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Exhibit 10.1

 

LIMITED GUARANTY

 

This
LIMITED GUARANTY (this “Limited Guaranty”), dated
as of July 10, 2017, is made by AEMETIS, INC. (the
“Parent
Guarantor”) and Aemetis Advanced Products Keyes, Inc.
(“AAPK”
and collectively with the Parent Guarantor, the “Guarantors”), in favor of
THIRD EYE CAPITAL CORPORATION, as administrative agent and
collateral agent for and on behalf of the Noteholders (as defined
in the Note Purchase Agreement referred to below) (in such
aforesaid capacities, or any successor or assign in such
capacities, the “Agent”).

 

PRELIMINARY STATEMENTS:

 

(1)           Goodland
Advanced Fuels, Inc., a Delaware corporation (the
“Borrower”), the
Noteholders from time to time party thereto, and the Agent have
entered into that certain Note Purchase Agreement of even date
herewith (as amended, varied, supplemented, restated, renewed or
replaced at any time and from time to time, the “Note Purchase
Agreement”).

 

(2)           Pursuant
to the Note Purchase Agreement, the Noteholders have agreed to make
Loans from time to time to the Borrower, upon the terms and subject
to the conditions set forth therein.

 

(3)           The
Borrower and each Guarantor have entered into separate
Intercompany Revolving Promissory Notes of even date herewith (as
amended, varied, supplemented, restated, renewed or replaced at any
time and from time to time, the “Intercompany Revolving
Notes”) pursuant to which the Borrower may, from time
to time, lend a portion of the proceeds of Revolving Advances
incurred under the Note Purchase Agreement to each
Guarantor.

 

(4)           This
Limited Guaranty is secured by a first priority lien, subject to
liens existing in connection with the Existing Agreement, pursuant
to separate General Security Agreements entered into by each
Guarantor.

 

(5)           Prior
to the Aemetis Option Exercise Date, this Limited Guaranty
guarantees the Guaranteed Obligations in an amount not to exceed
the Guaranty Limit. On and after the Aemetis Option Exercise Date,
this Limited Guaranty shall guarantee the Guaranteed Obligations
without giving effect to the Guaranty Limit.

 

(6)           It
is a condition precedent to the obligation of the Noteholders to
make Loans under the Note Purchase Agreement that the Guarantors
shall have executed and delivered this Limited Guaranty to the
Agent, for the benefit of the Agent, the Noteholders from time to
time party to the Note Purchase Agreement and any other holder of
any Note Indebtedness (collectively with the Agent and the
Noteholders, the “Secured
Parties”).

 

(7)           The
Guarantors will derive substantial direct and indirect benefit from
the transactions contemplated by Note Purchase
Agreement.

 

 

 

 

 

1.            

DEFINITIONS. Capitalized terms
used but not otherwise defined herein shall have the meanings
assigned to them in the Note Purchase Agreement. In addition, when
used herein, “Aemetis Option Exercise
Date” shall mean the date upon which the Aemetis
Option is exercised in accordance with its terms;
“Existing
Agreement” shall mean that certain Amended and
Restated Note Purchase Agreement dated as of July 6, 2012, as
amended, restated, supplemented, revised or replaced from time to
time, among the borrowers party thereto, Parent Guarantor, the
noteholders party thereto and Third Eye Capital Corporation, an
Ontario corporation, in its capacity as agent for and on behalf of
the noteholders party thereto and each document or agreement
entered into in connection therewith; and “Guaranty Limit” shall
mean an amount equal to the sum of (a) the aggregate amount of Note
Indebtedness advanced by the Borrower to each Guarantor under and
in accordance with the Intercompany Revolving Notes (irrespective
of which Guarantor is the obligor under any particular Intercompany
Revolving Note) and (b) the obligations of the Guarantors under
Section 4.12
hereof.

 

2.            

THE GUARANTY.

 

2.1           
Limited Guaranty of
Guaranteed Obligations. The Guarantors unconditionally,
jointly and severally, guarantee to the Agent, on behalf of the
Secured Parties, and their respective successors, endorsees,
transferees and assigns, the prompt payment and performance of all
Note Indebtedness, whether such obligations constitute principal,
interest, expenses, indemnification expenses or other obligations
(collectively, the “Guaranteed Obligations”);
provided that prior
to the Aemetis Option Exercise Date, the aggregate obligations and
liabilities of the Guarantor hereunder shall not at any time or in
any event or circumstance exceed the Guaranty Limit and
provided,
further, that on
and after the Aemetis Option Exercise Date, this Limited Guaranty
will no longer give effect to and shall be construed as excluding
the term “Guaranty Limit”. All payments under this
Limited Guaranty shall be made in United States Dollars in
immediately available funds within five (5) Business Days after the
Agent’s demand therefor.

 

2.2           Guarantee
Absolute. The Guarantors
guarantee that the Guaranteed Obligations will be paid strictly in
accordance with their terms regardless of any law, regulation or
order now or hereafter in effect in any jurisdiction affecting any
of such terms or the rights of the Agent and/or Secured Parties
with respect thereto. The liability of the Guarantors hereunder
shall be primary, absolute and unconditional irrespective
of:

 

(a)           any
lack of validity or enforceability of the Note Indebtedness
or the Guaranteed Obligations or any
agreement or instrument relating thereto;

 

(b)           any
change in the time, manner or place of the payment of, or in any
other term of, all or any of the Note Indebtedness
or the Guaranteed Obligations, or any
amendment or modification of or any consent to departure from this
Limited Guaranty or any other Note Purchase
Document;

 

(c)           any
exchange, release, unopposability or nonperfection of any
Collateral or any release or amendment to, waiver of, or consent to
departure from, or any guarantee for, all or any part of the Note
Indebtedness or the Guaranteed Obligations;

 

(d)           any
whole or partial termination of this Limited Guaranty;
or

 

(e)           any
other circumstance which might otherwise constitute a defense
available to, or a discharge of, any Obligor in respect of
the Note Indebtedness.

 

 

 

1

 

 

 

 

2.3           Consents,
Waivers and Renewals. The Guarantors hereby renounce the
benefits of division and discussion. The Guarantors hereby waive
promptness, diligence, notice of the acceptance hereof, notice of
intent to accelerate and notice of acceleration and any other
notice with respect to any of the Note Indebtedness or the
Guaranteed Obligations, this Limited
Guaranty or the other Note Purchase Documents and any
requirement that the Agent and/or Secured Parties protect, secure,
perfect, render opposable or insure any Agent’s Lien or Lien
on any Property subject thereto or exhaust any right or take any
action against any other Person or any Collateral before proceeding
hereunder. The Guarantors agree that the Agent and/or Secured
Parties may at any time and from time to time, either before or
after the maturity of the Note Indebtedness, without notice to or
further consent of any Guarantor or any other Person extend the
time of payment of, exchange or surrender any Collateral for, or
renew any of the Note Indebtedness or the Guaranteed Obligations,
and may also make any agreements with any other party to or Person
liable on any of the Note Indebtedness, or interested therein, for
the extension, renewal, payment, compromise, discharge, or release
thereof, in whole or in part, or for any modification of the terms
thereof or of any agreement between the Agent and/or any
Noteholders and the Borrower or any such other party or Person,
without in any way impairing or affecting this Limited Guaranty.
The Guarantors agree to make payment to the Agent, for the ratable
benefit of the Secured Parties, of any of the Note Indebtedness and
the Guaranteed Obligations whether or not the Agent and/or any
Secured Parties shall have resorted to any collateral security, or
shall have proceeded against any other obligor principally or
secondarily obligated with respect to any of the Note Indebtedness
or the Guaranteed Obligations. Each Guarantor hereby irrevocably
renounces every right it may acquire to be released from its
guarantee pursuant to applicable law. At the request of the Agent
or any Secured Party, made at any time, the Guarantors shall renew
the Limited Guaranty hereunder by executing such documents for this
purpose as may be reasonably requested by the Agent.

 

2.4           Reinstatement.
If at any time any payment in respect of any of the Guaranteed
Obligations is rescinded or must otherwise be returned for any
reason whatsoever, in whole or in part, the Guarantors’
obligations hereunder shall (x) revive and remain in full force and
effect or (y) be reinstated (as the case may be) with respect to
such Guaranteed Obligations, in any case, subject to the Guaranty
Limit.

 

2.5           Payments.
All payments made by, or on behalf of, the Guarantors hereunder
will be made without setoff, counterclaim or other
defense.

 

2.6           Subrogation.
The Guarantors shall not exercise any rights which it may acquire
by way of subrogation under this Limited Guaranty or the other Note
Purchase Documents, by any payment made hereunder or otherwise,
until all the Note Indebtedness and the Guaranteed Obligations
shall have been paid in full. If any amount shall be paid to the
Borrower on account of such subrogation rights in violation of the
foregoing restriction, such amount shall be held in trust and as
mandatary for the benefit of the Agent (for itself and the other
Secured Parties) and shall forthwith be paid to the Agent (for
itself and the other Secured Parties) to be credited and applied to
the Note Indebtedness, whether matured or unmatured.

 

2.7           Postponement
and Subordination. Guarantors hereby postpone any right of
enforcement, remedy and action and subordinate any claims,
including any right of payment, subrogation, contribution and
indemnity that they may have at any time against any Obligor or any
other guarantor, howsoever arising, to irrevocable payment in full
of the Note Indebtedness. Any such claims (whether secured or
unsecured) and any such remedial rights are hereby assigned or
hypothecated to Agent and the Secured Parties (and shall be
assigned or hypothecated pursuant to documentation satisfactory to
Agent), and any such claims owing and paid to the Guarantors in
contravention of the terms of this Limited Guaranty shall be received and held
by such Guarantor in trust and as agent and mandatary for the
benefit of Agent and the Secured Parties and the proceeds thereof
shall forthwith be paid over to Agent to be credited and applied to
the Note Indebtedness, whether matured or unmatured, in accordance
with the terms of this Limited
Guaranty. In furtherance of the foregoing, any and all Liens
held by the Guarantors shall for all purposes be, and at all times
remain, inferior, junior and subordinate to the Liens from time to
time held by the Agent under the Security Documents; without
limiting the generality of the foregoing, the foregoing priority
shall prevail in all circumstances and irrespective of: (i) the
priorities otherwise accorded to any such Liens by any applicable
law; (ii) the time or order of the creation, granting, execution or
delivery of the Note Indebtedness, the Note Purchase Documents or
any other deed, document, instrument, act or notice; (iii) the time
or order of the attachment or perfection or setting-up of the
security interests and hypothecs constituted by any such Liens;
(iv) the time or order of registration, notification or publication
of any such Liens or the filing of financing statements or other
instruments and documents with respect thereto; (v) the time of the
making of advances and other credits under the Note Indebtedness;
or (vi) the giving of, or the failure to give, any notice to the
Guarantors or the time of giving of any such notice; in addition,
the Guarantors hereby cede priority of rank and payment to the
Agent and the Secured Parties in all respects to the extent
necessary to give full effect to the foregoing.

 

 

 

2

 

 

2.8           Waivers.
In addition to the waivers contained in Section 2.3 hereof, the
Guarantors waive, and agree to the fullest extent permitted by law
that they shall not at any time insist upon, plead or in any manner
whatever claim or take the benefit or advantage of, any appraisal,
valuation, stay, extension, marshaling of assets or redemption
laws, or exemption, whether now or at any time hereafter in force,
which may delay, prevent or otherwise affect the performance by the
Guarantors of the Guaranteed Obligations hereunder (subject to the
Guaranty Limit) or the enforcement by the Agent of, this Limited
Guaranty. The Guarantors hereby waive, to the fullest extent
permitted by law, diligence, presentment and demand (whether for
the benefit of any statute of limitations affecting each
Guarantor’s liability hereunder or the enforcement hereof,
non-payment or protest or of acceptance, extension of time, change
in nature or form of the Guaranteed Obligations, acceptance of
further security, release of further security, composition or
agreement arrived at as to the amount of, or the terms of, the
Guaranteed Obligations, notice of adverse change in the
Borrower’s financial condition or any other fact which might
increase the risk to the Guarantors) with respect to any of the
Guaranteed Obligations or all other demands whatsoever and waives,
to the fullest extent permitted by law, the benefit of all
provisions of law which are or might be in conflict with the terms
of this Limited Guaranty.

 

3.            

REPRESENTATIONS AND
WARRANTIES.

 

3.1           To
induce the Agent and the other Secured Parties to enter into the
transactions contemplated by the Note Purchase Documents, each
Guarantor makes the following representations and warranties to the
Agent and each Secured Party, each and all of which shall survive
the execution and delivery of this Limited Guaranty: Each Guarantor
(i) has relied exclusively on such Guarantor’s own
independent investigation of the Borrower for such
Guarantor’s decision to guarantee the Guaranteed Obligations
now existing or thereafter arising (subject to the Guaranty Limit),
(ii) has sufficient knowledge of the Borrower to make an informed
decision about this Limited Guaranty, and neither the Agent nor any
other Secured Party has any duty or obligation to disclose any
information in its possession or control about the Borrower to any
Guarantor, and (iii) has adequate means to obtain from the Borrower
on a continuing basis information concerning the financial
condition of the Borrower and is not relying on the Agent or any
other Secured Party to provide such information either now or in
the future.

 

3.2           In
addition, each Guarantor represents and warrants to the Agent and
the Secured Parties as follows:

 

(a)           Each
Guarantor has had the opportunity to discuss the terms and
conditions of the Note Purchase Documents and the Aemetis Option
with its own counsel and has relied on such counsel’s advice
with respect to the Note Purchase Documents and the Aemetis Option
in conjunction with the execution of this Limited
Guaranty.

 

(b)           
Each Guarantor makes the additional representations and warranties
set forth on Exhibit
A hereto.

 

4.            

OTHER TERMS.

 

4.1           Covenants.

 

(a)           Each
Guarantor makes the covenants set forth on Exhibit B hereto.

 

 

 

3

 

 

(b)           Subject
to the terms of the Existing Agreement, each Guarantor shall be required to, and hereby
agrees to, contribute 100% of the net cash proceeds received by
such Guarantor from the EB-5 Program Issuance to the Borrower and
thereafter cause the Borrower to use 100% of such proceeds to make
a mandatory prepayment on the Term Loan under and in accordance
with Section 2.4(b)(ii) of the Note Purchase
Agreement.

 

4.2           Amendments.
This Limited Guaranty may not be amended or modified except by the
written agreement of the Guarantors and the Agent.

 

4.3           Waiver.
No waiver of any provision of this Limited Guaranty, and no consent
to any departure by the Guarantors herefrom, shall in any event be
effective unless the same shall be in writing and signed by the
Agent, and then such waiver or consent shall be effective only in
the specific instance and for the specific purpose for which given.
No failure on the part of the Agent or any other Secured Party to
exercise, and no delay in exercising any right hereunder, shall
operate as a waiver thereof; nor shall any single or partial
exercise of any such right preclude any other or further exercise
thereof or the exercise of any other right.

 

4.4           Notices.
All notices, requests and demands and other communications to or
upon the Agent or any Obligor hereunder shall be effected in the
manner provided for in Section 8.2 of the Note
Purchase Agreement; provided that any notice, request, demand or
other communication to the Guarantors shall be addressed to each
Guarantor at its address on the signature page to this Limited Guaranty. Notices sent by hand or
overnight courier service, or mailed by certified or registered
mail, shall be deemed to have been given when received; notices
sent by facsimile shall be deemed to have been given when sent
(except that, if not given during normal business hours for the
recipient, shall be deemed to have been given at the opening of
business on the next Business Day for the recipient).

 

4.5           Severability. 
Any provision of this Limited Guaranty
which is prohibited or unenforceable in any jurisdiction shall, as
to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in
any jurisdiction shall not invalidate or render unenforceable such
provision in any other jurisdiction.

 

4.6           Section
Headings. The Section headings
used in this Limited Guaranty are for convenience of reference only
and are not to affect the construction hereof or be taken into
consideration in the interpretation hereof.

 

4.7           Counterparts.
This Limited Guaranty may be executed in any number of counterparts
and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement.
Delivery of an executed counterpart of a signature page of this
document by facsimile or other electronic means shall be effective
as delivery of a manually executed counterpart of this Limited
Guaranty.

 

 

 

4

 

 

4.8           Submission
to Jurisdiction; Waivers.

 

(a)           Jurisdiction.
EACH GUARANTOR IRREVOCABLY AND UNCONDITIONALLY AGREES THAT IT WILL
NOT COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF ANY KIND OR
DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN
TORT OR OTHERWISE, AGAINST ANY SECURED PARTY OR ANY RELATED PARTY
OF ANY SECURED PARTY IN ANY WAY RELATING TO THIS LIMITED GUARANTY
OR ANY OTHER NOTE PURCHASE DOCUMENT OR THE TRANSACTIONS RELATING
HERETO OR THERETO, IN ANY FORUM OTHER THAN THE COURTS OF THE STATE
OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES
DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY
APPELLATE COURT FROM ANY THEREOF, AND EACH OF THE PARTIES HERETO
IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH
COURTS AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION,
LITIGATION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW
YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT
A FINAL JUDGMENT IN ANY SUCH ACTION, LITIGATION OR PROCEEDING SHALL
BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON
THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN
THIS LIMITED GUARANTY OR IN ANY OTHER NOTE PURCHASE DOCUMENT SHALL
AFFECT ANY RIGHT THAT ANY SECURED PARTY MAY OTHERWISE HAVE TO BRING
ANY ACTION OR PROCEEDING RELATING TO THIS LIMITED GUARANTY OR ANY
OTHER NOTE PURCHASE DOCUMENT AGAINST THE PLEDGOR OR ANY OTHER
OBLIGOR OR ITS PROPERTIES IN THE COURTS OF ANY
JURISDICTION.

 

(b)           Waiver
of Venue. Each Guarantor
irrevocably and unconditionally waives, to the fullest extent
permitted by applicable law, any objection that it may now or
hereafter have to the laying of venue of any action or proceeding
arising out of or relating to this Limited Guaranty in any court
referred to in paragraph (a) of this Section. Each of the parties
hereto hereby irrevocably waives, to the fullest extent permitted
by applicable law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such
court.

 

(c)           Service
of Process. Each party
irrevocably consents to service of process in the manner provided
for notices in Section
4.4. Nothing in this Limited
Guaranty will affect the right of any party hereto to serve process
in any other manner permitted by applicable
law.

 

(d)           Waiver.
Each Guarantor hereby waives, to the maximum extent not prohibited
by law, any right it may have to claim or recover in any legal
action or proceeding referred to in this Section any special,
exemplary punitive or consequential damages.

 

4.9          
Governing
Law. THIS
LIMITED GUARANTY AND THE RIGHTS AND OBLIGATIONS HEREUNDER OF THE
GUARANTORS, THE BORROWER AND THE SECURED PARTIES AND ANY CLAIMS,
CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR
TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS
LIMITED GUARANTY AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE
OF NEW YORK.

 

4.10           WAIVER
OF JURY TRIAL. EACH PARTY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS

LIMITED GUARANTY OR ANY
TRANSACTION CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR
ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY SECURED PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH SECURED PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER AND (B) ACKNOWLEDGES THAT THE SECURED PARTIES HERETO HAVE
BEEN INDUCED TO ENTER INTO THIS 
LIMITED GUARANTY BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

 

 

 

5

 

 

4.11             Assignment.
This Limited Guaranty shall be binding on, and shall inure to the
benefit of the Guarantors, the Agent, each Secured Party and their
respective successors and assigns; provided that no Guarantor may
assign or transfer its rights or obligations under this Limited
Guaranty without the written consent of the Agent.

 

4.12             Indemnity
and Expenses. (a) The
Guarantors, jointly and severally, agree to indemnify the Agent,
each Noteholder and each Related Party of any of the foregoing
Persons (each such Person being called an
“Indemnitee”)
against, and hold each Indemnitee harmless from, any and all
losses, claims, damages, liabilities and related costs and expenses
(including the fees, charges and disbursements of any counsel for
any Indemnitee), incurred by any Indemnitee or asserted against any
Indemnitee by any Person (including an Obligor) arising out of, in
connection with, or as a result of (i) the execution or delivery of
this Limited Guaranty, any other Note Purchase Document or any
agreement or instrument contemplated hereby or thereby, the
performance by the parties hereto of their respective obligations
hereunder or thereunder or the consummation of the transactions
contemplated hereby or thereby, (ii) the use or proposed use of the
proceeds therefrom, or (iii) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the
foregoing, whether based on contract, tort or any other theory,
whether brought by a third party or by any Obligor; provided that
such indemnity shall not, as to any Indemnitee, be available to the
extent that such losses, claims, damages, liabilities or related
expenses (x) are determined by a court of competent jurisdiction by
final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Indemnitee or (y) result
from a claim brought by any Obligor against an Indemnitee for a
material breach in bad faith of such Indemnitee’s obligations
hereunder or under any other Note Purchase Document, if any such
Obligor has obtained a final and nonappealable judgment in its
favor on such claim as determined by a court of competent
jurisdiction.

 

(b)           The
Guarantors shall not, without the prior written consent of the
applicable Indemnitee(s), effect any settlement of any pending or
threatened claim, litigation, investigation or proceeding in
respect of which such Indemnitee is a party and indemnity could
have been sought hereunder by such Indemnitee, unless such
settlement (i) includes an unconditional release of such Indemnitee
from all liability or claims that are the subject matter of such
proceeding and (ii) does not include a statement as to or an
admission of fault, culpability, or a failure to act by or on
behalf of such Indemnitee.

 

(c)           The
Guarantors will upon demand, jointly and severally, pay to the
Agent the amount of any and all expenses, including, without
limitation, the fees and expenses of its counsel and of any experts
and agents, that the Agent or any Secured Party may incur in
connection with (i) the exercise or enforcement of any of the
rights of the Agent or the other Secured Parties hereunder or (ii)
the failure by any Guarantor to perform or observe any of the
provisions hereof.

 

(d)           The
agreements in this Section
4.12 shall survive repayment of the Note Indebtedness and
all other amounts payable under the Note Purchase Agreement and the
other Note Purchase Documents.

 

[SIGNATURE PAGE
FOLLOWS]

 

 

6

 

IN
WITNESS WHEREOF, the parties hereto have executed and delivered
this Limited Guaranty as of the date first above
written.

 

AEMETIS, INC., as a
Guarantor

 

By: 

/s/ Eric A.
McAfee

Name:
Eric A. McAfee

Title:
President and CEO

 

Address for Notices to
Guarantor:

20400
Stevens Creek Blvd, Suite 700

Cupertino, CA
95014

Attention: 
Chief Executive Officer

Telephone: 
________________

Facsimile: 
_________________

 

AEMETIS
ADVANCED PRODUCTS KEYES, INC., as a Guarantor

 

By: 

/s/ Eric A. McAfee

Name:
Eric A. McAfee

Title:
President and CEO

 

Address for Notices to
Guarantor:

20400
Stevens Creek Blvd, Suite 700

Cupertino, CA
95014

Attention: 
Chief Executive Officer

Telephone: 
________________

Facsimile: 
_________________

 

 

THIRD
EYE CAPITAL CORPORATION, as the Agent

 

By:

/s/ Arif N.
Bhalwani

Name:
Arif N. Bhalwani

Title:
Managing Director

 

 

Signature Page to Limited Guaranty

 

 

 

Acknowledged and
Agreed:

 

 

GOODLAND
ADVANCED FUELS, INC.,

as the
Borrower

 

 

By:     
/s/ Michael L.
Peterson

Name:
Michael L. Peterson

Title:
President and CEO

 

 

 

 

 

 

 

 

 

 

 

 

 

Signature
Page to Limited Guaranty

 

 

 

EXHIBIT A

 

Subject
to the disclosures set forth in the disclosure schedule of the
Guarantors delivered to Agent and Noteholders concurrently with the
execution and delivery of this Limited Guaranty (the
“Disclosure
Schedule”) (each of which disclosures, in order to be
effective, shall clearly indicate the Section and, if applicable,
the Subsection of this Exhibit A to which it relates),
each Guarantor represents and warrants
to the Agent as follows:

 

(a)           Each
Guarantor (i) is duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization,
(ii) has the power and authority, and the legal right, to own and
operate its Property and to conduct the business in which it is
currently engaged, (iii) is duly qualified as a foreign corporation
and in good standing under the laws of each jurisdiction where its
ownership, lease or operation of Property or the conduct of its
business requires such qualification and (iv) is in compliance with
all Requirements of Law in all material
respects.

 

(b)         
Each Guarantor has the power and
authority, and the legal right, to make, deliver and perform the
Note Purchase Documents to which it is a party, to consummate the
transactions contemplated thereby and, as the case may be, to
obtain extensions of credit hereunder. Each Guarantor has taken all
necessary organizational action to authorize the execution,
delivery and performance of the Note Purchase Documents to which it
is a party and to authorize the extensions of credit on the terms
and conditions of this Limited Guaranty. No consent or authorization of, filing with,
notice to or other act by or in respect of, any Governmental
Authority or any other Person is required in connection with the
transactions contemplated hereunder or with the execution,
delivery, performance, validity or enforceability of this
Limited Guaranty or any of the Note
Purchase Documents. Each Note Purchase Document to which any
Guarantor is a party has been duly executed and delivered on behalf
of such Guarantor. This Limited Guaranty constitutes, and each other Note Purchase Document
upon execution will constitute, a legal, valid and binding
obligation of each Guarantor a party thereto, enforceable against
such Guarantor in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally and by general
equitable principles (whether enforcement is sought by proceedings
in equity or at law).

 

(c)         
The execution, delivery, and
performance by the Guarantors of this Limited Guaranty
and the other Note Purchase Documents
to which each such Guarantor is a party and compliance with the
terms and provisions hereof and thereof will not (i) violate or
conflict with, or result in a breach of, or require any consent
(other than those that have been, or on the Closing Date will be,
duly obtained or made and which are, or on the Closing Date will
be, in full force and effect) under (A) the Organic Documents of
each Guarantor, (B) any Requirement of Law, or (C) any material
agreement or instrument to which each Guarantor is a party or by
which it or any of its properties is bound or subject, or (ii)
result in the creation or imposition of any Lien upon any of the
revenues or assets of any Guarantor other than the Liens arising
under the Note Purchase Documents.

 

(d)        
All factual information taken as a
whole (other than forward-looking information and projections and
information of a general economic nature and general information
about the industry of the Guarantors) furnished by or on behalf of
the Guarantors in writing to the Agent or any Noteholder for
purposes of or in connection with this Limited Guaranty
or any other Note Purchase Document,
will be true and accurate in all material respects, on the date as
of which such information is dated or certified and is not
incomplete by omitting to state any fact necessary to make such
information (taken as a whole) not misleading in any material
respect at such time in light of the circumstances under which such
information was provided. The projections delivered to the Agent
represent, the good faith estimate of the Guarantors, on the date
such projections were/are delivered, of the each such
Guarantor’s future performance for the periods covered
thereby based upon assumptions believed by the Guarantors to be
reasonable at the time of the delivery thereof to the
Agent.

 

 

 

 

 

 

 

(e)         
Schedule
A(e) hereto is a correct and
complete list of each Guarantor’s head office, registered
office and chief executive office, the location of its books and
records and the locations of its Property. Each Guarantor enjoys
peaceful and undisturbed possession under all leases material to
its business, if any, and to which it is a party or under which it
is operating, and all such material leases, if any, are valid and
subsisting and no material default by either Guarantor exists under
any of them.

 

(f)           Neither
Guarantor nor to the knowledge of either Guarantor, any of its
respective Affiliates, is (i) in violation of any applicable laws
relating to terrorism or money laundering
(“Anti-Terrorism
Laws”), including, but
not limited to, (x) the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001, Public Law 107-56, (y) the laws, rules and
regulations comprising or implementing the Bank Secrecy Act, (z)
the laws, rules and regulations administered by the United States
Department of the Treasury’s Office of Foreign Asset Control
(“OFAC”)
(as any of the foregoing laws described in this Section A(f) may
from time to time be amended, renewed, extended, or replaced), or
(ii) currently a Sanctioned Entity. No proceeds from any AAPK
Intercompany Note or Parent Intercompany Note has been used by any
Guarantor to lend, contribute, provide, or has otherwise been made
available by any Guarantor to fund, any activity or business in any
Designated Jurisdiction or to fund any activity or business of any
Sanctioned Entity, or in any other manner that will result in any
violation by any Noteholder, the Agent or any of their respective
Affiliates, of Sanctions.

 

(g)           Neither
Guarantor nor to the knowledge of any Guarantor, any of its
respective Affiliates or any of their respective agents acting in
any capacity in connection with the AAPK Intercompany Note and the
Parent Intercompany Note or other transactions hereunder (i)
conducts any business or engages in making or receiving any
contributions of funds, goods or services to or for the benefit of
any Sanctioned Entity, except to the extent not in violation of
Sanctions or (ii) knowingly engages in or conspires to knowingly
engage in any transaction that evades or avoids, or has the purpose
of evading or avoiding, or attempts to violate, any of the
prohibitions set forth in any applicable Anti-Terrorism
Law.

 

(h)           Each
Guarantor is in compliance in all material respects with the
Foreign Corrupt Practices Act, as amended, and rules and
regulations thereunder (“FCPA”).
No part of the proceeds of the AAPK Intercompany Note or the Parent
Intercompany Note will be used directly or indirectly for any
payments to any governmental official or employee, political party,
official of a political party, candidate for political office, or
anyone else acting in an official capacity, in order to obtain,
retain or direct business or obtain any improper advantage, in
violation of the FCPA.

 

(i)           To
the knowledge of either Guarantor, no Guarantor is not in violation
of any Requirement of Law, including all environmental laws, in any
material respect.

 

(j)         
There are no actions, suits,
litigation or proceedings, at law or in equity, pending by or
against either Guarantor before any court, administrative agency,
or arbitrator in which a likely adverse decision could reasonably
be expected to have a Material Adverse Effect.

 

(k)           Each
Guarantor has filed all federal and other material tax returns
required to be filed, including all income, franchise, employment,
property, and sales tax returns, and has paid all of their
respective federal and other material taxes, assessments,
governmental charges, and other levies that are due and payable,
except to the extent such taxes are contested in good faith by
proper proceedings which stay the imposition of any penalty, fine
or Lien resulting from the non-payment thereof and with respect to
which adequate reserves have been set aside for the payment
thereof. No Guarantor has knowledge of any pending investigation of
either Guarantor by any taxing authority or of any pending
unassessed tax liability (other than taxes which are not yet due
and payable) of any Guarantor.

 

 

 

 

 

(l)           
Each Guarantor has rights in or the
power to transfer the Collateral, and its title to the Collateral
is free and clear of Liens, adverse claims and restrictions on
transfer or pledge except as permitted under this Limited
Guaranty or the other Note Purchase Documents.

 

(m)         
The proceeds of the AAPK Intercompany
Note and the Parent Intercompany Note shall be used by the
respective Guarantor for the purposes described on Schedule 5.1(i)
to the Note Purchase Agreement. Neither Guarantor is engaged
principally, or as one of its important activities, in the business
of extending credit for the purpose of purchasing or carrying
margin stock (within the meaning of Regulations T, U, or X of the
Board of Governors of the Federal Reserve System), and no part of
the proceeds of any AAPK Intercompany Note and the Parent
Intercompany Note will be used to purchase or carry any margin
stock or to extend credit to others for the purpose of purchasing
or carrying margin stock.

 

(n)           No
Guarantor is (i) an “investment company” or a company
“controlled” by an “investment company”
within the meaning of the Investment Company Act of
1940 or (ii) subject to
regulation under any other federal or state statute, rule or
regulation limiting its ability to incur Indebtedness, pledge its
assets or perform its obligations under the Note Purchase
Documents.

 

(o)           All
financial statements related to either Guarantor that are delivered
by such Guarantor to Agent fairly present in all material respects
such Guarantor’s financial condition as of the date thereof
and such Guarantor’s results of operations for the period
then ended. There has not been a material adverse change in the
financial condition of Guarantor since the date of the most recent
of such financial statements submitted to
Agent.

 

(p)         
The properties of the Guarantors are insured with financially
sound and reputable insurance companies which are not Affiliates of
the Guarantors, in such
amounts, with such deductibles and covering such risks as are
customarily carried by companies engaged in similar businesses and
owning similar properties in localities where such Guarantor operates.

 

(q)           Each
Guarantor has met the minimum
funding requirements of ERISA with respect to any employee benefit
plans subject to ERISA. No event has occurred resulting from any
Guarantor’s failure to
comply with ERISA that is reasonably likely to result in a
Guarantor incurring any liability that could reasonably be expected
to have a Material Adverse Effect.

 

(r)           Each
Guarantor is able to pay its debts (including trade debts) as they
mature; the fair saleable value of each Guarantor’s assets
(including goodwill minus disposition costs) exceeds the fair value
of such Guarantor’s liabilities; and no Guarantor will not be
left with unreasonably small capital after the transactions
contemplated by this Limited Guaranty and the other Note
Purchase Documents.

 

(s)           The
representations and warranties made in this Exhibit A
shall survive the execution and
delivery of this Limited Guaranty and shall deemed to have been made by each
Guarantor on the Closing Date and repeated by each Guarantor, in
each case with reference to the facts and circumstances then
existing, on each Interest Payment Date and any subsequent Drawdown
Date.

 

 

 

 

EXHIBIT B

 

1.           

Affirmative Covenants.
So long as any of the Guaranteed
Obligations shall remain unpaid, each Guarantor will, unless the
Agent shall otherwise consent in writing, in its sole and absolute
discretion:

 

(a)        Maintenance
of Existence; Compliance. (i)
Preserve, renew and keep in full force and effect its
organizational existence and take all reasonable action to maintain
all rights, privileges and franchises necessary or desirable in the
normal conduct of its business, (ii) comply in all material
respects with all contractual obligations, (iii) comply in all
material respects with all Requirements of Law, and (iv) preserve,
renew and keep in full force and effect all material
contracts.

 

(b)        Payment
of Obligations. Except for
amounts due and payable under the Existing Agreement, pay,
discharge or otherwise satisfy at maturity or before they become
delinquent, as the case may be, all its material obligations of
whatever nature (including all taxes), except where the amount or
validity thereof is currently being contested in good faith by
appropriate proceedings and reserves in conformity with GAAP with
respect thereto have been provided on the books of such Guarantor
or its Subsidiary, as applicable.

 

(c)        Reporting
Requirements. Furnish to the
Agent (i) written notice of the occurrence of any Default or Event
of Default or any other event or circumstance that may constitute a
Material Adverse Effect and (ii) such information with respect to
the condition or operations, financial or otherwise, of the
Guarantors as the Agent may from time to time reasonably request,
including, without limitation:

 

(1)
Annual Reporting: within ninety (90) days following the close of
each fiscal year, i) each Guarantor’s annual financial
statements, prepared in accordance with GAAP and reviewed by a
recognized firm of qualified accountants acceptable to the Agent
and presenting fairly the financial condition of such Guarantor and
any of its Subsidiaries as of the date thereof and for the period
then ended (and including a letter from such accountants), and ii)
a copy of the Capital Expenditure budget of such Guarantor and its
Subsidiaries for such following fiscal year;

 

(2) Quarterly Reporting: within forty-five (45)
days after the close of each fiscal quarter, i) quarterly and
fiscal year-to-date unaudited consolidated financial statements of
each Guarantor and its Subsidiaries, including an income statement,
balance sheet, and statement of cash flow, statement of earnings
prepared in accordance with GAAP (subject to the absence of notes
and annual adjustment) ii)
updates to the current year’s financial projections for each
such remaining fiscal quarters, and (C) updates to the Capital
Expenditure budget for each such remaining fiscal
quarters;

 

(3) Quarterly Compliance Certificate: forty-five
(45) days after the close of each fiscal quarter, a compliance
certificate, duly executed by a Responsible Officer, demonstrating
compliance with the financial covenants set forth in Section 2(l)
of this Exhibit B and in the form attached hereto as
Schedule
1 or otherwise satisfactory in
form and substance to the Agent;

 

(4) Annual Budget: As soon as available and in any
event within forty-five (45) days following the commencement of
each fiscal year, the annual business plan of each Guarantor and
its Subsidiaries prepared on a consolidated basis, with financial
projections and budgets on an annual basis, in each case consisting
of a balance sheet, statement of income, statement of cash flows,
proposed Capital Expenditures and a list of assumptions upon which
such projections are based (the “Guarantor Annual
Budget”) for such fiscal
year;

 

 

 

 

 

(5)
Guarantor Annual Budget Updates: As soon as practicable and in any
event within (A) sixty (60) days after each fiscal year and (B) two
hundred and forty (240) days after each fiscal year, updates of the
cash flow projections and budget from the Guarantor Annual Budget
with projections for the immediately succeeding twelve-month or
six-month period, as applicable, together with a summary of
variances from the applicable projections providing supplementary
detailed schedules and information supplementary to and consistent
with the Guarantor Annual Budget;

 

(6)
Material Internal Reports: Immediately upon receipt by any
Guarantor or any its Subsidiaries, copies of any reports, including
material internal reports provided to or by its engineers, other
employees or external consultants with respect to the Riverbank
Project;

 

(7)
Insurance and Security: From time to time upon request of the
Agent, and in any event at least annually, evidence of (A) the
maintenance of all insurance required to be maintained pursuant to
this Limited Guaranty, including originals or copies as the Agent
may request of policies, certificates of insurance, riders,
endorsements and proof of premium payments, (B) maintenance of
onsite security personal on a 24/7 basis, and (C) the good standing
of all authorizations, permits, licenses, certifications, consents,
registrations and approvals material to either
Guarantor;

 

(8)
Shareholder Notices: Copies of all notices, reports and other
documents sent to shareholders and directors of a Guarantor or any
of its Subsidiaries as the Agent, on behalf of the Noteholders, may
from time to time reasonably request;

 

(9)
Riverbank Project Reports: As soon as available and in any event
within fifteen (15) days after the end of each calendar month, an
update on the Riverbank Project prepared by management of AAPK, in
form and substance satisfactory to the Agent;

 

(10)
SEC Reports: Copies of all notices, reports, press releases,
circulars, offering documents and other documents of each
Guarantors or any of its Subsidiaries filed with, or delivered to,
any stock exchange or securities commission or a similar
Governmental Authority in any applicable jurisdiction;
and

 

(11)
Other Information: Such other information respecting the condition
or operations, financial or otherwise, of the business of each
Guarantor or any its Subsidiaries, the Collateral, or any other
Obligor as the Agent may from time to time require, including
appraisals and valuations of the Mortgaged Property, the Riverbank
Project.

 

(d)        Environmental
Issues. (i) Comply with all
applicable environmental laws, including obtaining and maintaining
all relevant environmental permits; (ii) promptly notify
Noteholders of any environmental claim, notice or order against it;
and (iii) conduct such environmental audits as may reasonably be
requested by the Agent.

 

 

 

 

 

(e)        Security.
Do, observe and perform or cause to be done, observed and performed
all of its obligations and all matters and things necessary or
expedient and which may be legally done, observed and performed by
each Guarantor and each
Subsidiary for the purpose of perfecting, setting-up, rendering
opposable, creating or maintaining its rights and interest in all
collateral in which such Person has granted Liens in favor of the
Agent. Each Guarantor and each
Subsidiary shall promptly execute and deliver to the Agent such
additional or complementary security documents, or such
confirmations or such notices or documents containing such further
description of properties charged or intended to be charged by the
Security Documents as may in the reasonable opinion of the Agent be
necessary or advisable to create and maintain its rights in all
such collateral. Without limiting the
generality of the foregoing, upon exercise of the Aemetis Option,
the Parent, as holder of Capital Stock of the Borrower pursuant to
the Aemetis Option, shall take such actions relating thereto that
are requested by the Agent pursuant to this clause 1(e) to
effectuate the terms and provisions of the Pledge Agreement.
Each Guarantor shall cause to be promptly made all registrations,
publications and filings (including any renewals thereof) and to be
delivered all opinions, necessary, in the reasonable opinion of the
Agent, to render the Security Documents, and the Liens made in
favor of the Agent, to be fully effective as security. The
Guarantors shall promptly notify the Agent of the establishment of
any deposit account, securities account or other bank account by
such Guarantor or any Subsidiary and, at the request of the Agent,
enter into any control agreements with respect thereto as may be
requested by the Agent. The Guarantors shall notify the Agent of
the acquisition by such Guarantor or any Subsidiary of any material
assets, the formation or acquisition of any new Subsidiaries of
such Person and the acquisition of any interests in any real
property, and shall take such actions relating thereto that are
requested by the Agent pursuant to this clause 1(e), including,
without limitation, causing any such new Subsidiary to become a
Guarantor and/or causing any such assets to become subject to a
Lien securing the Note Indebtedness.

 

(f)        Maintenance
of Properties. Keep and
maintain all Property material to the conduct of its business in
good working order and condition, ordinary wear and tear
excepted.

 

(g)        Insurance.

 

(1)
Maintain, with financially sound and reputable insurers having a
rating acceptable to the Agent in its reasonable discretion,
covering, except as permitted by the Agent, all of their Property,
insurance against loss or damage by fire with extended coverage;
theft, burglary, pilferage and loss in transit; public liability
and third party property damage; larceny, embezzlement or other
criminal liability; public liability and third party property
damage; and such other hazards or of such other types as is
customary for Persons engaged in the same or similar business, as
the Agent, in its discretion, shall specify, in amounts, and under
policies acceptable to the Agent.

 

(2)
Cause the Agent, for the ratable benefit of the Agent and the
Noteholders, to be named as loss payee or additional insured in
each policy insuring its Property or any part thereof, in a manner
acceptable to the Agent. All premiums for such insurance shall be
paid by each Guarantor, as applicable, when due, and certificates
of insurance and, if requested by the Agent or any Noteholder,
photocopies of the policies, shall be delivered to the Agent, in
each case in sufficient quantity for distribution by the Agent to
each of the Noteholders. If either Guarantor fails to procure such
insurance or to pay the premiums therefor when due, the Agent may
do so from the proceeds of the Loans.

 

(h)        Inspection.
Enable and assist representatives of the Agent to examine (and, if
desired, copy) each Guarantor’s (and any of its
subsidiaries’) records, to inspect any of its properties, to
conduct field examinations, audits and appraisals of any of the
Collateral, the Riverbank Project, and to discuss its business and
affairs with its officers, directors, employees, accountants,
auditors, partners, suppliers and customers all to the extent
reasonably requested by the Agent and all at the Borrower’s
expense. Not in limitation of the foregoing, enable and assist
representatives of the Agent to conduct a monthly review of the
progress of the Riverbank Project.

 

(i)        
Use of
Proceeds. Use the proceeds of
the AAPK Intercompany Note or Parent Intercompany Note solely for
the purposes identified on Schedule 5.1(i)
to the Note Purchase Agreement or as
otherwise agreed to by the Agent in its sole discretion, and not
for personal, family, household or agricultural purposes or
advanced to any Person who is not an Obligor.

 

 

 

 

 

(j)        Books
and Records. Maintain at all
times, correct and complete books, records and accounts in which
complete, correct and timely entries are made of its transactions
in accordance with GAAP. Each Guarantor and its Subsidiaries shall,
by means of appropriate entries, reflect in such accounts and in
all their financial statements adequate liabilities and reserves
for all taxes and adequate provision for depreciation and
amortization of Property and bad debts, all in accordance with
GAAP. Each Guarantor and its Subsidiaries shall maintain at all
times books and records pertaining to their Property in such
detail, form and scope as the Agent shall reasonably require,
including, without limitation, records of: (i) all payments
received and all credits and extensions granted with respect to
their accounts or claims; and (ii) all other dealings affecting
their Property. Upon request by the Agent, each Guarantor shall
promptly deliver or cause to be delivered (where applicable and
provided such delivery is permitted by law): (i) technical and
engineering reports prepared by independent experts in connection
with the business of the Guarantors; (ii) copies of all material
and selected contracts and authorizations; (iii) organizational
charts for the Guarantors and a summary of compensation of all
personnel of the Guarantors; (iv) copies of reports sent to
shareholders and directors of any of the Guarantors; and (v) such
further schedules, documents, and information as the Agent may
require.

 

(k)        Further
Assurances. At its own cost and
expense, execute and deliver to Agent and Noteholders all such
documents, instruments and agreements and do all such other acts
and things as may be reasonably required, in the opinion of the
Agent, to carry out the purpose of each Note Purchase Document to
which it is a party or to enable the Agent and Noteholders to
exercise and enforce their rights hereunder or
thereunder.

 

(l)        
Taxes. Make due and timely payment or deposit of all
federal, provincial, territorial, state and local taxes,
assessments or contributions required of it by law (including, but
not limited to, those laws concerning income taxes, F.I.C.A.,
F.U.T.A. and state disability), and will execute and deliver to the
Agent, on demand, proof satisfactory to the Agent indicating that
such Person has made such payments or deposits and any appropriate
certificates attesting to the payment or deposit
thereof.

 

(m)      
Additional
Guarantors and Security. Upon
the request of the Agent following the formation or acquisition of
any new direct or indirect Subsidiaries approved by the Agent by
either Guarantor or the acquisition of any property by either
Guarantor, and such property, in the judgment of the Agent, shall
not already be subject to a perfected first priority security
interest in favor of the Agent for the benefit of the Noteholders,
then in each case at such Guarantor’s expense: (i) in
connection with the formation or acquisition of a Subsidiary,
within ten (10) days after such formation or acquisition, cause
each such Subsidiary, and cause each direct and indirect parent of
such Subsidiary (if it has not already done so), to duly execute
and deliver to the Agent a supplement to the Guaranty, or other
similar guaranty in form and substance satisfactory to the Agent,
guaranteeing the Note Indebtedness; and (ii) within fifteen (15)
days after such request, formation or acquisition, duly execute and
deliver, and cause each such Subsidiary and each direct and
indirect parent of such Subsidiary to duly execute and deliver to
the Agent mortgages, pledges, assignments, security interests and
other security agreements, as specified by and in form and
substance satisfactory to Agent (including delivery of all Capital
Stock in and of such Subsidiary, and other instruments requested by
the Agent in connection therewith, in each case, securing payment
of all Note Indebtedness.

 

(n)       
Compensation
Agreements. Prior to entering
into or modifying any compensation agreements for key officers or
directors of either Guarantor or any their respective Subsidiaries,
each Guarantor shall provide the terms thereof to the Agent, and
such terms must be satisfactory to the Agent, acting
reasonably.

 

(o)        
Control
Agreement. Within thirty (30)
days following a request of Agent from time to time with respect to
any Guarantor, execute and deliver to Agent, one or more control
agreements over such Guarantor’s deposit accounts
countersigned by the applicable bank or third party, in each case,
in a form acceptable to Agent in its sole
discretion.

 

 

 

 

 

2.           Negative
Covenants. So long as any of
the Guaranteed Obligations shall remain unpaid, no Guarantor will,
directly or indirectly, without the prior written consent of the
Agent, in its sole and absolute discretion:

 

(a)           Liens.
Create, incur, assume or suffer to exist any Lien upon any of its
Property, whether now owned or hereafter acquired,
except:

 

(i)           Liens
for taxes not yet due or that are being contested in good faith by
appropriate proceedings, provided that adequate reserves with
respect thereto are maintained on the books of the applicable
Person in conformity with GAAP;

 

(ii)        
carriers’, warehousemen’s,
mechanics’, materialmen’s, repairmen’s or other
like Liens arising in the ordinary course of business that are not
overdue for a period of more than 30 days or that are being
contested in good faith by appropriate
proceedings;

 

(iii)        
pledges or deposits in connection with
workers’ compensation, unemployment insurance and other
social security legislation;

 

(iv)       
easements, rights-of-way, restrictions
and other similar encumbrances incurred in the ordinary course of
business that, in the aggregate, are not substantial in amount and
that do not in any case materially detract from the value of the
Property subject thereto or materially interfere with the ordinary
conduct of the business of such Person; and

 

(v)            

Liens
created pursuant to the Security Documents.

 

(b)           Indebtedness.
Create, incur, assume or suffer to
exist any Indebtedness, except Permitted Indebtedness. Without the
consent of the Agent, amend, modify or change any term or condition
of any documentation entered into in connection with any
Indebtedness (i) in any manner (i) if the effect of such amendment,
modification or change is to restrict in any manner the ability of
any Agent or the Noteholders to exchange, extend, renew, replace or
refinance, in whole or part, the Term Loan, Revolving Advances or
any other Indebtedness under the Note Purchase Documents, or (ii)
in any other manner that could be adverse to the interests, rights
or remedies of the Agent or any Noteholder under the Note Purchase
Documents.

 

(c)           Capital
Stock, Dividends, Etc. (i)
Declare or make any Distribution or other dividend payment or
distribution of assets, properties, cash, rights, obligations or
securities on account of any shares of any class of Capital Stock
of any Guarantor, (ii) purchase, redeem or otherwise acquire for
value any shares of any class of Capital Stock of any Guarantor or
any of its Subsidiaries or any warrants, rights or options to
acquire any such shares, now or hereafter outstanding or (iii) make
any distributions, remuneration or payment (including any
Distributions) in violation of the terms of any applicable
subordination terms applicable to any Permitted Indebtedness.
Notwithstanding any other term of this Limited Guaranty, each
Guarantor and its Subsidiaries shall not, without the prior written
consent of the Agent, make any transfer of funds, transfer of
Property, or any distributions, remuneration or payment (including
any Distributions) to any Person, other than (x) payments of cash
made in accordance with an approved Annual Budget, Authorized
Expenditures, or as otherwise required by applicable Governmental
Authorities, (y) payments on account of the Guaranteed Indebtedness
in accordance with the terms hereof, and (z) to the extent not
otherwise prohibited by any Note Purchase Document, in the ordinary
course of business and not in connection with or on account of any
Indebtedness.

 

(d)           Investments.
Make any Investment after the Closing Date except Permitted
Investments.

 

 

 

 

 

(e)           Business,
Management, Mergers, etc. (i)
make any change in (A) board of directors or senior management of
either Guarantor, (B) the compensation arrangements of any key
officer or director of either Guarantor or any of their respective
Subsidiaries, or (C) the capital structure of the either Guarantor
or any of their respective Subsidiaries, (ii) make any material
change in the nature of the business presently conducted by either
Guarantor or any of their respective Subsidiaries; (iii)
make any payments on account of
bonuses or new retainers greater than $50,000 or establish or
create any trust accounts, (iv) change its name; (v) change
its jurisdiction of incorporation or its type of organization (that
is, from a corporation) or otherwise amend, modify or change any of
its Organic Documents, as in effect on the Closing Date;
(vi) merge, amalgamate or consolidate with or into, or convey,
transfer, lease or otherwise dispose of or alienate (whether in one
transaction or in a series of transactions) all or substantially
all of its assets (whether now owned or hereafter acquired) to, or
acquire all or substantially all of the assets of, any Person, or
dissolve or liquidate or terminate its legal existence, or (vii)
make any change in (A) its accounting policies or reporting
practices, except as required or permitted by GAAP, or (B) its
fiscal year.

 

(f)           Change
of Control. Cause, permit, or
suffer, directly or indirectly, any of the following (other than to
the extent caused by the exercise of the Aemetis Option or the
exercise of the Warrant):

 

(i) the
acquisition of ownership (other than by Persons who are Obligors as
of the Closing Date), directly or indirectly, as the
“beneficial owner” (as defined in Rules 13d−3 and
13d−5 under the Exchange Act) or owner of record, by any
“person” or “group” (as such terms are used
in Sections 13(d) and 14(d) of the Exchange Act) of Capital Stock
of the Parent Guarantor representing more than 50% of the aggregate
ordinary voting power represented by the issued and outstanding
Capital Stock of the Parent Guarantor (it being understood that to
the extent that any Capital Stock of the Parent Guarantor held by
any such person or group are disregarded for ordinary voting
purposes pursuant to the terms of the Parent Guarantor’s
Organic Documents, such Capital Stock shall not be included for
purposes of determining whether the threshold set forth in this
clause (i) has been met), (ii) occupation of a majority of the
seats (other than vacant seats) on the board of directors or other
governing body of the Parent Guarantor by Persons who were not (A)
a member of such board or other governing body as of the Closing
Date, (B) nominated by such board or other governing body after the
Closing Date, or (C) appointed or elected by at least a majority of
directors or other equivalent managers that were members of such
board or other governing body as of the Closing Date or nominated,
appointed or elected after the Closing Date pursuant to clause (B)
above or this clause (C), (iii) the Parent Guarantor is not,
directly or indirectly, the legal and beneficial holder of 100% of
the Capital Stock of AAPK, (iv) the equity owners of either
Guarantor approving any plan or proposal for the liquidation or
dissolution of the Guarantors, (v) the sale of all or substantially
all of the assets of the Guarantors, (vi) Eric McAfee ceases to be
the Chairman of the Parent or employed as the Chief Executive
Officer of the Parent Guarantor, (vii) Eric McAfee ceases to own,
directly or indirectly, at least 1 million shares of the Capital
Stock of the Parent Guarantor and (viii) the execution by the
either Guarantor or any of its Affiliates of any agreement, letter
of intent, commitment, arrangement or understanding with respect to
any proposed transaction or event or series of transactions or
events that, individually or in the aggregate, may reasonably be
expected to result in any of the events in clauses (i) through
(vii) above.

 

(g)           Disposition
of Property. Dispose or
alienate of any of its Property, whether now owned or hereafter
acquired, except dispositions of inventory made by either Guarantor
or their respective Subsidiaries in the ordinary course of its
business.

 

 

 

 

 

(h)       
  Affiliate
Transactions and Intercompany Loans. Enter into any transaction with any other
Obligor, Affiliate or Subsidiary or any of its directors or senior
or executive officers or senior management, or enter into or assume
any employment, consulting or analogous agreement or arrangement
with any of its directors or senior or executive officers or senior
management, or make any payment to any of its directors or senior
or executive officers or senior management; provided, however, that
Guarantors may enter into the AAPK Intercompany Note and the Parent
Intercompany Note, as applicable.

 

(i)         
  Bank
Accounts. Open any bank account
without the consent of the Agent.

 

(j)           Negative
Pledge Clauses. Enter into or
suffer to exist or become effective any agreement that prohibits or
limits the ability of either Guarantor or any Subsidiary to create,
incur, assume or suffer to exist any Lien upon any of its Property
or revenues, whether now owned or hereafter acquired, other than
this Limited Guaranty and the other Note Purchase
Documents.

 

(k)           Place
of Business. Change the location of its respective chief
executive office, principal place of business and registered office
from, or maintain Property in any location other than as disclosed
in Schedule
A(e).

 

(l)           Amendments
of Related Documents. Cancel or
terminate any Related Document or consent to or accept any
cancellation or termination thereof, amend, modify or change in any
manner any term or condition of any Related Document or give any
consent, waiver or approval thereunder, waive any default under or
any breach of any term or condition of any Related Document, agree
in any manner to any other amendment, modification or change of any
term or condition of any Related Document or take any other action
in connection with any Related Document that would impair the value
of the interest or rights of any Noteholder thereunder or that
would impair the rights or interests of the Agent or any
Noteholder.

 

(m)           Approved
Expenditure. Make any Approved
Expenditure or any other expenditure with respect to the
development of the Goodland Project or the Mortgaged Property prior
to the termination of the Redemption Period.

 

(n)           Financial
Covenants. Permit the ratio of:
(a) the sum of (i) the most recent Mortgaged Property Market Value,
and (ii) the most recent Riverbank Project Value to (b) the Note
Indebtedness, to be less than 2.00:1.00, tested as of the last day
of each fiscal quarter.

 

 

 

 

 

Schedule 1

 

Form of Guarantor Compliance Certificate

 

 

TO:  

Third
Eye Capital Corporation, as Agent

 

AND
TO: 

The
Noteholders

 

RE: 

Compliance Certificate for the [fiscal year / quarter]
ended ________________________ (the
“Statement
Date”)

 

The undersigned, being a Responsible Officer of
each Guarantor, refers to that certain Limited Guaranty, dated as
of June [__], 2017 (as amended, varied, supplemented, restated,
renewed or replaced at any time and from time to time, the
“Limited
Guaranty”; capitalized
terms used but not defined herein having the meanings set forth
therein), among AEMETIS, INC., as Parent Guarantor and Aemetis
Advanced Products Keyes, Inc. (“AAPK”
and collectively with the Parent Guarantor, the
“Guarantors”),
in favor of THIRD EYE CAPITAL CORPORATION as administrative agent
and collateral agent for and on behalf of the Noteholders (in such
aforesaid capacities, or any successor or assign in such
capacities, the “Agent”).

 

1. 

I
have read the provisions of the Limited Guaranty and other Note
Purchase Documents which are relevant to this Compliance
Certificate and have made or caused to be made such examinations or
investigations as are necessary to enable me to express an informed
opinion on the matters contained in this Compliance
Certificate.

 

2. 

The representations and warranties of the
Guarantors contained in Section 3
and Exhibit A
of the Limited Guaranty, or which are
contained in any document furnished at any time under or in
connection with the Note Purchase Documents, are true and correct
on and as of the date hereof, except to the extent that such
representations and warranties specifically refer to an earlier
date, in which case they are true and correct as of such earlier
date.

 

3. 

The Guarantors
hereby certify and warrant to you that the following is a true and
correct computation as at the date hereof of the ratio contained in
Section 2(l) of
Exhibit B to the
Limited Guaranty:

 

Minimum
Ratio The ratio of: (a) the sum
of (i) the most recent Mortgaged Property Market Value, and (ii)
the most recent Riverbank Project Value to (b) the Note
Indebtedness for the quarter ended on the Statement Date was
___:1.00 which was in compliance with the requirement under Section
2(l) of Exhibit B to the Limited Guaranty.

 

4. 

The Guarantors
further certify to you that no Event of Default has occurred or is
occurring.

 

5. 

The financial
statements delivered herewith pursuant to Sections (c)(1) or (2) of
Exhibit B to the Limited Guaranty, as applicable, for the period
ended as of the Statement Date fairly
present in all material respects the Guarantors’ financial condition as of the Statement
Date and Guarantors’
results of operations for the period then ended. There has not been
a material adverse change in the financial condition of
either Guarantor since the Statement
Date.

 

 

 

 

IN WITNESS WHEREOF, the Guarantors have
caused this Compliance Certificate to be executed and delivered by
its duly authorized officer on [DATE].

 

	
 

	
 

	

AEMETIS, INC.

 

 

By:
_______________________________

 

Title:
Chief Executive Officer

 

AEMETIS ADVANCED PRODUCTS KEYES, INC.

 

 

By:
_______________________________

 

Title:
Chief Executive OfficerBlueprint

 

Exhibit 10.2

 

NOTE PURCHASE AGREEMENT

 

This NOTE
PURCHASE AGREEMENT
(this “Agreement”) dated as of July 10, 2017, is made
among GOODLAND ADVANCED FUELS,
INC., a Delaware corporation
(the “Borrower”), THIRD EYE CAPITAL
CORPORATION, an Ontario
corporation, for itself and as administrative agent and collateral
agent for and on behalf of the Noteholders (in such aforesaid
capacities, or any successor or assign in such capacities, the
“Agent”), and the Noteholders made a party hereto
from time to time.

 

The
Borrower has requested that the Noteholders acquire the Notes, the
proceeds of which will be used by the Borrower for the purposes set
out in Section 5.1(i), and Noteholders are prepared to acquire
such Notes on and subject to the terms and conditions hereof.
Accordingly, in consideration of the mutual covenants and
agreements herein contained, the parties hereto agree as
follows:

 

SECTION 1.  
DEFINITIONS.

 

1.1           Definitions.
For the purposes of this Agreement, capitalized words and phrases
shall have the meanings set forth below:

 

“AAPK” means Aemetis Advanced Products Keyes,
Inc., a Delaware corporation.

 

“AAPK Intercompany
Note” means that certain
Revolving Promissory Note, dated as of the Closing Date, by AAPK
payable to the Borrower, as amended from time to time to the extent
permitted by, and in accordance with, the terms of this
Agreement.

 

“Acquisition” means the acquisition of the real property
located at 200 Energy Park Drive in Goodland, Kansas
pursuant to the Purchase
Documents.

 

“Aemetis
Option” means that
certain Option Agreement, dated as of the Closing Date, pursuant to
which Parent may or shall, subject to the terms thereof, purchase
all of the Capital Stock of the Borrower (other than the Warrant or
Capital Stock issuable upon the exercise of the Warrant), in a form
satisfactory to the Agent in its sole
discretion.

 

“Affiliate” means, with respect to any Person, another
Person that directly, or indirectly through one or more
intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.

 

“Agent” has the meaning ascribed thereto in the
preamble hereof.

 

“Agreement” means this Note Purchase Agreement,
including the Schedules and other attachments hereto, as amended,
varied, supplemented, restated, renewed or replaced at any time and
from time to time.

 

“Annual
Budget” has the meaning
ascribed thereto in Section 5.1(c)(5) hereof.

 

“Appraisal” means an appraisal of the Mortgaged
Property addressed to the Agent, in form and content acceptable to
the Agent, in its sole discretion, and conducted and prepared by an
appraiser acceptable to the Agent. Each such Appraisal shall comply
with all appraisal requirements of the Agent and any Governmental
Authority and shall reflect a fair market value for the Mortgaged
Property.

 

“Approved
Expenditures” means
expenditures to be incurred by Borrower or any Obligor in
connection with the development of the Goodland Project or the
Riverbank Project, in each case, satisfactory to the Agent in its
sole discretion.

 

“Bill of
Sale”
means that certain Sherriff’s Bill of Sale pursuant to which
title to such personal property located on the Mortgaged Property,
and intangible property related thereto, is conveyed to the
Borrower issued by the Sherriff of Sherman County, Kansas pursuant
to the Order Confirming the Sale.

 

 

 

 

 

“Borrower” has the meaning ascribed thereto in the
preamble hereof.

 

“Business Day” means a day other than a Saturday, Sunday
or other day on which banking institutions in the cities of New
York, New York and Toronto, Ontario are authorized or obligated by
law or executive order to close.

 

“Capital
Expenditures” means, with
respect to any Person for any period, any expenditure in respect of
the purchase or other acquisition of any fixed or capital asset.
For purposes of this definition, the purchase price of equipment
that is purchased, in a transaction permitted hereunder,
substantially concurrently with the trade-in of existing equipment
or with insurance proceeds shall be included in Capital
Expenditures only to the extent of the gross amount by which such
purchase price exceeds the credit granted by the seller of such
equipment for the equipment being traded in at such time, the
proceeds of such asset sale or the amount of such insurance
proceeds, as the case may be.

 

“Capital
Stock” means, with
respect to any Person, (a) any and all of the shares, interests,
rights, participations or other equivalents (however designated) of
capital stock of (or other ownership or profit interests in) such
Person, (b) any and all of the warrants, options or other rights
for the purchase or acquisition from such Person of shares of
capital stock of (or other ownership or profit interests in) such
Person, and (c) all of the securities convertible into or
exchangeable for shares of capital stock of (or other ownership or
profit interests in) such Person or warrants, rights or options for
the purchase or acquisition from such Person of such shares (or
such other interests), and all of the other ownership or profit
interests in such Person (including partnership, member or trust
interests therein), in the case of clauses (a) through (c) above,
whether voting or nonvoting, and whether or not such shares,
participations, warrants, options, rights or other interests are
outstanding on any date of determination.

 

“Cash
Equivalents” means
(a) marketable direct obligations issued or unconditionally
guaranteed by the United States or any agency or any State thereof
having maturities of not more than one (1) year from the date of
acquisition; (b) commercial paper maturing no more than one
(1) year after its creation and having the highest rating from
either Standard & Poor’s Ratings Group or Moody’s
Investors Service, Inc.; (c) certificates of deposit issued by any
bank with assets of at least $500,000,000 maturing no more than one
year from the date of investment therein; and (d) money market
funds at least ninety-five percent (95%) of the assets of which
constitute Cash Equivalents of the kinds described in clauses (a)
through (c) of this definition.

 

“Change of
Control” means (a) a
situation or event, other than one arising as a result of the
exercise of the Warrant by Agent, by which (i) prior to the
exercise of the Aemetis Option, the Equityholder is not, directly
or indirectly, the legal and beneficial holder of 100% of the
Capital Stock of the Borrower and (ii) following the exercise of
the Aemetis Option, the Parent is not, directly or indirectly, the
legal and beneficial holder of 100% of the Capital Stock of the
Borrower (excluding, in each case, the Agent’s acquisition of
Capital Stock of the Borrower in accordance with the terms of the
Warrant), (b) following the exercise of the Aemetis Option, Eric
McAfee ceases to be (i) the owner, directly or indirectly, of at
least one million shares of the Capital Stock of the Parent, (ii)
the sole director of the Borrower, and (iii) and the senior officer
of the Borrower, (c) the Borrower’s equity owners approve any
plan or proposal for the liquidation or dissolution of the
Borrower, (d) the sale of all or substantially all of the assets of
the Borrower, including, without limitation, the sale of the
Mortgaged Property and/or the Goodland Project, and (e) the
execution by the Borrower or any of its Affiliates of any
agreement, letter of intent, commitment, arrangement or
understanding with respect to any proposed transaction or event or
series of transactions or events that, individually or in the
aggregate, may reasonably be expected to result in any of the
events in clauses (a) through (d) above.

 

“Closing Date” means July 10, 2017.

 

“Collateral” means all Property of the Borrower and the
Guarantors, together with all of the “Collateral”,
“Mortgaged Property” and “Secured Property”
referred to in, and all other Property described in, any Security
Documents as security for any Note Indebtedness and all other
Property that now or hereafter secures (or is intended to or
purports to secure) any Note Indebtedness.

 

 

 

2

 

 

“Control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the
management or policies of a Person, whether through the ability to
exercise voting power, by contract or otherwise.
“Controlling” and “Controlled” have
meanings correlative thereto.

 

“Default” means any of the events or conditions
specified in Section 6, whether or not any requirement for the
giving of notice, the lapse of time, or both, has been
satisfied.

 

“Default Rate” means a rate of interest per annum equal
to the Interest Rate plus
six percent (6%) per
annum.

 

“Designated
Jurisdiction” means any
country or territory to the extent that such country or territory
itself is the subject of any comprehensive territorial
Sanctions.

 

“Disclosed
Substances” shall mean
any and all Hazardous Materials that are required by or created
during the production of advanced fuels and its associated cleaning
processes.

 

“Distributions”
means (a) any declaration or payment of a distribution, interest or
dividend on or with respect to any Capital Stock of any Person
(whether in cash, securities or other Property), (b) any
payment-in-kind or other form of payment of money on or with
respect to any Capital Stock of any Person; (c) any distribution,
advance or repayment of Indebtedness to a holder of Capital Stock
of any Person; or (d) any payment or other distribution (whether in
cash, securities or other Property), including any sinking fund or
similar deposit, on account of the purchase, redemption,
retirement, acquisition, cancellation or termination of any Capital
Stock of any Person, or on account of any return of capital to the
stockholders, partners or members of any
Person.

 

“Dollars” and “$” mean lawful money of the United States of
America.

 

“Drawdown” means a Revolving Advance to be made
pursuant to Article 2.

 

“Drawdown
Date” means the date
(being a Business Day) on which a Revolving Advance is
made.

 

“EB-5 Program” means the EB-5 program administered by the
U.S. Citizenship and Immigration Services, U.S. Department of
Homeland Security.

 

“EB-5 Program
Issuance” means an
offering by an Obligor or any of their Affiliates under the EB-5
Program in connection with, or related to, or to fund the Goodland
Project.

 

 “Equityholder” means Michael Peterson, an
individual.

 

“ERISA” means the Employee Retirement Income
Security Act of 1974, as amended, and the regulations
thereunder.

 

“Event of
Default” has the meaning
specified in Section 6.1 hereof.

 

“Exchange Act” means the Securities Exchange Act of 1934,
as amended.

 

"FATCA" means Sections 1471 through 1474
of the Internal Revenue Code, as in effect on the date hereof (or
any amended or successor version that is substantively comparable
and not materially more onerous to comply with), any current or
future regulations or official interpretations thereof and any
agreements entered into pursuant to Section 1471(b)(1) of the
Internal Revenue Code.

 

“Fee Letter” means the fee letter agreement between the
Agent and the Borrower dated as of the Closing
Date.

 

 

 

3

 

 

 “GAAP” means generally accepted accounting
principles set forth in the opinions and pronouncements of the
Accounting Principles Board of the American Institute of Certified
Public Accountants and statements and pronouncements of the
Financial Accounting Standards Board or in such other statements by
such other Person as may be approved by a significant segment of
the accounting profession in the United States, which are
applicable to the circumstances as of the date of
determination.

 

“General Security
Agreement” means each
general security agreement executed by an Obligor in favor of the
Agent granting a first priority Lien to the Agent, for the benefit
of the Noteholders, to secure the Note
Indebtedness.

 

“Goodland Project” shall mean the
construction, building, ownership, operation and maintenance of an
ethanol production facility located at 200 Energy Park Drive in
Goodland, Kansas to be acquired by the Borrower on the Closing Date
pursuant to the Purchase Documents.

 

“Governmental
Authority” means any
nation or government, any state, province, territory or other
political subdivision thereof (whether federal, state, local or
otherwise), any agency, authority, instrumentality, regulatory
body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers
or functions of or pertaining to government (including any
supra-national bodies), any securities exchange and any
self-regulatory organization.

 

“Guaranty” means that certain Limited Guaranty, dated
as of the Closing Date, by the Parent and AAPK in favor of the
Agent, that guarantees the Note Indebtedness other than the Term
Loan (unless and until the recourse pursuant to such Limited
Guaranty becomes unlimited pursuant to the terms
thereof).

 

 “Guarantor” means the Parent, AAPK and any other
Person who guarantees payment or performance of any of the Note
Indebtedness.

 

“Indebtedness” means, as to any Person at a particular
time, without duplication, all of the following, whether or not
included as indebtedness or liabilities in accordance with
GAAP:

 

(a)           all
obligations of such Person for borrowed money and all obligations
of such Person evidenced by bonds, debentures, notes, loan
agreements or other similar instruments;

 

(b)           the
maximum amount of all obligations of such Person in respect of
letters of credit (including standby and commercial),
bankers’ acceptances, bank guaranties, letters of guaranty,
surety bonds, performance bonds and similar instruments issued or
created by or for the account of such Person, whether such
obligations are contingent or otherwise;

 

(c)           all
obligations of such Person to pay the deferred purchase price of
property or services (other than (i) trade accounts payable in the
ordinary course of business, (ii) any earn-out or royalty
obligation until such obligation appears in the liabilities section
of the balance sheet of such Person, and (iii) liabilities
associated with any prepayments and deposits);

 

(d)           indebtedness
(excluding prepaid interest thereon) secured by (or for which the
holder of such indebtedness has an existing right, contingent or
otherwise, to be secured by) a Lien on property owned or being
purchased by such Person (including indebtedness arising under any
mortgage, industrial revenue bond, industrial development bond and
similar financings), whether or not such indebtedness shall have
been assumed by such Person or is limited in
recourse;

 

(e)           all
capitalized amounts under capital leases;

 

(f)           all
obligations of such Person under conditional sale or other title
retention agreements relating to property acquired by such Person;
and

 

(g)           all
guarantees by such Person in respect of any Indebtedness of any
other Person.

 

 

 

4

 

 

For
all purposes hereof, the Indebtedness of any Person shall include
the Indebtedness of any partnership, joint venture or other entity
to the extent such Person is liable therefor as a result of such
Person’s ownership interest in or other relationship with
such entity, except to the extent such Indebtedness is expressly
made non-recourse to such Person. The amount of Indebtedness of any
Person for purposes of clause (d) shall be deemed to be equal to
the lesser of (x) the aggregate unpaid amount of such Indebtedness
and (y) the fair market value of the property of such Person that
is encumbered thereby as determined by such Person in good
faith.

 

“Initial Revolving
Advance” has the meaning
set forth in Section 2.3(a) hereof.

 

“Intercreditor
Agreements” means,
collectively, (a) the Parent Intercreditor Agreement, and (b) any
other intercreditor or subordination agreement setting forth the
relative creditor rights of the Agent and the Noteholders, on the
one hand, and the other creditors party thereto from time to time,
on the other hand, in form and substance satisfactory to the
Agent.

 

“Interest Payment
Date” has the meaning
specified in Section 2.5(c) hereof.

 

“Interest
Rate” means (a) with
respect to the Term Loan, a rate of interest per annum equal to ten
percent (10%), and (b) with respect to the Revolving Advances, a
rate of interest per annum equal to the greater of (i) Prime Rate
plus 7.75% and (ii) twelve percent (12%).

 

“Internal Revenue
Code” means the U.S.
Internal Revenue Code of 1986, as amended from time to time, and
the regulations promulgated and rulings issued
thereunder.

 

“Investment” means any beneficial ownership interest in
any Person (including stock, partnership interest or other
securities or other equity interests), and any loan, advance or
capital contribution to any Person, or the acquisition of all or
substantially all of the assets or properties of another
Person.

 

 “Lien” as applied to the Property of any Person
means: (a) any mortgage, deed to secure debt, deed of trust, lien,
hypothec, pledge, charge, lease constituting a capital lease
obligation, conditional sale or other title retention agreement (or
other lease having a substantially similar economic effect), or
other security interest, hypothec, privilege, priority, security
title, deposit arrangement or encumbrance of any kind in respect of
any Property of such Person, or upon the income or profits
therefrom, (b) any arrangement, express or implied, under which any
Property of such Person is transferred, sequestered or otherwise
identified for the purpose of subjecting the same to the payment of
Indebtedness or performance of any other obligation in priority to
the payment of the general, unsecured creditors of such Person, (c)
the filing of, or any agreement to give, any financing statement,
publication or registration (or any of its equivalent in any
jurisdiction) in respect of any of the foregoing (including any
such precautionary filings), and (d) any other lien, charge,
privilege, secured claim, title retention, garnishment right,
deemed trust, encumbrance, hypothec, servitude, right-of-way,
easement, privilege, priority or other right affecting Property,
choate or inchoate, arising by any statute, act of law of any
jurisdiction at common law or in equity or by
agreement.

 

 “Loan” or “Loans” is the Term Loan, any Revolving Advance,
including the Initial Revolving Advance, and any other extension of
credit by the Agent or Noteholders for the Borrower’s
benefit.

 

“Material Adverse
Effect” means any
condition or circumstance which has had, or could reasonably be
expected to have, a material adverse effect on (i) the Property,
nature of assets, business, results of operations, prospects,
performance, liabilities or condition (financial or otherwise) of
any Obligor; (ii) the Riverbank Project or Goodland Project, (iii)
the rights or remedies of the Agent or the Noteholders under the
Note Purchase Documents, (iv) the ability of any Obligor to perform
its obligations under the Note Purchase Documents or otherwise in
connection with the Loans, or (v) the validity or enforceability of
any of the Note Purchase Documents.

 

 

 

5

 

 

“Maturity
Date” means July [__],
2019; provided that the Maturity Date may be extended at the option
of the Borrower for up to two additional one-year periods upon
written notice to the Agent of the Borrower’s election to
extend not earlier than 60 days, and not later than 30 days, prior
to July [__], 2019 or July [__], 2020 (as applicable), so long as
at the time of the request for an extension (a) no Default or Event
of Default has occurred and is continuing under any Note Purchase
Document, and (b) the Borrower pays to the Agent for the benefit of
the Noteholders the Renewal Fee (as defined in the Fee Letter) for
such extension.

 

“Mortgage” means the Mortgage, dated as of Closing
Date, executed by the Borrower with respect to the Mortgaged
Property to the Agent for the benefit of the Noteholders pursuant
to which Borrower grants a first and prior mortgage to the Agent
for the benefit of the Noteholders, as beneficiary, covering the
Mortgaged Property to secure the Note
Indebtedness.

 

“Mortgaged
Property” is as set forth
in the Mortgage.

 

“Mortgaged Property Market
Value” means the
“as is” fair market value of the Mortgaged Property as
determined semi-annually by Natwick Associates or such other
independent valuation expert acceptable to the
Agent.

 

“Noteholders” means the Persons listed on the signature
pages hereof as a Noteholder, and shall include all successors and
permitted assigns of such Persons.

 

“Note Purchase
Documents” means this
Agreement, the Notes, the Warrant, the Security Documents, the Fee
Letter, and all other documents, promissory notes, instruments and
agreements executed and delivered pursuant to or in connection with
this Agreement, together with any and all extensions, renewals,
amendments and modifications of any of the
foregoing.

 

“Note
Indebtedness” means the
unpaid principal of and interest on the Loans and all other
obligations and liabilities of the Obligors to the Agent or to any
Noteholder, whether direct or indirect, absolute or contingent, due
or to become due, or now existing or hereafter incurred, which may
arise under, out of, or in connection with, this Agreement, any
other Note Purchase Document or any other document made, delivered
or given in connection herewith or therewith, whether on account of
principal, interest, reimbursement obligations, fees, indemnities,
costs, expenses (including all fees, charges and disbursements of
counsel to the Agent or to any Noteholder that are required to be
paid by any Obligor pursuant hereto) or otherwise (and including
interest, fees or other amounts accruing after the maturity of the
Loans and interest, fees and other amounts accruing after the
filing of any petition in bankruptcy, or the commencement of any
insolvency, reorganization or like proceeding, relating to any
Obligor, whether or not a claim for any such post-filing or
post-petition interest, fees or other amount is allowed in such
proceeding).

 

“Notes” means the Term Notes and Revolving Notes
issued to the Noteholders.

 

“Obligors” means the collective reference to the
Borrower and the Guarantors, and “Obligor” means any one of them.

 

“Order Confirming the
Sale” means the Order
Confirming the Sale of Real Property and Personal Property issued
by The Fifteenth Judicial District, District Court, Sherman County,
Kansas in Third Eye Capital Corporation, as Administrative Agent
for certain lenders v. New Goodland Energy Center, LLC, et al (Case
No. 13-CV-18).

 

“Organic
Documents” means, with
respect to any Person, its charter, certificate or articles of
incorporation, bylaws, articles of organization, limited liability
agreement, operating agreement, members agreement, shareholders
agreement, partnership agreement, certificate of partnership,
certificate of formation, voting trust agreement, or similar
agreement or instrument governing the formation or operation of
such Person and/or the affairs and conduct of such Person’s
business.

 

 

 

6

 

 

“Parent” means Aemetis, Inc., a Nevada
corporation.

 

“Parent Intercompany
Note” means that certain
Revolving Promissory Note, dated as of the Closing Date, by the
Parent payable to the Borrower, as amended from time to the extent
permitted by, and in accordance with, the terms of this
Agreement.

 

“Parent Intercreditor
Agreement” means the
Intercreditor Agreement dated as of the Closing Date by and between
(i) Third Eye Capital Corporation, in its capacity as agent for the
Noteholders under the terms of that certain Amended and Restated
Note Purchase Agreement dated as of July 6, 2012 by and among
Aemetis Advanced Fuels Keyes, Inc., Keyes Facility Acquisition
Corp., the Parent and the other parties thereto and (ii) the Agent
(in its capacity as agent for the Noteholders under the terms of
this Agreement).

 

“Perfection
Certificate” means the
Perfection Certificate of the Borrower and Guarantors delivered to
the Agent on the Closing Date.

 

“Permitted
Indebtedness” means: (a)
Borrower’s Indebtedness to the Noteholders under this
Agreement and the other Note Purchase Documents; (b) Indebtedness
existing on the Closing Date and shown on the Perfection
Certificate; (c) unsecured Indebtedness to trade creditors incurred
in the ordinary course of business, except for trade payables
overdue by more than 120 days; (d) Indebtedness incurred as a
result of endorsing negotiable instruments received in the ordinary
course of business; (e) Indebtedness consisting of contingent
reimbursement obligations in connection with letters of credit that
are secured by cash or cash equivalents and issued on behalf of the
Borrower or its Subsidiary in an aggregate amount not to exceed
$50,000 at any time outstanding; and (f) extensions, refinancings,
modifications, amendments and restatements of any items of
Permitted Indebtedness (a) through (e) above, provided that the
principal amount thereof is not increased or the terms thereof are
not modified to impose more burdensome terms upon Borrower or its
Subsidiary, as the case may be.

 

“Permitted
Investments” means: (a)
Investments (including, without limitation, Subsidiaries) existing
on the Closing Date and shown on the Perfection Certificate; (b)
Investments consisting of Cash Equivalents; (c) Investments
consisting of deposit accounts in which the Agent has a perfected
security interest; (d) Investments by the Borrower in Subsidiaries
not to exceed $25,000 in the aggregate in any fiscal year of the
Borrower; (e) Investments, in an aggregate amount not to exceed
$25,000 in any fiscal year of the Borrower, consisting of travel
advances and employee relocation loans and other employee loans and
advances in the ordinary course of business; (f) Investments
(including debt obligations) received in connection with the
bankruptcy or reorganization of customers or suppliers and in
settlement of delinquent obligations of, and other disputes with,
customers or suppliers arising in the ordinary course of business;
(g) Investments consisting of notes receivable of, or prepaid
royalties and other credit extensions, to customers and suppliers
who are not Affiliates, in the ordinary course of business and (h)
Investments consisting of amounts receivable and credit extensions
under the Revolving Intercompany Note.

 

“Person” means an individual, partnership,
corporation (including a business trust), limited liability
company, joint stock company, trust, unincorporated association,
joint venture or other entity, or a Governmental
Authority.

 

“Pledge
Agreement” means (a) that
certain Pledge Agreement, dated as of the Closing Date, between the
Equityholder, as Pledgor, and the Agent, relating to a pledge of
100% of the Capital Stock of the Borrower and (b) that certain
Pledge Agreement, dated as of the Closing Date, between Parent as
Pledgor and the Agent, relating to a pledge of 100% of the Capital
Stock of the Borrower effective upon the exercise of the Aemetis
Option.

 

“Pledgor” means the Parent or the Equityholder, as
pledgor, under the Pledge Agreement, and/or any other Person that
pledges any Capital Stock of an Obligor from time to time after the
Closing Date to secure any of the Note Indebtedness, in any such
case, unless and until any such Person has been released from such
pledge in accordance with the terms of the Note Purchase
Documents.

 

 

 

7

 

 

“Prime Rate” means the per annum rate which Citibank
N.A. publicly announces from time to time to be its prime lending
rate, as in effect from time to time.

 

“Property” means any interest in any kind of property
or asset, whether real, personal or mixed, movable or immovable,
tangible or intangible, including cash, securities, accounts and
contract rights.

 

“Purchase
Documents” means,
collectively, the Bill of Sale, the Sherriff’s Deed and any
ancillary agreements related thereto.

 

“Related
Documents” means the
Purchase Documents, the Aemetis Option and the Revolving
Intercompany Note.

 

“Related
Parties” means, with
respect to any Person, such Person’s Affiliates and the
partners, directors, officers, employees, agents, trustees,
administrators, managers, advisors, members, fund managers and
representatives of such Person and of such Person’s
Affiliates.

 

“Request for Revolving
Advance” means a notice substantially in the form set out
in Schedule
1.1(b), and satisfactory to the
Noteholders.

 

“Requirement of
Law” means as to any
Person, its Organic Documents, and any law, treaty, rule or
regulation or determination of an arbitrator or a court or other
Governmental Authority, in each case applicable to or binding upon
such Person or any of its Property or to which such Person or any
of its Property is subject.

 

“Responsible
Officer” of the Borrower
means its chief executive officer, president, chief financial
officer and any other principal accounting officer of the
Borrower.

 

“Revolving
Advance” and
“Revolving
Advances” means a cash
advance or cash advances under the Revolving Line and includes the
Initial Revolving Advance.

 

“Revolving Intercompany
Note” means,
collectively, the Parent Intercompany Note and the AAPK
Intercompany Note.

 

“Revolving Line”
means a Revolving Advance or Revolving
Advances of up to Ten Million Dollars ($10,000,000.00) of principal
in the aggregate.

 

“Revolving
Line Commitment” means the principal amount made available by each
Noteholder to the Borrower in respect of Revolving Advances
pursuant to the terms hereof, in an amount up to the principal
amount set forth on Schedule
1.1(a).

 

“Revolving Line Commitment
Percentage” is as set forth on Schedule
1.1(a).

 

“Revolving Note” has the meaning set forth in Section 2.2
hereof.

 

“Riverbank
Lease” means that certain
Lease Agreement relating to the Riverbank Industrial Complex, dated
February 7, 2017, between the City of Riverbank Local Redevelopment
Authority as the landlord, and AAPK as the
tenant.

 

“Riverbank
Project” shall mean the
construction, building, ownership, operation and maintenance of an
ethanol production facility located at 5300 Claus Rd, in Riverbank,
California operated by AAPK and its Affiliates.

 

“Riverbank Project
Value” means the value of
the Riverbank Project determined on a cash-flow basis as determined
semi-annually by an independent valuation expert acceptable to the
Agent.

 

 

 

8

 

 

“Sanctioned
Entity” means any of (a)
a Designated Jurisdiction or a government of a Designated
Jurisdiction, (b) an agency of the government of a Designated
Jurisdiction, (c) an organization directly or indirectly controlled
by a Designated Jurisdiction or its government, (d) a Person
resident in or determined to be resident in a Designated
Jurisdiction, or (e) a Person named as a “specially
designated national and blocked person” on the most current
list published by OFAC at its official website or any replacement
website or other replacement official publication of such
list.

 

“Sanctions” means any international economic sanctions
administered or enforced by the U.S. Department of Treasury’s
Office of Foreign Asset Control, the U.S. Department of State, the
U.S. Department of Commerce, the United Nations Security Council,
the European Union or Her Majesty’s Treasury or other
relevant sanctions authority.

 

“Security
Documents” means the
collective reference to each General Security Agreement, the Pledge
Agreement, each Guaranty, any Intercreditor Agreements, the
Mortgage, and all other mortgages, collateral assignments, security
agreements, pledge agreements, account control agreements or other
agreements, instruments or documents that create, perfect and/or
purports to create or perfect a Lien on any Property of any Person
to secure the Note Indebtedness of any Obligor.

 

“Sherriff’s
Deed” means that certain
Sherriff’s Deed issued by the Sherriff of Sherman County,
Kansas pursuant to the Order Confirming the
Sale.

 

“Subsidiary” of a Person means a corporation,
partnership, joint venture, limited liability company or other
business entity of which a majority of the shares of securities or
other interests having ordinary voting power for the election of
directors or other governing body (other than securities or
interests having such power only by reason of the happening of a
contingency) are at the time beneficially owned, directly, or
indirectly through one or more intermediaries, or both, by such
Person. Unless otherwise specified, all references herein to a
“Subsidiary” or to “Subsidiaries” shall
refer to a Subsidiary or Subsidiaries of the
Borrower.

 

“Survey” means a survey of the Mortgaged Property
and improvements, in form and substance acceptable to the Agent in
its sole discretion.

 

“Taxes” has the meaning set forth in Section 2.10
hereof.

 

“Term” means the period commencing on the Closing
Date and ending on the Maturity Date.

 

 “Term Loan” has the meaning set forth in Section 2.1
hereof.

 

“Term Loan
Commitment” means the principal amount made available by each
Noteholder to the Borrower in respect of the Term Loan pursuant to
the terms hereof, in an amount up to the principal amount set forth
on Schedule
1.1(a).

 

“Term Loan Commitment
Percentage” is as set forth on Schedule
1.1(a).

 

“Term Note” has the meaning set forth in Section 2.1
hereof.

 

“Title
Company” means Chicago
Title Insurance Company.

 

“Title Policy” means a mortgagee policy of title
insurance issued by Title Company, on a coinsurance or reinsurance
basis (with direct access endorsement or rights) as required by the
Agent, in an amount acceptable to the Agent, insuring that the
Mortgage constitutes a valid first and prior Lien covering the
Mortgaged Property and improvements subject only to those
exceptions which the Agent may approve in writing and containing
such endorsements as the Agent may require.

 

 

 

9

 

 

“USDA
Financing” means one or
more financings by an Obligor or any of their Affiliates supported
by the U.S. Department of Agriculture, in each case, related to the
Goodland Project.

 

“Warrant” means that certain Warrant to Purchase
Common Stock dated as of the Closing Date issued by the Borrower in
favor of the Agent.

 

1.2           Accounting
Terms. Where the character or
amount of any asset or liability or item of revenue or expense is
required to be determined, or any consolidation or other accounting
computation is required to be made, for the purpose of this
Agreement, such determination or calculation will, to the extent
applicable and except as otherwise specified herein or as otherwise
agreed in writing by the parties, be made in accordance with GAAP
consistently applied and maintained throughout the period
indicated.

 

1.3           Terms
Generally. The definitions of
terms herein shall apply equally to the singular and plural forms
of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter
forms. The words “include,” “includes” and
“including” shall be deemed to be followed by the
phrase “without limitation.” In the computation of
periods of time from a specified date to a later specified date,
the word “from” means “from and including”;
the words “to” and “until” each mean
“to but excluding”; and the word “through”
means “to and including.” The word “will”
shall be construed to have the same meaning and effect as the word
“shall.” Unless the context requires otherwise (a) any
definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement,
instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on
such amendments, supplements or modifications set forth herein),
(b) any reference herein to any Person shall be construed to
include such Person’s successors and assigns, (c) the words
“herein,” “hereof” and
“hereunder,” and words of similar import, shall be
construed to refer to this Agreement in its entirety and not to any
particular provision hereof, (d) all references herein to Sections
and Schedules shall be construed to refer to Sections of, and
Schedules to, this Agreement, (e) any reference to any law shall
include all statutory and regulatory provisions consolidating,
amending, replacing or interpreting such law and any reference to
any law or regulation shall, unless otherwise specified, refer to
such law, statute or regulation as amended, modified or
supplemented from time to time and (f) the words
“asset” and “property” shall be construed
to have the same meaning and effect as the defined term
“Property.”

 

1.4           Times
of Day. Unless otherwise
specified, all references herein or in any other Note Purchase
Document to times of day shall be references to Toronto, Ontario
time.

 

SECTION 2.  
TERMS OF LOANS AND
REPAYMENT.

 

2.1           Term
Loan.  Subject to the
terms and conditions of this Agreement, and relying on each of the
representations and warranties set forth in each of the Note
Purchase Documents, the Noteholders agree, individually as joint
obligors, and not as joint and several obligors, to make a single
term loan (the “Term Loan”) to the Borrower on the Closing Date in an
aggregate amount of Fifteen Million Dollars ($15,000,000) according
to each Noteholder’s Term Loan Commitment and such
Indebtedness shall be evidenced by secured promissory notes issued
to each Noteholder (each, a “Term Note”). After repayment, the Term Loan may not
be re-borrowed.

 

2.2           Revolving
Line.

 

(a)           Availability.
Subject to the terms and conditions of this Agreement, and relying
on each of the representations and warranties set forth in each of
the Note Purchase Documents, the Noteholders agree, individually as
joint obligors, and not as joint and several obligors, to lend to
Borrower from time to time prior to the Maturity Date, according to
each Noteholder’s pro rata share of the Revolving Line (based
upon the respective Revolving Line Commitment Percentage of each
Noteholder), Revolving Advances not to exceed the Revolving Line
and such Indebtedness shall be evidenced by secured promissory
notes issued to each Noteholder (each, a “Revolving
Note”). Amounts borrowed
under the Revolving Line may be repaid and, prior to the Maturity
Date, re-borrowed, subject to the applicable terms and conditions
of this Agreement.

 

 

 

10

 

 

(b)           Termination;
Repayment. The Revolving Line
terminates on the Maturity Date and the principal amount of all
Revolving Advances, the unpaid interest thereon, and all other Note
Indebtedness relating to the Revolving Line shall be immediately
due and payable.

 

(c)           Overadvances.
If, at any time, the outstanding principal amount of the Revolving
Advances exceeds the Revolving Line, the Borrower shall immediately
pay to the Agent for the ratable benefit of the Noteholders the
amount of such excess (such excess, the “Overadvance”). Without limiting the Borrower’s
obligation to repay to the Agent any Overadvance, the Borrower
agrees to pay to the Agent for the ratable benefit of the
Noteholders interest on the outstanding amount of any Overadvance,
on demand, at the Default Rate.

 

2.3           Revolving
Advances.

 

(a)           The
Borrower shall provide Agent with a Request for Revolving Advance
not later than 2:00 p.m., Toronto time, at least seven (7) Business
Days before the date of the proposed Drawdown, unless otherwise
agreed to in advance by the Agent and the Noteholders; provided
that, solely with respect to the Revolving Advances proposed to be
made on the Closing Date (the “Initial Revolving
Advance”), the parties
hereto agree that the related Request for the Initial Revolving
Advance may be made on the Closing Date. Each Drawdown of a
Revolving Advance when made shall be in a minimum amount of
$200,000, plus any increment of $20,000 in excess thereof, unless
otherwise agreed to in advance by the Agent.

 

(b)           The
Agent will be entitled to, and is hereby authorized and directed by
the Borrower to, retain from the proceeds of all Revolving Advances
such interest, fees, costs, expenses or other amounts due under the
Note Purchase Documents to the Agent and the Noteholders (including
any and all charges, outside counsel’s fees, other fees, etc.
incurred by the Agent and the Noteholders) and unpaid by the
Borrower on the date that a Revolving Advance is made.
Notwithstanding any such retention of fees or other amounts owing
to the Agent and the Noteholders, the Borrower will be deemed in
each case to have received a Revolving Advance in the amount so
made available by the Agent and without regard to the retention by
the Agent for such interest, fees, costs, expenses or other
amounts.

 

(c)           On
or prior to the Closing Date, and thereafter prior to any change
with respect to any of the information contained in the following
clauses (i) and (ii), the Borrower shall deliver to the Agent a
writing setting forth (i) the account(s) to which the Agent is
authorized to transfer the proceeds of the Revolving Advances
requested by the Borrower, which account or accounts shall be
satisfactory to the Agent, and (ii) the names of its
Responsible Officers authorized to submit Requests for Revolving
Advances, and shall provide the Agent with a specimen signature of
each such officer. The Agent shall be entitled to rely conclusively
on such officer’s authority to submit Requests for Revolving
Advances on behalf of the Borrower, the proceeds of which are to be
transferred to any of the accounts specified by the Borrower
pursuant to the immediately preceding sentence, until the Agent
receives written notice to the contrary. The Agent shall have no
duty to verify the identity of any individual representing himself
as one of the officers authorized by the Borrower to make such
requests on its behalf.

 

(d)           The
Agent shall not incur any liability to the Borrower as a result of
acting upon any notice referred to in this Section 2.3, which
notice the Agent believes in good faith to have been given by an
officer duly authorized by the Borrower to request Revolving
Advances on its behalf or for otherwise acting in good faith under
this Section 2.3, and the crediting of Revolving Advances to
the Borrower’s deposit account, or transmittal to such Person
as the Borrower shall direct (including, without limitation,
pursuant to Section 2.3(c)), shall conclusively establish the
obligation of the Borrower to repay such Revolving Advances as
provided herein.

 

(e)           Except
with the consent of the Agent, any Request for Revolving Advance
shall be irrevocable and the Borrower shall be bound to borrow the
funds requested therein in accordance
therewith.

 

 

 

11

 

 

(f)           Promptly
after receipt of a Request for Revolving Advance pursuant to
Section 2.3(a), the Agent shall notify the Noteholders by
telecopy, electronic mail, telephone or other similar form of
transmission of the requested Revolving Advance. Each Noteholder
shall make the amount of such Noteholder’s pro rata share of
the requested Revolving Advance (based upon the Revolving
Commitment Percentage of such Noteholder) available to the Agent in
immediately available funds, to such account of the Agent as the
Agent shall designate, not later than 12:00 p.m. (Toronto time) on
the Drawdown Date applicable thereto. After the Agent’s
receipt of the proceeds of such Revolving Advance, the Agent shall
make the proceeds of such Revolving Advance available to the
Borrower on the applicable Drawdown Date by transferring same day
funds equal to the proceeds of such Revolving Advance received by
the Agent to the account or accounts of the Borrower, designated in
writing by the Borrower and acceptable to the
Agent.

 

2.4           Repayment.

 

(a)           The
Borrower unconditionally promises to pay to the Agent for the
ratable benefit of each Noteholder, the outstanding principal
amount of the Term Loan and all Revolving Advances, together with
all accrued but then unpaid interest thereon, and all other Note
Indebtedness as and when due in accordance with this Agreement. All
unpaid principal and accrued but unpaid interest with respect to
the Note Indebtedness is due and payable in full on the Maturity
Date. If the Loans are accelerated following the occurrence of an
Event of Default, the Borrower shall immediately pay to the Agent
for the ratable benefit of the Noteholders the outstanding
principal amount of the Term Loan and all Revolving Advances,
together with all accrued but then unpaid interest thereon, and all
other Note Indebtedness.

 

(b)           The
Borrower shall also be required to, and hereby agrees to, make the
following mandatory prepayments on the Term Loan and any Revolving
Advances: 100% of the net cash proceeds received by the Borrower or
other Obligor or their Affiliates, as applicable from (i) the EB-5
Program Issuance, (ii) any USDA Financing, (iii) any sales of the
Borrower’s Capital Stock, (iv) any Indebtedness incurred or
issued by Borrower (that is not permitted by this Agreement), (v)
repayments made to the Borrower under the Revolving Intercompany
Note to the extent such amounts are not immediately re-borrowed in
accordance with the terms of the Revolving Intercompany Note, (vi)
the occurrence of a Change of Control (unless such Change of
Control is caused by the exercise of the Aemetis Option or the
exercise of the Warrant), (vii) the receipt of any tax refund,
reimbursement or other payment from any Governmental Authority, and
(viii) any sale, royalty agreement or other disposition of assets
by the Borrower outside of the ordinary course of business or
pursuant to a transaction that is not permitted pursuant to this
Agreement (including as a result of any condemnation, casualty or
similar event) (other than dispositions to another Obligor, to the
extent permitted hereby); provided that, in the case of this
subclause (ix), the Agent (at the Borrower’s request) may in
its sole discretion authorize the Obligors to reinvest all or a
portion of such proceeds, and any such reinvestment shall be
permitted on the terms and conditions set forth by the Agent so
long as no Default or Event of Default occurs.

 

 (c)           Under
this Agreement, amounts repaid or prepaid by the Borrower in
respect of the Term Loan may not be
re-borrowed.

 

2.5           Interest.

 

(a)            The
outstanding principal of the Loans and all other Note Indebtedness
(including, to the extent permitted by law, on interest thereon not
paid when due) from the date made or incurred until indefeasibly
paid in full in cash shall bear interest at a per annum rate equal
to the Interest Rate, but not to exceed the Maximum Interest Rate
described in Section 2.11 hereof.

 

(b)           If
an Event of Default shall have occurred and be continuing, all
outstanding principal of and, to the fullest extent permitted by
law, all past due interest on the Loans and any other Note
Indebtedness owing under the Note Purchase Documents shall bear
interest at a rate per annum equal to the Default Rate. Interest
payable at the Default Rate shall be payable from time to time on
demand.

 

(c)           Commencing
on August 1, 2017 and on the first Business Day of each calendar
month thereafter (each such date, an “Interest Payment
Date”), Borrower shall
make monthly payments of interest, in arrears for the preceding
calendar month (or from the Closing Date in the case of the
interest payment due on July 1, 2017); provided, however, that
interest accruing on the Term Loan for the first eighteen (18)
Interest Payment Dates following the Closing Date shall have been
paid in advance in accordance with Section
3.1(q).

 

 

 

12

 

 

2.6           Prepayments
and Voluntary Termination.

 

(a)           Voluntary
Prepayments of the Loans. At any time after December 31,
2017, the Borrower may, upon written
notice to Agent, prepay any Loan in whole or in part without
premium or penalty, but with accrued and unpaid interest to the
date of such prepayment on the amount prepaid. Any notice of
optional prepayment for the Term Loan is irrevocable and shall be
effective only if received by the Agent by 3:00 p.m. (Toronto time)
on the date that is at least ninety (90) days prior to the proposed
prepayment, unless otherwise agreed to in advance by the Agent. Any
notice of optional prepayment shall specify the amount to be
prepaid and the date of prepayment. Notwithstanding the
foregoing, any optional prepayment of a Revolving Advance may be
made at any time without written notice.

 

(b)           Voluntary
Termination or Commitments. At any time after December 31,
2017, the Borrower may, upon written notice to Agent, terminate the
Revolving Line Commitments and prepay all outstanding Note
Indebtedness. Any notice of
termination is irrevocable and shall be effective only if received
by the Agent by 3:00 p.m. (Toronto time) on the date that is ninety
(90) days prior to the proposed termination, unless otherwise
agreed to in advance by the Agent.

 

2.7           Increased
Costs. If, due to either
(i) the introduction of or any change (including, without
limitation, any change by way of imposition or increase of reserve
requirements but excluding the imposition of, or any change in the
rate of, any income tax payable by the Agent or any Noteholder) in
or in the interpretation of any law or regulation or (ii) the
compliance by the Agent or any Noteholder with any guideline or
request from any central bank or other Governmental Authority
(whether or not having the force of law), there shall be any
increase in the cost to the Agent of funding or maintaining the
Loans, then the Borrower shall from time to time, upon demand by
the Agent, pay to the Agent and/or the Noteholders additional
amounts sufficient to indemnify the Agent and the Noteholders
against such increased cost. A certificate signed by a Responsible
Officer of Borrower as to the amount of such increased cost along
with the reasons behind the increased cost, submitted to the
Borrower by the Agent, shall be conclusive and binding for all
purposes, absent manifest error.

 

2.8           Illegality.
Notwithstanding any other provision of this Agreement, if, in the
reasonable opinion of the Agent, it becomes unlawful for a
Noteholder to make or maintain the Loans, then such Noteholder will
promptly so notify the Borrower and the other Noteholders and the
Borrower will promptly prepay the Loans due such Noteholder in full
together with accrued interest thereon and all other amounts then
due to such Noteholder and such Noteholder will have no further
obligation to make or maintain the Loans.

 

2.9           Payments
and Computations.

 

(a)           The
Borrower shall make each payment hereunder not later than 3:00 p.m.
(Toronto, Ontario time) on the day when due in Dollars to the Agent
at its address referred to in Section 8.2 or at such other location
as may be specified by the Agent to the Borrower, in immediately
available funds without setoff, compensation, counterclaim,
recoupment or other defense. Any payments received after 3:00 p.m.
(Toronto time) will be considered for all purposes as having been
made on the next following Business Day.

 

(b)           The
Agent will maintain in accordance with its customary practice one
or more account registers evidencing the Note Indebtedness of the
Obligors to the Agent and Noteholders hereunder. Such account
register(s) will be prima facie evidence of the Note Indebtedness
recorded therein (absent manifest error); provided that any failure
by the Agent or a Noteholder to maintain any account or any error
therein shall not affect the obligation of the Obligors to repay
the Note Indebtedness to the Agent and the Noteholders in
accordance with this Agreement.

 

 

 

13

 

 

(c)           Each
determination of a rate of interest or fee by the Agent will be
conclusive evidence of such rate or fee in the absence of manifest
error. Interest and fees will be calculated on the basis of a year
of 365 days for the actual number of days (including the first day
but excluding the last day) elapsed in the period for which such
interest or fees are payable. For the purposes of disclosure by the
Agent or any Noteholder if required by or otherwise pursuant to the
laws of the State of New York or other applicable law, and not for
any other purpose, where in this Agreement, a rate is to be
calculated on the basis of a year of 365 days, the yearly rate to
which the 365-day rate is equivalent is such rate multiplied by the
number of days in the year for which such calculation is made and
divided by 365.

 

(d)           Whenever
any payment hereunder shall be stated to be due on a day other than
a Business Day, such payment shall be made on the next succeeding
Business Day, and such extension of time shall in such case be
included in the computation of payment of
interest.

 

2.10           Taxes.
The Borrower agrees that all payments to be made by it under this
Agreement and the other Note Purchase Documents shall be made
without setoff, compensation or counterclaim and free and clear of,
and without deduction for, any taxes, levies, imposts, duties,
charges, fees, deductions, withholdings or restrictions or
conditions of any nature whatsoever now or hereafter imposed,
levied, collected, withheld or assessed by any country or by any
political subdivision or taxing authority thereof or therein
(“Taxes”), in any such case, to the extent
permitted by applicable law. If any Taxes are required to be
withheld by the Borrower or the Agent from any amounts payable
hereunder, the amounts so payable to the Agent or any Noteholder
shall be increased to the extent necessary to yield to the Agent
and the Noteholders (after payment of all Taxes) the amounts
payable hereunder in the full amounts so to be paid. Whenever any
Tax is paid by an Obligor, as promptly as possible thereafter, the
Borrower shall send the Agent an official receipt showing payment
thereof, together with such additional documentary evidence as may
be required from time to time by the Agent. If a payment
made to a Noteholder under any Note Purchase Document would be
subject to U.S. federal withholding Tax imposed by FATCA if such
Noteholder were to fail to comply with the applicable reporting
requirements of FATCA (including those contained in
Section 1471(b) or 1472(b) of the Internal Revenue Code, as
applicable), such Noteholder shall deliver to the Borrower and the
Agent at the time or times prescribed by law and at such time or
times reasonably requested by the Borrower or the Agent such
documentation prescribed by applicable law (including as prescribed
by Section 1471(b)(3)(C)(i) of the Internal Revenue Code) and
such additional documentation reasonably requested by the Borrower
or the Agent as may be necessary for the Borrower and the Agent to
comply with their obligations under FATCA and to determine that
such Noteholder has complied with such Noteholder’s
obligations under FATCA or to determine the amount to deduct and
withhold from such payment.

 

2.11           Maximum
Interest Rate. Notwithstanding
anything to the contrary contained in any Note Purchase Document,
the interest (including interest, if any, at the Default Rate) paid
or agreed to be paid under the Note Purchase Documents shall not
exceed the maximum rate of non-usurious interest permitted by
applicable law (the “Maximum Rate”). If the Agent or any Noteholder shall
receive interest in an amount that exceeds the Maximum Rate, the
excess interest shall be applied to the principal of the Loans or,
if it exceeds such unpaid principal, refunded to the Borrower. In
determining whether the interest contracted for, charged, or
received by the Agent or a Noteholder exceeds the Maximum Rate,
such Person may, to the extent permitted by applicable law, (a)
characterize any payment that is not principal as an expense, fee,
or premium rather than interest, (b) exclude voluntary prepayments
and the effects thereof, and (c) amortize, prorate, allocate, and
spread in equal or unequal parts the total amount of interest
throughout the contemplated term of the Note Indebtedness
hereunder.

 

2.12           Application
of Payments.  
Prior to the occurrence of an Event of
Default, all amounts received by the Agent or the Noteholders from
the Borrower or any Guarantor in respect of the Loans shall be
applied pro
tanto to the Note Indebtedness
as follows: first, to pay any fees, indemnities or expense
reimbursements then due to the Agent and the Noteholders under the
Note Purchase Documents, until indefeasibly paid in full in cash,
second, to pay interest due in respect of all Loans, third, to pay
or prepay the principal amount of the Term Loan, fourth, to pay or
prepay the principal amount of the Revolving Line, fifth, to pay or
prepay any other outstanding Note Indebtedness until indefeasibly
paid in full in cash. Upon the occurrence and during the
continuance of an Event of Default, all amounts received by the
Agent or the Noteholders from the Borrower or any Guarantor or any
other Person shall be applied pro tanto to the Note Indebtedness in such manner as the
Agent shall determine in its sole discretion.

 

 

 

14

 

 

2.13           Fee
Letter.  The Borrower agrees to pay to the Agent, for itself or
for and on behalf of the Noteholders, as applicable, the fees
described in the Fee Letter. All such fees may be withheld from,
and payable from, the proceeds of the Loans, including on the
Closing Date in connection with those fees then
due.

 

2.14           Costs
and Expenses.
The Borrower agrees to pay to the
Agent all reasonable fees, charges, and expenses relating to or in
connection with (a) the Credit Facility, (b) the administration,
amendment, modification or waiver of the Credit Facility (or any
proposed amendment, modification or waiver), and (c) the
enforcement (whether through negotiations, legal proceedings or
otherwise) of the Note Purchase Documents and any other instruments
and documents delivered in connection herewith, and, in each case,
shall reimburse the Agent, irrespective of whether any Notes are
issued or purchased, for such reasonable fees, charges and
expenses, including without limitation, filing fees, taxes, lien
and judgment search fees, due diligence expenses, collateral exam
and inspection expenses, bank fees, and outside examiner, auditor,
appraiser, valuation, and legal fees and expenses, including any
reasonable per diem charges for Agent or third-party personnel, as
applicable.

 

SECTION 3. CONDITIONS OF
LOANS

 

3.1           Conditions
Precedent to Initial Loans.
Each Noteholder’s obligation to make its portion of the Loans
at the Closing Date is subject to the condition precedent that
Agent and each Noteholder shall consent to or shall have received,
in form and substance satisfactory to Agent and each Noteholder,
such documents, and completion of such other matters prior to the
Closing Date, as Agent and each Noteholder may deem necessary or
appropriate, including, without limitation:

 

(a)           each
of the Agent and the Noteholders shall have completed a due
diligence investigation to its satisfaction;

 

(b)           original
Note Purchase Documents, each duly executed by the Borrower and
other parties thereto;

 

(c)           duly
executed original Notes in favor of each Noteholder according to
such Noteholder’s Term Loan Commitment Percentage and
Revolving Line Commitment Percentage;

 

(d)         
the Organic Documents and good
standing certificates of the Borrower certified by the Secretary of
State (or equivalent agency) of the Borrower’s jurisdiction
of organization and each jurisdiction in which the Borrower is
qualified to conduct business, each as of a date no earlier than 30
days prior to the Closing Date;

 

(e)           UCC
financing statements reflecting the Obligors, as debtors, and
Agent, as a secured party, which are required to grant a Lien which
secures the Note Indebtedness and covering such Collateral as
Administrative Agent may request;

 

(f)           the
Perfection Certificates, duly executed by the
Obligors;

 

(g)           original
Revolving Intercompany Notes and executed copies of the other
Related Documents, in each case, acceptable to the Agent in its
sole discretion;

 

(h)           the
Title Policy (or the Title Company’s unconditional commitment
to issue the Title Policy upon recordation of the Mortgage),
including the recordation of the Sherriff’s Deed with the
Sherman County Register of Deeds, and a Survey with respect to the
Mortgaged Property;

 

(i)           an
Appraisal covering the Mortgaged Property;

 

 

 

15

 

 

(j)           evidence
that the Mortgaged Property is not located within any designated
flood plain or special flood hazard area or, in lieu thereof,
evidence that the Borrower has applied for and received flood
insurance covering the Mortgaged Property in an amount acceptable
to the Agent;

 

(k)           evidence
that all applicable zoning ordinances and restrictive covenants
affecting the Mortgaged Property permit the use for which the
Mortgaged Property’s improvements with respect to the
Goodland Project are intended and have been or will be complied
with in all respects;

 

(l)       
    a duly executed original
officer’s certificate for the Borrower and each
Guarantor;

 

(m)           certified
copies, dated as of date no earlier than 30 days prior to the
Closing Date, of financing statement searches completed by the
Borrower, as the Agent shall request, accompanied by written
evidence (including any UCC termination statements) that the Liens
indicated in any such financing statements either constitute Liens
permitted by the Note Purchase Documents or have been or, in
connection with the initial Loans, will be terminated or
released;

 

(n)           duly
executed legal opinions of counsel to the Borrower dated as of the
Closing Date;

 

(o)           subject
to Section 5.1(p)(i), evidence that the insurance policies required
by the Note Purchase Documents are in full force and effect,
together with appropriate evidence showing loss payable and/or
additional insured clauses or endorsements in favor of the Agent
for the benefit of the Noteholders;

 

(p)           a
Request for an Initial Revolving Advance in an amount of not less
than $2,250,000 to fund (i) the prepayment of interest on the Term
Loan for the first eighteen (18) Interest Payment Dates following
the Closing Date and (ii) fees and expenses associated with the
transactions contemplated by Note Purchase
Documents;

 

(q)           a
copy of (i) the Annual Budget for fiscal years 2017 and 2018 and
(ii) a copy of the Annual monthly cash flow budget for each month
prior to the Maturity Date, in each case satisfactory to the Agent
in its sole discretion;

 

(r)           payment
of the fees and expenses of the Agent and the Noteholders then due
as specified in the Fee Letter and in Section 2.14
hereof;

 

(s)           background
and credit checks on each Obligor and certain of their respective
key personnel, satisfactory to the Agent in its sole
discretion;

 

(t)           evidence
that all conditions precedent to the consummation of the
Acquisition have been satisfied or waived and that the Acquisition
will be closed simultaneously with the funding of the Term Loan and
any Revolving Advances related thereto;

 

(u)           the
original Sherriff’s Deed shall have been recorded with the
Sherman County Register of Deeds and a recorded copy of the
Sherriff’s Deed shall have been delivered to Agent;
and

 

(v)           the
Agent and the Noteholders shall have received such other documents,
instruments and information as such Person may reasonably
request.

 

3.2           Conditions
Precedent to all Loans. The
obligation of each Noteholder to make each Loan, including the
initial Loans, is subject to the following conditions
precedent:

 

(a)           receipt
by the Agent and each Noteholder of an executed Request for
Revolving Advance and each Revolving Advance and the use of
proceeds thereof, as indicated in the Request for Revolving
Advance, shall be approved by the Agent in its sole
discretion;

 

(b)           no
Event of Default shall have occurred and be continuing or result
from the Loan;

 

 

 

16

 

 

(c)           the
representations and warranties in Section 4 hereof and in the
Note Purchase Documents shall be true, accurate and complete in all
material respects on the date of the Request for Revolving Advance
and on the Drawdown Date of each Revolving Advance; provided,
however, that such materiality qualifier shall not be applicable to
any representations and warranties that already are qualified or
modified by materiality in the text thereof; and provided, further
that those representations and warranties expressly referring to a
specific date shall be true, accurate and complete in all material
respects as of such date. Each Loan is Borrower’s or the
Obligor’s, as applicable, representation and warranty on that
date that the representations and warranties in Section 4
hereof and in the Note Purchase Documents are true, accurate and
complete in all material respects; provided, however, that such
materiality qualifier shall not be applicable to any
representations and warranties that already are qualified or
modified by materiality in the text thereof; and provided, further
that those representations and warranties expressly referring to a
specific date shall be true, accurate and complete in all material
respects as of such date;

 

(d)           in
such Noteholder’s sole discretion, there has not been any
Material Adverse Effect or any materially adverse deviation by
Borrower from the Annual Budget of the Borrower that was previously
presented to and accepted by the Agent;

 

(e)           after
giving effect to such Loan, the total outstanding Revolving
Advances do not exceed the Revolving Line; and

 

(f)           payment
of the fees and expenses then due as specified in Section 2.14
hereof.

 

SECTION 4.  
REPRESENTATIONS AND
WARRANTIES OF THE BORROWER.

 

Subject
to the disclosures set forth in the disclosure schedule of Borrower
delivered to Agent and Noteholders concurrently with the execution
and delivery of this Agreement (the “Disclosure Schedule”) (each of
which disclosures, in order to be effective, shall clearly indicate
the Section and, if applicable, the Subsection of this Section 4 to which it relates),
Borrower represents and warrants to
the Agent as follows:

 

(a)           Borrower
(i) is duly organized, validly existing and in good standing under
the laws of the jurisdiction of its organization, (ii) has the
power and authority, and the legal right, to own and operate its
Property and to conduct the business in which it is currently
engaged, (iii) is duly qualified as a foreign corporation and in
good standing under the laws of each jurisdiction where its
ownership, lease or operation of Property or the conduct of its
business requires such qualification and (iv) is in compliance with
all Requirements of Law in all material
respects.

 

(b)           Borrower
has the power and authority, and the legal right, to make, deliver
and perform the Note Purchase Documents to which it is a party, to
consummate the transactions contemplated thereby and, as the case
may be, to obtain extensions of credit hereunder. Borrower has
taken all necessary organizational action to authorize the
execution, delivery and performance of the Note Purchase Documents
to which it is a party and to authorize the extensions of credit on
the terms and conditions of this Agreement. No consent or
authorization of, filing with, notice to or other act by or in
respect of, any Governmental Authority or any other Person is
required in connection with the extension of credit hereunder or
with the execution, delivery, performance, validity or
enforceability of this Agreement or any of the Note Purchase
Documents. Each Note Purchase Document to which Borrower is a party
has been duly executed and delivered on behalf of Borrower. This
Agreement constitutes, and each other Note Purchase Document upon
execution will constitute, a legal, valid and binding obligation of
the Borrower a party thereto, enforceable against such Borrower in
accordance with its terms, except as enforceability may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting the enforcement of creditors’ rights
generally and by general equitable principles (whether enforcement
is sought by proceedings in equity or at law).

 

(c)           The
execution, delivery, and performance by Borrower of this Agreement
and the other Note Purchase Documents to which such Borrower is a
party and compliance with the terms and provisions hereof and
thereof will not (i) violate or conflict with, or result in a
breach of, or require any consent (other than those that have been,
or on the Closing Date will be, duly obtained or made and which
are, or on the Closing Date will be, in full force and effect)
under (A) the Organic Documents of such Borrower, (B) any
Requirement of Law, or (C) any material agreement or instrument to
which such Borrower is a party or by which it or any of its
properties is bound or subject, or (ii) result in the creation or
imposition of any Lien upon any of the revenues or assets of such
Borrower other than the Liens arising under the Note Purchase
Documents.

 

 

 

17

 

 

(d)           All
factual information taken as a whole (other than forward-looking
information and projections and information of a general economic
nature and general information about the Borrower’s industry)
furnished by or on behalf of Borrower in writing to the Agent or
any Noteholder for purposes of or in connection with this Agreement
or any other Note Purchase Document, will be true and accurate in
all material respects, on the date as of which such information is
dated or certified and is not incomplete by omitting to state any
fact necessary to make such information (taken as a whole) not
misleading in any material respect at such time in light of the
circumstances under which such information was provided. The
projections delivered to the Agent represent, the Borrower’s
good faith estimate, on the date such projections were/are
delivered, of the Borrower’s future performance for the
periods covered thereby based upon assumptions believed by the
Borrower to be reasonable at the time of the delivery thereof to
the Agent.

 

(e)           Schedule
4(e) hereto is a correct and
complete list of Borrower’s head office, registered office
and chief executive office, the location of its books and records
and the locations of its Property. The Borrower enjoys peaceful and
undisturbed possession under all leases material to its business,
if any, and to which it is a party or under which it is operating,
and all such material leases, if any, are valid and subsisting and
no material default by the Borrower exists under any of
them.

 

(f)           On
the Closing Date, the Borrower shall have acquired the Mortgaged
Property and consummated the other transactions contemplated by the
Purchase Documents in accordance with the terms thereof, without
any waiver or amendment thereto (unless agreed to by the Agent in
its sole discretion).

 

(g)           Neither
Borrower nor to the knowledge of the Borrower, any of its
respective Affiliates, is (i) in violation of any applicable laws
relating to terrorism or money laundering
(“Anti-Terrorism
Laws”), including, but
not limited to, (x) the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001, Public Law 107-56, (y) the laws, rules and
regulations comprising or implementing the Bank Secrecy Act, (z)
the laws, rules and regulations administered by the United States
Department of the Treasury’s Office of Foreign Asset Control
(“OFAC”) (as any of the foregoing laws described
in this Section 4(g) may from time to time be amended, renewed,
extended, or replaced), or (ii) currently a Sanctioned Entity. No
Loan or the proceeds from any Loan has been used by Borrower to
lend, contribute, provide, or has otherwise been made available by
Borrower to fund, any activity or business in any Designated
Jurisdiction or to fund any activity or business of any Sanctioned
Entity, or in any other manner that will result in any violation by
any Noteholder, the Agent or any of their respective Affiliates, of
Sanctions.

 

(h)           Neither
Borrower nor to the knowledge of the Borrower, any of its
respective Affiliates or any of their respective agents acting in
any capacity in connection with the Loans or other transactions
hereunder (i) conducts any business or engages in making or
receiving any contributions of funds, goods or services to or for
the benefit of any Sanctioned Entity, except to the extent not in
violation of Sanctions or (ii) knowingly engages in or conspires to
knowingly engage in any transaction that evades or avoids, or has
the purpose of evading or avoiding, or attempts to violate, any of
the prohibitions set forth in any applicable Anti-Terrorism
Law.

 

(i)           Borrower
is in compliance in all material respects with the Foreign Corrupt
Practices Act, as amended, and rules and regulations thereunder
(“FCPA”). No part of the proceeds of the Term Loan
or any Revolving Advance will be used directly or indirectly for
any payments to any governmental official or employee, political
party, official of a political party, candidate for political
office, or anyone else acting in an official capacity, in order to
obtain, retain or direct business or obtain any improper advantage,
in violation of the FCPA.

 

 

 

18

 

 

(j)           To
Borrower’s knowledge, Borrower is not in violation of any
Requirement of Law, including all environmental laws, in any
material respect.

 

(k)           There
are no actions, suits, litigation or proceedings, at law or in
equity, pending by or against Borrower before any court,
administrative agency, or arbitrator in which a likely adverse
decision could reasonably be expected to have a Material Adverse
Effect.

 

(l)           Borrower
has filed all federal and other material tax returns required to be
filed, including all income, franchise, employment, property, and
sales tax returns, and has paid all of their respective federal and
other material taxes, assessments, governmental charges, and other
levies that are due and payable, except to the extent such taxes
are contested in good faith by proper proceedings which stay the
imposition of any penalty, fine or Lien resulting from the
non-payment thereof and with respect to which adequate reserves
have been set aside for the payment thereof. Borrower has no
knowledge of any pending investigation of Borrower by any taxing
authority or of any pending unassessed tax liability (other than
taxes which are not yet due and payable) of any
Obligor.

 

(m)           Borrower
has rights in or the power to transfer the Collateral, and its
title to the Collateral is free and clear of Liens, adverse claims
and restrictions on transfer or pledge except as permitted under
this Agreement.

 

(n)           The
proceeds of the Loans shall be used by the Borrower for the
purposes described on Schedule 5.1(i). Borrower is not engaged
principally, or as one of its important activities, in the business
of extending credit for the purpose of purchasing or carrying
margin stock (within the meaning of Regulations T, U, or X of the
Board of Governors of the Federal Reserve System), and no part of
the proceeds of any Loan will be used to purchase or carry any
margin stock or to extend credit to others for the purpose of
purchasing or carrying margin stock.

 

(o)           Borrower
is not (i) an “investment company” or a company
“controlled” by an “investment company”
within the meaning of the Investment Company Act of
1940 or (ii) subject to
regulation under any other federal or state statute, rule or
regulation limiting its ability to incur Indebtedness, pledge its
assets or perform its obligations under the Note Purchase
Documents.

 

(p)           All
financial statements related to Borrower that are delivered by such
Borrower to Agent fairly present in all material respects such
Borrower’s financial condition as of the date thereof and
such Borrower’s results of operations for the period then
ended. There has not been a material adverse change in the
financial condition of Borrower since the date of the most recent
of such financial statements submitted to
Agent.

 

(q)           The
properties of the Borrower are insured with financially sound and
reputable insurance companies which are not Affiliates of the
Borrower, in such amounts, with such deductibles and covering such
risks as are customarily carried by companies engaged in similar
businesses and owning similar properties in localities where the
Borrower operates.

 

(r)           Borrower
has met the minimum funding requirements of ERISA with respect to
any employee benefit plans subject to ERISA. No event has occurred
resulting from Borrower’s failure to comply with ERISA that
is reasonably likely to result in the Borrower incurring any
liability that could reasonably be expected to have a Material
Adverse Effect.

 

(s)           Borrower
is able to pay its debts (including trade debts) as they mature;
the fair saleable value of Borrower’s assets (including
goodwill minus disposition costs) exceeds the fair value of its
liabilities; and Borrower will not be left with unreasonably small
capital after the transactions contemplated by this
Agreement.

 

(t)           The
representations and warranties made in this Section 4 shall survive the execution and
delivery of this Agreement and shall deemed to have been made by
the Borrower on the Closing Date and repeated by the Borrower, in
each case with reference to the facts and circumstances then
existing, on each Interest Payment Date and any subsequent Drawdown
Date.

 

 

 

19

 

 

SECTION 5.  
COVENANTS OF THE
BORROWER.

 

5.1           Affirmative
Covenants. So long as any of
the Note Indebtedness shall remain unpaid, the Borrower will unless
the Agent shall otherwise consent in writing, in its sole and
absolute discretion:

 

(a)           Maintenance
of Existence; Compliance. (i)
Preserve, renew and keep in full force and effect its
organizational existence and take all reasonable action to maintain
all rights, privileges and franchises necessary or desirable in the
normal conduct of its business, (ii) comply in all material
respects with all contractual obligations, (iii) comply in all
material respects with all Requirements of Law, and (iv) preserve,
renew and keep in full force and effect all material
contracts.

 

(b)           Payment
of Obligations. Pay, discharge
or otherwise satisfy at maturity or before they become delinquent,
as the case may be, all its material obligations of whatever nature
(including all taxes), except where the amount or validity thereof
is currently being contested in good faith by appropriate
proceedings and reserves in conformity with GAAP with respect
thereto have been provided on the books of the Borrower or its
Subsidiary, as applicable.

 

(c)           Reporting
Requirements. Furnish to the
Agent (i) written notice of the occurrence of any Default or Event
of Default or any other event or circumstance that may constitute a
Material Adverse Effect and (ii) such information with respect to
the condition or operations, financial or otherwise, of the
Obligors as the Agent may from time to time reasonably request,
including, without limitation:

 

(1)
Annual Reporting: within ninety (90) days following the close of
each fiscal year, i) the Borrower’s annual financial
statements, prepared in accordance with GAAP and reviewed by a
recognized firm of qualified accountants acceptable to the Agent
and presenting fairly the financial condition of the Borrower and
any of its Subsidiaries as of the date thereof and for the period
then ended (and including a letter from such accountants), and ii)
a copy of the Capital Expenditure budget of the Borrower and its
Subsidiaries for such following fiscal year;

 

(2) Quarterly Reporting: within forty-five (45)
days after the close of each fiscal quarter, i) quarterly and
fiscal year-to-date unaudited consolidated financial statements of
the Borrower and its Subsidiaries, including an income statement,
balance sheet, and statement of cash flow, statement of earnings
prepared in accordance with GAAP (subject to the absence of notes
and annual adjustment) ii)
updates to the current year’s financial projections for each
such remaining fiscal quarters, and (C) updates to the Capital
Expenditure budget for each such remaining fiscal
quarters;

 

(3) Quarterly Compliance Certificate: forty-five
(45) days after the close of each fiscal quarter, a compliance
certificate, duly executed by a Responsible Officer, demonstrating
compliance with the financial covenants set forth in Section 5.2(l)
and in the form attached hereto as Schedule 5.1(c)
or otherwise satisfactory in form and
substance to the Agent;

 

(4) Annual Budget: As soon as available and in any
event within forty-five (45) days following the commencement of
each fiscal year, the annual business plan of the Borrower and its
Subsidiaries prepared on a consolidated basis, with financial
projections and budgets on an annual basis, in each case consisting
of a balance sheet, statement of income, statement of cash flows,
proposed Capital Expenditures and a list of assumptions upon which
such projections are based (the “Annual
Budget”) for such fiscal
year;

 

(5)
Annual Budget Updates: As soon as practicable and in any event
within (A) sixty (60) days after each fiscal year and (B) two
hundred and forty (240) days after each fiscal year, updates of the
cash flow projections and budget from the Annual Budget with
projections for the immediately succeeding twelve-month or
six-month period, as applicable, together with a summary of
variances from the applicable projections providing supplementary
detailed schedules and information supplementary to and consistent
with the Annual Budget;

 

 

 

20

 

 

(6)
Material Internal Reports: Immediately upon receipt by Borrower or
any its Subsidiaries, copies of any reports, including material
internal reports provided to or by its engineers, other employees
or external consultants with respect to the Goodland
Project;

 

(7)
Insurance and Security: From time to time upon request of the
Agent, and in any event at least annually, evidence of (A) the
maintenance of all insurance required to be maintained pursuant to
this Agreement, including originals or copies as the Agent may
request of policies, certificates of insurance, riders,
endorsements and proof of premium payments, (B) maintenance of
onsite security personal on a 24/7 basis, and (C) the good standing
of all authorizations, permits, licenses, certifications, consents,
registrations and approvals material to Borrower or any
Obligor;

 

(8)
Shareholder Notices: Copies of all notices, reports and other
documents sent to shareholders and directors of Borrower or any of
its Subsidiaries as the Agent, on behalf of the Noteholders, may
from time to time reasonably request;

 

 (9)
SEC Reports: Copies of all notices, reports, press releases,
circulars, offering documents and other documents of Borrower or
any of its Subsidiaries filed with, or delivered to, any stock
exchange or securities commission or a similar Governmental
Authority in any applicable jurisdiction;

 

(10)
SEC Investigations: Promptly, and in any event within seven (7)
days after receipt thereof by any Obligor, or any Subsidiary
thereof, copies of each notice or other correspondence received
from the Securities and Exchange Commission (or comparable agency
in any applicable non-U.S. jurisdiction) concerning any
investigation or possible investigation or other inquiry by such
agency regarding financial or other operational results of any
Obligor or Subsidiary thereof; and

 

(11)
Other Information: Such other information respecting the condition
or operations, financial or otherwise, of the business of Borrower
or any its Subsidiaries, the Collateral, or any Obligor as the
Agent may from time to time require, including appraisals and
valuations of the Mortgaged Property, the Riverbank Project or the
Goodland Project.

 

(d)           Environmental
Issues. (i) Promptly notify
Noteholders of any environmental claim, notice or order against it;
(ii) conduct such environmental audits as may reasonably be
requested by the Agent; and (iii) Borrower shall not, and shall not
permit any lessee or occupant of the Mortgaged Property to, use,
generate, manufacture, store, maintain, dispose of or permit to
exist in, on, under or about the Mortgaged Property any Hazardous
Materials, except for the use, storage and disposal (such use,
storage and disposal to be in all cases in accordance with all
applicable Requirements of Law) of (x) the Disclosed Substances and
(y) de minimis amounts of janitorial and cleaning
supplies.

 

(e)           Security.
Do, observe and perform or cause to be done, observed and performed
all of its obligations and all matters and things necessary or
expedient and which may be legally done, observed and performed by
the Borrower and each Subsidiary for the purpose of perfecting,
setting-up, rendering opposable, creating or maintaining its rights
and interest in all collateral in which such Person has granted
Liens in favor of the Agent. The Borrower and each Subsidiary shall
promptly execute and deliver to the Agent such additional or
complementary security documents, or such confirmations or such
notices or documents containing such further description of
properties charged or intended to be charged by the Security
Documents as may in the reasonable opinion of the Agent be
necessary or advisable to create and maintain its rights in all
such collateral. Without limiting the
generality of the foregoing, upon exercise of the Aemetis Option,
the Parent, as holder of Capital Stock of the Borrower pursuant to
the Aemetis Option, shall take such actions relating thereto that
are requested by the Agent pursuant to this Section 5.1(e) to
effectuate the terms and provisions of the Pledge Agreement.
The Borrower and each Subsidiary shall cause to be promptly made
all registrations, publications and filings (including any renewals
thereof) and to be delivered all opinions, necessary, in the
reasonable opinion of the Agent, to render the Security Documents,
and the Liens made in favor of the Agent, to be fully effective as
security. The Borrower shall promptly notify the Agent of the
establishment of any deposit account, securities account or other
bank account by the Borrower or any Subsidiary and, at the request
of the Agent, enter into any control agreements with respect
thereto as may be requested by the Agent. The Borrower shall notify
the Agent of the acquisition by the Borrower or any Subsidiary of
any material assets, the formation or acquisition of any new
Subsidiaries of such Person and the acquisition of any interests in
any real property, and shall take such actions relating thereto
that are requested by the Agent pursuant to this Section 5.1(e),
including, without limitation, causing any such new Subsidiary to
become a Guarantor and/or causing any such assets to become subject
to a Lien securing the Note Indebtedness.

 

 

 

21

 

 

(f)           Maintenance
of Properties. Keep and
maintain all Property material to the conduct of its business in
good working order and condition, ordinary wear and tear
excepted.

 

(g)           Insurance.

 

(1)
Maintain, with financially sound and reputable insurers having a
rating acceptable to the Agent in its reasonable discretion,
covering, except as permitted by the Agent, all of their Property,
insurance against loss or damage by fire with extended coverage;
theft, burglary, pilferage and loss in transit; public liability
and third party property damage; larceny, embezzlement or other
criminal liability; public liability and third party property
damage; and such other hazards or of such other types as is
customary for Persons engaged in the same or similar business, as
the Agent, in its discretion, shall specify, in amounts, and under
policies acceptable to the Agent.

 

(2)
Cause the Agent, for the ratable benefit of the Agent and the
Noteholders, to be named as loss payee or additional insured in
each policy insuring its Property or any part thereof, in a manner
acceptable to the Agent. All premiums for such insurance shall be
paid by the Borrower when due, and certificates of insurance and,
if requested by the Agent or any Noteholder, photocopies of the
policies, shall be delivered to the Agent, in each case in
sufficient quantity for distribution by the Agent to each of the
Noteholders. If the Borrower fails to procure such insurance or to
pay the premiums therefor when due, the Agent may do so from the
proceeds of the Loans.

 

(h)           Inspection.
Enable and assist representatives of the Agent to examine (and, if
desired, copy) Borrower’s (and any of its
subsidiaries’) records, to inspect any of its properties, to
conduct field examinations, audits and appraisals of any of the
Collateral, the Mortgaged Property and the Goodland Project, and to
discuss its business and affairs with its officers, directors,
employees, accountants, auditors, partners, suppliers and customers
all to the extent reasonably requested by the Agent and all at the
Borrower’s expense. Not in limitation of the foregoing,
enable and assist representatives of the Agent to conduct a monthly
review of the progress of the Goodland Project.

 

(i)           Use
of Proceeds. Use the proceeds
of the Term Loan and Revolving Advances solely for the purposes
identified on Schedule 5.1(i)
hereto or as otherwise agreed to by
the Agent in its sole discretion, and not for personal, family,
household or agricultural purposes or advanced to any Person who is
not an Obligor.

 

 

 

22

 

 

(j)           Books
and Records. Maintain at all
times, correct and complete books, records and accounts in which
complete, correct and timely entries are made of its transactions
in accordance with GAAP. Borrower and its Subsidiaries shall, by
means of appropriate entries, reflect in such accounts and in all
their financial statements adequate liabilities and reserves for
all taxes and adequate provision for depreciation and amortization
of Property and bad debts, all in accordance with GAAP. Borrower
and its Subsidiaries shall maintain at all times books and records
pertaining to their Property in such detail, form and scope as the
Agent shall reasonably require, including, without limitation,
records of: (i) all payments received and all credits and
extensions granted with respect to their accounts or claims; and
(ii) all other dealings affecting their Property. Upon request by
the Agent, the Borrower shall promptly deliver or cause to be
delivered (where applicable and provided such delivery is permitted
by law): (i) technical and engineering reports prepared by
independent experts in connection with the business of the
Obligors; (ii) copies of all material and selected contracts and
authorizations; (iii) organizational charts for the Obligors and a
summary of compensation of all personnel of the Obligors; (iv)
copies of reports sent to shareholders and directors of any of the
Obligors; and (v) such further schedules, documents, and
information as the Agent may require.

 

(k)           Further
Assurances. At its own cost and
expense, execute and deliver to Agent and Noteholders all such
documents, instruments and agreements and do all such other acts
and things as may be reasonably required, in the opinion of the
Agent, to carry out the purpose of each Note Purchase Document to
which it is a party or to enable the Agent and Noteholders to
exercise and enforce their rights hereunder or
thereunder.

 

(l)           Taxes.
Make due and timely payment or deposit of all federal, provincial,
territorial, state and local taxes, assessments or contributions
required of it by law (including, but not limited to, those laws
concerning income taxes, F.I.C.A., F.U.T.A. and state disability),
and will execute and deliver to the Agent, on demand, proof
satisfactory to the Agent indicating that such Person has made such
payments or deposits and any appropriate certificates attesting to
the payment or deposit thereof.

 

(m)           Additional
Guarantors and Security. Upon
the request of the Agent following the formation or acquisition of
any new direct or indirect Subsidiaries approved by the Agent by
Borrower or the acquisition of any property by Borrower, and such
property, in the judgment of the Agent, shall not already be
subject to a perfected first priority security interest in favor of
the Agent for the benefit of the Noteholders, then in each case at
the Borrower's expense: (i) in connection with the formation or
acquisition of a Subsidiary, within ten (10) days after such
formation or acquisition, cause each such Subsidiary, and cause
each direct and indirect parent of such Subsidiary (if it has not
already done so), to duly execute and deliver to the Agent a
supplement to the Guaranty, or other similar guaranty in form and
substance satisfactory to the Agent, guaranteeing the Note
Indebtedness; and (ii) within fifteen (15) days after such request,
formation or acquisition, duly execute and deliver, and cause each
such Subsidiary and each direct and indirect parent of such
Subsidiary to duly execute and deliver to the Agent mortgages,
pledges, assignments, security interests and other security
agreements, as specified by and in form and substance satisfactory
to Agent (including delivery of all Capital Stock in and of such
Subsidiary, and other instruments requested by the Agent in
connection therewith, in each case, securing payment of all Note
Indebtedness.

 

(n)           Compensation
Agreements. Prior to entering
into or modifying any compensation agreements (including salary,
bonuses, perquisites, benefits, stock options, and other incentive
compensation) for key officers or directors of Borrower or any
Subsidiary of Borrower, the Borrower shall provide the terms
thereof to the Agent, and such terms must be satisfactory to the
Agent, acting reasonably.

 

(o)           Control
Agreement. Within thirty (30)
days following a request of Agent from time to time with respect to
any Obligor, execute and deliver to Agent, one or more control
agreements over such Obligor’s deposit accounts countersigned
by the applicable bank or third party, in each case, in a form
acceptable to Agent in its sole discretion.

 

(p)           Post-Closing
Matters.

 

(i)           Within
five (5) Business Days after the Closing Date, the Agent shall have
received evidence that the insurance policies required by the Note
Purchase Documents are in full force and effect, together with
appropriate evidence showing loss payable and/or additional insured
clauses or endorsements in favor of the Agent for the benefit of
the Noteholders.

 

(ii)           Within
sixty (60) days after the Closing Date, the Agent shall have
received a fully executed Collateral Assignment of the Riverbank
Lease, from AAPK to the Agent on behalf of the Noteholders with
respect to the Riverbank Lease.

 

 

 

23

 

 

5.2           Negative
Covenants. So long as any of
the Note Indebtedness shall remain unpaid, the Borrower will not,
directly or indirectly, without the prior written consent of the
Agent, in its sole and absolute discretion:

 

(a)           Liens.
Create, incur, assume or suffer to exist any Lien upon any of its
Property, whether now owned or hereafter acquired,
except:

 

(i)           Liens
for taxes not yet due or that are being contested in good faith by
appropriate proceedings, provided that adequate reserves with
respect thereto are maintained on the books of the applicable
Person in conformity with GAAP;

 

(ii)        
carriers’, warehousemen’s,
mechanics’, materialmen’s, repairmen’s or other
like Liens arising in the ordinary course of business that are not
overdue for a period of more than 30 days or that are being
contested in good faith by appropriate
proceedings;

 

(iii)        
pledges or deposits in connection with
workers’ compensation, unemployment insurance and other
social security legislation;

 

(iv)        
easements, rights-of-way, restrictions
and other similar encumbrances incurred in the ordinary course of
business that, in the aggregate, are not substantial in amount and
that do not in any case materially detract from the value of the
Property subject thereto or materially interfere with the ordinary
conduct of the business of such Person; and

 

(v)            

Liens
created pursuant to the Security Documents.

 

(b)           Indebtedness.
Create, incur, assume or suffer to
exist any Indebtedness, except Permitted Indebtedness. Without the
consent of the Agent, amend, modify or change any term or condition
of any documentation entered into in connection with any
Indebtedness (i) in any manner (i) if the effect of such amendment,
modification or change is to restrict in any manner the ability of
any Agent or the Noteholders to exchange, extend, renew, replace or
refinance, in whole or part, the Term Loan, Revolving Advances or
any other Indebtedness under this Agreement or any other Note
Purchase Document, or (ii) in any other manner that could be
adverse to the interests, rights or remedies of the Agent or any
Noteholder under the Note Purchase Documents.

 

(c)           Capital
Stock, Dividends, Etc. (i)
Declare or make any Distribution or other dividend payment or
distribution of assets, properties, cash, rights, obligations or
securities on account of any shares of any class of Capital Stock
of the Borrower, (ii) issue, purchase, redeem or otherwise acquire
for value any shares of any class of Capital Stock of the Borrower
or any of its Subsidiaries or any warrants, rights or options to
acquire any such shares, now or hereafter outstanding or (iii) make
any distributions, remuneration or payment (including any
Distributions) in violation of the terms of any applicable
subordination terms applicable to any Permitted Indebtedness.
Notwithstanding any other term of this Agreement, the Borrower and
its Subsidiaries shall not, without the prior written consent of
the Agent, make any transfer of funds, transfer of Property, or any
distributions, remuneration or payment (including any
Distributions) to any Person, other than (y) payments on account of
the Note Indebtedness in accordance with the terms hereof, and (z)
to the extent not otherwise prohibited by any Note Purchase
Document, in the ordinary course of business and not in connection
with or on account of any Indebtedness.

 

(d)           Investments.
Make any Investment after the Closing Date except Permitted
Investments.

 

 

 

24

 

 

(e)           Business,
Management, Mergers, etc. (i)
make any change in (A) board of directors or senior management of
Borrower, (B) the compensation arrangements of any key officer or
director of Borrower or any of its Subsidiaries, or (C) the capital
structure of the Borrower or any of its Subsidiaries, (ii) make any
material change in the nature of the business presently conducted
by the Borrower or any of its Subsidiaries;
(iii) make
any payments on account of bonuses or new retainers greater than
$50,000 or establish or create any trust accounts, (iv) change
its name; (v) change its jurisdiction of incorporation or its type
of organization (that is, from a corporation) or otherwise amend,
modify or change any of its Organic Documents, as in effect on the
Closing Date; (vi) merge, amalgamate or consolidate with or
into, or convey, transfer, lease or otherwise dispose of or
alienate (whether in one transaction or in a series of
transactions) all or substantially all of its assets (whether now
owned or hereafter acquired) to, or acquire all or substantially
all of the assets of, any Person, or dissolve or liquidate or
terminate its legal existence, or (vii) make any change in (A) its
accounting policies or reporting practices, except as required or
permitted by GAAP, or (B) its fiscal year.

 

(f)           Change
of Control. Cause, permit, or
suffer, directly or indirectly, any Change of Control (other than a
Change of Control caused by the exercise of the Aemetis Option or
the exercise of the Warrant).

 

(g)           Disposition
of Property. Dispose or
alienate of any of its Property, whether now owned or hereafter
acquired, except dispositions of inventory made by the Borrower or
its Subsidiaries in the ordinary course of its
business.

 

(h)         
Affiliate
Transactions and Intercompany Loans. Enter into any transaction with any Obligor,
Affiliate or Subsidiary or any of its directors or senior or
executive officers or senior management, or enter into or assume
any employment, consulting or analogous agreement or arrangement
with any of its directors or senior or executive officers or senior
management, or make any payment to any of its directors or senior
or executive officers or senior management; provided, however, that
Borrower may make one or more intercompany loans to the Parent so
long as each intercompany loan (i) is made pursuant to and in
accordance with the terms of the Revolving Intercompany Note and
(ii) has been approved in writing by the Agent.

 

(i)           Bank
Accounts. Open any bank account
without the consent of the Agent.

 

(j)           Negative
Pledge Clauses. Enter into or
suffer to exist or become effective any agreement that prohibits or
limits the ability of the Borrower or any Subsidiary to create,
incur, assume or suffer to exist any Lien upon any of its Property
or revenues, whether now owned or hereafter acquired, other than
this Agreement and the other Note Purchase
Documents.

 

(k)           Place
of Business. Change the location of its respective chief
executive office, principal place of business and registered office
from, or maintain Property in any location other than as disclosed
in Schedule
4(e).

 

(j)           Amendments
of Related Documents. Cancel or
terminate any Related Document or consent to or accept any
cancellation or termination thereof, amend, modify or change in any
manner any term or condition of any Related Document or give any
consent, waiver or approval thereunder, waive any default under or
any breach of any term or condition of any Related Document, agree
in any manner to any other amendment, modification or change of any
term or condition of any Related Document or take any other action
in connection with any Related Document that would impair the value
of the interest or rights of any Noteholder thereunder or that
would impair the rights or interests of the Agent or any
Noteholder.

 

(k)           Financial
Covenants.

 

(i)
Permit the ratio of: (a) the sum of (i) the most recent Mortgaged
Property Market Value, and (ii) the most recent Riverbank Project
Value to (b) the Note Indebtedness, to be less than 2.00:1.00,
tested as of the last day of each fiscal quarter.

 

 

 

25

 

 

(ii)
Permit the amount of trade payables due to exceed the sum of the
amount of the Borrower’s Cash Equivalents plus the Revolving
Advances available to be advanced under the Revolving Line, tested
as of the last day of each month.

 

SECTION 6.  EVENTS OF DEFAULT;
REMEDIES.

 

6.1           Events
of Default. Each of the
following events (each an “Event of
Default”) shall
constitute an Event of Default:

 

(a)           any
Obligor shall fail to pay any principal of, or interest on, or
other amount payable under any Note Purchase Documents when the
same becomes due and payable; or

 

(b)           any
representation or warranty made by an Obligor or Pledgor (or any of
its officers) under or in connection with any Note Purchase
Document or that is contained in any certificate, document or
financial or other statement furnished by it at any time under or
in connection with any Note Purchase Document shall prove to have
been incorrect or misleading in any material respect when made;
or

 

(c)       
    any Obligor or Pledgor
shall fail to perform or observe any term, covenant or agreement
contained in any Note Purchase Document on its part to be performed
or observed; or

 

(d)           any
Obligor shall fail to pay any principal of or premium or interest
on any Indebtedness in excess of $25,000 with respect to the
Borrower, and $100,000 with respect to any other Obligor (but
excluding Indebtedness evidenced by this Agreement), when the same
becomes due and payable (whether by scheduled maturity, required
prepayment, acceleration, demand or otherwise), and such failure
shall continue after the applicable grace period, if any, specified
in the agreement or instrument relating to such Indebtedness; or
any other event shall occur or condition shall exist under any
agreement or instrument relating to any such Indebtedness and shall
continue after the applicable grace period, if any, specified in
such agreement or instrument, if the effect of such event or
condition is to accelerate, or to permit the acceleration of, the
maturity of such Indebtedness; or any such Indebtedness shall be
declared to be due and payable, or required to be prepaid (other
than by a regularly scheduled required prepayment), redeemed,
purchased or defeased, or an offer to prepay, redeem, purchase or
defease such Indebtedness shall be required to be made, in each
case prior to the stated maturity thereof; or

 

(e)           (i)
any Obligor, any subsidiary thereof or any Pledgor shall commence,
or have commenced against it, any case, proceeding or other action
(A) under any existing or future law of any jurisdiction, domestic
or foreign, relating to bankruptcy, insolvency, reorganization or
relief of debtors, seeking to have an order for relief entered with
respect to it, or seeking to adjudicate it a bankrupt or insolvent
Person, or seeking reorganization, arrangement, adjustment,
winding-up, liquidation, dissolution, composition or other relief
with respect to it or its debts, or (B) seeking appointment of a
receiver, interim receiver, trustee, custodian, conservator,
monitor, interim monitor or other similar official for it or for
all or any substantial part of its assets, or any Obligor, any
subsidiary thereof or any Pledgor shall make a general assignment
for the benefit of its creditors; or (ii) there shall be commenced
against any Obligor, any subsidiary thereof or any Pledgor any
case, proceeding or other action of a nature referred to in clause
(i) above that (A) results in the entry of an order for relief or
any such adjudication or appointment or (B) remains undismissed,
undischarged or unbonded for a period of ninety (90) days; or (iii)
there shall be commenced against any Obligor, any subsidiary
thereof or any Pledgor any case, proceeding or other action seeking
issuance of a warrant of attachment, execution, distraint or
similar process against all or any substantial part of its assets
that results in the entry of an order for any such relief that
shall not have been vacated, discharged, or stayed or bonded
pending appeal within ninety (90) days from the entry thereof; or
(iv) any Obligor, any subsidiary thereof or any Pledgor shall take
any action in furtherance of, or indicating its consent to,
approval of, or acquiescence in, any of the acts set forth in
clause (i), (ii), or (iii) above; or (v) any Obligor, any
subsidiary thereof or any Pledgor shall generally not, or shall be
unable to, or shall admit in writing its inability to, pay its
debts as they become due; or

 

 

 

26

 

 

(f)           any
judgment or order for the payment of money in excess of $25,000
with respect to the Borrower, and $100,000 with respect to any
other Obligor shall be rendered against Borrower or any Obligor and
either (i) enforcement proceedings shall have been commenced by any
creditor upon such judgment or order or (ii) there shall be any
period of ten (10) consecutive days during which a stay of
enforcement of such judgment or order, by reason of a pending
appeal or otherwise, shall not be in effect; or

 

(g)           a
writ of attachment, garnishment execution, distraint or similar
process in excess of $25,000 with
respect to the Borrower, and $100,000 with respect to any other
Obligor is issued against Borrower or any Obligor, or any of
their respective properties, and remains in effect for ten (10)
consecutive days, except for any such writ of attachment,
garnishment execution, distraint or similar process that is subject
to a bona fide dispute by Borrower and is properly contested by
appropriate proceedings promptly instituted and diligently
conducted; or

 

(h)           an
event or development has occurred that could reasonably be expected
to have a Material Adverse Effect, as determined by the Agent in
its reasonable discretion and in good faith; or

 

(i)           a
Change of Control occurs (unless such Change of Control is caused
by the exercise of the Aemetis Option or the exercise of the
Warrant); or

 

(j)           there
is filed against any Obligor any action, suit or proceeding under
any federal, provincial or state racketeering, proceeds of crime or
money laundering statute (including the Racketeer Influenced and
Corrupt Organization Act of 1970), which action, suit or proceeding
is not dismissed within ninety (90) days or any other
Anti-Terrorism Laws; or

 

(k)           any
Obligor is convicted of a criminal offence; or

 

(l)           any
of the Security Documents shall cease, for any reason, to be in
full force and effect, or any Obligor, Pledgor or other grantor
party thereto shall so assert, or any Lien or security interest
created by any of the Security Documents shall cease to be
enforceable and of the same effect and priority purported to be
created thereby; or

 

(m)           any
Obligor ceases to carry on business in the ordinary course, except
where such cessation occurs in connection with a sale of all or
substantially all of the assets of an Obligor, or a restructuring
or reorganization of an Obligor, which has been consented to by the
Agent; or

 

(n)           any
Obligor incurs any environmental liabilities which will require
expenditures, (i) for any one occurrence, in excess of $25,000, or
(ii) aggregating in any fiscal year on a consolidated basis,
$100,000, that has not otherwise been defeased by a restricted cash
deposit or reclamation or similar environmental performance bond;
or

 

(o)           failure
of any Obligor to perform or observe any term, covenant or
agreement contained in any material contract on its part to be
performed or observed where such failure could reasonably be
expected to have a Material Adverse Effect, including, without
limitation, hedging contracts, lease agreements, and other credit
agreements.

 

 

 

27

 

 

6.2           Remedies.
If any Event of Default shall have
occurred and be continuing, then, and in any such
event:

 

(a)           the
Agent may, and at the request of the Noteholders holding a majority
of the outstanding principal amount of the Term Loan and Revolving
Line shall, by notice to the Borrower, take any of the following
actions, at the same or different times: (i) terminate any unused
portion of the Revolving Line and any other commitment of the Agent
or any Noteholder to extend any credit to any Obligor, and
thereupon such unused portion of the Revolving Line and such other
commitments shall terminate immediately, and/or (ii) declare the
Term Loan and Revolving Advances then outstanding to be due and
payable in whole (or in part, in which case any principal not so
declared to be due and payable may thereafter be declared to be due
and payable), and thereupon the principal of the Term Loan and
Revolving Advances so declared to be due and payable, together with
accrued interest thereon and all fees and other obligations of the
Borrower and other Obligors accrued hereunder or under any other
Note Purchase Document, shall become due and payable immediately,
without presentment, demand, protest, notice of acceleration,
notice of intent to accelerate or other notice of any kind, all of
which are hereby expressly waived by the Obligors; provided,
however, that in the case of any event described in paragraph (e)
of Section 6.1, (x) any unused portion of the Revolving Line and
any other commitment of the Agent or any Noteholder to extend any
credit to any Obligor shall automatically terminate and (y) all
outstanding Note Indebtedness (including, without limitation, all
accrued and unpaid interest, fees and other amounts) shall
automatically become and be due and payable, without presentment,
demand, protest, notice of acceleration, notice of intent to
accelerate, or any notice of any kind, all of which are hereby
expressly waived by the Obligors;

 

(b)           the
Agent and/or any Noteholder may (and, at the request of the
Noteholders holding a majority of the outstanding principal amount
of the Term Loan and the Revolving Advances, the Agent shall) (i)
exercise any and all rights and remedies available under this
Agreement, any other Note Purchase Documents and applicable law
(including, without limitation, the enforcement of any and all
Liens created pursuant to any Security Document), and (ii) proceed
to protect and enforce its rights by an action at law, suit in
equity or other appropriate proceeding, whether for the specific
performance of any agreement contained in any Note Purchase
Document, or for an injunction against a violation of any of the
terms thereof, or in aid of the exercise of any power granted
thereby or by law or otherwise;

 

(c)           sell
the Collateral at either a public or private sale, or both, by way
of one or more contracts or transactions, for cash or on terms, in
such manner and at such places (including Obligors’ premises)
as Agent determines is commercially reasonable, and apply any
proceeds to the Note
Indebtedness in whatever manner or order Agent deems
appropriate. The Agent may sell the Collateral without giving any
warranties as to the Collateral. To the extent permitted by law,
the Agent may specifically disclaim any warranties of title or the
like. This procedure will not be considered adversely to affect the
commercial reasonableness of any sale of the Collateral. If the
Agent sells any of the Collateral upon credit, the Obligors will be
credited only with payments actually made by the purchaser,
received by the Agent, and applied to the indebtedness of the
purchaser. If the purchaser fails to pay for the Collateral, the
Agent may resell the Collateral and the Obligors shall be credited
with the proceeds of the sale;

 

(d)           the
Agent may credit bid and purchase at any public sale;

 

(e)           enforce
and realize on the Collateral;

 

(f)           apply
for the appointment of a receiver, receiver-manager, receiver and
manager, interim receiver, trustee, liquidator or conservator of
the Collateral, without notice and without regard to the adequacy
of the security for the Note
Indebtedness and without regard to the solvency of any
Obligor, any Guarantor or any other Person liable for any of the
Note Indebtedness;
and

 

(g)           Proceed
to exercise any and all rights under this Agreement or under any
other Note Purchase Document or otherwise permitted by
law.

 

6.3           Waiver
of Default. Notwithstanding
anything to the contrary in any Note Purchase Document and for the
avoidance of doubt, any reference in any Note Purchase Document to
an Event of Default existing, or having occurred and being in
continuance, shall remain an Event of Default until it has been
waived in accordance with such Note Purchase Document. If an Event
of Default shall have occurred, the Agent shall have the power to
waive any Event of Default hereunder and all the Noteholders shall
be bound by any such waiver upon such terms and conditions as the
Agent shall prescribe; provided that no delay or omission of the
Agent or any of the Noteholder to exercise any right or power
accruing upon any Default or Event of Default shall impair any such
right or power or shall be construed to be a waiver of any such
Default Event of Default or acquiescence therein; provided,
further, that no act or omission of the Agent or any Noteholder
shall extend to or be taken in any manner whatsoever to affect any
subsequent Default or Event of Default hereunder or the rights
resulting therefrom.

 

 

 

28

 

 

6.4           Enforcement
by the Noteholders. If an Event
of Default shall have occurred and be continuing, but subject to
Section 6.3:

 

(a)           the
Agent may proceed to enforce the rights of the Agent and the
Noteholders by any action, suit, remedy or proceeding authorized or
permitted by any of the Note Purchase Documents or by applicable
law or equity; and

 

(b)           no
such remedy for the enforcement of the rights of the Agent or any
of the Noteholders shall be exclusive of or dependent on any other
such remedy but any one or more of such remedies may from time to
time be exercised independently or in
combination.

 

SECTION 7. THE
AGENT

 

7.1           Appointment
and Authorization. 
Each Noteholder hereby designates and
appoints the Agent under this Agreement and the other Note Purchase
Documents and each Noteholder hereby irrevocably authorizes the
Agent, as applicable, to take such action on its behalf under the
provisions of this Agreement and each other Note Purchase Document
and to exercise such powers and perform such duties as are
expressly delegated to it by the terms of this Agreement or any
other Note Purchase Document, together with such powers as are
reasonably incidental thereto. Each Noteholder hereby irrevocably
appoints and constitutes the Agent its true and lawful attorney,
with full power of substitution, for the purposes of carrying out
any of the terms hereof, collecting or enforcing any of the Note
Indebtedness and exercising any of the rights and remedies of the
Noteholders hereunder and under the other Note Purchase Documents,
including, without limitation, for the purposes of signing and/or
recording any documents necessary to perfect, set-up, register,
maintain, release, grant discharges, amend, extend, modify,
replace, restate, or discharge the Collateral or any of the Note
Purchase Documents and instituting any actions or proceedings. The
Agent shall not be liable to Noteholders for any acts or omissions
or errors of judgment or mistakes of fact or law in its exercise of
the foregoing power, except resulting from its gross negligence or
willful misconduct as determined by a court of competent
jurisdiction on a final and non-appealable basis. The Agent agrees
to act as such on the express conditions contained in this Section.
The provisions of this Section 7.1, are solely for the benefit of
the Agent and the Noteholders, and no Obligor shall have any rights
as a third party beneficiary of any of the provisions contained
herein, but may rely on the determinations made under this Section.
Notwithstanding any provision to the contrary contained elsewhere
in this Agreement or in any other Note Purchase Document, the Agent
shall not have any duties or responsibilities, except those
expressly set forth herein, nor shall the Agent have or be deemed
to have any fiduciary relationship with any Noteholder, and no
implied covenants, functions, responsibilities, duties, obligations
or liabilities shall be read into this Agreement or any other Note
Purchase Document or otherwise exist against the Agent. Without
limiting the generality of the foregoing sentence, the use of the
term “agent” in this Agreement with reference to the
Agent is not intended to connote any fiduciary or other implied (or
express) obligations arising under agency doctrine of any
applicable law. Instead, such term is used merely as a matter of
market custom, and is intended to create or reflect only an
administrative relationship between independent contracting
parties. Except as expressly otherwise provided in this Agreement,
the Agent shall have and may use its sole discretion with respect
to exercising or refraining from exercising any discretionary
rights or taking or refraining from taking any actions which the
Agent is expressly entitled to take or assert under this Agreement
and the other Note Purchase Documents.

 

7.2           Delegation
of Duties. The Agent may execute any of its duties under this
Agreement or any other Note Purchase Document by or through agents,
mandataries, employees or attorneys-in-fact and shall be entitled
to advice of counsel concerning all matters pertaining to such
duties. The Agent shall not be responsible for the negligence or
misconduct of any agent, mandatary or attorney-in-fact that it
selects as long as such selection was made without gross negligence
or willful misconduct.

 

 

 

29

 

 

7.3           Liability
of Agent. 
Agent shall not (i) be liable to any
Noteholder for any action taken or omitted to be taken by it under
or in connection with this Agreement or any other Note Purchase
Document or the transactions contemplated hereby (except for its
own gross negligence or willful misconduct as determined by a court
of competent jurisdiction on a final and non-appealable basis), or
(ii) be responsible in any manner to any of the Noteholders for any
recital, statement, representation or warranty made by the Borrower
or any Guarantor, or any officer thereof, contained in this
Agreement or in any other Note Purchase Document, or in any
certificate, report, statement or other document referred to or
provided for in, or received by the Agent under or in connection
with, this Agreement or any other Note Purchase Document, or the
validity, effectiveness, genuineness, enforceability or sufficiency
of this Agreement or any other Note Purchase Document, or for any
failure of the Borrower or any other party to any Note Purchase
Document to perform its obligations hereunder or thereunder. Agent
shall not be under any obligation to any Noteholder to ascertain or
to inquire as to the observance or performance of any of the
agreements contained in, or conditions of, this Agreement or any
other Note Purchase Document, or to inspect the properties, books
or records of the Borrower or any of the
Guarantors.

 

7.4           Successor
Agent. 
The Agent may resign as Agent upon
thirty (30) days’ written notice to the Noteholders and the
Borrower, such resignation to be effective upon the acceptance of a
successor agent to its appointment as Agent. If the Agent resigns
under this Agreement, subject to the proviso in the preceding
sentence, the Noteholders shall, by majority vote (with number of
votes based on dollars of funds advanced through the Term Loan and
Revolving Advances) appoint from among the Noteholders a successor
agent for the Noteholders. If no successor agent is appointed prior
to the effective date of the resignation of the Agent, the Agent
may appoint, after consulting with the Noteholders, a successor
agent from among the Noteholders. If no successor Agent has
accepted the appointment as Agent by the date which is thirty (30)
days following a notice of resignation, the retiring Agent’s
resignation shall nevertheless thereupon become effective and the
Noteholders shall perform all of the duties of the Agent hereunder
until such time, if any, as the Noteholders appoint a successor
Agent as provided for above. Upon the acceptance of its appointment
as successor agent hereunder, such successor agent shall succeed to
all the rights, powers and duties of the retiring agent and the
term “Agent” shall mean such successor agent and the
retiring agent’s appointment, powers and duties as agent
shall be terminated. After any retiring agent’s resignation
hereunder as agent, the provisions of this Section shall inure to
its benefit as to any actions taken or omitted to be taken by it
while it was agent under this Agreement.

 

7.5           Credit
Decision. 
Each Noteholder acknowledges that
Agent has not made any representation or warranty to it, and that
no act by the Agent hereinafter taken, including any review of the
affairs of the Borrower and the Guarantors, shall not be deemed to
constitute any representation or warranty by Agent to any
Noteholder. Each Noteholder represents to the Agent that it has,
independently and without reliance upon Agent and based on such
documents and information as it has deemed appropriate, made its
own appraisal of, and investigation into, the business, prospects,
operations, Property, financial and other condition and
creditworthiness of the Borrower and each of the Guarantors, and
all applicable bank regulatory laws relating to the transactions
contemplated hereby, and made its own decision to enter into this
Agreement and to extend credit to the Borrower. Each Noteholder
also represents that it will, independently and without reliance
upon Agent and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit
analysis, appraisals and decisions in taking or not taking action
under this Agreement and the other Note Purchase Documents, and to
make such investigations as it deems necessary to inform itself as
to the business, prospects, operations, Property, financial and
other condition and creditworthiness of the Borrower and each of
the Guarantors. The Agent shall not have any duty or responsibility
to provide any Noteholder with any credit or other information
concerning the business, prospects, operations, Property, financial
and other condition or creditworthiness of the Borrower and each of
the Guarantors which may come into the possession of the
Agent.

 

7.6           Agency
for Perfection. 
Each Noteholder hereby appoints each
other Noteholder and the Agent as agent and mandatary for the
purpose of perfecting and setting-up the Noteholders’
security interest in and Lien on assets which can be perfected or
set-up by delivery and possession. Should any Noteholder (other
than the Agent) obtain delivery and possession of any such
Collateral, such Noteholder shall notify the Agent thereof, and,
promptly upon the Agent’s request shall deliver such
collateral to the Agent or in accordance with the Agent’s
instructions.

 

 

 

30

 

 

7.7           Concerning
the Collateral and the Related Note Purchase
Documents. Each Noteholder
authorizes and directs the Agent to enter into this Agreement and
the other Note Purchase Documents for the ratable benefit and
obligation of the Agent and the Noteholders, including any
Intercreditor Agreement or arrangement described in, or from time
to time required pursuant to, this Agreement and any such
Intercreditor Agreement is binding upon such Noteholders. Each
Noteholder agrees that any action taken by the Agent, as
applicable, in accordance with the terms of this Agreement or the
other Note Purchase Documents, and the exercise by the Agent, as
applicable, of its powers set forth therein or herein, together
with such other powers that are reasonably incidental thereto,
shall be binding upon all of the Noteholders. None of the
Noteholders shall have any right of action whatsoever against the
Agent as a result of any action taken by the Agent pursuant to this
Section or in accordance with the terms of any Intercreditor
Agreement. The Agent may affect any amendment or supplement to any
Intercreditor Agreement or arrangement described in, or from time
to time required pursuant to, this Agreement that is for the
purpose of adding the holders of Indebtedness under any other
secured or unsecured Indebtedness permitted to be incurred under
this Agreement, including on a junior priority basis to the Note
Indebtedness, as contemplated by the terms of such Intercreditor
Agreement or arrangement described in, or required from time to
time pursuant to, this Agreement, as
applicable.

 

7.8           Agent
May File Bankruptcy Disclosure and Proofs of
Claim. In case of the pendency
of any bankruptcy, insolvency, winding-up or other judicial
proceedings relative to any Obligor, the Agent (irrespective of
whether the principal of any Loan or other Note Indebtedness shall
then be due and payable as herein expressed or by declaration or
otherwise and irrespective of whether the Agent or any Noteholder
shall have made any demand on any Obligor) shall be entitled and
empowered (but not obligated) by intervention in such proceeding or
otherwise:

 

(a)           to
file and prove a claim for the whole amount of the principal and
interest owing and unpaid in respect of the Term Loan, Revolving
Advances and all other Note Indebtedness that are owing and unpaid
and to file such other papers or documents as may be necessary or
advisable in order to have the claims of the Agent and the
Noteholders (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Agent, the Noteholders
and their respective agents, advisors and counsel) allowed in such
proceeding; and

 

(b)           to
collect and receive any monies or other property payable or
deliverable on any such claims and, subject to the terms hereof, to
distribute the same;

 

and any custodian, receiver, assignee, trustee, liquidator,
sequestrator or other similar official in any such judicial
proceeding is hereby authorized by the Noteholders to make such
payments to the Agent and, in the event that the Agent shall
consent to the making of such payments directly to the Noteholders,
to pay to the Agent any amount due for the reasonable compensation,
expenses, disbursements and advances of the Agent and its agents
and counsel, and any other amounts due to the Agent under the Note
Purchase Documents.

 

SECTION 8.  
MISCELLANEOUS.

 

8.1           Amendments,
Etc. No amendment or waiver of
any provision of this Agreement or the other Note Purchase
Documents, nor consent to any departure by the Borrower or the
Obligor party to such Note Purchase Document, shall in any event be
effective unless the same shall be in writing and signed by the
Agent, the Borrower and the Obligor party to such Note Purchase
Document and then such waiver or consent shall be effective only in
the specific instance and for the specific purpose for which
given.

 

8.2           Notices.
All notices and other communications provided for herein shall be
in writing and shall be delivered by hand or overnight courier
service, mailed by certified or registered mail or sent by
facsimile, in each case, to the address and to the attention of a
party as advised by such party to the other parties from time to
time.

 

Notices sent by hand or overnight courier service, or mailed by
certified or registered mail, shall be deemed to have been given
when received; notices sent by electronic mail (e-mail) or
facsimile shall be deemed to have been given when sent (except
that, if not given during normal business hours for the recipient,
shall be deemed to have been given at the opening of business on
the next Business Day for the recipient).

 

 

 

31

 

 

8.3           No
Waiver; Remedies. No failure on
the part of any party to exercise, and no delay in exercising, any
right hereunder shall operate as a waiver thereof; nor shall any
single or partial exercise of any right hereunder preclude any
other or further exercise thereof or the exercise of any other
right. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law or in any of the other
Note Purchase Documents.

 

8.4           Right
of Setoff. The Agent is hereby
authorized at any time and from time to time, to the fullest extent
permitted by law, to set off, compensate and apply any and all
deposits (general or special, time or demand, provisional or final)
at any time held and other Indebtedness or other obligations at any
time owing by the Agent to or for the credit or the account of the
Borrower against any and all of the Note Indebtedness of the
Borrower or any other Obligor now or hereafter existing under this
Agreement or any other Note Purchase Document, whether or not the
Agent shall have made any demand under this Agreement and although
such Note Indebtedness may be unmatured. The rights of the Agent
under this Section are in addition to other rights and remedies
(including, without limitation, other rights of setoff) which the
Agent may have.

 

8.5           Waiver;
Etc. The Borrower and each
surety, guarantor, endorser and other party ever liable for payment
of this Agreement or any part hereof jointly and severally waive
notice, presentment, demand for payment, protest, notice of protest
and non-payment or dishonor, notice of acceleration, notice of
intent to accelerate, notice of intent to demand, diligence in
collecting, grace, and all other formalities of any kind, and
consent to all extensions without notice for any period or periods
of time and partial payments, before or after maturity, and any
impairment of any collateral securing this Agreement, all without
prejudice to the Agent. The Agent shall similarly have the right to
deal in any way, at any time, with one or more of the foregoing
parties without notice to any other party, and to grant any such
party any extensions of time for payment of any of said
Indebtedness or other Note Indebtedness, or to release or
substitute part or all of the collateral securing this Agreement,
or to grant any other indulgences or forbearances whatsoever,
without notice to any other party and without in any way affecting
the personal liability of any party hereunder.

 

8.6           Assignments.  
Neither Borrower nor any Guarantor may
assign or transfer any of its rights or delegate any of its
obligations under this Agreement or any of the other Note Purchase
Documents without the Agent’s prior written consent. Any
Noteholder (the “Assigning
Noteholder”) may sell or
otherwise transfer or assign all or any part of its interest in
this Agreement and the other Note Purchase Documents to any Person
(hereinafter an “Assignee”) without any notice to or consent from the
Borrower or any Guarantor, but, with the prior consent of the
Agent. Borrower and the other Guarantors authorize Agent and
Noteholders to deliver to potential assignees or participants
Borrower’s and the Guarantors’ financial information
and all other information delivered to Agent and Noteholders in
furtherance of or pursuant to the terms of this Agreement, the
whole subject to usual and customary confidentiality agreements
being entered into with such assignees or participants that are no
less restrictive than the confidentiality provisions in the Note
Purchase Documents. An assignment shall become effective when the
Borrower has been notified of it by the Assigning Noteholder and
has received from the Assignee an undertaking (addressed to all the
parties to this Agreement) to be bound by this Agreement and the
other Note Purchase Documents and to perform the obligations
assigned to it, in form and substance as set forth in
Schedule
8.6. Any such Assignee shall be
and be treated as a Noteholder for all purposes of this Agreement
and the other Note Purchase Documents, shall be entitled to the
full benefit hereof and shall be subject to the obligations to the
same extent as if it were an original party in respect of the
rights or obligations assigned to it and the Assigning Noteholder
shall be released and discharged accordingly and to the same
extent.

 

8.7           Governing
Law. THIS AGREEMENT AND THE
RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND ANY CLAIMS,
CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR
TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OTHER NOTE PURCHASE DOCUMENT (EXCEPT, AS TO ANY
OTHER NOTE PURCHASE DOCUMENT, AS EXPRESSLY SET FORTH THEREIN) AND
THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK WITHOUT RESPECT TO ITS CONFLICTS OF LAWS
PRINCIPLES.

 

 

 

32

 

 

8.8           Jurisdiction,
Etc. (a) EACH PARTY IRREVOCABLY AND UNCONDITIONALLY AGREES
THAT IT WILL NOT COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF
ANY KIND OR DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN
CONTRACT OR IN TORT OR OTHERWISE, AGAINST THE AGENT, ANY
NOTEHOLDER, OR ANY RELATED PARTY OF THE FOREGOING IN ANY WAY
RELATING TO THIS AGREEMENT OR ANY OTHER NOTE PURCHASE DOCUMENT OR
THE TRANSACTIONS RELATING HERETO OR THERETO, IN ANY FORUM OTHER
THAN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY
AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF
NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, AND EACH OF THE
PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE
JURISDICTION OF SUCH COURTS AND AGREES THAT ALL CLAIMS IN RESPECT
OF ANY SUCH ACTION, LITIGATION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE
PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION,
LITIGATION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN
OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER NOTE
PURCHASE DOCUMENT SHALL AFFECT ANY RIGHT THAT THE AGENT OR ANY
NOTEHOLDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING
RELATING TO THIS AGREEMENT OR ANY OTHER NOTE PURCHASE DOCUMENT
AGAINST THE BORROWER OR ANY OTHER OBLIGOR OR ITS PROPERTIES IN THE
COURTS OF ANY JURISDICTION.

 

(b)           

Each
party irrevocably and unconditionally waives, to the fullest extent
permitted by applicable law, any objection that it may now or
hereafter have to the laying of venue of any action or proceeding
arising out of or relating to this Agreement or any other Note
Purchase Document in any court referred to in paragraph (a) of this
Section. Each of the parties hereto hereby irrevocably waives, to
the fullest extent permitted by applicable law, the defense of an
inconvenient forum to the maintenance of such action or proceeding
in any such court.

 

(c)           

Each
party hereto irrevocably consents to service of process in the
manner provided for notices in Section 8.2. Nothing in this
Agreement will affect the right of any party hereto to serve
process in any other manner permitted by applicable
law.

 

(d)           

Each
party agrees (i) to not assert any claim against the Agent, any
Noteholder or any Related Party of the foregoing for special,
indirect, consequential or punitive damages arising out of or
otherwise relating to or alleged in connection with this Agreement
or any of the other Note Purchase Documents, any of the
transactions contemplated herein or in any other Note Purchase
Document or the actual or proposed use of the Term Loan and
Revolving Line evidenced by this Agreement and (ii) that the Agent,
the Noteholders and their respective Related Parties shall have no
responsibility or liability to any Obligor or any of its Related
Parties for any such damages.

 

8.9           Indemnification. 
(a) Borrower shall indemnify the
Agent, each Noteholder and each Related Party of any of the
foregoing Persons (each such Person being called an
“Indemnitee”) against, and hold each Indemnitee
harmless from, any and all losses, claims, damages, liabilities and
related costs and expenses (including the fees, charges and
disbursements of any counsel for any Indemnitee), incurred by any
Indemnitee or asserted against any Indemnitee by any Person
(including the Borrower) arising out of, in connection with, or as
a result of (i) the execution or delivery of this Agreement, any
other Note Purchase Document or any agreement or instrument
contemplated hereby or thereby, the performance by the parties
hereto of their respective obligations hereunder or thereunder or
the consummation of the transactions contemplated hereby or
thereby, (ii) the use or proposed use of the proceeds therefrom, or
(iii) any actual or prospective claim, litigation, investigation or
proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory, whether brought by a third
party or by any Obligor, and regardless of whether any Indemnitee
is a party thereto; provided that such indemnity shall not, as to
any Indemnitee, be available to the extent that such losses,
claims, damages, liabilities or related expenses (x) are determined
by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful
misconduct of such Indemnitee or (y) result from a claim brought by
any Obligor against an Indemnitee for a material breach in bad
faith of such Indemnitee’s obligations hereunder or under any
other Note Purchase Document, if any such Obligor has obtained a
final and nonappealable judgment in its favor on such claim as
determined by a court of competent
jurisdiction.

 

 

 

33

 

 

(b)           Borrower
shall not, without the prior written consent of the applicable
Indemnitee(s), effect any settlement of any pending or threatened
claim, litigation, investigation or proceeding in respect of which
such Indemnitee is or could have been a party and indemnity could
have been sought hereunder by such Indemnitee, unless such
settlement (i) includes an unconditional release of such Indemnitee
from all liability or claims that are the subject matter of such
proceeding and (ii) does not include a statement as to or an
admission of fault, culpability, or a failure to act by or on
behalf of such Indemnitee.

 

8.10           Acknowledgements.
Borrower hereby acknowledges that:

 

(a)           it
has been advised by counsel in the negotiation, execution and
delivery of this Agreement and the other Note Purchase
Documents;

 

(b)         
neither the Agent nor any Noteholder
has any fiduciary relationship with or duty to Borrower arising out
of or in connection with this Agreement or any of the other Note
Purchase Documents, and the relationship between Agent and
Noteholders, on one hand, and the Borrower, on the other hand, in
connection herewith or therewith is solely that of debtor and
creditor; and

 

(c)           no
joint venture is created hereby or by the other Note Purchase
Documents or otherwise exists by virtue of the transactions
contemplated hereby among the Agent and the Noteholders or among
the Borrower, the Agent and the Noteholders.

 

8.11           Severability.
Any provision of this Agreement that is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such
prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other
jurisdiction.

 

8.12           Survival.
All covenants, agreements, representations and warranties made by
the Obligors herein and in the certificates or other instruments
delivered in connection with or pursuant to this Agreement shall be
considered to have been relied upon by the Agent and the
Noteholders and shall survive the execution and delivery of this
Agreement and the making of the Term Loan and Revolving Advances,
regardless of any investigation made by the Agent or any Noteholder
or on its behalf and notwithstanding that the Agent or any
Noteholder may have had notice or knowledge of any Default or
incorrect representation or warranty at the time any credit is
extended hereunder, and shall continue in full force and effect as
long as the principal of or any accrued interest on the Loans or
any other amount payable under this Agreement is outstanding and
unpaid.

 

8.13           Confidentiality.
The Agent and the Noteholders agree to treat, and cause each of its
Affiliates to whom such information is disclosed by the Agent or
any Noteholder to treat, all non-public information provided to the
Agent and/or any Noteholder by any Obligor as confidential
information in accordance with customary banking and finance
industry practices.

 

8.14           Headings.
Section headings used herein are for convenience of reference only,
and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement or any other Note
Purchase Document.

 

 

 

34

 

 

8.15           WAIVER
OF JURY TRIAL. EACH PARTY HERETO HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR ANY OTHER NOTE PURCHASE DOCUMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER
PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES
HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER
NOTE PURCHASE DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS SECTION.

 

8.16           Entire
Agreement. This Agreement and the other Note Purchase
Documents represent the final, entire agreement between the parties
regarding the subject matter hereof and may not be contradicted by
evidence of prior, contemporaneous, or subsequent oral agreements
of the parties. There are no unwritten oral agreements between the
parties.

 

8.17           Marshaling,
Payments Set Aside. Neither the
Agent nor any Noteholder shall be under any obligation to marshal
any assets in favor of any Obligor or any other Person or against
or in payment of any or all of the Note Indebtedness. To the extent
that any payment by or on behalf of any Obligor is made to the
Agent or any Noteholder or the Agent or any Noteholder exercises
its right of setoff or enforces any security interest, and such
payment or the proceeds of such enforcement or setoff or any part
thereof is subsequently invalidated, declared to be fraudulent or
preferential, set aside or required (including pursuant to any
settlement entered into by the Agent or any Noteholder in its
discretion) to be repaid or returned to a trustee, receiver or any
other party, in connection with any proceeding under any
bankruptcy, insolvency or similar laws affecting creditors’
rights generally or otherwise, then (a) to the extent of such
payment so returned or such recovery, as applicable, the obligation
or part thereof originally intended to be satisfied, and all Liens,
rights and remedies therefor or related thereto, shall be revived
and continued in full force and effect as if such payment had not
been made or such setoff or other enforcement action, as
applicable, had not occurred, and (b) each Noteholder severally
agrees to pay to the Agent upon demand its applicable share
(without duplication) of any amount so recovered from or repaid by
the Agent. The obligations of the Noteholders under clause (b) of
the preceding sentence shall survive the payment in full of the
Note Indebtedness and the termination of this
Agreement.

 

8.18           USA
Patriot Act Notice. To the
extent subject to the PATRIOT Act (as hereinafter defined), each
Noteholder and the Agent (for itself and not on behalf of any
Noteholder) hereby notifies the Obligors that pursuant to the
requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56
(signed into law October 26, 2001)) (the “PATRIOT Act”), it is required to obtain, verify and
record information that identifies each Obligor, which information
includes the name and address of each Obligor and other information
that will allow such Noteholder or Agent, as applicable, to
identify each Obligor in accordance with the PATRIOT Act. Borrower
shall, promptly following a request by the Agent or any Noteholder,
provide all documentation and other information that the Agent or
such Noteholder requests in order to comply with its ongoing
obligations under applicable “know your customer” and
anti-money laundering rules and regulations, including the PATRIOT
Act.

 

[Signature Pages Follow]

 

 

35

 

IN WITNESS
WHEREOF, the Borrower, the
Agent and the Noteholders have caused this Agreement to be duly
executed as of the date first above written.

 

	
 

	
 

	

BORROWER:

 

	
 

	

GOODLAND ADVANCED FUELS, INC.

 

	
 

	
 

	
 

	

By:

	

 /s/ Michael L. Peterson

	
 

	
 

	
 

	

Name: Michael L. Peterson

	
 

	
 

	
 

	

Title: President and CEO

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

	
 

	
 

	
 

	

Address:

 

	

17
Canary Court

Danville,
CA 94526

	
 

	
 

	
 

	
 

	

Attention: Michael
Peterson

	
 

	
 

	
 

	
 

	

Facsimile: ___________________

e-mail:  michael@petersonhome.net

 

 

 

 

[signatures follow on next page]

 

 

 

 

[Signature
Page – Note Purchase Agreement]

 

	
 

	
 

	

AGENT:

 

	
 

	

THIRD EYE CAPITAL CORPORATION

 

	
 

	
 

	
 

	

By:

	

/s/ Arif N. Bhalwani

	
 

	
 

	
 

	

Name: Arif N.
Bhalwani

	
 

	
 

	
 

	

Title: Managing
Director

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

	
 

	
 

	
 

	

Address:

 

	

Brookfield Place, TD Canada Trust Tower

161 Bay Street, Suite 3930

Toronto, Ontario, M5J 2S1

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

Attention: Arif N. Bhalwani

Facsimile: (416) 981-3393

 

	
 

	
 

	
 

	
 

	

e-mail: ops@thirdeyecapital.com

 

 

 

 

[signatures follow on next page]

 

 

 

 

 

 

[Signature
Page – Note Purchase Agreement]

 

 

 

	
 

	

NOTEHOLDER:

 

	

Commitment
in Revolving Line:

$500,000

 

Pro
Rata Share of Revolving Line:

5%

	

THIRD EYE CAPITAL

CREDITOPPORTUNITIES FUND – INSIGHT FUND

by its Managing General Partner

THIRD EYE CAPITAL CREDIT OPPORTUNITIES S.AR.L.

	

 

Commitment
in Term Loan:

	

Per:

	
 /s/ Paul de
Quant

	

$750,000

	
 

	

Name:Paul
de Quant

	

 

Pro
Rata Share in Term Loan:

	
 

	

Title:
Manager

	

5%

	

Per:

	
/s/ Arif N. Bhalwani
	
 

	
 

	

Name:
Arif N. Bhalwani

Title:
Manager

 

	
 

	

Address:

	

19, Rue de Bitbourg

L-1273 Luxembourg

 

	
 

	
 

	

Attention:

	
 

	
 

	

Facsimile:

	
 

	

e-mail:

	

tec@mdo-services.com

	
 

	
 

	

Commitment
in Revolving Line:

$4,000,000

 

Pro Rata Share of Revolving Line:

40%

 

	

THIRD EYE CAPITAL ALTERNATIVE CREDIT TRUST

by its Manager

THIRD EYE CAPITAL MANAGEMENT INC.

	

Commitment
in Term Loan:

	

Per:

	

/s/ Arif N. Bhalwani

	

$6,000,000

	
 

	

Name: 
Arif N. Bhalwani

	

 

Pro
Rata Share in Term Loan:

	
 

	

Title:
Portfolio Manager

	

40%

	

Address:

	

3930 – 161 Bay Street

Toronto, ON M5J 2S1

 

	
 

	
 

	

Attention:
Arif N. Bhalwani

	
 

	
 

	

Facsimile:
416 981 3393

	
 

	

e-mail:

	

arif@thirdeyecapital.com

 

 

 

	
 

	

NOTEHOLDER:

 

	

Commitment
in Revolving Line:

$5,500,000

 

Pro Rata Share of Revolving Line:

55.0%

 

	

MBI/TEC PRIVATE DEBT OPPORTUNITIES FUND I,
L.P.,

herein acting by its general partner

MBI/TEC PRIVATE DEBT GP L.P.,

itself acting by its general partner

MBI/TEC PRIVATE DEBT GP INC.

	

Commitment
in Term Loan:

	

Per:

	

/s/ Arif N. Bhalwani

	

$8,250,000

	
 

	

Name:
Arif N. Bhalwani

	

 

Pro
Rata Share in Term Loan:

	
 

	

Title:
President and CEO

	

55.0%

	

Address:

	

3930 – 161 Bay Street

Toronto, ON M5J 2S1

 

	
 

	
 

	

Attention:
Arif N. Bhalwani

	
 

	
 

	

Facsimile:
416 981 3393

	
 

	

e-mail:

	

mbitecgp@thirdeyecapital.com

 

 

 

 

Schedule 1.1(a)

 

Commitments

 

Term Loan Commitment

 

	

Name of Noteholder

 

	

Term Loan Commitment

 

	

Term Loan Commitment Percentage

 

	

Third Eye Capital Credit Opportunities Fund – Insight
Fund

 

	

$750,000

 

	

5.0%

 

	

Third Eye Capital Alternative Credit Trust

 

	

$6,000,000

 

	

40.0%

 

	

MBI/TEC Private Debt Opportunities Fund I, L.P.

 

	

$8,250,000

 

	

55.0%

 

	

Total:

 

	

$15,000,000

 

	

100%

 

 

 

Revolving Line Commitment

 

	

Name of Noteholder

 

	

Revolving Line Commitment

 

	

Revolving Line Commitment Percentage

 

	

Third Eye Capital Credit Opportunities Fund – Insight
Fund

 

	

$500,000

 

	

5.0%

 

	

Third Eye Capital Alternative Credit Trust

 

	

$4,000,000

 

	

40.0%

 

	

MBI/TEC Private Debt Opportunities Fund I, L.P.

 

	

$5,500,000

 

	

55.0%

 

	

Total:

 

	

$10,000,000

 

	

100%

 

 

 

 

 

Schedule 1.1(b)

 

Form of Request for Revolving Advance

 

REQUEST FOR REVOLVING ADVANCE

 

TO: 

THIRD EYE CAPITAL CORPORATION, AS AGENT FOR AND ON BEHALF OF THE
NOTEHOLDERS (as such terms are hereinafter defined)

 

 

1.            

This Request for Revolving Advance is delivered to
you pursuant to the Note Purchase Agreement, dated as of June 30,
2017 (as amended, varied, supplemented, restated, renewed or
replaced at any time and from time to time, the
“Note
Purchase Agreement”), entered into between GOODLAND ADVANCED FUELS,
INC., a Delaware corporation
(together with its successors and permitted assigns, the
“Borrower”), the noteholders made a party thereto
from time to time (the “Noteholders”), and THIRD EYE CAPITAL
CORPORATION, as administrative
agent and collateral agent for and on behalf of the Noteholders (in
such aforesaid capacities, or any successor or assign in such
capacities, the “Agent”). All capitalized terms used and not
otherwise defined in this Request for Revolving Advance shall have
the respective meanings set forth in the Note Purchase
Agreement.

 

2.            

The
Borrower hereby irrevocably requests a Loan, in accordance with the
applicable terms and conditions of the Note Purchase Agreement, as
follows:

 

(a)            

Proposed Drawdown Date (which shall be a Business
Day):                                                                                                                      

●

 

(b)            

Aggregate principal amount of Revolving
Advance:                                                                                                            

$●

 

3.            

All
of the conditions set forth in Section 3.2 of the Note Purchase
Agreement have been complied with.

 

4.            

The
use of proceeds of the Loan will be as indicated in the Schedule
hereto.

 

Dated this ●
day of● 201●.

 

 

	
 

	

 

GOODLAND ADVANCED FUELS, INC.

 

	

	By:	
 

	
 

	
 

	

Name:

Title:

 

 

 

Schedule 4(e)

 

Chief Executive Office and Other Locations

 

Borrower

 

1. 

The
chief executive office of the Borrower is located at the following
address:

 

17
Canary Court

Danville,
CA 94526

 

2. 

The
address of the registered office of the Borrower in the
jurisdiction of its organization (as identified in the certificate
of incorporation of the Borrower) is the following:

 

Incorporating
Services, Ltd.

3500
S. DuPont Hwy

City
of Dover, Delaware 19901

 

3. 

Other
locations where the Borrower maintains any Property
are:

 

200
Energy Park Drive

Goodland,
Kansas 67735

 

Other Obligors

 

1. 

The
chief executive office of the Guarantors is located at the
following address:

 

20400
Stevens Creek Blvd, Suite 700

Cupertino, CA
95014

 

 

2. 

The
address of the registered office of the Guarantors in the
jurisdiction of each of their organization (as identified in the
certificate of incorporation of each Guarantor) is the
following:

 

615
South Dupont Hwy

Dover,
Delaware, 19901

 

3. 

Other
locations where the Guarantors maintain any Property
are:

 

_____________________

_____________________

_____________________

 

 

 

 

 

 

 

 

Schedule 5.1(c)

 

Form of Compliance Certificate

 

 

TO:      

Third
Eye Capital Corporation, as Agent

 

AND
TO:   

The
Noteholders

 

RE: 

Compliance Certificate for the [fiscal year / quarter]
ended ________________________ (the
“Statement
Date”)

 

The undersigned, being a Responsible Officer,
refers to that certain Note Purchase Agreement, dated as of June
30, 2017 (as amended, varied, supplemented, restated, renewed or
replaced at any time and from time to time, the
“Note
Purchase Agreement”;
capitalized terms used but not defined herein having the meanings
set forth therein), among the Noteholders from time to time party
thereto, Third Eye Capital Corporation, as administrative agent and
collateral agent for and on behalf of the Noteholders (in such
aforesaid capacities, or any successor or assign in such
capacities, the “Agent”), and Goodland Advanced Fuels, Inc., as
the borrower (the “Borrower”).

 

1. 

I
have read the provisions of the Note Purchase Agreement and other
Note Purchase Documents which are relevant to this Compliance
Certificate and have made or caused to be made such examinations or
investigations as are necessary to enable me to express an informed
opinion on the matters contained in this Compliance
Certificate.

 

2. 

The representations and warranties of the Borrower
contained in Section 4
of the Note Purchase Agreement, or
which are contained in any document furnished at any time under or
in connection with the Note Purchase Documents, are true and
correct on and as of the date hereof, except to the extent that
such representations and warranties specifically refer to an
earlier date, in which case they are true and correct as of such
earlier date.

 

3. 

The Borrower hereby
certifies and warrants to you that the following is a true and
correct computation as at the date hereof of the ratio contained in
Section 5.2(l) of the Note Purchase Agreement:

 

Minimum
Ratio The ratio of: (a) the sum
of (i) the most recent Mortgaged Property Market Value, and (ii)
the most recent Riverbank Project Value to (b) the Note
Indebtedness for the quarter ended on the Statement Date was
___:1.00 which was in compliance with the requirement under Section
5.2(l) of the Note Purchase Agreement.

 

4. 

The Borrower
further certifies to you that no Event of Default has occurred or
is occurring.

 

5. 

The financial
statements delivered herewith pursuant to Section 5.1(c)(1) or (2),
as applicable, of the Note Purchase Agreement for the period ended
as of the Statement Date fairly
present in all material respects such Borrower’s financial
condition as of the Statement Date and such Borrower’s
results of operations for the period then ended. There has not been
a material adverse change in the financial condition of Borrower
since the Statement Date.

 

 

 

 

 

IN WITNESS WHEREOF, the Borrower has
caused this Compliance Certificate to be executed and delivered by
its duly authorized officer on [DATE].

 

	
 

	
 

	

GOODLAND ADVANCED FUELS, INC.

 

 

By:
_________________________________

 

Title:
Chief Executive Officer

 

 

 

 

 

 

Schedule 5.1(i)

 

Use of Proceeds

 

The Term Loan, the Revolving Advances and other advances or
extensions of credit made to or for the benefit of any Obligor
under the Note Purchase Agreement will be used solely for the
following purposes:

 

1) 

With
respect to the Term Loan made to the Borrower on the Closing Date,
for the purposes of the Borrower paying the purchase price to
acquire the Mortgaged Property.

 

2) 

With
respect to any Revolving Advances made to the Borrower for its on
behalf or on behalf of an Obligor pursuant to the Revolving
Intercompany Note, for the purposes of (a) the prepayment of
interests on the Term Loan in accordance with the Agreement, (b)
paying the fees and expenses associated with the transactions
contemplated by the Note Purchase Documents (c) making Approved
Expenditures in accordance with the terms of the Agreement, which
shall be no less than $2,500,000 with respect to the Riverbank
Project, and (d) financing the Borrower’s working capital and
general corporate requirements that are in each case approved by
the Agent, including, without limitation, payments of interest and
other fees and expenses in respect of the Term Loan, intercompany
advances by the Borrower in accordance with the Revolving
Intercompany Note or on its behalf and the payment of audit,
accounting, legal services, physical security, taxes, utilities,
insurance and costs of employees and independent contractors, and
other reasonable expenses of operations and maintenance related to
the Mortgaged Property, the Goodland Project and the Riverbank
Project.

 

 

 

 

Schedule 8.6

 

Form of Assignment and Acceptance Agreement

 

This ASSIGNMENT AND ACCEPTANCE
AGREEMENT (this
“Assignment and
Acceptance”) dated as
of ● and is made between ● (the
“Assignor”) and ● (the
“Assignee”).

 

RECITALS

 

WHEREAS, the Assignor is party to that certain Note Purchase Agreement,
dated as of June 30, 2017 (as amended, varied, supplemented,
restated, renewed or replaced at any time and from time to time,
the “Note Purchase
Agreement”), among the
Noteholders from time to time party thereto (such parties, together
with their respective successors and permitted assigns, are
referred to hereinafter each individually as a
“Noteholder” and collectively as the
“Noteholders”), Third Eye Capital Corporation, as
administrative agent and collateral agent for and on behalf of the
Noteholders (in such aforesaid capacities, or any successor or
assign in such capacities, the “Agent”), and Goodland Advanced Fuels, Inc., as
the borrower (the “Borrower”).

 

WHEREAS, the Assignor has made a Term Loan and a
Revolving Line Commitment to the Borrower, of which an aggregate
principal amount of $● is
currently outstanding on the date hereof (the
“Outstanding
Amount”);

 

WHEREAS, in accordance with Section 8.6 of the Note
Purchase Agreement, the Assignor wishes to assign to the
Assignee [part of the] [all]
rights and obligations of the Assignor
under the Note Purchase Agreement, in an amount equal to (a)
$●of the Outstanding Amount (the
“Assigned
Amount”) on the terms and
subject to the conditions set forth herein and the Assignee is
required under the Note Purchase Agreement to accept assignment of
such rights and to assume such obligations from the Assignor on
such terms and subject to such conditions.

 

NOW,
THEREFORE, in consideration of
the foregoing and the mutual agreements contained herein, the
parties hereto agree as follows:

 

1. 

Assignment
and Acceptance

 

(a) 

Subject
to the terms and conditions of this Assignment and Acceptance, (i)
the Assignor hereby sells, transfers and assigns to the Assignee
and (ii) the Assignee hereby purchases, assumes and undertakes from
the Assignor, without recourse and without representation or
warranty (except as provided in this Assignment and Acceptance) the
(A) Assigned Amount and (B) all related rights, benefits,
obligations, liabilities and indemnities of the Assignor under and
in connection with the Note Purchase Agreement and the other Note
Purchase Documents.

(b) 

With
effect on and after the Effective Date (as defined in Section 5
hereof), the Assignee shall be a party to the Note Purchase
Agreement and succeed to all of the rights and be obligated to
perform all of the obligations of a Noteholder under the Note
Purchase Agreement, including the requirements concerning
confidentiality and the payment of indemnification, and acquire the
rights of the Assignor with respect to the Assigned Amount. The
Assignee agrees that it will perform in accordance with their terms
all of the obligations which by the terms of the Note Purchase
Documents are required to be performed by it as a Noteholder. It is
the intent of the parties hereto that the Assigned Amount shall, as
of the Effective Date, be assigned to the Assignee and the Assignor
shall relinquish its rights and be released from its obligations
under the Note Purchase Agreement in respect thereof.

 

 

 

 

 

 

2. 

Payments

 

(a) 

As consideration for the sale, assignment and
transfer contemplated in Section 1 hereof, the Assignee shall pay
to the Assignor on the Effective Date in immediately available
funds an amount equal to $ ●.

 

3. 

Reallocation
of Payments

 

Any interest, fees and other payments accrued to the Effective Date
with respect to the interests and obligations assigned to and
assumed by the Assignee hereunder shall be for the account of the
Assignor. Any interest, fees and other payments accrued on and
after the Effective Date with respect to the interests and
obligations assigned to and assumed by the Assignee hereunder shall
be for the account of the Assignee. Each of the Assignor and the
Assignee agrees that it will hold in trust for the other party any
interest, fees and other amounts which it may receive to which the
other party is entitled pursuant to the preceding two sentences and
pay to the other party any such amounts which it may receive
promptly upon receipt.

 

4. 

Independent
Credit Decision

 

The Assignee (a) acknowledges that it has received a copy of the
Note Purchase Agreement and the Schedules and Exhibits thereto,
together with copies of the most recent financial statements of the
Borrower and other Obligors, and such other documents and
information as it has deemed appropriate to make its own credit and
legal analysis and decision to enter into this Assignment and
Acceptance; and (b) agrees that it will, independently and without
reliance upon the Assignor, the Agent or any other Noteholder and
based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit and legal
decisions in taking or not taking action under the Note Purchase
Agreement.

 

5. 

Effective
Date: Notices

 

(a) 

As between the parties hereto, the effective date
for this Assignment and Acceptance shall be ● (the
“Effective
Date”); provided that the
following conditions precedent have been satisfied on or before the
Effective Date:

 

(i) 

this
Assignment and Acceptance shall be executed and delivered by the
Assignor and the Assignee;

 

(ii) 

the
consent of the Agent required for an effective assignment of the
Assigned Amount as contemplated hereunder shall have been duly
obtained and shall be in full force and effect as of the Effective
Date; and

 

(iii) 

the
Assignee shall pay to the Assignor all amounts due to the
Assignor;

 

(b) 

Promptly
following the execution of this Assignment and Acceptance, the
Assignor shall deliver to the Agent for acknowledgment by the
Agent, a Notice of Assignment in the form attached hereto as
Schedule I.

 

6. 

Agent

 

(a) 

The
Assignee hereby appoints and authorizes the Agent to take such
action as administrative agent and collateral agent on its behalf
and to exercise such powers under the Note Purchase Agreement as
are delegated to the Agent by the Noteholders pursuant to the terms
of the Note Purchase Agreement and the other Note Purchase
Document, and hereby confirms the conferring of the legal status of
Agent in accordance with the Note Purchase Documents.

 

(b) 

[The Assignee shall assume no duties or obligations held by the
Assignor in its capacity as Agent under the Note Purchase
Agreement.]

 

 

 

 

 

7. 

Representations
and Warranties

 

(a) 

The
Assignor represents and warrants that (i) it is the legal and
beneficial owner of the interest being assigned by it hereunder and
that such interest is free and clear of any Lien or other adverse
claim; (ii) it is duly organized and existing and it has the full
power and authority to take, and has taken, all action necessary to
execute and deliver this Assignment and Acceptance and any other
documents required or permitted to be executed or delivered by it
in connection with this Assignment and Acceptance and to fulfill
its obligations hereunder, (iii) no notices to, or consents,
authorizations or approvals of, any Person are required (other than
any already given or obtained) for its due execution, delivery and
performance of this Assignment and Acceptance, and apart from any
agreements or undertakings or filings required by the Note Purchase
Agreement, no further action by, or notice to, or filing with, any
Person is required of it for such execution, delivery or
performance; and (iv) this Assignment and Acceptance has been duly
executed and delivered by it and constitutes the legal, valid and
binding obligation of it, enforceable against it in accordance with
the terms hereof, subject, as to enforcement, to bankruptcy,
insolvency, moratorium, reorganization and other laws of general
application relating to or affecting creditors’ rights and to
general equitable principles.

 

(b) 

The
Assignor makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or
representations made in or in connection with the Note Purchase
Agreement or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Note Purchase Agreement or
any other instrument or document furnished pursuant thereto. The
Assignor makes no representation or warranty in connection with,
and assumes no responsibility with respect to, the solvency,
financial condition or statements of any of the Borrower or any
Obligor, or the performance or observance by any of the Borrower or
any Obligor, of any of their respective obligations under the Note
Purchase Agreement or other Note Purchase Documents or any other
instrument or document furnished in connection
therewith.

 

(c) 

The
Assignee represents and warrants that (i) it is duly organized and
existing and it has full power and authority to take, and has
taken, all action necessary to execute and deliver this Assignment
and Acceptance and any other documents required or permitted to be
executed or delivered by it in connection with this Assignment and
Acceptance, and to fulfill its obligations hereunder;; (ii) no
notices to, or consents, authorizations or approvals of, any Person
are required (other than any already given or obtained) for its due
execution, delivery and performance of this Assignment and
Acceptance; and apart from any agreements or undertakings or
filings required by the Note Purchase Agreement, no further action
by, or notice to, or filing with, any Person is required of it for
such execution, delivery or performance; and (iii) this Assignment
and Acceptance has been duly executed and delivered by it and
constitutes the legal, valid and binding obligation of it,
enforceable against it in accordance with the terms hereof,
subject, as to enforcement, to bankruptcy, insolvency, moratorium,
reorganization and other laws of general application relating to or
affecting creditors’ rights and to general equitable
principles.

 

8. 

Further
Assurances

 

Each of the parties hereto hereby agrees to execute and deliver
such other instruments, and take such other action, as any party
hereto may reasonably request in connection with the transactions
contemplated by this Assignment and Acceptance, including the
delivery of any notices or other documents or instruments to the
Borrower or the Agent, which may be required in connection with the
Note Purchase Agreement and the assignment and assumption
contemplated hereby.

 

 

 

 

9. 

Miscellaneous

 

(a) 

Any
amendment or waiver of any provision of this Assignment and
Acceptance shall be in writing and signed by the parties hereto. No
failure or delay by any party hereto in exercising any right, power
or privilege hereunder shall operate as a waiver thereof and any
waiver of any breach of the provisions of this Assignment and
Acceptance shall be without prejudice to any rights with respect to
any other or further breach thereof.

 

(b) 

All
payments made hereunder shall be made without any set-off or
counterclaim.

 

(c) 

Each
of the parties hereto shall pay its own costs and expenses incurred
in connection with the negotiation, preparation, execution and
performance of this Assignment and Acceptance.

 

(d) 

This
Assignment and Acceptance may be executed in any number of
counterparts and all of such counterparts taken together shall be
deemed to constitute one and the same instrument.

 

(e) 

THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN
CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OTHER NOTE PURCHASE DOCUMENT
(EXCEPT, AS TO ANY OTHER NOTE PURCHASE DOCUMENT, AS EXPRESSLY SET
FORTH THEREIN) AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF
THE STATE OF NEW YORK.

 

[Signature Page Follows]

 

 

 

IN WITNESS
WHEREOF, the parties to this
Assignment and Acceptance have caused this Assignment and
Acceptance to be executed and delivered by its duly authorized
officers or representatives as of the date first above
written.

 

	
 

	
 

	

[ASSIGNOR]

 

	
 

	
 

	

By:

	
 

	
 

	
 

	

Name:

 

	
 

	
 

	
 

	

Title:

 

	
 

	
 

	
 

	

Address:

 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

[ASSIGNEE]

 

	
 

	
 

	

By:

 

	
 

	
 

	
 

	

Name:

 

	
 

	
 

	
 

	

Title:

 

	
 

	
 

	
 

	

Address:

 

	
 

	
 

	
 

	
 

	
 

	
 

 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

THIRD EYE CAPITAL CORPORATION, as Agent

 

	
 

	
 

	

By:

 

	
 

	
 

	
 

	

Name:

 

	
 

	
 

	
 

	

Title:

 

	
 

	
 

	
 

	

Address:

 

	
 

	
 

	
 

	
 

	
 

	
 

 

	
 

	
 

	
 

	
 

	
 

 

 

 

 

SCHEDULE I

 

to

 

ASSIGNMENT AND ACCEPTANCE

 

NOTICE OF ASSIGNMENT AND ACCEPTANCE

 

___________________, 20___

 

Third Eye Capital Corporation, as Agent

 

 

Re:   

Goodland
Advanced Fuels, Inc. Note Purchase Agreement

 

Ladies and Gentlemen:

 

We refer to the Note Purchase Agreement, dated as
of June 30, 2017 (the Note Purchase
Agreement), among the financial
institutions from time to time parties thereto (such financial
institutions, together with their respective successors and
assigns, are referred to hereinafter each individually as a
Noteholder
and collectively as the Noteholders),
Third Eye Capital Corporation, as administrative agent and
collateral agent for the Noteholders (in such capacities, together
with any successors and assigns in such capacity, the
Agent), and Goodland Advanced Fuels, Inc., as the
borrower (the Borrower).

 

1. 

We hereby give you notice of, and request the
consent of the Agent to, the assignment pursuant to the Assignment
and Acceptance attached hereto (the Assignment and
Acceptance) by
● (the Assignor) to ● (the Assignee) of the Assigned Amount and all right, title and
interest of the Assignor in and to the Note Purchase Agreement in
respect thereof.

 

2. 

The Assignee agrees that, upon receiving the
consent of the Agent, and if required, the Borrower, to such
assignment, the Assignee will be bound by the terms of the Term
Loan and Revolving Line Commitment and to the same extent as if the
Assignee were the Noteholder[s] originally holding such
interest[s]
in the Note Purchase
Agreement.

 

3. 

The
following administrative details apply to the
Assignee:

 

(a) 

Notice
Address:

 

 

 

[Assignee name:

 

Address:

 

 

 

Attention:

 

Telephone: (   )

 

Telecopier: (   )

                        

]

 

(b) 

Payment
Instructions:

 

 

 

[For Assignee

Account No.:

At:

 

Reference:

 

Attention:                                                                 

]

 

4. 

You
are entitled to rely upon the representations, warranties and
covenants of each of the Assignor and Assignee contained in the
Assignment and Acceptance.

 

[Signature Page Follows]

 

 

 

IN WITNESS
WHEREOF, the Assignor and the
Assignee have caused this Notice of Assignment and Acceptance to be
executed by their respective duly authorized officers or
representatives as of the date first above
mentioned.

 

 

 

	
 

	
 

	

[NAME OF ASSIGNOR]

 

	
 

	
 

	

By:

 

	
 

	
 

	
 

	

Name:

 

	
 

	
 

	
 

	

Title:

 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

[NAME OF ASSIGNEE]

 

	
 

	
 

	

By:

 

	
 

	
 

	
 

	

Name:

 

	
 

	
 

	
 

	

Title:

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