Document:

exv4w1

Exhibit 4.1

REGISTERED GLOBAL DEBT SECURITY

THIS DEBT SECURITY IS A GLOBAL DEBT SECURITY WITHIN THE MEANING OF THE FISCAL AGENCY AGREEMENT
(AS DEFINED IN THE ATTACHED CONDITIONS) AND IS REGISTERED IN THE NAME OF CEDE & CO., AS THE NOMINEE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”). THIS DEBT SECURITY MAY NOT BE
EXCHANGED IN WHOLE OR IN PART FOR A DEBT SECURITY REGISTERED, AND NO TRANSFER OF THIS DEBT SECURITY
IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN DTC OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE CONDITIONS REFERRED TO WITHIN THIS
DEBT SECURITY. THIS DEBT SECURITY REPRESENTS “SECURITIES OF A SERIES” WITHIN THE MEANING OF THE
FISCAL AGENCY AGREEMENT.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, TO THE REPUBLIC OF
HUNGARY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO., OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.

REPUBLIC OF HUNGARY

7.625% NOTES DUE 2041

PAYABLE AS TO PRINCIPAL AND INTEREST IN LAWFUL MONEY OF

THE UNITED STATES OF AMERICA

FULLY REGISTERED NOTES

Certificate No. 3

US$500,000,000

CUSIP No. 445545AF3

COMMON CODE No. 061189734

ISIN No. US445545AF36

REGISTERED HOLDER: Cede & Co., or its registered assigns

PRINCIPAL SUM OF FIVE HUNDRED MILLION DOLLARS

 

 

THE REPUBLIC OF HUNGARY (the “Republic”), for value received, hereby promises to pay to the
registered owner specified above or registered assigns on March 29, 2041, upon presentation and
surrender of this Global Debt Security, the principal sum specified above in lawful money of the
United States of America at the office of Citibank, N.A. in London or The City of New York, New
York, and to pay interest thereon in like money in the manner provided in the Conditions endorsed
hereon from March 29, 2011 or from the most recent interest payment date to which interest has
been paid, or duly provided for, such interest to be payable semi-annually at the rate of 7.625%
per annum on March 29 and on September 29 in each year (each an “Interest Payment Date”) until the
principal of this Global Debt Security shall have been paid, the first of such payments of interest
to become due and payable on September 29, 2011. Notwithstanding anything to the contrary provided
herein, any payment of principal or interest falling due on a day which is not a Business Day (as
defined in the Fiscal Agency Agreement, dated as of January 29, 2010, between the Republic and
Citibank, N.A., as Fiscal Agent and Paying Agent) will be payable on the next succeeding Business
Day and no interest shall accrue for the intervening period, provided however that if that next
succeeding Business Day falls in the next calendar month, such payment of principal or interest
will be payable on the first preceding business day. The interest so payable on any such Interest
Payment Date will be paid to the person in whose name this Global Debt Security is registered at
the close of business on the fifteenth day (whether or not such day is a Business Day) preceding
such Interest Payment Date (each a “Record Date”).

This Global Debt Security is a direct, unconditional, unsecured and general obligation of the
Republic. This Global Debt Security ranks and will rank at least equally in right of payment with
all other unsecured and unsubordinated payment obligations of the Republic outstanding at the date
of issue of this Global Debt Security or issued thereafter, except for such obligations as may be
preferred by mandatory provisions of applicable law. This Global Debt Security will be backed by
the full faith and credit of the Republic. The Republic will give no preference to one obligation
over another on the basis of priority of issue date or currency of payment.

This Global Debt Security is not redeemable prior to maturity at the option of the Republic or of
the registered holders thereof.

This Global Debt Security is subject to the Conditions endorsed on the reverse hereof and shall not
be valid or enforceable for any purpose unless authenticated by the manual signature of the Fiscal
Agent (as defined in the Fiscal Agency Agreement). This Global Debt Security shall be dated the
date of its authentication by the Fiscal Agent.

 

 

IN WITNESS WHEREOF, the Republic has caused this Global Debt Security to be duly executed by the
facsimile signature of Mr. Gyula Pleschinger and a facsimile of the written, printed or stamped
name of the Republic to be hereon imprinted.

On behalf of the Republic of Hungary

	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	Gyula Pleschinger 	 
	 	 	Title:  	Chief Executive Officer of the Government Debt Management Agency Pte Ltd. of the
Republic of Hungary as attorney for the Republic of Hungary represented by its Minister for
National Economy 
	 

[Signature Page to Global Note]

 

 

	 	 	 	 	 
	 	FISCAL AGENT’S CERTIFICATE

OF AUTHENTICATION

This is a permanent global debt security evidencing the Securities of a Series referred to in the aforementioned

Fiscal Agency Agreement.

 	 
	 	By:  	 	 
	 	 	Name:  	Citibank, N.A. 	 
	 	 	Title:  	Fiscal Agent 	 
	 

Dated: April 11, 2011

[Signature Page to Certificate of Authentication]

 

 

THE CONDITIONS WITHIN REFERRED TO

	1	 	This Global Debt Security is one of the permanent global securities evidencing a duly
authorized issue of US$1,250,000,000 aggregate principal amount of 7.625% Notes due March 29,
2041 of the Republic (herein called the “Debt Securities”) as executed by the authorized
signatory of the Republic, Mr. Gyula Pleschinger (the “Republic Authorized Signatory”). The
Debt Securities are issued under the Fiscal Agency Agreement dated as of January 29, 2010 (as
the same may be amended, supplemented or otherwise modified from time to time, the “Fiscal
Agency Agreement”) between the Republic, and Citibank, N.A., as fiscal agent and paying agent
(the “Fiscal Agent”, “Agent” or “Registrar”), to which Fiscal Agency Agreement reference is
hereby made for a statement of the respective rights, duties, limitations of rights,
obligations and immunities thereunder of the Republic, the Agent and the holders of the Debt
Securities. Notices to the Fiscal Agent can be sent to Citibank, N.A., Attention: Citigroup
Centre, 21st Floor, Canada Wharf, London E14 5LB. The Debt Securities are issuable
as fully registered Debt Securities without coupons in minimum denominations of US$2,000 and
integral multiples of US$2,000 in lawful money of the United States of America. This Debt
Security is one of the series designated on the face hereof, initially limited to the
aggregate principal amount of US$1,250,000,000.
	 
	 	 	The Republic may from time to time, without the consent of the holders of the Debt
Securities, create and issue further debt securities having the same terms and conditions as
the Debt Securities even if further Debt Securities have original issue discount for U.S.
federal income tax purposes and even if doing so may adversely affect the value of the
original Debt Securities. Any additional Debt Securities, together with the Debt Securities,
will constitute a single series of Debt Securities under the Fiscal Agency Agreement.
	 
	2	 	All payments made in respect of this Global Debt Security, including payments of
principal and interest, to a holder that is not a resident of the Republic, shall be made by
the Republic without withholding or deduction for or on account of any present or future
taxes, duties, levies or other governmental charges of whatever nature, imposed or levied by
the Republic or by any political subdivision or taxing authority within the Republic
(“Taxes”). In the event the Republic is required by law to deduct or withhold any such Taxes
from payments, the Republic will pay such additional amounts as may be necessary so that the
net amount received is equal to the amount provided for in this Global Debt Security to be
paid in the absence of such deduction or withholding. A holder will not be paid any additional
amounts however, if the Tax is:

	 	(i)	 	a Tax that would not have been imposed but for the holder’s present or former
connection (or a connection of the holder’s fiduciary, shareholder or other related
party) with the Republic, including the holder being or having been a citizen or
resident of the Republic or being or having been engaged in a trade or business or
present in the Republic or having, or having had, a permanent establishment in the
Republic;
	 
	 	(ii)	 	imposed on a payment to an individual and is required to be made pursuant to the
European Council Directive 2003/48/EC on taxation of savings income in the form on
interest payments or any other Directive implementing the conclusions of the EU Council
of Finance Ministers meeting of November 26 and 27, 2000 or any law implementing or
complying with, or introduced in order to conform to, such Directive;
	 
	 	(iii)	 	imposed because the holder presents a Debt Security for payment more than thirty
(30) days after the date on which the payment became due and payable;

 

 

	 	(iv)	 	an estate, inheritance, gift, sales, transfer or personal property tax,
assessment or governmental charge;
	 
	 	(v)	 	a tax, assessment or other governmental charge which is payable other than by
withholding;
	 
	 	(vi)	 	a Tax that would not have been imposed but for the failure to comply with
certification, information or other reporting requirements concerning the holder’s
nationality, residence or identity (or the nationality, residence or identity of the
beneficial owner of this Global Debt Security), if such holder’s compliance is required
by the laws of the Republic or of any political subdivision or taxing authority of the
Republic to avoid or reduce such tax;
	 
	 	(vii)	 	required to be withheld by any paying agent from a payment on this Global Debt
Security if such payment can be made without such withholding by another paying agent;
or
	 
	 	(viii)	 	are imposed as a result of any combination of the items listed above.
	 
	 	Furthermore, no additional amounts shall be paid with respect to any Debt Security to a
holder who is a fiduciary or partnership or other than the sole beneficial owner of such
payment to the extent that the settlor with respect to such fiduciary, partner or beneficial
owner, as the case may be, would not have been entitled to payment of such additional amounts
if they held this Global Debt Security themselves.

	3	 	As long as any Debt Security remains outstanding, the Republic will not allow any
Security Interest to be established on any of the Republic’s or the National Bank of Hungary’s
assets or revenues, present or future, in order to secure (i) any Public External Indebtedness
of the Republic having an original maturity of at least one year; or (ii) any Public External
Indebtedness of the National Bank of Hungary having an original maturity of at least one year
and incurred on or prior to December 31, 1998, unless the debt securities are secured equally
and rateably to this external indebtedness.
	 
	 	 	For these purposes:
	 
	 	 	“External Indebtedness” means any obligation in respect of existing or future Indebtedness
denominated or payable, or at the option of the holder thereof payable, in a currency other
than the lawful currency of the Republic of Hungary. If at any time the lawful currency of
the Republic of Hungary becomes the Euro, then External Indebtedness shall also include
Indebtedness expressed in or payable or optionally payable in Euro, if (i) such Indebtedness
was issued after the date on which the Euro became the lawful currency of the Republic of
Hungary, and (ii) more than 50% of the aggregate principal amount of such Indebtedness was
initially placed outside the Republic of Hungary.
	 
	 	 	“Public External Indebtedness” means External Indebtedness which: (i) is in the form of, or
represented by, bonds, notes or other similar securities; and (ii) is, or may be, quoted,
listed or ordinarily purchased and sold on any stock exchange, automated trading system or
over-the-counter or other securities market.
	 
	 	 	“Indebtedness” means any indebtedness of any Person (whether incurred as principal or surety)
for money borrowed.
	 
	 	 	“Person” means any individual, company, corporation, firm, partnership, joint venture,
association, organization, state or agency of a state or other entity, whether or not having
separate legal personality.

 

 

	 	 	“Security Interest” means any lien, pledge hypothecation, mortgage, security interest, charge
or other encumbrance or arrangement which has a similar legal and economic effect, and,
without limitation, anything analogous to any of the foregoing under the laws of any
jurisdiction.
	 
	4	 	An “Event of Default” means any of the following:

	 	(i)	 	the Republic fails to pay the principal of or interest on any of the Debt
Securities for more than 30 days after payment is due; or
	 
	 	(ii)	 	the Republic does not perform any of its other covenants under any of the Debt
Securities for more than 60 days after the holder of the Debt Security has given written
notice of the breach to the Republic at the Fiscal Agent’s corporate trust office.

	 	 	An “Event of Acceleration” means any of the following:

	 	(i)	 	any action, condition or any other thing which at any time is required to be
taken, fulfilled or done in order: (A) to enable the Republic lawfully to enter into,
exercise its rights and perform and comply with its obligations under and in respect of
the Debt Securities, (B) to ensure that those obligations are legal, valid, binding and
enforceable and (C) subject to their official translation into the Hungarian language,
to make the Debt Securities admissible in evidence in the courts of the Republic of
Hungary, is not taken, fulfilled or done within 30 days of receipt by the Republic of
written notice thereof; or
	 
	 	(ii)	 	it becomes illegal for the Republic to perform any of its obligations under the
Debt Securities or if these obligations become invalid and not remedied by the Republic
within 30 days’ written notice thereof.

	 	 	If an Event of Default or an Event of Acceleration occurs, all of the Debt Securities may, by
written notice addressed and delivered by the holders of at least 25% of the aggregate
principal amount of the outstanding Debt Securities to the Republic at the office of the
Fiscal Agent, be declared to be immediately due and payable, unless prior to such date the
Republic shall have remedied the Event of Default or Event of Acceleration for all the Debt
Securities.
	 
	 	 	If the Fiscal Agent receives notice in writing from holders of at least 50% in aggregate
principal amount of the outstanding Debt Securities and/or a resolution is passed at a
meeting of the holders of the Debt Securities, duly convened and held in accordance with the
Fiscal Agency Agreement, to the effect that the Event(s) of Default and/or Event(s) of
Acceleration giving rise to a declaration of acceleration made pursuant to the conditions
above is or are cured or is or are waived by them following any such declaration and that
such holders request the Fiscal Agent to rescind the relevant declaration, the Fiscal Agent
shall, by notice in writing to the Republic and the holders, rescind the relevant declaration
whereupon it shall be rescinded and shall have no further effect.
	 
	 	 	The Republic is not obliged to provide investors with periodic evidence that there are no
Events of Default and/or Events of Acceleration. Please also note that the Fiscal Agency
Agreement does not provide for the holders to be notified of the existence of an Event of
Default or an Event of Acceleration or for any right to examine the Debt Securities register.
	 
	5	 	The Fiscal Agency Agreement contains provisions for convening meetings of holders of
the Debt Securities to consider matters relating to the Debt Securities, including, without
limitation, the modification of any provision of the terms of the Debt Securities. Any such
modification may be made if, having been approved in writing by the Republic, it is sanctioned
by an Extraordinary Resolution. Such a meeting may be convened by the Republic and shall be
convened by the Fiscal Agent upon the request in writing of holders holding not less than 10%
of the aggregate principal amount of the outstanding Debt Securities. The quorum at any
meeting of holders

 

 

	 	 	convened to vote on an Extraordinary Resolution will be two or more persons holding or
representing not less than 50% of the aggregate principal amount of the outstanding Debt
Securities or, at any adjourned meeting of holders, two or more persons being or representing
holders, whatever the aggregate principal amount of the outstanding Debt Securities held or
represented; provided, however, that any proposals relating to a Reserved Matter may only be
sanctioned by an Extraordinary Resolution passed at a meeting of holders at which two or more
persons holding or representing not less than 75% of the aggregate principal amount of the
outstanding Debt Securities or, at any adjourned meeting, 25% of the aggregate principal
amount of the outstanding Debt Securities form a quorum. Any Extraordinary Resolution duly
passed at any such meeting shall be binding on all the holders of the Debt Securities,
whether present or not.
	 
	 	 	If a resolution is brought in writing, such a resolution in writing may be contained in one
document or several documents in the same form, each signed by or on behalf of one or more
holders.

	 	 	 	For these purposes:
	 
	 	 	 	“Extraordinary Resolution” means:
	 
	 	(i)	 	in relation to any Reserved Matter:
	 
	 	 	 	(x) a resolution passed at a meeting of holders duly convened and held in accordance
with the Fiscal Agency Agreement by a majority consisting of not less than 75% of the
aggregate principal amount of all outstanding Debt Securities; or
	 
	 	 	 	(y) a resolution in writing signed by or on behalf of holders of not less than 75% of
the aggregate principal amount of all outstanding Debt Securities; and
	 
	 	(ii)	 	in relation to any other matter:
	 
	 	 	 	(x) a resolution passed at a meeting of holders duly convened and held in accordance
with the Fiscal Agency Agreement by a majority consisting of not less than 66.67% of
the aggregate principal amount of the outstanding Debt Securities which are
represented at that meeting; or
	 
	 	 	 	(y) a resolution in writing signed by or on behalf of holders of not less than 66.67%
of the aggregate principal amount of all outstanding Debt Securities.
	 
	 	 	 	“Reserved Matter” means any proposal to:
	 
	 	(i)	 	change any date, or the method for determining the date, fixed for payment of
principal or interest in respect of the Debt Securities, to reduce the amount of
principal or interest payable on any date in respect of the Debt Securities or to alter
the method of calculating the amount of any payment in respect of the Debt Securities on
redemption or maturity or the date for any such payment;
	 
	 	(ii)	 	effect the exchange or substitution of the Debt Securities for, or the conversion
of the Debt Securities into, shares, bonds or other obligations or securities of the
Republic or any other person or body corporate formed or to be formed;
	 
	 	(iii)	 	reduce or cancel the principal amount of the Debt Securities;
	 
	 	(iv)	 	vary the currency or place of payment in which any payment in respect of the Debt
Securities is to be made;
	 
	 	(v)	 	amend the status of the Debt Securities;

 

 

	 	(vi)	 	amend the obligation of the Republic to pay additional amounts under Condition 2;
	 
	 	(vii)	 	amend the Events of Default or the Events of Acceleration set out in Condition
4;
	 
	 	(viii)	 	amend the law governing the Debt Securities, the courts to the jurisdiction to which
the Republic has submitted in the Debt Securities, the Republic’s obligation to maintain
an agent for service of process in the United States or the Republic’s waiver of
immunity, in respect of actions or proceedings brought by any holder of the Debt
Securities set out in Conditions 6 and 7;
	 
	 	(ix)	 	modify the provisions contained in Schedule I to the Fiscal Agency Agreement
concerning the quorum required at any meeting of holders of the Debt Securities or any
adjournment thereof or concerning the majority required to pass an Extraordinary
Resolution or the percentage of votes required for the taking of any action;
	 
	 	(x)	 	change the definition of “Extraordinary Resolution” or “outstanding” in these
conditions of the Debt Securities and/or in the Fiscal Agency Agreement;
	 
	 	(xi)	 	instruct any holder of the Debt Securities or committee appointed on behalf of
all holders of the Debt Securities pursuant to the Fiscal Agency Agreement to withdraw,
settle or compromise any proceeding or claim being asserted pursuant to Condition 4;
	 
	 	(xii)	 	confer upon any committee appointed pursuant to the Fiscal Agency Agreement any
powers or discretions which the holder of the Debt Securities could themselves exercise
by Extraordinary Resolution; or
	 
	 	(xiii)	 	amend this definition.

	 	 	The holders of the Debt Securities may, by a resolution passed at a meeting of holders duly
convened and held in accordance with the Fiscal Agency Agreement by a majority of at least
50% in aggregate principal amount of the Debt Securities then outstanding, or by notice in
writing to the Fiscal Agent signed by or on behalf of the holders of at least 50% in
aggregate principal amount of the Debt Securities then outstanding, appoint any persons as a
committee to represent the interests of the holders if any of the following events shall have
occurred:

	 	(i)	 	an Event of Default or an Event of Acceleration;
	 
	 	(ii)	 	any event or circumstance which would, with the giving of notice, lapse of time,
the issuing of a certificate and/or fulfillment of any other requirement provided for in
Condition 4 become an Event of Default or an Event of Acceleration; or
	 
	 	(iii)	 	any public announcement by the Republic, to the effect that the Republic is
seeking or intends to seek a restructuring of the Debt Securities (whether by amendment,
exchange offer or otherwise).

	 	 	Such committee in its discretion may, among other things, (i) engage legal advisers and
financial advisers to assist it in representing the interests of the holders of the Debt
Securities, (ii) adopt such rules as it considers appropriate regarding its proceedings and
(iii) enter into discussions with the Republic and/or other creditors of the Republic. The
Republic shall pay any reasonably incurred fees and expenses of any such committee
(including, without limitation, the fees and expenses of the committee’s legal advisers and
financial advisers, if any) within 30 days of the delivery to the Republic of a reasonably
detailed invoice and supporting documentation.
	 
	 	 	For the purposes of (i) ascertaining the right to attend and vote at any meeting of the
holders of the Debt Securities and (ii) Conditions 4 and 5, those Debt Securities (if any)
which are for the time being held by any person (including but not limited to the Republic)
for the benefit of the

 

 

	 	 	Republic or by any public body owned or controlled, directly or indirectly, by the Republic
shall (unless and until ceasing to be so held) be deemed not to remain outstanding.
	 
	6	 	As more fully set forth in the Fiscal Agency Agreement, the Republic has appointed the
Consulate General of the Republic of Hungary, 223 East 52nd Street, New York, New York 10022,
as its authorized agent upon which process may be served in any action arising out of or based
on the Debt Securities which may be instituted in any Federal or State court in New York, New
York by the holder of any Debt Security, and the Republic hereby expressly accepts the
jurisdiction of any such court in respect of any such action. Such appointment shall be
irrevocable so long as any of the Debt Securities remain outstanding, unless and until a
successor shall have been appointed by the Republic as its authorized agent for such purpose
and such successor authorized agent shall have accepted such appointment. Notwithstanding the
foregoing, any action arising out of or based on the Debt Securities may be instituted by the
holder of any Debt Security in any competent court in the Republic of Hungary. The Republic
hereby waives irrevocably, to the fullest extent permitted by law, any immunity from
jurisdiction to which it might otherwise be entitled in any such action which may be
instituted by the holder of any Debt Security in Federal or State court in New York, New York
or in any competent court in the Republic of Hungary. This waiver is intended to be effective
upon execution of this Global Debt Security without further act by the Republic before any
such court, and introduction of this Global Debt Security into evidence shall be final and
conclusive evidence of such waiver. Such waiver constitutes only a limited and specific waiver
for the purposes of the Debt Securities and under no circumstances shall it be interpreted as
a general waiver by the Republic or a waiver with respect to proceedings unrelated to the Debt
Securities. Neither such appointment nor such waiver shall be interpreted to include the
waiver of any immunity with respect to: (i) actions brought against the Republic under U.S.
State or Federal securities laws; (ii) present or future “premises of the mission” as defined
in the Vienna Convention on Diplomatic Relations signed in 1961; (iii) “Consular premises” as
defined in the Vienna Convention on Consular Relations signed in 1963; (iv) any other property
or assets used solely or mainly for official state purposes in the Republic or elsewhere; or
(v) military property or military assets or property or assets of the Republic related
thereto.
	 
	7	 	This Global Debt Security shall be governed by and construed in accordance with the
laws of the State of New York, without regard to the conflicts of law principles of such
State, except with respect to its authorization and execution by the Republic, which shall be
governed by the laws of the Republic of Hungary.
	 
	8	 	Except as set forth in this Condition 8, the Debt Securities are issuable only as fully
registered global securities, without coupons, each registered in the name of DTC, a nominee
thereof or a successor to DTC or a nominee thereof, and

	 	(i)	 	no Global Debt Security may be transferred, except in whole and not in part, and
only to DTC, one or more nominees of DTC or one or more respective successors of DTC and
its nominees; and
	 
	 	(ii)	 	no Global Debt Security may be exchanged for any Debt Security other than another
Global Debt Security.

	 	 	Notwithstanding any other provisions of the Fiscal Agency Agreement or this Global Debt
Security, a Global Debt Security may be transferred to, or exchanged for registered Debt
Securities registered in the name of, a person other than DTC, a nominee of DTC or a
successor of DTC or its nominee if:

 

 

	 	(i)	 	DTC or each of Euroclear Bank S.A./N.V (“Euroclear”) and Clearstream Banking,
S.A. (“Clearstream”) (a) notifies the Republic that it is unwilling or unable to
continue as depository for such Global Debt Security or (b) ceases to be a clearing
agency registered under the Securities Exchange Act of 1934 at a time when it is
required to be, and in either such case (a) or (b) a successor depository is not
appointed by the Republic within 90 days after receiving such notice from Euroclear,
Clearstream or DTC or on becoming aware that DTC is no longer so registered;
	 
	 	(ii)	 	the Republic, in its sole discretion, instructs the Fiscal Agent in writing that
a Global Debt Security shall be so transferable and exchangeable; or
	 
	 	(iii)	 	there shall have occurred and be continuing an Event of Default and/or Event of
Acceleration with respect to the Debt Securities evidenced by this Global Debt Security.

	 	 	Registered Debt Securities issued in exchange for this Global Debt Security will be
registered in such names, and issued in such denominations (of $2,000 and integral multiples
thereof), as an authorized representative of DTC shall request.
	 
	9	 	The Republic will maintain for the Debt Securities (i) a Paying Agent and Registrar in
the City of London, England or The City and State of New York, and (ii) if the Debt Securities
are issued in definitive form, a transfer agent and paying agent in The City and State of New
York. The Republic will cause the Registrar to maintain a register in which shall be entered
the names and addresses of the holders of the Debt Securities of this issue and the
particulars of the Debt Securities held by them respectively and in which, subject to
Condition 8 above, transfers of the Debt Securities shall be registered. Such Paying Agent and
Registrar in England shall be Citibank, N.A., unless and until the Republic appoints a
different Paying Agent or Registrar (if applicable) in the same city. The Republic will
appoint a transfer agent and paying agent as or when required in The City and State of New
York. The holders of the Debt Securities may serve notices and demands with respect to the
Debt Securities at the office of any Paying Agent and Registrar maintained pursuant to this
Condition. In addition, all notices of the Republic will be published in a daily newspaper of
general circulation in London for so long as the Debt Securities are listed on the London
Stock Exchange and the rules of the London Stock Exchange so require. Any such notice shall be
deemed to have been given on the date of such publication or, if published more than once on
different dates, on the first date on which publication is made.
	 
	10	 	Subject to Condition 8 above, this Global Debt Security is transferable upon
presentation for such purpose at the office of the Registrar referred to in Condition 9,
accompanied by a written instrument of transfer in form approved by the Republic executed by
the registered holder hereof or by his duly authorized attorney, whereupon this Global Debt
Security will be canceled and one or more Debt Securities of this issue for an equal aggregate
principal amount will be delivered to the transferee.
	 
	11	 	Subject to Condition 8 above, Debt Securities of this issue upon presentation for such
purpose at the office of the Registrar referred to in Condition 9, accompanied by a written
instrument of transfer in form approved by the Republic executed by the registered holder or
by his duly authorized attorney, may be exchanged for an equal aggregate principal amount of
other fully registered Debt Securities of this issue in other authorized denominations.
	 
	12	 	Subject to Condition 8 above, the Republic will make transfers and exchanges of Debt
Securities of this issue as aforesaid upon compliance by the holders of the Debt Securities
with such reasonable regulations as may be prescribed by the Republic, and the Republic shall
not be entitled to make any charge in respect to transfers and exchanges of Debt Securities of
this

 

 

	 	 	issue, other than in respect of transfer taxes, if any. Each Debt Security issued upon any
such transfer or exchange shall be dated the date of its authentication by the Fiscal Agent.
	 
	13	 	Interest on the Debt Securities of this issue shall be computed on the basis of a
360-day year of twelve 30-day months. Unless other arrangements are made, payments of interest
on this Global Debt Security will be made by check drawn on a bank or trust company in The
City and State of New York payable to the order of the registered holder, or, in the case of
joint holders, to the order of all such joint holders or to such person as the joint holders
may request in writing, provided that payment of principal will be made only upon prior
presentation and surrender of this Global Debt Security at the office of a Paying Agent of the
Republic referred to in Condition 9. Such check shall be mailed to the address of the
registered holder as such address shall appear on the register maintained by the Registrar
pursuant to Condition 9 hereof, or, in the case of joint holders, to such registered address
of that joint holder who is first named in the register as one of such joint holders or to
such address specified in the aforementioned request of such joint holders. The registered
holder hereof or his legal personal representatives will be regarded as exclusively entitled
to the principal moneys hereby secured, and in the case of joint registered holders of this
Global Debt Security the said principal monies shall be deemed to be owing to them on joint
account. Any holder of Debt Securities, the aggregate principal amount of which equals or
exceeds U.S. $1,000,000, may, by written notice to the Paying Agent no later than the Record
Date therefor, elect to receive the interest payment in respect of such Debt Securities by
wire transfer in same-day funds to a bank account maintained by such holder in the United
States.
	 
	14	 	Claims for payment of the principal amount of this Debt Security shall become void 10
years after such principal amount became due and payable. Claims for payment of interest on
this Debt Security shall become void five years after relevant interest payment date on which
the interest became due and payable.
	 
	15	 	In case any Debt Security shall at any time become mutilated or destroyed or stolen or
lost, and such Debt Security, or evidence of the loss, theft or destruction thereof (together
with the indemnity hereinafter referred to and such other documents or proof as may be
required in the premises) shall be delivered to the Registrar referred to in Condition 9
above, a new Debt Security of like tenor and date will be issued by the Republic in exchange
for the Debt Security so mutilated, or in lieu of the Debt Security so destroyed or stolen or
lost, but, in the case of any destroyed or stolen or lost Debt Security, only upon receipt of
evidence satisfactory to the Republic that such Debt Security was destroyed or stolen or lost,
and, upon receipt also of indemnity satisfactory to the Republic. Mutilated Debt Securities
must be surrendered before replacement therefore will be issued. Application for replacement
may be made only by the registered holder thereof and shall be made at the office of the
Fiscal Agent specified in Condition 1. All expenses and reasonable charges associated with
procuring such indemnity and with the preparation, authentication and delivery of a new Debt
Security shall be borne by the owner of the Debt Security mutilated, destroyed, stolen or
lost.

ABBREVIATIONS

The following abbreviations, when used in the inscription on the face of this instrument,
shall be construed as though they were written out in full according to applicable laws or
regulations:

			
	 	 	 
	TEN COM-as tenants in common
	 	UNIF GIFT MIN ACT-                      Custodian                    
	 	 	 
	 
	 	(Cust)                   (Minor)       
	 	 	 
	TEN ENT-as tenants by the entireties
	 	Under Uniform Gifts to Minors Act                     
	 	 	 
	 
	 	(State)         

 

 

JT TEN-as joint tenants with right of survivorship and not as tenants in common.

Additional abbreviations may also be used though not in the above list.

TRANSFERS

For Value Received the undersigned hereby sells, assigns and transfers unto

 

 

 

name and address including zip code and social security number or other identifying number of
assignee the within Debt Security, hereby irrevocably constituting and appointing

 

 

 

Attorney to transfer the Debt Security on the register kept at the office of the Registrar of the
Republic for such purpose in the Borough of Manhattan, The City of New York and State of New York,
United States of America or London, with full power of substitution

dated this                      day of
                    ,
                    .

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Signature 	 
	 	 	 	 
	 

NOTICE: The signature to this assignment must correspond with the name as written upon the face of
the within Debt Security in every particular without alteration or enlargement or any change
whatsoever and must be guaranteed by a commercial bank or trust company having its principal office
or correspondent in The City of New York or by a member of the New York Stock Exchange.exv4w8

Exhibit 4.8

Loan and Security Agreement

This Loan and Security Agreement No. 1451 (this “Agreement”) is entered into as of
December 30, 2008, by and between Lighthouse Capital Partners VI, L.P. (“Lender”) and
KiOR Inc., a Delaware corporation (“Borrower”) and sets forth the terms and conditions
upon which Lender will lend and Borrower will repay money. In consideration of the mutual
covenants herein contained, the parties agree as follows:

1. Definitions and Construction

1.1 Definitions. Initially capitalized terms used and not otherwise defined herein are defined in
the California Uniform Commercial Code (“UCC”).

“ACH” means the Automated Clearing House electronic funds transfer system.

“Additional Warrant” means the Warrant issued in favor of Lender and its affiliates in accordance
with Section 6.9 hereof to purchase securities of Borrower substantially in the form of Exhibit
C-1.

“Advance” means a Loan advanced by Lender to Borrower hereunder.

“Basic Rate” a per annum rate of interest equal to 7.5%.

“Borrower’s Books” means all of Borrower’s books and records, including records concerning
Collateral, Borrower’s assets, liabilities, business operations or financial condition, on any
media, and the equipment containing such information.

“Borrowing Base” means the Equipment Borrowing Base.

“Collateral” means: (i) all property in which Lender now has or hereafter obtains a security
interest or which is listed on any UCC-1 naming Borrower as Debtor in any capacity and Lender or an
affiliate of Lender as Secured Party including Exhibit A attached hereto; and (ii) all products and
proceeds of the foregoing, including proceeds of insurance and proceeds of proceeds.

“Commitment” means $5,000,000.

“Commitment Fee” means $10,000.

“Commitment Termination Date” means the earliest to occur of (i) September 30, 2009; (ii) any Event
of Default or, during the pendency of a Default unless and until such time as such Default is cured
to Lender’s sole reasonable satisfaction; (iii) the date on which Fred Cannon, President of
Borrower, ceases to serve as a member of Borrower’s Board of Directors; (iv) the date on which no
representative of Khosla Ventures II, LP or its affiliated funds serves as a member of Borrower’s
Board or Directors; or (v) Borrower ceases to be in the business of developing and manufacturing
biofuels.

“Default” means any event that with the passing of time or the giving of notice or both would
become an Event of Default.

“Default Rate” means the lesser of 18% per annum or the highest rate permitted by applicable law.

“Disclosure Schedule” means the schedule attached as Schedule 1 hereto.

“Eligible Equipment” means new and used equipment, including computers and peripherals, analytical
and test equipment, office furniture and equipment, and laboratory equipment and furniture and any
other equipment and furniture approved by Lender in its sole and absolute discretion, and that
comply with all of Borrower’s representations and warranties herein; up to 35% of Eligible
Equipment may consist of software, leasehold improvements, engineering expenses, and other soft
costs, including freight, installation, taxes and insurance and other costs approved by Lender.

“Equipment Borrowing Base” means 100% of Eligible Equipment.

“Event of Default” is defined in Section 8.

“Exercise Price” means (i) the price per share of Borrower’s preferred stock paid by investors in
the Next Round Financing or (ii) the Series A-1 Price, as applicable.

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“Funding Date” means any date on which an Advance is made to or on account of Borrower hereunder.

“Incumbency Certificate” means the document in the form of Exhibit E.

“Indebtedness” means (i) all indebtedness for borrowed money or the deferred purchase of property
or services (other than trade payables), (ii) all obligations evidenced by notes, bonds, debentures
or similar instruments, (iii) all capital lease obligations, and (iv) all contingent obligations,
including guaranties and obligations of reimbursement or respecting letters of credit.

“Lender’s Expenses” means all reasonable costs or expenses (including reasonable attorneys’ fees
and expenses) incurred in connection with the preparation, negotiation, modification,
administration, or enforcement of the Loan or Loan Documents, or the exercise or preservation of
any rights or remedies by Lender, whether or not suit is brought. Lender will apply deposits
received before the date hereof, if any, towards Lender’s Expenses.

“Lien” means any lien, security interest, pledge, bailment, lease, mortgage, hypothecation,
conditional sales and title retention agreement, charge, claim, or other encumbrance.

“Loan” means all of the Advances, however evidenced, and all other amounts due or to become due
hereunder.

“Loan Commencement Date” means for any particular Advance the first business day of the calendar
month following the Funding Date.

“Loan Documents” means, collectively, this Agreement, the Warrant, the Notes and all other
documents, instruments and agreements entered into between Borrower and Lender in connection with
the Loan, all as amended or extended from time to time.

“Material Adverse Effect” means a material adverse effect on (i) the financial condition of
Borrower and its Subsidiaries taken as a whole or (ii) the validity or enforceability of the Loan
Documents or the rights and remedies of the Lender thereunder or with respect to the Collateral

“Next Round Financing” means (i) a bona fide sale of preferred stock of Borrower with gross
proceeds to Borrower of at least $5,000,000 in an equity financing transaction for the primary
purpose of raising additional capital after the date hereof or (ii) (a) a merger of Borrower with
another entity (whether or not the Borrower is the “surviving entity”) whereby the shareholders of
Borrower immediately prior to such merger own less than 50% of the outstanding voting securities of
the surviving or successor entity (including Borrower if Borrower is the resulting or surviving
entity) immediately after such merger; (b) the sale (in one or a series of related transactions) of
all or substantially all of Borrower’s assets; or (c) any transaction (or series of related
transactions) other than a transaction that is a bona fide equity financing with the primary
purpose of raising capital for Borrower, whereby the shareholders of Borrower immediately prior to
such transaction(s) own less than 50% of the outstanding voting securities of such acquirer or
resulting entity (including, Borrower, if Borrower is the resulting or surviving entity).

“Note” means a Secured Promissory Note in the form of Exhibit B.

“Notice of Borrowing” means the form attached as Exhibit D.

“Obligations” means all Loans, debt, principal, interest, fees, charges, Lender’s Expenses and
other amounts, obligations, covenants, and duties owing by Borrower to Lender of any kind or
description pursuant to the Loan Documents (with the exception of the Warrant), and whether or not
for the payment of money, whether direct or indirect, absolute or contingent, due or to become due,
now existing or hereafter arising, and including any of the same obtained by Lender by assignment
or otherwise, and all amounts Borrower is required to pay or reimburse by the Loan Documents, by
law, or otherwise.

“Permitted Liens” means: (i) Liens in favor of Lender; (ii) Liens for taxes, fees, assessments or
other governmental charges or levies not delinquent or being contested in good faith by appropriate
proceedings, that do not jeopardize Lender’s interest in any Collateral; and (iii) Liens to secure
payment of worker’s compensation, employment insurance, old age pensions or other social security
obligations of Borrower on which Borrower is current and are in the ordinary course of its
business; provided none of the same diminish or impair Lender’s rights and remedies respecting the
Collateral .

“Preferred Stock” means either (i) shares of Borrower’s Series A-1 preferred stock or (ii) shares
of Borrower’s preferred stock sold in the Next Round Financing.

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“Regulated Substance” means any substance, material or waste the use, generation, handling,
storage, treatment or disposal of which is regulated by any local or state government authority,
including any of the same designated by any authority as hazardous, genetic, cloning, fetal, or
embryonic.

“Responsible Officer” means the President, Chief Financial Officer/Treasurer and Secretary of
Borrower and each person as authorized by the board of directors of Borrower as set forth on the
Incumbency Certificate.

“Series A-1 Price” means $3.89, subject to adjustment as set forth in the Warrant attached hereto
as Exhibit C.

“Subsidiary” means any corporation of which a majority of the outstanding capital stock entitled to
vote for the election of directors (otherwise than as the result of a default) is owned by Borrower
directly or indirectly through Subsidiaries.

“Term” means the period from and after the date hereof until the full, final and indefeasible
payment and performance of all Obligations.

“Warrants” means the Warrant in favor of Lender and its affiliates to purchase securities of
Borrower substantially in the form of Exhibit C and the Additional Warrant.

1.2 Interpretation. References to “Articles,” “Sections,” “Exhibits,” and “Schedules” are to
articles, sections, exhibits and schedules herein and hereto unless otherwise indicated. “Hereof,”
“herein” and “hereunder” refer to this Agreement as a whole. “Including” is not limiting. All
accounting and financial computations shall be computed in accordance with generally accepted
accounting principles consistently applied (“GAAP”). “Or” is not necessarily exclusive. All
interest computation shall be based on a 360-day year and actual days elapsed.

2. The Loans

2.1 Commitment. Subject to the terms hereof, Lender will make Advances to Borrower up to the
principal amount of the Commitment or 100% of Equipment Borrowing Base, on or before the Commitment
Termination Date. Notwithstanding anything in the Loan Documents to the contrary, Lender’s
obligation to make any Advances or to lend the undisbursed portion of the Commitment shall
terminate on the Commitment Termination Date. Repaid principal of the Advances may not be
re-borrowed.

2.2 The Advances. A Note setting forth the specific terms of repayment will evidence each Advance.
No Advance will be made for less than $100,000, unless less than $100,000 remains available under
the Commitment for borrowing. Absence of a Note evidencing any portion of the Loan shall not
impair Borrower’s obligation to repay it to Lender.

	2.3	 	Terms of Payment, Repayment.

     (a) Repayment. Borrower shall repay the principal and pay interest on each Advance on the
terms set forth in the applicable Note. Amounts not paid when due hereunder or under the Note
shall bear interest at the Default Rate. If a court of competent jurisdiction determines that
Lender has received payments that, if interest, would exceed the maximum lawfully permitted, Lender
will instead apply such money to fees and expenses and then to early prepayment of principal
(without any Prepayment Fee (as defined in the Note).

     (b) ACH. All payments due to Lender must be, at Lender’s option, paid to Lender in cash or
through ACH. Borrower shall execute and deliver the ACH Authorization Form substantially in the
form of Exhibit G. If the ACH payment arrangement is terminated for any reason, Borrower shall
make all payments due to Lender at Lender’s address specified in Section 11.

     (c) Default Rate. While an Event of Default has occurred and is continuing, interest on the
Loan shall be increased to the Default Rate. Lender’s failure to charge or accrue interest at the
Default Rate during the existence of a Default shall not be deemed a waiver by Lender of its right
or claim thereto.

     (d) Date. Whenever any payment due under the Loan Documents is due on a day other than a
business day, such payment shall be made on the next succeeding business day, and such extension of
time shall be included in the computation of interest or fees, as the case may be.

2.4 Fees. Borrower shall pay to Lender the following:

     (a) Commitment Fee. The Commitment Fee, which has been previously paid by Borrower, and shall
be applied by Lender to Lender’s Expenses and other Obligations;

3

 

     (b) Late Fee. On demand, a late charge on any sums due hereunder that are not paid when due,
in an amount equal to 2% of the past due amount, payable on demand.

     (c) Lender’s Expenses. When requested, all Lender’s Expenses. Lender’s Expenses not paid when
due shall bear interest as principal at the Default Rate.

3. Conditions of Advances; Procedure for Requesting Advances

3.1 Conditions Precedent to any and all Advances. The obligation of Lender to make any Advances is
subject to each and every of the following conditions precedent in form and substance satisfactory
to Lender in its sole discretion: (i) this Agreement, a Note evidencing the Advance, the Warrant
attached hereto as Exhibit C, and all other UCC financing statements, and other documents required
or as specified herein have been duly authorized, executed and delivered; (ii) Lender’s receipt of
all vendor invoices, bills of sale, receipts, agreements, proof of payment, and other documents as
Lender shall reasonably request to evidence the ownership by Borrower of, the payment in full of
the purchase price of, and the fair market value of, Collateral; (iii) no Default or Event of
Default has occurred and is continuing; (iv) delivery of a Notice of Borrowing with respect to the
proposed Advance; (v) Lender’s security interests in the Collateral are valid and first priority,
except for Permitted Liens; and (vi) all such other items as Lender may reasonably deem necessary
or appropriate have been delivered or satisfied. The extension of an Advance prior to the receipt
by Lender of any of the foregoing shall not constitute a waiver by Lender of Borrower’s obligation
to deliver such item.

3.2 Procedure for Making Advances. Borrower shall provide Lender an irrevocable Notice of
Borrowing at least 15 business days prior to the desired Funding Date for any Advance, including
therewith all vendor invoices, bills of sale, receipts, agreements, proof of payment, and other
documents to evidence the ownership of such equipment by Borrower for which Borrower is requesting
an Advance hereunder provided such financed equipment is delivered to Borrower within 120 days of
the Funding Date for such equipment. Lender shall only be required to make Advances hereunder
based upon written requests which comply with the terms and exhibits of this Loan Agreement (as the
same may be amended from time to time), and which are submitted and signed by a Responsible
Officer. Borrower shall execute and deliver to Lender a Note and such other documents and
instruments as Lender may reasonably require for each Advance made. With respect to the initial
Advance hereunder, Lender agrees to finance equipment delivered to Borrower since January 1, 2008,
provided the Notice of Borrowing for such Advance is delivered to Lender within 30 days from the
date of this Agreement.

4. Creation of Security Interest

4.1 Grant of Security Interest. Borrower grants to Lender a valid, first priority (subject to
Permitted Liens), continuing security interest in all present and future Collateral in order to
secure prompt, full, faithful and timely payment and performance of all Obligations.

4.2 Inspections. Lender shall have the right upon reasonable prior notice to inspect Borrower’s
Books, including computer files, and to make copies, and to test, inspect and appraise the
Collateral, in order to verify any matter relating to Borrower or the Collateral.

4.3 Authorization to File Financing Statements. Borrower irrevocably authorizes Lender at any time
and from time to time to file in any jurisdiction any financing statements and amendments that: (i)
name Collateral as collateral thereunder, regardless of whether any particular Collateral falls
within the scope of the UCC; (ii) contain any other information required by the UCC for sufficiency
or filing office acceptance, including organization identification numbers; and (iii) contain such
language as Lender reasonably determines is helpful in protecting or preserving rights against
third parties.

5. Representations and Warranties

Borrower represents, and warrants as follows:

5.1 Due Organization and Qualification. Borrower is a corporation duly formed, existing and in
good standing under the laws of its state of incorporation and qualified and licensed to do
business in, and is in good standing in, any state in which the conduct of its business or its
ownership of property requires that it be so qualified or in which the Collateral is located,
except states other than Texas and Delaware where non-compliance would not reasonably be expected
to have a Material Adverse Effect on Borrower or any of the Collateral.

5.2 Authority. Borrower has all corporate power and authority, and has taken all actions, and has
obtained all third party consents necessary to execute, deliver, and perform the Loan Documents.

5.3 Disclosure Schedule. All information on the Disclosure Schedule is true, correct and complete.

4

 

5.4 Authorization; Enforceability. The execution and delivery hereof, the granting of the security
interest in the Collateral, the incurring of the Obligations, the execution and delivery of all
Loan Documents and the consummation of the transactions herein and therein contemplated have been
duly authorized by all necessary action by Borrower. The Loan Documents constitute legal, valid
and binding obligations of Borrower, enforceable in accordance with their terms, except as
enforceability may be limited by bankruptcy or similar laws relating to enforcement of creditors’
rights generally.

5.5 Name and Location. Borrower has not done business under any name other than that specified on
the signature page hereof or as set forth on the Disclosure Schedule. Except as provided in any
written notice from Borrower to Lender, (i) the chief executive office, principal place of
business, and the place where Borrower maintains its records concerning the Collateral is set
forth in Section 11 and (ii) the Collateral is presently located at the address(es) set forth in
Section 11 and on the Disclosure Schedule. Borrower has no subsidiaries except as set forth on the
Disclosure Schedule.

5.6 Litigation. All actions or proceedings pending or, to Borrower’s knowledge, threatened by or
against Borrower before any court or administrative agency are set forth on the Disclosure
Schedule.

5.7 Financial Statements. All financial statements of the Borrower and its consolidated
Subsidiaries delivered by Borrower to Lender fairly present in all material respects the financial
condition of the Borrower and its consolidated Subsidiaries, taken as a whole. All schedules
respecting Collateral that have been or may hereafter be delivered by Borrower to Lender are true,
complete and correct in all material respects for the periods indicated.

5.8 Solvency. Borrower is solvent and able to pay its debts (including trade debts) as they come
due.

5.9 Taxes. Borrower has filed all required tax returns, and has paid all taxes it owes other than
where the failure to comply would not reasonably be expected to have a Material Adverse Effect.

5.10 Rights; Title to Assets. Borrower possesses and owns all necessary assets, rights,
trademarks, trade names, copyrights, patents, patent rights, franchises and licenses which it needs
to conduct of its business as now operated or proposed to be operated. Borrower has good title to
its the Collateral, free and clear of any Liens except for Permitted Liens.

5.11 Full Disclosure. No written representation, warranty or other statement made by Borrower in
any Loan Document, certificate or statement furnished to Lender by Borrower contains any untrue
statement of a material fact or omits to state a material fact necessary in order to make the
statements contained in such certificates or statements not misleading.

5.12 Regulated Substances. Borrower complies with all laws respecting Regulated Substances in all
material respects.

5.13 Reaffirmation. Each Notice of Borrowing will constitute (i) a warranty and representation in
favor of Lender that there does not exist any Default and (ii) a reaffirmation as of the date
thereof of all of the representations and warranties contained in this Agreement and the Loan
Documents.

5.14 Auction Rate Securities. The Borrower (i) owns no auction rate securities or similar
financial instruments directly or indirectly in any brokerage, securities account or other account
created by or for the benefit of the Borrower; and (ii) has not created any standing or
discretionary purchase order or directive with any brokerage account or broker service to purchase
auction rate securities or similar financial instruments on behalf of the Borrower.

6. Affirmative Covenants

Borrower covenants and agrees that it shall do all of the following:

6.1 Good Standing and Compliance. Borrower shall maintain all governmental licenses, rights and
agreements necessary for its operations or business and comply with all statutes, laws, ordinances
and government rules and regulations to which it is subject, except where the failure to do so
would not reasonably be expected to result in a Material Adverse Effect.

6.2 Financial Statements, Reports, Certificates. Borrower shall deliver to Lender: (i) as soon as
prepared, and no later than 30 days after the end of each calendar month, a balance sheet, income
statement and cash flow statement covering Borrower’s operations during such period; (ii) as soon
as prepared, but no later than 120 days after the end of the fiscal year or such other time period
as approved by Borrower’s Board of Directors, (x) audited financial statements prepared in
accordance with GAAP, together with an opinion that such financial statements fairly present
Borrower’s financial condition by an independent public accounting firm reasonably acceptable to
Lender, or (y) in the absence of an initial audit, financial statements for such fiscal year
prepared in

5

 

accordance with GAAP and certified by a Responsible Officer or approved by the Board of Directors
of Borrower; (iii) immediately upon notice thereof, a report of any legal or administrative action
pending or threatened against Borrower which is likely to result in liability to Borrower in excess
of $100,000; and (iv) such other financial information as Lender may reasonably request from time
to time. Financial statements delivered pursuant to subsections (i) and (ii) above shall be
accompanied by a certificate signed by a Responsible Officer (each an “Officer’s Certificate”) in
the form of Exhibit F.

6.3 Notice of Defaults. Promptly following any Default or Event of Default, deliver an Officer’s
Certificate setting forth the facts relating to or giving rise thereto, and the Borrower’s proposed
action with respect thereto.

6.4 Use; Maintenance. Borrower, at its expense, shall (i) maintain the Collateral in good
condition, reasonable wear and tear excepted, and will comply in all material respects with all
laws, rules and regulations regarding use and operation of the Collateral and (ii) repair or
replace any lost or damaged Collateral, reasonable wear and tear excepted.

6.5 Insurance. Borrower, at its own expense, shall maintain insurance in amounts and coverages
reasonably satisfactory to Lender. Each insurance policy shall: (i) name Lender loss payee or
additional insured, as appropriate, (ii) provide for insurer’s waiver of its right of subrogation
against Lender and Borrower, (iii) provide that such insurance shall not be invalidated by any
action of, or breach of warranty by, Borrower and waive set-off, counterclaim or offset against
Lender, (iv) be primary without a right of contribution of Lender’s insurance, if any, or any
obligation on the part of Lender to pay premiums of Borrower, and (v) require the insurer to give
Lender at least 30 days prior written notice of cancellation, unless such cancellation is on
account of non-payment in which case 10 days prior written notice shall be sufficient. Borrower
shall furnish all certificates of insurance required by Lender.

6.6 Loss Proceeds. So long as no Event of Default has occurred and is continuing, any proceeds of
insurance on or condemnation of Collateral shall, at Borrower’s election and so long as Lender’s
security interest in such proceeds remains first priority, be used either to repair or replace such
Collateral or otherwise applied to the purchase or acquisition of property useful to Borrower’s
business.

6.7 Further Assurances. At any time and from time to time, Borrower shall execute and deliver such
further instruments and take such further action as Lender may reasonably request to effect the
intent and purposes hereof, to perfect and continue perfected and of first priority Lender’s
security interests in the Collateral, and to effect and maintain ACH payment arrangements.

6.8 Regulated Substances. Borrower will comply with all laws respecting Regulated Substances and
shall not incur any penalties with regards to such Regulated Substances in an amount not to exceed
$100,000 of remedial cost, which penalty has not been dismissed or paid within 30 days.

6.9 Additional Warrant. Upon the earlier of (i) the Next Round Financing or (ii) June 30, 2010,
Borrower shall issue Lender the Additional Warrant to purchase such number of shares of Borrower’s
Preferred Stock equal to 3% of the Advances drawn hereunder divided by the applicable Exercise
Price. In the event that a Next Round Financing under subsection (i) of the definition of the Next
Round Financing set forth above is completed on or before June 30, 2010, the Additional Warrant
shall be exercisable for the preferred stock issued in such Next Round Financing at the Exercise
price equal to the Price per share of Borrower’s preferred stock paid by investors in the Next
Round Financing. In the event the Next Round Financing under subsection (ii) of the definition of
the Next Round Financing set forth above is completed on or before June 30, 2010 (provided that a
Next Round Financing under subsection (i) of the definition of the Next Round Financing has not
been previously completed) or if a Next Round Financing under subsection (i) of the definition of
the Next Round Financing set forth above is not completed on or before June 30, 2010, then the
Additional Warrant shall be exercisable to purchase shares of Borrower’s Series A-1 Preferred Stock
with an Exercise Price equal to the Series A-1 Price. Notwithstanding the foregoing, if the Next
Round Financing as defined within subsection (i) of the definition of the Next Round Financing with
respect to the authorization and issuance of a new series of Preferred Stock shall occur prior to
the Commitment Termination Date, the Additional Warrant shall be issued in accordance with the
terms hereof within 3 days following the Commitment Termination Date.

6.10 Taxes. Borrower will file all required tax returns, and will pay all taxes it owes other than
where the failure to comply would not reasonably be expected to have a Material Adverse Effect.

7. Negative Covenants

Borrower will not do any of the following:

7.1 Location of Collateral. Change its chief executive office or principal place of business or
remove, except in the ordinary course of Borrower’s business, the Collateral or Borrower’s Books
from the premises listed in Section 11 without giving 30 days prior written notice to Lender.

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7.2 Extraordinary Transactions. Sell, lease, license or otherwise dispose of its assets, other
than (i) sales of inventory in the ordinary course of Borrower’s business; (ii) licenses of
Borrower’s intellectual property assets entered into in the ordinary course of business; and (iii)
any other sale, lease, license or disposition (excluding Collateral hereunder) the net proceeds of
which, does not, taken together with each other sale, lease, license or disposition made in such
fiscal year, exceed $100,000.

7.3 Restructure. Make any material change in Borrower’s financial structure or business operations
(other than through the sale of preferred stock to equity investors which does not result in a
change of control of Borrower); or suspend operation of Borrower’s business.

7.4 Liens. Create, incur, assume or suffer to exist any Lien of any kind with respect to any of
the Collateral, whether now owned or hereafter acquired, except for Permitted Liens.

7.5 Distributions. Pay any dividends or distributions, or redeem or purchase, any capital stock,
except for (i) repurchases of capital stock from departing employees or directors, under repurchase
agreements approved by the Borrower’s Board of Directors and (ii) dividends or distributions
payable solely in capital stock of Borrower

7.6 Transactions with Affiliates. Directly or indirectly enter into any transaction with any
affiliate which is on terms less favorable to Borrower than would be obtained in an arm’s length
transaction with a non-affiliated entity; provided, any such transaction shall not be a breach of
this Section 7.6 if approved by a disinterested majority of the Borrower’s Board of Directors.

7.7 Compliance. (i) Become an “investment company” under the Investment Company Act of 1940 or
extend credit to purchase or carry margin stock; (ii) fail to meet the minimum funding requirements
of ERISA; (iii) permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur;
(iv) fail to comply with the Federal Fair Labor Standards Act; or (v) violate any other material
law or material regulation.

7.8 UCC Effectiveness. Change its name, jurisdiction of organization, or take any other action
that could render Lender’s financing statements misleading under the Code, without giving Lender 30
days advance written notice.

7.9 Auction Rate Securities. For so long as the Obligations are outstanding, Borrower shall not
hold directly or indirectly, purchase or create a purchase order or directive to purchase any
auction rate securities or similar financial instruments regardless of whether such securities are
to be held by Borrower or through one or more brokerage accounts.

7.10 Maintenance of Subsidiaries. Borrower shall not, and shall not permit or cause any Subsidiary
to, (i) sell, dispose of, convey, or allow a Lien to arise on any of its assets, including
Intellectual Property (as defined in Exhibit A) owned by such Subsidiary (and for this purpose, the
definition of “Intellectual Property” shall be deemed to refer to such Subsidiary) except for
non-exclusive licenses entered into in the ordinary course of business; (ii) divest or “spin-off”
any Subsidiary except where as a result of such transaction Borrower and/or Borrower’s shareholders
or affiliates retain or obtain majority ownership of such Subsidiary; (iii) merge or consolidate
any Subsidiary with or into another entity (unless as a result of such merger Borrower and/or
Borrower’s shareholders or affiliates retain or obtain majority ownership of the surviving entity);
(iv) permit a Change of Control (as defined below) of any Subsidiary; (v) make a pledge of, any
capital stock of any Subsidiary in favor of any person other than Lender; or (vi) materially change
the corporate structure and business operations of the Borrower and its Subsidiaries taken as a
whole. For the purposes of this Section 7.10, a “Change of Control” shall mean, any transaction or
series of related transactions whereby the Borrower and/or Borrower’s shareholders or affiliates of
Borrower holding in excess of 50% of the outstanding voting capital stock of any Subsidiary
immediately prior to such transaction or transactions, shall own less than 50% of the outstanding
voting or capital stock of such Subsidiary immediately following such transaction or transactions.

8. Events of Default

Any one or more of the following shall constitute an Event of Default by Borrower hereunder:

8.1 Payment. Borrower fails to pay when due and payable in accordance with the Loan Documents any
portion of the Obligations, or cancels an ACH payment or transfer Lender has initiated in
conformity with the terms hereof provided, however, that an Event of Default shall not occur on
account of a failure to pay due solely to an administrative or operational error if Borrower had
the funds to make the payment when due and makes the payment the business day following Borrower’s
knowledge of such failure to pay.

8.2 Certain Covenant Defaults. Borrower fails to perform any obligation under Section 6.5 or 6.6,
or violates any of the covenants contained in Section 7.

7

 

8.3 Other Covenant Defaults. Borrower fails or neglects to perform, keep, or observe any other
term, provision, condition, covenant, or agreement contained in this Agreement, in any of the other
Loan Documents, or in any other present or future agreement between Borrower and Lender and has
failed to cure such failure within 30 days after its occurrence.

8.4 Attachment. Any material portion of Borrower’s assets is attached, seized, subjected to a
government levy, lien, writ or distress warrant, or comes into the possession of any trustee or
receiver and the same is not returned, removed, waived, stayed, discharged or rescinded within 20
days.

8.5 Other Agreements. There is a default in any agreement to which Borrower is a party resulting
in a right by a third party, whether or not exercised, to accelerate the maturity of any
Indebtedness, in an amount greater than $100,000.

8.6 Judgments. One or more judgments for an aggregate of at least $100,000 is rendered against
Borrower and remains unsatisfied and unstayed for more than 30 days.

8.7 Injunction. Borrower is enjoined, restrained, or in any way prevented by court order from
continuing to conduct any material part of its business affairs, or if a judgment or other claim
becomes a Lien upon any material portion of Borrower’s assets.

8.8 Misrepresentation. Any representation, statement, or report made to Lender by Borrower was
false or misleading when made in any material respect.

8.9 Enforceability. Lender’s ability to enforce its rights against Borrower or any Collateral is
impaired in any material respect, or Borrower asserts that any Loan Document is not a legal, valid
and binding obligation of Borrower enforceable in accordance with its terms.

8.10 Involuntary Bankruptcy. An involuntary bankruptcy case against Borrower remains undismissed
or unstayed for 60 days or, if earlier, an order granting the relief sought is entered.

8.11 Voluntary Bankruptcy or Insolvency. Borrower commences a voluntary case under applicable
bankruptcy or insolvency law, consents to the entry of an order for relief in an involuntary case
under any such law, or consents or is subject to the appointment of or taking possession by a
receiver, liquidator, assignee, trustee, custodian or other similar official of Borrower or any
substantial part of its property, or makes an assignment for the benefit of creditors, or fails
generally or admits in writing to its inability to pay its debts as they become due, or takes any
corporate action in furtherance of any of the foregoing.

8.12 Merger, Sale or Change of Control. The occurrence of (i) a merger of Borrower with another
entity (whether or not the Borrower is the “surviving entity”) whereby the shareholders of Borrower
immediately prior to such merger own less than 50% of the outstanding voting securities of Borrower
immediately after such merger; (ii) the sale (in one or a series of related transactions) of all or
substantially all of Borrower’s assets; or (iii) any transaction (or series of related
transactions) other than a transaction that is a bona fide equity financing with the primary
purpose of raising capital for Borrower, whereby the shareholders of Borrower immediately prior to
such transaction(s) own less than 50% of the outstanding voting securities of Borrower immediately
after such transaction(s), and such acquirer or resulting entity (including, Borrower, if Borrower
is the resulting or surviving entity) fails to either: (a) pay off the Obligations in cash at the
closing of the acquisition, merger or sale or (b) provide an unconditional, unlimited guaranty or
reaffirmation of the Obligations in form and substance satisfactory to Lender and is of a credit
quality acceptable to Lender

9. Lender’s Rights and Remedies

9.1 Rights and Remedies. Upon the occurrence and continuance of any Event of Default, Lender may,
at its election, without notice of election and without demand, do any one or more of the
following, all of which are authorized by Borrower: (i) accelerate and declare the Loan and all
Obligations immediately due and payable; (ii) make such payments and do such acts as Lender
considers necessary or reasonable to protect its security interest in the Collateral, with such
amounts becoming Obligations bearing interest at the Default Rate; (iii) exercise any and all other
rights and remedies available under the UCC or otherwise; (iv) require Borrower to assemble the
Collateral at such places as Lender may designate; (v) enter premises where any Collateral is
located, take, maintain possession of, or render unusable the Collateral or any part of it; (vi)
without notice to Borrower, set off and recoup against any portion of the Obligations; (vii) ship,
reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell
the Collateral, in connection with which Borrower hereby grants Lender a license to use without
charge Borrower’s premises, labels, name, trademarks, and other property necessary to complete,
advertise, and sell any Collateral; and (viii) sell the Collateral at one or more public or private
sales.

9.2 Power of Attorney in Respect of the Collateral. Borrower hereby irrevocably appoints Lender
(which appointment is coupled with an interest) its true and lawful attorney in fact with full
power of substitution, for it and in its name to, upon and during the continuance of an Event of
Default: (i) ask, demand, collect, receive, sue for, compound and give acquittance for any and all

8

 

Collateral with full power to settle, adjust or compromise any claim, (ii) receive payment of and
endorse the name of Borrower on any items of Collateral, (iii) make all demands, consents and
waivers, or take any other action with respect to, the Collateral, (iv) file any claim or take any
other action, in Lender’s or Borrower’s name, which Lender may reasonably deem appropriate to
protect its rights in the Collateral, or (v) otherwise act with respect to the Collateral as though
Lender were its outright owner.

9.3 Charges. If Borrower fails to pay any amounts required hereunder to be paid by Borrower to any
third party, Lender may at its option pay any part thereof and any amounts so paid including
Lender’s Expenses incurred shall become Obligations, immediately due and payable, bearing interest
at the Default Rate, and secured by the Collateral. Any such payments by Lender shall not
constitute an agreement to make similar payments or a waiver of any Event of Default.

9.4 Remedies Cumulative. Lender’s rights and remedies under the Loan Documents and all other
agreements with Borrower shall be cumulative. Lender shall have all other rights and remedies as
provided under the UCC, by law, or in equity. No exercise by Lender of one right or remedy shall
be deemed an election, and no waiver by Lender of any Event of Default shall be deemed a continuing
waiver. No delay by Lender shall constitute a waiver, election, or acquiescence.

9.5 Application of Collateral Proceeds. Lender will apply proceeds of sale, to the extent actually
received in cash, in the manner and order it determines in its sole discretion, and as prescribed
by applicable law.

10. Waivers; Indemnification

10.1 Waivers. Without limiting the generality of the other waivers made by Borrower herein, to the
maximum extent permitted under applicable law, Borrower hereby irrevocably waives all of the
following: (i) any right to assert against Lender as a defense, counterclaim, set-off or
crossclaim, any defense (legal or equitable), set-off, counterclaim, crossclaim and/or other claim
(a) which Borrower may now or at any time hereafter have against any party liable to Lender in any
way or manner, or (b) arising directly or indirectly from the present or future lack of perfection,
sufficiency, validity and/or enforceability of any Loan Document, or any security interest; (ii)
presentment, demand and notice of presentment, dishonor, notice of intent to accelerate, protest,
default, nonpayment, maturity, release, compromise, settlement, extension or renewal of any or all
accounts, documents, instruments, chattel paper and guaranties at any time held by Lender on which
Borrower may in any way be liable and hereby ratifies and confirms whatever Lender may do in this
regard; (iii) the benefit of all marshalling, valuation, appraisal and exemption laws; (iv) the
right, if any, to require Lender to (a) proceed against any person liable for any of the
Obligations as a condition to or before proceeding hereunder; or (b) foreclose upon, sell or
otherwise realize upon or collect or apply any other property, real or personal, securing any of
the Obligations, as a condition to, or before proceeding hereunder; (v) any demand for possession
before the commencement of any suit or action to recover possession of Collateral; and (vi) any
requirement that Lender retain possession and not dispose of Collateral until after trial or final
judgment.

10.2 Lender’s Liability for Collateral. Lender shall not in any way or manner be liable or
responsible for: (i) the safekeeping of any Collateral; (ii) any loss or damage thereto occurring
or arising in any manner or fashion from any cause; (iii) any diminution in the value thereof; or
(iv) any act or default of any carrier, warehouseman, bailee, forwarding agency, or other person or
entity whomsoever, unless Lender fails to handle any Collateral in its possession in a manner
consistent with commercially reasonable practices. All risk of loss, damage or destruction of the
Collateral shall be borne by Borrower. Lender will have no responsibility for taking any steps to
preserve rights against any parties respecting any Collateral. Lender’s powers hereunder are
conferred solely to protect its interest in the Collateral and do not impose any duty to exercise
any such powers. None of Lender or any of its officers, directors, employees, agents or counsel
will be liable for any action lawfully taken or omitted to be taken hereunder or in connection
herewith (excepting gross negligence or willful misconduct), nor under any circumstances have any
liability to Borrower for lost profits or other special, indirect, punitive, or consequential
damages. Lender retains any documents delivered by Borrower only for its purposes and for such
period as Lender, at its sole discretion, may determine necessary, after which time Lender may
destroy such records without notice to or consent from Borrower.

10.3 Indemnification. Borrower shall, on an after tax basis, defend, indemnify, and hold Lender
and each of its officers, directors, employees, counsel, partners, agents and attorneys-in-fact
(each, an “Indemnified Person”) harmless from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, charges, expenses or disbursements
(including Lender’s Expenses and reasonable attorney’s fees) of any kind or nature whatsoever with
respect to the execution, delivery, enforcement, performance and administration of this Agreement
and any other Loan Documents, or the transactions contemplated hereby and thereby, with respect to
noncompliance with laws or regulations respecting Regulated Substances, government secrecy or
technology export, or any Lien not created by Lender or right of another against any Collateral,
even if the Collateral is foreclosed upon or sold pursuant hereto, and with respect to any
investigation, litigation or proceeding before any agency, court or other governmental authority
relating to this Agreement or the Advances or the use of the proceeds thereof, whether or not any
Indemnified Person is a party thereto (all the foregoing, collectively, the “Indemnified
Liabilities”); provided, that Borrower shall have no obligation hereunder to any Indemnified Person
with respect to Indemnified Liabilities arising from the gross negligence or willful

9

 

misconduct of such Indemnified Person. The obligations in this Section shall survive the Term. At
the election of any Indemnified Person, Borrower shall defend such Indemnified Person using legal
counsel reasonably satisfactory to such Indemnified Person, at the sole cost and expense of
Borrower. All amounts owing under this Section shall be paid within 30 days after written demand.

11. Notices

All notices shall be in writing and personally delivered or sent by certified mail, postage
prepaid, return receipt requested, or by confirmed facsimile, at the respective addresses set forth
below:

	 	 	 

	If to Borrower:

	 	If to Lender:
	 
	 	 
	KiOR Inc.

	 	Lighthouse Capital Partners VI, L.P.
	Attention: Chief Financial Officer

	 	Attention: Contract Administrator
	2600 South Shore Boulevard, Suite 100

	 	3555 Alameda de las Pulgas, Suite 200
	League City, Texas 77573

	 	Menlo Park, California 94025
	FAX: (281) 334-2832

	 	FAX: (650) 233-0114

12. General Provisions

12.1 Successors and Assigns. This Agreement shall bind and inure to the benefit of the parties’
respective successors and permitted assigns. Borrower may not assign any rights hereunder without
Lender’s prior written consent, which consent may be granted or withheld in Lender’s sole
discretion. Lender shall have the right without the consent of or notice to Borrower to sell,
transfer, negotiate, or grant participations in all or any part of any Loan Document, except for
any such sale, transfer, negotiation or grant of a participation to a competitor of Borrower or any
of its Subsidiaries.

12.2 Time of Essence. Time is of the essence for the performance of all Obligations.

12.3 Severability of Provisions. Each provision hereof shall be severable from every other
provision in determining its legal enforceability.

12.4 Entire Agreement. This Agreement and each of the other Loan Documents dated as of the date
hereof, taken together, constitute and contain the entire agreement between Borrower and Lender
with respect to their subject matter and supersede any and all prior agreements, negotiations,
correspondence, understandings and communications between the parties, whether written or oral.
This Agreement is the result of negotiations between and has been reviewed by the Borrower and
Lender as of the date hereof and their respective counsel; accordingly, this Agreement shall be
deemed to be the product of the parties hereto, and no ambiguity shall be construed in favor of or
against Borrower or Lender. This Agreement may only be modified with the written consent of
Lender. Any waiver or consent with respect to any provision of the Loan Documents shall be
effective only in the specific instance and for the specific purpose for which it was given. No
notice to or demand on Borrower in any one case shall entitle Borrower to any other or further
notice or demand in similar or other circumstances.

12.5 Reliance by Lender. All covenants, agreements, representations and warranties made herein by
Borrower shall, notwithstanding any investigation by Lender, be deemed to be material to and to
have been relied upon by Lender.

12.6 No Set-Offs by Borrower. All sums payable by Borrower pursuant to this Agreement or any of
the other Loan Documents shall be payable without notice or demand and shall be payable in United
States Dollars without set-off or reduction of any manner whatsoever.

12.7 Counterparts. This Agreement may be executed in any number of counterparts, each of which
shall be deemed to be an original, and all of which, when taken together, shall constitute one and
the same original instrument.

12.8 Survival. All covenants, representations and warranties made in this Agreement shall continue
in full force and effect so long as any Obligations remain outstanding.

12.9 No Original Issue Discount. Borrower and Lender acknowledge and agree that the Warrant is
part of an investment unit within the meaning of Section 1273(c)(2) of the Internal Revenue Code,
which includes the Loan. Borrower and Lender further agree as between them, that the fair market
value of the Warrant is $100 and that, pursuant to Treas. Reg. § 1.1273-2(h), $100 of the issue
price of the investment unit will be allocable to the Warrant and the balance shall be allocable to
the Loans. Borrower and Lender agree to prepare their federal income tax returns in a manner
consistent with the foregoing and, pursuant to Treas. Reg. § 1.1273, the original issue discount on
the Loan shall be considered to be zero.

10

 

12.10 Relationship of Parties. The relationship between Borrower and Lender is, and at all times
shall remain, solely that of a borrower and lender. Lender is not a partner or joint venturer of
Borrower; nor shall Lender under any circumstances be deemed to be in a relationship of confidence
or trust or have a fiduciary relationship with Borrower or any of its affiliates, or to owe any
fiduciary duty to Borrower or any of its affiliates. Lender does not undertake or assume any
responsibility or duty to Borrower or any of its affiliates to select, review, inspect, supervise,
pass judgment upon or otherwise inform any of them of any matter in connection with its or their
property, the Loans, any Collateral or the operations of Borrower or any of its affiliates.
Borrower and each of its affiliates shall rely entirely on their own judgment with respect to such
matters, and any review, inspection, supervision, exercise of judgment or supply of information
undertaken or assumed by Lender in connection with such matters is solely for the protection of
Lender and neither Borrower nor any affiliate is entitled to rely thereon.

12.11 Choice of Law and Venue; Jury Trial Waiver. This Agreement shall be governed by and
construed in accordance with, the internal laws of the State of California, without regard to
principles of conflicts of law. Each of Borrower and Lender hereby submits to the exclusive
jurisdiction and venue of the State and Federal courts located in the City and County of San
Francisco, State of California. Borrower and Lender hereby waive their respective rights to a jury
trial of any claim or cause of action based upon or arising out of any of the Loan Documents or any
of the transactions contemplated therein, including contract claims, tort claims, breach of duty
claims, and all other common law or statutory claims. Each party further waives any right to
consolidate any action in which a jury trial has been waived with any other action in which a jury
trial cannot be or has not been waived.

In Witness Whereof, the parties hereto have executed this Agreement as of the date first
above written.

	 	 	 	 	 	 	 	 	 	 	 

	KiOR Inc.	 	 	 	Lighthouse Capital Partners VI, L.P.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	Lighthouse Management Partners VI, L.L.C., its
general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By: 

Name:

	 	/s/ Fred Cannon
 

Fred Cannon
	 	 	 	By:

Name:
	 	/s/ Cristy Barnes
 

Cristy Barnes
	 	 
	Title:

	 	CEO
	 	 	 	Title:
	 	 Managing Director	 	 

	 	 	 

	Exhibit A

	 	Collateral Description
	Exhibit B

	 	Form of Note
	Exhibit C

	 	Forms of Preferred Stock Warrant
	Exhibit D

	 	Form of Notice of Borrowing
	Exhibit E

	 	Form of Incumbency Certificate
	Exhibit F

	 	Form of Officers Certificate
	Exhibit G

	 	ACH Authorization
	Schedule 1

	 	Disclosure Schedule

11

 

Exhibit A

	 	 	 

	DEBTOR/BORROWER:

	 	KiOR Inc.
	 
	 	 
	SECURED PARTY/LENDER:

	 	Lighthouse Capital Partners VI, L.P.

COLLATERAL

     The Collateral shall consist of all right, title and interest of Debtor in and to all the following:

     All right, title, interest, claims and demands of Debtor in and to each and every item of
equipment, fixtures or personal property that is financed pursuant to the Loan and Security
Agreement, dated as of December 30, 2008, by and between Debtor and Secured Party, including
without limitation, the equipment, fixtures and personal property whether now owned or hereafter
acquired, wherever located, together with all substitutions, renewals or replacements of and
additions, improvements, accessions and accumulations to any and all of such equipment, fixtures or
personal property together with all the rents, issues, income, profits and avails therefrom and all
of the products and proceeds thereof, including without limitation, insurance, proceeds of
insurance, proceeds of proceeds, condemnation, requisition or similar payments, and all proceeds
from sales, renewals, releases or other dispositions thereof. Notwithstanding the foregoing,
Collateral does not include any leasehold improvements or the products and proceeds thereof.

1

 

Exhibit B

[__________]

Secured Promissory Note

This Secured Promissory Note (this “Note”) is made ____________, 200__, by KiOR
Inc. (“Borrower”) in favor of Lighthouse Capital Partners VI, L.P. (collectively with
its assigns, “Lender”). Initially capitalized terms used and not otherwise defined herein are
defined in that certain Loan and Security Agreement No. 1451 between Borrower and Lender dated
November __, 2008 (the “Loan Agreement”).

For Value Received, Borrower promises to pay in lawful money of the United States, to the
order of Lender, at 3555 Alameda de las Pulgas, Suite 200, Menlo Park, California 94025, or such
other place as Lender may from time to time designate (“Lender’s Office”), the principal sum of
$___________ (the “Advance”), including interest on the unpaid balance and all other amounts due or
to become due hereunder according to the terms hereof and of the Loan Agreement.

“Basic Rate” a per annum rate of interest equal to 7.5%.

“Final Payment” means 7.5% of the Advance.

“Loan Commencement Date” means the first business day of the calendar month following the Funding
Date.

“Maturity Date” means the last day of the Repayment Period, or if earlier, the date of prepayment
under the Note.

“Payment Date” means the first day of each calendar month.

“Prepayment Fee” means (i) 3% of the outstanding principal amount being prepaid for any prepayment
made in 2008 or 2009; (ii) 2% of the outstanding principal amount being prepaid for any prepayment
made in 2010; and (iii) 1% of the outstanding principal amount being prepaid for any prepayment
made in 2011 or thereafter.

“Repayment Period” means the period beginning on the Loan Commencement Date and continuing for 36
calendar months.

1. Repayment. Borrower shall pay principal and interest due hereunder from the Funding Date, until
this Note is paid in full, on each Payment Date pursuant to the terms of the Loan Agreement and
this Note. Prior to the Loan Commencement Date, Borrower shall pay to Lender, monthly in advance
on each Payment Date, interest calculated using the Basic Rate prevailing on the first business day
of such calendar month. Beginning on the Loan Commencement Date and on each Payment Date
thereafter during the Repayment Period, Borrower shall make equal installments of principal and
interest in advance, calculated at the Basic Rate. On the Maturity Date, Borrower shall pay, in
addition to all unpaid principal and interest outstanding hereunder, the Final Payment.

2. Interest. Interest not paid when due will, to the maximum extent permitted under applicable
law, become part of principal, at Lender’s option, and thereafter bear like interest as principal.
All interest computation shall be based on a 360-day year and actual days elapsed. All
Obligations not paid when due shall bear interest at the Default Rate unless waived in writing by
Lender. All amounts paid hereunder will be applied to the Obligations in Lender’s discretion and as
provided in the Loan Agreement.

3. Voluntary Prepayment. Borrower may prepay the Note if and only if Borrower pays to Lender (i)
the outstanding principal amount of this Note and any unpaid accrued interest; (ii) the Final
Payment; (iii) the Prepayment Fee, if applicable; and (iv) all other sums, if any, that shall have
become due and payable hereunder with respect to this Note.

4. Collateral. This Note is secured by the Collateral.

5. Waivers. Borrower, and all guarantors and endorsers of this Note, regardless of the time, order
or place of signing, hereby waive notice, demand, presentment, protest, and notices of every kind,
presentment for the purpose of accelerating maturity, diligence in collection, and, to the fullest
extent permitted by law, all rights to plead any statute of limitations as a defense to any action
on this Note.

6. Choice of Law; Venue. This Note shall be governed by, and construed in accordance with the
internal laws of the State of California, without regard to principles of conflicts of law. Each
of Borrower and

1

 

Lender hereby submits to the exclusive jurisdiction and venue of the State and
Federal courts located in the City and County of San Francisco, State of California. Borrower and
Lender each hereby waive their respective rights to a jury trial of any claim or cause of action
based upon or arising out of this Note. Each
party further waives any right to consolidate any action in which a jury trial has been waived
with any other action in which a jury trial cannot be or has not been waived.

7. Miscellaneous. This Note may be modified only by a writing signed by Borrower and
Lender. Each provision hereof is severable from every other provision hereof and of the Loan
Agreement when determining its legal enforceability. Sections and subsections are titled for
convenience, and not for construction. “Hereof,” “herein,” “hereunder,” and similar words refer to
this Note in its entirety. “Or” is not necessarily exclusive. “Including” is not limiting. The
terms and conditions hereof inure to the benefit of and are binding upon the parties’ respective
permitted successors and assigns. This Note is subject to all the terms and conditions of the Loan
Agreement.

In Witness Whereof, Borrower has caused this Note to be executed by a duly authorized
officer as of the day and year first above written.

	 	 	 	 	 	 	 

	 	 	KiOR Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

2

 

Exhibit c

Warrant

1

 

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933
ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD OR TRANSFERRED UNLESS SUCH SALE
OR TRANSFER IS IN ACCORDANCE WITH THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS OR
SOME OTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS IS
AVAILABLE WITH RESPECT THERETO.

PREFERRED STOCK PURCHASE WARRANT

	 	 	 

	Warrant No.___________

	 	Number of Shares: 51,414
	 

	 	Series A-1 Preferred Stock

Kior Inc.

Effective as of December 30, 2008

Void after December 30, 2016

     1. Issuance. This Preferred Stock Purchase Warrant (the “Warrant”) is issued to
Lighthouse Capital Partners VI, L.P. by Kior Inc., a Delaware corporation
(hereinafter with its successors called the “Company”).

     2. Purchase Price; Number of Shares. The registered holder of this Warrant (the “Holder”),
commencing on the date hereof, is entitled upon surrender of this Warrant with the subscription
form annexed hereto duly executed, at the principal office of the Company, to purchase from the
Company, at a price per share of $3.89 (the “Purchase Price”), 51,414 fully paid and nonassessable
shares of the Company’s Series A-1 Preferred Stock, $0.0001 par value (the “Preferred Stock”).

Until such time as this Warrant is exercised in full or expires, the Purchase Price and the
securities issuable upon exercise of this Warrant are subject to adjustment as hereinafter
provided. The person or persons in whose name or names any certificate representing shares of
Preferred Stock is issued hereunder shall be deemed to have become the holder of record of the
shares represented thereby as at the close of business on the date this Warrant is exercised with
respect to such shares, whether or not the transfer books of the Company shall be closed.

     3. Payment of Purchase Price. The Purchase Price may be paid (i) in cash or by check, (ii) by
the surrender by the Holder to the Company of any promissory notes or other obligations issued by
the Company, with all such notes and obligations so surrendered being credited against the Purchase
Price in an amount equal to the principal amount thereof plus accrued interest to the date of
surrender, or (iii) by any combination of the foregoing.

     4. Net Issue Election. The Holder may elect to receive, without the payment by the Holder of
any additional consideration, shares of Preferred Stock equal to the value of this Warrant or any
portion hereof by the surrender of this Warrant or such portion to the Company, with the net issue
election notice annexed hereto duly executed, at the principal office of the Company. Thereupon,
the Company shall issue to the Holder such number of fully paid and nonassessable shares of
Preferred Stock as is computed using the following formula:

1.

 

X= Y(A-B)

  A

	 	 	 	 	 

	where:

	 	X =
	 	the number of shares of Preferred Stock to be issued to the Holder pursuant to this Section 4.
	 
	 	 	 	 
	 

	 	Y =
	 	the number of shares of Preferred Stock covered by this Warrant
in respect of which the net issue election is made pursuant to this Section 4.
	 
	 	 	 	 
	 

	 	A =
	 	the Fair Market Value (defined below) of one share of Preferred
Stock, as determined at the time the net issue election is made pursuant to this
Section 4.
	 
	 	 	 	 
	 

	 	B =
	 	the Purchase Price in effect under this Warrant at the time the
net issue election is made pursuant to this Section 4.

          “Fair Market Value” of a share of Preferred Stock (or fully paid and nonassessable shares of
the Company’s common stock, $0.0001 par value (the “Common Stock”) if the Preferred Stock has been
automatically converted into Common Stock) as of the date that the net issue election is made (the
“Determination Date”) shall mean:

          (i) If the net issue election is made in connection with and contingent upon the closing of
the sale of the Company’s Common Stock to the public in a public offering pursuant to a
Registration Statement under the 1933 Act (a “Public Offering”), and if the Company’s Registration
Statement relating to such Public Offering (“Registration Statement”) has been declared effective
by the Securities and Exchange Commission, then the initial “Price to Public” specified in the
final prospectus with respect to such offering multiplied by the number of shares of Common Stock
into which each share of Preferred Stock is then convertible.

          (ii) If the net issue election is not made in connection with and contingent upon a Public
Offering, then as follows:

               (a) If traded on a securities exchange or NASDAQ market or system, the fair market value of
the Common Stock shall be deemed to be the average of the closing or last reported sale prices of
the Common Stock on such exchange or market over the five day period ending five trading days prior
to the Determination Date, and the fair market value of the Preferred Stock shall be deemed to be
such fair market value of the Common Stock multiplied by the number of shares of Common Stock into
which each share of Preferred Stock is then convertible;

               (b) If otherwise traded in an over-the-counter market, the fair market value of the Common
Stock shall be deemed to be the average of the closing ask prices of the Common Stock over the five
day period ending five trading days prior to the Determination Date, and the fair market value of
the Preferred Stock shall be deemed to be such fair market value of the Common Stock multiplied by
the number of shares of Common Stock into which each share of Preferred Stock is then convertible;
and

               (c) If there is no public market for the Common Stock, then fair market value shall be
determined in good faith by the Company’s Board of Directors.

     5. Partial Exercise. This Warrant may be exercised in part, and the Holder shall be entitled
to receive a new warrant, which shall be dated as of the date of this Warrant, covering the number
of shares in respect of which this Warrant shall not have been exercised.

     6. Fractional Shares. In no event shall any fractional share of Preferred Stock be issued
upon any exercise of this Warrant. If, upon exercise of this Warrant in its entirety, the Holder
would, except as provided in this Section 6, be entitled to receive a fractional share of
Preferred Stock, then the Company shall issue the next higher number of full shares of Preferred
Stock, issuing a full share with respect to such fractional share.

1. 7. Expiration Date; Automatic Exercise. This Warrant shall expire at the earliest to occur
of (the “Expiration Date”) (i) at the close of business on December 30, 2016; (ii) two years after
the closing of the initial Public Offering; of the Company on the NASDAQ or other stock exchange in
the United States, and shall be void thereafter.

2.

 

     Notwithstanding the term of this Warrant fixed pursuant to this Section 7, and provided
Holder has received advance written notice of at least twenty (20) days and has not earlier
exercised this Warrant, and provided this Warrant has not been assumed by the successor entity (or
parent thereof), upon the consummation of a Merger (as defined below), this Warrant shall
automatically be exercised pursuant to Section 4 hereof, without any action by Holder. “Merger”
means: (i) a sale of all or substantially all of the Company’s assets to an Unaffiliated Entity (as
defined below), or (ii) the merger, consolidation or acquisition of the Company with, into or by an
Unaffiliated Entity (other than a merger or consolidation for the principle purpose of changing the
domicile of the Company or a bona fide round of preferred stock equity financing), that results in
the transfer of fifty percent (50%) or more of the outstanding voting power of the Company.
“Unaffiliated Entity” means any entity that is owned or controlled by parties who own less than
twenty percent (20%) of the combined voting power of the voting securities of the Company
immediately prior to such merger, consolidation or acquisition. Notwithstanding the foregoing, in
the event that any outstanding warrants to purchase equity securities of the Company are assumed by
the successor entity of a Merger (or parent thereof), this Warrant shall also be similarly assumed.
The Company agrees to promptly give the Holder written notice of any proposed Merger and written
notice of termination of any proposed Merger. Notwithstanding anything to the contrary in this
Warrant, the Holder may rescind any exercise of its purchase rights after a notice of termination
of the proposed Merger if the exercise of this Warrant occurred after the Company notified the
Holder that the Merger was proposed or if the exercise was otherwise precipitated by such proposed
Merger, provided, however that such rescission right must be exercised within thirty (30) days of
receipt of such written notice of termination of the proposed Merger. In the event of such
rescission, this Warrant will continue to be exercisable on the same terms and conditions.

     8. Reserved Shares; Valid Issuance. The Company covenants that it will at all times from and
after the date hereof reserve and keep available such number of its authorized shares of Preferred
Stock and Common Stock free from all preemptive or similar rights therein, as will be sufficient to
permit, respectively, the exercise of this Warrant in full and the conversion into shares of Common
Stock of all shares of Preferred Stock receivable upon such exercise. The Company further
covenants that such shares as may be issued pursuant to such exercise and/or conversion will, upon
issuance, be duly and validly issued, fully paid and nonassessable and free from all taxes, liens
and charges with respect to the issuance thereof.

     9. Stock Splits and Dividends. If after the date hereof the Company shall subdivide the
Preferred Stock, by split-up or otherwise, or combine the Preferred Stock, or issue additional
shares of Preferred Stock in payment of a stock dividend on the Preferred Stock, the number of
shares of Preferred Stock issuable on the exercise of this Warrant shall forthwith be
proportionately increased in the case of a subdivision or stock dividend, or proportionately
decreased in the case of a combination, and the Purchase Price shall forthwith be proportionately
decreased in the case of a subdivision or stock dividend, or proportionately increased in the case
of a combination.

     10. Adjustments for Diluting Issuances. The other antidilution rights applicable to the
Preferred Stock and the Common Stock of the Company are set forth in the Amended and Restated
Certificate of Incorporation, as amended from time to time (the “Articles”), a true and complete
copy in its current form which is attached hereto as Exhibit A. Such rights shall not be restated,
amended or modified in any manner which affects the Holder differently than the holders of
Preferred Stock without such Holder’s prior written consent. The Company shall promptly provide
the Holder hereof with any restatement, amendment or modification to the Articles promptly after
the same has been made.

     11. Mergers and Reclassifications. If after the date hereof the Company shall enter into any
Reorganization (as hereinafter defined), then, as a condition of such Reorganization, lawful
provisions shall be made, and duly executed documents evidencing the same from the Company or its
successor shall be delivered to the Holder, so that the Holder shall thereafter have the right to
purchase, at a total price not to exceed that payable upon the exercise of this Warrant in full,
the kind and amount of shares of stock and other securities and property receivable upon such
Reorganization by a holder of the number of shares of Preferred Stock which might have been
purchased by the Holder immediately prior to such Reorganization, and in any such case appropriate
provisions shall be made with respect to the rights and interest of the Holder to the end that the
provisions hereof (including without limitation, provisions for the adjustment of the Purchase
Price and the number of shares issuable hereunder and the provisions relating to the net issue
election) shall thereafter be applicable in relation to any shares of stock or other securities and
property thereafter deliverable upon exercise hereof. For the purposes of this Section 11, the
term “Reorganization” shall include without limitation any reclassification, capital reorganization
or change of the Preferred Stock (other than as a result of a subdivision, combination or stock
dividend provided for in Section 9 hereof), or any consolidation of the Company with, or merger of
the Company into, another corporation or other business organization (other than a merger in which
the Company is the surviving corporation and which does not result in any reclassification or
change of the outstanding Preferred Stock), or any sale or conveyance to another corporation or
other business organization of all or substantially all of the assets of the Company.

     12. Certificate of Adjustment. Whenever the Purchase Price is adjusted, as herein provided,
the Company shall promptly deliver to the Holder a certificate of the Company’s chief financial
officer setting forth the Purchase Price after such adjustment and setting forth a brief statement
of the facts requiring such adjustment.

3.

 

     13. Notices of Record Date, Etc. In the event of:

          (a) any taking by the Company of a record of the holders of any class of securities for the
purpose of determining the holders thereof who are entitled to receive any dividend or other
distribution, or any right to subscribe for, purchase, sell or otherwise acquire or dispose of any
shares of stock of any class or any other securities or property, or to receive any other right;

          (b) any reclassification of the capital stock of the Company, capital reorganization of the
Company, consolidation or merger involving the Company, or sale or conveyance of all or
substantially all of its assets; or

          (c) any voluntary or involuntary dissolution, liquidation or winding-up of the Company;

then in each such event the Company will provide or cause to be provided to the Holder a written
notice thereof. Such notice shall be provided at least twenty (20) business days prior to the date
specified in such notice on which any such action is to be taken.

     14. Representations, Warranties and Covenants. This Warrant is issued and delivered by the
Company and accepted by each Holder on the basis of the following representations, warranties and
covenants made by the Company:

          (a) The Company has all necessary authority to issue, execute and deliver this Warrant and to
perform its obligations hereunder. This Warrant has been duly authorized issued, executed and
delivered by the Company and is the valid and binding obligation of the Company, enforceable in
accordance with its terms.

          (b) The shares of Preferred Stock issuable upon the exercise of this Warrant have been duly
authorized and reserved for issuance by the Company and, when issued in accordance with the terms
hereof, will be validly issued, fully paid and nonassessable.

          (c) The issuance, execution and delivery of this Warrant do not, and the issuance of the
shares of Preferred Stock upon the exercise of this Warrant in accordance with the terms hereof
will not, (i) violate or contravene the Company’s Articles or by-laws, or any law, statute,
regulation, rule, judgment or order applicable to the Company, (ii) violate, contravene or result
in a breach or default under any contract, agreement or instrument to which the Company is a party
or by which the Company or any of its assets are bound or (iii) require the consent or approval of
or the filing of any notice or registration with any person or entity.

          (d) As long as this Warrant is, or any shares of Preferred Stock issued upon exercise of this
Warrant or any shares of Common Stock issued upon conversion of such shares of Preferred Stock are,
issued and outstanding, the Company will provide to the Holder the financial and other information
described in that certain Loan and Security Agreement No. 1451 between the Company and Lighthouse
Capital Partners VI, L.P. dated as December 30, 2008.

          (e) So long as this Warrant has not terminated, Holder shall be entitled to receive such
financial and other information as the Holder would be entitled to receive under the Stock Purchase
Agreement applicable to the Preferred Stock if Holder were a holder of that number of shares
issuable upon full exercise of this Warrant.

          (f) As of the date hereof, the authorized capital stock of the Company consists of (i)
8,700,000 shares of Common Stock, $0.001 par value, of which 1,800,000 shares are issued and
outstanding and 51,414 shares are reserved for issuance upon the exercise of this Warrant with
respect to Common Stock and the conversion of the Preferred Stock into Common Stock if this Warrant
is exercised with respect to Preferred Stock, (ii) 3,000,000 shares of Series A Preferred Stock, of
which 3,000,000 are issued and outstanding shares, and (iii) 2,700,000 shares of Series A-1
Preferred Stock, of which 2,571,447 are issued and outstanding shares. Attached hereto as Exhibit
B is a capitalization table summarizing the capitalization of the Company. Once per calendar
quarter, the Company will provide Holder with a current capitalization table indicating changes, if
any, to the number of outstanding shares of common stock and preferred stock.

     15. Registration Rights. Concurrently with the issuance hereof, the Company shall deliver an
amendment to the Amended and Restated Investors’ Rights Agreement, dated as of June 16, 2008, among
the Company and the Investors and Key Holders party thereto (the “Investors’ Rights Agreement”),
substantially in the form attached as Exhibit C hereto, duly executed and delivered by the Company
and a majority of holder of Registrable Securities (as defined in the Investors’ Rights Agreement).

     16. Amendment. The terms of this Warrant may be amended, modified or waived only with the
written consent of the Holder.

4.

 

     17. Representations and Covenants of the Holder. This Warrant has been entered into by the
Company in reliance upon the following representations and covenants of the Holder, which by its
execution hereof the Holder hereby confirms:

          (a) Investment Purpose. The right to acquire Preferred Stock or the Preferred Stock issuable
upon exercise of the Holder’s rights contained herein will be acquired for investment and not with
a view to the sale or distribution of any part thereof, and the Holder has no present intention of
selling or engaging in any public distribution of the same except pursuant to a registration or
exemption.

          (b) Accredited Investor. Holder is an “accredited investor” within the meaning of the
Securities and Exchange Rule 501 of Regulation D, as presently in effect.

          (c) Private Issue. The Holder understands (i) that the Preferred Stock issuable upon exercise
of the Holder’s rights contained herein is not registered under the 1933 Act or qualified under
applicable state securities laws on the ground that the issuance contemplated by this Warrant will
be exempt from the registration and qualifications requirements thereof, and (ii) that the
Company’s reliance on such exemption is predicated on the representations set forth in this Section
17.

          (d) Financial Risk. The Holder has such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of its investment and has the ability
to bear the economic risks of its investment.

     18. Notices, Transfers, Etc.

          (a) Any notice or written communication required or permitted to be given to the Holder may be
given by certified mail or delivered to the Holder at the address most recently provided by the
Holder to the Company.

          (b) Subject to compliance with applicable federal and state securities laws, this Warrant may
be transferred by the Holder with respect to any or all of the shares purchasable hereunder. Upon
surrender of this Warrant to the Company, together with the assignment notice annexed hereto duly
executed, for transfer of this Warrant as an entirety by the Holder, the Company shall issue a new
warrant of the same denomination to the assignee. Upon surrender of this Warrant to the Company,
together with the assignment hereof properly endorsed, by the Holder for transfer with respect to a
portion of the shares of Preferred Stock purchasable hereunder, the Company shall issue a new
warrant to the assignee, in such denomination as shall be requested by the Holder hereof, and shall
issue to such Holder a new warrant covering the number of shares in respect of which this Warrant
shall not have been transferred.

          (c) In case this Warrant shall be mutilated, lost, stolen or destroyed, the Company shall
issue a new warrant of like tenor and denomination and deliver the same (i) in exchange and
substitution for and upon surrender and cancellation of any mutilated Warrant, or (ii) in lieu of
any Warrant lost, stolen or destroyed, upon receipt of an affidavit of the Holder or other evidence
reasonably satisfactory to the Company of the loss, theft or destruction of such Warrant

     19. No Impairment. The Company will not, by amendment of its Articles or through any
reclassification, capital reorganization, consolidation, merger, sale or conveyance of assets,
dissolution, liquidation, issue or sale of securities or any other voluntary action, avoid or seek
to avoid the observance of performance of any of the terms of this Warrant, but will at all times
in good faith assist in the carrying out of all such terms and in the taking of all such action as
may be necessary or appropriate in order to protect the rights of the Holder.

     20. Governing Law. The provisions and terms of this Warrant shall be governed by and
construed in accordance with the internal laws of the State of California without giving effect to
its principles regarding conflicts of laws.

     21. Successors and Assigns. This Warrant shall be binding upon the Company’s successors and
assigns and shall inure to the benefit of the Holder’s successors, legal representatives and
permitted assigns.

     22. Business Days. If the last or appointed day for the taking of any action required or the
expiration of any rights granted herein shall be a Saturday or Sunday or a legal holiday in
California, then such action may be taken or right may be exercised on the next succeeding day
which is not a Saturday or Sunday or such a legal holiday.

     23. Qualifying Public Offering. If the Company shall effect a firm commitment underwritten
public offering of shares of Common Stock which results in the conversion of the Preferred Stock
into Common Stock pursuant to the Company’s Articles in effect immediately prior to such offering,
then, effective upon such conversion, this Warrant shall change from the right to purchase shares
of Preferred Stock to the right to purchase shares of Common Stock, and the Holder shall thereupon
have the right to purchase,

5.

 

at a total price equal to that payable upon the exercise of this Warrant in full, the number
of shares of Common Stock which would have been receivable by the Holder upon the exercise of this
Warrant for shares of Preferred Stock immediately prior to such conversion of such shares of
Preferred Stock into shares of Common Stock, and in such event appropriate provisions shall be made
with respect to the rights and interest of the Holder to the end that the provisions hereof
(including, without limitation, the provisions for the adjustment of the Purchase Price and of the
number of shares purchasable upon exercise of this Warrant and the provisions relating to the net
issue election) shall thereafter be applicable to any shares of Common Stock deliverable upon the
exercise hereof.

     24. Value. The Company and the Holder agree that the value of this Warrant on the date of
grant is $100.

	 	 	 	 	 	 	 

	 	 	Kior Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

6.

 

Subscription

	 	 	 	 	 

	To:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 

The undersigned hereby subscribes for _________________ shares of Preferred Stock covered by this
Warrant. The certificate(s) for such shares shall be issued in the name of the undersigned or as
otherwise indicated below:

	 	 	 

	 

Signature

	 	 
	 
	 	 
	 

Name for Registration

	 	 
	 
	 	 
	 

Mailing Address

	 	 

1.

 

Net Issue Election Notice

	 	 	 	 	 	 	 	 	 

	To:

	 	 	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 	 	 

The undersigned hereby elects under Section 4 to surrender the right to purchase shares of
Preferred Stock pursuant to this Warrant. The certificate(s) for such shares issuable upon such
net issue election shall be issued in the name of the undersigned or as otherwise indicated below:

	 	 	 

	 

Signature

	 	 
	 
	 	 
	 

Name for Registration

	 	 
	 
	 	 
	 

Mailing Address

	 	 

1.

 

Assignment

For value received _____________________________ hereby sells, assigns and transfers unto
_______________________

 

[Please print or typewrite name and address of Assignee]

 

the within Warrant, and does hereby irrevocably constitute and appoint ________________________ its
attorney to transfer the within Warrant on the books of the within named Company with full power of
substitution on the premises.

	 	 	 	 	 

	Dated:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	Signature	 	 
	 
	 	 	 	 
	 	 	 
	Name for Registration	 	 
	 
	 	 	 	 
	In the Presence of:	 	 
	 
	 	 	 	 
	 	 	 

1.

 

Exhibit d

Notice of Borrowing

__________, ____

Lighthouse Capital Partners VI, L.P.

3555 Alameda de las Pulgas, Suite 200

Menlo Park, CA 94025

Ladies and Gentlemen:

     Reference is made to the Loan and Security Agreement No. 1451 dated as of December 30, 2008
(as it has been and may be amended from time to time, the “Loan Agreement,” initially capitalized
terms used herein as defined therein), between Lighthouse Capital Partners VI, L.P. and
KiOR Inc. (the “Company”)

     The undersigned is the [President/Chief Financial Officer/Treasurer] of the Company, and
hereby irrevocably requests an Advance under the Loan Agreement, and in that connection certifies
as follows:

     1. The amount of the proposed Advance is $_________. The business day of the proposed Advance
is _________.

     2. The Loan Commencement Date for this Advance shall be _________.

     3. As of this date, no Event of Default, or event which with notice or the passage of time
would constitute an Event of Default, has occurred and is continuing, or will result from the
making of the proposed Advance, and the representations and warranties of the Company contained in
Section 5 of the Loan Agreement are true and correct in all material respects.

     4. No event that could reasonably be expected to have a material adverse effect on the ability
of Company to fulfill its obligations under the Loan Agreement has occurred since the date of the
most recent financial statements, submitted to you by the Company.

     5. Company’s statement of the Borrowing Base is true, complete and correct in all
material respects.

     The Company agrees to notify you promptly before the funding of the Advance if any of the
matters to which I have certified above shall not be true and correct in all material respects on
the Funding Date.

	 	 	 	 	 	 	 

	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	KiOR Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

Exhibit e

Incumbency Certificate

     The undersigned, Paul O’Connor, hereby certifies in their capacity as an officer of the
Company, that:

1. He/She is the duly elected and acting Secretary of KiOR Inc., a Delaware corporation
(the “Company”).

2. That on the date hereof, each person listed below holds the office in the Company indicated
opposite his or her name and that the signature appearing thereon is the genuine signature of each
such person:

	 	 	 	 	 
	NAME	 	OFFICE	 	SIGNATURE
	Fred Cannon

	 	President & Chief
Operating Officer
	 	 
	Paul O’Connor

	 	Chief Technology Officer,
Treasurer & Secretary
	 	 
	Andre Ditsch

	 	Director of Strategy
	 	 
	 	 	 	 	 
	 

	 	 
	 	 

3. Attached hereto as Exhibit A is a true and correct copy of the Certificate of Incorporation of
the Company, as amended, as in effect as of the date hereof.

4. Attached hereto as Exhibit B is a true and correct copy of the Bylaws of the Company, as
amended, as in effect as of the date hereof.

5. Attached hereto as Exhibit C is a copy of the resolutions of the Board of Directors of the
Company authorizing and approving the Company’s execution, delivery and performance of a loan
facility with Lighthouse Capital Partners VI, L.P.

     IN WITNESS WHEREOF, the undersigned has executed this Incumbency Certificate on December 30,
2008.

	 	 	 	 	 	 	 

	 	 	KiOR Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Paul O’Connor	 	 
	 

	 	Title:
	 	Secretary	 	 

     I, the President and Chief Operating Officer of the Company, do hereby certify that Paul
O’Connor is the duly qualified, elected and acting Secretary of the Company and that the above
signature is his or her genuine signature.

     IN WITNESS WHEREOF, the undersigned has executed and delivered this Incumbency Certificate on
December 30, 2008.

	 	 	 	 	 	 	 

	 	 	KiOR Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Fred Cannon	 	 
	 

	 	Title:
	 	President and Chief Operating Officer	 	 

 

 

Exhibit f

Officer’s Certificate

     The undersigned, to induce Lighthouse Capital Partners VI, L.P. (“Lender”), to extend
or continue financial accommodations to KiOR Inc., a Delaware corporation (the “Borrower”)
pursuant to the terms of that certain Loan and Security Agreement dated December 30, 2008, (the
"Loan Agreement”), hereby certifies in their capacity as an officer of the Company that on the date
hereof:

	 	1.	 	I am the duly elected and acting _____________ of Borrower.
	 
	 	2.	 	I am a Responsible Officer as that term is defined in the Loan Agreement.
	 
	 	3.	 	The information submitted herewith is in fact what it purports to be.
	 
	 	4.	 	The information delivered herewith is true, correct and complete
	 
	 	5.	 	Borrower is currently able to meet its obligations as they come due.
	 
	 	6.	 	I understand that Lender is relying upon the truthfulness, accuracy and
completeness hereof in connection with the Loan Agreement.
	 
	 	7.	 	I will advise you if it comes to my attention that, as of the date hereof, the
information submitted herewith was not in fact true, correct and complete in all
material respects.

     IN WITNESS WHEREOF, the undersigned has executed this Officer’s Certificate on December 30,
2008.

	 	 	 	 	 	 	 

	 	 	KiOR Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

Exhibit g

Authorization for Automatic Payment

The undersigned KiOR Inc. (“Borrower”) authorizes Lighthouse Capital Partners VI,
L.P. and any and all affiliated funds (collectively, “Lender”) and the bank / financial
institution (“Bank”) named below to initiate variable debit and/or credit entries to Borrower’s
deposit, checking or savings accounts as designated below and to cause funds transfers to an
account of Lender as payment of any and all amounts due under the Loan and Security Agreement
between Borrower and Lender dated December 30, 2008 (the “Loan Agreement”).

1. Lender is hereby authorized to initiate variable debit and/or credit transactions and resulting
funds transfers in Borrower’s designated accounts with respect to amounts due and owing to Lender
by Borrower periodically under the Loan Agreement. Borrower consents to all such debit and/or
credit transactions and resulting funds transfers and hereby authorizes Lender to take all such
actions as may be required by Bank with respect to such transactions. Borrower acknowledges and
agrees that such credit and/or debit entries may be made in amounts due under the Loan Agreement in
order to cause timely payments as required by the terms of the Loan Agreement.

2. Borrower hereby authorizes Lender to release to Bank all information concerning Borrower that
may be necessary or desirable for Bank to investigate or recover any erroneous funds transfers that
may occur.

3. Borrower acknowledges and agrees that all such debit and/or credit transactions and funds
transfers are intended to be made through an Automated Clearing House system and in compliance with
the NACHA Rules and in compliance with Bank’s security procedures.

4. Borrower represents and warrants that the account information set forth below is accurate and
complete and that each of the account(s) set forth below is a business account maintained in
Borrower’s name and for Borrower’s account.

This Consent shall be effective as of December 30, 2008 and shall remain in effect until the Loan
Agreement has been terminated. Any cancellation by Borrower of this consent shall (i) be made in
writing and (ii) delivered to Bank and Lender in such time as to afford Bank and Lender a
reasonable opportunity to act on said cancellation.

	 	 	 	 	 	 	 	 	 

	Bank of America, N.A.
	 	 	 	 	 	 	 	 
	 
	(Name of Borrower’s Bank)
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	12400 I 45 North Freeway

	 	Houston
	 	 TX
	 	 	77060	 
	 
	(Address of Bank)

	 	(City)
	 	(State)
	 	(Zip Code)

	 	 	 	 	 

	Bank Routing Number

	 	111000025
 

(between these symbols ” /:”   ”:/” on bottom left of check)
	 	 

	 	 	 	 	 

	Account Number:

	 	(checking / deposit / savings)
	 	(circle one)
	 

	 	 	 	 

     Copy of a voided check is attached to this form

	 	 	 	 	 	 	 

	Borrower Name:	 	KiOR Inc.	 	 
	Borrower Address:	 	2600 South Shore Blvd, Suite 100

League City, TX 77573	 	 
	 
	 	 	 	 	 	 
	Authorized by:	 	 	 	 
	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

Schedule 1

Disclosure Schedule

Subsidiaries

KiOR BV, a wholly owned subsidiary of Borrower organized under the laws of The Netherlands

Prior Names

[TO BE PROVIDED BY BORROWER — If “None” Indicate such]

Litigation and Administrative Proceedings

[TO BE PROVIDED BY BORROWER — If “None,” so indicate]

Business Premises

[TO BE PROVIDED BY BORROWER — indicate street address and landlord contact information]

	 	 	 	 	 	 	 
	 	 	Each Location Address where Lighthouse	 	Landlord/Property Management
	 	 	Capital Partners has financed assets:	 	Information:
	Current

	 	Contact Name:
	 	 	 	Contact Name:
	Headquarters

	 	Address:
	 	2600 South Shore Blvd,
	 	Company Name:
	(Location 1)

	 	 Suite 100
	 	 	 	Address:
	 

	 	City, State, Zip:
	 	League City, TX 77573
	 	City, State, Zip:
	 

	 	Phone:
	 	 	 	Phone:
	 

	 	Fax:
	 	(281) 334-2832
	 	Fax:
	 
	 	 	 	 	 	 
	Location

	 	Contact Name:
	 	 	 	Contact Name:
	2

	 	Company Name:
	 	KiOR BV
	 	Company Name:
	 

	 	Address:
	 	Hogenbrinkerweg 15
	 	Address:
	 

	 	City, State, Zip:
	 	3871 KM Hoevelaker, The
	 	City, State, Zip:
	 

	 	Netherlands
	 	 	 	Phone:
	 

	 	Phone:
	 	+31 33 254 04 23
	 	Fax:
	 

	 	Fax:
	 	+31 33 254 05 82	 	 
	 
	 	 	 	 	 	 
	Location

	 	Contact Name:
	 	 	 	Contact Name:
	3

	 	Company Name:
	 	 	 	Company Name:
	 

	 	Address:
	 	 	 	Address:
	 

	 	City, State, Zip:
	 	 	 	City, State, Zip:
	 

	 	Phone:
	 	 	 	Phone:
	 

	 	Fax:
	 	 	 	Fax:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}]]