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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported): September 21, 2020

 

MARRONE BIO INNOVATIONS, INC.

(Exact Name of Registrant as Specified in Charter)

 

Delaware   001-36030   20-5137161

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number) 

 

(I.R.S. Employer

Identification No.)

 

1540 Drew Avenue, Davis, CA 95618

(Address of Principal Executive Offices, and Zip Code)

 

(530) 750-2800

Registrant’s Telephone Number, Including Area Code

  

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

  Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
     
  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
     
  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
     
 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common Stock, $0.00001 par value   MBII   Nasdaq Capital Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

 

 

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements for Certain Officers.

 

On September 21, 2020, James Boyd announced that he would retire from his position as the Chief Financial Officer (“CFO”) and President of Marrone Bio Innovations, Inc. (the “Company”) in accordance with the terms of an employment separation agreement dated September 21, 2020 (the “Separation Agreement”). The Separation Agreement provides that Mr. Boyd’s retirement will become effective immediately prior to the date on which a new CFO commences service, subject to the parties right to extend the termination date for a transition period and subject to the right to terminate Mr. Boyd’s employment earlier in the discretion of the Company’s Chief Executive Officer or for “cause” or due to Mr. Boyd’s “disability,” as those terms are defined in Mr. Boyd’s change in control agreement. In addition to being entitled to any unpaid salary through his retirement date, in consideration of his execution of certain releases and subject to the terms and conditions of the Separation Agreement, upon Mr. Boyd’s retirement from the Company, (i) he will be entitled to salary continuation (payable at the annual rate of $330,000) for twelve months (ii) all of his outstanding unvested restricted stock unit (“RSU”) awards, if any, and all of his outstanding stock options will become fully vested, and all stock options will remain exercisable until the earlier of (x) the one year anniversary of the date Mr. Boyd ceases providing consulting services pursuant to the Consulting Agreement, described below, and (y) the last day of the option’s full term, (iii) he will be entitled to a prorated portion of his 2020 annual bonus, paid in cash (or the full 2020 annual bonus and a prorated portion of the 2021 annual bonus if he remains employed through January 1, 2021), calculated based on achievement of individual goals that are to be agreed to by Mr. Boyd and the Company’s Chief Executive Officer, and with all other terms determined in accordance with the Company’s annual bonus plan as applied to other active senior executives of the Company, and (iv) the Company will pay certain COBRA continuation coverage premiums for 12 months following his retirement date. Mr. Boyd’s change in control agreement with the Company will terminate upon his retirement date.

 

Mr. Boyd also entered into a consulting agreement with the Company on September 21, 2020 (the “Consulting Agreement”). Pursuant to the Consulting Agreement, Mr. Boyd will serve as a consultant to the Company for a period of one year following the date of his retirement, unless terminated earlier as discussed below or extended by mutual agreement of the Company and Mr. Boyd, to help the Company create and develop an entity dedicated to the eradication of invasive species with the terms of such services and related deliverables detailed in the Consulting Agreement. As consideration for his service as a consultant, Mr. Boyd will receive a one-time award of 200,000 RSUs as soon as practicable after his retirement date, which will vest in equal installments over twelve months, subject to his continuous service as a consultant through the applicable vesting dates. Under the terms of the Consulting Agreement, the Company may terminate Mr. Boyd’s service as a consultant by giving five (5) days prior written notice, in which case any unvested RSUs granted under the Consulting Agreement will vest immediately, The Company may also terminate the Consulting Agreement upon Mr. Boyd’s breach or default or for certain other grounds, in which case Mr. Boyd’s unvested RSUs will be forfeited.

 

On September 22, 2020, the Company also announced that the board of directors of the Company has begun the search process for a new CFO.

 

Copies of the Separation Agreement, the Consulting Agreement and a press release related to the above matters are attached as Exhibit 10.1, Exhibit 10.2 and Exhibit 99.1, respectively, to this Current Report on Form 8-K. The foregoing description of the Separation Agreement and the Consulting Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Separation Agreement and the Consulting Agreement.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit

Number

  Description
     
10.1#   Employment Separation Agreement, dated September 21, 2020
10.2#*   Consulting Agreement, dated September 21, 2020
99.1   Press release, dated September 22, 2020

 

 

# Indicates management compensatory agreement

* Confidential portions of this exhibit have been omitted as permitted by applicable regulations

 

 

 

 

Signature

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  MARRONE BIO INNOVATIONS, INC.
     
Date: September 23, 2020 By: /s/ Linda V. Moore
  Name: Linda V. Moore
  Title:

Executive Vice President, General Counsel, Secretary and Chief Compliance Officer

 

 

 

 

 

 

Exhibit 10.1

 

EMPLOYMENT SEPARATION AGREEMENT

 

This Employment Separation Agreement (the “Agreement”) is made and entered into by and between James B. Boyd (“Executive”) and Marrone Bio Innovations, Inc., a Delaware corporation (the “Company”), effective as of September, 21 2020 (the “Effective Date”).

 

W I T N E S S E T H:

 

WHEREAS, Executive is the President and Chief Financial Officer of the Company; and

 

WHEREAS, Executive is party to an employment offer letter agreement with the Company, dated August 14, 2017 (the “Offer Letter”), an Employee Confidential Information and Assignment of Inventions Agreement with the Company, attached as Exhibit A (including exhibits thereto, and a Change in Control Agreement with the Company, effective as of June 17, 2016 (the “Change in Control Agreement” and, together with the Offer Letter and the Inventions and Restrictive Covenant Agreement, the “Employment Agreements”);

 

WHEREAS, the Company and the Executive have agreed to the termination of Executive’s employment with the Company in accordance with this Agreement; and

 

WHEREAS, the Company and Executive wish to set forth herein certain agreements and understandings in this Agreement relating to Executive’s termination of employment;

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, and for other good and valuable consideration, the legal sufficiency of which is hereby acknowledged, the Company and Executive agree as follows:

 

1. Employment Separation.

 

(a) Termination of Employment; Resignation as Officer. Executive’s employment with the Company will terminate, and Executive shall be deemed to have resigned from service as President and Chief Financial Officer of the Company (and any other positions held with the Company or any affiliates), effective (i) at 11:59 P.M. Pacific Time on the day before the day another individual commences service as Chief Financial Officer of the Company, or, if the Chief Executive Officer of the Company (the “CEO”) desires that Executive remain employed to provide transition services following such date, such later date as may be agreed to by Executive and the CEO or (ii) on such earlier date as the CEO determines (the “Termination Date”), subject to the Company’s continued right to terminate the Executive’s employment due to Executive’s Disability (as defined in the Change in Control Agreement) or for “Cause” (as defined in the Change in Control Agreement). Executive and the Company are separately entering to a consulting agreement substantially in the form attached hereto as Exhibit D (the “Consulting Agreement”) relating to Executive’s provision of certain consulting services following the Termination Date.

 

(b) Payment of Accrued Amounts. In connection with Executive’s termination of employment, Executive will receive (a) any unpaid salary earned through the Termination Date and any unused vacation accrued through the Termination Date (payable on the Termination Date) and (b) reimbursement for any unreimbursed business expenses properly incurred by Executive through the Termination Date, in accordance with the Company’s expense reimbursement policy (the “Accrued Amounts”).

 

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(c) No Further Employee Compensation and Benefits. Other than the payments and benefits specifically set forth in this Agreement, the Executive agrees that the Company and its subsidiaries and controlled affiliates do not owe Executive any additional payments, compensation, remuneration, bonuses, incentive compensation (cash or equity-based, including, without limitation, options, restricted stock and restricted stock units), benefits, warrants, severance, reimbursement of expenses or commissions of any kind whatsoever, or other similar compensation, including any obligations under the Offer Letter or the Change in Control Agreement, and except as provided in this Agreement, Executive is not entitled to any further compensation or eligibility for participation in any benefit plans, agreements, or arrangements maintained or contributed to by the Company or its subsidiaries and other affiliates, if any, after the Termination Date; provided, however, that the foregoing shall not extend to (a) any vested benefits under the Company’s 401(k) retirement plan, if any, and the right to elect continuation coverage under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), (b) Executive’s rights, if any, to indemnification or advancement of expenses in accordance with the Company’s certificate of incorporation, bylaws or other corporate governance document, or any applicable insurance policy or applicable law or any indemnification agreement with Executive, or (c) Executive’s rights and entitlements with respect to outstanding equity awards, which shall remain subject to the terms and conditions of the applicable award agreements and plan(s) pursuant to which such awards were granted, as may be amended from time to time, including by this Agreement.

 

(d) No Representation as Company Officer. With the exception of the duties and responsibilities set forth in this Agreement, Executive acknowledges and agrees that he is relieved of all duties and responsibilities for the Company and its subsidiaries and other affiliates as of the Termination Date, that after the Termination Date, Executive will not have the authority to bind the Company or any of its subsidiaries or other affiliates, and that after the Termination Date, Executive will not contact the Company’s stockholders or any past, current, or prospective customers, distributors, manufacturers, partners or suppliers of the Company or any of its subsidiaries, affiliates or licensees on behalf of the Company or any of its subsidiaries or other affiliates. Effective as of 11:59 P.M. Pacific Time on the Termination Date, Executive shall cease and be deemed to have resigned from any and all titles, positions and appointments the Executive holds with any of the Company’s subsidiaries or controlled affiliates, whether as an officer, director, employee, trustee, committee member or otherwise. Executive agrees to execute any documents reasonably requested by the Company in accordance with the preceding sentence.

 

(e) General Release; Continued Employment Terms; Eligibility for Severance Entitlements. Provided Executive signs and delivers to the Company the general release attached as Exhibit B within twenty-one (21) days after the date Executive first receives it from the Company (the “General Release”) and does not revoke the General Release within the seven (7) day revocation period described therein, Executive’s employment with the Company will continue through the Termination Date at the same salary as in effect on the Effective Date, subject to the terms of the Employment Agreements (as modified by this Agreement), Executive will be eligible to earn the Severance Entitlements (as that term is defined in Section 1(f) below), and the Company shall directly pay Executive’s legal fees and costs incurred in the negotiation of this Agreement and the Consulting Agreement within 60 days of presentation of an invoice therefor, provided that such fees shall not exceed $5,000. Executive acknowledges and agrees that Executive’s continued employment, his eligibility to earn the Severance Entitlements and the Company’s agreement to pay up to $5,000 in legal fees and costs incurred in the negotiation of this Agreement and the Consulting Agreement constitute full and adequate consideration for the General Release.

 

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(f) Reaffirmation Agreement; Severance Payments; Vesting of Equity Awards. In addition to the Accrued Amounts, subject to Section 2 of this Agreement, if Executive (i) remains employed through the Termination Date and Executive’s employment terminates pursuant to this Agreement as of the Termination Date (ii) signs, delivers and does not revoke the General Release as set forth in Section 1(e), and (iii) signs and delivers to the Company the Reaffirmation Agreement attached as Exhibit C (the “Reaffirmation Agreement”) no earlier than the Termination Date and no later than the second day following the Termination Date or within twenty-one (21) days after the date Executive first receives the Reaffirmation Agreement from the Company, whichever is later, and does not revoke the Reaffirmation Agreement within the seven (7) day revocation period described therein, Executive shall be entitled to the following severance entitlements (collectively referred to herein as the “Severance Entitlements”): (A) the Company will continue to pay Executive his annual base salary for 12 months following the Termination Date (payable at the annual rate of $330,000 and paid in accordance with the Company’s normal payroll practices, with the first of such payments being made on the first payroll date after the Reaffirmation Agreement becomes irrevocable and including any salary payments relating to the period between the Termination Date and such first payment date), which payments shall continue to Executive’s estate in the event of his death, (B) Executive’s unvested restricted stock unit (“RSU”) awards that are outstanding on the Termination Date shall become fully vested as of the date the Reaffirmation Agreement becomes irrevocable (for clarity, all of Executive’s outstanding RSUs, including any unvested RSUs that become vested pursuant to this Agreement, shall remain subject to the terms of the governing RSU award agreements and will be settled in accordance with the terms of such award agreements on the first business day following the six-month anniversary of the date of the Executive’s separation from service (as that term is used in the RSU award agreements) or, if earlier, Executive’s death), (C) all of Executive’s outstanding unvested stock options will become fully vested as of the date the Reaffirmation Agreement becomes irrevocable and all of Executive’s stock options will remain exercisable until the earlier of (x) the one year anniversary of the date Executive ceases providing consulting services pursuant to the Consulting Agreement and (y) the last day of the option’s full term, and otherwise in accordance with the terms of the applicable award agreements and plan pursuant to which the stock options were granted, (D) Executive will remain eligible to earn a prorated portion of his 2020 annual bonus (or the full 2020 annual bonus and a prorated portion of the 2021 annual bonus if Executive remains employed through January 1, 2021) without regard to the termination of his employment and notwithstanding the annual bonus not generally being paid to terminated employees, calculated based on Executive’s individual goals (including transition goals agreed to by the CEO and Executive relating to the period following the Effective Date and ending on the Termination Date), and with Company-wide goals and all other terms determined, and the bonus paid in cash, in accordance with the terms of the Company’s annual bonus plan and otherwise as applied to other active senior executives of the Company, and, with respect to Executive’s annual bonus for the year in which the Termination Date occurs, prorated by multiplying such earned annual bonus by a fraction, the numerator of which is the number of days in the year in which the Termination Date occurs through the Termination Date and the denominator of which is 365, and (E) if Executive timely elects continuation coverage under COBRA, the Company will pay Executive’s COBRA continuation coverage premium for medical, dental and vision benefits for Executive and his eligible dependents for 12 months following the Termination Date (or, if earlier, until the applicable COBRA continuation period ends). Executive also acknowledges and agrees that Severance Entitlements constitute full and adequate consideration for the Reaffirmation Agreement.

 

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(g) Rights and Obligations under Offer Letter, Change in Control Agreement and Inventions and Restrictive Covenant Agreement. The Offer Letter and the Change in Control Agreement will terminate and be of no further force or effect after the Termination Date. Except for the payments and benefits provided for in this Agreement, Executive acknowledges and agrees that he is not entitled to any severance payments or benefits under the Offer Letter, the Change in Control Agreement or otherwise as a result of the termination of his employment. Executive represents that he is in compliance with, and will continue to comply with all obligations set forth in the Inventions and Restrictive Covenant Agreement in accordance with their terms following the Termination Date, and that nothing herein or otherwise alters in any way the terms of the Inventions and Restrictive Covenant Agreement or its survival after the termination of Executive’s employment with the Company (except for the third sentence of Paragraph 8(a) of the Inventions and Restrictive Covenant Agreement, which the Company hereby waives). Executive further agrees to execute and deliver the Termination Certification referenced in the Inventions and Restrictive Covenant Agreement; provided, for the avoidance of doubt, that notwithstanding anything to the contrary in the Termination Certification, Executive will be permitted to keep his Company-issued laptop, monitor, docking station, mouse and iPad/tablet (subject to his ongoing obligations with respect to Company confidential information), provided that after the Termination Date he shall not have access to the Company’s internal drives or network.

 

(h) Protected Rights; Defend Trade Secrets Act Notification:

 

Notwithstanding anything to the contrary in the Inventions and Restrictive Covenant Agreement:

 

(i) Executive is hereby notified that 18 U.S.C. § 1833(b) states as follows:

 

“An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that—(A) is made—(i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.”

 

Accordingly, notwithstanding anything to the contrary in this Agreement or the Inventions and Restrictive Covenant Agreement, Executive understands that he has the right to disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law. Executive understands that he also has the right to disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure. Executive understands and acknowledges that nothing in this Agreement or the Inventions and Restrictive Covenant Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by 18 U.S.C. § 1833(b).

 

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(ii) Nothing in this Agreement, the Inventions and Restrictive Covenant Agreement, the General Release or the Reaffirmation Agreement shall prohibit or interfere with the Executive exercising protected rights, including rights under the National Labor Relations Act, filing a charge with the Equal Employment Opportunity Commission; reporting possible violations of law to or participating in an investigation by any federal, state or local government agency or commission such as the National Labor Relations Board, the Department of Labor, OSHA, the Department of Justice, or the Securities and Exchange Commission. Executive does not need the Company’s advance permission to file any such charge or report or to participate in any such investigation. Executive does, however, waive any right to receive any monetary award or benefit resulting from such a charge, report, or investigation related to any Executive Released Claims, except that Executive may receive and retain a monetary award from a government-administered whistleblower award program.

 

2. Failure to Comply with Employment Agreements or Employment Separation Terms. If (i) prior to the Termination Date, Executive materially violates or otherwise materially breaches the terms of this Agreement or the Employment Agreements, where such breach remains uncured fifteen days after written notification is provided to the Executive (unless such breach is unable to be cured, in which case no fifteen day notice period shall be required), or (ii) prior to the Termination Date, Executive is terminated for “Cause” (as defined in the Change in Control Agreement”) or resigns, or (iii) if Executive has not executed (or revokes) the General Release or the Reaffirmation Agreement as provided for and within the time limits set forth in Sections 1(e) and 1(f) of this Agreement (any such event, a “Termination Event”), all of Executive’s unexercised RSUs and all of Executive’s unexercised stock options (whether or not vested) will immediately be forfeited and Executive will have no further rights with respect to such awards, Executive shall have no rights to the Severance Entitlements, and the Company shall have no further obligations pursuant to Section 4(b). All other provisions of this Agreement, the General Release, and the Reaffirmation Agreement (as applicable) shall survive a Termination Event. For purposes of this section, material breach of this Agreement includes, but is not limited to the following: any failure of Executive, whether due to bad faith or negligence, to comply with the terms of the Inventions and Restrictive Covenants Agreement.

 

3. No Admission of Liability. The parties acknowledge and agree that any payments or benefits provided to Executive under the terms of this Agreement do not constitute an admission by either party or any of their affiliates that they have violated any law or legal obligation with respect to any aspect of Executive’s employment with the Company.

 

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4. Non-Disparagement.

 

(a) Subject to Section 1(h)(ii), Executive agrees that he will not, directly or indirectly, (A) make any statement, whether in commercial or non-commercial speech, disparaging or criticizing in any way the Company or any of its subsidiaries or affiliates, or any products or services offered by any of these entities, or (B) engage in any other conduct or make any other statement that, in each case, should reasonably be expected to impair the goodwill or reputation of the Company; provided, however, that nothing herein or elsewhere shall prevent Executive from making truthful disclosures or statements (x) reasonably necessary in connection with any litigation, arbitration or mediation or (y) as required by law or by any court, arbitrator, governmental body or other person with apparent authority to require such disclosures or statements. Without limiting the foregoing, Executive acknowledges and agrees that negative, critical or disparaging statements regarding this Agreement or the circumstances of Executive’s termination will impair the goodwill and reputation of the Company and shall constitute grounds for a termination pursuant to Section 2(a).

 

(b) The Company will inform its executive officers with the title of Vice President and above and members of its board of directors, not to, directly or indirectly, individually or in concert with others, engage in any conduct or make any statement, calculated or likely to have the effect of undermining, disparaging or otherwise reflecting poorly upon Executive; provided, however, that nothing herein or elsewhere shall prevent such individual from making truthful disclosures or statements (x) reasonably necessary in connection with any litigation, arbitration or mediation or (y) as required by law or by any court, arbitrator, governmental body or other person with apparent authority to require such disclosures or statements.

 

5. Entire Agreement. The Company and Executive each represents and warrants that no promise or inducement has been offered or made except as herein set forth and that the consideration stated herein is the sole consideration for this Agreement. This Agreement (including the exhibits hereto) constitute the complete and entire agreement, and states fully all agreements, understandings, promises and commitments between the Company and Executive relating to the subject matter hereof. This Agreement supersedes and cancels any and all other negotiations, understandings and agreements, oral or written, respecting the subject matter hereof, between Executive and the Company or any of its subsidiaries or other affiliates (other than the Offer Letter and the Change in Control Agreement, each of which will remain in effect until the Termination Date, and the Inventions and Restrictive Covenant Agreement, which shall remain in full force and effect indefinitely to the extent by its terms it survives termination of Executive’s employment, and other than the third sentence of Paragraph 8(a) of the Inventions and Restrictive Covenant Agreement, which the Company hereby waives); provided, for the avoidance of doubt, that in the event of conflict between this Agreement and any of the Employment Agreements, this Agreement shall control. This Agreement may not be modified except by an instrument in writing signed by the party against whom the enforcement of any waiver, change, modification, or discharge is sought.

 

6. Assignability; Successors; Governing Law. This Agreement is personal to Executive and Executive may not assign, pledge, delegate or otherwise transfer to any person or entity any of Executive’s rights, obligations or duties under this Agreement. Any successor to the Company (whether direct or indirect and whether by purchase, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets will assume the obligations under this Agreement and agree expressly to perform the obligations under this Agreement in the same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession. For all purposes under this Agreement, the term “Company” will include any successor to the Company’s business and/or assets, regardless of whether such party executes and delivers any assumption agreement, or any other successor that becomes bound by the terms of this Agreement by operation of law. This Agreement shall be governed by, construed in accordance with, and enforced pursuant to the laws of the State of California without regard to principles of conflict of laws. Subject to the Arbitration provision below, the Superior Court of Yolo County and/or the United States District Court for the Eastern District of California shall have exclusive jurisdiction and venue over all controversies; provided, however, that either Party may seek equitable remedies, including injunctive relief and specific performance, for the purpose of protecting its intellectual property rights in any court of competent jurisdiction, wherever located.

 

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7. Enforceability; Arbitration.

 

(a) Each of the covenants and agreements set forth in this Agreement are separate and independent covenants, each of which has been separately bargained for and the parties hereto intend that the provisions of each such covenant shall be enforced to the fullest extent permissible. Should the whole or any part or provision of any such separate covenant be held or declared invalid, such invalidity shall not in any way affect the validity of any other such covenant or of any part or provision of the same covenant not also held or declared invalid. If any covenant shall be found to be invalid but would be valid if some part thereof were deleted or the period or area of application reduced, then such covenant shall apply with such minimum modification as may be necessary to make it valid and effective. The failure of either party at any time to require performance by the other party of any provision hereunder will in no way affect the right of that party thereafter to enforce the same, nor will it affect any other party’s right to enforce the same, or to enforce any of the other provisions in this Agreement; nor will the waiver by either party of the breach of any provision hereof be taken or held to be a waiver of any prior or subsequent breach of such provision or as a waiver of the provision itself.

 

(b) The Company and Executive each agrees that any and all disputes arising out of the terms of this Agreement, the Exhibits hereto, any of the matters herein released, and the Inventions and Restrictive Covenant Agreement will be subject to binding confidential arbitration. “Confidential” means the fact of a dispute, the fact of the arbitration, the details of the arbitration, and the result shall be kept confidential by the Parties. The arbitration shall be conducted by one arbitrator, under the auspices of JAMS and under its then-current Streamlined Arbitration Rules and Procedures (if no disputed claim or counterclaim exceeds $250,000, not including interest or attorneys’ fees), or under its then-current Comprehensive Arbitration Rules and Procedures (if any disputed claim or counterclaim exceeds $250,000, not including interest or attorneys’ fees). Any arbitration will be governed by the Federal Arbitration Act (“FAA”) and conducted in a manner consistent with the JAMS Rules, supplemented by the California Rules of Civil Procedure, to the extent permitted by the FAA. The power of the arbitrator shall not exceed that possessed by a judge in a Superior Court in California. The arbitrator shall issue a written opinion in support of his or her decision, stating the legal and factual basis for the decision and the reasoning leading to such decision. The arbitrator is prohibited from awarding damages or remedies in excess of those allowed by the provisions of this Agreement. The decision and award of the arbitrator shall be final and binding and judgment on the award so rendered may be entered in any court having jurisdiction. The arbitration shall be held in Yolo County, California, or a mutually convenient location. The parties further agree that the prevailing party in any arbitration will be entitled to injunctive relief in any court of competent jurisdiction to enforce the arbitration award. This paragraph will not prevent either party from seeking provisional relief (including a temporary restraining order or preliminary injunction) from any court having jurisdiction over the parties and the subject matter of their dispute relating to Executive’s obligations under this Agreement and the Inventions and Restrictive Covenant Agreement. BY AGREEING TO THIS BINDING ARBITRATION PROVISION, BOTH EXECUTIVE AND THE COMPANY GIVE UP ALL RIGHTS TO TRIAL BY JURY.

 

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8. Counterparts. This Agreement may be executed in counterparts, each of which together constitute one and the same instrument. Signatures delivered by facsimile or email PDF shall be effective for all purposes.

 

9. Notices. Notices and all other communications contemplated by this Agreement will be in writing and will be deemed to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid. In the case of Executive, mailed notices will be addressed to his at the home address which he most recently communicated to the Company in writing. In the case of the Company, mailed notices will be addressed to its corporate headquarters, and all notices will be directed to the attention of the CEO or General Counsel.

 

10. No Construction against Drafter. No provision of this Agreement or any related document will be construed against or interpreted to the disadvantage of any party hereto by any court or other governmental or judicial authority by reason of such party having or being deemed to have structured or drafted such provision.

 

11. Taxes. Notwithstanding anything to the contrary in this Agreement, the Company may withhold from all amounts payable under this Agreement all federal, state, local and foreign taxes that are required to be withheld pursuant to any applicable laws and regulations. Notwithstanding anything to the contrary in this Agreement, Executive and the Company agree that this Agreement shall be interpreted to comply with or be exempt from Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations and authoritative guidance promulgated thereunder to the extent applicable (collectively “Section 409A”), and all provisions of this Agreement shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A. However, the Company makes no representation that any or all of the payments described in this Agreement will be exempt from or comply with Section 409A and makes no undertaking to preclude Section 409A from applying to any such payment. Executive understands and agrees that Executive shall be solely responsible for the payment of any taxes, penalties, interest or other expenses incurred by Executive on account of noncompliance with Section 409A and in no event will the Company, any of its subsidiaries or other affiliates, or any of their respective directors, officers, agents, attorneys, employees, executives, shareholders, investors, members, managers, trustees, fiduciaries, representatives, principals, accountants, insurers, successors or assigns be liable for any additional tax, interest or penalties that may be imposed on the Executive under Section 409A or any damages for failing to comply with Section 409A.

 

[Signatures appear on following page]

 

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IN WITNESS WHEREOF, the parties hereto have executed and delivered this Employment Separation Agreement as of the day and year set forth below.

 

  Marrone Bio Innovations, Inc.
     
  By: /s/ Kevin Helash
Dated: September 21, 2020 Name: Kevin Helash
  Title: Chief Executive Officer
     
  EXECUTIVE
Dated: September 21, 2020    
  /s/ James B. Boyd
  James B. Boyd

 

[Signature Page to Employment Separation Agreement]

 

 
 

 

Exhibit A

 

Employee Confidential Information and Assignment of Inventions Agreement

 

 
 

 

Exhibit B

 

General Release

 

This General Release (“Release”) is entered into as of September 21, 2020, by and between James B. Boyd (“Executive”) and Marrone Bio Innovations, Inc. (the “Company”). Executive and the Company are sometimes collectively referred to as the “Parties.”

 

1. In consideration for Executive’s execution of this Release and Executive’s promises and covenants contained (a) herein and (b) in the Employment Separation Agreement between the Company and Executive (the “Employment Separation Agreement”), the Company agrees to provide to Executive the benefit described in Section 1(e) of the Employment Separation Agreement, subject to the effectiveness of this Release in accordance with paragraph 4 of this Release.

 

2. Executive hereby reaffirms his promises and covenants set forth in the Employment Separation Agreement, the terms of which Separation Agreement are incorporated herein by reference in their entirety as though fully set forth herein, including, without limitation, Executive’s promises and covenants set forth in paragraphs 1, 2, 4, and 7 of the Employment Separation Agreement.

 

3. Executive, on behalf of himself, his heirs, executors, agents, representatives, and assigns (collectively, the “Releasors”) hereby fully acquits, releases, waives and discharges the Company, its and their affiliated, related, parent or subsidiary companies, and its and their predecessors, successors, and present and former officers, directors, committee members, representatives, attorneys, agents or employees (the “Company Parties”) from any and all claims, obligations, liabilities, complaints, causes of action, charges, debts, and demands of whatever kind whatsoever, in law or in equity, known or unknown, asserted or unasserted (“Claims”), which Executive has ever had or now has against the Company Parties, including without limitation, Claims arising out of or in any way related to Executive’s relationship with any or all of the Company Parties and all Claims with respect to any aspect of Executive’s employment, compensation, or termination from employment by the Company (“Executive Released Claims”). Executive Released Claims include, but are not limited to:

 

(i) all Claims arising from Executive’s employment with the Company or the termination of that employment, including Claims for wrongful termination or retaliation and the terms and conditions of employment;

 

(ii) all Claims related to Executive’s compensation or benefits from the Company, including, salary, wages, overtime, meal and rest breaks, bonuses, commissions, incentive compensation, profit sharing, retirement benefits, paid time off, vacation, sick leave, leaves of absence, expense reimbursements, equity, severance pay, and fringe benefits;

 

(iii) all Claims for breach of contract, breach of quasi-contract, promissory estoppel, detrimental reliance, and breach of the implied covenant of good faith and fair dealing;

 

(iv) all tort Claims, including Claims for fraud, defamation, slander, libel, disparagement, negligent or intentional infliction of emotional distress, personal injury, negligence, compensatory or punitive damages, negligent or intentional misrepresentation, and discharge in violation of public policy;

 

(v) all federal, state, and local statutory Claims, including Claims for discrimination, harassment, retaliation, attorneys’ fees, medical expenses, experts’ fees, costs and disbursements; and

 

(vi) any other Claims of any kind whatsoever, arising from the beginning of time until the date Executive signs this Release, in each case whether based on contract, tort, statute, local ordinance, regulation or any comparable law, public policy or common law in any jurisdiction.

 

 
 

 

By way of example and not in limitation of the foregoing, Executive Released Claims include any Claims arising under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq.; the Civil Rights Act of 1991; the Civil Rights Acts of 1866 and/or 1871, 42 U.S.C. Section 1981; the Americans with Disabilities Act, 42 U.S.C. 12101 et seq., the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. § 621 et seq.; the Family Medical Leave Act, 29 U.S.C. § 2601 et seq.; Executive Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq.; the federal Worker Adjustment Retraining Notification Act (“WARN Act”), 29 U.S.C. § 2102 et seq., the California WARN Act, California Labor Code § 1400 et seq., the California Fair Employment and Housing Act, Cal. Gov. Code §12900 et seq., the California Labor Code and the orders of the California Industrial Welfare Commission. Executive and the Company intend for this release to be enforced to the fullest extent permitted by law. EXECUTIVE UNDERSTANDS AND AGREES THAT THIS RELEASE CONTAINS A GENERAL RELEASE OF ALL CLAIMS.

 

4. Executive further unconditionally releases and forever discharges the Company Parties from any and all Claims that Executive may have as of the date Executive signs this Release arising under the ADEA. By signing this Release, Executive acknowledges and confirms that: (i) Executive has been advised by the Company to consult with an attorney of Executive’s choice before signing this Release; (ii) Executive was given no fewer than twenty-one (21) days to consider the terms of this Release, although Executive may sign it sooner if desired; (iii) Executive is providing this release in exchange for consideration in addition to that to which Executive is already entitled; (iv) Executive has seven (7) days from the date of signing this Release to revoke this Release by providing the Company with a written notice of revocation delivered to Linda Moore, General Counsel and Corporate Secretary, at lmoore@marronebio.com or to the Company’s physical address at 1540 Drew Avenue, Davis, California 95618, in a manner reasonably calculated to be received by the Company on or before the end of such seven-day period (“Revocation Period”); (v) this Release will not become effective until the Revocation Period passes without Executive revoking the Agreement; (vi) the release contained in this paragraph does not apply to rights and claims that may arise after the date on which Executive signs this Release, and (vii) Executive knowingly and voluntarily accepts the terms of this Release. Executive further agrees that any change to this Release, whether material or immaterial, will not restart the twenty-one (21) day period for Executive to consider the terms of this Release.

 

5. The Releasors and the Company acknowledge that they are aware of the provisions of California Civil Code, Section 1542, which reads as follows:

 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.”

 

The Releasors hereby expressly give up all the benefits of Section 1542 and of any other similar law of this or any other jurisdiction. The Releasors acknowledge that there may exist claims or facts in addition to or different from those which are now known or believed by the Releasors to exist and the Releasors agree that it is their intention to fully settle and release such claims, whether known or unknown, that may exist as of the date of this Release.

 

6. Notwithstanding anything to the contrary set forth in paragraph 3, 4, or 5 of this Release, the Releasors do not waive, release or discharge the Company Parties from Executive’s rights, if any, to vested benefits under the Company’s 401(k) retirement plan or with respect to Executive’s outstanding equity awards, if any; Executive’s rights, if any, to indemnification or advancement of expenses in accordance with the Company’s certificate of incorporation, bylaws or other corporate governance document, or any applicable insurance policy or applicable law, including Section 2802 of the California Labor Code; any Claim which may arise in the future from events or actions occurring after the date that Executive executes this Release; Claims for worker’s compensation benefits; Claims for unemployment insurance benefits; any Claims that cannot be released in accordance with applicable law; and any rights created by this Release or the Employment Separation Agreement.

 

 

 

 

7. Executive hereby represents that Executive has not filed or commenced any proceeding against any of the Releasees based upon any Executive Released Claims.

 

8. Executive warrants that no promise or inducement has been offered for this Release other than as set forth herein and that this Release is executed without reliance upon any other promises or representations, oral or written. Any modification of this Release must be made in writing and be signed by Executive and the Company.

 

9. If any provision of this Release or compliance by Executive or the Company with any provision of the Release constitutes a violation of any law, or is or becomes unenforceable or void, then such provision, to the extent only that it is in violation of law, unenforceable or void, will be deemed modified to the extent necessary so that it is no longer in violation of law, unenforceable or void, and such provision will be enforced to the fullest extent permitted by law. If such modification is not possible, such provision, to the extent that it is in violation of law, unenforceable or void, will be deemed severable from the remaining provisions of this Release, which provisions will remain binding on both Executive and the Company. This Release is governed by, and construed and interpreted in accordance with the laws of the State of California, without regard to principles of conflicts of law. This Release, together with the Employment Separation Agreement, represents the entire understanding of the Parties with respect to subject matter herein; no oral representations have been made or relied upon by the Parties. The Company and Executive each agrees that any and all disputes arising out of the terms of this Agreement, any of the matters herein released, and the Inventions and Restrictive Covenant Agreement will be subject to binding confidential arbitration. “Confidential” means the fact of a dispute, the fact of the arbitration, the details of the arbitration, and the result shall be kept confidential by the Parties. The arbitration shall be conducted by one arbitrator, under the auspices of JAMS and under its then-current Streamlined Arbitration Rules and Procedures (if no disputed claim or counterclaim exceeds $250,000, not including interest or attorneys’ fees), or under its then-current Comprehensive Arbitration Rules and Procedures (if any disputed claim or counterclaim exceeds $250,000, not including interest or attorneys’ fees). Any arbitration will be governed by the Federal Arbitration Act (“FAA”) and conducted in a manner consistent with the JAMS Rules, supplemented by the California Rules of Civil Procedure, to the extent permitted by the FAA. The power of the arbitrator shall not exceed that possessed by a judge in a Superior Court in California. The arbitrator shall issue a written opinion in support of his or her decision, stating the legal and factual basis for the decision and the reasoning leading to such decision. The arbitrator is prohibited from awarding damages or remedies in excess of those allowed by the provisions of this Agreement. The decision and award of the arbitrator shall be final and binding and judgment on the award so rendered may be entered in any court having jurisdiction. The arbitration shall be held in Yolo County, California, or a mutually convenient location. The parties further agree that the prevailing party in any arbitration will be entitled to injunctive relief in any court of competent jurisdiction to enforce the arbitration award. This paragraph will not prevent either party from seeking provisional relief (including a temporary restraining order or preliminary injunction) from any court having jurisdiction over the parties and the subject matter of their dispute relating to Executive’s obligations under this Agreement and the Inventions and Restrictive Covenant Agreement. BY AGREEING TO THIS BINDING ARBITRATION PROVISION, BOTH EXECUTIVE AND THE COMPANY GIVE UP ALL RIGHTS TO TRIAL BY JURY.

 

10. No action taken by the Parties hereto, or either of them, either previously or in connection with this Release, shall be deemed or constructed to be: (a) an admission of the truth or falsity of any claims heretofore made; or (b) an acknowledgment or admission by either party of any fault or liability whatsoever to the other party or to any third party.

 

11. Each of the Company Parties, other than the Company, is intended to be a third party beneficiary of this Release.

 

[Signatures appear on following page]

 

 

 

 

EXECUTIVE’S ACCEPTANCE OF RELEASE
 
BEFORE SIGNING MY NAME TO THE RELEASE, I STATE THE FOLLOWING: I HAVE READ THE RELEASE, I UNDERSTAND IT AND I KNOW THAT I AM GIVING UP IMPORTANT RIGHTS. I HAVE OBTAINED SUFFICIENT INFORMATION TO INTELLIGENTLY EXERCISE MY OWN JUDGMENT. I HAVE BEEN ADVISED THAT I SHOULD CONSULT WITH AN ATTORNEY BEFORE SIGNING IT, AND I HAVE SIGNED THE RELEASE KNOWINGLY AND VOLUNTARILY.

 

 Date delivered to Executive: September 21, 2020

 
   
Executed this 21st day of September, 2020.  
   
/s/ James B. Boyd  
James B. Boyd  

 

[Signature Page to General Release Agreement]

 

 

 

 

Exhibit C

 

Reaffirmation Agreement

 

This Reaffirmation Agreement (the “Reaffirmation Agreement”) is entered into as of [●], 202[●], by and between James B. Boyd (“Executive”) and Marrone Bio Innovations, Inc. (the “Company”). Executive and the Company are sometimes collectively referred to as the “Parties.”

 

1. Executive’s employment with the Company terminated on [●], 202[●] (the “Termination Date”).

 

2. The purpose of this Reaffirmation Agreement is to effectuate the intent and agreement of the Parties as reflected in the General Release between the Parties dated as of [●], 202[●] (the “General Release”), by advancing to the execution date of this Reaffirmation Agreement the effective date of Executive’s general waiver and release of all Claims against the Released Parties, as set forth in the Release Agreement.

 

3. In consideration for Executive’s execution of this Reaffirmation Agreement and Executive’s promises and covenants contained (a) herein and (b) in the Employment Separation Agreement between the Company and Executive (the “Employment Separation Agreement”), the Company agrees to provide to Executive the benefit described in Section 1(f) of the Employment Separation Agreement, subject to the effectiveness of this Release in accordance with paragraph 6 of this Release.

 

4. Executive hereby reaffirms his promises and covenants set forth in the Employment Separation Agreement, the terms of which Separation Agreement are incorporated herein by reference in their entirety as though fully set forth herein, including, without limitation, Executive’s promises and covenants set forth in paragraphs 1, 2, 4, and 7 of the Employment Separation Agreement.

 

5. Accordingly, with his signature below, Executive, on behalf of himself, his heirs, executors, agents, representatives, and assigns (collectively, the “Releasors”), hereby specifically acknowledges and reaffirms that he the fully acquits, releases, waives and discharges the Company, its and their affiliated, related, parent or subsidiary companies, and its and their predecessors, successors, and present and former officers, directors, committee members, representatives, attorneys, agents or employees (the “Company Parties”) from any and all claims, obligations, liabilities, complaints, causes of action, charges, debts, and demands of whatever kind whatsoever, in law or in equity, known or unknown, asserted or unasserted (“Claims”), which Executive has ever had or now has against the Company Parties, including without limitation, Claims arising out of or in any way related to Executive’s relationship with any or all of the Company Parties and all Claims with respect to any aspect of Executive’s employment, compensation, or termination from employment by the Company (“Executive Released Claims”). Executive Released Claims include, but are not limited to:

 

(i) all Claims arising from Executive’s employment with the Company or the termination of that employment, including Claims for wrongful termination or retaliation and the terms and conditions of employment;

 

(ii) all Claims related to Executive’s compensation or benefits from the Company, including, salary, wages, overtime, meal and rest breaks, bonuses, commissions, incentive compensation, profit sharing, retirement benefits, paid time off, vacation, sick leave, leaves of absence, expense reimbursements, equity, severance pay, and fringe benefits;

 

(iii) all Claims for breach of contract, breach of quasi-contract, promissory estoppel, detrimental reliance, and breach of the implied covenant of good faith and fair dealing;

 

 

 

 

(iv) all tort Claims, including Claims for fraud, defamation, slander, libel, disparagement, negligent or intentional infliction of emotional distress, personal injury, negligence, compensatory or punitive damages, negligent or intentional misrepresentation, and discharge in violation of public policy;

 

(v) all federal, state, and local statutory Claims, including Claims for discrimination, harassment, retaliation, attorneys’ fees, medical expenses, experts’ fees, costs and disbursements; and

 

(vi) any other Claims of any kind whatsoever, arising from the beginning of time until the date Executive signs this Release, in each case whether based on contract, tort, statute, local ordinance, regulation or any comparable law, public policy or common law in any jurisdiction.

 

By way of example and not in limitation of the foregoing, Executive Released Claims include any Claims arising under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq.; the Civil Rights Act of 1991; the Civil Rights Acts of 1866 and/or 1871, 42 U.S.C. Section 1981; the Americans with Disabilities Act, 42 U.S.C. 12101 et seq., the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. § 621 et seq.; the Family Medical Leave Act, 29 U.S.C. § 2601 et seq.; Executive Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq.; the federal Worker Adjustment Retraining Notification Act (“WARN Act”), 29 U.S.C. § 2102 et seq., the California WARN Act, California Labor Code § 1400 et seq., the California Fair Employment and Housing Act, Cal. Gov. Code §12900 et seq., the California Labor Code and the orders of the California Industrial Welfare Commission. Executive and the Company intend for this release to be enforced to the fullest extent permitted by law. EXECUTIVE UNDERSTANDS AND AGREES THAT THIS RELEASE CONTAINS A GENERAL RELEASE OF ALL CLAIMS.

 

Executive understands and agrees that such waiver and release will be effective as to all Claims arising on or before the date he executes this Reaffirmation Agreement, subject to his effectuation of this Reaffirmation Agreement in the manner set forth in the next Section hereof. Executive further understands and agrees that he will not be entitled to the consideration provided for in Section 1(f) of the Employment Separation Agreement unless and until Executive executes this Reaffirmation Agreement and the Revocation Period described in the next Section hereof passes without Executive revoking this Reaffirmation Agreement.

 

6. Executive further unconditionally releases and forever discharges the Company Parties from any and all Claims that Executive may have as of the date Executive signs this Reaffirmation Agreement arising under the ADEA. By signing this Reaffirmation Agreement, Executive acknowledges and confirms that: (i) Executive has been advised by the Company to consult with an attorney of Executive’s choice before signing this Reaffirmation Agreement; (ii) Executive was given no fewer than twenty-one (21) days to consider the terms of this Reaffirmation Agreement, although Executive may sign it sooner if desired; (iii) Executive is providing the release provided for in in this Reaffirmation Agreement is in exchange for consideration in addition to that to which Executive is already entitled; (iv) Executive has seven (7) days from the date of signing this Reaffirmation Agreement to revoke this Reaffirmation Agreement by providing the Company with a written notice of revocation delivered to Linda Moore, General Counsel and Corporate Secretary, at lmoore@marronebio.com or to the Company’s physical address at 1540 Drew Avenue, Davis, California 95618, in a manner reasonably calculated to be received by the Company on or before the end of such seven-day period (“Revocation Period”); (v) this Reaffirmation Agreement will not become effective until the Revocation Period passes without Executive revoking this Reaffirmation Agreement; (vi) the release contained in this Reaffirmation Agreement does not apply to rights and claims that may arise after the date on which Executive signs this Reaffirmation Agreement, and (vii) Executive knowingly and voluntarily accepts the terms of this Reaffirmation Agreement. Executive further agrees that any change to this Reaffirmation Agreement or the Release Agreement, whether material or immaterial, will not restart the twenty-one (21) day period for Executive to consider the terms of this Reaffirmation Agreement.

 

 

 

 

7. The Releasors and the Company acknowledge that they are aware of the provisions of California Civil Code, Section 1542, which reads as follows:

 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.”

 

The Releasors hereby expressly give up all the benefits of Section 1542 and of any other similar law of this or any other jurisdiction. The Releasors acknowledge that there may exist claims or facts in addition to or different from those which are now known or believed by the Releasors to exist and the Releasors agree that it is their intention to fully settle and release such claims, whether known or unknown, that may exist as of the date of this Release.

 

8. Notwithstanding anything to the contrary set forth in paragraph 5, 6, or 7 of this Release, the Releasors do not waive, release or discharge the Company Parties from Executive’s rights, if any, to vested benefits under the Company’s 401(k) retirement plan or with respect to Executive’s outstanding equity awards, if any; Executive’s rights, if any, to indemnification or advancement of expenses in accordance with the Company’s certificate of incorporation, bylaws or other corporate governance document, or any applicable insurance policy or applicable law, including Section 2802 of the California Labor Code; any Claim which may arise in the future from events or actions occurring after the date that Executive executes this Reaffirmation Agreement; Claims for worker’s compensation benefits; Claims for unemployment insurance benefits; any Claims that cannot be released in accordance with applicable law; and any rights created by this Reaffirmation Agreement, the General Release or the Employment Separation Agreement.

 

9. Executive hereby represents that Executive has not filed or commenced any proceeding against any of the Releasees based upon any Executive Released Claims.

 

10. Executive warrants that no promise or inducement has been offered for this Reaffirmation Agreement other than as set forth herein and that this Reaffirmation Agreement is executed without reliance upon any other promises or representations, oral or written. Any modification of this Reaffirmation Agreement must be made in writing and be signed by Executive and the Company.

 

11. If any provision of this Reaffirmation Agreement or compliance by Executive or the Company with any provision of this Reaffirmation Agreement constitutes a violation of any law, or is or becomes unenforceable or void, then such provision, to the extent only that it is in violation of law, unenforceable or void, will be deemed modified to the extent necessary so that it is no longer in violation of law, unenforceable or void, and such provision will be enforced to the fullest extent permitted by law. If such modification is not possible, such provision, to the extent that it is in violation of law, unenforceable or void, will be deemed severable from the remaining provisions of this Reaffirmation Agreement, which provisions will remain binding on both Executive and the Company. This Reaffirmation Agreement is governed by, and construed and interpreted in accordance with the laws of the State of California, without regard to principles of conflicts of law. This Reaffirmation Agreement, together with the Employment Separation Agreement, represents the entire understanding of the Parties with respect to subject matter herein; no oral representations have been made or relied upon by the Parties. The Company and Executive each agrees that any and all disputes arising out of the terms of this Reaffirmation Agreement, the Exhibits hereto, any of the matters herein released, and the Inventions and Restrictive Covenant Agreement will be subject to binding confidential arbitration. “Confidential” means the fact of a dispute, the fact of the arbitration, the details of the arbitration, and the result shall be kept confidential by the Parties. The arbitration shall be conducted by one arbitrator, under the auspices of JAMS and under its then-current Streamlined Arbitration Rules and Procedures (if no disputed claim or counterclaim exceeds $250,000, not including interest or attorneys’ fees), or under its then-current Comprehensive Arbitration Rules and Procedures (if any disputed claim or counterclaim exceeds $250,000, not including interest or attorneys’ fees). Any arbitration will be governed by the Federal Arbitration Act (“FAA”) and conducted in a manner consistent with the JAMS Rules, supplemented by the California Rules of Civil Procedure, to the extent permitted by the FAA. The power of the arbitrator shall not exceed that possessed by a judge in a Superior Court in California. The arbitrator shall issue a written opinion in support of his or her decision, stating the legal and factual basis for the decision and the reasoning leading to such decision. The arbitrator is prohibited from awarding damages or remedies in excess of those allowed by the provisions of this Agreement. The decision and award of the arbitrator shall be final and binding and judgment on the award so rendered may be entered in any court having jurisdiction. The arbitration shall be held in Yolo County, California, or a mutually convenient location. The parties further agree that the prevailing party in any arbitration will be entitled to injunctive relief in any court of competent jurisdiction to enforce the arbitration award. This paragraph will not prevent either party from seeking provisional relief (including a temporary restraining order or preliminary injunction) from any court having jurisdiction over the parties and the subject matter of their dispute relating to Executive’s obligations under this Agreement and the Inventions and Restrictive Covenant Agreement. BY AGREEING TO THIS BINDING ARBITRATION PROVISION, BOTH EXECUTIVE AND THE COMPANY GIVE UP ALL RIGHTS TO TRIAL BY JURY.

 

12. No action taken by the Parties hereto, or either of them, either previously or in connection with this Reaffirmation Agreement, shall be deemed or constructed to be: (a) an admission of the truth or falsity of any claims heretofore made; or (b) an acknowledgment or admission by either party of any fault or liability whatsoever to the other party or to any third party.

 

13. Each of the Company Parties, other than the Company, is intended to be a third party beneficiary of this Reaffirmation Agreement.

 

[Signatures appear on following page]

 

 

 

  

EXECUTIVE’S ACCEPTANCE OF RELEASE
 
BEFORE SIGNING MY NAME TO THE REAFFIRMATION AGREEMENT, I STATE THE FOLLOWING: I HAVE READ THE REAFFIRMATION AGREEMENT, I UNDERSTAND IT AND I KNOW THAT I AM GIVING UP IMPORTANT RIGHTS. I HAVE OBTAINED SUFFICIENT INFORMATION TO INTELLIGENTLY EXERCISE MY OWN JUDGMENT. I HAVE BEEN ADVISED THAT I SHOULD CONSULT WITH AN ATTORNEY BEFORE SIGNING THE REAFFIRMATION AGREEMENT, AND I HAVE SIGNED IT KNOWINGLY AND VOLUNTARILY.

 

 Date delivered to Executive: [●], 202[●].

 
   
Executed this ___________ day of [●], 202[●].  
   
   

James B. Boyd

 

 

[Signature Page to Reaffirmation Agreement]

 

 

 

 

Exhibit D

 

Consulting Agreement

 

 

 

 

Exhibit 10.2

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS

EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH PORTIONS ARE

MARKED AS INDICATED WITH BRACKETS (“[***]”) BELOW

 

MARRONE BIO INNOVATIONS, INC.

 

CONSULTING AGREEMENT

 

This Consulting Agreement (“Agreement”) is made and entered into as of the 21 day of September 2020 (“Effective Date”) by and between Marrone Bio Innovations, Inc., a Delaware corporation with its principal place of business located at 1540 Drew Avenue, Davis, CA 95618) (“MBI”), and James B. Boyd, (“Consultant”). MBI and Consultant are sometimes referred to herein individually as a “Party” or collectively as “the Parties”. For the Parties’ mutual benefit, following Consultant’s termination of employment with MBI pursuant to that certain Employment Separation Agreement, effective as of September 21, 2020, by and between Consultant and MBI (such agreement, including the exhibits thereto, the “Separation Agreement”), MBI desires to engage the services of Consultant as an independent contractor, and Consultant desires to provide consulting services as an independent contractor, on terms set forth more fully below.

 

In consideration of the mutual promises contained herein, the Parties agree as follows:

 

1. SERVICES AND COMPENSATION

 

(a) Services. Consultant agrees to perform for MBI the services as described in Schedule 1 incorporated herein by reference and such other services as may be requested by MBI from time to time (the “Services”). The Parties may delete, add or substitute Services, extend the Term of this Agreement (defined below in Section 9(a)) or alter the terms of compensation by amending Schedule 1, provided that such amendment must be signed by an authorized representative of each Party and must indicate whether it is to replace or alter the then existing Schedule 1.

 

(b) Compensation. MBI agrees to pay Consultant the compensation set forth in Schedule 1 for the performance of the Services. Such compensation shall be payable on the schedule set forth in Schedule 1.

 

(c) MBI Obligations. The obligations of MBI related to performance of the Services are also set forth in Schedule 1.

 

(d) Authorization by MBI Required. Consultant is authorized to perform the Services under this Agreement only upon the request or at the direction of an Officer of MBI.

 

1

 

 

2. CONFIDENTIALITY

 

(a) Definition. “Confidential Information” means any MBI proprietary information, technical data, Trade Secrets or know-how, including, but not limited to, research, product plans, products, services, customers, customer lists, markets, software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, finances or other business information disclosed by MBI to Consultant either directly or indirectly in writing, orally, or by drawings or inspection of parts or equipment. “Trade Secrets” means information that derives independent economic value, actual or potential, from not being generally known to the public or other persons who can obtain economic value from its disclosure or use, and is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

 

(b) Obligation of Confidentiality. Consultant shall not, during or subsequent to the Term of this Agreement, use MBI’s Confidential Information for any purpose whatsoever other than the performance of Services on behalf of MBI or disclose MBI’s Confidential Information to any third party, and it is understood that such Confidential Information shall remain the sole property of MBI. Consultant further agrees to take all reasonable precautions to prevent any unauthorized disclosure of such Confidential Information including, but not limited to, having each employee of Consultant, if any, with access to any Confidential Information, execute a nondisclosure agreement containing provisions in MBI’s favor substantially similar to Sections 2 (“Confidentiality”), 3 (“Ownership and Licenses”) and 4 (“Warranties of Originality and Noninfringement”) of this Agreement.

 

(c) Exceptions to Confidentiality Obligation. Confidential Information does not include information which (i) is known to Consultant (except through Consultant’s prior employment with MBI) at the time of disclosure to Consultant by MBI as evidenced by written records of Consultant, (ii) has become publicly known and made generally available through no wrongful act of Consultant, or (ii) has been rightfully received by Consultant from a third party who is not bound to treat the information as confidential on behalf of MBI and who is authorized to make such disclosure. Nothing in this Agreement shall prevent Consultant from disclosing Confidential Information to the extent Consultant is legally compelled to do so by any court or governmental investigative, judicial, or regulatory agency pursuant to proceedings over which such court or agency has jurisdiction; provided, however, that prior to any such disclosure, Consultant shall: (a) assert the confidential nature of the Confidential Information to the court or agency; (b) immediately notify MBI, in writing of the court’s or agency’s order or request to disclose; and (c) cooperate fully with MBI, at MBI’s request, in protecting against any such disclosure and/or obtaining a protective order narrowing the scope of the compelled disclosure and protecting the confidentiality of the Confidential Information.

 

(d) Prohibition Against Disclosing Relationship. Without MBI’s prior written approval, Consultant shall not directly or indirectly disclose to anyone the existence of this Agreement or the fact that Consultant is providing Services to MBI, except (i) as may be required by law and (ii) to its attorneys, accountants, and other professional advisors.

 

2

 

 

(e) Prohibition Against Improper Use of Third-Party Information. Consultant agrees that Consultant will not, during the Term of this Agreement or thereafter, improperly use in connection with the Services or disclose to MBI any proprietary information or trade secrets of any former or current employer or other person or entity with which Consultant has an agreement or duty to keep in confidence information acquired by Consultant in confidence, if any, and that Consultant shall not bring onto the premises of MBI any confidential or non-public document or proprietary information belonging to such employer, person or entity unless consented to in writing by such employer, person or entity.

 

(f) Third-Party Confidential Information Disclosed by MBI. Consultant recognizes that MBI has received and in the future will receive from third parties their confidential or proprietary information subject to a duty on MBI’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. Consultant agrees that Consultant owes MBI and such third parties, during the Term of this Agreement and thereafter, a duty to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person, firm or corporation or to use it except as necessary in performing the Services for MBI and in accordance with Consultant’s confidentiality obligations.

 

(g) Return of Confidential Information and other Documents. Upon the termination of this Agreement, or upon MBI’s earlier request, Consultant shall deliver to MBI all of MBI’s property and Confidential Information in tangible form that Consultant may have in Consultant’s possession or control.

 

(h) Defend Trade Secrets Act. Notwithstanding anything to the contrary in this Agreement, Consultant is hereby notified that 18 U.S.C. § 1833(b) states as follows:

 

“An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that—(A) is made—(i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.”

 

Accordingly, notwithstanding anything to the contrary in this Agreement, Consultant understands that it has the right to disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law. Consultant understands that it also has the right to disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure. Consultant understands and acknowledges that nothing in this Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by 18 U.S.C. § 1833(b).

 

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3. OWNERSHIP AND LICENSES

 

(a) Ownership by MBI. Consultant agrees that all inventions and discoveries (including, but not limited to, concepts, ideas, processes, programs, algorithms, methods, formulae, compositions, techniques, articles, and machines, as well as improvements or know-how) and all original works of authorship, whether or not patentable, copyrightable or protectable as Trade Secrets, conceived or made by Consultant, alone or with others, that result from Services provided by Consultant under this Agreement (collectively “Work Product”), are the sole and exclusive property of MBI. For avoidance of doubt, Work Product does not include Pre-Existing Material, defined in Section 3(b). Consultant hereby irrevocably assigns to MBI all of its worldwide right, title and interest in and to the Work Product, including all intellectual property rights and moral rights. Consultant will ensure that each of its employees who provide Services, if any, has entered into a written agreement with Consultant that appropriately assigns, either directly to MBI or to Consultant who will then transfer these rights to MBI, any and all rights and interests in any Work Product created in connection with this Agreement. Consultant is prohibited from using any equipment, supplies, or Confidential Information of MBI when doing work for other entities or persons. Any inventions, discoveries, original works of authorship, and other work done by Consultant in violation of the preceding sentence shall be considered Work Product and shall be the sole and exclusive property of MBI; and Consultant’s assignment to MBI applies to such Work Product.

 

Consultant irrevocably agrees not to assert against MBI or its successors, assigns, or licensees any claim of any intellectual property rights or moral rights of Consultant relating to the Work Product. Consultant will ensure that each of its employees who provide Services, if any, has entered into a written agreement with Consultant that appropriately waives any and all claims relating to any Work Product created in connection with this Agreement.

 

(b) Pre-Existing Materials. Consultant agrees that if in the course of performing the Services, Consultant incorporates into any deliverable provided to MBI, any invention, original work of authorship, improvement, development, concept, discovery, or other proprietary information owned by Consultant or in which Consultant has a right or license (“Pre-Existing Material”), (i) Consultant shall inform MBI in writing before incorporating such Pre-Existing Material into any such deliverable and shall provide substantiation of its assertion that such Pre-Existing Material is not, in fact, Work Product; and (ii) MBI is hereby granted and shall have a nonexclusive, royalty-free, perpetual, irrevocable, worldwide license to reproduce, make derivative works based upon, modify, perform, display, use, make, have made, sell, distribute, and import such Pre-Existing Material as part of or in connection with such deliverable. Consultant is prohibited from incorporating any third-party materials (including, but not limited to, open source software and Creative Commons documents and materials), intellectual property, or proprietary information into any deliverable without MBI’s prior written approval of such incorporation.

 

(c) Future Assurances. Consultant agrees to assist MBI, or its designee, at MBI’s expense, in every proper way to secure MBI’s rights in the Inventions and any copyrights, patents, mask work rights or other intellectual property rights in any and all countries, including the disclosure to MBI of all pertinent information and data, the execution of all applications, specifications, oaths, assignments and all other instruments which MBI shall deem necessary in order to apply for and obtain such rights and in order to assign and convey to MBI, its successors, assigns and nominees the sole and exclusive rights, title and interest in and to such Work Product, and any copyrights, patents, mask work rights or other intellectual property rights. Consultant further agrees that Consultant’s obligation to execute or cause to be executed, when it is in Consultant’s power to do so, any such instrument or papers shall continue after the expiration or termination of this Agreement.

 

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(d) Power of Attorney. Consultant agrees that if MBI is unable because of Consultant’s unavailability, dissolution, incapacity, or for any other reason, to secure a signature by or on behalf of Consultant to apply for or to pursue any application for any United States or foreign patents or mask work or copyright registrations covering the Work Product assigned to MBI above, then Consultant hereby irrevocably designates and appoints MBI and its duly authorized officers and agents as Consultant’s agent and attorney in fact, to act for and on Consultant’s behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of patents, copyright and mask work registrations with the same legal force and effect as if executed by Consultant. This appointment is coupled with an interest (which means that it shall remain in effect even after Consultant dissolves or becomes incapacitated or dies).

 

4. WARRANTIES OF ORIGINALITY AND NONINFRINGEMENT

 

(a) Consultant’s Warranties. Consultant represents and warrants that all Work Product and Services provided will be original with Consultant and will not include any third-party Trade Secrets that Consultant has unlawfully misappropriated, that the Pre-Existing Material will not infringe upon any third-party intellectual property rights or include any third-party Trade Secrets that Consultant has unlawfully misappropriated, and that the use by MBI or its customers, representatives, distributors or dealers will not infringe any patent, copyright, trade secret or other intellectual property right of any third party. Consultant additionally warrants that the Services will be performed in a professional and workmanlike manner, in conformance with the standards for comparable services in the industry, and in compliance with any specifications or other requirements of this Agreement and Schedule 1.

 

(b) Compliance with Laws. Consultant warrants that, in providing the Services, it will comply with all applicable federal, state, and local laws and regulations (including, but not limited to, United States Department of Commerce and other United States export controls; Immigration Reform and Control Act of 1986; applicable wage and hour laws; the Equal Opportunity Clause stated in 41 CFR 60-1.4(a); Executive Order 11246 - Equal Employment Opportunity (as amended); requirements for getting a business license).

 

5. INDEMNIFICATION BY CONSULTANT

 

Consultant shall indemnify and hold MBI harmless against any liability, loss, cost, damage, claims, demands or expenses (including reasonable attorney’s fees) of MBI or its customers, representatives, distributors or dealers arising out of (i) any infringement or misappropriation or claim of infringement or misappropriation with respect to any Work Product, Pre-Existing Material, or Services provided by Consultant; (ii) any bodily injury, death, or damage to tangible property caused by the Services or the negligence, willful misconduct, misrepresentation, or omissions when there is a duty to act, of Consultant or of any person for whose actions Consultant is legally liable; (iii) any violation or claimed violation of a third party’s rights resulting from Consultant’s use of any third-party materials without permission from the third party; or (iv) any claim by a governmental entity or other third party as a result of Consultant’s violation of any law or government regulation.

 

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6. RECORDS AND REPORTS

 

Consultant agrees that it will from time to time during the Term of this Agreement keep MBI advised as to Consultant’s progress in performing the Services and that Consultant will, as requested by MBI, prepare written reports in a form reasonably requested by MBI. It is understood that the time required in the preparation of such written reports shall be considered time devoted to the performance of Consultant’s Services.

 

7. NO CONFLICTING OBLIGATIONS

 

Consultant certifies that Consultant has no outstanding agreement or obligation that is in conflict with any of the provisions of this Agreement, or that would adversely affect Consultant’s performance, and Consultant agrees that Consultant shall not enter into any such conflicting Agreement during the Term of this Agreement.

 

8. INSURANCE

 

During the Term and for the period stated below, Consultant shall maintain, at its own expense, the following insurance coverage: Automobile Liability Insurance, including coverage for all owned, leased, non-owned, and hired vehicular equipment, with minimum coverage of Five Hundred Thousand Dollars ($500,000) per accident for bodily injury and property damage liability combined. The required insurance shall either be maintained for four (4) years after completion of the Services or provide coverage for claims made up to four (4) years after completion of the Services.

 

9. TERM AND TERMINATION

 

(a) Term. The term of Consultant’s service as a consultant to MBI pursuant to this Agreement will commence on the day immediately following the Termination Date (as defined in the Separation Agreement, the “Commencement Date”), and will continue for a term of one year thereafter, unless terminated earlier as provided below or extended by mutual agreement of MBI and the Consultant (the “Term”).

 

(b) Termination by MBI. MBI may terminate this Agreement upon giving five (5) days prior written notice to Consultant. Any such notice of termination shall be addressed to Consultant as stated in Section 13(b) (“Notices”) below. MBI may terminate this Agreement immediately upon notice if Consultant refuses to or is unable to perform the Services or is in breach of any material provision of this Agreement or the Separation Agreement.

 

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(c) Obligations Upon Termination and Survival. Upon such termination all rights and duties of the Parties toward each other shall cease except:

 

(i) if MBI terminates this Agreement within the one-year period following the Commencement Date for any reason other than due to Consultant’s (A) refusal or inability to perform the Services, or (B) breach of any material provision of this Agreement or the Separation Agreement, any unvested restricted stock units granted to Consultant in accordance with Schedule I will immediately vest; and

 

(ii) The following Sections shall survive termination of this Agreement: 2 (“Confidentiality”), 3 (“Ownership and Licenses”). 4 (“Warranties of Originality and Noninfringement”), 5 (“Indemnification by Consultant”); 8 (“Insurance”), 9(c) (“Obligations Upon Termination and Survival”), 10 (“Assignment”), 11 (“Independent Contractor”), 12 (“Arbitration and Equitable Relief”), and 13 (“Miscellaneous”).

 

10. ASSIGNMENT

 

Neither this Agreement nor any right or interest herein may be assigned or transferred by Consultant without the express written consent of MBI. Any such attempted assignment shall be null and void.

 

11. INDEPENDENT CONTRACTOR

 

(a) Independent Contractor Status. Consultant, including any employee of Consultant, will at all times during the performance of the Services be considered an independent contractor. The Services performed are outside the usual course of MBI’s business. Consultant represents and warrants that Consultant is customarily engaged in an independently established trade, occupation, or business of the same nature as the Services performed. Nothing in this Agreement shall in any way be construed to constitute Consultant as an agent, employee or representative of MBI. This Agreement should not be construed as creating an employment relationship, agency, partnership, joint venture or any other form of association for tax purposes or otherwise between the Parties.. Neither Party will have the right to enter into any contracts or binding commitments in the name of the other Party or on such other Party’s behalf. Unless otherwise stated in this Agreement, Consultant shall furnish, at its own expense, the materials, equipment, supplies, and other resources necessary to perform the Services. MBI shall furnish to Consultant for performance of the Services the equipment, materials and data set forth in Schedule 2. The cost to Consultant, if any, to be paid to MBI for such items is set forth in Schedule 2. Upon the earlier of completion of the Services or termination of this Agreement, Consultant shall, within a reasonable time, return to MBI the items furnished by MBI.

 

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(b) Taxes. When required, MBI will issue to Consultant and file with the Internal Revenue Service Form 1099-MISC for payments made to Consultant. Consultant acknowledges and agrees that Consultant is obligated to report as income all compensation received by Consultant pursuant to this Agreement, and Consultant acknowledges the obligation to pay, and agrees to pay, all self-employment and other taxes, and understands that MBI is not responsible for state unemployment insurance or workers’ compensation premiums on Consultant’s account. Consultant acknowledges and agrees that Consultant is obligated to report as income all compensation received by Consultant pursuant to this Agreement. Consultant, on behalf of Consultant and Consultant’s successors, assigns, and heirs, agrees to defend, indemnify and hold MBI, including MBI’s employees, officers, directors, agents, subsidiaries and affiliates, harmless from and against any damage, claim, losses, fee, assessment, interest charge or penalty incurred by or charged to MBI as a result of any claim, cause of action or assessment by any government agency for any nonpayment or late payment by Consultant of any tax or contribution based on compensation paid hereunder to Consultant or because MBI did not withhold any taxes from compensation paid hereunder.

 

(c) No Employee Benefits. Consultant acknowledges that neither Consultant nor any of its employees are entitled to any employee benefits of MBI, including but not limited to, disability or unemployment insurance, workers’ compensation, medical or life insurance, sick leave, compensation time, overtime, retirement or holiday benefits, vacation time, profit sharing, bonuses, or any other employment benefit nor will MBI make deductions from any amounts payable to Consultant for taxes or insurance. All benefits, including workers’ compensation benefits, if applicable, shall be the sole responsibility of Consultant. Consultant agrees to provide workers’ compensation insurance for Consultant employees and agents. If Consultant is reclassified by a state or federal agency or court as an employee of MBI for tax or other purposes, Consultant will become a non-benefit employee and will receive no benefits from MBI, except those mandated by state or federal law, even if by the terms of the benefit plans or programs of MBI in effect at the time of such reclassification Consultant would otherwise be eligible for such benefits.

 

12. ARBITRATION AND EQUITABLE RELIEF

 

(a) Arbitration. Except as provided in Section 12(b) (“Equitable Relief”) below, all disputes, claims, and controversies between the Parties arising out of or related to this Agreement or the breach of this Agreement shall be settled by confidential arbitration. “Confidential” means the fact of a dispute, the fact of the arbitration, the details of the arbitration, and the result shall be kept confidential by the Parties. The arbitration shall be conducted by one arbitrator, under the auspices of JAMS and under its then-current Streamlined Arbitration Rules and Procedures (if no disputed claim or counterclaim exceeds $250,000, not including interest or attorneys’ fees), or under its then-current Comprehensive Arbitration Rules and Procedures (if any disputed claim or counterclaim exceeds $250,000, not including interest or attorneys’ fees). Any arbitration will be governed by the Federal Arbitration Act (“FAA”) and conducted in a manner consistent with the JAMS Rules, supplemented by the California Rules of Civil Procedure, to the extent permitted by the FAA. The power of the arbitrator shall not exceed that possessed by a judge in a Superior Court in California. The arbitrator shall issue a written opinion in support of his or her decision, stating the legal and factual basis for the decision and the reasoning leading to such decision. The arbitrator is prohibited from awarding damages or remedies in excess of those allowed by the provisions of this Agreement. The decision and award of the arbitrator shall be final and binding and judgment on the award so rendered may be entered in any court having jurisdiction. The arbitration shall be held in Yolo County, California, or a mutually convenient location. The Parties will equally share the arbitrator’s fee and the JAMS administrative fee, but each Party shall bear its own costs and expenses, including attorney’s fees, witness fees, travel expenses, and preparation costs. This section will not prevent either Party from seeking provisional relief (including a temporary restraining order or preliminary injunction) from any court having jurisdiction over the Parties and the subject matter of their dispute. BY AGREEING TO THIS BINDING ARBITRATION PROVISION, BOTH CONSULTANT AND MBI GIVE UP ALL RIGHTS TO TRIAL BY JURY.

 

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(b) Equitable Relief. Consultant agrees that it would be impossible or inadequate to measure and calculate MBI’s damages from any breach of the covenants set forth in Sections 2 (“Confidentiality”) or 3 (“Ownership and Licenses”) herein. Accordingly, Consultant agrees that if Consultant breaches Sections 2 or 3, MBI will have available, in addition to any other right or remedy available at law or in equity, the right to obtain from any court of competent jurisdiction an injunction restraining such breach or threatened breach and compelling specific performance of any such provision. Consultant further agrees that no bond or other security shall be required in obtaining such equitable relief.

 

(c) Limitation of Liability. MBI SHALL NOT BE LIABLE FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, OR SPECIAL DAMAGES INCURRED, EVEN IF ADVISED IN ADVANCE OF THE POSSIBILITY OF SUCH DAMAGES. MBI’S LIABILITY WITH RESPECT TO THIS AGREEMENT OR ANY CLAIM RELATED TO THE SERVICES (WHETHER IN CONTRACT, TORT OR OTHERWISE) IS LIMITED TO AN AMOUNT EQUAL TO THE AMOUNTS PAID OR PAYABLE BY MBI UNDER THIS AGREEMENT. THE FOREGOING SHALL CONSTITUTE CONSULTANT’S EXCLUSIVE REMEDY.

 

13. MISCELLANEOUS

 

(a) Entire Agreement; Order of Precedence; and Amendment. This Agreement, including the Schedules attached, is intended as the final, complete and exclusive statement of the terms of the agreement between the Parties, and supersedes all prior understandings, writings, proposals, representations or communications, oral or written, relating to the subject matter hereof (other than the Inventions and Restrictive Covenant Agreement dated [● DATE] between the Parties , which remains in full force and effect to the extent by its terms survives termination of Consultant’s employment, and other than the third sentence of Paragraph 8(a) of the Inventions and Restrictive Covenant Agreement, which the Company hereby waives). In the event of any conflict between the front part of this Agreement (i.e., Sections 1 through 13) and Schedule 1, the provisions of Schedule 1 will prevail. This Agreement may not be modified except in a writing executed by both Parties. For the avoidance of doubt, nothing in this Agreements alters in any way the Parties’ respective rights and obligations under the Separation Agreement.

 

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(b) Notices. Notices shall be given in writing to the address shown at the beginning of this Agreement or under the signature block below, or to such other address as either Party may substitute by written notice to the other. Any notice involving breach or termination shall be personally delivered or sent by recognized overnight courier (such as Federal Express or DHL) or by certified mail, postage pre-paid and return receipt requested. All other notices may additionally be sent by fax or e-mail with a confirmation of transmission by the transmitting machine. All notices shall be deemed to have been given and received on the earlier of actual delivery (except that faxes and e-mails sent on a non-business day or after business hours, according to the recipient’s business calendar, will be deemed received on the next business day) or three (3) days from the date of postmark.

 

(c) Waiver; No Election of Remedies. Failure of either Party to enforce compliance with any provision of this Agreement shall not constitute a waiver of such provision unless accompanied by a clear written and signed statement that such provision is waived. A waiver of any default or of any of the terms and conditions of this Agreement shall not be deemed to be a continuing waiver or a waiver of any other default or of any other term or condition, but shall apply solely to the instance to which such waiver is directed. The termination of this Agreement or the exercise of any right or remedy provided in this Agreement shall be without prejudice to the right to exercise any other right or remedy provided or by law or equity.

 

(d) Severability. In the event any provision of this Agreement is found to be invalid, illegal or unenforceable, a modified provision shall be substituted which carries out as nearly as possible the original intent of the Parties, and the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. If no such substitution can be made, such invalid, illegal or unenforceable provision shall be deleted, and the remaining provisions shall not in any way be affected or impaired thereby.

 

(e) Governing Law and Venue. This Agreement shall be construed in accordance with, and all disputes shall be governed by, the laws of the State of California, as applied to contracts made and to be performed in California, without applying conflict of laws rules. Subject to the Arbitration provision above, the Superior Court of Yolo County and/or the United States District Court for the Eastern District of California shall have exclusive jurisdiction and venue over all controversies; provided, however, that either Party may seek equitable remedies, including injunctive relief and specific performance, for the purpose of protecting its intellectual property rights in any court of competent jurisdiction, wherever located.

 

(f) Headings. Headings in this Agreement are for the purpose of convenience only, and are not intended to be used in its construction or interpretation.

 

(g) Counterparts. This Agreement may be executed in two counterparts with the same effect as if both Parties had signed the same document. All counterparts will be construed together and will constitute one agreement. A facsimile or image file (such as pdf or tiff) copy or photocopy of this Agreement, including the signature pages, shall be deemed to be an original.

 

(h) Interpretation. Each provision of this Agreement shall be fairly interpreted and construed in accordance with its terms and without any strict interpretation or construction in favor of or against either Party.

 

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The Parties have executed this Agreement on the date(s) shown below, to be effective as of the Effective Date first above written.

 

“Consultant”   “MBI”
       
    MARRONE BIO INNOVATIONS, INC.
       
/s/ James B. Boyd   By: /s/ Linda V. Moore
Signature      
James B. Boyd   Name: Linda V. Moore
(Print Name)      
    Title: E.V.P. and General Counsel
       
Date: September 21, 2020   Date: September 21, 2020

 

Attachments

 

Schedule 1 Services, Compensation and Related Obligations

Schedule 2 Equipment and Materials to be Furnished

 

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SCHEDULE 1

 

SERVICES, COMPENSATION AND RELATED OBLIGATIONS

 

Contacts.

 

Consultant:

Name: James B. Boyd

Title: Consultant

 

MBI’s principal contact:

Name: Kevin Helash

Title: CEO

Tel. #: [***]

Fax #: [***]

e-mail: [***]

 

Services.

 

Consultant will provide the following services with regard to the creation of an entity dedicated to eradication of invasive species:

 

[***]

 

It is anticipated that the level of services Consultant will provide pursuant to this Agreement will substantially differ from and will not exceed 20% of the average level of services Consultant provided to MBI as an employee over the 36-month period immediately preceding the Effective Date.

 

Compensation.

 

For all Services described above, MBI shall pay Consultant as follows:

 

200,000 restricted stock units, which will be granted as soon as practical after the Effective Date and, except as otherwise provided in Section 9(c)(i) of the Agreement, which will vest in equal monthly installments over 12 months from the Commencement Date (as that term is defined in Section 9(a) of the Agreement), subject to Consultant’s compliance with the terms of the Agreement and the Separation Agreement. The restricted stock units that vest will be settled (by issuance of shares of MBI common stock) upon, or as soon as practicable (but not more than 30 days) following, the date the restricted stock units vest. Vesting of these restricted stock units shall accelerate in the event of Consultant’s death.

 

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SCHEDULE 2

 

EQUIPMENT AND MATERIALS TO BE FURNISHED

 

By MBI:

 

Laptop, monitor mouse, docking station

 

By Consultant:

 

N/A

 

Cost to Consultant for the Equipment and Materials Provided by MBI:

 

N/A

 

Items to be Returned (in addition to all of MBI’s property and Confidential Information in tangible form):None

 

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Exhibit 99.1

 

Marrone Bio Innovations Announces Plans for CFO Succession

 

President and CFO James Boyd to Retire from the Company; Search Process for New CFO Underway

 

DAVIS, Calif., Sep. 22, 2020 — Marrone Bio Innovations, Inc. (NASDAQ: MBII) (“Marrone Bio”), an international leader in providing growers with sustainable bioprotection and plant health solutions to support global agricultural needs, announced today that company President and Chief Financial Officer James Boyd will retire from his positions.

 

A national search process for the new chief financial officer is underway, and Mr. Boyd will continue as president and CFO during the search process.

 

“Jim has been a key member of the senior management team and a highly-regarded leader for the company over the last seven years” said Chief Executive Officer Kevin Helash. “He has helped guide the company through its successful transition as a market leader in the agricultural biologicals space. On behalf of myself, the board of directors and the entire team at Marrone Bio Innovations, we want to thank Jim for his numerous contributions to the strength of the company and wish him the very best in his retirement.”

 

“The search for a new CFO is underway, and we are looking for an exceptional individual to help lead the company during its next phase of accelerated growth while ensuring we are brilliant at the basics that drive operational and financial excellence,” added Helash. “We have a solid financial team in place and expect the new CFO to be able to make a rapid transition and add immediate value.”

 

“I am proud to have helped build the company into a world-class organization with an unmatched product portfolio in sustainable biological products. Given our recent revenue growth and margin expansion, I am confident the company is poised to deliver meaningful shareholder value. I look forward to working with our finance team as we make this transition and ensure the company’s continuing success,” said Boyd.

 

About Marrone Bio Innovations

 

Marrone Bio Innovations Inc. (NASDAQ: MBII) is a growth-oriented company leading the movement to a more sustainable world through the discovery, development and sale of innovative biological products for crop protection, plant health and waterway systems treatment that help customers operate more sustainably while increasing their return on investment. MBI has screened over 18,000 microorganisms and 350 plant extracts, leveraging its in-depth knowledge of plant and soil microbiomes enhanced by advanced molecular technologies and natural product chemistry to rapidly develop seven product lines. Supported by a robust portfolio of over 400 issued and pending patents, MBI’s currently available commercial products are Regalia®, Stargus®, Grandevo®, Venerate®, Majestene®, Haven®, Pacesetter™, Zelto® Jet Oxide® and Jet Ag® and Zequanox®, with a next-generation insecticide-nematicide, a breakthrough bioherbicide and a biofumigant in the Company’s product pipeline. MBI’s Pro Farm Finland-based subsidiary employs a proprietary technology derived from wood waste to stimulate plant growth and improve plant health, resulting in improved yields and crop quality. Products include UBP™ 110, Foramin®, UBP™ Seed Treatment, Foramin® ST.

 

     

 

 

Learn more about Marrone Bio Innovations at www.marronebio.com. We also use our investor relations website, https://investors.marronebio.com, as well as our corporate Twitter account, @Marronebio, as means of disclosing material non-public information, and encourage our investors and others to monitor and review the information we make public in these locations. Follow us on social media: Twitter, LinkedIn and Instagram.

 

Marrone Bio Innovations Forward Looking Statements

 

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding strategy, future operations and plans, including assumptions underlying such statements, are forward-looking statements, and should not be relied upon as representing MBI’s views as of any subsequent date. Examples of such statements include statements regarding the search process for a new CFO and the timing of Mr. Boyd’s retirement . Such forward-looking statements are based on information available to the Company as of the date of this release and involve a number of risks and uncertainties, some beyond the Company’s control, that could cause actual results to differ materially from those anticipated by these forward-looking statements, including the recent uncertainty in the global economy and industry-specific economy caused by the COVID-19 pandemic, consumer, regulatory and other factors affecting demand for the Company’s products, weather, regulatory and other factors affecting demand for the MBI’s products, any difficulty in marketing MBI’s products in its target markets, competition in the market for pest management products, lack of understanding of bio-based pest management products by customers and growers, and adverse decisions by regulatory agencies and other relevant third parties. Additional information that could lead to material changes in MBI’s performance is contained in its filings with the SEC. MBI is under no obligation to, and expressly disclaims any responsibility to, update or alter forward-looking statements contained in this release, whether as a result of current information, future events or otherwise.

 

Company Contact:

 

Kevin Helash, Chief Executive Officer

Phone: 530-750-2800

info@marronebio.com

 

Investor Relations Contact:

 

Greg Falesnik or Luke Zimmerman

MZ Group – MZ North America

Phone: 949-385-6449

MBII@mzgroup.us