all other systems and equipment of the Project, and the cost of supplies and equipment and maintenance and service contracts
    in connection therewith, except that Landlord shall first look to any existing warranties and/or guaranties or other responsible
    third parties to pay such costs; (f) the cost of replacement of corridors, other common or public areas or facilities, and
    (g) Security guard or patrol services. The foregoing notwithstanding, Landlord shall segregate all costs and expenses exclusive
    to the Complex and real property upon which the Premises is located from all costs and expenses which are exclusive to other
    Complexes in the Project. Similarly, in the event certain costs and expenses are provided to more than one Complex in the
    Project, said costs and expenses shall be allocated to each Complex in an equitable manner.
	 	 	 
	 	c)	“Property
    Taxes” shall include all taxes, assessments, and other governmental charges, general and special, ordinary and extraordinary,
    of any kind and nature whatsoever, including but not limited to, assessments for public improvements or benefits, which shall
    during the Term thereof be laid, assessed, levied, imposed upon or become due 11nd payable, subject only to the following:
    (i) franchise, estate, inheritance, succession, capital levy, transfers, income and excess profits taxes imposed upon Landlord
    shall be excluded, and (ii) if at any time during the Term of this Lease, a tax or excise on rents or other tax, however described,
    is levied or assessed against Landlord on account of the rent expressly reserved hereunder, as a substitute in whole or in
    part for taxes assessed or imposed on land and buildings, such tax or excise on rents or other tax shall be included within
    the definition, but only to the extent of the amount thereof which is lawfully assessed or imposed as a direct result of Landlord’s
    ownership of the Premises or of the rents accruing under this Lease. With respect to any assessment which may be levied against
    or upon the Premises and which under the laws then in force may be evidenced by improvements of other bonds or may be paid
    in annual installments there shall be included within Property Taxes for each year only such amount as Landlord shall be required
    to pay for such year. Landlord and Tenant acknowledge that Proposition 13 was adopted by the voters of the State of California
    in 1978 to limit increases in real estate taxes by limiting reassessments to events such as changes in ownership. The parties
    hereby confirm and agree that “Property Taxes” for purposes of this Lease shall include taxes, assessments, fees,
    levies and charges that may be imposed by governmental bodies for services, including, but not limited to, fire protection,
    street, sidewalk and road maintenance and improvements, refuse removal and other governmental services because of the limitation
    on increases in real estate taxes under Proposition I 3.

 

    	 	 	 

    	 

    

 

	 	i)	Other
    Property Taxes. Tenant shall pay, before delinquency, all taxes and similar charges levied upon or assessed against Tenant’s
    equipment. furniture. fixtures, inventory, and other personal property situated on the Premises during the Term of this Lease,
    and upon demand shall reimburse Landlord for any and all taxes payable by Landlord (other than state and federal income taxes
    measured on the net income of Landlord from all sources) upon, measured by OT
    reasonably attributable to the cost or value of Tenant’s equipment, furniture, fixtures and other personal property
    located on the Premises or by the cost or value of any leasehold improvements made in or to the Premises by or for Tenant,
    regardless of whether title to such improvements shall be in Landlord or Tenant.
	 	 	 
	 	ii)	General.
    So long as Tenant’s obligations hereunder are not materially adversely affected thereby, Landlord reserves the right
    to reasonably change, from time to time, the manner or timing of the foregoing payments. Although this Lease contemplates
    the computation of Property Taxes on a cash basis, Landlord may make reasonable and appropriate accrual adjustments and Landlord
    reserves the right to change to a full accrual system of accounting. No delay by Landlord in providing the statement (or separate
    statements) shall be deemed a default by Landlord or a waiver of Landlord’s right to require payment of Tenant’s
    obligations for actual or estimated Property Taxes.

 

	 	d)	Increases
    in Operating Expenses and Property Taxes as Additional Rent. Beginning with the First Expense Year, if the amount of the
    Operating Expenses and Property Taxes, as defined in Section 6(b) and 6(c) above, paid by Landlord for the first comparison
    Expense Year is in excess of the Base Year Operating Expenses and Property Taxes, then Tenant shall pay its proportionate
    share (Tenant’s Expense Percentage) of such increase in equal monthly amounts as provided in paragraph (e) below.
	 	 	 
	 	e)	Landlord
    shall endeavor to give to Tenant by the first day of December prior to the beginning of each Lease Year a statement of estimated
    Additional Rent for the following Lease Year. The amount of the annual estimated Additional Rent owed pursuant to this paragraph
    shall be payable in monthly installments along with the installments of Base Rent due after receipt of the statement. Landlord
    shall endeavor to give to Tenant by the thirty-first day March following the end of each Lease Year a statement of the actual
    Additional Rent payable by Tenant pursuant to this paragraph. Landlord shall provide a statement of reasonable detail along
    with any and all amounts due or payable and shall be paid by Tenant within thirty (30) days of receipt of said statement.
    However, failure by Landlord to give such statement by said date shall not constitute a waiver by Landlord of its right to
    require payment of additional rent.

 

	 	7.	Brokers.
    Landlord and Tenant each warrant and represent to the other party that it has not voluntarily incurred, on its behalf
    or on behalf of both Landlord and Tenant, any obligation to pay a commission or finder’s fee to any real estate broker
    or other person or entity in connection with this Lease, except for the Landlord’s Broker herein listed. The parties
    acknowledge that Jim Gray and Nahz Anvary of Kidder Matthews are agents for the Landlord and such commission due will be paid
    by the Landlord. Landlord and Tenant shall each indemnify, defend and hold the other party harmless from claims for any commission
    or finders’ fee charges by any real estate broker or other person or entity arising from an agreement, whether express
    or implied, between the indemnifying party and such broker or other person or entity or otherwise arising from the conduct
    of the indemnifying party.
	 	 	 
	 	8.	Exhibit
    D of the Lease “Rules and Regulations” is hereby deleted and replaced with the Exhibit B herein attached on the
    last page of this Agreement.
	 	 	 
	 	9.	Section
    30 of the Lease, “Notices” is hereby deleted and replaced with the following:
	 	 	 
	 	 	Notices. Any notice or other written instrument
    relating to this Lease may be delivered personally or by email to the party to whom such notice is addressed, or may be mailed
    by registered or certified mail to such party at the following address or at such other address as such party from time to
    time may designate by written notice: 

 

    	 	 	 

    	 

    

 

	 	TO
    LANDLORD:	 	University
                                         Research Park

                                         C/O Fulcrum Property Corp., Property Manager

        1530
        J Street, Suite 200

        Sacramento,
        CA 95814

        Email:
        renee@fulcrumproperty.com

	 	 	 	 
	 	TO
    TENANT:	 	Marrone
                                         Bio Innovations, Inc.

        Attn:
        Chief Financial Officer

        1490
        Drew Avenue

        Davis,
        CA 95618

 

All
notices shall be in writing and shall be deemed to have been given when delivered personally, by email or by facsimile (with confirmation
of receipt), twenty four (24) hours after deposited with an overnight courier service for next day delivery or three (3) days
after deposited in the United States mail, registered or certified, postage prepaid, and addressed as noted above.

 

	 	10.	CASp.
    Pursuant to California Civil Code section 1938, Landlord states that, as of the execution of this First Amendment, the
    Premises has not undergone inspection by a “Certified Access Specialist” (“CASp”) to determine whether
    the Premises meet all applicable construction-related accessibility standards under California Civil Code section 55.53. Additionally,
    Landlord hereby discloses to Tenant, and Tenant hereby acknowledges, that Section 1938 of California Civil Code, as amended,
    provides as follows:

 

“A
Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all
of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection
of the subject premises, the commercial property owner or Landlord may not prohibit the Tenant or Tenant from obtaining a CASp
inspection of the subject premises for the occupancy or potential occupancy of the Tenant or Tenant, if requested by the Tenant
or Tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of
the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility
standards within the premises.”

 

	 	a.	In
    the event that Tenant elects to have a CASp inspection of the Premises performed, Tenant shall provide Landlord with at least
    thirty (30) days prior written notice of the date of such inspection. Additionally, Tenant acknowledges and agrees that Tenant
    shall be solely responsible for all costs, expenses and fees incurred in obtaining such CASp inspection of the Premises.
	 	 	 
	 	b.	In
    the event that a CASp inspection (whether performed at the election of Tenant or otherwise) discloses that the Premises do
    not meet all applicable construction-related accessibility standards and related laws and codes, or any violations of said
    standards, laws or codes are found to exist, then Tenant shall be responsible, at Tenant’s sole cost and expense, for
    performing any and all required repairs, alterations, modifications, and improvements: (i} to the Premises (including but
    not limited to all structural elements), and (ii) to the Common Areas to the extent arising from or triggered by Tenant’s
    specific use of the Premises or from any work, improvements or alterations (including Tenant’s Work) made by or on behalf
    of, or for the benefit of, Tenant.
	 	 	 
	 	c.	In
    the event that Tenant is required to undertake any repairs, work, alterations, modifications or improvements to the Premises
    and/or the Common Areas pursuant to the provisions of this Section 13, Tenant agrees that promptly following completion thereof,
    Tenant shall cause, at Tenant’s sole cost and expense, a CASp to certify the Premises (and the Common Areas, as applicable)
    as meeting all applicable construction-related accessibility standards and related laws and codes, and pursuant to California
    Civil Code Section 55.53.
	 	 	 
	 	d.	In
    the event a CASp inspection of the Premises is performed, the results of such inspection, including any reports, surveys or
    other documentation prepared in connection with the inspection, shall remain confidential and Tenant shall not disclose the
    results of such inspection to any other party, except to the extent the same must be disclosed by order of governmental authority
    with appropriate jurisdiction, or pursuant to applicable law. This Section 13 shall survive the termination or expiration
    of the Term of the Lease.

 

	 	11.	Interpretation.
    Capitalized terms used in this Agreement shall have the meaning ascribed to them in the Lease unless otherwise specifically
    defined herein.
	 	 	 
	 	12.	Acknowledgement.
    Tenant acknowledges that as of the date hereof to the best of Tenant’s current actual knowledge, Landlord is not
    in breach of any of its obligations to Tenant under the Lease and Tenant further acknowledges that it has no off-sets, demands
    or claims against Landlord.
	 	 	 
	 	13.	Counterparts.
    This Lease may be executed in multiple counterparts, each of which shall constitute an original and all of which taken
    together shall constitute one and the same agreement binding upon the parties, notwithstanding that all the parties are not
    signatories to the same counterpart. In order to facilitate the agreements contemplated by this Lease, signatures transmitted
    by facsimile or signatures transmitted via e-mail in a “PDF” format may be used in place of original signatures
    on this Lease. Each party intends to be bound by such party’s facsimile or “PDF” format signature on this
    Lease, is aware that the other parties are relying on such party’s facsimile or “PDF” format signature,
    and hereby waives any defenses to the enforcement of this Lease based upon the form of signature. Promptly following any facsimile
    transmittal or e-mail transmittal of” PDF” format signatures, the parties shall deliver to the other parties the
    original executed Lease by reputable overnight courier.
	 	 	 
	 	 	Except
    as expressly modified by this First Amendment, each and every term of the Lease shall remain in full force and effect without
    further modification.

 

<signatures
on following page>

 

    	 	 	 

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date and year first set forth above.

  

	 	“LANDLORD”

SAN CARLOS RETAIL VENTURE, L.P., a California limited

partnership, VERBENA URP PARTNERS, LP, a California limited

partnership, FULCRUM URP INVESTORS, LP, a California limited

partnership, GRAY & AFFRIME FAMILY LLC, a California limited

liability company, and FLORES-LOPEZ ANVARY LLC, a California

limited liability company

By: Fulcrum Property Corp., a California corporation,

as Property Manager

	 	 	 
	 	By:	/s/
    Mark Friedman
	 	 	Mark
    Friedman, President
	 	 	 
	 	Date:	April
    26, 2019
	 	 	 
	 	“TENANT”
	 	MARRONE
    BIO INNOVATIONS, INC.,
	 	a
    Delaware corporation
	 	 	 
	 	By:	/s/
    Linda Moore
	 	Its:	EVP
    and General Counsel
	 	Date:	April
    25, 2019

 

    	 	 	 

    	 

    

 

 

 

    	 	 	 

    	 

    

 

 

 

    	 	 	 

    	 

    

 

EXHIBIT
“B”

 

RULES
AND REGULATIONS

 

Tenant
agrees to comply with (and require all of Tenant’s employees, agents and contractors to comply with) the following rules
and regulations and all other reasonable rules and regulations set by Landlord from time to time for the operation of the Project
or the Premises. In the event of any conflict of inconsistency between the rules and regulations and the terms and provisions
of the Lease, the terms and provisions of the Lease shall control.

 

	 	a.	Tenant
    shall promptly comply with all laws, ordinances, and lawful orders and regulations affecting the Premises hereby leased, and
    the cleanliness, safety, occupation and use of same.
	 	 	 
	 	b.	Tenant
    agrees to abide by reasonable rules established by Landlord for general cleanliness of the Project. Tenant sha11 keep the
    Premises wider its control, including the sidewalks adjacent to the Premises, if any, clean and free from rubbish and dirt
    at all times. Tenant shall keep its entrance doors and window glass clean. All garbage and refuse shall be kept in the kind
    of container approved by Landlord’s fire and casualty consultants. It shall be removed from the Premises daily and deposited
    in mass disposal containers in the manner prescribed from time to time by Landlord. Landlord shall provide or designate a
    service for collection of this garbage and refuse from the designated mass disposal containers. Said service shall be at Tenant’s
    expense and may be included in the common area charges.
	 	 	 
	 	c.	Except
    as otherwise provided in the Lease, Tenant shall not keep or display any merchandise or signs on, or otherwise
    obstruct the sidewalks or areaways adjacent to the Premises without the written consent of Landlord. Tenant sha11 maintain
    the windows in a neat and clean condition and no signs shall be posted on windows. All signs visible from the exterior of
    the · Premises shall be professionally made. Landlord shall have the right, without giving prior notice to Tenant and
    without any liability for damage to the Premises or property kept or stored thereon, reasonably caused thereby, to remove
    any of such signs or merchandise from the Premises.
	 	 	 
	 	d.	Except
    as otherwise provided in the Lease, nothing is to be attached or placed on the exterior walls of the Premises without
    Landlord’s     prior written approval.
	 	 	 
	 	e.	Tenant
    shall not perform any acts or carry on any practices which may injure the building or be a nuisance or menace to other Tenants
    in the Project. No loudspeakers, televisions, phonographs, radios, flashing lights, machinery or other devices shall be used
    in a manner so as to be heard or seen outside of the Premises without the prior written consent of Landlord. Tenant shall
    not carry on any trade or occupation or operate any instrument or apparatus or equipment which emits an odor which may be
    deemed offensive in nature.
	 	 	 
	 	f.	Tenant
    shall not use the plumbing facilities for any purpose other than that which they are constructed, and no grease or foreign
    substance of any kind shall be thrown therein, and the expense of any breakage, stoppage or damage (whether on or off the
    Premises) resulting therefrom shall be borne by Tenant.
	 	 	 
	 	g.	Tenant
    shall complete, or cause to be completed, substantially all deliveries, loading, or unloading, and services to the Premises
    prior to 10:00 A.M. of each day. Landlord reserves the right to further regulate the activities of Tenant in regard to deliveries
    and servicing of the Premises and Tenant agrees to abide by such further reasonable regulations of Landlord.

 

    	 	 	 

    	 

    

 

	 	h.	Tenant
    shall not use or permit the use of any portion of the Premises as, lodging rooms, or for any unlawful purpose or purposes.
	 	 	 
	 	i.	No
    auction, fire, going out of business, or bankruptcy sales may be conducted on the Premises without the previous written consent
    of Landlord.
	 	 	 
	 	j.	In
    connection with the use of the common areas, no person shall, without the prior written consent of Landlord, except in the
    ordinary course of Tenant’s business:

 

	 	(1)	vend,
    peddle or solicit orders for sale or distribution of any merchandise, device, service, periodical, book, pamphlet or other
    matter whatsoever;
	 	(2)	exhibit
    any sign, placard, banner, notice or other written material;
	 	(3)	distribute
    any circular, booklet, handbill, placard or other material;
	 	(4)	parade,
    patrol, picket, demonstrate or engage in any conduct that might tend to interfere with or impede the use of any common area
    by any customer, business invitee or employee, create a disturbance, attract attention or harass, annoy, disparage or be detrimental
    to the interest of any of the establishments within the Project;
	 	(5)	use
    any common area for any purpose when none of the establishments within the Project is open for business or employment; and
	 	(6)	panhandle,
    beg or solicit funds.

 

    	 	 	 

    	 

    

 

SECOND
AMENDMENT TO LEASE

 

THIS
SECOND AMENDMENT TO LEASE (the “Second Amendment”) is made and entered into as of April 25, 2019 by
and between SAN CARLOS RETAIL VENTURE, L.P., a California limited partnership, VERBENA URP PARTNERS, LP, a California
limited partnership, FULCRUM URP INVESTORS, LP, a California limited partnership, GRAY & AFFRIME FAMILY LLC,
a California limited liability company, and FLORES-LOPEZ ANVARY LLC, a California limited liability company (collectively,
“Landlord’’), as successor-in-interest to Six Davis LLC (“Prior Landlord”) and Marrone Bio Innovations,
Inc., a Delaware corporation (the “Tenant”).

 

RECITALS

 

	 	A.	Landlord
    and Tenant entered into a lease agreement dated September 9, 2013 as amended by the First Amendment to Lease dated April 30,
    2014 (collectively the “Lease”) pertaining to certain premises located at the University Research Park herein
    referred to as (the “Project”) consisting of approximately the combined square footage of 28,432 rentable square
    feet known as 1530 Drew Avenue and 1540 Drew Avenue located in Davis, California (the “Premises”);
	 	 	 
	 	B.	For
    purposes of calculating the Rent and other charges herein defined, the rentable square footage shall be 27,335 RSF;
	 	 	 
	 	C.	Tenant
    and Landlord acknowledge the Tenant is currently in possession and occupying the Premises. Tenant desires to exercise the
    first of two options provided for in the Lease and extend the term of the Lease for five (5) years. Landlord and Tenant desire
    to amend the current Rent; and
	 	 	 
	 	D.	Landlord
    and Tenant agree to amend the Lease as provided for herein;

 

NOW,
THEREFORE, in consideration of the mutual covenants and promises set forth hereinafter, Landlord and Tenant agree as follows:

 

	 	I.	Tenant
    is currently in possession and occupying the Premises. The current term of the Lease expires August 31, 2019.
	 	 	 
	 	2.	Term.
    Landlord and Tenant desire to extend the term of the Lease for a period of five (5) years (the “First Extension
    Option”). The First Extension Option shall be from September 1, 2019 through August 31, 2024.
	 	 	 
	 	3.	Rent.
    Tenant shall pay to Landlord the following monthly Rent during the First Extension Option:

 

	 	Term	 	Monthly Rent	 	 	Rent/R.SF	 
	 	9/1/2019	 	8/31/2020	 	$	58,770.25	 	 	$	2.15	 
	 	9/1/2020	 	8/31/2021	 	$	60,410.35	 	 	$	2.21	 
	 	9/1/2021	 	8/31/2022	 	$	62,323.80	 	 	$	2.28	 
	 	9/1/2022	 	8/31/2023	 	$	64,237.25	 	 	$	2.35	 
	 	9/1/2023	 	8/31/2024	 	$	66,150.70	 	 	$	2.42	 

 

    	 	 	 

    	 

    

 

	 	4.	Option
    To Extend. Tenant has one remaining option to extend the term of the Lease as defined in Section 42 of the Lease.
	 	 	 
	 	5.	Repairs
    by Landlord. Section 9 of the Lease is hereby modified with the following:
	 	 	 
	 	 	Landlord
agrees to maintain in good condition and repair the Office HVAC System equipment (“Office HVAC”). Landlord shall contract
with a service company for the regular (but not less frequently than quarterly) maintenance, repair and/or replacement (when necessary)
of the Office HVAC equipment serving the Premises. Such repairs and/or maintenance of the Office HVAC System shall be billed back
to the Tenant as defined in Section 6 herein.
	 	 	 
	 	 	Except
for Landlord’s ob1igations set forth in Section 9 of the Lease and above, Tenant, at its sole cost and expense, shall keep
any specific Lab HVAC (“Lab HVAC System”) in good working order, repair and condition. Tenant shall ensure that any
and all Lab HVAC System equipment that is installed shall be maintained at all times in a manner to prevent roof leaks, damage,
or noise due to vibrations or improper installation, maintenance or operation. Tenant shall have the sole responsibility to contract
with a service company for the regular maintenance and repair of the Lab HVAC System.

 

	 	6.	Operating
    Expenses and Real Estate Taxes. From and after the First Expense Year as hereinafter defined, in addition to the Monthly
    Rent, Tenant agrees to pay additional rent as and when provided in this Section 6.
	 	 	 
	 	a)	Definitions.
    For the purposes of this section, the following terms are defined as follows:

 

	 	i)	“Lease
    Year.” Each consecutive calendar year of the term.
	 	 	 
	 	ii)	“Tenant’s
    Expense Percentage.” That portion the Rentable Area of the Premises (RSF) bears to the rentable area of the Complex,
    as defined herein and as applicable to the operating expenses defined in Sections 6 (b) and 6 (c) below. The Complex shall
    be defined as 6-URP as defined in Exhibit A-1 attached.
	 	 	 
	 	iii)	“Operating
    Expenses” means only the following operating costs actually incurred by Landlord in managing, operating, insuring,
    repairing, replacing and maintaining of the Complex and the Project, where the Complex is located, as more particularly described
    in in Sections 6 (b) and 6 (c).
	 	 	 
	 	iv)	Base
    Year. The term “Base Year” shall mean the 12-calendar month period in Year 2019 “grossed-up” to
    reflect a 95% occupied and fully-assessed Project.
	 	 	 
	 	v)	Expense
    Year. The term “Expense Year” shall mean the 12-calendar month period as set forth herein. The first Expense
    Year (the “First Expense Year”) shall commence on the first day following the end of the Base Year and shall continue
    for the next succeeding 12 calendar months. The second and subsequent Expense Years shall commence on the first day following
    the end of the preceding Expense Year and shall continue for the next succeeding 12 calendar months.

 

    	 	 	 

    	 

    

 

	 	b)	All
    expenses, costs and amounts of every kind and nature which Landlord pays during any Expense Year because of or in connection
    with the ownership, management, maintenance, repair, replacement, restoration or operation of the Project and the real property
    upon which the Premises is located (collectively, the “Project”), or any portion thereof, without limiting the
    generality of the foregoing, Operating Expenses shall specifically include any and all of the following: (a) The cost of all
    reasonable and necessary repairs, maintenance and operation of the common area heating, air conditioning and ventilating (if
    applicable), HVAC to the Premises (if applicable), parking areas, sidewalks and grounds including, without limitation, all
    exterior lighting, the cost of parking area repair, restoration, and maintenance including but not limited to, resurfacing,
    repainting, restriping, and cleaning and the cost of ordinary materials and supplies consumed in connection with any such
    maintenance, repair, operation and replacement that in accordance with generally accepted accounting principles would not
    be capitalized, except to the extent the costs are intended to effect economies in the on-site operation or on-site maintenance
    of the project; (b) The reasonable and customary management fee for Landlord or Landlord’s managing agent (in accordance
    with the local market place for comparable buildings) not to exceed three percent (3%) of Base Rent, which shall be inclusive
    of any cost of materials and supplies used in connection with such management, Landlord’s general overhead, and salaries
    and benefits of Landlord’s personnel, officers and executives; (c) Salary of the on-site employees directly engaged
    in the operation and maintenance of the Project; (d) Premiums incurred by Landlord for insurance coverage maintained by Landlord
    that is required by this Lease or that is customarily carried by operators of comparable buildings in the area of the building;
    (e) Cost of repair, maintenance, operation and replacements with respect to the Premises utility lines contained therein,
    including, without limitation, electrical and lighting systems, plumbing systems, sanitary and storm drainage systems, and
    all other systems and equipment of the Project, and the cost of supplies and equipment and maintenance and service contracts
    in connection therewith, except that Landlord shall first look to any existing warranties and/or guaranties or other responsible
    third parties to pay such costs; (f) the cost of replacement of corridors, other common or public areas or facilities, and
    (g) Security guard or patrol services. The foregoing notwithstanding, Landlord shall segregate all costs and expenses exclusive
    to the Complex and real property upon which the Premises is located from all costs and expenses which are exclusive to other
    Complexes in the Project. Similarly, in the event certain costs and expenses are provided to more than one Complex in the
    Project, said costs and expenses shall be allocated to each Complex in an equitable manner.
	 	 	 
	 	c)	“Property
    Taxes” shall include all taxes, assessments, and other governmental charges, general and special, ordinary and extraordinary,
    of any kind and nature whatsoever, including but not limited to, assessments for public improvements or benefits, which shall
    during the Term thereof be laid, assessed, levied, imposed upon or become due and payable, subject only to the following:
    (i) franchise, estate, inheritance, succession, capital levy, transfers, income and excess profits taxes imposed upon Landlord
    shall be excluded, and (ii) if at any time during the Term of this Lease, a tax or excise on rents or other tax, however described,
    is levied or assessed against Landlord on account of the rent expressly reserved hereunder, as a substitute in whole or in
    part for taxes assessed or imposed on land and buildings, such tax or excise on rents or other tax shall be included within
    the definition, but only to the extent of the amount thereof which is lawfully assessed or imposed as a direct result of Landlord’s
    ownership of the Premises or of the rents accruing under this Lease. With respect to any assessment which may be levied against
    or upon the Premises and which under the laws then in force may be evidenced by improvements of other bonds or may be paid
    in annual installments there shall be included within Property Taxes for each year only such amount as Landlord shall be required
    to pay for such year. Landlord and Tenant acknowledge that Proposition 13 was adopted by the voters of the State of California
    in 1978 to limit increases in real estate taxes by limiting reassessments to events such as changes in ownership. The parties
    hereby confirm and agree that “Property Taxes” for purposes of this Lease shall include taxes, assessments, fees,
    levies and charges that may be imposed by governmental bodies for services, including, but not limited to, fire protection,
    street, sidewalk and road maintenance and improvements, refuse removal and other governmental services because of the limitation
    on increases in real estate taxes under Proposition 13.

 

    	 	 	 

    	 

    

 

	 	i)	Other
    Property Taxes. Tenant shall pay, before delinquency, all taxes and similar charges levied upon or assessed against Tenant’s
    equipment, furniture, fixtures, inventory, and other personal property situated on the Premises during the Term of this Lease,
    and upon demand shall reimburse Landlord for any and all taxes payable by Landlord (other than state and federal income taxes
    measured on the net income of Landlord from an sources) upon, measured by or reasonably attributable to the cost or value
    of Tenant’s equipment, furniture, fixtures and other personal property located on the Premises or by the cost or value
    of any leasehold improvements made in or to the Premises by or for Tenant, regardless of whether title to !such improvements
    shall be in Landlord or Tenant.
	 	 	 
	 	ii)	General.
    So long as Tenant’s obligations hereunder are not materially adversely affected thereby, Landlord reserves the right
    to reasonably change, from time to time, the manner or timing of the foregoing payments. Although this Lease contemplates
    the computation of Property Taxes on a cash basis, Landlord may make reasonable and appropriate accrual adjustments and Landlord
    reserves the right to change to a full accrual system of accounting. No delay by Landlord in providing the statement (or separate
    statements) shall be deemed a default by Landlord or a waiver of Landlord’s right to require payment of Tenant’s
    obligations for actual or estimated Property Taxes.

 

	d)	Increases
    in Operating Expenses and Property Taxes as Additional Rent. Beginning with the First Expense Year, if the amount of the
    Operating Expenses and Property Taxes, as defined in Section 6(b) and 6(c) above, paid by Landlord for the first comparison
    Expense Year is in excess of the Base Year Operating Expenses and Property Taxes, then Tenant shall pay its proportionate
    share (Tenant’s Expense Percentage) of such increase in equal monthly amounts as provided in paragraph (e) below.
	 	 
	e)	Landlord
    shall endeavor to give to Tenant by the first day of December prior to the beginning of each Lease Year a statement of estimated
    Additional Rent for the following Lease Year. The amount of the annual estimated Additional Rent owed pursuant to this paragraph
    shall be payable in monthly installments along with the installments of Base Rent due after receipt of the statement. Landlord
    shall endeavor to give to Tenant by the thirty-first day March following the end of each Lease Year a statement of the actual
    Additional Rent payable by Tenant pursuant to this paragraph. Landlord shall provide a statement of reasonable detail along
    with any and all amounts due or payable and shall be paid by Tenant within thirty (30) days of receipt of said statement.
    However, failure by Landlord to give such statement by said date shall not constitute a waiver by Landlord of its right to
    require payment of additional rent.

 

	 	7.	Brokers. Landlord and Tenant each warrant
    and represent to the other party that it has not voluntarily incurred, on its behalf or on behalf of both Landlord and Tenant,
    any obligation to pay a commission or finder’s fee to any real estate broker or other person or entity in connection
    with this Lease, except for the Landlord’s Broker herein listed. The parties acknowledge that Jim Gray and Nahz Anvary
    of Kidder Matthews are agents for the Landlord and such commission due will be paid by the Landlord. Landlord and Tenant shall
    each indemnify, defend and hold the other party harmless from claims for any commission or finders’ fee charges by any
    real estate broker or other person or entity arising from an agreement, whether express or implied, between the indemnifying
    party and such broker or other person or entity or otherwise arising from the conduct of the indemnifying party.
	 	 	 
	 	8.	Exhibit
    D of the Lease “Rules and Regulations” is hereby deleted and replaced with the Exhibit B herein attached on the
    last page of this Agreement.
	 	 	 
	 	9.	Section
    30 of the Lease, “Notices” is hereby deleted and replaced with the following:

 

    	 	 	 

    	 

    

 

Notices.
Any notice or other written instrument relating to this Lease may be delivered personally or by email to the party to whom
such notice is addressed, or may be mailed by registered or certified mail to such party at the following address or at such other
address as such party from time to time may designate by written notice:

 

	 	TO
    LANDLORD:	 	University
                                         Research Park 

C/O Fulcrum Property Corp., Property Manager

        1530
        J Street, Suite 200

        Sacramento,
        CA 95814

        Email:
        renee@fulcrumproperty.com

	 	 	 	 
	 	TO
    TENANT:	 	Marrone
                                         Bio Innovations, Inc.

        Attn:
        Chief Financial Officer

        1490
        Drew Avenue

        Davis,
        CA 95618

 

All
notices shall be in writing and shall be deemed to have been given when delivered personally, by email or by facsimile (with confirmation
of receipt), twenty four (24) hours after deposited with an overnight courier service for next day delivery or three (3) days
after deposited in the United States mail, registered or certified, postage prepaid, and addressed as noted above.

 

	 	10.	Section
    44 of the Lease, “Storage Space” is hereby deleted in its entirety.
	 	 	 
	 	11.	CASp.
    Pursuant to California Civil Code section 1938, Landlord states that, as of the execution of this Second Amendment, the
    Premises has not undergone inspection by a “Certified Access Specialist” (“CASp”) to determine whether
    the Premises meet all applicable construction-related accessibility standards under California Civil Code section 55.53. Additionally,
    Landlord hereby discloses to Tenant, and Tenant hereby acknowledges, that Section 1938 of California Civil Code, as amended,
    provides as follows:

 

“A
Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all
of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection
of the subject premises, the commercial property owner or Landlord may not prohibit the Tenant or Tenant from obtaining a CASp
inspection of the subject premises for the occupancy or potential occupancy of the Tenant or Tenant, if requested by the Tenant
or Tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of
the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility
standards within the premises.”

 

	 	a.	In
    the event that Tenant elects to have a CASp inspection of the Premises performed, Tenant shall provide Landlord with at least
    thirty (30) days prior written notice of the date of such inspection. Additionally, Tenant acknowledges and agrees that Tenant
    shall be solely responsible for all costs, expenses and fees incurred in obtaining such CASp inspection of the Premises.

 

    	 	 	 

    	 

    

 

	 	b.	In
    the event that a CASp inspection (whether performed at the election of Tenant or otherwise) discloses that the Premises do
    not meet all applicable construction-related accessibility standards and related laws and codes, or any violations of said
    standards, laws or codes are found to exist, then Tenant shall be responsible, at Tenant’s sole cost and expense, for
    performing any and all required repairs, alterations, modifications, and improvements: (i) to the Premises (including but
    not limited to all structural elements), and (ii) to the Common Areas to the extent arising from or triggered by Tenant’s
    specific use of the Premises or from any work, improvements or alterations (including Tenant’s Work) made by or on behalf
    of, or for the benefit of, Tenant.
	 	 	 
	 	c.	In
    the event that Tenant is required to undertake any repairs, work, alterations, modifications or improvements to the Premises
    and/or the Common Areas pursuant to the provisions of this Section 13, Tenant agrees that promptly following completion thereof,
    Tenant shall cause, at Tenant’s sole cost and expense, a CASp to certify the Premises (and the Common Areas, as applicable)
    as meeting all applicable construction-related accessibility standards and related laws and codes, and pursuant to California
    Civil Code Section 55.53.
	 	 	 
	 	d.	In
    the event a CASp inspection of the Premises is performed, the results of such inspection, including any reports, surveys or
    other documentation prepared in connection with the inspection, shall remain confidential and Tenant sha11 not disclose the
    results of such inspection to any other party, except to the extent the same must be disclosed by order of governmental authority
    with appropriate jurisdiction, or pursuant to applicable law. This Section 13 shall survive the termination or expiration
    of the Term of the Lease.

 

	 	12.	Interpretation.
    Capitalized terms used in this Agreement shall have the meaning ascribed to them in the Lease unless otherwise specifically
    defined herein.
	 	 	 
	 	13.	Acknowledgement.
    Tenant acknowledges that as of the date hereof to the best of Tenant’s current actual knowledge, Landlord is not
    in breach of any of its obligations to Tenant under the Lease and Tenant further acknowledges that it has no off-sets, demands
    or claims against Landlord.
	 	 	 
	 	14.	Counterparts.
    This Lease may be executed in multiple counterparts, each of which shall constitute an original and all of which taken
    together shall constitute one and the same agreement binding upon the parties, notwithstanding that all the parties are not
    signatories to the same counterpart. In order to facilitate the agreements contemplated by this Lease, signatures transmitted
    by facsimile or signatures transmitted via e-mail in a “PDF” format may be used in place of original signatures
    on this Lease. Each party intends to be bound by such party’s facsimile or “PDF” format signature on this
    Lease, is aware that the other parties are relying on such party’s facsimile or “PDF” format signature,
    and hereby waives any defenses to the enforcement of this Lease based upon the form of signature. Promptly following any facsimile
    transmittal or e-mail transmittal of “PDF” format signatures, the parties shall deliver to the other parties the
    original executed Lease by reputable overnight courier.
	 	 	 
	 	 	Except
    as expressly modified by this Second Amendment, each and every term of the Lease shall remain in full force and effect without
    further modification.

 

<signatures
on following page>

 

    	 	 	 

    	 

    

 

IN
WITNESS WHE REOF, the parties hereto have executed this Amendment as of the date and year first set forth above.

 

	 	“LANDWRD”

SAN CARLOS RETAIL VENTURE, L.P., a California limited

partnership, VERBENA URP PARTNERS, LP, a California limited

partnership, FULCRUM URP INVESTORS, LP, a California limited

partnership, GRAY & AFFRIME FAMILY LLC, a California limited

liability company, and FWRES-LOPEZ ANVARY LLC, a California

limited liability company

By: Fulcrum Property Corp., a California corporation,

as Property Manager

 
	 	 	 
	 	By:	/s/
    Mark Friedman
	 	 	Mark
    Friedman, President
	 	 	 
	 	Date:	May
    6, 2019
	 	 	 
	 	“TENANT”
	 	MARRONE
    BIO INNOVATIONS, INC.,
	 	a
    Delaware corporation
	 	 	 
	 	By:	/s/
    Linda Moore
	 	Its:	EVP
    and General Counsel
	 	 	 
	 	Date:	April 25, 2019

 

    	 	 	 

    	 

    

 

 

 

    	 	 	 

    	 

    

 

 

 

    	 	 	 

    	 

    

 

EXHIBIT
“B”

 

RULES
AND REGULATIONS

 

Tenant
agrees to comply with (and require all of Tenant’s employees, agents and contractors to comply with) the following rules
and regulations and all other reasonable rules and regulations set by Landlord from time to time for the operation of the Project
or the Premises. In the event of any conflict of inconsistency between the rules and regulations and the terms and provisions
of the Lease, the terms and provisions of the Lease shall control.

 

	 	a.	Tenant
    shall promptly comply with all laws, ordinances, and lawful orders and regulations affecting the Premises hereby leased, and
    the cleanliness, safety, occupation and use of same.
	 	 	 
	 	b.	Tenant
    agrees to abide by reasonable rules established by Landlord for general cleanliness of the Project. Tenant shall keep the
    Premises under its control. including the sidewalks adjacent to the Premises, if any, clean and free from rubbish and dirt
    at all times. Tenant shall keep its entrance doors and window glass clean. All garbage and refuse shall be kept in the kind
    of container approved by Landlord’s fire and casualty consultants. It shall be removed from the Premises daily and deposited
    in mass disposal containers in the manner prescribed from time to time by Landlord. Landlord shall provide or designate a
    service for collection of this garbage and refuse from the designated mass disposal containers. Said service shall be at Tenant’s
    expense and may be included in the common area charges.
	 	 	 
	 	c.	Except
    as otherwise provided in the Lease, Tenant shall not keep or display any merchandise or signs on, or otherwise obstruct the
    sidewalks or areaways adjacent to the Premises without the written consent of Landlord. Tenant shall maintain the windows
    in a neat and clean condition and no signs shall be posted on windows. All signs visible from the exterior of the Premises
    shall be professionally made. Landlord shall have the right, without giving prior notice to Tenant and without any liability
    for damage to the Premises or property kept or stored thereon, reasonably caused thereby, to remove any of such signs or merchandise
    from the Premises.
	 	 	 
	 	d.	Except
    as otherwise provided in the Lease, nothing is to be attached or placed on the exterior walls of the Premises without
    Landlord’s     prior written approval.
	 	 	 
	 	e.	Tenant
    shal1 not perform any acts or carry on any practices which may injure the building or be a nuisance or menace to other Tenants
    in the Project. No loudspeakers, televisions, phonographs, radios, flashing lights, machinery or other devices shall be used
    in a manner so as to be heard or seen outside of the Premises without the prior written consent of Landlord. Tenant shall
    not carry on any trade or occupation or operate any instrument or apparatus or equipment which emits an odor which may be
    deemed offensive in nature.
	 	 	 
	 	f.	Tenant
    shall not use the plumbing facilities for any purpose other than that which they are constructed, and no grease or foreign
    substance of any kind shall be thrown therein, and the expense of any breakage, stoppage or damage (whether on or off the
    Premises) resulting therefrom shall be borne by Tenant.
	 	 	 
	 	g.	Tenant
    shall complete, or cause to be completed, substantially all deliveries, loading, or unloading, and services to the Premises
    prior to 10:00 A.M. of each day. Landlord reserves the right to further regulate the activities of Tenant in regard to deliveries
    and servicing of the Premises and Tenant agrees to abide by such further reasonable regulations of Landlord.

 

    	 	 	 

    	 

    

 

	 	h.	Tenant
    shall not use or permit the use of any portion of the Premises as, lodging rooms, or for any unlawful purpose or purposes.
	 	 	 
	 	i.	No
    auction, fire, going out of business, or bankruptcy sales may be conducted on the Premises without the previous written consent
    of Landlord.
	 	 	 
	 	j.	In
    connection with the use of the common areas, no person shall, without the prior written consent of Landlord, except in the
    ordinary course of Tenant’s business:

 

	 	(1)	vend,
    peddle or solicit orders for sale or distribution of any merchandise, device, service, periodical, book, pamphlet or other
    matter whatsoever;
	 	(2)	exhibit
    any sign, placard, banner, notice or other written material;
	 	(3)	distribute
    any circular, booklet, handbill, placard or other material;
	 	(4)	parade,
    patrol, picket, demonstrate or engage in any conduct that might tend to interfere with or impede the use of any common area
    by any customer, business invitee or employee, create a disturbance, attract attention or harass, annoy, disparage or be detrimental
    to the interest of any of the establishments within the Project;
	 	(5)	use
    any common area for any purpose when none of the establishments within the Project is open for business or employment; and
    panhandle, beg or solicit funds.

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