Document:

Exhibit 10.1

AMENDMENT
NO. 2

TO

CREDIT AGREEMENT

 

THIS AMENDMENT NO.
2 TO CREDIT AGREEMENT, dated as of August 7, 2017 (this “Agreement”), is entered into by and between PACIFIC
ETHANOL PEKIN, llc, a limited liability company organized and existing under the laws of Delaware (“Company”),
COMPEER FINANCIAL, PCA, a federally-chartered instrumentality of the United States,
successor by merger to 1st Farm Credit Services, PCA (“Lender”), and CoBank,
ACB, a federally-chartered instrumentality of the United States (“CoBank” or “Agent”).
Capitalized terms not defined herein shall have the meanings set forth in the Existing Credit Agreement.

 

BACKGROUND:

 

WHEREAS,
the Company, Lender and CoBank have entered into that certain Credit Agreement dated as of December 15, 2016 (as amended, restated,
modified or otherwise supplemented from time to time, collectively the “Existing Credit Agreement”), and the
other Loan Documents;

 

WHEREAS,
the Company has requested that, as of the Effective Date, the Existing Credit Agreement be amended as herein provided; and

 

WHEREAS,
CoBank is willing, subject to the terms and conditions hereinafter set forth, to make such amendments;

 

NOW, THEREFORE,
in consideration of the agreements herein contained, the parties hereby agree as follows:

 

 ARTICLE 1         Definitions.

 

1.1              
Certain Definitions. The following terms when used in the Agreement shall have the following meanings:

 

“Agreement” is defined
in the preamble to this Agreement.

 

“CoBank” is defined
in the preamble to this Agreement.

 

“Company” is defined
in the preamble to this Agreement.

 

“Effective Date”
is defined in Article 4.

 

“Existing Credit Agreement”
is defined in the first recital to this Agreement.

 

“First Amended and Restated
Revolving Term Note” is defined in Section 2.2 of this Agreement.

 

“First Amended and Restated
Term Note” is defined in Section 2.1 of this Agreement.

 

    	 	1	 

     

    

 

1.2              
Other Definitions. Unless otherwise defined or the context otherwise requires, terms used herein (including in the
preamble and recitals hereto) have the meanings provided for in the Existing Credit Agreement.

 

ARTICLE
2         Amendments.

 

Effective on (and subject to the occurrence
of) the Effective Date, the Existing Credit Agreement is amended as follows:

 

2.1              
Term Note. The Term Note referenced in Section 2.1(a) of the Existing Credit Agreement, and attached to the Existing
Credit Agreement as Exhibit A, has been amended and restated in its entirety and is in the form attached hereto as Exhibit A,
the terms and provisions of which are incorporated into the Existing Credit Agreement by reference and made a part thereof (the
“First Amended and Restated Term Note”).

 

2.2              
Revolving Term Note. The Revolving Term Note referenced in Section 2.2(b) of the Existing Credit Agreement, and attached
to the Existing Credit Agreement as Exhibit B, has been amended and restated in its entirety and is in the form attached hereto
as Exhibit B, the terms and provisions of which are incorporated into the Existing Credit Agreement by reference and made
a part thereof (the “First Amended and Restated Revolving Term Note”).

 

2.3              
Amendment to Section 3.3 of the Existing Credit Agreement. Section 3.3 of the Existing Credit Agreement is hereby
amended by deleting paragraph (c) in its entirety and substituting the following paragraph (c) in its place:

 

“(c)Lender
and Agent’s Rights. In the case of an event specified in Section 3.3(a) or 3.3(b), Agent shall so notify the Company
thereof, and in the case of an event specified in Section 3.3(b), such notice shall describe the specific circumstances of
such event. Upon such date as shall be specified in such notice (which shall not be earlier than the date such notice is given),
the obligation of Lender to allow the Company to select, convert to or renew a LIBOR Index Option shall be suspended until Agent
shall have later notified the Company of Agent’s determination that the circumstances giving rise to such previous determination
no longer exist. If at any time Agent makes a determination under Section 3.3(a) and the Company has previously notified Agent
of its selection of, conversion to or renewal of a LIBOR Index Option and such Interest Rate Option has not yet gone into effect,
such notification shall be deemed to provide for selection of, conversion to or renewal of the Quoted Rate Option with respect
to such Loans. If Agent notifies the Company of a determination under Section 3.3(b), the Company shall, subject to the Company’s
indemnification Obligations under Section 3.4, as to any Loan of the Company to which a LIBOR Index Option applies, as applicable,
on the date specified in such notice either convert such Loan to the Quoted Rate Option with respect to such Loan or prepay such
Loan in accordance with Section 2.6. Absent due notice from the Company of conversion or prepayment, such Loan shall automatically
be converted to the Quoted Rate Option with respect to such Loan upon such specified date. Notwithstanding any provision in the
Loan Documents to the contrary and solely for purposes of this paragraph, the Quoted Rate Option shall mean a Quoted Rate that
is fixed for a 30 day period and equal to the cost of funds of Agent plus 4.00% per annum.”

 

    	 	2	 

     

    

 

2.4              
Amendment to Section 8.1 of the Existing Credit Agreement. Section 8.1 of the Existing Credit Agreement is hereby
amended by deleting Section 8.1 in its entirety and substituting the following Section 8.1 in its place:

 

“8.1              
Working
Capital. The Company will maintain the Working Capital of the Consolidated Group at not less than: (a) $17,500,000, commencing
on August 31, 2017 and continuing at all times thereafter through December 31, 2017, measured as of the last day of each calendar
month; and (b) $20,000,000, commencing on January 1, 2018 and continuing at all times thereafter, measured as of the last day
of each calendar month.”

 

2.5              
Form of Compliance Certificate. The Compliance Certificate referenced in Section 6.1(c) of the Existing Credit Agreement,
and attached to the Existing Credit Agreement as Exhibit C, has been amended and restated in its entirety and is in the form attached
hereto as Exhibit C.

 

ARTICLE
3         Representations
and Warranties.

 

In order to induce
CoBank to make the amendments provided for in Article 2, the Company hereby (a) represents and warrants that (i) each of the representations
and warranties of the Company contained in the Existing Credit Agreement and in the other Loan Documents are true and correct in
all material respects on and as of the date hereof, except that such representations and warranties (A) that relate solely to an
earlier date shall be true and correct in all material respects as of such earlier date and (B) shall be true and correct in all
respects to the extent they are qualified by a materiality standard and (ii) after giving effect to the Agreement and the Waiver
Letter dated of even date herewith, no Default or Event of Default has occurred and is continuing; and (b) agrees that the incorrectness
in any respect of any representation and warranty contained in the preceding clause (a) shall constitute an immediate Event of
Default. Without limiting the foregoing, the Company hereby (x) ratifies and confirms all of the terms, covenants and conditions
set forth in the Loan Documents and hereby agrees that it remains unconditionally liable to CoBank in accordance with the respective
terms, covenants and conditions set forth in the Loan Documents, and all Collateral in favor of CoBank continues unimpaired and
in full force and effect, and (y) waives all defense, claims, counterclaims, rights of recoupment or set-off against any of its
obligations.

 

ARTICLE
4         Conditions to Effectiveness.

 

This Agreement shall
become effective on such date (the “Effective Date”) when the following conditions have been satisfied:

 

4.1       Representations
and Warranties. The representations and warranties made by the Company pursuant to Article 3 as of the Effective Date shall
be true and correct.

 

4.2      Term
Note. CoBank shall have received a duly executed First Amended and Restated Term Note.

 

4.3      Revolving
Term Note. CoBank shall have received a duly executed First Amended and Restated Revolving Term Note.

 

    	 	3	 

     

    

 

4.4      Other
Requests. CoBank shall have received such other certificates, instruments, documents, agreements, information and reports as
may be requested by CoBank, in form and substance satisfactory to CoBank.

 

4.4      Amendment
Fee. CoBank shall have received a non-refundable amendment fee of $35,000 for the benefit of CoBank.

 

ARTICLE
5      Miscellaneous.

 

5.1     Loan
Document Pursuant to Existing Credit Agreement. This Agreement is a Loan Document executed pursuant to the Existing Credit
Agreement. Except as expressly amended hereby, all of the representations, warranties, terms, covenants and conditions contained
in the Existing Credit Agreement and each other Loan Document shall remain unamended and otherwise unmodified and in full force
and effect.

 

5.2       Limitation
of Amendments.The amendments set forth in Article 2 shall be limited precisely as provide for herein and shall not be deemed
to be a waiver of, amendment of, consent to or modification of any other term or provision of the Existing Credit Agreement or
any term or provision of any other Loan Document or of any transaction or further or future action on the part of the Company which
would require the consent of CoBank under the Existing Credit Agreement or any other Loan Document.

 

5.3      Counterparts;
Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto in different counterparts),
each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement
shall become effective when it shall have been executed by CoBank and when CoBank shall have received counterparts hereof that,
when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature
page of this Agreement by telecopy or email shall be as effective as delivery of a manually executed counterpart of this Agreement.

 

5.4      Incorporation
of Existing Credit Agreement Provisions. The provisions of Article 11 of the Existing Credit Agreement shall apply to this
Agreement, mutatis mutandis.

 

[Signature Pages Follow]

 

    	 	4	 

     

    

 

[SIGNATURE PAGE TO CREDIT AGREEMENT
AMENDMENT]

 

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

 

	 	COMPANY:

 

PACIFIC ETHANOL PEKIN, LLC

 

 

By: /s/ BRYON T. MCGREGOR

Name: Bryon T. McGregor

Title: Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	5	 

     

    

 

[SIGNATURE PAGE TO CREDIT AGREEMENT
AMENDMENT]

 

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

 

	 	LENDER:

 

COMPEER FINANCIAL, PCA

 

 

By: /s/ COREY J. WALDINGER

Name: Corey J. Waldinger

Title: Director, Capital Markets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	6	 

     

    

 

[SIGNATURE PAGE TO CREDIT AGREEMENT
AMENDMENT]

 

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

 

	 	COBANK, ACB

 

 

By: /s/ TOM D. HOUSER

Name: Tom D. Houser

Title: Vice President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	7	 

     

    

 

EXHIBIT A

 

Form of First Amended
and Restated Term Note

 

[see attached]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	A-1	 

     

    

  

FIRST AMENDED AND RESTATED

TERM NOTE

 

	$64,000,000	Greenwood Village, Colorado
	 	August __, 2017

 

FOR VALUE RECEIVED, PACIFIC
ETHANOL PEKIN, LLC, a limited liability company organized and existing under the laws of Delaware (the “Company”),
hereby promises to pay to the order of COMPEER FINANCIAL, PCA, successor by merger
to 1st Farm Credit Services, PCA (which, together with its endorsees, successors, and assigns, is referred to herein
as the “Bank”), at the office of CoBank, ACB (the “Agent”), located at 6340 S. Fiddlers Green
Circle, Greenwood Village, Colorado 80111 (or at such other place of payment designated by the holder hereof to the Company), the
principal sum of SIXTY-FOUR MILLION DOLLARS ($64,000,000) (such amount, the “Term
Loan Amount”) (each loan and any one or more portions of any loan being referred to herein as a “Loan”),
and to pay interest, as set forth below, from the date hereof until Payment in Full on the principal amount remaining from time
to time outstanding at the rates set forth below, in lawful money of the United States of America in immediately available funds,
payable with interest thereon, as set forth below, without presentment, demand, protest or notice of any kind, all of which are
hereby expressly waived by the Company, and without set-off, counterclaim or other deduction of any nature. This First Amended
and Restated Term Note (as amended, restated, modified, supplemented, replaced, refinanced or renewed from time to time, this “Note”)
is given pursuant to that Credit Agreement, dated as of December 15, 2016, between the Company, the Bank and the Agent (as amended,
restated, modified or supplemented from time to time, the “Agreement”). Capitalized terms not otherwise defined
in this Note shall have the respective meanings ascribed to them by the Agreement, including Annex A thereto, and the Rules of
Construction set forth in such Annex A shall apply to this Note. This Note amends and restates, but does not constitute payment
of the indebtedness, evidenced by, the Term Note, dated as of December 15, 2016, by the Company to the order of the Bank in the
original principal amount of the Term Loan Amount.

 

1.                  
Borrowing Availability. The Term Loan Amount was advanced on or before January 31, 2017 (the “Term Loan Availability
Expiration Date”), and no additional advances shall be permitted under this Note.

 

2.                  
Purpose of Term Loan. The proceeds of the Term Loan shall be used to refinance the existing indebtedness of the Company,
and the Company shall use the Term Loan for no other purpose.

 

3.                  
Principal Payments. As of the date hereof, the remaining principal balance of the Loan is $60,500,000. The remaining
principal hereunder shall be due and payable in sixteen (16) equal consecutive quarterly installments of $3,500,000 each, beginning
on August 20, 2017, and continuing on the twentieth (20th) day of each November, February, May and August thereafter until August
20, 2021 (the “Maturity Date”), at which time the entire remaining indebtedness evidenced by this Note, if not
sooner paid in accordance with the terms of the Agreement and this Note, shall be due and payable.

 

4.                  
Interest Payments. The Company hereby further promises to pay to the order of the Agent, at the times and on the dates
provided in the Agreement, interest on the unpaid principal amount of the Loans from the date hereof until the Payment in Full
of all of the Loans at the rate or rates comprising the Interest Rate Option(s) (defined below), which the Company shall select
in accordance with the terms hereof to apply to each Loan, it being understood that, subject to the provisions of this Note and
the Agreement, the Company may select different Interest Rate Options to apply to the Loans and may convert to or renew one or
more Interest Rate Options with respect to any one or more of the Loans; provided that in the event the Company shall fail to timely
select an Interest Rate Option to apply to any one or more Loans, such Loans shall bear interest at the LIBOR Index Option, and
provided further that if an Event of Default or Default exists and is continuing, the Company may not request, convert to, or renew
the Quoted Rate Option for any Loans, and the Agent may demand that all existing Loans bearing interest under the Quoted Rate Option
shall be converted immediately to the LIBOR Index Option, and the Company shall be obligated to pay the Agent any indemnity, costs,
and expenses arising in connection with such conversion.

 

    	 	A-2	 

     

    

 

5.                  
Interest Rate Options. The Company shall have the right to select from the following interest rate options with respect
to the Loans (each, an “Interest Rate Option”): (a) upon the selection of a LIBOR Index Option, the LIBOR Index
Rate with a LIBOR Index Spread of 4.00% per annum (the “LIBOR Index Spread”) or (b) upon the selection of a
Quoted Rate Option, the Quoted Rate with such Quoted Rate to remain fixed for such period as is confirmed to the Company by the
Agent.

 

6.                  
Loan Requests. Subject to the terms and conditions of this Note and the Agreement, the Company may prior to the Term
Loan Availability Expiration Date request the Bank to make the Term Loan and the Company may from time to time prior to the Maturity
Date request the Agent to renew or convert the Interest Rate Option applicable to an existing Loan, by delivering, in accordance
with the notice provisions of the Agreement, to the Agent not later than 12:00 noon (Denver time),

 

(a) the same
Business Day as the proposed Business Day of borrowing with respect to a Loan to which the LIBOR Index Option will apply, and (b)
the same Business Day as the proposed Business Day of borrowing with respect to a Loan to which the Quoted Rate Option will apply
or the last day of the preceding Quoted Rate period with respect to the conversion to or renewal of the Quoted Rate Option for
a Loan,

 

a duly completed request
therefor substantially in the form of Exhibit A hereto (or a request made by CoLink or by telephone, but subject to
the same deadline and containing substantially the same information, and in the case of a telephone request, immediately confirmed
in writing substantially in the form of Exhibit A and delivered in accordance with the terms hereof) by physical delivery,
facsimile, or electronic mail (each such request, whether telephonic or written and regardless how delivered, a “Loan
Request”), it being understood that the Agent may rely on the authority of any individual making such a telephonic request
without the necessity of receipt of such written confirmation. Each Loan Request shall be irrevocable and shall specify the amount
of the proposed Loan, the Interest Rate Option to be applicable thereto, and, if applicable, the Quoted Rate period therefor (each
Quoted Rate applicable to a Loan shall remain fixed for such period as is confirmed to the Company by the Agent), which amounts
shall be in integral multiples of $500,000 for each Loan under the Quoted Rate Option. All notices and requests hereunder shall
be given, and all borrowings and all conversions or renewals of Interest Rate Options shall occur, only on Business Days.

 

7.                  
Loans; Limitations. Under the Quoted Rate Option, a Quoted Rate may be fixed on such balance and for such period, and
shall be subject to such rules and requirements as may be established by the Agent in its sole discretion in each instance, provided
that: (1) the minimum fixed period hereunder shall be 365 days; (2) at no time shall more than 10 Loans to which the
Quoted Rate Option applies be outstanding at any one time; and (3) amounts may be fixed in increments of $500,000 or integral multiples
thereof. The Agent’s determination of the Quoted Rate shall be conclusive and binding upon the Company absent manifest error.

 

8.                  
Incomplete Loan Requests; Consequences. If no Interest Rate Option is timely selected when a Loan is requested or with
respect to the end of any applicable Quoted Rate period for a Loan or prior to a requested conversion to a Quoted Rate Option for
a Loan previously subject to a different Interest Rate Option, the Company shall be deemed to have selected a LIBOR Index Option
for such Loan. In no event shall the interest rate(s) applicable to principal outstanding hereunder exceed the maximum rate of
interest allowed by applicable Law, as amended from time to time; any payment of interest or in the nature of interest in excess
of such limitation shall be credited as a payment of principal unless the Company requests the return of such amount.

 

    	 	A-3	 

     

    

 

9.                  
Miscellaneous.

 

(a)               
This Note is the Term Note referred to in, and is entitled to the benefits of, the Agreement and the other Loan Documents
referred to therein. Reference is made to the Agreement for a description of the relative rights and obligations of the Company,
the Bank and the Agent, including rights and obligations of prepayment, collateral securing payment hereof, Events of Default,
and rights of acceleration of maturity upon the occurrence of an Event of Default.

 

(b)               
No delay on the part of the holder hereof in exercising any of its options, powers, or rights, or partial or single exercise
thereof, shall constitute a waiver thereof. The options, powers, and rights specified herein of the holder hereof are in addition
to those otherwise created or permitted by Law, the Agreement, and the other Loan Documents. There are no claims, set-offs, or
deductions of any nature as of the date hereof that could be made or asserted by the Company against the Bank and / or the Agent
or against any amount due or to become due under this Note; all such claims, set-offs, or deductions are hereby waived by the Company.

 

(c)               
Delivery of an executed signature page of this Note by telecopy or email (as a .pdf attachment thereto or otherwise)
shall be as effective as delivery of a manually executed counterpart of this Note, but shall in any event be promptly followed
by delivery of the original manually executed signature page (provided, however, that the failure to do so shall in no event adversely
affect the rights of the Bank and / or the Agent hereunder whatsoever). THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF COLORADO, WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES.

 

[signature
page follows]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	A-4	 

     

    

 

IN WITNESS WHEREOF
and intending to be legally bound hereby, the Company has executed this Note as of the date hereof by its duly Authorized Officer.

 

 

	 	pacific ethanol pekin, LLC
	 	 
	 	 
	 	By:	
	 	Name:	Bryon T. McGregor
	 	Title:	Chief Financial Officer

 

 

 

 

 

 

 

 

 

AGREED AND ACCEPTED:

 

COBANK, ACB

 

 

By: ___________________________

Name: Tom D. Houser

Title: Vice President

 

 

 

 

 

[First Amended and Restated Term Note Signature
Page]

    	 	A-5	 

     

    

 

EXHIBIT A

 

FORM OF TERM LOAN REQUEST

 

[_____________], 20[__]

 

To: CoBank, ACB (the “Agent”)

 

From: Pacific Ethanol Pekin, LLC (the
“Company”)

 

	Re:	Credit Agreement (as amended, restated, modified or supplemented
from time to time, the “Credit Agreement”), dated as of December 15, 2016, between the Company, Compeer Financial,
PCA, successor by merger to 1st Farm Credit Services, PCA, as Lender, and the Agent

 

Pursuant to Section 2.1 of the Credit Agreement,
the Company hereby gives notice of its desire to receive a Term Loan in accordance with the terms set forth below (all capitalized
terms used herein and not defined herein shall have the meaning given them in the Credit Agreement):

 

(a) The Term Loan requested pursuant to this
Loan Request shall be made on [_________], 20[__].

 

(b) The aggregate principal amount of the Term
Loan requested hereunder is [_____________] Dollars ($[_________]).

 

(c) The Term Loan requested hereunder shall initially bear interest
at the [select one]:

 

o LIBOR Index Option; or

 

o Quoted Rate Option.

 

 

 

	 	PACIFIC ETHANOL PEKIN, LLC
	 	 
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

 

 

    	 	A-6	 

     

    

 

EXHIBIT B

 

Form of First Amended and Restated Revolving Term Note

 

[see attached]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	B-1	 

     

    

 

FIRST AMENDED AND RESTATED

REVOLVING TERM NOTE

 

	$32,000,000	Greenwood Village, Colorado
	 	August __, 2017

 

FOR VALUE RECEIVED,
PACIFIC ETHANOL PEKIN, LLC, a limited liability company organized and existing under
the laws of Delaware (the “Company”), hereby promises to pay to the order of COMPEER
FINANCIAL, PCA, successor by merger to 1st Farm Credit Services, PCA (which, together with its endorsees, successors,
and assigns, is referred to herein as the “Bank”), at the office of CoBank, ACB (the “Agent”)
located at 6340 S. Fiddlers Green Circle, Greenwood Village, Colorado 80111 (or at such other place of payment designated by the
holder hereof to the Company), the lesser of (i) the principal sum of thirty-TWO MILLION
DOLLARS ($32,000,000) as reduced on the dates set forth in Section 1 below (as so reduced, the “Revolving Term
Commitment”), or (ii) the aggregate unpaid principal balance of all loans made under the Revolving Term Commitment by
the Bank to or for the benefit of the Company (each loan and any one or more portions of any loan being referred to herein as a
“Loan”) pursuant to that Credit Agreement, dated as of December 15, 2016, between the Company, the Bank and
the Agent (as amended, restated, modified or supplemented from time to time, the “Agreement”), in lawful money
of the United States of America in immediately available funds, payable together with interest thereon, as set forth below, without
presentment, demand, protest or notice of any kind, all of which are hereby expressly waived by the Company, and without set-off,
counterclaim or other deduction of any nature at the earlier of February 1, 2022 (the “Revolving Term Facility Expiration
Date”), or as otherwise set forth below or in the Agreement. Capitalized terms not otherwise defined in this First Amended
and Restated Revolving Term Note (as amended, restated, modified, supplemented, replaced, refinanced or renewed from time to time,
this “Note”) shall have the respective meanings ascribed to them by the Agreement, including Annex A thereto,
and the Rules of Construction set forth in such Annex A shall apply to this Note. This Note amends and restates, but does not constitute
payment of the indebtedness, evidenced by, the Revolving Term Note, dated as of December 15, 2016, by the Company to the order
of the Bank.

 

1.                  
Commitment Reductions. The Company shall have the right, in its sole discretion, to permanently reduce the Revolving
Term Commitment by giving the Agent ten (10) days prior written notice; provided that no Event of Default or Default has occurred
or would result therefrom. Any such permanent reduction by the Company shall be made in increments of $500,000.

 

2.                  
Principal Payments and Prepayments. Payments and prepayments of principal shall be due and payable as set forth in the
Agreement and this Note. The entire remaining indebtedness evidenced by this Note, if not sooner paid in accordance with the terms
of the Agreement or this Note, shall be due and payable on the Revolving Term Facility Expiration Date. If at any time, the aggregate
principal amount of Loans outstanding exceeds the Revolving Term Commitment at such time, the Company shall immediately notify
the Agent and shall immediately prepay the principal amount of the outstanding Loans in an amount sufficient to eliminate such
excess.

 

3.                  
Purpose of Revolving Term Facility. The proceeds of the Revolving Term Facility shall be used to refinance the existing
indebtedness of the Company and provide Working Capital for the Company, and the Company shall use the Loans for no other purpose.

 

4.                  
Unused Commitment Fee. Accruing from the date hereof until the Revolving Term Facility Expiration Date, the Company
agrees to pay to the Agent a nonrefundable commitment fee (the “Unused Commitment Fee”) equal to 0.75% per annum
(computed on the basis of a year of 360 days for the actual number of days elapsed) multiplied by the average daily positive difference
between the amount of (i) the Revolving Term Commitment minus (ii) the aggregate principal amount of all Loans
then outstanding. All Unused Commitment Fees shall accrue to the first day of each month and be payable monthly in arrears on the
20th day of each month hereafter and on the Revolving Term Facility Expiration Date.

 

    	 	B-2	 

     

    

 

5.                  
Interest Payments. The Company hereby further promises to pay to the order of the Agent, at the times and on the dates
provided in the Agreement, interest on the unpaid principal amount of the Loans from the date hereof until the Payment in Full
of all of the Loans at the rate or rates comprising the Interest Rate Option(s) (defined below), which the Company shall select
in accordance with the terms hereof to apply to each Loan, it being understood that, subject to the provisions of this Note and
the Agreement, the Company may select different Interest Rate Options to apply to the Loans and may convert to or renew one or
more Interest Rate Options with respect to any one or more of the Loans; provided that in the event the Company shall fail to timely
select an Interest Rate Option to apply to any one or more Loans, such Loans shall bear interest at the LIBOR Index Option, and
provided further that if an Event of Default or Default exists and is continuing, the Company may not request, convert to, or renew
the Quoted Rate Option for any Loans, and the Agent may demand that all existing Loans bearing interest under the Quoted Rate Option
shall be converted immediately to the LIBOR Index Option, and the Company shall be obligated to pay the Agent any indemnity, costs,
and expenses arising in connection with such conversion.

 

6.                  
Interest Rate Options. The Company shall have the right to select from the following interest rate options with respect
to the Loans (each, an “Interest Rate Option”): (a) upon the selection of a LIBOR Index Option, the LIBOR Index
Rate with a LIBOR Index Spread of 4.00% per annum (the “LIBOR Index Spread”) or (b) upon the selection of a
Quoted Rate Option, the Quoted Rate with such Quoted Rate to remain fixed for such period as is confirmed to the Company by the
Agent.

 

7.                  
Loans; Limitations. Under the Quoted Rate Option, a Quoted Rate may be fixed on such balance and for such period, and
shall be subject to such rules and requirements as may be established by the Agent in its sole discretion in each instance, provided
that: (1) the minimum fixed period hereunder shall be 365 days; (2) at no time shall more than 10 Loans to which the
Quoted Rate Option applies be outstanding at any one time; and (3) amounts may be fixed in increments of $500,000 or integral multiples
thereof. The Agent’s determination of the Quoted Rate shall be conclusive and binding upon the Company absent manifest error.

 

8.                  
Loan Requests. Subject to the terms and conditions of this Note and the Agreement, the Company may prior to the Revolving
Term Facility Expiration Date request the Bank to make Loans and the Company may from time to time prior to the Revolving Term
Facility Expiration Date request the Agent to renew or convert the Interest Rate Option applicable to an existing Loan, by delivering,
in accordance with the notice provisions of the Agreement, to the Agent not later than 12:00 noon (Denver time),

 

(a) the same
Business Day as the proposed Business Day of borrowing with respect to a Loan to which the LIBOR Index Option will apply, and (b)
the same Business Day as the proposed Business Day of borrowing with respect to a Loan to which the Quoted Rate Option will apply
or the last day of the preceding Quoted Rate period with respect to the conversion to or renewal of the Quoted Rate Option for
a Loan,

 

a duly completed request
therefor substantially in the form of Exhibit A hereto (or a request made by CoLink or by telephone, but subject to
the same deadline and containing substantially the same information, and in the case of a telephone request, immediately confirmed
in writing substantially in the form of Exhibit A and delivered in accordance with the terms hereof) by physical delivery,
facsimile, or electronic mail (each such request, whether telephonic or written and regardless how delivered, a “Loan
Request”), it being understood that the Agent may rely on the authority of any individual making such a telephonic request
without the necessity of receipt of such written confirmation. Each Loan Request shall be irrevocable and shall specify the amount
of the proposed Loan, the Interest Rate Option to be applicable thereto, and, if applicable, the Quoted Rate period therefor (each
Quoted Rate applicable to a Loan shall remain fixed for such period as is confirmed to the Company by the Agent), which amounts
shall be in integral multiples of $500,000 for each Loan under the Quoted Rate Option. All notices and requests hereunder shall
be given, and all borrowings and all conversions or renewals of Interest Rate Options shall occur, only on Business Days.

 

    	 	B-3	 

     

    

 

9.                  
Incomplete Loan Requests; Consequences. If no Interest Rate Option is timely selected when a Loan is requested or with
respect to the end of any applicable Quoted Rate period for a Loan or prior to a requested conversion to a Quoted Rate Option for
a Loan previously subject to a different Interest Rate Option, the Company shall be deemed to have selected a LIBOR Index Option
for such Loan. In no event shall the interest rate(s) applicable to principal outstanding hereunder exceed the maximum rate of
interest allowed by applicable Law, as amended from time to time; any payment of interest or in the nature of interest in excess
of such limitation shall be credited as a payment of principal unless the Company requests the return of such amount.

 

10.              
Miscellaneous.

 

(a)               
This Note is the Revolving Term Note referred to in, and is entitled to the benefits of, the Agreement and the other Loan
Documents referred to therein. Reference is made to the Agreement for a description of the relative rights and obligations of the
Company, the Bank and the Agent, including rights and obligations of prepayment, collateral securing payment hereof, Events of
Default, and rights of acceleration of maturity upon the occurrence of an Event of Default.

 

(b)               
No delay on the part of the holder hereof in exercising any of its options, powers, or rights, or partial or single exercise
thereof, shall constitute a waiver thereof. The options, powers, and rights specified herein of the holder hereof are in addition
to those otherwise created or permitted by Law, the Agreement, and the other Loan Documents. There are no claims, set-offs, or
deductions of any nature as of the date hereof that could be made or asserted by the Company against the Bank and / or the Agent
or against any amount due or to become due under this Note; all such claims, set-offs, or deductions are hereby waived by the Company.

 

(c)               
Delivery of an executed signature page of this Note by telecopy or email (as a .pdf attachment thereto or otherwise)
shall be as effective as delivery of a manually executed counterpart of this Note, but shall in any event be promptly followed
by delivery of the original manually executed signature page (provided, however, that the failure to do so shall in no event adversely
affect the rights of the Bank and / or the Agent hereunder whatsoever). THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF COLORADO, WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES.

 

[signature
page follows]

 

    	 	B-4	 

     

    

 

IN WITNESS WHEREOF
and intending to be legally bound hereby, the Company has executed this Note as of the date hereof by its duly Authorized Officer.

 

	 	pacific ethanol pekin, LLC
	 	 
	 	 
	 	By:	
	 	Name:	Bryon T. McGregor
	 	Title:	Chief Financial Officer

 

 

 

 

 

AGREED AND ACCEPTED:

 

COBANK, ACB

 

 

By: ___________________________

Name: Tom D. Houser

Title: Vice President

 

 

 

 

 

 

[First Amended and Restated Revolving Term
Note Signature Page]

    	 	B-5	 

     

    

 

EXHIBIT A

 

FORM OF REVOLVING TERM LOAN REQUEST

 

[_____________], 20[__]

 

To: CoBank, ACB (the “Agent”)

 

From: Pacific Ethanol Pekin, LLC
(the “Company”)

 

	Re:	Credit Agreement (as amended, restated, modified or supplemented
from time to time, the “Credit Agreement”), dated as of December 15, 2016, between the Company, Compeer Financial,
PCA, successor by merger to 1st Farm Credit Services, PCA, as Lender, and the Agent

 

Pursuant to Section 2.2(a) of the Credit Agreement,
the Company hereby gives notice of its desire to receive a Revolving Term Loan in accordance with the terms set forth below (all
capitalized terms used herein and not defined herein shall have the meaning given them in the Credit Agreement):

 

(a) The Revolving
Term Loan requested pursuant to this Revolving Term Loan Request shall be made on [________], 20[__].

 

(b) The aggregate
principal amount of the Revolving Term Loan requested hereunder is [_____________] Dollars ($[_________]).

 

(c) The Revolving Term Loan requested hereunder shall initially
bear interest at the [select one]:

 

o LIBOR Index Option; or

 

o Quoted Rate Option.

 

 

 

	 	PACIFIC ETHANOL PEKIN, LLC
	 	 
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

 

 

    	 	B-6	 

     

    

 

EXHIBIT C

Form of Compliance Certificate

 

[see attached]

 

 

 

 

    	 	C-1Blueprint

 

Exhibit 10.1

 

LICENSE
AGREEMENT

 

THIS
LICENSE AGREEMENT (the “Agreement”) dated as of
December 31, 2014 (the “Effective Date”), is entered
into between ID4 Pharma, LLC (“ID4”), a having a place
of business at 1654 Settlers Drive, Sewickley, PA 15143, and Oxis
Biotech, Inc., a Delaware corporation (“Company”),
having a place of business at 1402
North Beverly Drive, Beverly Hills, CA 90210 .

 

WHEREAS, ID4 owns
or has rights in the Technology (as defined below).

 

WHEREAS, Company
desires to obtain an exclusive license under ID4’s rights in
the Technology on the terms and conditions set forth
below.

 

WHEREAS, Xiangqun
Xie, Ph.D. and Company have entered into a Consulting Agreement
dated December 31, 2014 (attached hereto as Schedule
C).

 

WHEREAS, Xiangqun
Xie, Ph.D. and Company have entered into a Confidentiality
Agreement dated December 31, 2014 (attached hereto as Schedule
D).

 

NOW,
THEREFORE, in consideration of the foregoing premises and the
mutual covenants herein contained, the parties hereby agree as
follows:

 

1. DEFINITIONS

 

For
purposes of this Agreement, the terms defined in this
Section 1 shall have the respective meanings set forth
below:

 

1.1 “Affiliate” shall mean,
with respect to any Person, any other Person which directly or
indirectly controls, is controlled by, or is under common control
with, such Person. A Person shall be regarded as in control of
another Person if it owns, or directly or indirectly controls, at
least fifty percent (50%) of the voting stock or other ownership
interest of the other Person, or if it directly or indirectly
possesses the power to direct or cause the direction of the
management and policies of the other Person by any means
whatsoever.

 

1.2 “Competent Authority(ies)”
or “Competent
Regulatory Authority(ies)” shall mean, collectively,
(a) the governmental entities in each country or supranational
organization that is responsible for the regulation of any Product
intended for use in the Field or the establishment, maintenance
and/or protection of rights related to the Licensed IP Rights
(including the FDA, the EMEA and the MHLW), or (b) any other
applicable regulatory or administrative agency in any country or
supranational organization that is comparable to, or a counterpart
of, the foregoing.

 

1.3 “EMEA” shall mean the
European Agency for the Evaluation of Medicinal Products of the
European Union, or the successor thereto.

 

1.4 “FDA” shall mean the Food
and Drug Administration of the United States, or the successor
thereto.

 

1.5 “Field” shall mean
compounds and methods for detection, diagnosis, prognosis,
monitoring or predisposition testing of any disease, state or
condition in humans or other animals..

 

1.6  “First
Commercial Sale” shall mean, with respect to any
Product, the first sale of such Product after all applicable
marketing and pricing approvals (if any) have been granted by the
applicable governing health authority of such country.

 

1.7 “Licensed IP Rights” shall
mean, collectively, the Licensed Patent Rights and the Licensed
Know-How Rights.

 

1.8 “Licensed Know-How Rights”
shall mean all trade secret and other know-how rights in and to all
data, information, compositions and other technology (including,
but not limited to, formulae, procedures, protocols, techniques and
results of experimentation and testing) which are necessary or
useful for Company to make, use, develop, sell or seek regulatory
approval to market a composition, or to practice any method or
process, at any time claimed or disclosed in any issued patent or
pending patent application within the Licensed Patent Rights or
which otherwise relates to the Technology.

 

 

1

 

 

1.9 “Licensed Patent Rights”
shall mean (a) the patents and patent applications listed on
Schedule A hereto, (b) all patents and patent applications in
any country of the world that claim or cover the Technology in
which ID4 heretofore or hereafter has an ownership or
(sub)licensable interest, (c) all divisions, continuations,
continuations-in-part, that claim priority to, or common priority
with, the patent applications listed in clauses (a) - (b) above or
the patent applications that resulted in the patents described in
clauses (a) - (b) above, and (d) all patents that have issued
or in the future issue from any of the foregoing patent
applications, including utility, model and design patents and
certificates of invention, together with any reissues, renewals,
extensions or additions thereto.

 

1.10 “NDA”
shall mean a New Drug Application, or similar application for
marketing approval of a Product for use in the Field submitted to
the FDA, or its foreign equivalent.

 

1.11 “Net
Sales” shall mean, with respect to any Product, the
gross sales price of such Product invoiced by Company or its
Affiliate to customers who are not Affiliates (or are Affiliates
but are the end users of such Product) less, to the extent actually
paid or accrued by Company or its Affiliate (as applicable),
(a) credits, allowances, discounts and rebates to, and
chargebacks from the account of, such customers for nonconforming,
damaged, out-dated and returned Product; (b) freight and
insurance costs incurred by Company or its Affiliate (as
applicable) in transporting such Product to such customers;
(c) cash, quantity and trade discounts, rebates and other
price reductions for such Product given to such customers under
price reduction programs; (d) sales, use, value-added and
other direct taxes incurred on the sale of such Product to such
customers; (e) customs duties, tariffs, surcharges and other
governmental charges incurred in exporting or importing such
Product to such customers; (f) sales commissions incurred on
the sale of such Product to such customers; and (g) an
allowance for uncollectible or bad debts determined in accordance
with generally accepted accounting principles.

 

1.12 “Net
Sublicensing Revenues” shall mean, with respect to any
Product, the aggregate cash consideration received by Company or
its Affiliates in consideration for the sublicense under the
Licensed Patent Rights or Licensed Know-How Rights by Company or
its Affiliates to a Third Party sublicensee with respect to such
Product (including royalties received by Company or its Affiliates
based on sales of such Product by such sublicensee, but excluding
amounts received to reimburse Company’ or its
Affiliates’ cost to perform research, development or similar
services conducted for such Product after signing the agreement
with the Third Party, in reimbursement of patent or other
out-of-pocket expenses relating to such Product, or in
consideration for the purchase of any debt or securities of Company
or its Affiliates).

 

1.13 “Person”
shall mean an individual, corporation, partnership, limited
liability company, trust, business trust, association, joint stock
company, joint venture, pool, syndicate, sole proprietorship,
unincorporated organization, governmental authority or any other
form of entity not specifically listed herein.

 

1.14 “Phase I
Clinical Trial” shall mean a human clinical trial that
is intended to initially evaluate the safety and/or pharmacological
effect of a Product in subjects or that would otherwise satisfy
requirements of 21 C.F.R. 312.21(a), or its foreign
equivalent.

 

1.15 “Phase II
Clinical Trial” shall mean a human clinical trial in
any country that is intended to initially evaluate the
effectiveness of a Product for a particular indication or
indications in patients with the disease or indication under study
or would otherwise satisfy requirements of
21 CFR 312.21(b), or its foreign equivalent.

 

1.16 “Phase IIa
Clinical Trial” shall mean a Phase II Clinical
Trial that is solely intended to make a preliminary determination
of the effectiveness of a Product for a particular indication or
indications in patients with the disease or indication under
study.

 

1.17 “Phase IIb
Clinical Trial” shall mean a Phase II Clinical
Trial, other than one that is solely intended to make a preliminary
determination of the effectiveness of a Product for a particular
indication or indications in patients with the disease or
indication under study.

 

1.18 “Phase III
Clinical Trial” shall mean a human clinical trial in
any country, the results of which could be used to establish safety
and efficacy of a Product as a basis for an NDA or would otherwise
satisfy requirements of 21 CFR 312.21(c), or its foreign
equivalent.

 

1.19 “Product(s)”
shall mean any product for use in the Field that if made, used,
sold, offered for sale or imported absent the license granted
hereunder would infringe a Valid Claim, or that otherwise uses or
incorporates the Licensed Know-How Rights.

 

1.20 “Registration(s)”
shall mean any and all permits, licenses, authorizations,
registrations or regulatory approvals (including NDAs) required
and/or granted by any Competent Authority as a prerequisite to the
development, manufacturing, packaging, marketing and selling of any
product.

 

1.21 “Royalty
Term” shall mean, with respect to each Product in each
country, the term for which a Valid Claim remains in effect and
would be infringed but for the license granted by this Agreement,
by the use, offer for sale, sale or import of such Product in such
country.

 

1.22 “Technology”
shall mean compounds and uses for treating p62 mediated diseases as
described in the Licensed IP Rights.

 

 

2

 

 

1.23 “Territory”
shall mean worldwide.

 

1.24 “Third
Party” shall mean any Person other than ID4, Company
and their respective Affiliates.

 

1.25 “Valid
Claim” shall mean a claim of an issued and unexpired
patent included within the Licensed Patent Rights, which has not
been held permanently revoked, unenforceable or invalid by a
decision of a court or other governmental agency of competent
jurisdiction, unappealable or unappealed within the time allowed
for appeal, and which has not been admitted to be invalid or
unenforceable through reissue or disclaimer or
otherwise.

 

2. REPRESENTATIONS
AND WARRANTIES

 

2.1 Mutual Representations and
Warranties. Each party hereby represents and warrants to the
other party as follows:

 

2.1.1 Such
party is an individual or corporation duly organized, validly
existing and in good standing under the laws of the state in which
it is incorporated.

 

2.1.2 Such
party (a) has the power and authority and the legal right to
enter into this Agreement and to perform its obligations hereunder,
and (b) has taken all necessary action on its part to
authorize the execution and delivery of this Agreement and the
performance of its obligations hereunder. This Agreement has been
duly executed and delivered on behalf of such party, and
constitutes a legal, valid, binding obligation, enforceable against
such party in accordance with its terms.

 

2.1.3 All
necessary consents, approvals and authorizations of all
governmental authorities and other Persons required to be obtained
by such party in connection with this Agreement have been
obtained.

 

2.1.4 The
execution and delivery of this Agreement and the performance of
such party’s obligations hereunder (a) do not conflict with
or violate any requirement of applicable laws or regulations, and
(b) do not conflict with, or constitute a default under, any
contractual obligation of it.

 

2.2 ID4 Representations and
Warranties. ID4 hereby represents and warrants to Company as
follows:

 

2.2.1 ID4
(a) is the owner or exclusive licensee of the Licensed IP
Rights and has the sole right to execute this Agreement on behalf
of the other co-owner/inventors as evidenced by Schedule B, and has
not granted to any Third Party any license or other interest in the
Licensed IP Rights, (b) is not aware of any Third Party
patent, patent application or other intellectual property rights
that would be infringed (i) by practicing any process or
method or by making, using or selling any composition which is
claimed or disclosed in the Licensed Patent Rights or which
constitutes Licensed Know-How Rights, or (ii) by making, using
or selling Products, and (c) is not aware of any infringement
or misappropriation by a Third Party of the Licensed IP
Rights.

 

3. LICENSE
GRANT

 

3.1 Licensed IP Rights. ID4 hereby
grants to Company an exclusive license (with the right to grant
sublicenses) under the Licensed IP Rights to conduct research and
to develop, make, have made, use, offer for sale, sell and import
Products in the Territory for use in the Field.

 

 

3

 

 

3.2 Sublicenses. ID4 grants to
Company the right to grant sublicenses to third parties, provided
that (i) the Sublicensee agrees to abide by all the terms and
provisions of this Agreement; (ii) Company remains fully liable for
the performance of its and its Sublicensee’s obligations
hereunder; and (iii) Company notifies ID4 of any grant of a
sublicense and provide to ID4 upon ID4 request a copy of any
sublicense agreement.

 

3.3 Availability of the Licensed IP
Rights. ID4 shall provide Company with a copy of all
information available to ID4 relating to the Licensed IP Rights,
Products or Technology, including without limitation:
(a) regulatory submissions, (b) communications with the
Competent Authorities (including the minutes of any meetings),
(c) trial master files, including case report forms,
(d) listings and tables of results from the clinical trials,
(e) treatment-related serious adverse event reports from the
clinical trials, (f) storage of and access permission to any
retained samples of materials used in clinical trials, and
(g) access to CROs involved in the clinical
trials.

 

3.4 Registrations. ID4 acknowledges
and agrees that Company shall own all Registrations for Products
for use in the Field in each country in the Territory.
Additionally, ID4 acknowledges and agrees that Company shall have
the right to conduct pre-clinical and clinical development
activities outside of the Territory. ID4 hereby grants to Company a
free-of-charge right to reference and use and have full access to
all other Registrations and all other regulatory documents that
relate to the Licensed IP Rights, Products or Technology, including
INDs, BLAs, NDAs and DMFs (whether as an independent document or as
part of any NDA, and all chemistry, manufacturing and controls
information), and any supplements, amendments or updates to the
foregoing (for the purposes of this Section, the “Right of
Reference”). Company shall have the right to (sub)license the
Right of Reference to its sublicensees and Affiliates.

 

3.5 Access to Manufacturers. ID4
shall use his commercially reasonable efforts to provide access to
Company to any suppliers of the API form of any Product for use in
the Field on terms and conditions no less favorable than those
terms and conditions between ID4 and such supplier.

 

4. FINANCIAL
CONSIDERATIONS

 

4.1 Royalties.

 

4.1.1 Royalty Rate. During the
applicable Royalty Term for a Product, subject to the terms and
conditions of this Agreement, Company shall pay to ID4 royalties,
with respect to each Product, equal to (a) THREE percent (3%)
of Net Sales of such Product by Company and its Affiliates, and
(b) TWENTY-FIVE percent (25%) of Net Sublicensing
Revenues for such Product. Only one royalty shall be owing for a
Product regardless of how many Valid Claims cover such Product for
the life of the last to expire Patent in a country having Valid
Claim.

 

4.1.2 Third Party Royalties. If
Company, its Affiliates or sublicensees is required to pay
royalties to any Third Party in order to exercise its rights
hereunder to make, have made, use, sell, offer to sale or import
any Product, then Company shall have the right to credit one
percent (1%) of such Third Party royalty payments against the
royalties owing to ID4 under Section 4.1.1 above with respect
to sales of such Product in such country; provided, however, that
Company shall not reduce the amount of the royalties paid to ID4
under Section 4.1.1 above by reason of this
Section 4.1.2, with respect to sales of such Product in such
country, to less than one percent (1%) of Net Sales of such Product
in such country. In consideration of the right to sublicense third
parties granted under Section 3.2, Company shall pay to ID4 ten
percent (10%) of all royalties received by Company from its
Sublicensees if the sublicense is executed on or before the first
anniversary of the Effective Date of the License Agreement signed
between the parties, and ten percent (10%) of all royalties
received by Company from its Sublicensees if the Sublicense is
executed thereafter. In no event, however, shall Company pay ID4
less than the amount which would have been due under Section 4.1.2
of this Agreement in the absence of a sublicense.

 

4.2 Diligence Fee. A good faith
diligence fee of TWENTY FIVE THOUSAND dollars ($25,000.00) paid
upon the execution of the Letter of Intent (Schedule C). Said good
faith diligence fee shall be credited against any monies owed by
Company to ID4 as a result of the parties executing this License
Agreement.

 

4.3 License Fee. Company shall pay
ID4 a non-refundable license fee of SEVENTY FIVE THOUSAND dollars
($75,000.00) which shall be payable upon execution of this
Agreement.

 

 

4

 

 

4.4 Milestones. Company shall pay
to ID4 the following milestone payment within thirty (30) days
following the first achievement of the applicable
milestone:

 

(i)

FIFTY THOUSAND
dollars ($50,000.00) due upon filing of an investigational new drug
application with a competent regulatory authority anywhere in the
world.

 

(ii)

FIFTY THUOSAND
dollars ($50,000.00) due upon initiation of the first Phase 1 human
clinical trial anywhere in the world.

 

(iii)

ONE HUNDRED
THOUSAND dollars ($100,000.00) due upon initiation of the first
Phase 2 human clinical trial anywhere in the world.

 

(iv)

TWO HUNDRED FIFTY
THOUSAND dollars ($250,000.00) due upon initiation of the first
Phase 3 human clinical trial anywhere in the world.

 

(v)

TWO HUNDRED FIFTY
THOUSAND dollars ($250,000.00) due upon receipt of the first
marketing approval from a competent regulatory authority anywhere
in the world.

 

5. ROYALTY REPORTS AND
ACCOUNTING

 

5.1 Royalty Reports. Within sixty
(60) days after the end of each calendar quarter during the term of
this Agreement following first to occur of the First Commercial
Sale of a Product and the receipt by Company or its Affiliates of
Net Sublicensing Revenues, Company shall furnish to ID4 a quarterly
written report showing in reasonably specific detail (a) the
calculation of Net Sales during such calendar quarter; (b) the
calculation of Net Sublicensing Revenues for such quarter;
(c) the calculation of the royalties, if any, that shall have
accrued based upon such Net Sales and Net Sublicensing Revenues;
(d) the withholding taxes, if any, required by law to be
deducted with respect to such sales; and (e) the exchange
rates, if any, used in determining the amount of United States
dollars. With respect to sales of Products invoiced in United
States dollars, the gross sales, Net Sales and royalties payable
shall be expressed in United States dollars. With respect to
(i) Net Sales invoiced in a currency other than United States
dollars and (ii) cash consideration paid in a currency other
than United States dollars by Company’s sublicensees
hereunder, all such amounts shall be expressed both in the currency
in which the distribution is invoiced and in the United States
dollar equivalent. The United States dollar equivalent shall be
calculated using the average of the exchange rate (local currency
per US$1) published in The
Wall Street Journal, Western Edition, under the heading
“Currency Trading” on the last business day of each
month during the applicable calendar quarter.

 

5.2 Audits.

 

5.2.1 Upon
the written request of ID4 and not more than once in each calendar
year, Company shall permit an independent certified public
accounting firm of nationally recognized standing selected by ID4
and reasonably acceptable to Company, at ID4’s expense, to
have access during normal business hours to such of the financial
records of Company as may be reasonably necessary to verify the
accuracy of the payment reports hereunder for the eight (8)
calendar quarters immediately prior to the date of such request
(other than records for which ID4 has already conducted an audit
under this Section.

 

5.2.2 If
such accounting firm concludes that additional amounts were owed
during the audited period, Company shall pay such additional
amounts within thirty (30) days after the date ID4 delivers to
Company such accounting firm’s written report so concluding.
The fees charged by such accounting firm shall be paid by ID4;
provided, however, if the audit discloses that the royalties
payable by Company for such period are more than one hundred ten
percent (110%) of the royalties actually paid for such period, then
Company shall pay the reasonable fees and expenses charged by such
accounting firm.

 

5.2.3 ID4
shall cause its accounting firm to retain all financial information
subject to review under this Section 5.2 in strict confidence;
provided, however, that Company shall have the right to require
that such accounting firm, prior to conducting such audit, enter
into an appropriate non-disclosure agreement with Company regarding
such financial information. The accounting firm shall disclose to
ID4 only whether the reports are correct or not and the amount of
any discrepancy. No other information shall be shared. ID4 shall
treat all such financial information as Company’ Confidential
Information.

 

6. PAYMENTS

 

6.1 Payment Terms. Royalties shown
to have accrued by each royalty report provided for under
Section 5 above shall be due on the date such royalty report
is due. Payment of royalties in whole or in part may be made in
advance of such due date.

 

6.2 Exchange Control. If at any
time legal restrictions prevent the prompt remittance of part or
all royalties with respect to any country in the Territory where
the Product is sold, Company shall have the right, in its sole
discretion, to make such payments by depositing the amount thereof
in local currency to ID4’s account in a bank or other
depository institution in such country. If the royalty rate
specified in this Agreement should exceed the permissible rate
established in any country, the royalty rate for sales in such
country shall be adjusted to the highest legally permissible or
government-approved rate.

 

 

5

 

 

6.3 Withholding Taxes. Company
shall be entitled to deduct the amount of any withholding taxes,
value-added taxes or other taxes, levies or charges with respect to
such amounts, other than United States taxes, payable by Company,
its Affiliates or sublicensees, or any taxes required to be
withheld by Company, its Affiliates or sublicensees, to the extent
Company, its Affiliates or sublicensees pay to the appropriate
governmental authority on behalf of ID4 such taxes, levies or
charges. Company shall use reasonable efforts to minimize any such
taxes, levies or charges required to be withheld on behalf of ID4
by Company, its Affiliates or sublicensees. Company promptly shall
deliver to ID4 proof of payment of all such taxes, levies and other
charges, together with copies of all communications from or with
such governmental authority with respect thereto.

 

7. RESEARCH
AND DEVELOPMENT OBLIGATIONS

 

7.1 Research and Development
Efforts. Company shall use its commercially reasonable
efforts to conduct such research, development and preclinical and
human clinical trials as Company determines are necessary or
desirable to obtain regulatory approval to manufacture and market
such Products as Company determines are commercially feasible in
the Territory, and shall use its commercially reasonable efforts to
obtain regulatory approval to market, and following approval to
commence marketing and market each such Product in such countries
in the Territory as Company determines are commercially
feasible.

 

7.2 Consulting Agreement. ID4 shall
use his reasonable efforts in performing the services identified in
the Consulting Agreement executed between ID4 and Company on
December __, 2014 and attached hereto as Schedule C.

 

7.3 Records. ID4 and Company shall
maintain records, in sufficient detail and in good scientific
manner, which shall reflect all work done and results achieved in
the performance of its research and development regarding the
Products.

 

7.4 Reports. Within ninety (90)
days following the end of each calendar year during the term of
this Agreement, ID4 shall prepare and deliver to Company a written
summary report which shall describe (a) the research performed
to date employing the Licensed IP Rights, (b) the progress of
the development, and testing of Products in clinical trials, and
(c) the status of obtaining regulatory approvals to market
Products.

 

8. CONFIDENTIALITY

 

8.1 Confidential Information.
Nothing contained in this Agreement shall supersede the
confidentiality requirements set forth in the Consulting Agreement
and Confidentiality Agreement signed by the parties; each agreement
dated December __, 2014 attached hereto as Schedule C and Schedule
D, respectively. Said Consulting Agreement and Confidentiality
Agreement shall both remain in full force and effect.

 

9. PATENTS

 

9.1 Patent Prosecution and
Maintenance. Company shall have the right to control, at its
sole cost, the preparation, filing, prosecution and maintenance of
all patents and patent applications within the Licensed Patent
Rights. Company shall give ID4 an opportunity to review and comment
on the text of each patent application subject to this
Section 9.1 before filing, and shall supply ID4 with a copy of
such patent application as filed, together with notice of its
filing date and serial number. ID4 shall cooperate with Company,
execute all lawful papers and instruments and make all rightful
oaths and declarations as may be necessary in the preparation,
prosecution and maintenance of all patents and other filings
referred to in this Section 9.1. If Company, in its sole
discretion, decides to abandon the preparation, filing, prosecution
or maintenance of any patent or patent application in the Licensed
Patent Rights, then Company shall notify ID4 in writing thereof and
following the date of such notice (a) ID4 shall be responsible
for and shall control, at its sole cost, the preparation, filing,
prosecution and maintenance of such patents and patent
applications, and (b) Company shall thereafter have no license
under this Agreement to such patent or patent
application.

 

9.2 Notification of Infringement.
Each party shall notify the other party of any substantial
infringement in the Territory known to such party of any Licensed
Patent Rights and shall provide the other party with the available
evidence, if any, of such infringement.

 

9.3 Enforcement of Patent Rights.
Company, at its sole expense, shall have the right to determine the
appropriate course of action to enforce Licensed Patent Rights or
otherwise abate the infringement thereof, to take (or refrain from
taking) appropriate action to enforce Licensed Patent Rights, to
defend any declaratory judgments seeking to invalidate or hold the
Licensed Patent Rights unenforceable, to control any litigation or
other enforcement action and to enter into, or permit, the
settlement of any such litigation, declaratory judgments or other
enforcement action with respect to Licensed Patent Rights, in each
case in Company’s own name and, if necessary for standing
purposes, in the name of ID4 and shall consider, in good faith, the
interests of ID4 in so doing. If Company does not, within one
hundred twenty (120) days of receipt of notice from ID4, abate the
infringement or file suit to enforce the Licensed Patent Rights
against at least one infringing party in the Territory, ID4 shall
have the right to take whatever action it deems appropriate to
enforce the Licensed Patent Rights; provided, however, that, within
thirty (30) days after receipt of notice of ID4’s intent to
file such suit, Company shall have the right to jointly prosecute
such suit and to fund up to one-half (1⁄2) the costs of such
suit. The party controlling any such enforcement action shall not
settle the action or otherwise consent to an adverse judgment in
such action that diminishes the rights or interests of the
non-controlling party without the prior written consent of the
other party. All monies recovered upon the final judgment or
settlement of any such suit to enforce the Licensed Patent Rights
shall be shared, after reimbursement of expenses, in relation to
the damages suffered by each party. If Company does not receive
sufficient monies from a final judgment or settlement to cover its
expenses for such suit, Company shall have the right to credit up
to fifty percent (50%) of such expenses against any royalties or
other fees owing by Company pursuant to Section 4
above.

 

 

6

 

 

9.4 Cooperation. In any suit to
enforce and/or defend the License Patent Rights pursuant to this
Section 9, the party not in control of such suit shall, at the
request and expense of the controlling party, reasonably cooperate
and, to the extent possible, have its employees testify when
requested and make available relevant records, papers, information,
samples, specimens, and the like.

 

10. TERMINATION

 

10.1 Expiration.
Subject to Sections 10.2 and 10.3 below, this Agreement shall
expire on the expiration of Company’ obligation to pay
royalties to ID4 under Section 4.1 above. The license grant
under Section 3.1 shall be effective at all times prior to
such expiration and following such expiration of this Agreement
(a) Company shall have a fully paid-up, non-exclusive license
under the Licensed Know-How Rights to conduct research and to
develop, make, have made, use, sell, offer for sale and import
Products in the Territory for use in the Field, and
(b) Sections 3.5 and 3.6 shall survive.

 

10.2 Termination by Company. Company
may terminate this Agreement, in its sole discretion, upon thirty
(30) days prior written notice to ID4. This includes and is not
limited to the failure to revive U.S. Patent Application Serial No.
14/237,494 from abandoned status.

 

10.3 Termination for Cause. Except
as otherwise provided in Section 12, ID4 may terminate this
Agreement upon or after the breach of any material provision of
this Agreement by Company if Company has not cured such breach
within ninety (90) days after receipt of express written notice
thereof by ID4; provided, however, if any default is not capable of
being cured within such ninety (90) day period and Company is
diligently undertaking to cure such default as soon as commercially
feasible thereafter under the circumstances, ID4 shall have no
right to terminate this Agreement.

 

10.4 Effect
of Expiration or Termination. Expiration or termination of
this Agreement shall not relieve the parties of any obligation
accruing prior to such expiration or termination, and the
provisions of Sections 8, 9, 10, 11 and 13 shall survive the
expiration or termination of this Agreement. Upon any termination
of this Agreement, ID4 shall grant a direct license to any
sublicense of Company hereunder having the same scope as such
sublicense and on terms and conditions no less favorable to such
sublicensee than the terms and conditions of this Agreement,
provided that such sublicensee is not in default of any applicable
obligations under this Agreement and agrees in writing to be bound
by the terms and conditions of such direct license.

 

11. INDEMNIFICATION

 

11.1 Indemnification.
Company shall defend, indemnify and hold ID4 harmless from all
losses, liabilities, damages and expenses (including
attorneys’ fees and costs) incurred as a result of any claim,
demand, action or proceeding arising out of any breach of this
Agreement by Company, or the gross negligence or willful misconduct
of Company in the performance of its obligations under this
Agreement, except in each case to the extent arising from the gross
negligence or willful misconduct of ID4 or the breach of this
Agreement by ID4.

 

11.2 Procedure.
ID4 promptly shall notify Company of any liability or action in
respect of which ID4 intends to claim such indemnification, and
Company shall have the right to assume the defense thereof with
counsel selected by Company. The indemnity agreement in this
Section 11 shall not apply to amounts paid in settlement of
any loss, claim, damage, liability or action if such settlement is
effected without the consent of Company, which consent shall not be
withheld unreasonably. The failure to deliver notice to Company
within a reasonable time after the commencement of any such action,
if prejudicial to its ability to defend such action, shall relieve
Company of any liability to ID4 under this Section 11, but the
omission so to deliver notice to Company will not relieve it of any
liability that it may have to ID4 otherwise than under this
Section 11. ID4 under this Section 11, its employees and
agents, shall cooperate fully with Company and its legal
representatives in the investigation and defense of any action,
claim or liability covered by this indemnification.

 

11.3 Insurance.
Company shall maintain product liability insurance with respect to
the research, development, manufacture and sales of Products by
Company in such amount as Company customarily maintains with
respect to the research, development, manufacture and sales of its
similar products. Company shall maintain such insurance for so long
as it continues to research, develop, manufacture or sell any
Products, and thereafter for so long as Company customarily
maintains insurance covering the research, development, manufacture
or sale of its similar products.

 

12. FORCE MAJEURE

 

Neither
party shall be held liable or responsible to the other party nor be
deemed to have defaulted under or breached this Agreement for
failure or delay in fulfilling or performing any term of this
Agreement to the extent, and for so long as, such failure or delay
is caused by or results from causes beyond the reasonable control
of the affected party including but not limited to fire, floods,
embargoes, war, acts of war (whether war be declared or not), acts
of terrorism, insurrections, riots, civil commotions, strikes,
lockouts or other labor disturbances, acts of God or acts,
omissions or delays in acting by any governmental authority or the
other party.

 

 

7

 

 

13. MISCELLANEOUS

 

13.1 Notices.
Any consent, notice or report required or permitted to be given or
made under this Agreement by one of the parties hereto to the other
party shall be in writing, delivered by any lawful means to such
other party at its address indicated below, or to such other
address as the addressee shall have last furnished in writing to
the addressor and (except as otherwise provided in this Agreement)
shall be effective upon receipt by the addressee.

 

ID4:                                    
Dr. Xiangqun Xie, Ph.D.

1654
Settlers Drive

Sewickley, PA
15143

 

 

Company:                           
Anthony Cataldo

Chairman &
CEO

Oxis
Biotech, Inc.

1402
North Beverly Drive

Beverly
Hills, CA 90210

 

 

with a
copy
to:                    
DLA Piper US

4365
Executive Drive, Suite 1100

San
Diego, California 92130

Attention: Lisa A.
Haile

 

13.2 Governing
Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of California, without regard
to the conflicts of law principles thereof.

 

13.3 Arbitration.
Any dispute, controversy or claim initiated by either party arising
out of, resulting from or relating to this Agreement, or the
performance by either party of its obligations under this Agreement
(other than (a) any dispute, controversy or claim regarding
the validity, enforceability, claim construction or infringement of
any patent rights, or defenses to any of the foregoing, or
(b) any bona fide third party action or proceeding filed or
instituted in an action or proceeding by a Third Party against a
party to this Agreement), whether before or after termination of
this Agreement, shall be finally resolved by binding arbitration.
Whenever a party shall decide to institute arbitration proceedings,
it shall give written notice to that effect to the other party. Any
such arbitration shall be conducted under the Commercial
Arbitration Rules of the American Arbitration Association by a
panel of three arbitrators appointed in accordance with such rules.
Any such arbitration shall be held in Los Angeles, California. The
method and manner of discovery in any such arbitration proceeding
shall be governed by California Code of Civil Procedure § 1282
et seq. (including without limitation California Code of Civil
Procedure § 1283.05). The arbitrators shall have the authority
to grant specific performance and to allocate between the parties
the costs of arbitration in such equitable manner as they
determine. Judgment upon the award so rendered may be entered in
any court having jurisdiction or application may be made to such
court for judicial acceptance of any award and an order of
enforcement, as the case may be. In no event shall a demand for
arbitration be made after the date when institution of a legal or
equitable proceeding based upon such claim, dispute or other matter
in question would be barred by the applicable statute of
limitations. Notwithstanding the foregoing, either party shall have
the right, without waiving any right or remedy available to such
party under this Agreement or otherwise, to seek and obtain from
any court of competent jurisdiction any interim or provisional
relief that is necessary or desirable to protect the rights or
property of such party, pending the selection of the arbitrators
hereunder or pending the arbitrators’ determination of any
dispute, controversy or claim hereunder.

 

 

8

 

 

13.4 Assignment.
Company shall not assign its rights or obligations under this
Agreement without the prior written consent of ID4; provided,
however, that Company may, without such consent, assign this
Agreement and its rights and obligations hereunder (a) to any
Affiliate, or (b) in connection with the transfer or sale of
all or substantially all of its business to which this Agreement
relates, or in the event of its merger, consolidation, change in
control or similar transaction. Any permitted assignee shall assume
all obligations of its assignor under this Agreement.

 

13.5 Waivers
and Amendments. No change, modification, extension,
termination or waiver of this Agreement, or any of the provisions
herein contained, shall be valid unless made in writing and signed
by duly authorized representatives of the parties
hereto.

 

13.6 Entire
Agreement. This Agreement embodies the entire agreement
between the parties and supersedes any prior representations,
understandings and agreements between the parties regarding the
subject matter hereof. There are no representations, understandings
or agreements, oral or written, between the parties regarding the
subject matter hereof that are not fully expressed
herein.

 

13.7 Severability.
Any of the provisions of this Agreement which are determined to be
invalid or unenforceable in any jurisdiction shall be ineffective
to the extent of such invalidity or unenforceability in such
jurisdiction, without rendering invalid or unenforceable the
remaining provisions hereof and without affecting the validity or
enforceability of any of the terms of this Agreement in any other
jurisdiction.

 

13.8 Waiver.
The waiver by either party hereto of any right hereunder or the
failure to perform or of a breach by the other party shall not be
deemed a waiver of any other right hereunder or of any other breach
or failure by said other party whether of a similar nature or
otherwise.

 

13.9 Counterparts.
This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

 

IN
WITNESS WHEREOF, the parties have executed this Agreement effective
as of the Effective Date.

 

LICENSOR:
ID4

 

By:
/s/ Xiang-Qun
Xie

Name:
Xiang-Qun Xie,
Ph.D.

Title
Managing
Member

 

 

 

LICENSEE: Oxis
Biotech, Inc.

 

By:
/s/ Anthony
Cataldo

Name:
Anthony
Cataldo

Title:
Chairman &
CEO

 

 

 

9

 

SCHEDULE
A

 

LICENSED PATENT RIGHTS

 

 

 

1.            

PCT/US2012/049911
(WO2013022919A1)

 

2.            

USSN
61/521,287

 

3.            

USSN
14/237,494

 

4.            

Chinese Patent
Application No. 201280048718; Pre-grant Publ. No.
103930166

 

 

 

10

 

SCHEDULE
B

 

ASSIGNMENT
DOCUMENTS

 

 

 

1.            

Assignment document
from University of Pittsburgh to inventors (Patent family of USSN
14/237,494).

 

2.            

Assignment document
from Inventors to Dr. Xiang-Qun Xie (Patent family of USSN
14/237,494) .

 

3.            

Assignment document
from Dr. Xiang-Qun Xie to ID4Pharma, LLC (Patent family of USSN
14/237,494).

 

 

 

11

 

SCHEDULE
C

 

 

 

CONSULTING
AGREEMENT

 

 
12

 

SCHEDULE
D

 

 

 

CONFIDENTIALITY
AGREEMENT

 

 
13

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