Document:

EX-10.62

  Exhibit 10.62

  		
	 
 
 
 
 
PRIMER CONVENIO MODIFICATORIO A CONTRATO DE NOVACIÓN Y REEXPRESIÓN DE CONTRATO DE ARRENDAMIENTO
(EL “PRIMER CONVENIO”)
 
 
 
CELEBRADO POR Y ENTRE
 
 
 
JESÚS SALVADOR GIL BENAVIDES
ALEJANDRO GIL BENAVIDES
SALVADOR GIL BENAVIDES
(CONJUNTAMENTE LOS 
“SEÑORES GIL”),
 
 
 
 
 
FCA FASEMEX, S. DE R.L. DE C.V. (“FCA”)
 
 
 
 
Y
 
 
 
 
FABRICACIONES Y SERVICIOS DE MEXICO,
 S.A. DE C.V. 
(“FASEMEX”)
 
 
 
5 de noviembre de 2021
 
 
 
 
	 
 
 
 
 
FIRST AMENDMENT AGREEMENT TO NOVATION AGREEMENT AND RESTATEMENT OF LEASE AGREEMENT 
(THE “FIRST AMENDMENT”)
 
 
 
ENTERED INTO BY AND BETWEEN
 
 
 
JESÚS SALVADOR GIL BENAVIDES
ALEJANDRO GIL BENAVIDES
SALVADOR GIL BENAVIDES
(JOINTLY THE 
“GILS”),
 
 
 
 
 
FCA FASEMEX, S. DE R.L. DE C.V. (“FCA”)
 
 
 
 
AND
 
 
 
 
FABRICACIONES Y SERVICIOS DE MEXICO,
 S.A. DE C.V. 
(“FASEMEX”)
 
 
 
November 5, 2021
 
 
 
 

   

   

   

  

   

  		
	PRIMER CONVENIO MODIFICATORIO A CONTRATO DE NOVACIÓN Y REEXPRESIÓN DE CONTRATO DE ARRENDAMIENTO (EL “PRIMER CONVENIO”) QUE CELEBRAN POR UNA PARTE LOS SEÑORES JESÚS SALVADOR GIL BENAVIDES, ALEJANDRO GIL BENAVIDES Y SALVADOR GIL BENAVIDES (CONJUNTAMENTE LOS “SEÑORES GIL”), POR SUS PROPIOS DERECHOS, POR  OTRA PARTE FCA FASEMEX, S. DE R.L. DE C.V. (“FCA”), REPRESENTADA EN ESTE ACTO POR JAMES R. MEYER, Y POR UNA ULTIMA PARTE FABRICACIONES Y SERVICIOS DE MÉXICO, S.A. DE C.V. (“FASEMEX”), REPRESENTADA EN ESTE ACTO POR EL SEÑOR ALEJANDRO GIL BENAVIDES, DE CONFORMIDAD CON LOS SIGUIENTES ANTECEDENTES, DECLARACIONES Y CLÁUSULAS:
 
 
A N T E C E D E N T E S
 
I. 	En fecha 1 de enero de 2019, Fasemex y los Señores Gil celebraron un contrato de arrendamiento (el “Contrato de Arrendamiento de los Señores Gil”), mediante el cual, entre otros asuntos, los Señores Gil (a) dieron en arrendamiento a Fasemex el Inmueble (como dicho término se define en el Contrato de Arrendamiento de los Señores Gil) del que forma parte el Segundo Terreno (como dicho término define en el Contrato de Novación), y (b) autorizaron a Fasemex a subarrendar el Inmueble (como dicho término se define en el Contrato de Arrendamiento de los Señores Gil) a un tercero.
 
II.  En fecha 13 de septiembre de 2019, Fasemex y FCA celebraron un contrato de arrendamiento (el “Primer Contrato de Arrendamiento”), por medio del cual Fasemex dio en Arrendamiento a FCA la Propiedad Arrendada (como dicho término se define en el Primer Contrato de Arrendamiento).
 
III.	 En fecha 27 de abril de 2020, Fasemex y FCA celebraron el primer convenio modificatorio al Primer Contrato de 
	FIRST AMENDMENT AGREEMENT TO NOVATION AND RESTATED LEASE AGREEMENT (THE “FIRST AMENDMENT”) ENTERED INTO BY AND BETWEEN MESSRS. JESÚS SALVADOR GIL BENAVIDES, ALEJANDRO GIL BENAVIDES AND SALVADOR GIL BENAVIDES (JOINTLY THE “GILS”), ON THEIR OWN BEHALF, FCA FASEMEX, S. DE R.L. DE C.V. ("FCA"), REPRESENTED HEREIN BY MR. JAMES R. MEYER, IN HIS CAPACITY AS LEGAL REPRESENTATIVE OF SUCH ENTITY, AND FABRICACIONES Y SERVICIOS DE MEXICO, S.A. DE C.V. ("FASEMEX"), REPRESENTED HEREIN BY MR. ALEJANDRO GIL BENAVIDES, PURSUANT TO THE FOLLOWING RECITALS, REPRESENTATIONS AND CLAUSES:
 
 
 
 
R E C I T A L S
 
I.  On January 1, 2019, Fasemex and the Gils entered into a lease agreement (the “Gils Lease Agreement"), whereby, among other matters, the Gils (a) leased to Fasemex the Property (as such term is defined in the Gils Lease Agreement) of which the Second Plot (as such terms is defined in the Novation Agreement) is a part, and (b) authorized Fasemex to sublease the Property (as such term is defined in the Gils Lease Agreement) to a third party.
 
 
 
 
II. 	On September 13, 2019, Fasemex and FCA entered into a lease agreement (the “First Lease Agreement”), whereby Fasemex leased the Leased Property (as such term is defined in the First Lease Agreement) to FCA. 
 
 
 
III. 	On April 27, 2020, Fasemex and FCA entered into a first amendment agreement to the First Lease Agreement (the “Amendment Agreement”) to clarify their original intent 

   

   

   

  

   

  		
	Arrendamiento (el “Convenio Modificatorio”), con el objeto de aclarar su intención original en relación a la definición de Propiedad Arrendada (como dicho término se define en el Primer Contrato de Arrendamiento) definiéndola como (a) el Primer Terreno (como dicho término se define en el Convenio Modificatorio), (b) el Segundo Terreno (como dicho término se define en el Convenio Modificatorio), y (c) el Edificio (como dicho término se define en el Convenio Modificatorio).
 
IV.	Con fecha 16 de octubre de 2020, Fasemex y FCA celebraron el contrato de novación y reexpresión de contrato de arrendamiento (el “Contrato de Novación”), por medio del cual, entre otros asuntos, Fasemex y FCA acordaron (a) novar el Primer Contrato de Arrendamiento y el Convenio Modificatorio alterando substancialmente sus acuerdos, por lo que las obligaciones pactadas en dicho instrumento sustituyeron las pactadas anteriormente en el Primer Contrato de Arrendamiento y en el Convenio Modificatorio, (b) extinguir las obligaciones principales y accesorias del Primer Contrato de Arrendamiento y el Convenio Modificatorio, (c) reexpresar el Primer Contrato de Arrendamiento y el Convenio Modificatorio, conforme a lo pactado a partir de la cláusula 2.3 y subsecuentes del  Contrato de Novación, (d) que FCA depositaría a Fasemex (i) el Depósito de Garantía A y (ii) el Depósito de Garantía B, (e) que Fasemex se reservaba la facultad de enajenar, cargar y/o gravar la Propiedad Arrendada como dicho término se define en el Contrato de Novación) a los Señores Gil bastando con que realizara una notificación a FCA para ejecutar la operación de que se tratara, y (f) que Fasemex se encontraba en negociaciones con los Señores Gil para enajenar el Primer Terreno (como dicho término se define en el Contrato de Novación) y el Edificio (como dicho término se define en el Contrato de Novación) por lo que en caso de que se llevara a cabo dicha transmisión (i) el Contrato de Arrendamiento de los Señores Gil quedaría automáticamente terminado, y (ii) Fasemex y los Señores Gil darían aviso a FCA para que se aplicaran las reglas pactadas en el Contrato de Novación para el reconocimiento de los nuevos arrendadores.
	regarding the definition of the Leased Property (as such term is defined in the First Lease Agreement) as (a) the First Plot (as such term is defined in the Amendment Agreement), (b) the Second Plot (as such term is defined in the Amendment Agreement), and (c) the Building (as such term is defined in the Amendment Agreement).
 
 
 
IV. 	On October 16, 2020, Fasemex and FCA entered into a novation and restatement of lease agreement (the "Novation Agreement"), whereby, among other matters, Fasemex and FCA agreed to (a) novate the First Lease Agreement and the Amendment Agreement by substantially altering their agreements, (b) extinguish both the principal and ancillary obligations of the First Lease Agreement and the Amendment Agreement, (c) restate the First Lease Agreement and the Amendment Agreement, as agreed to in clause 2.2 thereof and the subsequent clauses of the Novation Agreement, (d) FCA would deposit with Fasemex (i) Security Deposit A and (ii) Security Deposit B, (e) Fasemex reserved certain rights to transfer, lien and/or encumber the Leased Property (as such term is defined in the Novation Agreement) to or for the Gils by giving notice to FCA in order to execute the transaction in question upon the terms and conditions sets forth therein, and (f) Fasemex was in negotiations with the Gils to transfer the First Plot (as such term is defined in the Novation Agreement) and the Building (as such term is defined in the Novation Agreement) so that in the event of such transfer (i) the Gils Lease Agreement would automatically terminate, and (ii) Fasemex and the Gils would give notice to FCA so that the rules agreed to in the Novation Agreement for the recognition of the new lessors applied.
 
 
 
 
 
 
 
 

   

   

   

  

   

  		
	 
V. 	En fecha 1 de noviembre del 2020, Fasemex y los Señores Gil celebraron un contrato de promesa de arrendamiento financiero (el “Contrato de Promesa de Arrendamiento”), mediante el cual, entre otros asuntos, (a) los Señores Gil solicitaron a Fasemex y Fasemex accedió a realizar la terminación de la construcción directa o indirecta del Edificio (como dicho termino se define en el Contrato de Novación) sobre el Primer Terreno (como dicho término se define en el Contrato de Novación) y el Segundo Terreno (como dicho término se define en el Contrato de Novación), (b) los Señores Gil y Fasemex prometieron, sujeto al cumplimiento de cierta condición suspensiva, celebrar un contrato de arrendamiento financiero para que Fasemex les diera a los Señores Gil en arrendamiento financiero, en una proporción de 51% (cincuenta y uno por ciento) para Alejandro Gil Benavides, 33% (treinta y tres por ciento) para Jesús Salvador Gil Benavides y 16% (dieciséis por ciento) para Salvador Gil Benavides (los “Porcentajes del Arrendamiento Financiero”), el Edificio (como dicho término se define en el Contrato de Novación) y el Primer Terreno (como dicho término se define en el Contrato de Novación) (el “Contrato de Arrendamiento Financiero”), y (c) los Señores Gil y Fasemex reconocieron el Primer Contrato de Arrendamiento, su Convenio Modificatorio y el Contrato de Novación y acordaron que (i)  Fasemex haría del conocimiento de FCA que los Señores Gil podrían sustituirlo posteriormente como sus arrendadores, (ii) Fasemex solicitaría el consentimiento de FCA para la celebración del Contrato de Arrendamiento Financiero,  (iii) el Contrato de Arrendamiento Financiero preverá expresamente el derecho de subarrendamiento de los Señores Gil en favor de FCA del Primer Terreno y el Edificio, y (iv) Fasemex solicitaría a FCA la celebración de un convenio modificatorio al Contrato de Novación o el instrumento jurídico que fuera necesario firmar para ratificar que los Señores Gil se convertirían en sus subarrendadores.
 
VI. En esta misma fecha, Fasemex y los Señores Gil están celebrando el Contrato de Arrendamiento Financiero.
	 
 
V.	On November 1, 2020, Fasemex and the Gils entered into a promissory financial lease agreement (the “Promissory Lease Agreement”), whereby, among other matters, (a) the Gils requested Fasemex and Fasemex agreed to complete, either directly or indirectly, the construction of the Building (as such term is defined in the Novation Agreement) on the First Plot (as such term is defined in the Novation Agreement) and the Second Plot (as such term is defined in the Novation Agreement), (b) the Gils and Fasemex promised, subject to the fulfillment of a certain condition precedent, to enter into a financial lease agreement for Fasemex to grant to the Gils the financial lease, in a proportion of 51% (fifty one percent) in the case of Alejandro Gil Benavides, 33% (thirty three percent) in the case of Jesús Salvador Gil Benavides and 16% (sixteen percent) in the case of Salvador Gil Benavides (the “Percentages of the Financial Lease”), the Building (as such term is defined in the Novation Agreement) and the First Plot (as such term is defined in the Novation Agreement) (the “Financial Lease Agreement”), and (c) the Gils and Fasemex acknowledged the First Lease Agreement, its Amendment Agreement and the Novation Agreement and agreed that (i) Fasemex would advise FCA that the Gils could subsequently replace it as its lessors, (ii) Fasemex would request FCA's consent to the entry into the Financial Lease Agreement, and (iii) the Financial Lease Agreement will expressly contemplate the right upon the Gils to sublease to FCA the First Plot and the Building, and (iv) Fasemex would request FCA to enter into an amendment agreement to the Novation Agreement or such other legal instrument as may be necessary to ratify that the Gils would become their sublessors. 
 
 
 
 
 
 
 
 

   

   

   

  

   

  		
	 
VII. 	 En esta misma fecha Fasemex y los Señores Alejandro Gil Benavides y Salvador Gil Benavides, con la comparecencia de FCA, están celebrando un convenio de cesión de deuda mediante el cual, entre otros asuntos, (a) Fasemex, los Señores Alejandro Gil Benavides y Salvador Gil Benavides y FCA reconocen que Fasemex ha reembolsado a FCA a la fecha (i) la cantidad de USD $59,150.00 (cincuenta y nueve mil ciento cincuenta dólares 00/100 Moneda de Curso Legal de los Estados Unidos de América) correspondiente al Depósito de Garantía A (el “Reembolso del Depósito de Garantía A”), adeudando a FCA la cantidad de USD $447,850.00 (cuatrocientos cuarenta y siete mil ochocientos cincuenta dólares 00/100 Moneda de Curso Legal de los Estados Unidos de América) (el “Saldo del Depósito de Garantía A”), y (ii) la cantidad de USD $133,737.00 (ciento treinta y tres mil setecientos treinta y siete dólares 00/100 Moneda de Curso Legal de los Estados Unidos de América) correspondiente al Depósito de Garantía B (el “Reembolso del Depósito de Garantía B”), adeudando a FCA la cantidad de USD $1’609,263.00 (un millón seiscientos nueve mil doscientos sesenta y tres dólares 00/100 Moneda de Curso Legal de los Estados Unidos de América) (el “Saldo del Depósito de Garantía B”), (b) Fasemex cedió a los Señores Alejandro Gil Benavides y Salvador Gil Benavides y estos asumieron en una proporción de 50% (cincuenta por ciento) en el caso de Alejandro Gil Benavides y 50% (cincuenta por ciento) en el caso de Salvador Gil Benavides (los “Porcentajes de las Deudas”) (i’) la deuda del Saldo Depósito de Garantía A, y (ii’) la deuda del Saldo del Depósito de Garantía B (las “Deudas de los Depósitos”), (c) FCA, como acreedor de las Deudas de los Depósitos, consintió expresamente la sustitución de Fasemex en su calidad de deudor de las Deudas de los Depósitos, siendo ahora los nuevos deudores los Señores Alejandro Gil Benavides y Salvador Gil Benavides, y (d) Fasemex se constituyó como obligado solidario y subsidiario para el cumplimiento de la obligación de pago de las Deudas de los Depósitos (el “Convenio de Cesión de Deuda”).
 
	VI. 	On the date hereof, Fasemex and the Gils are entering into the Financial Lease Agreement.
 
VII. 	On the date hereof, Fasemex and Messrs. Alejandro Gil Benavides and Salvador Gil Benavides, with the appearance of FCA, are entering into a debt transfer agreement whereby, among other matters, (a) Fasemex, Messrs. Alejandro Gil Benavides and Salvador Gil Benavides and FCA acknowledge that Fasemex has reimbursed FCA (i) the amount of USD$59,150.00 (fifty nine thousand one hundred fifty dollars 00/100 of the United States of America) corresponding to the Security Deposit A (the “Reimbursement of Security Deposit A”), owing FCA the amount of USD$447,850.00 (four hundred forty seven thousand eight hundred and fifty dollars 00/100 of the United States of America) (the “Balance of Security Deposit A”), and (ii) the amount of USD$133,737.00 (one hundred thirty three thousand seven hundred thirty seven dollars 00/100 of the United States of America) corresponding to Security Deposit B (the “Reimbursement of Security Deposit B”), owing FCA the amount of USD$1'609,263.00 (one million six hundred nine thousand two hundred sixty three dollars 00/100 of the United States of America) (the “Balance of Security Deposit B”), (b) Fasemex assigned to Messrs. Alejandro Gil Benavides and Salvador Gil Benavides and they assumed in a proportion of 50% (fifty percent) in the case of Alejandro Gil Benavides and 50% (fifty percent) in the case of Salvador Gil Benavides (the “Percentages of the Debts”) (i') the Debt of Security Deposit A, and (ii') the Debt of Security Deposit B (the “Debts of the Deposits”), (c) FCA, as creditor of the Debts of the Deposits, expressly agreed to the substitution of Fasemex as debtor of the Debt of the Deposits, becoming Messrs. Alejandro Gil Benavides and Salvador Gil Benavides the new debtors, and (d) Fasemex remained and remains jointly and severally liable of the obligation to pay the Debts of the Deposits (the “Debt Transfer Agreement”).
 
 
 
 

   

   

   

  

   

  		
	VIII. 	En esta misma fecha Fasemex y los Señores Gil están celebrando el convenio de terminación del Contrato de Arrendamiento de los Señores Gil, mediante el cual, entre otros asuntos dieron por terminado dicho contrato para los efectos legales a que hubiera lugar.
 
IX.  Las partes acordaron actualizar el Anexo “A”, el Anexo “B” y el “Anexo “C” del Contrato de Novación, con las versiones que se adjuntan al presente Primer Convenio para su incorporación al mismo.
 
 
D E C L A R A C I O N E S
 
I.	Cada uno de los Señores Gil, por sus propios derechos, declaran y garantizan, que:
 
A.	Son personas físicas, de nacionalidad mexicana, mayores de edad, casados, en pleno ejercicio de sus derechos y que tienen capacidad jurídica suficiente y bastante para obligarse en los términos del presente Primer Convenio.
 
B. Son propietarios del Segundo Terreno (como dicho término se define en el Contrato de Novación). 
 
C. Por virtud del Contrato de Arrendamiento Financiero son arrendatarios con posibilidad de subarrendar el Primer Terreno (como dicho término se define en el Contrato de Novación) y el Edificio (como dicho término se define en el Contrato de Novación).
 
D. Mediante el Contrato de Promesa de Arrendamiento reconocieron el Primer Contrato de Arrendamiento, su Convenio Modificatorio y el Contrato de Novación y acordaron con Fasemex que éste (i) haría del conocimiento de FCA que los Señores Gil podrían sustituirlo posteriormente como sus arrendadores con relación al Contrato de Novación, (ii) solicitaría el consentimiento de FCA para la celebración del Contrato de Arrendamiento Financiero, (iii) el Contrato de Arrendamiento Financiero prevería expresamente el derecho de subarrendamiento de los Señores Gil en favor de FCA del Primer Terreno y el Edificio, y (iv) solicitaría a FCA la celebración del presente 
	 
 
 
VIII. 	On the date hereof, Fasemex and the Gils are entering into the termination of the Gils Lease Agreement, whereby, among other matters, they terminated such agreement for all legal purposes.
 
 
IX.  The parties agreed to update Exhibit “A”, Exhibit “B” and Exhibit “C” of the Novation Agreement, pursuant to the blueprints attached hereto and incorporated by means of this reference.
 
 
R E P R E S E N T A T I O N S
 
I.  Each of the Gils hereby represent and warrant, by on their own behalf, that:
 
A.They are individuals, of Mexican nationality, of legal age, married, with full authority to exercise their own rights and with sufficient and enough legal capacity to be bound by the terms of this First Amendment.

B.They own the Second Plot (as such term is defined in the Novation Agreement). 

C.By virtue of the Financial Lease Agreement, they are lessees with the right to sublease the First Plot (as such term is defined in the Novation Agreement) and the Building (as such term is defined in the Novation Agreement). 

D.Through the Promissory Lease Agreement, they acknowledged the existence of the First Lease Agreement, its Amendment Agreement and the Novation Agreement and agreed with Fasemex that Fasemex would (i) give notice to FCA that the Gils could subsequently replace Fasemex as its lessor under the Novation Agreement, (ii) request FCA’s consent to the execution of the Financial Lease Agreement, (iii) the Financial Lease Agreement would expressly contemplate the right upon the Gils to sublease to FCA the First Plot and the Building, and (iv) request FCA to execute this instrument to ratify that the Gils would become their sublessors.

 

   

   

   

  

   

  		
	instrumento para ratificar que los Señores Gil se convertirían en sus subarrendadores.
 
E. La Propiedad Arrendada (como dicho término se define en el Contrato de Novación) se encuentra libre de gravámenes, cargas, afectaciones o limitaciones de dominio de cualquier tipo y al corriente en el pago de todas las contribuciones gubernamentales que le son aplicables.
 
F.  Están registrados ante la Secretaria de Hacienda y Crédito Público, con el Registro Federal de Contribuyentes número GIBA6704248B7, GIBJ640213SP1 y GIBS720425663, respectivamente.
 
G. La Propiedad Arrendada (como dicho término se define en el Contrato de Novación) tiene un uso de suelo autorizado para fines industriales adecuado para el uso que FCA actualmente da y pretende dar en el futuro, de conformidad con las normas aplicables en Colonia California, Castaños, Coahuila de Zaragoza.
 
H.   Reconocen y han revisado el texto contenido en la cláusula 5.4 del Contrato de Novación que a la letra dice:
 
“5.4. 	Maquinaria y Equipo Introducida a la Propiedad Arrendada. El Arrendatario reconoce y conviene que toda maquinaria, equipo, mobiliario, vehículo y demás bienes que introduzca o instale en la Propiedad Arrendada, los introduce a su propio riesgo y en todo momento serán responsabilidad única y exclusiva del Arrendatario. Por consiguiente, el Arrendador no asume responsabilidad alguna por cualquier daño, robo o extravío que pudiera sufrir cualquiera de dichos bienes. El Arrendador reconoce que el Arrendatario es el propietario, o tiene la titularidad legal (de conformidad con los arrendamientos financieros y otro financiamiento en el curso normal de operaciones, u otro), sobre dicha maquinaria y equipo y, por lo tanto, el Arrendador no tiene ningún derecho sobre la maquinaria y el equipo, o cualquier otro bien introducido por el Arrendatario en la Propiedad Arrendada, incluso si dicha 
	 
 
 
 
 
 
E.  The Leased Property (as such term is defined in the Novation Agreement) is free of liens, encumbrances or any type of ownership limitations and has paid all applicable governmental taxes and levies.
 
 
 
F.  They are registered before the Ministry of Finance and Public Credit, with the Federal Taxpayers Registry number GIBA6704248B7, GIBJ640213SP1 and GIBS720425663, respectively. 
 
G.  The Leased Property (as such term is defined in the Novation Agreement) has a zoning land use authorized for industrial purpose adequate for FCA actual and intended use, in accordance with the applicable regulations in Colonia California, Castaños, Coahuila de Zaragoza. 
 
 
H.  They acknowledge the content and have reviewed clause 5.4 of the Novation Agreement that establishes the following:
 
“5.4 	Machinery and Equipment. Lessee acknowledges and agrees that all machinery, equipment, furniture, vehicles, manufactured goods and any other goods introduced to or installed by Lessee at the Leased Property, are introduced at its own risk and at all times they shall be the exclusive responsibility of Lessee. Therefore, Lessor shall not assume any liability whatsoever for any damage, theft or loss of any of such goods. Lessor acknowledges that Lessee is the owner, or has legal title (pursuant to capital leases and other financing in the 

   

   

   

  

   

  		
	maquinaria y equipo está adherido al piso. El Arrendador proporcionará inmediatamente, previa solicitud, las certificaciones necesarias y comunes que manifiesten que no existen gravámenes u otras cargas sobre dichos bienes, según lo solicite cualquier fuente de financiamiento del Arrendatario.”
 
I. La veracidad y exactitud de las declaraciones de FCA y de Fasemex contenidas en el capítulo de Declaraciones de este instrumento es uno de los motivos determinantes para la celebración del presente Primer Convenio y por medio del presente se ratifican. 
 
II. FCA, por medio de su representante legal, declara y garantiza que:
 
A.   Es una sociedad anónima de capital variable, legalmente constituida en México, según consta en la escritura pública número 31,100, de fecha 13 de septiembre de 2019, otorgada ante la fe del licenciado Emilio Cárdenas Estrada, notario público número 3, con ejercicio en la ciudad de Monterrey, Nuevo León, e inscrita en el Registro Público de Comercio de la Ciudad de México, bajo el folio número N-2019075492, con fecha 20 de septiembre de 2019.
 
B. Su representante legal goza de las facultades necesarias para la celebración de este Primer Convenio, sin que las mismas le hayan sido limitadas o modificadas de forma alguna.
 
 
C.	(a) Fasemex hizo de su conocimiento que los Señores Gil podrían sustituirlo posteriormente como sus arrendadores con relación al Contrato de Novación con respecto del Primer Terreno y el Edificio, (b) Fasemex solicitó y obtuvo su consentimiento para la celebración del Contrato de Arrendamiento Financiero, y (c) Fasemex le solicitó la celebración del presente instrumento para ratificar que los Señores Gil se convertirían en sus subarrendadores.
 
D.  Los recursos con los que hará frente a sus obligaciones derivadas del presente Primer 
	ordinary course of business, or other), on such machinery and equipment and thus, Lessor does not have any right on the machinery and equipment, or any other goods introduced by Lessee in the Leased Property, even if such machinery and equipment is attached to the floor.  Lessor shall provide promptly upon request customary acknowledgements of having no liens or other encumbrances on such assets, as may be requested by any financing source of Lessee.”
 
 
 
 
 
 
I.  The truthfulness and accuracy of the representations made by FCA and Fasemex in the Representations section of this First Amendment is one of the fundamental motives for the Gils to enter into this First Amendment and are hereby reaffirmed.
 
II. 	FCA, hereby represents and warrants, through its legal representative, that:
 
A.It is a corporation duly incorporated in Mexico, as shown in public deed number 31,100, dated September 13, 2019, granted before Mr. Emilio Cárdenas Estrada, notary public number 3, with authority in the city of Monterrey, Nuevo León, and recorded before the Public Registry of Commerce of México City, under folio number N-2019075492, on September 20, 2019.

B.Its legal representative has the necessary authority to enter into and execute this First Amendment, and that such authority has not been limited or amended in any manner whatsoever.

C.(a) Fasemex informed it that the Gils could subsequently replace Fasemex as its lessor 

   

   

   

  

   

  		
	Convenio provienen de fuentes lícitas conforme a lo establecido en la Ley Nacional de Extinción de Dominio y en los artículos 17 y 18 de la Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita.
 
E.	 Está registrada ante la Secretaría de Hacienda y Crédito Público, con el Registro Federal de Contribuyentes número FCA190913BC9.
 
F.  Por virtud del Contrato de Novación tiene la posesión de la Propiedad Arrendada (como dicho término se define en el Contrato de Novación) y por lo tanto conoce sus condiciones actuales y la ha inspeccionado debidamente.
 
G.	 Está de acuerdo en que los Señores Gil ahora sean sus arrendadores con relación al Segundo Terreno (como dicho término se define en el Contrato de Novación) y subarrendadores con relación al Primer Terreno (como dicho término se define en el Contrato de Novación) y el Edificio (como dicho término se define en el Contrato de Novación) de conformidad con los términos y condiciones del presente instrumento.
 
H.  La veracidad y exactitud de las declaraciones de los Señores Gil y de Fasemex contenidas en el capítulo de Declaraciones de este instrumento es uno de sus motivos determinantes para la celebración del presente Primer Convenio, y por medio del presente se ratifican.
 
III. Fasemex, por medio de su representante legal, declara y garantiza que:
 
A.  Es una sociedad debidamente constituida y existente conforme a las leyes de los Estados Unidos Mexicanos, según consta en la escritura pública número 93 de fecha 15 de marzo de 1996, otorgada ante la fe del licenciado Rafael Treviño Garza, notario público número 2, con ejercicio en la ciudad de Monclova, Coahuila e inscrita en el Registro Público de la Propiedad de Monclova, Coahuila, bajo el número de partida 3245, folio número 670, libro 51-3o, con fecha 22 de abril de 1996.
	under the Novation Agreement with respect to the First Plot and the Building, (b) Fasemex requested and obtained its consent to enter into the Financial Lease Agreement, and (c) Fasemex requested FCA to enter into this First Amendment to ratify that the Gils would become its sublessors. 

D.The resources with which it shall meet its obligations under this First Amendment come from lawful sources in accordance with the provisions of the National Law of Extinction of Ownership and Articles 17 and 18 of the Federal Law for the Prevention and Identification of Operations with Resources of Illicit Origin. 

E.It is registered before the Ministry of Finance and Public Credit, with the Federal Taxpayer Registry number FCA190913BC9.

F.By virtue of the Novation Agreement, it has possession of the Leased Property (as defined in the Novation Agreement) and therefore it knows its current conditions and it has duly inspected it.

G.It accepts that the Gils shall now become its lessors with respect to the Second Plot (as such term is defined in the Novation Agreement) and sublessors with respect to the First Plot (as such term is defined in the Novation Agreement) and the Building (as such term is defined in the Novation Agreement) in accordance with the terms and conditions hereof.

H.The truthfulness and accuracy of the representations of the Gils and Fasemex contained in the Representations chapter of this First Amendment is one of the fundamental motives for FCA to enter into this First Amendment and are hereby reaffirmed.

 
 
 
 
 
 
 
 
 
 
 
 
 
 

   

   

   

  

   

  		
	 
B.	Su representante legal goza de las facultades necesarias para la celebración de este Primer Convenio, sin que las mismas le hayan sido limitadas o modificadas de forma alguna, según consta en el poder general para actos de administración, otorgado mediante la escritura pública número 107, de fecha 28 de septiembre de 2004, otorgada ante la fe del licenciado Alejandro Coronado Rodríguez, notario público número 1, en ejercicio en la ciudad de Monclova, Coahuila.
 
C. Es propietario del Primer Terreno (como dicho término se define en el Contrato de Novación) y del Edificio (como dicho termino se define en el Contrato de Novación) mismos que dio en arrendamiento a FCA.
 
D. (a) Hizo del conocimiento de FCA que los Señores Gil podrían sustituirlo posteriormente como sus arrendadores con relación al Contrato de Novación, (b) solicitó y obtuvo el consentimiento de FCA para la celebración del Contrato de Arrendamiento Financiero, y (c) solicitó a FCA la celebración del presente instrumento para ratificar que los Señores Gil se convertirían en sus subarrendadores.
 
E.	Comparece a la celebración de este Primer Convenio para dar cumplimiento a lo estipulado en la cláusula 23.2 del Contrato de Novación en cuanto a que dicho contrato únicamente podrá ser modificado mediante instrumento por escrito debidamente firmado por Fasemex y FCA y para constituirse como obligado solidario y subsidiario para el cumplimiento de las obligaciones a cargo de los Señores Gil conforme al presente instrumento, incluyendo las cláusulas 8.1 y 9.4.
 
F.	 Está registrada ante la Secretaria de Hacienda y Crédito Público, con el Registro Federal de Contribuyentes número FSM960315HU0.
 
G.  La veracidad y exactitud de las declaraciones de los Señores Gil y de FCA contenidas en el capítulo de Declaraciones de este instrumento es uno de los motivos determinantes para la celebración del presente 
	 
III.  Fasemex, hereby represents and warrants, through its legal representative, that:
 
A.	It is a corporation duly incorporated and existing in accordance with the laws of the United Mexican States, as evidenced by public deed number 93 dated March 15, 1996, executed before the faith of Rafael Treviño Garza, notary public number 2, with authority in the city of Monclova, Coahuila and registered in the Public Registry of Property of Monclova, Coahuila, under item number 3245, folio number 670, book 51-3o, dated April 22, 1996.
 
 
B. 	Its legal representative has the necessary authority to enter into and execute this First Amendment, and that such authority has not been limited or modified in any manner whatsoever, as shown in the general power of attorney for acts of administration, granted by means of public deed number 107, dated September 28, 2004, granted before Mr. Alejandro Coronado Rodríguez, notary public number 1, with authority in the city of Monclova, Coahuila.
 
C. 	It is the owner of the First Plot (as such term is defined in the Novation Agreement), and the Building (as such term is defined in the Novation Agreement), which it leased to FCA.
 
 
D. 	 (a) It informed FCA that the Gils could subsequently replace it as its lessor under the Novation Agreement, (b) it requested and obtained FCA’s consent to enter into the Financial Lease Agreement, and (c) it requested FCA to enter into this First Amendment to ratify that the Gils would become its sublessors. 
 
 
 
 
E. It signs this First Amendment to comply with the provisions of clause 23.2 of the Novation Agreement, regarding the fact that such agreement may only be amended by means of a written instrument duly signed by Fasemex and FCA, and to remain jointly and severally 

   

   

   

  

   

  		
	Primer Convenio, y por medio del presente se ratifican.
 
IV.	 Las partes, por sus propios derechos y a través de su representante legal, respectivamente, declaran y garantizan que:
 
A.	 Es condición esencial y uno de los motivos determinantes de la voluntad de las partes al celebrar el presente Primer Convenio que la Renta (como dicho término se define en el Contrato de Novación) se denomine en Dólares (como dicho término se define en el Contrato de Novación). 
 
B.	 Reconocen que, no obstante, el hecho de que la Renta (como dicho término se define en el Contrato de Novación)  se denomina y expresa en Dólares (como dicho término se define en el Contrato de Novación), conforme al artículo 8 de la Ley Monetaria de los Estados Unidos Mexicanos, FCA podrá liberarse de su obligación de pago de la Renta (como dicho término se define en el Contrato de Novación)  entregando a los Señores Gil (o a quién sus derechos represente) el equivalente en Pesos (como dicho término se define en el Contrato de Novación)  al Tipo de Cambio (como dicho término se define en el Contrato de Novación).
 
C.  Reconocen que es condición esencial y uno de los motivos determinantes de la voluntad de las partes al celebrar el presente Primer Convenio, la capacidad de FCA para dar cumplimiento a sus obligaciones conforme a este Primer Convenio y que el Garante (como dicho término se define en el Contrato de Novación) modifica y otorga la Garantía (como dicho término se define en el Contrato de Novación) en favor de los Señores Gil.
 
Expuesto lo anterior, las partes se sujetan a las siguientes:
 
 
 
C L A U S U L A S
 
Cláusula 1. Modificación de la Cláusula 1 del Contrato de Novación.
 
	liable of the obligations of the Gils in accordance with this First Amendment, including clauses 8.1 and 9.4.
 
 
 
F. It is registered before the Ministry of Finance and Public Credit, with the Federal Taxpayer Registry number FSM960315HU0.
 
 
G.  The truthfulness and accuracy of the representations of the Gils and FCA contained in the Representations chapter of this First Amendment is one of the fundamental motives for Fasemex to enter into this First Amendment and are hereby reaffirmed.
 
 
IV.	The parties, hereby represent and warrant, on their own behalf and through their legal representatives, that:
 
A.It is a condition precedent and one of the fundamental motives for the parties to enter into and execute this First Amendment, for the Rent (as such term is defined in the Novation Agreement), to be payable in Dollars (as such term is defined in the Novation Agreement).

B.They acknowledge that, notwithstanding the fact that the Rent (as such term is defined in the Novation Agreement) is denominated and expressed in Dollars (as such term is defined in the Novation Agreement), pursuant to article 8 of the Monetary Law of the United Mexican States, FCA may be released from its obligation to pay the Rent (as such term is defined in the Novation Agreement) by delivering to the Gils (or to whom may represent their rights) the equivalent in Pesos (as such term is defined in the Novation Agreement) at the Exchange Rate (as such term is defined in the Novation Agreement).

C.They acknowledge that it is a condition precedent and one of the fundamental motives for the parties to enter into and execute this First Amendment, the capacity of FCA to fulfill its obligations hereunder and that Guarantor (as such term is defined in the Novation Agreement) signs and delivers the Guaranty (as such term is defined in the Novation 

   

   

   

  

   

  		
	Las partes acuerdan modificar la cláusula 1 del Contrato de Novación para modificar e incluir las siguientes definiciones en orden alfabético, resaltando el texto agregado y/o modificado en negrillas:
 
““Arrendador o Arrendadora”, significan los Señores Gil en su calidad de subarrendadores por lo que respecta al Primer Terreno y al Edificio y arrendadores por lo que respecta al Segundo Terreno.
 
“Arrendatario o Arrendataria”, significa FCA en su calidad de de subarrendatario por lo que respecta al Primer Terreno y al Edificio y arrendatario por lo que respecta al Segundo Terreno.
 
“Contrato de Arrendamiento de los Señores Gil”, tiene el significado que se le atribuye a dicho término en el antecedente I del Primer Convenio.
 
“Contrato de Arrendamiento Financiero”, tiene el significado que se le atribuye a dicho término en el antecedente IV del Primer Convenio.
 
“Contrato de Novación”, tiene el significado que se le atribuye a dicho término en el antecedente V del Primer Convenio.
 
“Contrato de Promesa”, tiene el significado que se le atribuye a dicho término en el antecedente IV del Primer Convenio.
 
“Convenio de Cesión de Deuda”, tiene el significado que se le atribuye a dicho término en el antecedente VII del Primer Convenio.
 
“Convenio Modificatorio”, tiene el significado que se le atribuye a dicho término en el antecedente III del Primer Convenio.
 
“Depósito de Garantía A”, significa la cantidad de USD $507,000.00 (quinientos siete mil dólares 00/100 Moneda de Curso Legal de los Estados Unidos de América).
 
	Agreement) in favor of the Gils.

 
 
 
 
 
 
Now Therefore, in consideration of the foregoing, the parties agree as follows:
 
 
 
C L A U S E S
 
Clause 1. Amendment of Clause 1 of the Novation Agreement. 
 
The parties agree to amend Clause 1 of the Novation Agreement in order to modify and include the following definitions in alphabetical order, highlighting in bold letters the added and/or modified text:
 
"Lessor", means the Gils as sublessors with respect to the First Plot and the Building and lessors with respect to the Second Plot.
 
 
 
"Lessee", means FCA as sublessee with respect to the First Plot and the Building and lessee with respect to the Second Plot.
 
 
 
“Gils Lease Agreement”, has the meaning ascribed to such term in recital I of the First Amendment.
 
 
"Financial Lease Agreement", has the meaning ascribed to such term in recital IV of the First Amendment.
 
 
"Novation Agreement", has the meaning ascribed to such term in recital V of the First Amendment.
 

   

   

   

  

   

  		
	“Deudas de los Depósitos”, tiene el significado que se le atribuye a dicho término en el antecedente VII del Primer Convenio.
 
“Fasemex”, significa Fabricaciones y Servicios de México, S.A de C.V.
 
“FCA”, significa FCA-Fasemex, S. de R.L. de C.V.
 
“Fecha de Inicio del Primer Convenio”, 5 de noviembre de 2021.
 
 
“Lugar de Pago”, tiene el significado que se le atribuye a dicho término en la cláusula 4.2 del Contrato de Novación, según se modifica conforme a este Primer Convenio.
 
“Opción de Compra del Arrendamiento Financiero”, tiene el significado que se le atribuye a dicho término en la cláusula 15 de este Primer Convenio.
 
“Porcentaje de Derechos”, tiene el significado que se le atribuye a dicho término en la cláusula 2.3 de este Primer Convenio.
 
“Porcentaje de Obligaciones”, tiene el significado que se le atribuye a dicho término en la cláusula 2.3 de este Primer Convenio.
 
“Porcentajes de Arrendador”, tiene el significado que se le atribuye a dicho término en la cláusula 2.3 de este Primer Convenio.
 
“Porcentajes del Arrendamiento Financiero”, tiene el significado que se le atribuye a dicho término en el antecedente V del Primer Convenio.
 
“Porcentajes de las Deudas”, tiene el significado que se le atribuye a dicho término en el antecedente VII del Primer Convenio.
 
“Primer Contrato de Arrendamiento”, tiene el significado que se le atribuye a dicho término en el antecedente II del Primer Convenio.
 
	“Promissory Agreement", has the meaning ascribed to such term in recital IV of the First Amendment.
 
"Debt Transfer Agreement", has the meaning ascribed to such term in recital VII of the First Amendment.
 
"Amendment Agreement", has the meaning ascribed to such term in recital III of the First Amendment.
 
"Security Deposit A", means the amount of USD $507,000.00 (five hundred and seven thousand dollars 00/100 of the United States of America).
 
“Debts of the Deposits”, has the meaning attributed to such term in recital VII of the First Amendment.
 
"Fasemex", means Fabricaciones y Servicios de México, S.A. de C.V.
 
"FCA", means FCA-Fasemex, S. de R.L. de C.V.
 
“Commencement Date of the First Amendment”, means November 5, 2021.
 
"Place of Payment", has the meaning ascribed to such term in Clause 4.2 of the Novation Agreement as amended pursuant to this First Amendment.
 
"Finance Lease Purchase Option", has the meaning ascribed to such term in Clause 15 of this First Amendment.
 
 
"Percentage of Rights", has the meaning ascribed to such term in Clause 2.3 of this First Amendment.
 
"Percentage of Obligations", has the meaning ascribed to such term in Clause 2.3 of this First Amendment.
 
"Percentages of Lessor", has the meaning ascribed to such term in Clause 2.3 of this First Amendment.

   

   

   

  

   

  		
	“Primer Convenio”, significa el presente convenio modificatorio al Contrato de Novación de fecha 5 de noviembre de 2021.
 
“Reembolso del Depósito de Garantía A”, tiene el significado que se le atribuye a dicho término en el antecedente VII del Primer Convenio.
 
“Reembolso del Depósito de Garantía B”, tiene el significado que se le atribuye a dicho término en el antecedente VII del Primer Convenio.
 
“Saldo del Depósito de Garantía A”, tiene el significado que se le atribuye a dicho término en el antecedente VII del Primer Convenio.
 
“Saldo del Depósito de Garantía B”, tiene el significado que se le atribuye a dicho término en el antecedente VII del Primer Convenio.
 
“Señores Gil”, significa en conjunto Salvador Gil Benavides, Alejandro Gil Benavides y Jesús Salvador Gil Benavides en conjunto.”
 
 
Cláusula 2.  Modificación a las Cláusulas 2.3 y 2.4 del Contrato de Novación. Las partes acuerdan modificar las cláusulas 2.3 y 2.4 del Contrato de Novación, resaltando el texto agregado y/o modificado en negrillas, para efectos de que a partir de esta fecha dichas cláusulas establezcan lo siguiente:
 
“2.3	Arrendamiento. Sujeto a los términos y condiciones de este Contrato, en este acto, los Señores Gil, en una proporción de 50.51% (cincuenta punto cincuenta y uno por ciento) en el caso de Alejandro Gil Benavides, 33.01% (treinta y tres punto cero uno por ciento) en el caso de Jesús Salvador Gil Benavides y 16.48% (dieciséis punto cuarenta y ocho por ciento), en el caso de Salvador Gil Benavides (los “Porcentajes de Arrendador”), le dan a FCA el uso y goce temporal de la Propiedad Arrendada, y FCA, a su vez, se obliga a pagar a los Señores Gil, en la proporción de los Porcentajes de Arrendador, la Renta a partir de la Fecha de Inicio del Primer Convenio.
	 
"Percentages of the Financial Lease", has the meaning ascribed to such term in recital V of the First Amendment.
 
 
"Percentages of Debts", has the meaning ascribed to such term in recital VII of the First Amendment.
 
"First Lease Agreement", has the meaning ascribed to such term in recital II of the First Amendment.
 
"First Amendment", means this first amendment agreement to the Novation Agreement dated November 5, 2021.
 
"Reimbursement of Security Deposit A", has the meaning ascribed to such term in recital VII of the First Amendment.
 
 
"Reimbursement of Security Deposit B", has the meaning ascribed to such term in recital VII of the First Amendment.
 
 
“Balance of Security Deposit A”, has the meaning attributed to such term in recital VII of the First Amendment.
 
“Balance of Security Deposit B”, has the meaning attributed to such term in recital VII of the First Amendment.
 
“Gils”, means jointly Salvador Gil Benavides, Alejandro Gil Benavides and Jesús Salvador Gil Benavides jointly.”
 
 
Clause 2. Amendment to Clauses 2.3 and 2.4 of the Novation Agreement. The parties agree to modify Clauses 2.3 and 2.4 of the Novation Agreement, highlighting in bold letters the text added and/or modified, for the purposes that from this date such clauses establish the following:
 
"2.3 Lease. Subject to the terms and conditions of this Agreement, the Gils hereby grant FCA 

   

   

   

  

   

  		
	 
Además de lo anterior, las partes acuerdan que (a) cada uno de los Señores Gil será titular, en la proporción de los Porcentajes de Arrendador, de los derechos provenientes del presente Contrato (el “Porcentaje de Derechos”) y también cada uno será obligado o deudor en esa misma proporción (el “Porcentaje de Obligaciones”), con excepción de los derechos y obligaciones plasmados en la cláusula 4.5 de este instrumento de los cuales solo son titulares y obligados los Señores Alejandro Gil Benavides y Salvador Gil Benavides en la proporción de los Porcentajes de las Deudas debiendo aplicar para este último caso la regla establecida en el inciso (b) siguiente y (b) no habrá responsabilidad subsidiaria ni solidaria entre los Señores Gil, para el cumplimiento del Porcentaje de Obligaciones que le corresponda a cada uno. 
 
Sin embargo, cada uno de los Señores Gil nombra y autoriza de manera irrevocable a los otros Señores Gil con relación a los derechos contemplados en el presente instrumento, de tal forma que el tenedor del 51% (cincuenta y uno por ciento) del Porcentaje de Derechos tenga facultades para vincular a los otros Señores Gil frente a FCA respecto de cualquier obligación, derecho o notificación, incluyendo respecto de la Clausula 4.5 del presente instrumento.
 
2.4	Entrega de Posesión. Fasemex por medio del Primer Contrato de Arrendamiento, el Convenio Modificatorio y el Contrato de Novación entregó a FCA la posesión de la Propiedad Arrendada. Las partes acuerdan expresamente que la aceptación por parte de FCA de la posesión de la Propiedad Arrendada es prueba suficiente de que FCA inspeccionó, recibió y aceptó la posesión de la Propiedad Arrendada en la condición en que estaba a la firma del Primer Contrato de Arrendamiento, el Convenio Modificatorio y el Contrato de Novación en los términos pactados en dichos instrumentos.”
 
Cláusula 3.  Modificación a las Cláusulas 4.1, 4.2, y 4.5 del Contrato de Novación. Las partes acuerdan modificar las cláusulas 4.1, 4.2, y 4.5 
	in a proportion of 50.51% (fifty point fifty-one percent) in the case of Alejandro Gil Benavides, 33.01% (thirty-three point zero one percent) in the case of Jesús Salvador Gil Benavides, and 16.48% (sixteen point forty-eight percent) in the case of Salvador Gil Benavides (the "Percentages of Lessor"), the temporary use and enjoyment of the Leased Property, and FCA, hereby agrees to pay the Gils, in proportion to the Percentages of Lessor, the Rent as of the Commencement Date of the First Amendment.
 
 
 
In addition to the foregoing, the parties agree that (a) each of the Gils shall be the owner, in proportion to the Percentages of Lessor, of the rights under this Agreement (the “Percentage of Rights”) and each one shall be also liable or debtor in the same proportion (the “Percentage of Obligations”), with the exception of the rights and obligations set forth in clause 4.5 of this agreement of which only Messrs. Alejandro Gil Benavides and Salvador Gil Benavides are owners and liable in the proportion of the Percentages of Debts, the rule established in subsection (b) below must apply in the latter case and (b) there shall be no joint or several liability among the Gils of the Percentage of Obligations that correspond to each one of them.
 
 
 
However, each of the Gils irrevocably appoints and authorizes each other of the Gils with respect to its rights hereunder, such that FCA may rely on the action of holders of 51% (fifty one percent) of the Percentage of Rights with respect to any obligation, right or notice of the Gils hereunder, including with respect to Section 4.5. hereof.
 
 
 
2.4 Delivery of Possession. Fasemex by means of the First Lease Agreement, the Amendment Agreement and the Novation Agreement delivered to FCA the possession of the Leased Property. The parties expressly agree that the 

   

   

   

  

   

  		
	del Contrato de Novación resaltando el texto agregado y/o modificado en negrillas, para efectos de que a partir de esta fecha dichas cláusulas establezcan lo siguiente:
 
“4.1	Monto, Forma y Fecha de Pago de la Renta.  (a) A partir de la Fecha de Inicio del Primer Convenio, FCA pagará a los Señores Gil, en la proporción de los Porcentajes de Arrendador, como contraprestación por el uso y goce de la Propiedad Arrendada una renta anual por la cantidad de USD $6.72 (seis Dólares 72/100) por pie cuadrado del Edificio, más el IVA, equivalente a USD $2’028,848.00 (dos millones veintiocho mil ochocientos cuarenta y ocho Dólares 00/100), más el IVA, la cual será pagadera mensualmente por el monto de USD $169,070.66  (ciento sesenta y nueve mil setenta Dólares 66/100), más el IVA, (b) a partir del 5o  (quinto) aniversario de la Fecha de Inicio, FCA pagará como contraprestación por el uso y goce de la Propiedad Arrendada una renta anual por la cantidad de USD $7.21 (siete Dólares 21/100) por pie cuadrado del Edificio, más el IVA, la cual será pagadera mensualmente, (c) a partir del 10o (décimo) aniversario de la Fecha de Inicio, FCA pagará como contraprestación por el uso y goce de la Propiedad Arrendada una renta anual por la cantidad de USD $7.64 (siete Dólares 64/100) por pie cuadrado del Edificio, más el IVA, la cual será pagadera mensualmente, y (d) a partir del 15o (décimo quinto) aniversario de la Fecha de Inicio, FCA pagará como contraprestación por el uso y goce de la Propiedad Arrendada una renta anual por la cantidad de USD $8.10 (ocho Dólares 10/100) por pie cuadrado del Edificio, más el IVA, la cual será pagadera mensualmente (las cantidades pagaderas bajo los incisos (a), (b), (c) y (d) anteriores, según se apliquen en cada uno de los cuatro periodos, en adelante la “Renta”). Las partes acuerdan que, en el caso de cualquier expansión futura al Edificio, los Señores Gil cobrarán cuando menos la misma renta pagadera por pie cuadrado, en los términos arriba indicados, dependiendo cual Renta sea la aplicable cuando la expansión se termine de construir; en el entendido que en caso que la expansión termine de construirse dentro de los primeros 5 (cinco) años de vigencia, la renta pagadera se 
	acceptance by FCA of the possession of the Leased Property is sufficient proof that FCA inspected, received and accepted the possession of the Leased Property in its “as is” condition at the execution of the First Amendment, the Amendment Agreement and the Novation Agreement in accordance with terms thereof.”
 
 
 
Clause 3. Amendment to Clauses 4.1, 4.2, and 4.5 of the Novation Agreement. The parties agree to modify clauses 4.1, 4.2, and 4.5 of the Novation Agreement, highlighting in bold letters, the text added and/or modified, for the purposes that from this date such clauses establish the following:
 
“4.1 Amount, Form and Date of Payment of the Rent. (a) Starting on the Commencement Date of the First Amendment, FCA shall pay to the Gils, in the proportion of the Percentages of Lessor, as consideration for the use and enjoyment of the Leased Property an annual rent of USD$6.72 (six Dollars 72/100) per square foot of the Building, plus the VAT, equivalent to USD  $2’028,848.00 (two million twenty eight thousand eight hundred forty eight Dollars 00/100), plus the VAT, which shall be payable on a monthly basis in the amount of USD $169,070.66 (one hundred sixty nine thousand seventy Dollars 66/100), plus the VAT, 
(b) starting on the 5th (fifth) anniversary of the Commencement Date, FCA shall pay, as consideration for the use and enjoyment of the Leased Property an annual rent of USD $7.21 (seven Dollars 21/100) per square foot of the Building, plus the VAT, which shall be payable on a monthly basis, (c) starting on the 10th (tenth) anniversary of the Commencement Date, FCA shall pay as consideration for the shall pay, as consideration for the use and enjoyment of the Leased Property an annual rent of USD $7.64 (seven Dollars 64/100) per square foot of the Building, plus the VAT, which shall be payable on a monthly basis, and (d) starting on the 15th (fifteenth) anniversary of the Commencement Date, FCA shall pay, as consideration for the use and enjoyment of the Leased Property an annual rent of USD $8.10 (eight Dollars 10/100) per square foot of the 

   

   

   

  

   

  		
	calculará a USD $6.80 (seis Dólares 80/100), y no USD $6.72 (seis dólares 72/100). 
 
Toda Renta la pagará FCA por mensualidades adelantadas, contra la entrega de las facturas con los requisitos fiscales aplicables y dentro de los primeros 10 (diez) días hábiles del mes por pagar; con excepción de la Renta del primer mes que se pagó en la fecha del Contrato de Novación.
 
Las partes entienden que históricamente han existido devaluaciones significativas en el valor del Peso frente al Dólar, por lo que, es previsible que, en el futuro existan nuevos cambios en la paridad. En esa eventualidad, FCA será responsable de tomar las providencias y medidas que, a su juicio, estime convenientes con el fin de minimizar su riesgo ante el supuesto previsible de una devaluación cambiaria, de tal forma que si FCA decide pagar en Pesos, en los términos de la Ley Monetaria, FCA pagará la cantidad necesaria para que los Señores Gil adquieran los mismos Dólares al tipo de cambio vigente en la fecha de cada pago, aunque tenga que pagar cantidades adicionales necesarias para compensar el diferencial en el Tipo de Cambio, de manera que los Señores Gil reciban en la fecha de pago la cantidad de Dólares convenida.
 
 
Por otra parte, es la intención de las partes que la Renta pagadera conforme al presente Contrato sea absolutamente neta para los Señores Gil a efecto que el presente Contrato produzca durante el Plazo, los rendimientos que éstos han calculado; por lo tanto, las partes expresamente convienen en que FCA (a) deberá cubrir el gasto y cualquier costo en relación con la propiedad y mantenimiento de la Propiedad Arrendada, (b) deberá pagar el impuesto predial de la Propiedad Arrendada, (c) deberá pagar las pólizas de seguro pactadas en la cláusula 13, y (d) no tendrá derecho a compensar o deducir cualquier cantidad de los pagos de Renta, con excepción de los montos establecidos en el presente instrumento referentes a la reducción de la Renta para reembolsar los Depósitos en Garantía, en los términos pactados en la cláusula 4.5. FCA en 
	Building, plus the VAT, which shall be payable on a monthly basis (the amounts payable under (a), (b), (c) and (d) above, as they apply in each of the four periods, hereinafter the “Rent”). The parties agree that for any future expansion the Gils shall charge at least the same rent payable per square footage, as stated above, depending on the Rent payable at the time such expansion is finally built; provided that with respect to such expansion finally being built in the first 5 (five) year period, such rent amount shall be calculated off of USD $6.80 (six Dollars 80/100), as opposed to USD $6.72 (six Dollars 72/100).
 
 
All Rents shall be paid by FCA in advance every month against the delivery of the invoice in compliance with the applicable tax regulations and within the first 10 (ten) business days of the month to pay; with the exception of the first month which was payable on the date of the Novation Agreement.
 
The parties understand that historically there have been significant devaluations in the value of the Peso versus the Dollar, so it is expected that in the future, there may be new changes in such exchange rates. In this eventuality, FCA shall be responsible for taking the providences and actions that, to its judgment, deems appropriate in order to minimize the risk in the predictable event of a currency devaluation, so that if FCA chooses to pay in Pesos, in terms of the Monetary Law, FCA shall pay the amount required by the Gils to acquire the same amount of Dollars at the exchange rate prevailing on the date of each payment, even if it needs to pay additional necessary amounts to compensate the difference in the Exchange Rate, so that the Gils shall receive, at the date of payment, the amount of Dollars agreed herein.
 
 
 
Moreover, it is the purpose of the parties that the Rent payable hereunder shall be absolutely net to the Gils so that this Agreement shall yield the calculated income during the Term; therefore, it is expressly agreed to by the parties that FCA shall (a) bear the cost and any and all 

   

   

   

  

   

  		
	este acto renuncia, de manera expresa e irrevocable, a cualquier derecho pedir reducciones de Renta o a retener el pago de la Renta previsto en el Código Civil Federal.
 
4.2	Lugar de Pago.  FCA pagará la Renta a través de transferencia electrónica de fondos a las cuentas a nombre de los Señores Gil, conforme a las siguientes instrucciones (el “Lugar de Pago”):
 
(a)Jesús Salvador Gil Benavides. 

 
i.Número de cuenta: 00448249008.

ii.CLABE: 012065004482490089.

iii.Banco: Bancomer. 

 
(b)Alejandro Gil Benavides. 

 
i.Número de cuenta: 60527879916.

ii.CLABE: 014068605278799165.

iii.Banco: Santander. 

 
(c)Salvador Gil Benavides. 

 
i.Número de cuenta: 00165284031.

ii.CLABE: 012068001652840317.

iii.Banco: Bancomer. 

 
No obstante, lo anterior, las partes acuerdan que los Señores Gil podrán notificarle por escrito a FCA, con al menos 30 (treinta) días naturales de anticipación, el cambio de parte o de la totalidad de las cuentas del Lugar de Pago, en el entendido que recibida dicha notificación FCA no requerirá solicitar confirmación alguna.
 
La Renta será pagada a los Señores Gil sin necesidad de aviso ni demanda y sin deducciones, retenciones o diferimientos de especie alguna.
 
Los Señores Gil no están obligados a aceptar pagos parciales de Renta y en caso de que lo hiciera, tal circunstancia no significará que hubiera habido modificación respecto de la forma y tiempo de pago convenida en este Contrato. Así mismo, si por cualquier eventualidad FCA paga a los Señores Gil la Renta en forma distinta a la estipulada en esta 
	costs and expenses relating the ownership and maintenance of the Leased Property, (b) pay the real estate tax of the Leased Property, (c) pay the insurance policies agreed to in clause 13, and (d) not be entitled to compensate or deduct any amount from the Rent, other than such amounts set forth herein with respect to the reduction of the Rents to reimburse the Security Deposits as discussed in clause 4.5. FCA hereby expressly and irrevocably waives the right to request reductions of the Rent or withhold the payment of the Rent established in the Federal Civil Code.
 
 
 
 
 
 
4.2 Place of Payment. FCA shall pay the Rent by electronic transfer of funds to the Gils accounts, pursuant to the following instructions (the “Place of Payment”):
 
 
(a)Jesus Salvador Gil Benavides. 

 
i.Bank Account Number: 00448249008.

ii.CLABE: 012065004482490089.

iii.Bank: Bancomer. 

 
(b)Alejandro Gil Benavides. 

 
i.Bank Account Number: 60527879916.

ii.CLABE: 014068605278799165.

iii.Bank: Santander. 

 
(c) Salvador Gil Benavides. 

 
i.Bank Account Number: 00165284031.

i.CLABE: 012068001652840317.

ii.Bank: Bancomer. 

 
Notwithstanding the foregoing, the parties agree that upon not less than 30 (thirty)  calendar days prior notice, the Gils may notify in writing FCA the change of some or all of the accounts as the Place of Payment and FCA may rely exclusively on such notice without further investigation.
 

   

   

   

  

   

  		
	cláusula, las partes no deberán entender por ello la modificación o novación del Contrato, el cual permanecerá en pleno vigor y efecto.
 
FCA está obligado a pagar la Renta y las demás contraprestaciones pactadas, a pesar de que no pueda ocupar o usar la Propiedad Arrendada por cuestiones fiscales, laborales, administrativas u otras que le sean atribuibles o hayan sido decididas por FCA.
 
(...) 
 
4.5	El Depósito en Garantía. Las partes en este acto reconocen que FCA depositó a Fasemex los Depósitos en Garantía y que por virtud del Convenio de Cesión de Deuda (a) FCA, Fasemex y los Señores Alejandro Gil Benavides y Salvador Gil Benavides reconocieron que Fasemex había reembolsado a FCA a la fecha del Convenio de Cesión de Deuda el Reembolso del Depósito de Garantía A y el Reembolso del Depósito de Garantía B, adeudando a FCA el Saldo del Depósito de Garantía A y el Saldo del Depósito de Garantía B, (b) Fasemex cedió a los Señores Alejandro Gil Benavides y Salvador Gil Benavides y éstos asumieron en la proporción de los Porcentajes de las Deudas, las Deudas de los Depósitos, (c) FCA, como acreedor de las Deudas de los Depósitos, consintió expresamente (i) la sustitución de Fasemex en su calidad de deudor de las Deudas de los Depósitos, siendo ahora los nuevos deudores los Señores Alejandro Gil Benavides y Salvador Gil Benavides, y (ii) que el pago de las Deudas de los Depósitos lo realicen los Señores Alejandro Gil Benavides and Salvador Gil Benavides conforme a lo establecido en el Convenio de Cesión de Deuda, y (d) Fasemex se constituyó como obligado solidario y subsidiario para el cumplimiento de la obligación de pago de las Deudas de los Depósitos. Derivado de lo anterior, FCA autoriza expresamente a los Señores Alejandro Gil Benavides and Salvador Gil Benavides a utilizar discrecionalmente los Depósitos en Garantía, y además a usarlos para cubrir, entre otros gastos, razonablemente documentados y previamente notificados a FCA (a) el pago de servicios, (b) las reparaciones que se tengan que realizar a la terminación del 
	 
The Rent shall be paid to the Gils without prior notice or demand and without deductions, withholdings or deferrals of any kind.
 
 
The Gils shall not have to accept partial Rent payments and if it does, such circumstance will not imply an amendment regarding the form and time of payment agreed to in this Agreement. Likewise, in the event that FCA pays the Rent to the Gils in a different way than that agreed to in this clause, the parties shall not interpret this as an amendment or novation of the Agreement, which will remain in full force and effect.
 
 
 
 
FCA shall continue paying the Rent and any other fees agreed, even in the event it does not occupy or use the Leased Property for tax, labor, administrative or other reasons whatsoever that are attributable to or have been decided by FCA.
 
(...)
 
4.5 The Security Deposit. The parties hereby acknowledge that FCA deposited to Fasemex the Security Deposits and that by virtue of the Debt Transfer Agreement (a) FCA, Fasemex and Messrs. Alejandro Gil Benavides and Salvador Gil Benavides acknowledged that Fasemex had reimbursed FCA as of the date of the Debt Transfer Agreement the Reimbursement of Security Deposit A and the Reimbursement of Security Deposit B, (b) Fasemex transferred to Messrs. Alejandro Gil Benavides and Salvador Gil Benavides and these assumed in the proportion of the Percentages of the Debts, the Debts of the Deposits, (c) FCA, as creditor of the Debts of the Deposits, expressly consents (i) to the substitution of Fasemex as debtor of the Debts of the Deposits, being Messrs. Alejandro Gil Benavides and Salvador Gil Benavides the new debtors hereinafter, and (ii) that the payment of the Debts of the Deposits shall be performed by Messrs. Alejandro Gil Benavides and Salvador Gil Benavides in accordance with the 

   

   

   

  

   

  		
	presente Contrato en caso de que el Contrato termine antes del vencimiento del plazo en que deban devolverse los Depósitos, (c) el pago de las pólizas de seguros, y (d) el pago de las cuotas de mantenimiento, si lo hubiere. Los Depósitos en Garantía en ningún momento deberán de considerarse como pago de Renta futura, ni como pago por adelantado de servicios o cualquier otro adeudo que pudiere tener FCA, en los términos del presente Contrato.
 
Sin perjuicio del uso de los Depósitos de Garantía por parte de los Señores Alejandro Gil Benavides and Salvador Gil Benavides para cualquier fin o para pagar los gastos establecidos en el párrafo anterior, los Señores Alejandro Gil Benavides and Salvador Gil Benavides y/o en su caso Fasemex reembolsarán a FCA el Saldo del Depósito de Garantía A y el Saldo del Depósito de Garantía B conforme a la fecha, forma y lugar de pago estipulados en el Convenio de Cesión de Deuda. En el caso de que los Señores Gil apliquen una parte de los Depósitos de Garantía para pagar cualquiera de los gastos establecidos en el párrafo anterior, el monto reembolsable de los Depósitos de Garantía se reducirá en consecuencia.
 
En ningún caso FCA estará obligado a reintegrar o reponer cualquier parte del Depósito en Garantía B.”
 
Cláusula 4.  Modificación a la Cláusula 8.1 del Contrato de Novación. Las partes acuerdan modificar la cláusula 8.1 del Contrato de Novación resaltando el texto agregado y/o modificado en negrillas, para efectos de que a partir de esta fecha dicha cláusula establezca lo siguiente:
 
“8.1	Mantenimiento de los Señores Gil. Los Señores Gil, a su propio costo y gasto, llevarán a cabo todas las reparaciones, la estructura de  muros, la estructura del techo (incluyendo los miembros de soporte, pero excluyendo el aislamiento de techos y la membrana), del Edificio, que sean necesarios; siempre y cuando dichas reparaciones (a) no sean imputables a FCA o sus Filiales, causahabientes, 
	terms of the Debt Transfer Agreement, and (d) Fasemex remains jointly and severally liable of the obligation to pay the Debts of the Deposits. Accordingly, FCA expressly authorizes Messrs. Alejandro Gil Benavides and Salvador Gil Benavides to use the Security Deposits at its own discretion and also to use them to cover, among other expenses, that are reasonably documented and following notice to FCA (a) the payment of services, (b) the repairs that must be made at the termination of this Agreement in the event the Agreement terminates prior to the expiration of the Security Deposit Term, (c) the payment of insurance policies, and (d) the payment of maintenance fees, if any. The Security Deposits shall not be considered at any time as payment of future Rent, nor as advance payment for services or any other debt that FCA may have, under the terms of this Agreement.
  
 
 
 
 
Without prejudice to the use of the Security Deposits by Messrs. Alejandro Gil Benavides and Salvador Gil Benavides to any end or to pay the expenses set forth above Messrs. Alejandro Gil Benavides and Salvador Gil Benavides and/or Fasemex, as the case may be, shall reimburse FCA for the Balance of Security Deposit A and the Balance of Security Deposit B in accordance with the date, form and place of payment established in the Debt Transfer Agreement. In the event that Lessor applies a portion of the Security Deposit to pay any of the expenses set forth in the previous paragraph, the reimbursable amount of the Security Deposit shall be reduced accordingly.
 
 
 
In no case shall FCA be obliged to refund or replace any part of Security Deposit B.”
 
 
Clause 4. Amendment to Clause 8.1 of the Novation Agreement. The parties agree to amend Clause 8.1 of the Novation Agreement, highlighting in bold letters, the text added 

   

   

   

  

   

  		
	subarrendatarios, contratistas subcontratistas, empleados, visitas, agentes, o cualquier Persona bajo su responsabilidad, por haber sometido estas áreas estructurales a cargas por encima de las cargas de diseño, y que el uso de estos elementos estructurales están siendo estrictamente utilizadas para el propósito para el cual fueron diseñadas, y (b) no sean imputables a la negligencia o mala fe de FCA o de sus Filiales, causahabientes, subarrendatarios, contratistas, subcontratistas, empleados, visitas, agentes, o cualquier Persona bajo su responsabilidad. FCA deberá notificar por escrito a los Señores Gil en un plazo que no excederá de 10 (días) días naturales a la fecha en que tenga conocimiento de los daños a la Propiedad Arrendada, la necesidad de que realice algún mantenimiento o reparación conforme a lo dispuesto por esta cláusula.
 
En este acto, Fasemex se constituye como obligado solidario y subsidiario para el cumplimiento de las obligaciones a cargo de los Señores Gil conforme a la presente cláusula 8.1.
 
Los Señores Gil y/o en su caso Fasemex realizarán los esfuerzos razonables para minimizar la interferencia con la actividad comercial de FCA en relación con el desempeño de cualquier trabajo descrito en esta cláusula.”
 
Cláusula 5.  Modificación a la Cláusula 9.4 del Contrato de Novación. Las partes acuerdan modificar la cláusula 9.4 del Contrato de Novación resaltando el texto agregado y/o modificado en negrillas, para efectos de que a partir de esta fecha dicha cláusula establezca lo siguiente:
 
“9.4	Ampliaciones del Edificio. En caso que FCA desee construir alguna ampliación en el Edificio que implique la construcción de pies cuadrados cubiertos bajo techo, las partes acuerdan someterse a lo siguiente:
 
(a) FCA deberá notificarlo por escrito a los Señores Gil, para que los Señores Gil, en un plazo de 30 (treinta) días naturales contados a 
	and/or modified, for the purposes that from this date such clause establish the following:
 
 
“8.1	Maintenance by the Gils. The Gils shall, at its own cost and expense, provide all repairs and replacements of Building foundations, the structure of walls and the structure of the roof (including the support members but without including the ceiling insulation and the membrane) that may be needed; provided that such repairs (a) are not imputable to FCA, its  Affiliates, successors, sub-lessees, contractors, subcontractors, employees, visitors, agents, or any Person under its responsibility, for subjecting this structural areas to loads over the designed loads, and that the use of these structural elements has been strictly used for the purpose for which they were designed, and (b) are not imputable to the gross negligence or bad faith of the FCA, its Lessee or its Affiliates, or Affiliates, successors, sub-lessees, contractors, subcontractors, employees, visitors, agents, or any Person under its responsibility. FCA must notify the Gils in writing within a period not exceeding 10 (ten) calendar days from the date it becomes aware of damage to the Leased Property, the need to perform any maintenance or repair in accordance with the provisions of this clause.
 
 
 
Fasemex shall hereby remain jointly and severally liable of the obligations of the Gils in accordance with this clause 8.1.
 
 
 
The Gils and or Fasemex, as the case may be, shall use reasonable efforts to minimize interference with FCA’s conduct of business in connection with Lessor’s performance of any work described in this clause.”
 
 
Clause 5. Amendment to Clause 9.4 of the Novation Agreement. The parties agree to modify clause 9.4 of the Novation Agreement, highlighting in bold letters, the text added 

   

   

   

  

   

  		
	partir de la fecha en que reciban la notificación, le comuniquen a FCA si tienen interés en fondear y construir la ampliación,
 
(b) En caso que los Señores Gil decidan construir la ampliación, las partes deberán negociar de buena fe los términos y condiciones comunes a esta clase de obras, por un periodo que no exceda los treinta (30) días, en el entendido que, la construcción será con las mismas características del Edificio actual para la manufactura de carros de ferrocarril. Además, en este caso los Señores Gil serán responsables de obtener todas las licencias, permisos y autorizaciones requeridas por las autoridades federales, estatales o municipales para realizar las construcciones mencionadas, incluyendo sin limitar, manifestaciones de impacto ambiental, informes preventivos, licencias de construcción, terminación de obra, avisos, autorización sanitaria de las autoridades laborales y cualquier otro estudio, permiso, licencia o autorización que requiera la Ley Aplicable a la Propiedad Arrendada o al tipo de obra o instalación a realizar por FCA en la Propiedad Arrendada, y las pólizas de seguros de responsabilidad y riesgo adecuadas para este tipo de obras. Antes del inicio de las obras correspondientes, los Señores Gil entregarán a FCA copias de la póliza de seguro y demás documentos antes mencionados. Asimismo, los Señores Gil mantendrán dichas licencias, permisos y autorizaciones, pólizas de seguro y demás documentos, vigentes durante el tiempo necesario para realizar las obras o instalaciones relacionadas a la ampliación del Edificio,
 
(c) FCA pagará a los Señores Gil, de conformidad con la cláusula 4.1, la cantidad anual de Renta por pie cuadrado de la superficie total de la expansión, pagadera en el momento en que dicha expansión esté terminada,
 
(d) FCA le pagará a los Señores Gil la renta por la ampliación de la misma forma pactada en la cláusula 4 de este Contrato, aplicable para el pago de la Renta, 
 
	and/or modified, for the purposes that from this date such clause establish the following:
 
 
“9.4	Expansions to the Building. In the event FCA wishes to build an expansion to the Building that imply the construction of under roof square footage, the parties hereto agree as follows:
 
(a) FCA shall give written notice to the Gils, so that the Gils, in a term of 30 (thirty) calendar days from the date it receives such notice, may let FCA know if they intend to fund and build such expansion,
 
(b) In the event that the Gils decides to build the expansion, the parties shall negotiate in good faith the terms and conditions common to these types of works for a period not to exceed thirty (30) days, provided however that, the construction shall be, of the same characteristics of the current Building for the manufacture of railcars. In addition, in this case the Gils shall be responsible to obtain all licenses, permits and authorizations required by the federal, state or municipal authorities to carry out the related constructions, including without limitation, environmental impact reports, preventive reports, construction licenses, construction termination notices, sanitary authorization by labor authorities and any other study, permit, license or authorization required by Applicable Law to the Leased Property or to the type of work or installation to be carried out by the FCA at the Leased Property, and the liability and risk insurance policies adequate for such kind of works. Before the commencement of the corresponding works, the Gils shall deliver to FCA copies of the insurance policy and other documents mentioned above. Likewise, the Gils shall maintain such licenses, permits and authorizations, certificate of insurance and other documents, in effect during the time necessary to carry out the related works or installations for the expansion of the Building,
 
 
 

   

   

   

  

   

  		
	(e) Los Señores Gil no están obligados a construir la ampliación, en cuyo caso, después del periodo de treinta (30) días siguientes a la recepción de la notificación anterior referida en el inciso (a) anterior, FCA estará automáticamente autorizado para construir la ampliación directamente. FCA no pagará renta alguna sobre la ampliación del Edificio y las obras que construya serán transferidas por accesión a los Señores Gil a la terminación por cualquier causa, y los Señores Gil no estarán obligados a pagar la ampliación o a reembolsar los gastos incurridos por FCA en la edificación de dichas obras.
 
(f) En caso de que FCA construya la ampliación de conformidad con esta cláusula será responsable de obtener todas las licencias, permisos y autorizaciones que se requieran de parte de las autoridades federales, estatales y/o municipales para llevar a cabo las construcciones de que se trate, incluyendo sin limitar, manifestaciones de impacto ambiental, informes preventivos, informes continuos, licencias de construcción, avisos de terminación de obra, licencias sanitarias, autorizaciones de autoridades laborales y cualquier tipo de estudio, permiso, licencia o autorización requerido por la Legislación Aplicable a la Propiedad Arrendada o al tipo de obra o instalación que FCA pretenda llevar a cabo dentro de ésta, así como de los seguros de responsabilidad y riesgos que sean adecuados a los trabajos de que se trate. Previo al inicio de los trabajos correspondientes, FCA se obliga a entregar a los Señores Gil, copias de las pólizas de seguros y demás documentos antes mencionados. Asimismo, FCA será responsable de mantener dichas licencias, permisos, autorizaciones, seguros y demás documentos vigentes durante el tiempo que sea necesario para llevar a cabo las obras o instalaciones de la ampliación del Edificio.
 
En este acto, Fasemex se constituye como obligado solidario y subsidiario para el cumplimiento de las obligaciones a cargo de los Señores Gil conforme a la presente cláusula 9.4.”
 
	(c) FCA shall pay the Gils, pursuant to clause 4.1, the annual amount of Rent per square foot of the total surface of the expansion, payable in the time such expansion is finished,
 
 
 
(d) FCA shall pay the Gils the rent payable for the expansion under the same terms set forth in clause 4 of this Agreement, applicable to the payment of the Rent,
 
 
 
(e) The Gils shall not be obligated to build the expansion, in which case, following the first thirty (30) day period following receipt of notice in subsection (a) above, FCA shall be automatically authorized to build the expansion directly. FCA shall pay no rent whatsoever over the expansion of the Building and the works that builds shall be transferred to the Gils. at the termination hereof for any reason whatsoever, and the Gils shall not be obligated to pay the expansion or to reimburse any expenses or costs incurred by FCA when building such works.
 
 
 
(f) In the event that FCA builds the expansion pursuant to this clause, then it shall be responsible to obtain all licenses, permits and authorizations required by the federal, state or municipal authorities to carry out the related constructions, including without limitation, environmental impact reports, preventive reports, construction licenses, construction termination notices, sanitary authorization by labor authorities and any other study, permit, license or authorization required by Applicable Law to the Leased Property or to the type of work or installation to be carried out by the FCA at the Leased Property, and the liability and risk insurance policies adequate for such kind of works. Before the commencement of the corresponding works, the Lessee shall deliver to the Gils. copies of the insurance policy and other documents mentioned above. Likewise, FCA shall maintain such licenses, permits and authorizations, certificate of insurance and other documents, in effect during the time 

   

   

   

  

   

  		
	Cláusula 6.  Modificación a la Cláusula 13.2 del Contrato de Novación. Las partes acuerdan modificar la cláusula 13.2 del Contrato de Novación resaltando el texto agregado y/o modificado en negrillas, para efectos de que a partir de esta fecha dicha cláusula establezca lo siguiente:
 
“13.2	Reglas Comunes a los Seguros. Las partes se someten a las siguientes reglas en materia de seguros:
 
(a) Las pólizas de seguro deberán obtenerse y acreditarse conforme a pólizas de seguro válidas y vigentes, emitidas por aseguradoras autorizadas para operar en México y razonablemente aceptables para los Señores Gil.
 
(b) Todas las pólizas de seguro citadas en esta Cláusula deberán designar a los Señores Gil como asegurados y/o beneficiarios preferentes en primer lugar en la proporción de los Porcentajes de Arrendador, Fasemex como asegurado adicional o beneficiario preferente en segundo lugar, y FCA como asegurado adicional o beneficiario preferente en tercer lugar; siendo en cada caso cubiertos sus intereses en la medida del interés asegurable de cada una de las partes.
 
Por virtud de la celebración del Contrato de Novación, FCA tramitó y obtuvo las pólizas de seguro citadas en esta Cláusula designando a Fasemex como asegurado y/o beneficiario preferente en primer lugar y a FCA como asegurado adicional o beneficiario preferente en segundo lugar,  por lo que las partes acuerdan que por virtud de la celebración del Primer Convenio, FCA tomará las medidas razonables para tramitar y obtener las modificaciones necesarias para que las pólizas de seguro en mención designen a los Señores Gil como asegurados y/o beneficiarios preferentes en primer lugar en la proporción de los Porcentajes de Arrendador, a Fasemex como asegurado adicional o beneficiario preferente en segundo lugar, a FCA como asegurado adicional o beneficiario preferente en tercer lugar y cumplan con todas las demás reglas establecidas en está clausula 13.2, en un 
	necessary to carry out the related works or installations for the expansion of the Building.
 
 
 
 
 
Fasemex shall hereby remain jointly and severally liable of the obligations of the Gils in accordance with this clause 9.4.”
 
 
 
Clause 6. Amendment to Clause 13.2 of the Novation Agreement. The parties agree to modify clause 13.2 of the Novation Agreement, highlighting in bold letters, the text added and/or modified, for the purposes that from this date such clause establish the following:
 
 
“13.2	Common Rules for Insurance. The parties submit to the following insurance rules:
 
 
(a) 	Any the insurance provided in this clause shall be obtained and evidenced under valid and enforceable policies issued by insurers authorized to do business in Mexico and reasonably acceptable to the Gils.
 
 
(b) 	All insurance policies provided in this clause shall designate the Gils as insured or beneficiary in first place in proportion of the Percentages of Lessor, Fasemex as additional insured or beneficiary in second place limited and FCA as additional insured or beneficiary in third place limited; in each case, as their interests may appear and to the extent of said party insurable interest.
 
 
 
By virtue of the execution of the Novation Agreement, FCA processed and obtained the insurance policies mentioned in this Clause designating Fasemex as insured or beneficiary in first place and FCA as additional insured or beneficiary in second place limited; therefore, the parties agree that by virtue of the execution 

   

   

   

  

   

  		
	plazo que no podrá exceder de 30 (treinta) días naturales contados a partir de la firma del Primer Convenio. 
 
(c) Las pólizas de seguro deberán contener cláusulas estándares de hipoteca en favor de los acreedores hipotecarios.
 
(d) Cada póliza de seguro deberá incluir (i) un compromiso de la compañía de seguros previendo que dicha póliza no será cancelada sin previo aviso a los Señores Gil con al menos 30 (treinta) días naturales de anticipación, (ii) que cualquier pérdida pagadera a los Señores Gil será totalmente pagada, no obstante que los Señores Gil hayan actuado de manera negligente o dolosa y que como resultado de dicha conducta se cancele total o parcialmente la póliza respectiva, y (iii) una renuncia a ejercer el derecho de subrogación por parte de la compañía de seguros, en favor de los Señores Gil.
 
(e) En caso de siniestro en la Propiedad Arrendada, que resulte en daños o destrucción al Edificio, FCA inmediatamente deberá notificar por escrito a los Señores Gil e inmediatamente iniciar con el procedimiento de ajuste de daños. 
 
(f) La suma de la indemnización del seguro, que se pagará como resultado por dicho daño o destrucción se pagará como se establece en el presente a fin de restaurar, reparar, reconstruir o remplazar la Propiedad Arrendada, en la medida de lo posible, a su valor, condición y característica original, inmediatamente antes de los daños o destrucción.”
 
 
Cláusula 7.  Modificación a las Cláusulas 14.1 14.2 y al segundo párrafo de la Cláusula 14.3 del Contrato de Novación. Las partes acuerdan modificar las cláusulas 14.1, 14.2 y el segundo párrafo de la cláusula 14.3 del Contrato de Novación resaltando el texto agregado y/o modificado en negrillas, para efectos de que a partir de esta fecha dichas cláusulas establezcan lo siguiente:
 
	of the First Amendment, FCA shall use reasonable efforts to process and obtain the necessary amendments so that the insurance policies mentioned in this Clause designate the Gils as insured or beneficiary in first place in the proportion of the Percentages of Lessor, Fasemex as additional insured or beneficiary in second place limited and FCA as additional insured or beneficiary in third place limited, and comply with all other rules set forth in this clause 13.2, within a term not to exceed 30 (thirty) calendar days from the date of execution of the First Amendment
 
 
 
 
(c) 	Insurance policies should contain standard clauses regarding mortgage in favor of mortgagees.
 
(d) 	Each insurance certificate shall contain (i) an agreement made by the insurance company, stating that such policy shall not be canceled without at least 30 (thirty) calendar days’ prior notice to the Gils, (ii) any loss payable to the Gils will be fully paid, even though the Gils has acted negligently or intentionally and as a result of such conduct the respective policy is canceled in whole or in part, and (iii) a waiver to exercise the right of subrogation by the insurance company, in favor of the Gils.
 
 
 
(e) 	In case of casualty to the Leased Property, which results in damage or destruction to the Building, FCA shall immediately give written notice to the Gils and immediately begin damage adjustment proceedings.
 
(f) 	The sum of the insurance moneys that are to be paid as a result of such damage or destruction shall be paid as set forth herein for the purpose of restoring, replacing, rebuilding or repairing the Leased Property as nearly as possible to its original value, condition and character, existing immediately prior to such damage or destruction.”
 
 

   

   

   

  

   

  		
	“14.1	Enajenación, Cargas y Gravámenes. (i) Fasemex y (ii) los Señores Gil tendrán la facultad de enajenar, cargar y/o gravar la Propiedad Arrendada (a) a Filiales, (b) después de un periodo de 5 (cinco) años a terceros con el consentimiento de FCA, el cual no deberá ser negado sin razón (en el entendido que transmisiones de propiedad a competidores y sus filiales, cuyo negocio principal es la manufactura de carros de tren y partes para los mismos, deberá considerarse razón suficiente para negar dicho consentimiento).
 
En todos los casos, Fasemex o los Señores Gil, según sea el caso, notificarán por escrito a FCA con 30 (treinta) días naturales de anticipación a la fecha en que surtirá efectos la transacción.  En el caso señalado en el inciso (a), la notificación bastará para que Fasemex o los Señores Gil, según sea el caso, ejecuten la operación. En el caso del inciso (b), dentro de ese plazo, FCA deberá otorgar su consentimiento o negarlo sustentando fundadamente las razones de su negativa.
 
En los casos en que proceda la celebración de la transacción, Fasemex o los Señores Gil, según sea el caso, incluirán en el documento donde se haga constar la operación una disposición que reconozca la existencia y duración del presente Contrato.
 
 
Si lo solicitan Fasemex o los Señores Gil, según sea el caso, FCA deberá, dentro de los 10 (diez) días hábiles siguientes a que Fasemex o los Señores Gil se lo soliciten por escrito, suscribir, reconocer y entregar a los Señores Gil un documento certificando que (a) una copia fiel y exacta de este Contrato se adjunta a dicho documento; (b) el presente Contrato se encuentra en pleno vigor y efecto y sin modificación alguna (o, en su caso, especificando la naturaleza de dicha modificación y adjuntando una copia de la misma); (c) la última fecha de pago de Renta realizado por FCA; (d) la ausencia de incumplimientos sin subsanar por parte de los Señores Gil (o, en su caso, una especificación de dichos incumplimientos, si los hubiere); y (e) cualquier otro asunto razonablemente 
	Clause 7. Amendment to Clauses 14.1, 14.2 and to the second paragraph of Clause 14.3 of the Novation Agreement. The parties agree to modify clauses 14.1, 14.2 and the second paragraph of clause 14.3 of the Novation Agreement, highlighting in bold letters, the text added and/or modified, for the purposes that from this date such clauses establish the following:
 
“14.1	Transfers, Charges and Levies. (i) Fasemex, and (ii) the Gils reserve the right to transfer, charge and/or encumber the Leased Property to (a) Affiliates, or (b) following an initial period of 5 (five) years, to third parties upon consent of FCA, which shall not be unreasonable withheld (provided that transfer to competitors and affiliates thereof, whose primary business is the manufacture of railcars and parts thereof, shall be consider reasonable reasons for withholding such consent).
 
 
In all cases, Fasemex or the Gils, as the case may be, shall give FCA in writing with thirty (30) calendar days prior to the date on which it shall take effect the transaction. In those cases, set forth in parentheticals (a), the written notice shall suffice for Fasemex or the Gils, as the case may be, to enter into the transaction. In the event set forth in parenthetical (b), within that term, FCA shall grant its consent or deny it properly supporting the reasons of its denial.
 
 
In those cases that the transaction takes place, Fasemex or the Gils, as the case may be, shall include in the corresponding instrument documenting the transaction a provision recognizing the existence and the duration of this Agreement.
 
 
If requested by Fasemex or the Gils, as the case may be, FCA shall, within ten (10) business days following the Fasemex or the Gils, as the case may be written request, execute, acknowledge and deliver to the Gils, as appropriate a document certifying that (a) a true and correct copy of this Agreement is attached to such document; (b) this Agreement 

   

   

   

  

   

  		
	requerido por Fasemex los Señores Gil, cualquier acreedor o posible acreedor de Fasemex o de los Señores Gil o posible adquirente de la Propiedad Arrendada.
 
Así mismo, FCA conviene, a solicitud de los Señores Gil, en subordinar este Contrato en términos mutuamente aceptables para las partes a toda garantía constituida sobre la Propiedad Arrendada (o cualquier parte de la misma), y deberá celebrar un convenio de subordinación razonablemente aceptable para los Señores Gil, según lo solicite por escrito cualquier acreedor o beneficiario de dicha garantía, dentro de los 15 (quince) días hábiles siguientes a dicha solicitud; en el entendido que dicho acreedor o beneficiario convenga en reconocer los derechos de FCA conforme a este Contrato, así como en no interrumpir la posesión, el uso y el goce de FCA respecto de la Propiedad Arrendada, en los términos del presente Contrato, sujeto a la condición consistente en que FCA esté en total cumplimiento de sus obligaciones conforme a este Contrato.
 
En todo caso, las partes quedan en el entendido que, de conformidad con las Leyes, este Contrato subsistirá en pleno vigor y efecto sobre cualquier transmisión de propiedad respecto de la Propiedad Arrendada o la ejecución de cualquier gravamen, a cargo de Fasemex y/o los Señores Gil, sobre la misma, y cualquier incumplimiento de pago de dichos gravámenes no afectará de modo alguno los términos de este Contrato. En caso que algún acreedor o beneficiario de garantía o cualquier otra Persona adquiera la Propiedad Arrendada derivado de algún procedimiento de ejecución o de cualquier otra forma, el acreedor, beneficiario o la Persona correspondiente deberá asumir las obligaciones de los Señores Gil conforme al presente Contrato y FCA conviene en reconocer al nuevo propietario de la Propiedad Arrendada.
 
En relación con el Contrato de Arrendamiento Financiero y para efectos de claridad, las partes reconocen que (i) una vez que los Señores Gil hayan ejercido la Opción de Compra del Arrendamiento Financiero y 
	is in full force and effect without amendment (or, where applicable, specifying the nature of the change and attaching a copy thereof); (c) the last date of payment of Rent by FCA; (d) the absence of uncured defaults by the Gils (or, where appropriate, a specification of such breaches, if any); and (e) any other matter reasonably required by Fasemex or the Gils, any creditor or potential creditor of Fasemex or the Gils or potential purchaser of the Leased Property.
 
 
 
In addition FCA agrees, at the request of the Gils, to subordinate this Agreement under mutually acceptable terms to the parties to any guarantee placed upon the Leased Property (or any portion thereof), and shall execute into a subordination agreement reasonably acceptable to the Gils as requested in writing by any creditor or beneficiary of said guarantee, within 15 (fifteen) business days following said request; provided that such creditor or beneficiary agrees to recognize the FCAs rights under this Agreement and to not disturb the possession, use and enjoyment of FCA with respect to the Leased Property, under this Agreement subject to the condition that FCA continues to perform its obligations hereunder.
 
 
 
 
 
In any case, the parties are in the understanding that in accordance with the Laws, this Agreement shall remain in full force and effects regarding any transfer of ownership of the Leased Property or the execution of any charge, by Fasemex and/or the Gils, thereon, and any default on those charges shall not affect in any way the terms of this Agreement.  If any creditor or beneficiary of a guarantee or any other Person acquires the Leased Property as a result of an enforcement proceeding or otherwise, the creditor, beneficiary or Person concerned must assume the obligations of the Gils hereunder and FCA agrees to recognize the new owner of the Leased Property.
 

   

   

   

  

   

  		
	hayan adquirido la propiedad del Primer Terreno y el Edificio, se convertirán automáticamente en arrendadores, y FCA en arrendataria, respecto de los mismos, reconociendo la existencia, términos y duración del presente Contrato; y (ii) en caso de que el Contrato de Arrendamiento Financiero se dé por terminado de manera anticipada por incumplimiento, o bien por cualquier razón los Señores Gil no ejerzan la Opción de Compra del Arrendamiento Financiero, o por cualquier otra razón la propiedad del Primer Terreno y el Edificio no sea transferida a los Señores Gil, el presente Contrato subsistirá en sus términos y duración convirtiéndose Fasemex en  Arrendador y FCA en Arrendatario respecto del Primer Terreno y el Edificio.
 
14.2	Cesión de los Señores Gil.  Los Señores Gil se reservan el derecho de ceder, en todo o en parte, sus derechos bajo este Contrato  a (a) Filiales, o (b) después de un periodo de 5 (cinco) años, a terceros, incluyendo sin limitar fideicomisos patrimoniales, con el consentimiento de FCA, el cual no deberá ser negado sin razón (en el entendido que transmisiones de propiedad a competidores y sus filiales, cuyo negocio principal es la manufactura de carros de tren y partes para los mismos, deberá considerarse razón suficiente para negar dicho consentimiento).
 
En todos los casos, los Señores Gil notificarán por escrito a FCA con 30 (treinta) días naturales de anticipación a la fecha en que surtirá efectos la transacción. En el caso señalado en el inciso (a), la notificación bastará para que los Señores Gil ejecuten la operación. En el caso del inciso (b), dentro de ese plazo, FCA deberá otorgar su consentimiento o negarlo sustentando fundadamente las razones de su negativa.
 
14.3 Cesión y Subarrendamiento del Arrendatario.
 (...)
 
El Arrendatario en este acto renuncia, de manera expresa e irrevocable, a sus derechos de subarrendar la Propiedad Arrendada o solicitar 
	 
 
 
 
In connection with the Financial Lease Agreement and for clarity purposes, the parties acknowledge that (i) once the Gils have exercised the Financial Lease Purchase Option have acquired the property of the First Plot and the Building, will automatically become lessors and FCA will become lessee, with respect to them, acknowledging the existence, terms and duration of this Agreement; and (ii) in the event that the Financial Lease Agreement is early terminated due to an event of default, or the Gils do not exercise the Financial Lease Purchase Option for any reason, or for any other reason the property of the First Plot and the Building is not transferred to the Gils, this Agreement shall subsist in its terms and duration, becoming Fasemex the Lessor and FCA the Lessee with respect to the First Plot and the Building.     
 
 
 
 
14.2	Assignment by the Gils. the Gils reserves the right to assign, in whole or in part, its rights under this Agreement to (a) Affiliates, or (b) following an initial period of 5 (five) years, to third parties, including without limitation, estate trusts, upon consent of FCA, which shall not be unreasonable withheld (provided that transfer to competitors and affiliates thereof, whose primary business is the manufacture of railcars and parts thereof, shall be consider reasonable reasons for withholding such consent).
 
 
In all cases, the Gils shall give FCA in writing with thirty (30) calendar days prior to the date on which it shall take effect the transaction. In this case set forth in parenthetical (a), the written notice shall suffice for the Gils to enter into the transaction. In the event set forth in parenthetical (b) above, within that term, FCA shall grant its consent or deny it properly supporting the reasons of its denial.

   

   

   

  

   

  		
	la rescisión del presente Contrato si el Arrendador se opone a que el Arrendatario otorgue en subarrendamiento la misma, previstos en el Código Civil Federal. En ese sentido, a menos que la cesión o subarrendamiento sea de los autorizados en el primer párrafo de esta cláusula 14.3, la Arrendataria no podrá ceder los derechos derivados de este contrato y/o subarrendar la Propiedad Arrendada a terceros sin el consentimiento del Arrendador otorgado por escrito el cual no podrá ser negado injustificadamente.  En caso que el Arrendador lo autorice (a) la Arrendataria se obliga a incluir en el documento donde se haga constar la transacción una disposición que reconozca la existencia y Plazo del presente Contrato,  (b) la relación contractual entre los Señores Gil y el Arrendatario se mantendrá en pleno vigor y la nueva subarrendataria no sustituirá a la Arrendataria en su relación contractual con los Señores Gil, y (c) la Arrendataria se compromete en mantener en paz y salvo e indemnizar a los Señores Gil por cualquier reclamación, demanda, acción, daño o perjuicio en contra de los Señores Gil causado directa o indirectamente por la nueva subarrendataria.
 
(...)”
 
Cláusula 8.  Modificación a la Cláusula 15 del Contrato de Novación. Las partes acuerdan modificar la cláusula 15 del Contrato de Novación resaltando el texto agregado y/o modificado en negrillas, para efectos de que a partir de esta fecha dicha cláusula establezca lo siguiente:
 
“Cláusula 15. 	Derecho de Preferencia por el Tanto.
 
FCA reconoce que por virtud del Contrato de Arrendamiento Financiero los Señores Gil tendrán el derecho de realizar la compra del Primer Terreno y el Edificio, en copropiedad, al finalizar la vigencia de dicho contrato o cuando las partes acuerden el vencimiento anticipado del mismo y una vez que se hayan cumplido todas y cada una de las obligaciones 
	 
 
14.3	Assignment and Subletting by Lessee. (...)
 
 
Lessee hereby, expressly and irrevocably waives its right to sublease the Leased Property or request the termination of this Agreement if Lessor opposes to the sublease by Lessee established in the Federal Civil Code. In that regard, unless the assignment or sublease is authorized per the first paragraph of this clause 14.3, Lessee shall not assign the rights under this contract and/or sublease the Leased Property to third parties without the written consent of Lessor which shall not be unreasonably withheld. If authorized by Lessor (a) Lessee shall include in the document where the transaction shall be executed, a provision recognizing the existence and the Term of this Agreement, (b) the legal relationship between the Gils and Lessee shall remain in full force and effect and the new sublessee shall not substitute Lessee in its legal relationship with the Gils, and (c) Lessee shall hold harmless and indemnify the Gils for any claim, demand, lawsuit o damage against the Gils derived directly or indirectly from the new sublessee.
 
(...)”
 
 
 
 
 
 
 
 
 
Clause 8. Amendment to Clause 15 of the Novation Agreement. The parties agree to modify clause 15 of the Novation Agreement, highlighting in bold letters, the text added and/or modified, for the purposes that from this date such clause establish the following:
 
 
“Clause 15. 	Right of First Refusal.
 
 

   

   

   

  

   

  		
	de dicho contrato (la “Opción de Compra del Arrendamiento Financiero”).
 
Derivado de lo anterior, FCA en este acto mantiene expresamente el derecho de preferencia por el tanto, respecto del Primer Terreno y el Edificio solo en caso de que los Señores Gil no ejerzan la Opción de Compra del Arrendamiento Financiero y Fasemex enajene el Primer Terreno y/o el Edificio respectivamente, total o parcialmente, a tercero alguno.
 
En caso de que los Señores Gil ejerzan la Opción de Compra del Arrendamiento Financiero, y se conviertan en arrendadores puros con respecto a FCA sobre el Primer Terreno y el Edificio, en este acto los Señores Gil aceptan y reconocen que en ese momento FCA adquirirá el derecho de preferencia por el tanto cuando los Señores Gil enajenen el Primer Terreno y/o el Edificio, total o parcialmente, a tercero alguno. Lo anterior, en el entendido que este derecho de preferencia por el tanto no aplicará si los Señores Gil enajenan el Primer Terreno y/o el Edificio, total o parcialmente entre ellos o a alguna de sus Filiales. 
 
Respecto del Segundo Terreno, FCA en este acto mantiene expresamente el derecho de preferencia por el tanto cuando los Señores Gil enajenen el Segundo Terreno, total o parcialmente, a tercero alguno. Lo anterior, en el entendido que este derecho de preferencia por el tanto no aplicará si los Señores Gil enajenan el Segundo Terreno, total o parcialmente entre ellos o a alguna de sus Filiales.”
 
Cláusula 9.  Modificación a la Cláusula 20.1 del Contrato de Novación. Las partes acuerdan modificar la cláusula 20.1 del Contrato de Novación resaltando el texto agregado y/o modificado en negrillas, para efectos de que a partir de esta fecha dicha cláusula establezca lo siguiente:
 
“20.1	Fianza Solidaria. Simultáneamente con la firma del Primer Convenio, los Señores Gil, FCA y el Garante firmarán la modificación 
	FCA acknowledges that by virtue of the Financial Lease Agreement, the Gils shall have the right to purchase the First Plot and the Building, in co-ownership, at the end of the term of such agreement or when the parties agree upon the early termination of such agreement and once each and every obligation under such agreement has been fulfilled (the "Financial Lease Purchase Option").
 
 
 
As a result of the foregoing, FCA hereby expressly retains the right of first refusal, with respect to the First Plot and the Building, if the Gils do not exercise the Financial Lease Purchase Option and Fasemex transfer the First Plot and the Building and/or the Second Plot, respectively, in whole or in part, to a third party.
 
 
In the event that the Gils exercise the Financial Lease Purchase Option and become lessors of FCA with respect to the First Plot and the Building, the Gils hereby accept and acknowledge that in such time FCA will have the right of first refusal if the Gils transfer the First Plot and/or the Building, in whole or in part, to a third party. The foregoing, in the understanding that this right of first refusal will therefore not apply if the Gils transfer the First Plot and / or the Building, in whole or in part, between them or to any of their Affiliates.
 
 
 
 
With respect to the Second Plot, FCA hereby expressly retains the right of first refusal if the Gils transfer the Second Plot, in whole or in part, to a third party. The foregoing, in the understanding that this right of first refusal will therefore not apply if the Gils transfer the Second Plot, in whole or in part, between them or to any of their Affiliates.”
 
 
 
Clause 9. Amendment to Clause 20.1 of the Novation Agreement. The parties agree to 

   

   

   

  

   

  		
	a la Garantía para incluir a los Señores Gil como partes garantizadas, en los términos del instrumento que se adjunta al presente como Anexo “A” y que a partir de la firma del presente instrumento formara parte del Anexo “D” del Contrato de Novación. Dicha Garantía deberá ser exigible hasta la Fecha de Terminación.”
 
Cláusula 10.  Modificación a la Cláusula 21.2 del Contrato de Novación, inciso (e). Las partes acuerdan modificar el inciso (e) de la cláusula 21.1. resaltando el texto agregado y/o modificado en negrillas, para efectos de que a partir de esta fecha dichas cláusulas establezcan lo siguiente: 
 
“21.2 Incumplimiento del Arrendatario. (...)
 
(e) Si el Arrendatario subarrienda la Propiedad Arrendada a terceros en contravención a lo establecido en el presente Contrato.”
 
Cláusula 11.  Modificación a las Cláusulas 23.4 y 23.12 del Contrato de Novación. Las partes acuerdan modificar las cláusulas 23.4 y 23.12 del Contrato de Novación resaltando el texto agregado y/o modificado en negrillas, para efectos de que a partir de esta fecha dichas cláusulas establezcan lo siguiente: 
 
“23.4	Notificaciones. Las partes señalan como sus respectivos domicilios convencionales para toda clase de avisos y notificaciones, incluyendo sin limitar interpelaciones judiciales y emplazamientos a juicio relacionados o derivados de este Contrato, mismas que solamente surtirán efectos si se efectúan en persona, por correo certificado con acuse de recibido o de manera fehaciente por conducto de un fedatario público o de la autoridad judicial competente, los siguientes:
 
Los Señores Gil: 
 
Jesús Salvador Gil Benavides, Alejandro Gil Benavides y Salvador Gil Benavides
Carretera 57 Km 178
Castaños, Coahuila, 25780 México
 
FCA:
	modify clause 20.1 of the Novation Agreement, highlighting in bold letters, the text added and/or modified, for the purposes that from this date such clause establish the following:
 
 
“20.1	Guarantee. Simultaneously with the execution of the First Amendment, the Gils, FCA and Guarantor shall sign the amendment to the Guaranty to include the Gils as guaranteed parties, in the terms of the document attached hereto as Exhibit “A” and that as of the execution of this First Amendment, it shall form part of Exhibit “D” of the Novation Agreement. This guarantee shall be enforceable up to the Termination Date.”
 
Clause 10. Amendment to Clause 21.2, section (e) of the Novation Agreement. The parties agree to modify section (e) of clause 21.2 of the Novation Agreement, highlighting in bold letters, the text added and/or modified, for the purposes that from this date such clauses establish the following:
 
“21.2  Defaults by Lessee. (...)
 
(e) If Lessee subleases the Leased Property to third parties, in contravention to the provisions of this Agreement.”
 
Clause 11. Amendment to Clauses 23.4 and 23.12 of the Novation Agreement. The parties agree to modify clauses 23.4 and 23.12 of the Novation Agreement, highlighting in bold letters, the text added and/or modified, for the purposes that from this date such clauses establish the following:
 
“23.4	Notices. The parties hereby provide as their conventional domicile for any kind of communications and notices, including but not limited to judicial inquiries and emplacements to trial related or under this Agreement, which shall only be binding if delivered in person, by certified mail return receipt requested, or evidenced by a “Fedatario Público” or competent judicial authority, the following:
 
 

   

   

   

  

   

  		
	 
FCA-Fasemex, S. de R.L. de C.V
Tepic 1100, Colonia California,
Castaños, Coahuila, México
 
 
Fasemex: 
 
Fabricaciones y Servicios de México SA de CV.
Carretera 57 Km 178
Castaños, Coahuila, 25780 México
 
(...)
 
 
23.12	Lugar de Cumplimiento de Obligaciones. Las partes señalan como lugar de cumplimiento de las obligaciones pactadas en este Contrato, los domicilios convencionales mencionados en la cláusula 23.4; en el entendido que FCA deberá cumplir sus obligaciones en los domicilios de los Señores Gil y de Fasemex, los Señores Gil deberán cumplir sus obligaciones en los domicilios de FCA y de Fasemex y Fasemex deberá cumplir sus obligaciones en los domicilios de los Señores Gil y de FCA, sin necesidad de requerimiento o interpelación judicial.”
 
Cláusula 12.  Apéndice 4.5 (b). Las partes acuerdan dejar sin efectos el apéndice 4.5 (b) del presente Contrato.
 
Cláusula 13. Disposiciones Generales.
 
13.1 Relación de las Partes. Salvo por lo dispuesto en el presente Primer Convenio las partes acuerdan que la relación entre las mismas continuará regida por las disposiciones del Contrato de Novación en todas sus partes.
 
 
13.2 No Novación. Las partes acuerdan que la celebración del presente Primer Convenio no significa Novación del Contrato de Novación.
 
 
13.3 Encabezados. Las partes convienen en que los encabezados contenidos en este Primer Convenio se insertan exclusivamente para referencia y no se considerarán como parte del 
	 
The Gils:
 
Jesús Salvador Gil Benavides, Alejandro Gil Benavides y Salvador Gil Benavides
Carretera 57 Km 178
Castaños, Coahuila, 25780 México
 
FCA:
 
FCA-Fasemex, S. de R.L. de C.V
Tepic 1100, Colonia California,
Castaños, Coahuila, México
 
 
Fasemex: 
 
Fabricaciones y Servicios de México SA de CV.
Carretera 57 Km 178
Castaños, Coahuila, 25780 México
 
(...)
 
 
23.12	Place to Fulfill Obligations. The parties hereby designate as a place of fulfillment of the obligations agreed herein, the conventional addresses mentioned in clause 23.4; in the understanding that FCA shall fulfill its obligations at the address of the Gils and Fasemex, the Gils shall fulfill its obligations at the address of FCA and Fasemex and Fasemex shall fulfill its obligations in the address of the Gils and FCA, without request or judicial interpellation.”
 
 
 
Clause 12. Schedule 4.5 (b). The parties agree to cancel Schedule 4.5 (b) of this Agreement.
 
 
Clause 13. 	Miscellaneous.
 
13.1 Relationship of the Parties. Except as provided in this First Amendment, the parties hereby agree that the relationship between them shall continue to be governed by the provisions of the Novation Agreement in all its parts.
  
 

   

   

   

  

   

  		
	mismo ni se utilizarán para definir, interpretar o limitar el contenido del Contrato.
 
13.4 Ley Aplicable. Este Contrato estará sujeto y se regirá por la legislación federal mexicana, incluyendo sin limitar el Código Civil Federal.
 
13.5 Obligaciones de Fasemex. Nada de lo pactado en el presente instrumento libera al arrendador original (Fasemex) de sus obligaciones y se mantendrá como obligado solidario de los Señores Gil. Lo dispuesto en el presente instrumento no constituye liberación de reclamación alguna que exista a esta fecha en contra del Arrendador. 
 
 
El presente Primer Convenio se firma el día 5 de noviembre de 2021, en la ciudad de Castaños, Coahuila.
 
	13.2 No Novation. The parties hereby agree that the execution of this First Amendment shall not constitute a novation of the Novation Agreement.
  
13.3 Headings. The parties hereby agree that the headings contained herein are provided for convenience only and they shall not be deemed to be part, define, interpret or limit the content of the First Agreement.
   
 
13.4 Governing Law. This First Amendment shall be subject to and governed by the Mexican federal law, including the Federal Civil Code.
 
13.5 Fasemex Continuing Obligations.  Nothing herein shall release original Lessor (Fasemex) from any obligations and it shall remain joint and severally liable with the Gils.  Nothing herein shall constitute a waiver of any claims existing as of the date hereof against Lessor.
 
 
 
 
 
This First Amendment is executed on November 5, 2021, in the city of Castaños, Coahuila.

	 
	 

   

   

   

   

   

  

   

  			
	 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

	 
 
/s/ Alejandro Gil Benavides
	 
 
/s/ Jesus Salvador Gil Benavides
	 
 
/s/ Salvador Gil Benavides

	ALEJANDRO GIL BENAVIDES
	JESUS SALVADOR GIL BENAVIDES
	SALVADOR GIL BENAVIDES

	 
 
 
 

	 
 

   

   

  			
	 
	 
 
/s/ James R. Meyer
	 

	 
	FCA FASEMEX, S. DE R.L. DE C.V.
REPRESENTADA POR: JAMES R. MEYER
	 

	 
	 
	 

	 
	/s/ Alejandro Gil Benavides
	 

	 
	FABRICACIONES Y SERVICIOS 
DE MEXICO, S.A. DE C.V.
REPRESENTADA POR: ALEJANDRO GIL BENAVIDES
	 

   

   

   

   

   

  

   

  TESTIGOS:

   

   

  			
	/s/ Alberto Delgadillo Prado
	 
	/s/ Cinthia Eloísa Chacón Gutiérrez

	Alberto Delgadillo Prado
	 
	Cinthia Eloísa Chacón Gutiérrezex_347921.htm

Exhibit 10.1

 

CERTAIN CONFIDENTIAL INFORMATION, IDENTIFIED BY BRACKETED ASTERISKS “[*****]”, HAS BEEN OMITTED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

 

 

FUEL SALES AGREEMENT

 

This Fuel Sales Agreement (this “Agreement”), is entered into as of March 16, 2022 (the “Effective Date”) and is made by and between GEVO, INC., a Delaware corporation (“Seller”) and DELTA AIR LINES, INC., a Delaware corporation (“Buyer”). Each of Seller and Buyer is referred to herein as a “Party” and collectively are referred to herein as the “Parties.” Capitalized terms not otherwise defined in this Agreement shall have the respective meanings assigned to them in the General Terms and Conditions (as defined in Section 1.1 below).

 

WHEREBY THE PARTIES AGREE AS FOLLOWS:

 

	
			Article 1 

				
			− Scope

			

 

	
			1.1

				
			Subject to and in accordance with the general terms and conditions that are incorporated herein by reference and attached hereto as Annex I (the “General Terms and Conditions”), Seller agrees to sell and deliver or cause to be sold and delivered, and Buyer agrees to purchase, pay for and receive, or cause to be received, the Fuel for consumption in Buyer’s Aircraft as detailed in the Location Agreements.

			

 

	
			1.2

				
			The Parties intend for this Agreement to replace that certain Fuel Sales Agreement (the “2019 FSA”), dated as of December 11, 2019, by and between Buyer and Seller, in its entirety, and, as of the Effective Date, the 2019 FSA is hereby terminated and neither Party shall have any liability or obligation thereunder.

			

 

	
			1.3

				
			In the event of an irreconcilable conflict between this Fuel Sales Agreement and its Annexes, and unless expressly stated otherwise, the following rules shall apply:

			

 

	 	
			a.

				
			This Agreement shall prevail over its Annexes, save that, if Annex I addresses a topic not expressly addressed in the Agreement, then Annex I shall prevail in relation thereto and its provisions shall not be diminished by the Agreement. Subject to the foregoing, to the extent that this Agreement supplements the requirements prescribed in Annex I, no conflict shall be deemed to exist, and the provisions of this Agreement and Annex I shall be read cumulatively.

			

 

	 	
			b.

				
			This Agreement and Annex I shall prevail over Annex II and Annex III, which shall be subject to the terms of this Agreement and Annex I.

			

 

	
			1.4

				
			All headings and titles in this Agreement are used for editorial facilitation and shall not be interpreted as affecting or influencing the meaning, content or substance of its provisions.

			

 

	
			1.5

				
			All Annexes to this Agreement shall constitute an integral part hereof and shall further be subject to the terms of this Agreement. Reference to the “Agreement” shall be understood to include reference to all its Annexes and any active Location Agreement, whether or not explicit mention thereto has been made in other parts of the Agreement.

			

 

	
			Article 2 

				
			− Affiliated Companies of Buyer

			

 

For the purposes of this Agreement, the Buyer Affiliates set out in Annex II will be regarded as “Affiliated Companies” of Buyer.

 

 

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Confidential

 

 

	
			Article 3 

				
			− Term and Conditions Precedent

			

 

	
			3.1

				
			This Agreement is effective from the Effective Date and continues in full force and effect, until terminated pursuant to this Agreement or the General Terms and Conditions.

			

 

	
			3.2

				
			Prior to any obligation on the part of Seller to sell Fuel under this Agreement, or on the part of Buyer to purchase Fuel under this Agreement, all conditions set forth in this Article 3 shall be satisfied by Seller (or with respect to subsections (i) and (ii), waived by Seller; with respect to subsections (iii) and (iv), waived by Seller and Buyer):

			

 

	 	
			(i)

				
			Seller shall have reached a final investment decision with respect to one or more Seller Facilities (as defined below) no later than December 31, 2023;

			

 

	 	
			(ii)

				
			Seller shall have obtained funding to construct the Seller Facilities by June 1, 2024;

			

 

	 	
			(iii)

				
			Seller shall have obtained all governmental authorizations for development of Seller Facilities and production and delivery of Fuel as required by the Location Agreement including all necessary approvals to supply to the applicable Delivery Point(s), and shall have provided written notice of the same to Buyer; and

			

 

	 	
			(iv)

				
			The Commencement Date (as defined in the Agreement) has occurred no later than July 1, 2026.

			

 

	 	
			Seller shall work in good faith to achieve the above conditions precedent by the applicable deadline. Notwithstanding anything to the contrary herein or in any Location Agreement, if the conditions set forth above have not been satisfied or waived on or before the applicable deadline, either Party shall have the right to terminate this Agreement and any Location Agreements thereunder (without any liability of Buyer or Seller arising from such termination) on not less than thirty (30) days prior written notice to the other Party.

			

 

	
			3.3

				
			From and after the Commencement Date, Seller shall be obligated to deliver the Fuel as per the provisions hereof and the applicable Location Agreement. As used herein, “Commencement Date” means the date specified by Seller in a written notice to Buyer furnished not less than sixty (60) days prior to such date that the first Seller Facility has achieved commercial operation and is able to produce and deliver the Fuel as set forth in this Agreement.

			

 

	
			3.4

				
			Seller shall keep Buyer reasonably informed as to the status of Seller’s development and construction of Seller Facilities required for the achievement of the Commencement Date, including providing regular updates (not less frequently than quarterly) commencing no later than one year prior to the expected Commencement Date.

			

 

	
			3.5

				
			As used herein, the following Terms shall have the respective meanings:

			

 

	 	
			“Seller Facility” or “Seller Facilities” means the facility(ies) for production, refining, and delivery of Fuel capable of producing up to 75,000,000 gallons of Fuel per year, to be developed and constructed by Seller, at its sole expense and identified in a notice to Buyer at least 120 days prior to each such facility being capable of producing all or a portion of the aforementioned gallonage.

			

 

	
			Article 4 

				
			− Location Agreements

			

 

	
			4.1

				
			All specific terms and conditions relating to the supply of Fuel agreed between Buyer and Seller for any given location during a certain period of time shall be detailed in a location agreement (hereinafter, each a “Location Agreement”).

			

 

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Confidential

 

 

	
			4.2

				
			Seller and Buyer agree that all obligations of Buyer under a Location Agreement to purchase Fuel shall be on a “take or pay” basis, such that Buyer shall pay for and receive, or cause to be received by a third party, or pay for even if not taken, all Fuel tendered by Seller to Buyer at the Delivery Point under a Location Agreement, on condition that, in tendering such Fuel, Seller has complied in all material respects with its obligations hereunder and subject to the conditions herein, including without limitation with all specifications stipulated for the Fuel, its blending and blended output. Upon refusal by Buyer to accept any Fuel tendered by Seller per the preceding sentence, Buyer shall have relinquished any rights thereto.

			

 

	
			4.3

				
			Upon the Parties having reached agreement on the specifics of any such location, Buyer shall forward a fully complete Location Agreement to Seller. For purposes of clarity, unless otherwise agreed in a Location Agreement, all deliveries of Fuel shall be as specified in Section 7.1. Upon receipt of a Location Agreement, Seller may reconfirm the agreement by either, at Seller’s option:

			

 

	 	
			(i)

				
			Countersigning the Location Agreement and returning the document to Buyer, or

			

 

	 	(ii)
			 

				
			Giving other written notice of reconfirmation.

			

	
			4.4

				
			Each Location Agreement shall form an integral part of this Agreement

			

 

	
			4.5

				
			A Location Agreement becomes effective on the first day of the delivery period as stated therein. The expiry date of the Location Agreement shall be the last day of the delivery period, or, in case of early termination in accordance with this Agreement or the General Terms and Conditions, the day of such early termination.

			

 

	
			4.6

				
			Unless otherwise set forth in a Location Agreement, the initial term of each Location Agreement shall commence on the Commencement Date and continue until the seventh (7th) anniversary of the Commencement Date (“Initial Term”), at which time the term of such Location Agreement shall automatically renew for an additional three (3) year period unless either Party shall have elected to terminate such Location Agreement as of the seventh (7th) anniversary of the Commencement Date by providing at least six (6) months’ prior notice to the other Party of such election (each, a “Renewal Term”, and together with the Initial Term, the “Term”). If such Location Agreement is the only Location Agreement in effect between the Parties at the time of such termination, the terminating Party shall also be permitted to terminate this Agreement concurrently with the termination of such Location Agreement. For sake of clarity, no such termination shall relieve a Party of obligations that have accrued under any such agreement prior to the termination thereof.

			

 

	
			Article 5 

				
			− Pricing 

			

 

	
			5.1

				
			Pricing under all Location Agreements shall be as set forth in this Article 5. Prices set forth in this Article 5 are exclusive of the value associated with Emissions Credits. The allocation of such value shall be governed by Section 6 below.

			

 

	
			5.2

				
			(a)          Unless a Location Agreement specifies a different price, the price for Fuel sold to Buyer hereunder will be [*****] (“Fuel Price”).

			

 

	 	
			(b)

				
			[*****].

			

 

	 	
			(c)

				
			[*****].

			

 

	
			5.3

				
			The pricing set forth in Section 5.2(a) shall be fixed until the end of the Initial Term [*****]. Commencing on a Renewal Term, the price applicable to any deliveries or deemed deliveries of Fuel hereunder shall be as may be mutually agreed by the Parties to a Location Agreement.

			

 

	
			5.4

				
			Delivery and Blending Costs shall be payable as set forth in Article 7.

			

 

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Confidential

 

 

	
			5.5

				
			After the Commencement Date, Buyer shall not, at the close of any Business Day, permit the sum of (i) the aggregate amount of unrestricted cash and cash equivalents, and (ii) the aggregate principal amount committed and available to be drawn by Buyer under all revolving credit facilities of Buyer to be less than [*****] (the “Liquidity Threshold”). If Buyer falls below the Liquidity Threshold, Seller may require Buyer to prepay for any subsequent Fuel to be delivered under a Location Agreement sixty (60) days in advance of such Fuel delivery (or such shorter period as agreed in Seller’s sole discretion), until Buyer is no longer below the Liquidity Threshold.

			

 

	
			5.6

				
			[*****]

			

 

	
			Article 6 

				
			– Allocation of Production Emissions Credits and [*****]

			

 

	
			6.1

				
			[*****].

			

 

	
			6.2

				
			Within thirty (30) days following the end of a calendar quarter during the Term, [*****]. [*****]. Any amounts due and owing from Seller to Buyer shall be reflected as a credit on the next invoice issuable to Buyer, provided that if such an amount becomes due and owing after the final settlement of all amounts payable by Buyer hereunder, Seller shall pay such amounts to Buyer..

			

 

	
			6.3

				
			Subject to Section 5.7 in Annex I, if any Applicable Law is enacted, implemented, modified, amended or revoked so that the implementation of the Agreement becomes impossible, impracticable or materially inconsistent with the terms or requirements of this Agreement and/or the General Terms and Conditions, including any changes to government programs associated with the Production Emissions Credits, the availability of User-Specific Credits, or in the event of implementation of a carbon pricing law, rule or regulation, if the eligible fuel fails to meet the CORSIA sustainability criteria set forth and published by The International Civil Aviation Organization, the Parties shall work in good faith to amend the Agreement to conform to the changed requirements or circumstances in order to maintain the original intent of the Parties hereunder and the economic conditions set forth herein.

			

 

	
			Article 7 

				
			− Delivery and Seller’s Responsibilities 

			

 

	
			7.1

				
			All deliveries of Fuel shall be to one of the following Terminals (as defined below) specified by the Buyer: [*****]. Seller may request Fuel be delivered to an alternative terminal facility so long as such alternative terminal has a pipeline connection from such terminal to a major airport (“Alternative Terminal”), subject to Buyer’s written consent; [*****].

			

 

	
			7.2

				
			As used herein the following terms have their respective meanings as set forth below:

			

 

	 	
			a.

				
			[*****]

			

 

	 	
			b.

				
			[*****]

			

 

	 	
			c.

				
			[*****].

			

 

	 	
			d.

				
			“Terminals” means [*****].

			

 

	
			7.3

				
			Delivery shall occur [*****] (the “Delivery Point”). From and after the Effective Date, Seller represents and warrants that [*****] has a direct pipeline connection to a United States major airport.

			

 

	
			7.4

				
			Seller shall, on Buyer’s behalf, and in accordance with this Agreement, Applicable Laws and applicable industry standards, provide, or cause to be provided, (i) transportation to the Delivery Point of all quantities of Fuel made available hereunder to Buyer and (ii) storage and blending of the Fuel with conventional Jet A Fuel prior to delivery to the Delivery Point. All costs incurred from the Seller Facilities up to the Delivery Point (the “Delivery and Blending Costs”) shall be for the account of Seller. As of the date hereof, the Parties anticipate that the following will be included within the Delivery and Blending Costs: (i) the cost of transportation between the Seller Facilities and the Delivery Point; (ii) storage costs at the applicable terminal facility; and (iii) blending costs at the applicable terminal facility, including expenses to secure permissions and authorizations needed for the blending of the Fuel with conventional Jet A Fuel.

			

 

4

 

 

Confidential

 

 

	
			7.5

				
			Seller shall further be responsible for securing all permissions and authorizations needed for the blending of the Fuel with conventional Jet A Fuel and for the conduct and output of such blending according to the standards and specifications agreed herein. Without prejudice to the generality of the foregoing and without the scope of the foregoing being deemed reduced, Seller shall also be responsible for securing recertification / approval of the blended output, including product gains recertification, after blending.

			

 

	
			7.6

				
			Should delivery for Fuel purchased by the Buyer not be due to the Buyer, but a third party or Affiliate designated by the Buyer, Seller’s obligations hereunder shall also apply for such delivery.

			

 

	
			Article 8 

				
			− Minimum Annual Contract Quantity

			

 

The “Minimum Annual Contract Quantity” shall be, (a) from the Commencement Date until the first anniversary of the Commencement Date, the volume of Fuel Seller is able to produce and deliver to Buyer on an As-Available Basis (but in any event, no greater than its obligation under subclause (b)), and (b) from and after the first anniversary of the Commencement Date, 75 Million gallons of Fuel per year (delivered monthly on a pro rata basis) in the aggregate from the Seller Facilities or if Seller is unable to produce a total of 75 Million gallons per year, the amount of Fuel actually produced by Seller. As set forth in Section 4.2 and Section 5.2, Seller shall sell and deliver, or cause to be delivered, and Buyer shall purchase and receive, or cause to be received, at the Delivery Point, or pay for even if not taken, the Minimum Annual Contract Quantity of Fuel per year, beginning on and continuing after the Commencement Date through the Initial Term; provided, however, that if the term is renewed for a Renewal Term, such obligation shall continue through such Renewal Term. Subject to Annex I, Section 5.5, Seller shall adhere to the delivery schedule agreed in writing between the Parties. Until such time as Seller has sold out the capacity of Seller Facilities, Seller may, in Seller’s sole discretion, offer to Buyer the option to purchase additional gallons of Fuel in excess of the Minimum Annual Contract Quantity from Seller on the same terms and conditions as set forth in the Agreement. Buyer may meet the Minimum Annual Contract Quantity requirement through one or more Location Agreements. As used herein, (i) “As-Available Basis” means that Seller, in its sole discretion, has Fuel available for sale from the Seller Facilities for supply to Buyer, and (ii) the term “gallon” as used herein shall mean a U.S. gallon of 231 cubic inches and the term “barrel” shall mean 42 U.S. gallons both corrected for temperature to 60 degrees Fahrenheit in accordance with ASTM D-1250 Petroleum Measurement Table 6B (unabridged as most recently revised from time to time) or the American Petroleum Institute Standard 2540/ASTM D 1250/IP Designation 200, whichever is in use at the discharge terminal, unless otherwise specified in the Agreement.

 

	
			Article 9 

				
			− Invoicing and Payment Terms

			

 

Unless otherwise agreed in the Location Agreement, the following shall apply:

 

	
			9.1

				
			Seller shall issue an invoice for each shipment of Fuel tendered for delivery to Buyer under the applicable Location Agreement, which shall contain the following information: (a) the volume of Fuel in the applicable shipment; (b) the price per U.S. gallon of Fuel; (c) a description of applicable taxes, fees or other charges; (d) total amount due on the invoice; (e) the date of the shipment; and (f) the Delivery Note reference. A Delivery Note must accompany each invoice.

			

 

	
			9.2

				
			Invoices shall be sent via email to: [*****] 

			

 

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Confidential

 

 

	
			9.3

				
			Invoices for Fuel delivered or deemed delivered to companies for which Buyer is acting as an Agent only shall be sent directly to the agreed company without any involvement of Buyer, unless otherwise directed by Buyer in advance in writing.

			

 

	
			9.4

				
			Unless otherwise specified in the respective Location Agreement, invoices shall be issued and payment shall be effected in United States Dollars (“USD”).

			

 

	
			9.5

				
			The payment terms shall be as follows:

			

 

	 	
			a.

				
			Payment by Buyer on each invoice shall be net [*****] from the date of issue of an invoice complying with the requirements of Sections 9.1 and 9.2 above. Payment shall be made by wire transfer of immediately available funds in United States Dollars. Details about the Seller’s banking information are set forth in Section 9.6 below.

			

 

	 	
			b.

				
			Absent manifest error, Buyer shall pay all disputed and undisputed amounts due under each invoice without netting or offsetting. In the case of manifest effort, the correct amount shall be paid disregarding such error, and necessary correction and consequent adjustment shall be made within five (5) Business Days after agreement of the correct amount.

			

 

	 	
			c.

				
			If a Party invoiced and received payment of a sum subsequently determined not to have been payable under this Agreement, such Party shall pay interest to the other Party on such amount on and from the date when such sum was originally paid and including the date of its repayment at a rate (the “Interest Rate”) equal to [*****]. Any amount not paid by a Party when due shall bear interest from and including the date payment was originally due to and including the actual date of payment at the Interest Rate. [*****].

			

 

	
			9.6

				
			Payments shall be transferred to the Seller’s bank account as provided for in the applicable invoice.

			

 

	
			Article 10 

				
			− Insurance

			

 

	
			10.1

				
			Until all obligations under this Agreement are satisfied, and without limiting Seller’s indemnification obligations under the Agreement, Seller shall procure and maintain the following insurance policies from insurers with an AM Best rating of B+ VI or a comparable rating:

			

 

	 	
			a.

				
			Workers’ Compensation covering obligations imposed by federal and state statutes with jurisdiction over Seller’s employees and Employer's Liability insurance of at least [*****].

			

 

	 	
			b.

				
			Commercial General Liability insurance with a minimum limit of [*****] per claim for bodily injury or death and broad form property damage. The policy shall cover bodily injury, property damage, personal injury, products and completed operations, and broad form contractual liability coverage including, but not limited to, the commercially insurable liability assumed under Seller’s indemnification obligations set forth in the Agreement.

			

 

	 	
			c.

				
			Business Automobile Liability insurance with a limit for bodily injury and property damage of a minimum limit of [*****] each occurrence with respect to any and all vehicles of Seller’s, whether owned, hired, leased, borrowed, or non-owned, assigned to or used in connection with Seller’s performance of the Agreement; and

			

 

	 	
			d.

				
			Environmental Impairment Liability insurance with a limit and annual aggregate of [*****], which shall include coverage for all actions, omissions, or active or passive negligence, for bodily injury, property damage, defense costs and environmental remediation costs with respect to releases of hazardous substances at the Seller Facilities, including Fuel prior to delivery.

			

 

6

 

 

Confidential

 

 

	
			10.2

				
			Additional Insureds. Except for Workers’ Compensation, all the policies required in this Article 10 shall name Buyer and its Affiliates as an additional insured whether in its/their capacity as Buyer or as a reseller of the Fuel.

			

 

	
			10.3

				
			Primary. The policies shall stipulate that the insurance required by this Article 10 shall be primary insurance and that any insurance or self-insurance carried by Buyer shall not be contributory insurance.

			

 

	
			10.4

				
			Recovery Rights. Seller shall waive, and require its insurers to waive, any and all recovery rights to which any insurer of Seller may have against the Buyer by virtue of the payment of any loss under any insurance.

			

 

	
			10.5

				
			Maintenance of Insurance Policies Following Termination or Expiration. To the extent that the insurance policies required under this Article 10 are not occurrence-based policies, except for Workers’ Compensation, Seller shall maintain claims made policies for at least three (3) years following termination of the Agreement.

			

 

	
			10.6

				
			Severability of Interest. All policies required under this Article 10 except for Workers’ Compensation, shall contain a severability of interest provision, and shall not contain any commutation clause or any other provision that limits third party actions over claims.

			

 

	
			10.7

				
			Evidence of Insurance. Upon Buyer’s request, Seller shall provide documentary evidence in a form and content acceptable to Buyer, confirming to its satisfaction that the required insurance policies have been obtained and will remain in effect as required by this Article 10.

			

 

	
			10.8

				
			Notice of Material Changes. Seller shall provide Buyer with at least thirty (30) days’ written notice prior to any material changes in or cancellation of any insurance policies.

			

 

	
			Article 11 

				
			− Governing Law

			

 

The validity, construction and performance of this Agreement shall be governed by New York law without giving effect to any choice-of-law provision or rule (whether of the state of New York or any other jurisdiction) that would cause the application of the laws of any other jurisdiction.

 

	
			Article 12 

				
			− Disputes

			

 

The Parties shall attempt to resolve any disputes under this Agreement through negotiation prior to resorting to other dispute resolution mechanisms. If the Parties are unable to do so after using reasonable good faith efforts, the federal or state courts situated in New York County, New York, United States of America, have exclusive jurisdiction over the resolution of all disputes that arise under this Agreement, and each Party irrevocably submits to the personal jurisdiction of such courts. The United Nations Convention on Contracts for the International Sale of Goods shall not be applicable to the parties’ rights or obligations under this Agreement.

 

	
			Article 13 

				
			− Financing Cooperation

			

 

Without diminishing Seller’s obligations and Buyer’s rights hereunder, Buyer acknowledges that Seller may elect to finance all or part of its costs of the transactions contemplated by this Agreement, including the costs of the construction of Seller Facilities. Buyer shall use commercially reasonable efforts to provide all cooperation reasonably necessary in connection with any financing efforts that Seller may undertake in connection with financing Seller Facilities, as may be reasonably requested by Seller; provided that such efforts shall not (a) relieve Seller of any of its obligations under this Agreement; (b) decrease the economic benefits, or increase the costs, of the transactions contemplated by this Agreement to Buyer; or (c) create increased economic or legal risk to Buyer in connection with the transactions contemplated by this Agreement. In furtherance of the foregoing, Buyer agrees that it will not unreasonably withhold its consent to a customary collateral assignment for security purposes of this Agreement for the benefit of such Person(s) providing such financing, which such collateral assignment shall be in form and substance reasonably satisfactory to Buyer, as may be reasonably necessary and appropriate for such financing, provided that none of the terms of such consent shall (i) relieve Seller of any of its obligations under this Agreement; (ii) decrease the economic benefits, or increase the costs, of the transactions contemplated by this Agreement to Buyer; or (iii) create increased economic or legal risk to Buyer in connection with the transactions contemplated by this Agreement.

 

7

 

 

Confidential

 

 

	
			Article 14 

				
			− Assignment

			

 

	
			14.1

				
			Neither Party may assign its obligations under this Agreement, in whole or in part, without the prior written consent of the other Party; provided that such consent shall not be unreasonably withheld, conditioned or delayed. [*****]. Either Party may, however, assign its obligations to any Affiliate of such Party without the prior written consent of the other Party, provided that in such event, but subject to Section 14.2 below, the assigning Party shall be jointly and severally liable for the performance by such Affiliate of the Agreement.

			

 

	
			14.2

				
			Notwithstanding the foregoing, Seller may, without the prior written consent of Buyer:

			

 

	 	
			a)

				
			Assign this Agreement to any Person acquiring all or substantially all of the assets comprising any Seller Facility;

			

 

	 	
			b)

				
			Collaterally assign this Agreement to any Person providing Financing or other security in connection with any Seller Facility; or

			

 

	 	
			c)

				
			Assign this Agreement to any special purpose vehicle in connection with the Financing;

			

 

	
			 

				
			provided, however, that if the assignment or transfer under this Section 14.2 is a [*****], Seller shall obtain Buyer’s prior written consent. With respect to any assignment pursuant to Sections 14.2(a) or 14.2(c), the assigning Party shall be released from all obligations and liabilities under this Agreement provided that Buyer shall have no greater overall liability, obligation or costs or any diminution of rights under this Agreement.

			

 

	
			Article 15 

				
			− Public Announcements

			

 

Neither Party will, without the other Party’s prior written consent in each instance (a) use in advertising, publicity or marketing communications of any kind the name or other trademarks of the other Party or any of its Affiliates, or any employee of either, or (b) represent, directly or indirectly, that any product or service provided by a Party has been approved or endorsed by the other Party or any of its Affiliates. Notwithstanding the foregoing, Seller and Buyer agree to publicly disclose, via a mutually agreed upon press release, aspects of the commercial plan for Buyer to serve as a purchaser of Fuel from Seller Facilities at such time as Seller and Buyer shall mutually agree at their respective unfettered discretions, save that, as a condition precedent for such disclosure/publication, each Party shall coordinate with and shall receive the written consent of the other Party with respect to such disclosure/publication, and shall so provide advance copies to the other Party for review of the text of any proposed announcement/publication prior to the dissemination thereof to the public or to any person other than employees, consultants, representatives, Agents, advisors, contractors or subcontractors of any tier, who agree to keep such information confidential.

 

Notwithstanding the foregoing, either Party shall be permitted to make any and all required disclosures of the Agreement and the transactions contemplated thereunder in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”), including, but not limited to, filing the Agreement with the SEC in connection with a Form 8-K, 10-Q or 10-K, albeit to the extent that may be so required, subject to the right of the other Party and its counsel to review copies of any such proposed filing or filings in advance thereof and comment thereon, and the obligation of the disclosing Party to accept any comments reasonably requested by the non-disclosing Party or its counsel with respect to the description of the disclosing Party in such filing or filings or with respect to the redaction of trade secrets or competitively sensitive information contained therein.

 

8

 

 

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			Article 16 

				
			− Counterparts 

			

 

This Agreement may be executed in multiple counterparts, each of which when so executed and delivered shall constitute a duplicate original and all counterparts together shall constitute one and the same instrument. Buyer shall only be bound by this Agreement upon its execution and return of such executed counterpart to the Seller. The Parties acknowledge and agree that any document or signature delivered by facsimile, PDF or other electronic transmission shall be deemed to be an original executed document for the purposes hereof and such execution and delivery shall be considered valid, binding and effective for all purposes.

 

 

 

[Remainder of Page Intentionally Left Blank]

 

9

 

 

 

Confidential

 

 

In witness whereof the Parties hereto have executed this Agreement in twofold.

 

 

 

	GEVO, INC.,	 	DELTA AIR LINES, INC.,	 
	as “Seller”	 	as “Buyer”	 
	 	 	 	 
	 	 	 	 
	/s/ Timothy J. Cesarek	 	/s/ Dan Janki	 
	Name: Timothy J. Cesarek	 	Name: Dan Janki	 
	Title: Chief Commercial Officer	 	Title: Chief Financial Officer	 

 

 

 

 

 

 

 

 

 

Signature Page – Fuel Sales Agreement

 

 

 

 

Confidential

 

 

ANNEX I

 

GENERAL TERMS AND CONDITIONS FOR

FUEL SALES AGREEMENT

 

to the Fuel Sales Agreement Between Buyer and Seller

dated March 16, 2022

 

	
			1. 

				
			DEFINITIONS

			

 

The following terms, when capitalized, shall have the meaning defined hereinafter, unless the context otherwise requires:

 

Affiliate: means, with respect to any Person, any other Person which directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with such Person; for purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”) means the direct or indirect ownership of fifty percent (50%) or more of the voting rights in a Person or the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities or otherwise.

 

Agent: One that acts or has the power or authority to act for or represent another.

 

Agreement: Any agreement for aviation fuel supply into which these General Terms and Conditions have been incorporated.

 

Anti-Corruption Laws: shall have the meaning set forth in Section 2.4.

 

Applicable Law: in relation to matters covered by this Agreement, all applicable laws, statutes, rules, regulations, ordinances, codes, standards and rules of common law, and judgments, decisions, interpretations, orders, directives, injunctions, writs, decrees, stipulations, or awards of any applicable Governmental Authority or duly authorized official, court or arbitrator thereof, in each case now existing or which may be enacted or issued after the date of this Agreement.

 

Business Day: every day other than a Saturday or Sunday or any other day on which banks in the State of New York are permitted or required to remain closed.

 

Buyer Indemnitees: Buyer and its Affiliated Companies, together with all of their respective officers, directors, employees, advisors, servants, Agents, subcontractors and representatives.

 

Buyer’s Aircraft: the aircraft owned, leased, operated by or on behalf of Buyer or Buyer’s Affiliated Companies.

 

Claim: means any claim, action, dispute, proceeding, demand, or right of action, whether in law or in equity, of every kind and character.

 

Clean Team: shall have the meaning set forth in Section 5.6(b) of the Agreement.

 

Confidential Information: shall have the meaning set forth in Section 15.1.

 

Contaminated Fuel: Fuel that is cross-contaminated by other products, including but not limited to other fuel grades or additives, that could put the fuel off-specification, contains unacceptable levels of particulates or water — fails the visual clear and bright check or exceeds the cleanliness limits set out in IATA Guidance Material for Aviation Turbine Fuel Specifications, Part III, Cleanliness and Handling, or contains unacceptable levels of microbiological growth.

 

 

 

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CORSIA: the Carbon Offsetting and Reduction Scheme for International Aviation currently under development by the International Civil Aviation Organization.

 

Defaulting Party: shall have the meaning set forth in Section 12.1.

 

Delivery Note: A document, produced in writing or by electronic means, accurately and clearly stating the date of receipt, time, product description, meter readings and quantity delivered in U.S. gallons, in accordance with Seller’s normal practices, or any additional information the Parties may agree upon.

 

EAR: shall have the meaning set forth in Section 2.3.

 

Event of Default: shall have the meaning set forth in Section 12.1.

 

Fuel: Alcohol to jet synthetic paraffinic kerosene compliant with, (i) prior to blending with Jet A Fuel (as defined below), ASTM Standard Specification D7566 Annex 5, “Standard Specification for Aviation Turbine Fuel Containing Synthesized Hydrocarbons” appropriate for blending with Jet A Fuel and, (ii) after blending with Jet A Fuel, ASTM Standard Specification D 1655.

 

Governmental Authority: means any federal, state, county, municipal, regional, native or tribal authority of the United States, any state thereof or the District of Columbia, or any country with jurisdiction over either Party, or any other entity of a similar nature, exercising any executive, legislative, judicial, regulatory or administrative function of government.

 

ICAO Doc 9977: Manual on Civil Aviation Jet Fuel Supply.

 

Intellectual Property: means recognized protectable intellectual property of a Person, such as patents, copyrights, corporate names, trade names, trademarks, trade dress, service marks, applications for any of the foregoing, software, firmware, trade secrets, mask works, industrial design rights, rights of priority, know how, design flows, methodologies and any and all intangible protectable proprietary information that is legally recognized.

 

ISCC: means International Sustainability and Carbon Certification.

 

ITAR: shall have the meaning set forth in Section 2.3.

 

Jet A Fuel: Aviation jet fuel compliant with ASTM Standard Specification D 1655 for Aviation Turbine Fuels Jet A / Jet A-1 latest issue.

 

Losses: all liabilities, losses, damages, fines, penalties, judgments, demands, and costs and expenses of any kind or nature, including reasonable attorneys’ and experts’ fees and expenses incurred in litigation or dispute resolution.

 

Net Fuel Price: shall have the meaning set forth in Section 5.6(a) of the Agreement.

 

Non-Defaulting Party: shall have the meaning set forth in Section 12.1.

 

OFAC: shall have the meaning set forth in Section 2.3.

 

Off-Specification Fuel: Fuel, which is found not to be in accordance with the relevant quality specification set forth in the Agreement and this Annex I.

 

Person: an individual, partnership, corporation, business trust, joint-stock company, trust, unincorporated association, joint venture, governmental entity, limited liability company or any other entity of whatever nature.

 

 

 

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Production Emissions Credits: any current or future recognition, award, or allocation of offsets, credits, allowances, or other tangible rights issued under or benefits resulting from a state, regional, federal, or international program or private contract, created or generated by or from the production or blending of renewable fuels, including without limitation, any Renewable Identification Numbers as defined in the Renewable Fuel Standard Program under the Energy Policy Act of 2005 and the Energy Independence and Security Act of 2007 and implementing regulations, any credits pursuant to the Low Carbon Fuel Standard Program pursuant to the California Assembly Bill AB 32. Production Emission Credits do not include Scope 1 and Scope 3 environmental attributes associated with Buyer’s and its customers’ use of the fuel, including but not limited to Scope 3 Category 6 (business travel).

 

Renewable Energy Directive: means Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources, as may be modified or replaced in a manner consistent with the Proposal for a Directive of the European Parliament and of the Council on the promotion of the use of energy from renewable sources (recast) COM/2016/0767 final/2 - 2016/0382 (COD), repealing Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources.

 

RSB: the Roundtable on Sustainable Biomaterials.

 

Seller Indemnitees: Seller and its Affiliates, together with all of their respective officers, directors, employees, advisors, servants, Agents, subcontractors and representatives.

 

Sustainability Certification: a certification demonstrating compliance with the sustainability criteria pursuant the Renewable Energy Directive, issued by a voluntary national or international certification scheme recognized by the European Commission, including, but not limited to, ISCC or RSB.

 

Third Party: means any Person other than a Party or an Affiliate of a Party.

 

User-Specific Credits: any current or future recognition, award, or allocation of offsets, credits, allowances, or other tangible rights issued under or benefits resulting from a state, regional, federal, or international program or private contract, created or generated by or from the use of renewable fuels, including without limitation any credits arising under CORSIA and any Scope 1 and Scope 3 environmental attributes (including but not limited to Scope 3 Category 6 (business travel)) environmental attributes associated with use of the fuel and reflecting the full lifecycle emission reductions associated with the Fuel.

 

Capitalized terms used by not defined in this Annex I shall have respective meanings given to them in the Agreement.

 

	
			2. 

				
			REPRESENTATION & COMPLIANCE WITH APPLICABLE LAW.

			

 

Each Party contracts hereunder on its own behalf.

 

	
			2.1

				
			Each Party contracts hereunder on its own behalf and, with respect to Buyer, as Agent for its Affiliated Companies in respect of their rights and obligations under the Agreement. Buyer warrants (i) that it has been duly authorized by its Affiliated Company to enter into this Agreement on behalf of each and (ii) that each Affiliated Company shall be bound by the terms and conditions of this Agreement in respect of deliveries of Fuel made to them and responsible for any liabilities arising there from. Provided that if a Party is in breach of the warranties given under this Clause, it will indemnify the other Party’s indemnitees in respect of all costs, losses damages, expenses or liabilities incurred by the other Party’s indemnitees as a result of that breach. For the purposes hereof, Buyer’s Affiliated Companies are set out in the Location Agreement and may be amended to include or exclude any other company or entity which may be agreed in writing between the Buyer and Seller from time to time. Buyer shall be jointly and severally liable for the performance by the Affiliated Company of the Agreement.

			

 

 

 

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			2.2

				
			This Agreement is subject to all present Applicable Laws and any future Applicable Law imposed by Governmental Authorities having jurisdiction over the Parties. In performing its obligations hereunder, each Party warrants that it shall comply with all Applicable Laws now and then in-effect applicable to such Party.

			

 

	
			2.3

				
			Sanctions Laws. Each Party agrees to cooperate pursuant to this Agreement in such a manner as to ensure that such Party and its affiliates, owners, directors, officers, employees and agents, subcontractors, and every other person acting on its behalf, has complied and will comply with all applicable U.S. export controls, economic sanctions, and anti-boycott laws, including but not limited to the Export Administration Regulations (15 C.F.R. Parts 730-774) (“EAR”), the International Traffic in Arms Regulations (22 C.F.R. Parts 120-130) (“ITAR”), the various Executive Orders, sanctions regulations, licenses, and guidance implemented by the U.S. Department of the Treasury's Office of Foreign Assets Control (“OFAC”) (including the regulations at 31 C.F.R. Chapter V); (b) it will comply with the U.S. prohibitions on dealing with Specially Designated Nationals (SDNs) and other blacklisted parties and prohibitions on business dealings with U.S. embargoed countries and regions, including, but not limited to, Cuba, Iran, Syria, North Korea, Sudan, and the Crimea Region of Ukraine; and (c) neither it, nor any of its Representatives, is on a U.S. Government blacklist (including, but not limited to, SDN, as per OFAC) or is owned or controlled by any entity or person on such a blacklist. Seller represents and warrants that it will notify Buyer immediately should the U.S. Government place it, or any of its directors, officers, employees, or agents, on a U.S. Government blacklist.

			

 

	
			2.4

				
			Compliance with Anti-Corruption Laws. Each Party represents, warrants, certifies and undertakes that it, and each of its representatives, in connection with the transactions contemplated by this Agreement and in connection with any other business transactions involving the other Party: (a) shall comply with all anti-corruption legislation in any and all countries anywhere in the world where the Fuel will be delivered to Buyer, including, but not limited to, Anti-Corruption Laws of the United States of America, the United Kingdom, the United Nations, the Organization for Economic Co-operation and Development and the country or countries in which the Services will be provided (“Anti-Corruption Laws”); and (b) has not engaged, and shall not engage, in any acts or transactions in violation of, or otherwise inconsistent with the principles of, any Anti-Corruption Laws.

			

 

	
			3. 

				
			SPECIFICATIONS AND REQUIREMENTS

			

 

	
			3.1

				
			Seller warrants that the Fuel produced shall comply with ASTM Standard Specification D7566 Annex 5, “Standard Specification for Aviation Turbine Fuel Containing Synthesized Hydrocarbons” at the time of delivery at the Delivery Point. Seller further warrants that prior to the time of delivery Seller shall secure the applicable recertification or approval of the blended output and that at the time of delivery at the Delivery Point such blended output shall comply with ASTM Standard Specification D1655.

			

 

	
			3.2

				
			The Fuel will deliver lifecycle emissions reductions as compared to conventional jet fuel, based on the Argonne National Laboratory GREET Model, in accordance with the following (collectively, the “Lifecycle Emissions Allocation”):

			

 

	 	
			a)

				
			Before January 1, 2030, at least [*****]% lifecycle emissions reductions as compared to conventional jet fuel; and

			

 

	 	
			b)

				
			On or after January 1, 2030, at least [*****]% lifecycle emissions reductions as compared to conventional jet fuel.

			

 

	
			3.3

				
			[*****].

			

 

	
			3.4

				
			Seller will provide Buyer the following: (a) ISCC Certification form at the beginning of the Term, and then again if the feedstock changes, (b) no later than the end of January, relevant details in the CORSIA Eligible Fuel Claim Form (see Appendix A) relating to Fuel purchase in the immediately preceding year, in each case, and (c) a product transfer form with each Fuel delivery.

			

 

 

 

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			3.5

				
			Any other supply specification requires approval by Buyer and a complete specification must be attached to the Agreement.

			

 

	
			3.6

				
			EXCEPT AS SPECIFICALLY PROVIDED IN SECTION 3.1, THERE ARE NO GUARANTEES OR WARRANTIES HEREIN, EXPRESS OR IMPLIED, AS TO THE MERCHANTABILITY, FITNESS OR SUITABILITY OF THE FUEL FOR ANY PARTICULAR PURPOSE OR OTHERWISE.

			

 

	
			3.7

				
			Seller’s Intellectual Property Infringement Indemnity.

			

 

	 	
			a)

				
			If an action is brought or threatened against Buyer claiming that Buyer’s use, as permitted herein, of the Fuel infringes any Intellectual Property rights arising or existing under Applicable Law, Seller shall defend, indemnify and hold harmless the Buyer Indemnitees from and against any and all Claims and Losses of Buyer and its Affiliates to the extent arising from such action or claim.

			

 

	 	
			b)

				
			If Buyer’s permitted use of the Fuel is materially impaired, Seller shall use commercially reasonable efforts, at its expense, to continue its supply obligations under this Agreement, including at its own election and expense (i) to substitute an equivalent non-infringing product for the allegedly infringing Fuel, (ii) to modify the allegedly infringing Fuel so that it no longer infringes but remains functionally equivalent or better or (iii) to obtain for Buyer the right to continue using such Fuel; provided, however, that in all cases the Fuel shall comply with the specifications set forth in Section 3.1 above. If the Fuel does not qualify for Production Emissions Credits or User-Specific Credits as a result of any such substitution, the price paid by Buyer shall be reduced by the amount of the credit that Buyer would have otherwise received hereunder; [*****]. Seller shall, prior to proceeding with any of the foregoing actions, consult with Buyer as to the proposed action and consider in good faith any reasonable request of Buyer in respect thereof. Nothing herein constitutes a guarantee by Seller that such efforts will succeed in avoiding the infringement claim or that Seller will be able to replace the infringing Fuel with a product of comparable functionality or effectiveness. If Seller reasonably believes that an injunction against use of the Fuel may be granted against Buyer, either imminently or with the passage of time, Seller may at its expense, and upon reasonable prior written notice to Buyer, take any of the foregoing actions in order to minimize its liability.

			

 

	 	
			c)

				
			This Section 3.4 does not apply to, and Seller assumes no liability with respect to, Claims and Losses for patent infringement or copyright infringement or improper use of other proprietary rights (including any license or Intellectual Property, whether by way of copyright or otherwise) to the extent that such Claims or Losses relate, in whole or in part, to (i) Buyer’s modification or alteration of the Fuel (except to the extent permitted by this Agreement), made without Seller’s written consent or contrary to Seller’s instructions, or (ii) the combination of the Fuel with other products or materials after the Delivery Point, other than the combination of the Fuel with other fuel meeting the ASTM Standard Specification D1655 while in storage at the on-airport storage facility.

			
	 	 	 
	 	d)	The foregoing provisions of this Section 3.4 state the entire liability and obligations of Seller and its Affiliates, and the exclusive remedy of the Buyer Indemnitees, with respect to any actual or alleged infringement of patents, copyrights, trademarks or other Intellectual Property by the Fuel sold and delivered hereunder.

 

	 	
			e)

				
			Buyer shall promptly notify Seller in writing following receipt of written notice of any claims alleging infringement of patents or other proprietary rights (including Intellectual Property) in connection with Buyer’s permitted use of the Fuel or Seller’s performance of its supply obligations under this Agreement, and shall provide Seller with all information in its possession relevant to such claim.

			

 

 

 

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			3.8

				
			If an action is brought or threatened against Seller claiming that any condition or event described in Section 3.7(c) results in an infringement upon any Intellectual Property arising or existing under Applicable Law, Buyer shall defend, indemnify and hold harmless the Seller Indemnitees at Buyer’s expense from and against any and all Claims and Losses of Seller Indemnitees to the extent arising from such action or claim.

			

 

	
			4. 

				
			QUALITY

			

 

	
			4.1

				
			Seller must ensure that Fuel is not contaminated and that the quality of Fuel delivered to the Buyer is maintained at all times throughout the supply chain from the refinery to the Delivery Point and during blending and recertification. For this purpose, and subject to the remaining provisions of the Agreement, Seller shall ensure that the policies, standards, procedures and any other practices recommended in ICAO Doc 9977 are implemented and complied with by the Seller, Seller’s Agents, suppliers, operators and any other parties engaged in the operation and/or the supply of Fuel.

			

 

	
			5. 

				
			DELIVERY & EMISSIONS CREDITS

			

 

	
			5.1

				
			Title to and risk of loss of the Fuel shall pass to Buyer at the Delivery Point.

			

 

	
			5.2

				
			Seller’s measurement shall be accepted as prima facie evidence of the quantities of Fuel delivered, but Buyer shall be entitled to check the accuracy of the instruments used by Seller upon reasonable notice during Seller’s normal operating hours in the presence of Seller’s representative. Determinations of quantities made in accordance with international industry practice shall be binding.

			

 

	
			5.3

				
			Any Fuel or blend thereof sold under the Agreement, which is found to be Off-Specification Fuel or Contaminated Fuel may be rejected by Buyer, at Buyer’s sole discretion. Buyer shall not be required to pay Seller for any Off-Specification Fuel or Contaminated Fuel rejected by Buyer hereunder, or for any output rejected by Buyer that is not blended in accordance with the specification agreed in writing by the Parties.

			

 

	
			5.4

				
			Without prejudice to Seller’s other obligations and Buyer’s rights under this Agreement, Seller shall pro-actively take reasonable steps to keep informed, and will use its best endeavors to ensure that Buyer is notified as soon as practicable

			

 

	 	
			a)

				
			of any matter that could reasonably be expected to impact Seller’s ability to supply Buyer in accordance with the Agreement; Seller will provide Buyer with relevant information regarding the matter and any Seller planned actions to minimize any impact on Buyer, and in the case of any disruption to supply, provide daily updates or relevant information in writing until the supply disruption is resolved; and

			

 

	 	
			b)

				
			of any infrastructure works which Seller may be aware of and which potentially may impact available supply to the Buyer.

			

 

	
			5.5

				
			The Parties shall reasonably cooperate to establish a mutually agreeable monthly delivery schedule for Fuel to be delivered hereunder, taking into account the capabilities of the Seller Facilities and Seller’s obligations to its other customers, it being the expectation that such schedule shall provide for delivery of the Minimum Annual Contract Quantity substantially on a ratable basis, provided that Buyer may request a reasonable variation to the monthly amount with sixty (60) days’ advance written notice (but without limiting Buyer’s obligation to take and pay for the Minimum Annual Contract Quantity for the year in question); provided, however, that Buyer shall pay for and receive, or cause to be received by a third party, or pay for even if not taken, at least twenty percent (20%) of the Minimum Annual Contract Quantity on a quarterly basis.

			

 

 

 

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			5.6

				
			[*****].

			

 

	
			5.7

				
			The Parties acknowledge that as of the date hereof there are various Production Emissions Credits and User-Specific Credits related schemes or programs currently under consideration (e.g., the Renewable Energy Directive) but which have not yet been finalized. On or before the Commencement Date, Seller agrees to obtain, at Seller’s cost and expense, a Sustainability Certification with respect to each Seller Facility. In addition, by the later of: (i) the Commencement Date, and (ii) the date CORSIA goes into effect, Seller shall cause the Fuel to be certified as an eligible fuel for participation in CORSIA. If Seller has not caused the Fuel to be certified as an eligible fuel for participation in CORSIA within the time frame set forth in the preceding sentence, Seller shall have an additional six (6) month period to cure such failure. If Seller has not obtained such certification under CORSIA within such six (6) month cure period, Buyer shall have the right to terminate the Agreement on twenty (20) days’ written notice to Seller, without any further liability of either Party arising out of such termination. After obtaining the same, Seller shall maintain such Sustainability Certification and certification under CORSIA for the duration of the Term. If the Fuel fails to be eligible for emission offset measures under the Renewable Energy Directive or fails to qualify as a CORSIA eligible fuel, the purchase price for the Fuel shall be reduced by the portion of the economic value of the applicable credits that Buyer otherwise would have received under such programs pursuant to this Agreement. Notwithstanding the previous sentence, if the Fuel subsequently becomes eligible for CORSIA or for emission offset measures under the Renewable Energy Directive, the reduction in purchase price for the Fuel in connection with such initial ineligibility shall be reversed. To the extent the subsequent eligibility entitles the Fuel to earn any applicable credits retroactively, Seller may reverse such reduction in price retroactively.

			

 

	
			5.8

				
			[*****]. To the extent a recognition, award, or allocation of offsets, credits, allowances, or other tangible rights scheme or regime applicable to the Fuel is established such that it is not clear whether a Production Emissions Credit or User-Specific Credit is generated or created, Seller and Buyer shall first attempt to reach mutual agreement on the allocation of such recognition, award, or allocation of offsets, credits, allowances, or other tangible rights scheme or regime applicable to the Fuel in accordance with the foregoing intent and, if such allocation is not possible, Seller and Buyer agree to take such steps as may be necessary and appropriate to share equally in the economic value of such recognition, award, or allocation of offsets, credits, allowances, or other tangible rights applicable to the Fuel. In the event and to the extent that a recognition, award, or allocation of offsets, credits, allowances, or other tangible rights scheme or regime applicable to the Fuel allows for dual use of a recognition, award, or allocation of offsets, credits, allowances, or other tangible rights applicable to the Fuel both as a Production Emissions Credit and a User-Specific Credit, [*****]; provided that if such recognition, award, or allocation of offsets, credits, allowances, or other tangible rights scheme or regime applicable to the Fuel allows only the Production Emissions Credit or the User-Specific Credit to be used, but not both, then Seller and Buyer agree to take such steps as may be necessary and appropriate to maximize the economic value of such credits and to share equally therein. As new or modified schemes and regimes for recognition, award, or allocation of offsets, credits, allowances, or other tangible rights applicable to the Fuel arise in the future, Seller and Buyer agree to cooperate in good faith to confirm in writing the allocation of such recognition, award, or allocation of offsets, credits, allowances, or other tangible rights applicable to the Fuel in accordance with the foregoing principles. If, pursuant to the foregoing, the Parties agree to share in new or modified schemes and regimes, and, following and in accordance with such agreement, the Fuel fails to generate the applicable credits or attributes, the purchase price for the Fuel shall be reduced by the value of such credits or attributes that Buyer otherwise would have received.

			

 

 

 

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			6. 

				
			INSPECTIONS, AUDITS AND SAMPLES

			

 

	
			6.1

				
			Buyer or its representative shall have the right to perform a (technical) survey, audit or inspection of Seller’s records on quality control and checks of the Fuel. The records set forth in this Section 6.1 shall be made available for inspection or survey, as the case may be, by Buyer at the Seller Facilities. A (technical) survey or inspection shall be made during normal working hours. Buyer shall give reasonable notice of its intention to perform a technical survey or inspection as provided in this Section 6.1, and shall use its best endeavors not to hinder, delay or disrupt Seller’s activities.

			

 

	
			6.2

				
			Buyer or its representative shall have the right to obtain samples of the Fuel intended to be delivered to Buyer in accordance with the Agreement, to be taken by Seller or Seller’s representative with Buyer having the right to be present. Buyer shall give Seller reasonable advance notice of its intention to obtain samples.

			

 

	
			7. 

				
			COMPLAINTS & CLAIMS

			

 

	
			7.1

				
			Complaints as to short delivery or delays shall be notified to Seller at the time of delivery, followed by a written claim to be made within fifteen (15) days after delivery.

			

 

	
			7.2

				
			Complaints as to defects in quality or any other matter shall be notified to Seller as soon as practicable, followed by a written claim to be made within thirty (30) days after delivery.

			

 

	
			7.3

				
			If the claim is not made within either the 15-days period or the 30-days period, respectively, it represents a waiver of the right to claim. In no event is a waiver of the right to claim made or implied by a signature or any other statement on the Delivery Note, irrespective of whether or not such Delivery Note contains conditions implying such waiver.

			

 

	
			8. 

				
			DUTIES, TAXES AND CHARGES

			

 

	
			8.1

				
			Buyer shall pay any taxes, fees or other charges, imposed by any national, local or airport authority on the delivery, sale, inspection, storage and use of Fuel, except for taxes on Seller’s income and taxes on raw material. To the extent allowed, Seller shall show these taxes, fees and other charges as separate items on the invoice for the account of Buyer.

			

 

	
			8.2

				
			Seller shall keep Buyer informed at all times about the taxes, duties and charges existing or to be charged to Buyer. Should Seller, however, in good faith provide inaccurate or incomplete information to Buyer, Buyer shall not be relieved of the obligation to pay. Buyer may, or at Buyer’s request, Seller shall, as an applicable nominal party, take all actions necessary to contest the validity, applicability or any other like challenge with respect to the amount or application of such taxes, duties and charges (including but not limited to withholding of any tax) and shall institute actions to recover past or anticipated payments thereof, provided, as to withholding of any tax, that Buyer gives Seller an indemnity which meets any reasonable requirement of Seller. Unless other arrangements are made, all actions taken in this respect shall be at Buyer’s sole expense. If Buyer is entitled to purchase any Fuel sold pursuant to the Agreement free of any taxes, duties or charges, Buyer shall deliver to Seller a valid exemption certificate for such purchase.

			

 

	
			9. 

				
			FORCE MAJEURE

			

 

	
			9.1

				
			In addition to any waivers (arising out of the same or other causes) provided by operation of law, no failure or omission by either Party to carry out or observe any of the provisions of the Agreement (except for Section 9.6 hereunder) shall give rise to any claim against that Party, or be deemed to be a breach of the Agreement, if the same shall arise out of a Force Majeure event. A Force Majeure event for the purposes of this Agreement means any cause not within the reasonable control of the Party claiming Force Majeure (whether or not foreseeable) and not occasioned by such Party’s fault or negligence that prevents or delays, in whole or in part, such Party’s performance of one or more of its obligations under this Agreement. Provided that they satisfy the foregoing requirements, Force Majeure events may include such causes as labor disputes, strikes, governmental intervention, or the Party’s response to the insistence of any governmental instrumentality or Person purporting to act therefore, terrorism, wars, civil commotion, hijacking, fire, flood, accident, storm or any act of God.

			

 

 

 

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			9.2

				
			Notwithstanding the provisions of Section 9.1, neither Party shall be relieved by reason of Force Majeure of any obligation to make payment under the Agreement. Neither the ability of Buyer to obtain better economic terms for Fuel from an alternative supplier, nor any cost increase resulting from a circumstance that in itself is not a Force Majeure event, however substantial, in Seller’s performance of the Agreement, as applicable, shall constitute Force Majeure. The default of a sub-supplier or subcontractor shall not constitute a Force Majeure event (except to the extent the sub-supplier or subcontractor is affected by a Force Majeure event).

			

 

	
			9.3

				
			The Party affected by the Force Majeure shall use all reasonable endeavors to remove such reasons or mitigate the effects thereof, and upon removal and remedying of such reason said Party shall promptly resume the performance of its obligations, provided, however, that, in removing such reasons or mitigating such efforts, a Party shall not be required to settle strikes or lockouts or government claims by acceding to any demands when, in the discretion of that Party, it would be inappropriate to do so.

			

 

	
			9.4

				
			If deliveries are delayed, hindered or prevented due to Force Majeure on Seller’s part, Buyer shall be free to purchase Fuel from third parties during such period.

			

 

	
			9.5

				
			Buyer shall be released from the obligation to receive and/or pay for any Fuel not provided or made available by Seller to Buyer due to a Force Majeure.

			

 

	
			9.6

				
			In the duration of any Force Majeure event affecting Seller, Seller shall be entitled to apportion the remaining capacity of Fuel as it sees fit, albeit in an equitable and non-discriminatory manner.

			

 

	
			9.7

				
			If an event of Force Majeure affecting Seller occurs, and such event of Force Majeure wholly prevents Seller from making available any Fuel hereunder to Buyer, Seller may, in its sole discretion, notify Buyer of Seller’s extension of the term of any particular Location Agreement by a number of days equal to the period from the day such event of Force Majeure took effect until the end of such event of Force Majeure, on condition that such extension of the Agreement is also acceptable to the Buyer.

			

 

	
			10. 

				
			LIABILITY AND INDEMNITY

			

 

	
			10.1

				
			Buyer shall indemnify, defend, HOLD and save harmless the Seller Indemnitees from and against any and all Claims and Losses of Third Parties for loss of or damage to any property whatsoever or for injury, including fatal injury, and death to any person whatsoever that arise out of or are connected with actions or omissions in the performance by Buyer of its obligations under this Agreement, or that arise out of or are connected with the handling, storage, sales, transportation, use, misuse, blending, processing or disposal by or on behalf of Buyer, Buyer’s customers, or their respective Affiliates or their contractors or carriers of any tier, of any Fuel after such Fuel has been delivered to the Delivery Point, except in each case to the extent caused by Seller’s breach of the Agreement, or the negligence or willful misconduct of Seller or any Seller Indemnitee.

			

 

	
			10.2

				
			Seller shall indemnify, defend and save harmless the Buyer Indemnitees from and against any and all Claims and Losses of Third Parties for loss of or damage to any property whatsoever or for injury, including fatal injury, and death to any person whatsoever that arise out of or are connected with actions or omissions in the performance by Seller of its obligations under this Agreement, or that arise out of or are connected with the handling, storage, sales, transportation, use, misuse, blending, processing or disposal by or on behalf of Seller or its Affiliates or their contractors or carriers of any tier, of any Fuel prior to the time such Fuel has been delivered to the Delivery Point, except in each case to the extent caused by Buyer’s breach of the Agreement, the negligence or willful misconduct of Buyer or any Buyer Indemnitee.

			

 

 

 

 

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			10.3

				
			The liability of Seller for any loss, damage, claim or other expenditure arising from Seller failing to perform its obligations under the Agreement shall be limited to the prompt refund of the price of an affected delivery or (at Seller’s option), the replacement of affected Fuel at no additional cost to Buyer. The preceding sentence and limitations shall not apply in relation to any indemnities owed by the Seller to the Buyer, including under preceding Section 10.2.

			

 

	
			10.4

				
			Notwithstanding anything to the contrary in these General Terms and Conditions or the Agreement, neither Party shall, under any circumstances, be liable to the other Party for consequential, incidental, special, punitive, or exemplary damages arising out of or related to the transactions contemplated under this Agreement, including, but not limited to, lost profits or loss of business, or business interruption damages, even if apprised of the likelihood of such damages occurring, and regardless of whether available in tort or agreement or by statute. These limitations shall apply even if it causes a remedy in this Agreement to have failed of its essential purpose. the limitations of this Section 10.4 shall not prevent the recovery through the indemnification provisions of this Article 10 of consequential, incidental, special, punitive, or exemplary damages suffered by and paid to a Third Party by an indemnified Party (excluding Third Party customers of an indemnified Party) as a result of actions included in the protection afforded by the indemnification provisions of Article 10.

			

 

	
			11. 

				
			TERMINATION

			

 

	
			11.1

				
			In addition to any other rights of termination expressly set forth in this Agreement, in the event Seller withdraws its operation from or Buyer ceases its operation at any location mentioned in a Location Agreement, in any such case for any reason, either Party shall have the right to terminate such Location Agreement. However, in no event shall any such termination relieve Buyer of its obligation to take and pay for, or pay for even if not taken, the Minimum Annual Contract Quantity specified in Article 8 of the Agreement for the remainder of its Term; provided, however, that Buyer shall have no obligation to take and pay for, or pay for even if not taken, quantities specified under such Location Agreement where Seller terminates as provided in the first sentence of this Section 11.1. Where the Seller is the terminating Party, the Seller shall use its best endeavors to give three months’ notice of such termination. Where the Buyer is the terminating Party, the Buyer shall use its best endeavors to give 30 (thirty) days’ notice of such termination. The termination will be effective no earlier than the date stated in the written notice to the other Party.

			

 

	
			12. 

				
			DEFAULTS AND REMEDIES

			

 

	
			12.1

				
			A Party shall be deemed to be in default hereunder if any of the following events occur (each of the following events to be referred to as an “Event of Default”, the Party in default to be referred to as the “Defaulting Party” and the Party not in default to be referred to as the “Non-Defaulting Party”):

			

 

	 	
			a)

				
			The failure to make, when due, any payment required pursuant to this Agreement if such failure is not remedied within thirty (30) days after written notice thereof;

			

 

	 	
			b)

				
			In case of a material breach (or a number of breaches that collectively constitute a material breach, including any continuous or persistent breaches) of the Agreement by the other Party, but only insofar the other Party has not cured its breach of the Agreement within sixty (60) days of receiving written notice of the default from the first Party, provided that if such sixty (60) day period is not sufficient to enable the remedy or cure of such failure in performance, and such Party shall have upon receipt of the initial notice promptly commenced and diligently continues thereafter to remedy such failure, then such Party shall have a reasonable additional period of time not to exceed an additional sixty (60) day period;

			

 

 

 

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			c)

				
			If the other Party becomes insolvent, makes a general assignment for the benefit of its creditors or commits an act of bankruptcy or if a petition for its reorganization or readjustment of its indebtedness is filed by or against it and, in the case of any such petition filed against it, such petition is not dismissed within ninety (90) days, or if a receiver, trustee or liquidation of all or substantially all of its property is appointed;

			

 

	 	
			d)

				
			Any representation or warranty made by such Party herein is false or misleading in any material respect when made or when deemed made or repeated; or

			

 

	 	
			e)

				
			For the benefit of Seller, if Buyer fails to satisfy the creditworthiness/collateral requirements of this Agreement and such failure continues for five (5) Business Days after written notice thereof.

			

 

	 	
			Notwithstanding the foregoing, a Party shall not be in default of its obligations hereunder to the extent such failure is, and to that extent only, (i) caused by or is otherwise attributable to a breach by the other Party of its obligations under this Agreement, or (ii) occurs as a result of a Force Majeure event declared by a Party in accordance with this Agreement.

			

 

	
			12.2

				
			If either Party reasonably believes that an event has occurred which, if not remedied within the applicable cure period explicitly set forth in Section 12.1 above, would result in an Event of Default by or affecting the other Party, the Non-Defaulting Party shall give the Defaulting Party a notice (a “Default Notice”), which shall specify and provide particulars of the alleged Event of Default. If such Event of Default continues uncured following the cure period specified above for such Event of Default, then the Non-Defaulting Party shall have such remedies as may be available to it at law or in equity subject, however, to the limitations on liability provided herein. For clarity, this shall non-exhaustively include the right to forthwith terminate this Agreement or a Location Agreement (to the extent applicable to any Location Agreement with respect to which an Event of Default has occurred) on written notice to the Defaulting Party. If no cure period is specified in Section 12.1 for the Event of Default evoked by a Party, then occurrence of such Event of Default shall entitle the non-Defaulting Party to terminate this Agreement and any Location Agreement(s) forthwith.

			

 

	
			12.3

				
			Notwithstanding early termination, each Party shall fulfill all obligations accrued under the Agreement prior to the time the termination becomes effective and shall not be released from antecedent/accrued rights or liabilities.

			

 

	
			13. 

				
			SUBCONTRACTING

			

 

Seller may, without prior consent of Buyer, subcontract the performance of its obligations under the Agreement in whole or in part to a third party, provided that Seller acknowledges and agrees that it shall be responsible to Buyer for the acts and omissions of its subcontractors to the same extent as Seller is responsible to Buyer for the acts or omissions of its own employees.

 

	
			14. 

				
			NON-WAIVER

			

 

No failure or delay of any Party (including their employees and Agents) to exercise any right or power under the Agreement or at law shall operate as a waiver thereof, except as expressly provided in the Agreement, nor shall any single or partial exercise of any such right or power preclude any other or further exercise thereof or the exercise of any other right or power under the Agreement, and no waiver of any Party of any provision or part of any provision of the Agreement shall be binding unless expressly confirmed in writing.

 

 

 

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			15. 

				
			NON-DISCLOSURE

			

 

	
			15.1

				
			“Confidential Information” means any information disclosed by either Party to the other Party, directly or indirectly, in writing, orally, or by inspection of tangible objects (including documents, prototypes, samples, plant, and equipment), which is designated as “Confidential,” “Proprietary,” or some similar designation, or that should reasonably be understood to be confidential from the context of disclosure. Confidential Information will not, however, include any information that the receiving Party can show by competent evidence: (a) was publicly known and made generally available in the public domain prior to the time of disclosure by the disclosing Party; (b) becomes publicly known and made generally available after disclosure by the disclosing Party to the receiving Party through no action or inaction of the receiving Party; (c) is already in the possession of the receiving Party at the time of disclosure by the disclosing Party, as shown by the receiving Party’s files and records, except if so antecedently received by a Person in the context of the negotiation of this Agreement; (d) is obtained by the receiving Party from a third party without breach of the third party’s obligations of confidentiality; or (e) is independently developed by the receiving Party without use of or reference to the disclosing Party’s Confidential Information. For the avoidance of doubt, the Agreement, the information contained in the Agreement and the existence of the Agreement itself shall be considered Confidential Information. Each receiving Party shall keep the Confidential Information disclosed to it by the disclosing Party confidential, shall take all measures reasonably necessary to safeguard confidentiality (at any rate no less than those taken by a reasonable business for safeguarding its own highly sensitive commercial information), and shall not disclose such Confidential Information, in whole or in part, except to those of its directors, consultants, officers, and employees, Agents, consultants, advisors, and in the case of Seller, debt or equity finance parties providing or potentially providing financing to Seller or its Affiliates (i) who need to know such Confidential Information for the purpose of this Agreement or for potentially entering into this Agreement, (ii) who have been informed of the confidential nature of such information, and (iii) who are obligated to keep such information in confidence pursuant to terms of this Agreement.

			

 

	
			15.2

				
			In addition to the specific obligations otherwise set forth in this Agreement, the receiving Party shall:

			

 

	 	
			a)

				
			safeguard and hold in confidence all such Confidential Information using efforts commensurate with those it employs for the protection of corresponding sensitive information of its own, which in any event shall not be a lesser standard than the type of efforts that would be taken by a reasonable business for the protection of its own highly sensitive information and trade secrets; and

			

 

	 	
			b)

				
			not use such Confidential Information, directly or indirectly, for any purposes other than the performance of this Agreement and not use such Confidential Information for the receiving Party’s own benefit or for any purpose detrimental to the interests of the disclosing Party.

			

 

	
			15.3

				
			However:

			

 

	 	
			a)

				
			Each Party is allowed to disclose Confidential Information to any governmental or supranational authority to the extent disclosure is legally compulsory, provided, however, that, to the extent permitted by law, such Party shall inform the disclosing Party of such governmental request for information with advance written notice; and

			

 

	 	
			b)

				
			The Buyer is allowed to disclose information of any findings resulting from any audit, investigation or inspection conducted under this Agreement to members and directors of IATA, IFQP, JIG and other fuel quality organizations the Buyer may be a member of, where such findings relate to a safety of flight issue for the Buyer and/or other aircraft operators.

			

 

	
			15.4

				
			In the event of a contested disclosure, the burden of demonstrating that the information in issue was not confidential shall be borne by the Party having received the same.

			

 

 

 

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			15.5

				
			Each Party undertakes that, should it commit any breach of its confidentiality obligations under this Agreement, it will take all reasonable measures to remedy the breach. Each Party agrees that money damages may not be a sufficient remedy for any breach of the confidentiality obligations in this Agreement, and each Party shall be entitled to seek injunctive or other equitable relief to remedy or forestall any such breach or threatened breach.

			

 

	
			15.6

				
			Nothing in this Agreement is intended to or shall be construed as granting to any Party any license or right under any patent, copyright, or other intellectual property right of the other Party, nor shall this Agreement impair the right of any Party to contest the scope, validity, or alleged infringement of any patent or copyright. This Agreement shall not grant any Party any rights in or to the Confidential Information of the other Party, except as expressly set forth in this Agreement.

			

 

	
			16. 

				
			NOTICES

			

 

	
			16.1

				
			All notices and communications required to be given pursuant to this Agreement shall be:

			

 

	 	
			a)

				
			in writing;

			

 

	 	
			b)

				
			delivered by hand (against receipt), recorded courier or express service, or sent by electronic mail; provided that any communications delivered by electronic email shall be in a portable document format (PDF); and

			

 

	 	
			c)

				
			delivered, sent or transmitted to the address for the recipient’s communications as stated below; provided that:

			

 

	 	
			i)

				
			if the recipient gives the other Party notice of another address, communications shall thereafter be delivered accordingly; and

			

 

	 	
			ii)

				
			if the recipient has not stated otherwise when requesting an approval or consent, it may be sent to the address from which the request was issued.

			

 

	
			16.2

				
			Any such notice and communication shall be deemed to have been received by a Party as follows:

			

 

	 	
			a)

				
			if delivered by hand or delivered by courier or express service, at the time of delivery; or

			

 

	 	
			b)

				
			if sent by electronic mail properly addressed and dispatched, upon transmission, if during the recipient’s regular business hours, and otherwise, on the next Business Day, provided that in either case such notice shall not be effective unless a copy of such notice shall be sent by registered or certified mail, return receipt requested, postage prepaid.

			

 

	
			16.3

				
			Notices shall be sent between the Parties to the respective addresses as follows (or to such other address as may be specified by Notice to the other Party):

			

 

Seller’s address:

 

Gevo, Inc.,

345 Inverness Drive South

Building C, Suite 310

Englewood, Colorado 80112

Attention: Tim Cesarek

Email: [*****]

 

With a copy to:

 

Gevo, Inc.,

345 Inverness Drive South

Building C, Suite 310

Englewood, Colorado 80112

Attention: General Counsel

Email: [*****]

 

 

 

	Fuel Supply Agreement	Annex I | Page 13

 

 

 

 

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Buyer’s address:

 

Delta Air Lines, Inc.

1030 Delta Blvd. ATG/981

Atlanta, GA 30354, USA

Attention: Director of Fuel Procurement & Operations

With a copy to: General Counsel

 

 

	
			17. 

				
			ENTIRE AGREEMENT

			

 

The Agreement contains all agreements, arrangements and stipulations between the Parties in respect of the supply of Fuel for the location(s) specified herein and supersede all prior agreements, arrangements and stipulations in respect of the same subject.

 

	
			18. 

				
			SEVERABILITY

			

 

Any provision of the Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof (provided the substance of the agreement between the Parties is not thereby materially altered), and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted by Applicable Laws, the Parties hereto hereby waive any provision of Applicable Law which renders any provision hereof prohibited or unenforceable in any respect.

 

	
			19. 

				
			INDEPENDENT CONTRACTORS

			

 

The Parties are and remain independent companies and no partnership, joint venture, or relationship of employee/employer shall arise or is intended to be created by the Agreement between the Parties whether for the purpose of workers’ compensation, national insurance, income tax, social security or otherwise. Nothing in the Agreement shall be construed as to create an association of whatsoever legal form between the Parties. Neither Party shall have authority to contract on behalf of the other Party or otherwise engage the responsibility or liability of the other Party, and shall make no representation to any Third Party to the contrary.

 

	
			20. 

				
			MODIFICATIONS

			

 

Modifications or amendments to the Agreement are only valid when expressly agreed upon in writing.

 

	
			21. 

				
			OFFICIAL VERSION

			

 

These General Terms and Conditions and the Agreement shall be executed in the English language and the English language will be the only official language. Translations in any other language may be made for convenience purposes, but those translations shall in no event limit, alter, interpret, define or amend the contents of the English version of the General Terms and Conditions or the Agreement.

 

 

 

	Fuel Supply Agreement	Annex I | Page 14

 

 

 

 

ANNEX II

LOCATION AGREEMENTS (FOR EACH LOCATION)

 

to the Fuel Sales Agreement Between Buyer and Seller

dated March 16, 2022 

 

Capitalized terms used by not defined in this Annex II shall have the respective meanings given to them in the Agreement.

 

	
			1.

				
			Location:

				
			[XXXXX]

			
	 	 	 
	
			2.

				
			Buyer:

				
			[XXXXX]

			
	 	 	 
	
			3. 

				
			Buyer Affiliates:

				
			[XXXXX]

			
	 	 	 
	
			4.

				
			Seller: 

				
			Gevo, Inc.

			
	 	 	 
	
			5.

				
			Delivery

			Commencement

			Date:

				
			As of the Commencement Date as set forth in the Agreement.

			
	 	 	 
	
			6.

				
			Last Day of

			Delivery:

				
			As set forth in Section 4.6 of the Agreement.

			
	 	 	 
	
			7.

				
			Delivery

			Schedule:

				
			As per Article 8 of the Agreement.

			
	 	 	 
	
			8.

				
			Fuel

			specifications:

				
			As per Section 3.1 of Annex I of the Agreement.

			
	 	 	 
	
			9.

				
			Price:

				
			As per Article 5 of the Agreement.

			

 

 

 

	Fuel Supply Agreement	Annex II | Page 12

 

 

 

 

Confidential

 

 

 

	DATED	 	 

 

	
			GEVO, INC.

			 

			as “Seller”

			 

				 	
			DELTA AIR LINES, INC.

			 

			as “Buyer”

			
	
			By:

			 

				 	 	
			By:

				 
	
			Name:

			 

				 	 	
			Name:

				 
	
			Title:

			 

				 	 	
			Title:

				 

 

 

 

 

 

 

 

 

 

	Fuel Supply Agreement	Annex II | Page 2

 

 

 

 

Appendix A

 

CORSIA Eligible Fuel Claim Form

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	Fuel Supply Agreement	
			Appendix A | Page 1

			

 

 

 

 

Confidential

 

 

 

 

	Fuel Supply Agreement	Appendix A | Page 2

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