Document:

EX-10.1.2

 Exhibit 10.1.2 

JUNIOR SECURED NOTE 

June 29, 2015          

EAGLE MOUNTAIN ACQUISITION LLC, a Delaware limited liability company (“Borrower”), for value received, promises to pay
to the order of CIL&D, LLC, a Delaware limited liability company (the “Lender”), as set forth below at the mailing address of 337 N. Vineyard Ave., 4th Floor, Ontario, CA 91764 (the “Payment Address”), or
at such other place as may be designated in writing by Lender, in lawful money of the United States of America in immediately available funds, an amount equal to (i) the Initial Loan Amount (defined below), and (ii) the Contingent Loan
Amounts (defined below), together with interest on all such amounts from the date hereof, at the rate or rates and the in the manner hereinafter specified. 

WHEREAS, Borrower is a party to that certain Purchase and Sale Agreement dated as of June 25, 2015 (the “Purchase
Agreement”) among Borrower, Lender, Eagle Mountain LLC, a Delaware limited liability company that is the sole member of Borrower (“Holdco”), Eagle Crest Energy Company, a California corporation (“ECEC”),
and Kaiser Eagle Mountain, LLC, a Delaware limited liability company (“KEM”), pursuant to which, among other things, Lender agreed to sell to Borrower 100% of the ownership interest in KEM; 

WHEREAS, as payment of the purchase price to Lender under the Purchase Agreement, Borrower and Lender entered into (i) this
promissory note (this “Note”) and (ii) that certain promissory note in the amount of $4,250,000 of even date herewith in favor of Lender (the “Senior Note” and together with this Note, the
“Notes”). Collectively, payment obligations under the Notes are sometimes referred to herein as the “Loan”. Capitalized terms used herein without definition shall have the meanings ascribed to such terms in the
Senior Note; 
 WHEREAS, this Note is directly and indirectly secured by, among other things (collectively, the “Collateral
Agreements”): (i) a pledge by Borrower of 100% of the membership interest in KEM (the equity and other interest pledged under the foregoing pledge agreement is sometimes referred to herein as the “KEM Pledged
Collateral”), (ii) a pledge by Holdco of 100% of the membership interest in Borrower (the equity and other interest pledged under the foregoing pledge agreement is sometimes referred to herein as the “Borrower Pledged
Collateral”), (collectively, the equity and other interest pledged under the foregoing pledge agreement together with the KEM Pledged Collateral is sometimes referred to herein as the “Pledged Collateral”), (iii) a
guaranty by KEM with respect to Borrower’s payment of the Loan, (iv) a guaranty by Holdco with respect to Borrower’s payment of the Loan, and (v) a deed of trust, assignment of leases and rents, security agreement and fixture
filing granted by KEM in favor of Lender (the “Deed of Trust”) with respect to certain real property at Eagle Mountain, Riverside County, California (the “Eagle Mountain Property”) in order to secure KEM’s
obligations under its guaranty. Collectively, the Notes and the Collateral Agreements are referred to herein as the “Loan Documents”; and 

WHEREAS, Borrower, Holdco, ECEC, Lender, KEM and First American Title Insurance Company , as Escrow Agent, are entering into that
certain Escrow Instructions and Agreement dated as of June 25, 2015 (the “Escrow Agreement”) providing for a joint escrow and the closing of the sale transaction under the Purchase Agreement pursuant to the terms, procedures,
covenants and conditions set forth in the Escrow Agreement. 
 NOW, THEREFORE, as an inducement to Lender to enter into the Purchase
Agreement and to accept the Notes, and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, Borrower and Lender hereby agree as follows: 

1. Recitals. Each of the recitals set forth above are true and correct and incorporated herein. 

 2. Interest Rate. So long as no default or Event of Default has occurred, interest
shall accrue on the unpaid principal amount outstanding under this Note, compounded monthly at a rate equal to five and seventy-one hundredths percent (5.71%) per annum (“Initial Loan Interest Rate”). The initial principal
amount shall be $19,000,000.00 (the “Initial Loan Amount”). 
 3. Calculation of Interest. All Interest Rates
payable hereunder shall be calculated on the basis of the actual number of days elapsed over a period of 365 days commencing on the date of this Note. 

4. Initial Loan Interest and Principal Payments. 

(a) Commencing on July 1, 2015 and on the first day of each calendar month thereafter, accrued, but unpaid, interest shall be added to
and made part of the principal amount outstanding under this Note. 
 (b) All amounts of principal under this Note shall be due and payable
on the Initial Maturity Date unless (i) Initial Maturity Date is extended pursuant to Section 6(b) below or (ii) the Initial Maturity Date is accelerated by the terms of this Note, including pursuant to Section 9 below. 

5. Contingent Loans. Unless this Note has earlier been paid in full: 

(a) First Contingent Loan. 

(i) On May 31, 2018 (“First Contingent Loan Date”), without further notice or action by the Borrower or
the Lender, Borrower shall owe an additional amount equal to $5,000,000 multiplied by the ratio of (A) the principal amount outstanding under this Note and interest accrued thereon as of the First Contingent Loan Date to (B) the full
Initial Loan Amount plus all interest that would have accrued under this Note as of the First Contingent Loan Date (“First Contingent Loan Amount”) to Lender as evidenced by this Note. 

(ii) From the First Contingent Loan Date through and until the Third Contingent Loan Date (defined below), interest on the
First Contingent Loan Amount shall accrue at an annual rate equal to eight percent (8%) per year (“First Contingent Loan Interest Rate”), payable monthly. 

(iii) From the Third Contingent Loan Date through and until the Final Maturity Date, interest on the First Contingent Loan
Amount shall accrue at an annual rate equal to twelve percent (12%) per year, payable monthly. For the avoidance of doubt, the maturity date for the First Contingent Loan shall be the Final Maturity Date. 

(iv) All accrued, but unpaid, interest on the First Contingent Loan Amount shall be paid by the Borrower to the Lender in
immediately available funds on the first business day of each month until the Final Maturity Date. 
 (b) Second Contingent Loan.

 (i) On February 28, 2019 (“Second Contingent Loan Date”), without further notice or action by the
Borrower or the Lender, Borrower shall owe an additional amount equal to 

  
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$7,000,000 multiplied by the ratio of (A) the principal amount outstanding under this Note and interest accrued thereon as of the Second Contingent Loan Date (excluding the First Contingent
Loan Amount any interest accrued thereon) to (B) the full Initial Loan Amount plus all interest that would have accrued under this Note as of the Second Contingent Loan Amount (“Second Contingent Loan Amount”) to Lender as
evidenced by this Note. 
 (ii) From the Second Contingent Loan Date through and until the Third Contingent Loan Date
(defined below), interest on Second Contingent Loan Amount shall accrue at an annual rate equal to eight percent (8%) per year (“Second Contingent Loan Interest Rate”), payable monthly. For the avoidance of doubt, the maturity
date for the Second Contingent Loan shall be the Final Maturity Date. 
 (iii) From the Third Contingent Loan Date through
and until the Final Maturity Date, interest on the Second Contingent Loan Amount shall accrue at an annual rate equal to twelve percent (12%) per year, payable monthly. 

(iv) All accrued, but unpaid, interest on the Second Contingent Loan Amount shall be paid by the Borrower to the Lender in
immediately available funds on the first business day of each month until the Final Maturity Date. 
 (c) Third Contingent Loan.

 (i) On September 30, 2020 (“Third Contingent Loan Date”), without further notice or action by the
Borrower or the Lender, Borrower shall owe an additional amount equal to $8,000,000 multiplied by the ratio of (A) the principal amount outstanding under this Note and interest accrued thereon as of the Third Contingent Loan Date (excluding the
First Contingent Loan Amount, Second Contingent Loan Amount and any interest accrued thereon) to (B) the full Initial Loan Amount plus all interest that would have accrued under this Note as of the Third Contingent Loan Amount (“Third
Contingent Loan Amount”) to Lender as evidenced by this Note. 
 (ii) From the Third Contingent Loan Date through
and until the Final Maturity Date, interest on the Second Contingent Loan Amount shall accrue at an annual rate equal to twelve percent (12%) per year (“Third Contingent Loan Interest Rate”), payable monthly. For the avoidance
of doubt, the maturity date for the Third Contingent Loan shall be the Final Maturity Date. 
 (iii) All accrued, but
unpaid, interest on the Third Contingent Loan Amount shall be paid by the Borrower to the Lender in immediately available funds on the first business day of each month until the Final Maturity Date. 

(d) For the avoidance of doubt, (i) the First Contingent Loan Amount, the Second Contingent Loan Amount and the Third Contingent Loan
Amount are sometimes referred to herein as the “Contingent Loan Amounts” and (ii) the Initial Loan Interest Rate, First Contingent Loan Interest Rate, the Second Contingent Loan Interest Rate and the Third Contingent Loan
Interest Rate are sometimes referred to herein as the “Interest Rates.” 
 6. Initial Maturity; Extension. 

 (a) Unless (i) the Senior Note has been paid in full on or before February 29, 2016 (the “Initial Maturity
Date”), and (ii) Borrower timely notifies Lender at least three (3) business days 

  
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before the Initial Maturity Date that Borrower elects to exercise its option to extend the maturity date of this Note as provided in Section 6(b) below, all unpaid principal of, and accrued
but unpaid interest (if any) on, this Note shall be due and payable on the Initial Maturity Date. 
 (b) If (A) the Senior Note has
been paid in full on or before Initial Maturity Date, (B) Borrower timely notifies Lender at least three (3) business days before the Initial Maturity Date that Borrower elects to exercise its option to extend the maturity date of this
Note, the maturity date of this Note shall be automatically converted from the Initial Maturity Date to May 31, 2025 (“Final Maturity Date”), and absent the earlier acceleration of payments pursuant to Section 9 below or
the exercise of Lender’s remedies as otherwise provided hereunder, all unpaid principal of, and accrued but unpaid interest (if any) on, this Note shall be due and payable on the Final Maturity Date. 

7. Calculation of Payments; Application of Payments. 

(a) Schedule 2 attached hereto sets forth the anticipated schedule of (i) interest to be accrued, (ii) interest to be added
to the principal amount of this Note, and (iii) interest to be paid to Lender in immediately available funds. Borrower acknowledges and agrees that such schedule is for illustrative purposes only and all payments due under this Note shall be
calculated by the Lender pursuant to the terms of this Note. 
 (b) Payments made to Lender by Borrower hereunder shall be applied
(i) first to any reasonable, out-of-pocket fees or expenses of Lender arising under this Note, under any of the other Loan Documents or as may otherwise become due to Lender under the Loan Documents, (ii) second, to accrued interest under
this Note, and (iii) last, to the unpaid principal balance of this Note. 
 (c) Following the occurrence and during the continuance of
an Event of Default, any payments received by Lender from or on behalf of Borrower shall be applied by Lender as Lender shall determine in its sole and absolute discretion. 

8. Mandatory Purchase of Interest in Note. For purpose of this Note, the term “ECEC Sellers” shall mean any one
or more of Upfront III Ventures, L.P., Upfront III Partners, L.P., Upfront III, L.P., Stephen Lowe, Kristin Lowe, Lambda Investors LLC and Wex SP LLC, or any principal, member, shareholder or affiliate of any of them. 

(a) Upon a sale, transfer or other conveyance by one or more of the ECEC Sellers of more than 33% of the fully-diluted equity interests in
either ECEC or Holdco which are directly or indirectly owned by the ECEC Sellers, as a group, to a third party (excluding any sale, transfer or other conveyance to another ECEC Seller or any affiliate thereof), each of the ECEC Sellers making such
sale, transfer or conveyance shall, contemporaneously with such sale, transfer or conveyance, purchase from Lender, pursuant to a form of participation agreement or other agreement reasonably acceptable to Lender and such ECEC Seller (each a
“Note Purchase Agreement”), an interest in the Notes as follows (each a “Note Repurchase”): 

(i) in the Senior Note, and 

(ii) then in the Junior Note to the extent the Contribution Amount (as defined below) exceeds the amount then outstanding
under the Senior Note, 
 in an amount equal to the dollar value such ECEC Seller is paid for such sale multiplied by the ratio of (A) the amount of
such equity interests sold by such ECEC Seller over (B) the total amount of the equity interests in ECEC or Holdco, as applicable, held by all ECEC Sellers prior to such sale, transfer or other conveyance (the “Contribution
Amount”). 

  
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 (b) In connection with each Note Repurchase, such ECEC Seller shall become a lender under the
Senior and/or Junior Notes (as applicable) and shall become a beneficiary of the Collateral Agreements then in effect, as set forth in the applicable Note Purchase Agreement. 

(c) Notwithstanding the forgoing, regardless of any portion of the Notes sold to one or more of the ECEC Sellers, no such sale shall modify,
amend or waive any provision of the Notes without the express written consent of Lender, which consent shall be at the sole and absolute discretion of Lender, unless 67% or more of the then outstanding interests in the Notes would be held by ECEC
Sellers after such sale, in which case such consent shall not be unreasonably withheld, conditioned or delayed. 
 (d) Upon the execution
of such Note Repurchase Agreement, Lender shall execute a release of any guaranty and pledge provided by the applicable ECEC Seller in a form reasonably acceptable to such ECEC Seller but only with respect to such equity interest sold, transferred
or conveyed by such ECEC Seller. The guaranty and pledge of such applicable ECEC Seller with respect to any such equity interest not sold, transferred or conveyed by such ECEC Seller shall remain in full force and effect. 

(e) Each Note Repurchase Agreement shall be on terms reasonably acceptable to both Lender and the applicable ECEC Seller, provided however
that each Note Repurchase Agreement shall provide distribution of payments under the Note to the applicable ECEC Seller and to Lender at the same time and on a pro-rata basis. 

9. Conditional Acceleration. 

(a) For purpose of this Section, 

(i) “Key Financing” shall mean a cumulative amount of not less than $25,000,000 in committed financing from
and after the Effective Date, which amount may (A) be raised in one or more transactions, (B) include more than one type or source of funds including debt, equity or capital contributions, governmental grant or other similar financing, and
(C) be in favor of ECEC, Borrower or any affiliate. 
 (ii) “Industry Investors” shall mean any of one
or more persons that (A) is in the business of, among other things, developing and operating electrical power generating and energy storing assets, and (B) has experience within five (5) years immediately prior to Effective Date in
leading or jointly leading the development of one or more electric power generation or storage projects with an aggregate capital cost of not less than $250,000,000, as such amount shall be determined by Lender in its reasonable discretion. By way
of example but not limitation, as of the date hereof the person set forth on Schedule 1 hereto are acceptable to Lender as Industry Investors, and shall remain acceptable absent a material adverse change in financial standing of such Industry
Investor as reasonably determined by Lender. 
 (b) If any Key Financing does not consist at least fifty percent (50%) from one or
more Industry Investors, then $6,000,000 of the Initial Loan Amount (or any lesser amount then outstanding) together with all accrued but unpaid interest thereon (the “Accelerated Amount”), shall become due and payable on the date
thirty (30) days following the closing of such Key Financing. For the avoidance of doubt, should any portion of the Loan be accelerated pursuant to the terms of this clause 9(b), then the pre-paid Accelerated Amount shall be taken into account
when calculating the Contingent Loan Amounts pursuant to the terms of Section 5 above. 

  
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 (c) Notwithstanding the provisions in clause 9(b) above, so long as (i) such Key Financing
consists of at least thirty-three percent (33%) from one or more of the Industry Investors, and (ii) one or more of Industry Investor has been appointed either as (A) a member of the board of directors of ECEC, or (B) a senior
executive of ECEC, then the requirement of clause 9(b) above shall be waived and no accelerated payment of principal or interest shall become payable thereunder. 

(d) Notwithstanding the foregoing, if Borrower obtains financing and receives all funds necessary to finance construction of the planned
hydro-electric, pumped-storage project to be located on portions of the Eagle Mountain Property as such project may be modified, amended or revised from time to time (the “Project”) prior to the Final Maturity Date, this Note shall
be prepaid in accordance with Section 10 below, within thirty (30) days of the date such financing closes, without any requirement of notice to Borrower or any other action on the part of Lender. 

10. Prepayment. 

(a) This Note may be prepaid in full or in part at any time on or before March 31, 2016 without penalty or premium. 

(b) Except as otherwise required by Section 9(b) of this Note, this Note may be prepaid in full, but only in full at any time after
February 29, 2016, provided, that such prepayment shall include a “Prepayment Premium” equal to all interest that the pre-paid principal outstanding as of February 29, 2016 would otherwise have accrued through the Final Maturity
Date. Assuming no partial pre-payments are made, Borrower and Lender agree that $33,106,581 represents the full amount of interest and principal payments expected under this Note as of the Final Maturity Date as set forth on Schedule 2
attached hereto. 
 11. Grant and Protection of Security Interest. 

(a) To secure maintenance and preservation of that certain license granted to ECEC by the Federal Energy Regulatory Commission (the
“FERC License”) for the construction and operation of a planned hydro-electric, pumped-storage project to be located on portions of the Eagle Mountain Property as such project may be modified, amended or revised from time to time
(the “Project”) and the value of such assets held by ECEC (collectively, the “Secured Obligations”), Borrower hereby unconditionally and irrevocably grants to Lender a “Security Interest” as defined
in the Uniform Commercial Code as in effect from time to time in the State of California, and pursuant to this Note, in all of Borrower’s right, title and interest in, to and under the following, each case whether now owned or hereinafter
acquired: 
 (1) All general intangibles relating to the Project, including, without limitation, all studies, analyses and
reports commissioned by or on behalf of Borrower undertaken in contemplation or furtherance of the Project or the financing of the Project, and any contract rights related thereto or related to any other aspect of the Project analyzing, evaluating,
commencing, constructing, financing, completing or operating the Project (collectively, the “Project Collateral”); and 

(2) Any substitutes or replacements for any Project Collateral and all products and cash and non-cash proceeds of the foregoing
in whatever form, including, but not limited to, cash, negotiable instruments and other instruments for the payment of money, chattel paper, security agreements and other documents. 

(b) Borrower hereby authorizes Lender, at Borrower’s sole cost, (i) to file any financing statement, (ii) to note its lien on
any applicable certificate of title and to file such certificates with the appropriate public office, and (iii) to make any additional filings or recordings, in any public office deemed necessary by Borrower to perfect or continue its Security
Interest in the KEM Pledged Collateral or the Project Collateral. The Security Interest granted by Borrower shall at all times be valid, perfected and enforceable against Borrower in accordance with the terms of this Note and the other Loan
Documents, as security for the Secured Obligations. Borrower shall, at Borrower’s sole cost and expense, take all action that may be necessary or desirable, or that Lender may reasonably request, so as at all times to maintain the validity,
perfection, enforceability and rank of the Security Interest in the KEM Pledged Collateral or the Project Collateral in conformity with the requirements of this Note and the other Loan Documents or to enable Lender or any holder hereof to exercise
or enforce rights granted or made available hereunder. 

  
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 12. Representations and Warranties. (a) Borrower represents and warrants as
follows: 
 (i) Borrower is a limited liability company organized under the laws of the State of Delaware. 

(ii) Borrower’s chief executive office is located at c/o Eagle Crest Energy Company, 3000 Ocean Park Blvd., Suite 1020,
Santa Monica, CA 90405. 
 (iii) This Note and each of the other Loan Documents to which Borrower is a party are legal, valid
and binding obligations of such party, enforceable against such party in accordance with their terms. 
 (iv) This Note and
each of the other Loan Documents to which Borrower is a party are within the limited liability company power of Borrower and have been duly authorized by all necessary company action. 

(v) Borrower has not granted any security interest in any of the KEM Pledged Collateral or the Project Collateral except as
specifically permitted under the Loan Documents. 
 (vi) The execution, delivery and performance of this Note and each of the
other Loan Documents to which Borrower is a party, and the borrowing by Borrower hereunder, do not and will not (a) require any consent, approval, authorization of, or filings with, notice to or other act by or in respect of, any governmental
authority or any other person; (b) conflict with (i) to Borrower’s knowledge, any provision of law or any applicable regulation, order, writ, injunction or decree of any court or governmental authority, (ii) the governing
documents of Borrower, as applicable, or (iii) any material agreement, indenture, instrument or other document, or any judgment, order or decree, which is binding upon Borrower, as applicable; or (c) require, or result in, the creation or
imposition of any lien of any real property occupied by Borrower, as applicable. 
 (vii) For purposes of its financial books
and records, Borrower shall recognize and report all payments made to Lender with respect to any of the Contingent Loans as interest expense. 

(b) Lender hereby represents and warrants that for purposes of its financial books and records, Lender shall recognize and report all
payments received to from Borrower with respect to any of the Contingent Loans as interest income. 

  
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 13. Covenants. Borrower covenants and agrees that Borrower shall not incur or be
obligated on any debt either directly or indirectly, by way of guarantee, suretyship or otherwise, other than (i) exists as of the date hereof and has been disclosed in writing to Lender, (ii) unsecured trade and operational debt
(including, without limitation, equipment leases) incurred in the ordinary course of business relating to the ownership, development and operation of the Project and the routine administration of Borrower, in amounts not to exceed ten percent
(10%) of the Loan, (iii) any indebtedness the proceeds of which shall be used to pay all amounts due under the Notes in their entirety, (iv) indebtedness to Holdco, ECEC, KEM, or certain shareholders of ECEC (the “ECEC
Guarantors”) but only if (A) Holdco, ECEC, KEM and such ECEC Guarantors (the “Intercompany Lenders”) shall be parties to the then applicable Collateral Agreements and such indebtedness of Borrower to the Intercompany
Lenders shall be collaterally pledged to Lender, or (B) each applicable Intercompany Lender shall execute and deliver to Lender a subordination agreement reasonably acceptable to the Lender with respect to such indebtedness of the Borrower to
such Intercompany Lenders, and (v) indebtedness to any ECEC Guarantor pursuant to the terms of Section 8 hereof. Borrower further covenants and agrees that it shall at all times comply with any and all laws, ordinances and governmental and
regulatory rules and regulations to which Borrower, the KEM Pledged Collateral or the Project Collateral is subject. 
 14. Conditions
to Funding. The effectiveness of this Note as partial payment under the Purchase Agreement is conditioned upon all conditions to effectiveness under the Escrow Agreement being satisfied or waived by Lender. 

15. Events of Default This Note will be in default if any one or more of the following events (each an “Event of
Default” and collectively “Events of Default”) shall occur: 
 (a) Borrower’s failure to pay the principal
of or interest on this Note, or on any other obligations due and owing to Lender from Borrower under the other Loan Documents, within five (5) business days of when the same become due and payable; 

(b) any Event of Default under any Loan Document shall exist beyond all applicable notice and cure periods; 

(c) any representation or warranty made by Borrower in this Note is intentionally false or misleading in any material respect as of the date
when made; 
 (d) any creditor of Borrower other than Lender takes control or possession of any of the KEM Pledged Collateral; 

(e) Borrower shall be dissolved, either voluntarily or involuntarily and such dissolution is not reversed or cured within sixty
(60) days; 
 (f) without the prior written consent of Lender, Borrower: (i) sells, assigns, transfers, exchanges, or otherwise
disposes of any of the KEM Pledged Collateral or the Project Collateral to any person other than (A) ECEC, Holdco, or KEM, (B) a wholly-owned subsidiary or any other Affiliate that becomes a party to the appropriate Loan Documents or
(C) permitted under the Deed of Trust or any other Loan Document, (ii) creates, incurs or permits to exist any pledge, lien, mortgage, hypothecation, security interest, charge, option or any other encumbrance with respect to any of the KEM
Pledged Collateral, the Project Collateral or any interest therein, or any proceeds thereof, except for any lien or security interest granted in same (A) in favor of Lender, (B) prior to the date hereof, (C) permitted under the Deed
of Trust or any other Loan Document, (D) which is discharged or contested and bonded in a manner reasonably acceptable to Lender within sixty (60) days thereafter, (E) pursuant to a financing transaction through which this Note shall
be paid in full, or (F) as specifically approved in writing by Lender; 

  
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 (g) an Insolvency Proceeding is commenced against Borrower, and any of the following events
occur: (a) Borrower consents to the institution of such Insolvency Proceeding against it, (b) the petition commencing the Insolvency Proceeding is not timely controverted, (c) the petition commencing the Insolvency Proceeding is not
dismissed within sixty (60) calendar days of the date of the filing thereof, or (d) an interim trustee is appointed to take possession of all or any substantial portion of the properties or assets of, or to operate all or any substantial
portion of the business of, Borrower,. As used herein, the term “Insolvency Proceeding” means any proceeding commenced by or against any person under any provision of the United States Bankruptcy Code or under any other federal bankruptcy
or insolvency law or any assignment for the benefit of creditors; 
 (h) an Insolvency Proceeding is commenced by Borrower; 

(i) Borrower makes any payment on account of indebtedness that has been contractually subordinated in right of payment to the payment of this
Note, except to the extent Borrower is current on all payments required under this Note and such payment is permitted by the terms of the subordination provisions applicable to such indebtedness; 

(j) any (i) taxes, assessments or governmental charges or levies imposed upon Borrower or upon its income or profits or upon any
properties belonging to Borrower (collectively “Taxes”) becomes delinquent, unless such Taxes are otherwise being contested by Borrower in accordance with applicable law, or (ii) the failure to pay or discharge when due any
claims of materialmen, mechanics, carriers, warehousemen or landlords for labor, materials, supplies or rentals which, if unpaid, would reasonably become a lien recorded or filed against any properties of Borrower, unless otherwise being contested
by Borrower in accordance with applicable law or bonded in a manner reasonably acceptable to Lender or discharged within sixty (60) days; or 

(k) Holdco shall cease to own and control, directly or indirectly, 100% of the equity interests of Borrower, or Borrower shall cease to own
and control, directly or indirectly, 100% of the equity interests of KEM; 
 then, the principal amount evidenced by this Note, all interest thereon, and
all other amounts payable hereunder shall, become and be immediately due and payable, in immediately available funds, without presentment, demand, protest or notice of any kind, all of which are hereby expressly waived by Borrower. 

16. Certain Tax Matters. For U.S. federal income tax purposes, the parties acknowledge and agree that (i) the Contingent
Loan Amounts shall be treated as additional interest when paid and interest shall begin to accrue on each of the Contingent Loan Amounts at such time, if any, as the Borrower’s obligation to pay the applicable Contingent Loan Amount becomes
fixed pursuant to this Note; (ii) no portion of the principal amount of any Contingent Loan Amount shall be deductible by Borrower, or includible in the income of the Lender, until actually paid; and (iii) the Prepayment Premium shall not
be deductible by Borrower, or includible in the income of the Lender, until actually paid. Each of the parties covenants and agrees that it will not take any position inconsistent with or contrary to the foregoing on any tax return or before any
taxing authority. 
 17. Default Rate of Interest. After maturity, by acceleration or otherwise, this Note shall bear interest
at a rate equal to five percent (5%) per annum in excess of the applicable Interest Rate at the time that default interest becomes payable (“Default Rate”). 

18. Remedies. Should Borrower fail to make any payment hereon on the date on which it shall be delinquent, or should any Event
of Default occur and be continuing, then Lender, at its option and 

  
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without notice or demand, may declare immediately due and payable the entire unpaid balance of principal under this Note, together with all accrued interest thereon, and after the date of such
default this Note shall bear interest at the Default Rate. In such case Lender may also recover all actual, out-of-pocket costs of suit and other expenses in connection with efforts to collect any of the aforesaid amounts, together with reasonable
attorneys’ fees (including reasonable attorneys’ fees for representation in proceedings under the Bankruptcy Code), regardless of whether litigation is commenced, together with interest on any judgment obtained by Lender at the Default
Rate, including interest at the Default Rate from and after the date of any foreclosure sale until actual payment is made to Lender of the full amount due Lender. In addition to the foregoing, Lender may exercise any and all other rights available
to Lender under this Note and otherwise under applicable law. Borrower hereby waives any and all presentment, demand, notice of dishonor, protest, and all other notices and demands in connection with the enforcement of Lender’s rights under
this Note or any of the other Loan Documents, and hereby consents to, and waives notice of release, with or without consideration, of any of the KEM Pledged Collateral and the Project Collateral, notwithstanding anything contained herein to the
contrary. 
 19. Assignment. Lender may assign to one or more person or other entities all or a portion of his rights under
this Note, provided Lender gives Borrower written notice of such assignment on or before the date of such assignment. In the event of an assignment of all of its rights, Lender may transfer this Note to the assignee. Lender may, in connection with
any assignment or proposed assignment, disclose to the assignee or proposed assignee any information relating to Borrower furnished to Lender by or on behalf of Borrower. Should the Lender assign this Note or any of its rights under this Note, all
instances requiring Lender’s consent or discretion in the Loan Documents (including any decisions within Lender’s “sole discretion”) shall then be deemed to require Lender’s reasonable consent or discretion. 

20. Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of California. 

21. Jurisdiction; Waiver of Jury Trial. Where federal jurisdiction exists over any action, suit or proceeding arising out of or
in any way connected with this Note, the parties designate the United States District Court for the Central District of California, for the exclusive resolution of the dispute and submit to the jurisdiction of that court. Where federal jurisdiction
does not exist over any such action, suit or proceeding, the parties designate the state courts within San Bernardino County, California, for the exclusive resolution of the dispute and submit to the jurisdiction of any such court. Nothing in this
paragraph is intended to limit in any way a party’s right to appeal all or any part of a decision, ruling or judgment of any court. 

22. Remedies Cumulative. All rights and remedies of the parties under this Note and the other Loan Documents are cumulative and
without prejudice to any other rights or remedies under law. Nothing contained herein shall be construed as limiting the parties’ rights to redress for fraud. 

23. No Waiver by Lender. No Event of Default shall be waived by Lender except in writing. No failure or delay on the part of
Lender in exercising any right, power or remedy hereunder shall operate as a waiver of the exercise of the same or any other right at any other time; nor shall any single or partial exercise of any such right, power or remedy preclude any other or
further exercise thereof or the exercise of any other right, power or remedy hereunder. 
 24. Waivers of Borrower. 

(a) Borrower acknowledges that it has relied on the advice of its own counsel in making this Note and has reviewed the waivers of rights
contained herein with its counsel. 

  
 10 

 (b) Borrower hereby fully and completely waives, releases and relinquishes any statute of
limitations affecting any of Borrower’s liability hereunder or the enforcement thereof, including without limitation, any right, defense or benefit under Cal. Code of Civ. Proc. Section 337. 

(c) Borrower expressly waives any defense or benefits arising out of any federal or state bankruptcy, insolvency, or debtor relief laws,
including without limitation, under Section 364 or 1111(b)(2) of the United States Bankruptcy Code. 
 25. Notices. Any
notice, request, demand, consent, confirmation or other communication under this Note shall be in writing and delivered in person or sent by telecopy, recognized overnight courier or registered or certified mail, return receipt requested and postage
prepaid, to the addresses set forth below. Such notices shall be deemed effective on the day on which delivered or sent if delivered in person or sent by telecopy (with answerback confirmation received), on the first (1st) business day after
the day on which sent, if sent by recognized overnight courier or on the fifth (5th) business day after the day on which mailed, if sent by registered or certified mail. 
  

			
	TO LENDER:		WITH A COPY TO:
		
	CIL&D, LLC		CIL&D, LLC
	337 N. Vineyard Ave., 4th Floor		337 N. Vineyard, 4th Floor
	Ontario, CA 91764		Ontario, CA 91764
	Attn.: Richard E. Stoddard		Attn.: Terry Cook
	Telephone: 909.483.8501		Telephone: 909.483.8511
	Facsimile: 909.944.6605		Facsimile: 909.944.6605
		
	TO BORROWER:		WITH A COPY TO
		
	EAGLE MOUNTAIN ACQUISITION LLC		LATHAM & WATKINS LLP
	c/o Eagle Crest Energy Company		355 S. Grand Ave
	3000 Ocean Park Blvd, Suite 1020		Los Angeles, CA 90071-1560
	Santa Monica, CA 90405		Attn: Kevin Ehrhart
	Attn.: J. Douglas Divine		Telephone: 213.485.1234
	Telephone: 310.450.9090		Facsimile: 213.891.8763
	Facsimile: 310.450.9494		
		
			WITH A COPY TO
		
			WEXFORD CAPITAL LP
			411 West Putnam Ave.
			Greenwich, CT 06830
			Attention: Antony Lundy
			Email: tlundy@wexford.com
			Facsimile: 203.891.8763
			Attention: Arthur Amron
			Email: aamron@wexford.com
			Facsimile: 203.862.7032

 26. Headings; Interpretation. The article and section headings contained in this Note are
inserted for convenience only and shall not affect in any way the meaning or interpretation of this Note. Both parties have participated substantially in the negotiation and drafting of this Note and agree that no ambiguity herein should be
construed against the draftsman. 

  
 11 

 27. Severability. If any provision of this Note shall be determined to be invalid,
illegal or incapable of being enforced, all other conditions and provisions of this Note shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby are not affected in any
manner materially adverse to any party. 
 28. Entire Agreement. This Note and the other Loan Documents set forth the entire
agreement and understanding of the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements and understandings relative to such subject matter. 

  
 12 

 IN WITNESS WHEREOF, Borrower has executed and delivered this Note the day and year first above
written. 
  

					
	BORROWER:
	
	 EAGLE MOUNTAIN ACQUISITION LLC,

a Delaware limited liability company

		
	By:		 /s/ Doug Divine

			Name:		 Doug Divine

			Title:		Authorized Person

 Signature page to Junior Secured NoteEX-10.1.3

 EXHIBIT 10.1.3

 GUARANTY AGREEMENT 

(KEM Guarantor) 
 THIS
GUARANTY AGREEMENT (this “Guaranty”), dated as of June 29, 2015, is made by KAISER EAGLE MOUNTAIN, LLC, a Delaware limited liability company (“Guarantor”), for the benefit of CIL&D, LLC, a
Delaware limited liability company (together with its successors and assigns, “Lender”). 
 RECITALS 

WHEREAS, Eagle Mountain Acquisition LLC, a Delaware limited liability company (“Borrower”), is a party to that certain
Purchase and Sale Agreement dated as of June 25, 2015 (the “Purchase Agreement”) among Borrower, Lender, Guarantor, which is a wholly-owned subsidiary of Borrower, Eagle Mountain LLC, a Delaware limited liability company
(“Holdco”), and Eagle Crest Energy Company, a California corporation (“ECEC”), pursuant to which, among other things, Lender agreed to sell to Borrower 100% of the ownership interest in Guarantor; 

WHEREAS, as partial payment of the purchase price to Lender under the Purchase Agreement, Borrower executed and delivered to Lender
(i) that certain promissory note in the initial principal amount of $4,250,000 (the “Senior Note”) and (ii) that certain promissory note in the initial principal amount of $19,000,000 (the “Junior Note”
and together with, the Senior Note, the “Notes”), in each case of even date herewith in favor of the Lender. Collectively, the payment obligations under the Notes are sometimes referred to herein as the “Loan”.
Capitalized terms used herein without definition shall have the meanings ascribed to such terms in the Notes; 
 WHEREAS,
concurrently herewith, Borrower and Lender shall enter into that certain Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing of even date herewith, in favor of the Lender, with respect to certain real property at
Eagle Mountain, Riverside County, California (the “Deed of Trust”); and 
 WHEREAS, as a subsidiary of Borrower,
Guarantor will directly or indirectly benefit from Lender making the Loan to Borrower. 
 NOW, THEREFORE, as an inducement to Lender
to enter into the Purchase Agreement and to accept the Notes, and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, Guarantor hereby agrees as follows: 

ARTICLE I - NATURE AND SCOPE OF GUARANTY 

Section 1.1 Guaranty of Obligations. Guarantor hereby irrevocably and unconditionally guarantees to Lender the payment and
performance of the Guaranteed Obligations as and when the same shall be due and payable. Guarantor hereby irrevocably and unconditionally covenants and agrees that it is liable for the Guaranteed Obligations as a primary obligor. 

Section 1.2 Definition of Guaranteed Obligations. As used herein, the term “Guaranteed Obligations” means the
full and timely payment and performance of all of the obligations and liabilities of Borrower for which Borrower is, or shall become, liable pursuant to the Notes, including, without limitation, the payment and performance of all terms, covenants,
conditions, indemnities and agreements of Borrower set forth therein. 

  
 1 

 Section 1.3 Nature of Guaranty. This Guaranty is an irrevocable, absolute, continuing
guaranty of payment and performance and not a guaranty of collection. This Guaranty shall continue to be effective with respect to any Guaranteed Obligations so long as the Notes are outstanding or unless Guarantor is otherwise released from its
obligations under this Guaranty pursuant to the Loan Documents. Subject to the terms of Section 1.10 below, this Guaranty shall automatically terminate upon the payment in full of the Notes, and Guarantor shall no longer be responsible for the
Guaranteed Obligations. 
 Section 1.4 Payment and Performance by Guarantor. Guarantor shall, immediately upon demand by Lender,
pay the amount due on the Guaranteed Obligations to Lender at Lender’s address as set forth herein or as otherwise instructed by Lender. Such demand(s) may be made at any time coincident with or after the time for payment of all or any part of
the Guaranteed Obligations with respect to the same or different Guaranteed Obligations. 
 Section 1.5 No Duty to Pursue
Others. Lender shall not be required (and Guarantor hereby waives any rights to require Lender), in order to enforce the obligations of Guarantor hereunder, first (i) to institute suit or otherwise exhaust its remedies against Borrower or
any other persons liable on the Loan or the Guaranteed Obligations, or against any other person, (ii) to enforce Lender’s rights against any collateral given to secure the Loan, (iii) to enforce Lender’s rights against any other
guarantors of the Guaranteed Obligations, (iv) to join Borrower or any other persons liable on the Guaranteed Obligations in any action seeking to enforce this Guaranty, (v) to exhaust any available remedies against any collateral given to
secure the Loan, or (vi) to resort to any other means of obtaining payment or performance of the Guaranteed Obligations. 

Section 1.6 Waivers. 

(a) Guarantor agrees to the provisions of the Loan Documents and hereby waives notice of (i) acceptance of this Guaranty, (ii) any
amendment, modification, replacement or extension of any Loan Document, (iii) the execution and delivery by Borrower and/or Lender of any other agreements, promissory notes or other documents arising under the Loan Documents, (iv) the
occurrence of any breach by Borrower or any Event of Default, (v) Lender’s transfer, participation, componentization or other disposition of the Guaranteed Obligations, or any part thereof, (vi) sale or foreclosure (or posting or
advertising therefor) of any collateral for the Guaranteed Obligations, (vii) nonpayment or nonperformance, protest, notice of protest, notice of dishonor, proof of non-payment or default by Borrower, (viii) intent to accelerate or
acceleration, or (ix) any other action taken or omitted by Lender and any and all demands and notices of every kind in connection with this Guaranty, the Loan Documents, and any documents or agreements evidencing, securing or relating to any of
the Guaranteed Obligations and any other obligations hereby guaranteed. Guarantor also waives notice of or proof of reliance by Lender upon this Guaranty. 

(b) Guarantor specifically agrees that Guarantor shall not be released from liability hereunder by any action taken by Lender including,
without limitation, a nonjudicial sale under the Loan Documents, that would afford Borrower a defense based on California’s anti–deficiency laws, in general, and Cal. Code of Civ. Proc. Section 580d, in specific. Without limiting the
foregoing, Guarantor expressly understands, acknowledges and agrees as follows: (X) In the event of a nonjudicial foreclosure (through the exercise of the power of sale under the Loan Documents): (i) Borrower would not be liable for any
deficiency on the Notes under Cal. Code of Civ. Proc. Section 580d, (ii) Guarantor’s subrogation rights against Borrower would thereby be destroyed, Guarantor would be solely liable for any deficiency to Lender (without recourse
against Borrower), and (iii) Guarantor would thereby be deprived of the anti–deficiency protections of said Section 580d; (Y) Were it not for Guarantor’s knowing and intentional waivers contained herein, the destruction of
Guarantor’s subrogation rights and anti–deficiency protections would afford Guarantor a defense to an action against Guarantor hereunder; and (Z) 

  
 2 

 
Notwithstanding the foregoing, Guarantor expressly waives any such defense to any action against Guarantor hereunder following a nonjudicial foreclosure sale or in any other circumstance under
which Guarantor’s subrogation rights against Borrower have been destroyed. 
 (c) Guarantor hereby fully and completely waives,
releases and relinquishes any statute of limitations affecting any of Guarantor’s liability hereunder or the enforcement thereof, including without limitation, any right, defense or benefit under Cal. Code of Civ. Proc. Section 337. 

(d) Guarantor expressly waives any defense or benefits arising out of any federal or state bankruptcy, insolvency, or debtor relief laws,
including without limitation, under Section 364 or 1111(b)(2) of the United States Bankruptcy Code. 
 (e) Guarantor expressly waives
any and all benefits, rights and/or defenses based on principals of suretyship and/or guaranty, including without limitation, those benefits, rights and/or defenses which might otherwise be available to Guarantor under Cal. Civ. Code Sections 2787
to 2855, inclusive, and 2899, 2953 and 3433, and Guarantor agrees that its obligations shall not be affected by any circumstances which constitute a legal or equitable discharge of a guarantor or surety. 

(f) Guarantor expressly waives any and all benefits, rights and/or defenses which might otherwise be available to Guarantor under Cal. Code of
Civ. Proc. Sections 580a, 580b, 580d and 726. In specific, but not by way of limitation, Guarantor expressly waives any and all fair value rights under Cal. Code of Civ. Proc. Section 580a as set forth in Bank of Southern California v.
Dombrow, 39 Cal.App.4th 1457, 46 Cal.Rptr.2d 656 (4th Dist., Div. 1, 1995) (decertified). 
 (g) Guarantor acknowledges that Guarantor
has been made aware of the provisions of Cal. Civ. Code Section 2856, has read and understands the provisions of that statute, has been advised by its counsel as to the scope, purpose and effect of that statute, and based thereon, and without
limiting the foregoing waivers, Guarantor agrees to waive all suretyship rights and defenses described in Cal. Civ. Code Sections 2856(a) through (d). Without limiting any other waivers herein, Guarantor hereby gives the following waiver pursuant to
Section 2856(d) of the Cal. Civ. Code: 
 “Guarantor waives all rights and defenses arising out of an election of remedies by the
creditor, even though that election or remedies, such as a nonjudicial foreclosure with respect to security for a guaranteed obligation, has destroyed the guarantor’s rights of subrogation and reimbursement against the principal by the
operation of Section 580d of the Code of Civil Procedure or otherwise.” 
 (h) As provided in Cal. Civ. Code Section 2856(c),
Guarantor makes the following waivers of specific rights afforded under California law: 
 “The guarantor waives all rights and defenses
that the guarantor may have because the debtor’s debt is secured by real property. This means, among other things: 

(1) The creditor may collect from the guarantor without first foreclosing on any real or personal property collateral pledged
by the debtor. 

  
 3 

 (2) If the creditor forecloses on any real property collateral pledged by the
debtor: 
 (A) The amount of the debt may be reduced only by the price for which that collateral is sold at the foreclosure
sale, even if the collateral is worth more than the sale price. 
 (B) The creditor may collect from the guarantor even if
the creditor, by foreclosing on the real property collateral, has destroyed any right the guarantor may have to collect from the debtor. 

This is an unconditional and irrevocable waiver of any rights and defenses the guarantor may have because the debtor’s debt is secured by
real property. These rights and defenses include, but are not limited to, any rights or defenses based on Sections 580a, 580b, 580d, or 726 of the Code of Civil Procedure.” 

(i) Guarantor acknowledges that it has relied on the advice of its own counsel in making this Guaranty and has reviewed the waivers of rights
contained herein with its counsel. Guarantor further acknowledges that it understands and accepts as a necessary part of this Guaranty the waivers of rights set forth above, after reviewing the extent and effect of the waivers in this Guaranty with
its counsel. 
 Section 1.7 Payment of Expenses. If Guarantor fails to timely perform any provisions of this Guaranty, Guarantor
shall, immediately upon demand by Lender, pay Lender any and all reasonable, out-of-pocket costs and expenses (including court costs and reasonable attorneys’ fees and expenses) incurred by Lender in the enforcement hereof or the preservation
of Lender’s rights hereunder. The covenant contained in this Section 1.7 shall survive the payment and performance of the Guaranteed Obligations. 

Section 1.8 Effect of Bankruptcy. If pursuant to any Insolvency Action (defined below) concerning Borrower or Guarantor, Lender
must rescind, restore or return any payment or any part thereof received by Lender in satisfaction (in full or in part) of the Guaranteed Obligations, as set forth herein, any prior release or discharge from the terms of this Guaranty given to
Guarantor by Lender shall be without effect, and this Guaranty shall remain in full force and effect. As used herein, “Insolvency Action” shall mean if Borrower or Guarantor (i) makes an assignment for the benefit of creditors,
(ii) has a receiver, liquidator or trustee appointed for it, (iii) is adjudicated as bankrupt or insolvent, or if any petition for bankruptcy, reorganization or arrangement pursuant to federal bankruptcy law or any similar federal or state
law shall be filed by or against, consented to, solicited by, or acquiesced in by it, or (iv) has any proceeding for its insolvency, dissolution or liquidation instituted against. 

Section 1.9 Waiver of Subrogation, Reimbursement and Contribution. Notwithstanding anything to the contrary contained in this
Guaranty, Guarantor hereby unconditionally and irrevocably waives, releases and abrogates any and all rights it may now or hereafter have under any agreement, at law or in equity (including, without limitation, any law subrogating Guarantor to the
rights of Lender), to assert any claim against or seek contribution, indemnification or any other form of reimbursement from Borrower or any other party liable for payment or performance of any or all of the Guaranteed Obligations for any payment
made by Guarantor under or in connection with this Guaranty or otherwise until the Loan is paid in full. 
 Section 1.10
Reinstatement of Guaranty in Certain Circumstances. Guarantor agrees that, if any or all of a payment made by or on behalf of Borrower of any Guaranteed Obligation is returned by any person at any time for any reason during the period
one (1) year from the date of such payment, including pursuant to any settlement, order (whether or not final) of a court of competent jurisdiction, applicable law or because of acts or omissions of Borrower (other than by reason of the full
and indefeasible payment of the Guaranteed Obligations), the Guaranteed Obligations will not be deemed to 

  
 4 

 
have been satisfied to the extent of the returned payment and the obligations of Guarantor herunder will be deemed to be reinstated automatically and to continue in full force and effect. If
Borrower ceases to be liable to Lender for any of the Borrower’s obligations under the Notes (other than by reason of the full and indefeasible payment of the Borrower’s obligations under the Notes, cancellation or termination of the
Borrower’s obligations under the Notes), then any prior release or discharge from this Guaranty will be without effect and this Guaranty and the obligations of Guarantor hereunder will be automatically reinstated and continue in full force and
effect. 
 Section 1.11 Borrower. The term “Borrower” as used herein shall include any new or successor
corporation, association, partnership (general or limited), limited liability company, joint venture, trust or other individual or organization formed as a result of any merger, reorganization, sale, transfer, assignment, devise, gift or bequest of
or by Borrower or any interest in Borrower or the Loan. 
 ARTICLE II - EVENTS AND CIRCUMSTANCES NOT 

REDUCING OR DISCHARGING GUARANTOR’S OBLIGATIONS 

Section 2.1 Events and Circumstances Not Reducing or Discharging Guarantor’s Obligations. Guarantor hereby consents and
agrees to each of the following and agrees that Guarantor’s obligations hereunder shall not be released, diminished, impaired, reduced or adversely affected in any way by any of the following, and waives any common law, equitable, statutory or
other rights (including, without limitation, rights to notice) which Guarantor might have in connection with any of the following: 
 (a)
Modifications, Releases, Etc. Any renewal, extension, increase, reduction, modification, alteration or rearrangement of all or any part of the Guaranteed Obligations, any Loan Document, or any other document or agreement between Borrower and
Lender or any other parties pertaining to the Guaranteed Obligations. 
 (b) Condition of Borrower or Guarantor. The existence of an
Insolvency Action concerning Borrower, Guarantor or any other party liable for the payment or performance of all or part of the Guaranteed Obligations, or any dissolution of Borrower or Guarantor or any sale, lease or transfer of any or all of the
assets of Borrower or Guarantor, or any changes in the shareholders, partners or members of Borrower or Guarantor, or any merger, consolidation, or reorganization of Borrower or Guarantor into or with any other person. 

(c) Invalidity, Unenforceability, Offset, Etc. The invalidity, illegality or unenforceability of all or any part of the Guaranteed
Obligations or any Loan Document, or of any other document or agreement executed in connection with the Guaranteed Obligations for any reason whatsoever, including, without limitation, the fact that (i) the Guaranteed Obligations or any part
thereof exceeds the amount permitted by law, (ii) the act of creating the Guaranteed Obligations or any part thereof is ultra vires, (iii) the officers or representatives executing the Loan Documents or otherwise creating the
Guaranteed Obligations acted in excess of their authority, (iv) the Guaranteed Obligations violate applicable usury laws, (v) Borrower has valid defenses (except the defense of payment or performance of the applicable Guaranteed
Obligations), claims or offsets (whether at law, in equity or by agreement) which render the Guaranteed Obligations wholly or partially uncollectible from Borrower, and whether such defense, claim, or right of offset arises in connection with the
Guaranteed Obligations, the transactions creating same, or otherwise (including any defense based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in other respects more burdensome
than that of the principal and any defense of the statute of limitations in any action hereunder or in any action for the collection or performance of any obligations hereby guaranteed), (vi) the creation, performance or repayment of the
Guaranteed Obligations (or the execution, delivery and performance of any document or instrument representing part of the Guaranteed Obligations, or executed in connection 

  
 5 

 
with the Guaranteed Obligations, or given to secure the repayment or performance of the Guaranteed Obligations) is illegal, uncollectible or unenforceable, (vii) any Loan Document has been
forged, or is not genuine or authentic, it being agreed that Guarantor shall remain liable hereunder regardless of whether Borrower or any other person be found not liable on the Guaranteed Obligations or any part thereof for any reason, or
(viii) any collateral, security, security interest or lien contemplated or intended to be given, created or granted as security for the repayment or performance of the Guaranteed Obligations, or any part thereof, shall not be properly perfected
or created, or shall prove to be unenforceable or subordinate to any other security interest or lien, it being acknowledged and agreed by Guarantor that Guarantor is not entering into this Guaranty in reliance on, or in contemplation of the benefits
of, the validity, enforceability, collectability or value of any of the collateral for the Guaranteed Obligations. 
 (d) Care and
Diligence. The failure of Lender or any other party to exercise diligence or reasonable care (other than willful malfeasance) in the preservation, protection, enforcement, sale or other handling or treatment of all or any part of any collateral,
property or security, including, without limitation, any neglect, delay, omission, failure or refusal of Lender (i) to take or prosecute any action for the collection of any of the Guaranteed Obligations, (ii) to foreclose, or initiate any
action to foreclose, or, once commenced, prosecute to completion any action to foreclose upon any security therefor, or (iii) to take or prosecute any action in connection with any instrument or agreement evidencing or securing all or any part
of the Guaranteed Obligations. 
 (e) Preference. Any payment by Borrower to Lender is held to constitute a preference under
bankruptcy laws or for any reason Lender is required to refund or remit any such payment or amount to Borrower or any other person. 
 (f)
Other Actions Taken or Not Taken. Any other action taken or not taken with respect to the Loan Documents, the Guaranteed Obligations, or the security and collateral therefor, whether or not such action or inaction prejudices Guarantor or
increases the likelihood that Guarantor will be required to pay the Guaranteed Obligations pursuant to the terms hereof. 
 ARTICLE III -
REPRESENTATIONS AND WARRANTIES 
 Section 3.1 Representations and Warranties. To induce Lender to enter into the Notes and the
Loan Documents and to make the Loan, Guarantor represents and warrants to Lender that: (a) Guarantor will receive a direct or indirect benefit from the making of the Loan to Borrower; (b) Guarantor is familiar with, and has independently
reviewed books and records regarding, the financial condition of Borrower and any and all collateral intended to be given as security for the payment of the Loan; (c) after giving effect to this Guaranty, Guarantor is and will remain solvent;
(d) the execution, delivery and performance by Guarantor of this Guaranty and the consummation of the transactions contemplated hereunder do not and will not contravene or conflict with any law, statute or regulation to which Guarantor is
subject, or constitute a default (or which with notice, or lapse of time, or both, would constitute a default) under, or result in the breach of, any indenture, mortgage, charge, lien, or any contract or agreement to which Guarantor is a party or
which may be applicable to Guarantor; (e) no approval, authorization, order, license or consent of, or registration or filing with, any governmental authority or other person, and no approval, authorization or consent of any other person is
required in connection with this Agreement; (f) there are no actions, suits or proceedings at law or in equity by or before any governmental authority or other agency now pending and served or, to Guarantor’s knowledge, threatened,
involving or concerning Guarantor, (g) this Guaranty is a legal, valid and binding obligation of Guarantor, and is enforceable in accordance with its terms, except as may be limited by principles of equity, bankruptcy, insolvency or other laws
of general application relating to the enforcement of creditors’ rights, and (h) the individual executing this Guaranty has been duly authorized by the all necessary corporate, company, trust or individual actions and consents, as
applicable. 

  
 6 

 Section 3.2 Additional Provisions. Without limiting anything set forth in
Section 3.1 above, Guarantor hereby represents, warrants, covenants and agrees as follows: 
 (a) Guarantor (i) is a
Delaware limited liability company in good standing, whose principal place of business is located at 3000 Ocean Park Boulevard, Suite 1020, Santa Monica, CA 90405 and (ii) has the requisite power to execute and deliver, and perform its
obligations under, this Guaranty and any other Loan Document to which it is a party. 
 (b) The execution and delivery by Guarantor of this
Guaranty and any other Loan Document to which it is a party, and Guarantor’s performance of its obligations thereunder (i) will not violate any provision of any applicable legal requirements, and (ii) will not be in conflict with,
result in a breach of, or constitute (with due notice or lapse of time or both) a default under, or result in the creation or imposition of any lien of any nature whatsoever upon any of the property or assets of Guarantor pursuant to, any indenture
or agreement or instrument. This Guaranty and the other Loan Documents to which Guarantor is a party have been duly executed and delivered by Guarantor. 

ARTICLE IV - SUBORDINATION OF CERTAIN INDEBTEDNESS 

Section 4.1 Subordination of All Guarantor Claims. As used herein, the term “Guarantor Claims” shall mean any and
all debts and liabilities of Borrower owed to Guarantor, whether now existing or hereafter incurred, including, without limitation, (i) all rights and claims of Guarantor against Borrower (arising as a result of subrogation or otherwise) as a
result of Guarantor’s payment or performance of all or any portion of the Guaranteed Obligations, or (ii) any claim arising out of or related to the Purchase Agreement. During the continuance of an Event of Default under the Notes, without
limiting the provisions of Section 1.9, Guarantor hereby subordinates its rights to receive any payment from Borrower on account of any Guarantor Claims to the full payment of the Loan payable to Lender. Following the occurrence of an
Event of Default under the Notes, Guarantor shall not demand, receive or collect, directly or indirectly, from Borrower or any other party, and shall not claim any offset or other reduction of Guarantor’s obligations hereunder because of, any
amount pursuant to or in satisfaction of the Guarantor Claims until the Loan is paid in full. 
 Section 4.2 Claims in
Bankruptcy. In the event of an Insolvency Action involving Guarantor as debtor, Lender shall have the right to prove its claim in any such proceeding so as to establish its rights hereunder and receive directly from the receiver, trustee or
other court custodian dividends and payments which would otherwise be payable pursuant to or in satisfaction of Guarantor Claims. Guarantor hereby assigns any and all such dividends and payments to Lender. 

Section 4.3 Payments Held in Trust. If, notwithstanding anything to the contrary contained in this Guaranty, Guarantor should
receive any funds, payment, claim or distribution which is prohibited hereunder, Guarantor covenants and agrees to hold in trust for Lender an amount equal to the amount of all funds, payments, claims or distributions so received, and Guarantor
acknowledges and agrees that it shall have absolutely no dominion over the amount of such funds, payments, claims or distributions so received, except to pay them promptly to Lender, and Guarantor hereby covenants and agrees promptly to pay the same
to Lender. 
 Section 4.4 Liens Subordinate; Standstill. Guarantor acknowledges and agrees that until the Loans are paid in full
or the Guarantor has otherwise been released from the Guaranteed Obligations pursuant to the terms of the Loan Documents, any liens, security interests, judgment liens, charges or other encumbrances upon Borrower’s assets securing payment of
the Guarantor Claims shall be and remain inferior and subordinate to any liens, security interests, judgment liens, charges or other encumbrances upon Borrower’s assets securing payment or performance of the Guaranteed Obligations,

  
 7 

 
regardless of whether such encumbrances in favor of Guarantor or Lender presently exist or are hereafter created or attach. Until the Loan is paid in full, Guarantor shall not (i) exercise
or enforce any creditor’s right it may have against Borrower, or (ii) foreclose, repossess, sequester or otherwise take steps or institute any action or proceedings (judicial or otherwise, including, without limitation, the commencement
of, or joinder in, any liquidation, bankruptcy, rearrangement, debtor’s relief or insolvency proceeding) to enforce any liens, mortgages, deeds of trust, security interests, collateral rights, judgments or other encumbrances on assets of
Borrower held by Guarantor. 
 ARTICLE V - MISCELLANEOUS 

Section 5.1 Waiver. No failure to exercise, and no delay in exercising, on the part of Lender, any right hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right. The rights of Lender hereunder shall be in addition to all other rights provided by law. No
notice or demand given in any case shall constitute a waiver of the right to take other action in the same, similar or other instances without such notice or demand. 

Section 5.2 Notices. All notices, consents, approvals, demands and requests required or permitted hereunder shall be given in
writing and shall be effective for all purposes if hand delivered or sent by (a) hand delivery, with proof of attempted delivery, (b) certified or registered United States mail, postage prepaid, (c) expedited prepaid delivery service,
either commercial or United States Postal Service, with proof of attempted delivery, or (d) by telecopier (with answerback acknowledged) provided that such telecopied notice must also be delivered by one of the means set forth in (a),
(b) or (c) above, addressed to the parties as follows: 
  

			
	If to Lender:		CIL&D, LLC
			337 N. Vineyard Ave., 4th Floor
			Ontario, CA 91764
			Attention: Richard E. Stoddard
			Facsimile No.: 909.944.6605
		
	with a copy to:		CIL&D, LLC
			337 N. Vineyard Ave., 4th Floor
			Ontario, CA 91764
			Attention: Terry Cook
			Facsimile No.: 909.944.6605
		
	and with a copy to:		Bryan Cave LLP
			88 Wood Street
			London EC2V 7AJ
			England
			Attention: Carol Osborne
			Facsimile No.: 44 20 3207 1881
		
	If to Guarantor:		Kaiser Eagle Mountain, LLC
			c/o Eagle Crest Energy Company
			3000 Ocean Park Blvd, Suite 1020
			Santa Monica, CA 90405
			Attention: J. Douglas Divine
			Facsimile: 310.450.9494

  
 8 

			
	with a copy to:		Latham & Watkins LLP
			355 S. Grand Ave
			Los Angeles, CA 90071-1560
			Attention: Kevin Ehrhart
			Facsimile: 213.891.8763
		
	and with a copy to:		Wexford Capital LP
			411 West Putnam Ave.
			Grenwich, CT 06830
			Attention: Antony Lundy
			Email: tlundy@wexford.com
			Attention: Arthur Amron
			Email: aamron@wexford.com
			Facsimile: 203.863.7312

 A party receiving a notice which does not comply with the technical requirements for notice under this Section 5.2
may elect to waive any deficiencies and treat the notice as having been properly given. A notice shall be deemed to have been given: (a) in the case of hand delivery, at the time of delivery; (b) in the case of registered or certified
mail, when delivered or the first attempted delivery on a business day; (c) in the case of expedited prepaid delivery upon the first attempted delivery on a business day; or (d) in the case of telecopier, upon receipt of answerback
confirmation, provided that such telecopied notice was also delivered as required in this Section 5.2. 
 Section 5.3
Governing Law; Submission to Jurisdiction. 
 (a) This Guaranty shall be interpreted and enforced according to the laws of the State
of California (without giving effect to rules regarding conflict of laws). 
 (b) Guarantor hereby consents and submits to the exclusive
jurisdiction and venue of any state or federal court sitting in the State of California with respect to any legal action or proceeding arising with respect to this Guaranty and waives all objections which it may have to such jurisdiction and venue.

 Section 5.4 Severability. Wherever possible, each provision of this Guaranty shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Guaranty shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Guaranty. 
 Section 5.5 Modification; Waiver in Writing. No
modification, amendment, extension, discharge, termination (except as provided in Section 1.3, above) or waiver of any provision of this Guaranty, nor consent to any departure by Guarantor therefrom, shall in any event be effective
unless the same shall (i) be in a writing signed by the party against whom enforcement is sought, and (ii) specifically refer to this Agreement. Any such modification, amendment, extension, discharge, termination or waiver shall be
effective only in the specific instance, and for the purpose, for which given. Except as otherwise expressly provided herein, no notice to, or demand on Guarantor, shall entitle Guarantor to any other or future notice or demand in the same, similar
or other circumstances. 
 Section 5.6 Number and Gender. All references to sections and exhibits are to sections and exhibits
in or to this Guaranty unless otherwise specified. Unless otherwise specified, the words “hereof,” “herein” and “hereunder” and words of similar import when used in this Guaranty shall refer to this

  
 9 

 
Guaranty as a whole and not to any particular provision, article, section or other subdivision of this Guaranty. Unless otherwise specified, all meanings attributed to defined terms herein shall
be equally applicable to both the singular and plural forms of the terms so defined. Whenever the context may require, any pronouns used herein shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and
pronouns shall include the plural and vice versa. 
 Section 5.7 Headings, Etc. The headings and captions of various paragraphs
of this Guaranty are for the convenience of reference only and are not to be construed as defining or limiting, in any way, the scope or intent of the provisions hereof. 

Section 5.8 Counterparts. This Guaranty may be executed in several counterparts, each of which counterparts shall be deemed an
original instrument and all of which together shall constitute a single Guaranty. The failure of any party hereto to execute this Guaranty, or any counterpart hereof, shall not relieve the other signatories from their obligations hereunder. 

Section 5.9 Rights and Remedies. If Guarantor becomes liable for any indebtedness owing by Borrower to Lender, by endorsement or
otherwise, other than pursuant to this Guaranty, such liability shall not be in any manner impaired or affected hereby, and the rights of Lender hereunder shall be cumulative of any and all other rights that Lender may ever have against Guarantor.
The exercise by Lender of any right or remedy hereunder or under any other instrument, or at law or in equity, shall not preclude the concurrent or subsequent exercise of any other right or remedy. No failure or delay on the part of Lender in
exercising any right, power or remedy hereunder shall operate as a waiver of the exercise of the same or any other right at any other time; nor shall any single or partial exercise of any such right, power or remedy preclude any other or further
exercise thereof or the exercise of any other right, power or remedy hereunder. 
 Section 5.10 Entire Agreement. This Guaranty
and the other Loan Documents embody the final, entire agreement of Guarantor and Lender with respect to the Guarantor’s guaranty of the Guaranteed Obligations and supersedes any and all prior commitments, agreements, representations, and
understandings, whether written or oral, relating to the subject matter hereof. This Guaranty is intended by Guarantor and Lender as a final and complete expression of the terms of the Guaranty, and no course of dealing between Guarantor and Lender,
no course of performance, no trade practices, and no evidence of prior, contemporaneous or subsequent oral agreements or discussions or other extrinsic evidence of any nature shall be used to contradict, vary, supplement or modify any term of this
Guaranty. There are no oral agreements between Guarantor and Lender. 
 Section 5.11 Recitals. Each of the Recitals set forth at
the beginning of this Guaranty are true and correct and are incorporated herein by reference. 
 [Signatures begin on the following page]

  
 10 

 IN WITNESS WHEREOF, the undersigned has executed this Guaranty all as of the day and year first
above written. 
  

									
	WITNESS				GUARANTOR:
			
	 /s/
				KAISER EAGLE MOUNTAIN, LLC,
					a Delaware limited liability company
				
					By:		 /s/ Steve Lowe

							Name:		 Steve Lowe

							Title:		Authorized Person

 Kaiser Eagle Mountain, LLC Guaranty

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