Document:

Blueprint

Exhibit
10.3

 

AMENDMENT NO. 2 TO

NOTE PURCHASE AGREEMENT

 

This
Amendment No. 2 to Note Purchase Agreement (this
“Amendment”), is
dated as of November 30, 2018, by and among (i) GOODLAND ADVANCED FUELS, INC., a
Delaware corporation (the “Borrower”) and (ii) THIRD EYE CAPITAL CORPORATION, an
Ontario corporation, as agent for the Noteholders (the
“Agent”),
THIRD EYE CAPITAL CREDIT
OPPORTUNITIES FUND – INSIGHT FUND, THIRD EYE CAPITAL ALTERNATIVE CREDIT
TRUST, and MBI/TEC PRIVATE
DEBT OPPORTUNITIES FUND I, L.P. (collectively, the
“Noteholders”),
and is acknowledged and agreed by the current Guarantors,
AEMETIS, INC., a Nevada
corporation (“Parent”) and AEMETIS ADVANCED PRODUCTS KEYES, INC., a
Delaware corporation (“AAPK”) and new Guarantors,
AEMETIS PROPERTY KEYES, INC.
(formerly Aemetis Advanced Fuels Goodland, Inc.)
(“APKI”) and
AEMETIS ADVANCED FUELS KEYES,
INC. (“AEFK”, and together with the
Parent, AAPK, APKI and the Borrower, the “Obligors”).

 

RECITALS

 

A.           The
Borrower, Agent and Noteholders entered into the Note Purchase
Agreement dated as of June 30, 2017, as amended June 28, 2018 (as
the same may be amended, restated, supplemented, revised or
replaced from time to time, the “Agreement”). Capitalized terms
used but not defined in this Amendment shall have the meaning given
to them in the Agreement.

 

B.           The
Borrower has requested, and the Agent and Noteholders have agreed,
to amend the Agreement on the terms and conditions contained herein
in order to provide funding for APKI to undertake a proposed real
estate transaction with A.L. Gilbert Company (“Gilbert”) and certain related
commercial arrangements with Linde LLC and to fund other capital
expenditures and approved working capital expenditures related to
the construction of interconnecting equipment to furnish CO2 from
AEFK’s ethanol plant in Keyes, CA (collectively, the
“CO2
Transaction”).

 

AGREEMENT

 

SECTION
1.          
Amendments.
The following sections of the Agreement shall be and hereby are
amended as follows:

 

(A)           Section
1.1 (Definitions).

 

Section
1.1 of the Agreement is hereby amended by substituting the
following definitions or adding the following definitions, as
applicable, in the appropriate alphabetical order:

 

“AEFK” means Aemetis Advanced Fuels
Keyes, Inc., a Guarantor.

 

“Amended Intercreditor Agreement”
means the Amended and Restated Intercreditor Agreement dated the
date of the Second Amendment 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).

 

 

 

 

 “APKI”
means Aemetis Property Keyes, Inc., a Guarantor.

 

“APKI Appraisal” means an appraisal
of the APKI 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 APKI Mortgaged Property.

 

“APKI Deed of Trust” means the Deed
of Trust, dated the date of the Second Amendment, executed by APKI
with respect to the APKI Mortgaged Property pursuant to which APKI
grants a first and prior mortgage to the Agent for the benefit of
the Noteholders, as beneficiary to secure APKI’s obligations
pursuant to the Guaranty.

 

“APKI Mortgaged Property” means the
Mortgaged Property as set out in the APKI Deed of Trust, being that
real property purchased by APKI from A.L. Gilbert Company or its
affiliates pursuant to the CO2 Transaction.

 

“APKI Mortgaged Property Market
Value” means the “as is” fair market value
of the APKI Mortgaged Property as determined semi-annually by
Edwards, Lien & Toso, Inc. or such other independent valuation
expert acceptable to the Agent.

 

“APKI Pledge Agreement” means that
certain Pledge Agreement, dated as of the Second Amendment, between
AE Advanced Fuels, Inc. as Pledgor and the Agent, relating to a
pledge of 100% of the Capital Stock of APKI.

 

“CO2 Term Loan” has the meaning set
forth in Section 2.1 hereof.

 

“CO2 Transaction” has the meaning
set forth in the recitals to the Second Amendment.

 

“Guaranty” means collectively or
individually, as applicable: (i) that Second Amended & Restated
Limited Guaranty by the Parent and AAPK in favor of the Agent, (ii)
that Limited Guaranty by APKI in favor of the Agent, and (iii) that
Limited Recourse Guaranty by AEFK in favor of the Agent, in each
case dated as of the date of the Second Amendment and which
guarantees the Note Indebtedness in accordance with its
terms.

 

“Linde Contract” means that
Agreement for the Sale of CO2 between AEFK and Linde LLC dated
August 25, 2017 as the same may be amended, restated, supplemented,
revised or replaced from time to time.

 

“Second Amendment” means that
Amendment No. 2 to the Note Purchase Agreement dated November 30,
2018 as between the Borrower, the Agent and the Noteholders and
acknowledged and agreed to by the Guarantors.

 

 

2

 

 

(B)           Section
2.1 (Term Loan).

 

Section
2.1 of the Agreement is hereby deleted in its entirety and replaced
with the following:

 

“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 term
loan to the Borrower:

 

(a) 

on the Closing Date
in an aggregate amount of Fifteen Million Dollars ($15,000,000)
(the “Initial Term
Loan”); and

 

(b) 

on the date of the
First Amendment in an aggregate amount of One Million Five Hundred
Seventy Five Thousand Dollars ($1,575,000) (the “Subsequent Term
Loan”),

 

(c) 

on the date of the
Second Amendment in an aggregate amount of Three Million Five
Hundred Thousand Dollars ($3,500,000); provided that the Obligors
acknowledge that certain amounts of such principal may be advanced
to the Borrower upon the satisfaction of certain conditions, as
more specifically indicated in Schedule 5.1(i) “Use of
Proceeds” (the “CO2
Term Loan” and together with the Initial Term Loan and
the Subsequent Term Loan, the “Term Loan”),

 

in each
case 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.”

 

(C)           Section
2.4 (Repayment).

 

Subsection 2.4(b)
of the Agreement is hereby deleted in its entirety and replaced
with the following:

 

“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 (excluding Aemetis Biogas LLP), as
applicable from (i) the EB-5 Program Issuance, (ii) any USDA
Financing, (iii) any sales of the Obligors’ Capital Stock,
(iv) any Indebtedness incurred or issued (that is not permitted by
this Agreement), (v) repayments made to the Borrower under any of
the Term Loans or under a Revolving Intercompany Note to the extent
such amounts are not immediately reborrowed 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 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 (viii), 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.”

 

 

3

 

 

A new
subsection 2.4(d) is hereby added to the Agreement as
follows:

 

“The Obligors
shall also be required to, and hereby agree to, make the following
mandatory repayments of the CO2 Term Loan:

 

i)  on a
monthly basis, an amount equal to 75% of any payments received by
any Obligor pursuant to Section 5.1 and 5.2 of the Linde Contract
which are related to Product or Gas or CO2 (each as defined
therein) produced by Linde LLC without giving effect to any setoff
or counterclaim or other credit or repayments pursuant to Section
5.3 or Article 6 of the Linde Contract;

 

ii)  an amount
equal to 100% of each monthly “Linde’s Plant Site
Charge” payment received by any Obligor pursuant to Section
5.1 of the Linde Contract, which for clarity is anticipated to be
equal to $10,000 per month, without giving effect to any setoff or
counterclaim; and

 

iii)  on a
monthly basis, an amount equal to the product of: (A) $0.01
multiplied by (B) the number of bushels of Grain (as defined in the
Procurement Agreement) procured or purchased by any Obligor from
J.D. Heiskell Holdings, LLC or its affiliates or nominee
(“Heiskell”)
pursuant to that Amended and Restated Grain Procurement and Working
Capital Agreement dated May 7, 2013 (as may be amended, restated,
supplemented, revised or replaced from time to time, the
“Procurement
Agreement”); it being acknowledged that such amount
shall not constitute a reduction or set off or otherwise derogate
or replace any Obligor’s obligation to make any payment under
the Procurement Agreement to Heiskell and such repayment obligation
contemplated herein shall be in addition to such payment
obligations included in the Procurement Agreement and shall be made
irrespective of the price of such Grain indicated in or paid
pursuant to the Procurement Agreement as between Heiskell and any
Obligor,

 

and
with respect to (i) and (ii) above, AEFK covenants and agrees to
direct Linde LLC to make all payments, credits, reimbursements or
other payments of any sums whatsoever pursuant to or related to the
Linde Contract to a bank account identified by the Agent in its
sole discretion, over which the Agent shall have direction and
control, and from which the Agent shall be entitled to withhold,
extract and obtain the payment amounts indicated
above.

 

(D)           Section
2.5 (Interest).

 

Subsection 2.5(c)
of the Agreement is hereby deleted in its entirety and replaced
with the following:

 

 

 

4

 

 

“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 August 1, 2017); provided, however,
that interest accruing on the Initial 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(p).

 

In
addition, interest accruing on the CO2 Term Loan shall be
calculated from the date upon which such portions of the CO2 Term
Loan are advanced to the Borrower, as contemplated in Schedule
5.1(i) “Use of Proceeds” and it is acknowledged that
$200,000 of the CO2 Term Loan shall be withheld by the Agent at
closing and used to pay such interest as it becomes due and
payable, or interest on the Term Loan or Revolving Line, at the
Agent’s discretion, as such interest becomes due and
payable.”

 

In
addition, the phrase “Term Loan”, where it appears in
Subsection 3.1(p) of the Agreement, is hereby deleted and replaced
with the phrase “Initial Term Loan”.

 

(E)           Section
2.13 (Fee Letter).

 

Section
2.13 of the Agreement is hereby deleted in its entirety and
replaced with the following:

 

“Fee Letter. The Borrower agrees to pay
to the Agent, for itself or for and on behalf of the Noteholders,
as applicable: (i) the fees described in the Fee Letter, (ii) at
the date of the First Amendment, the amount of $75,000, and (iii)
at the date of the Second Amendment, the amount of $175,000. All
such fees may be withheld from, and payable from, the proceeds of
the Loans in connection with those fees then
due.”

 

(F)           Section
5.1(p) (Post-Closing Matters).

 

Section
5.1(p) of the Agreement is amended by adding the following new
paragraphs (iii) to (vi):

 

“(iii)       
Each Obligor covenants that it will use reasonable commercial
efforts to terminate, remove or release the right of way and
easement created by that certain deed from Herbert M. Hatch, Laura
M. Hatch and Cora H. Johnston to O.L. Jessup and M.S. Jessup
recorded in the Stanislaus Records on February 9th, 1920, at Book
304 of Deeds, Page 412 of Official Records on the APKI Mortgaged
Property (the “1920
Easement”) within twelve 12 months of the date of the
Second Amendment.

 

(iv)         
Within one week of the date of the Second Amendment, each Obligor
covenants to provide the Agent with applicable permits or
certificates of occupancy with respect to the APKI Mortgaged
Property.

 

(v)           Within
30 days of the date of the Second Amendment, the Obligors covenant
to provide the Agent with each of: (A) an amendment and restatement
of the Linde Contract, and (B) an assignment from APKI to Linde of
APKI’s obligations under each of the Purchase agreements
(easement) and (rail spur) between Gilbert and APKI, each in form
and substance satisfactory to the Agent.

 

 

 

5

 

 

 

(vi)           Within
30 days of the date of the Second Amendment, the Obligors covenant
to provide the Agent with an amended APKI Title Policy in form and
substance satisfactory to the Agent which shall be in the form of a
2006 ALTA extended coverage loan policy without showing a general
exception for survey matters, and shall include such endorsements
as requested by the Agent (including, without limitation ALTA
3.0-06 (Zoning), ALTA 18-06 (Single Tax Parcel), and ALTA 25-06
(Same as Survey)). For greater clarity, the Obligors acknowledge
that, in order to obtain such amended APKI Title Policy they will
likely need to provide the Title Company with an updated ALTA Land
Title Survey with respect to the APKI Mortgaged Property and a
third party zoning report with respect to the APKI Mortgaged
Property, or such other evidence or documentation as may be
required by the Title Company.”

 

(G)           Section
5.2(k) (Financial Covenants).

 

Section
5.1(k)(i) of the Agreement is hereby deleted in its entirety and
replaced with the following:

 

“(i)           
Permit the ratio of: (a) the sum of (i) the most recent Mortgaged
Property Market Value, (ii) the most recent APKI Mortgaged Property
Market Value, and (iii) 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.”

 

In
addition, corresponding changes are hereby made to Section 3 of
Schedule 5.1(c) (Form of Compliance Certificate).

 

(H)           Section
5.2(k) (Financial Covenants).

 

Section
5.1(k)(ii) of the Agreement is hereby deleted in its entirety and
replaced with the following:

 

“(ii)           
Permit the amount of trade payables (other than amounts due to
management) 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 other than the months from June to November,
2018.”

 

(I)           Schedule
1.1(a) (Commitments Schedule).

 

Schedule 1.1(a) of
the Agreement is hereby deleted in its entirety and replaced with
Schedule 1.1(a) attached hereto.

 

(J)           Schedule
5.1(i) (Use of Proceeds).

 

Schedule 5.1(i) of
the Agreement is hereby deleted in its entirety and replaced with
Schedule 5.1(i) attached hereto.

 

 

 

6

 

 

SECTION
2.           
Conditions to
Effectiveness. This Amendment shall be effective on the date
first written above and subject to satisfaction of the following
conditions precedent:

 

(A) 

The Agent shall
have completed its due diligence investigation to its satisfaction
with respect to the proposed CO2 Transaction;

 

(B) 

The Agent shall
have received the following, each in form and substance
satisfactory to the Agent in its sole discretion:

 

i. 

this Amendment duly
executed by the parties hereto;

 

ii. 

Term Notes
evidencing the CO2 Term Loan, in favor of each Noteholder in
accordance with their respective Term Loan Commitment Percentage,
duly executed by the Borrower;

 

iii. 

an intercompany
note between APKI and the Borrower evidencing the advance of the
amount of the CO2 Term Loan received by the Borrower from time to
time to APKI, endorsed to the Agent;

 

iv. 

each Guaranty,
dated the date hereof, from each Guarantor other than
AEFK;

 

v. 

a limited recourse
Guaranty, from AEFK, dated the date hereof;

 

vi. 

the APKI Pledge
Agreement;

 

vii. 

the original stock
certificate of APKI issued to AE Advanced Fuels, Inc. evidencing
100% of the issued and outstanding shares of capital stock of APKI
pledged to the Agent, and the applicable original stock power with
respect thereto;

 

viii. 

a General Security
Agreement executed by APKI;

 

ix. 

the APKI Deed of
Trust and related assignments of leases, rents agreements,
licenses, permits and contracts and environmental indemnity from
APKI;

 

x. 

the APKI
Appraisal;

 

xi. 

a Title Policy (or
the applicable title company’s unconditional commitment to
issue a Title Policy upon recordation of the APKI Deed of Trust)
(the “APKI Title
Policy”) with respect to the APKI Mortgaged
Property;

 

xii. 

Phase I report with
respect to the APKI Mortgaged Property;

 

xiii. 

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

 

 

 

7

 

 

 

 

xiv. 

evidence of the
rezoning of the APKI Mortgaged Property from agricultural to
commercial and evidence that all applicable zoning ordinances and
restrictive covenants affecting the APKI Mortgaged Property permit
the use for which such property is intended and have been or will
be complied with in all respects;

 

xv. 

evidence that
applicable insurance policies with respect to the APKI Mortgaged
Property are in full force and effect (whether via a new policy or
an amendment to existing policies), together with appropriate
evidence showing loss payable and/or additional insured clauses or
endorsements in favor of the Agent;

 

xvi. 

Purchase agreement
(easement) between Gilbert and APKI;

 

xvii. 

Purchase or lease
agreement (rail spur) between Gilbert and APKI;

 

xviii. 

Quitclaim deed
regarding 1920 Easement signed and recorded by
Gilbert;

 

xix. 

a duly executed
collateral pledge and assignment of the Linde Contract by AEFK,
including therewith a payment direction from AEFK to Linde LLC with
respect to the payment of amounts owed pursuant to the Linde
Contract to the applicable segregated account indicated by the
Agent;

 

xx. 

UCC financing
statement reflecting APKI, as debtor, and Agent, as a secured
party, and accompanying financing statement searches;

 

xxi. 

a Perfection
Certificate, executed by APKI and AEFK;

 

xxii. 

duly executed legal
opinions of counsel to APKI and AEFK;

 

xxiii. 

Officer’s
Certificate certifying all material transaction documents with
respect to the CO2 Transaction as may be required by the Agent
(including without limitation with Gilbert and Linde) and
confirming that all conditions precedent to the consummation of the
CO2 Transaction have been satisfied or waived and confirming those
aspects of the CO2 Transaction which will close simultaneously with
the funding of the CO2 Term Loan on the date hereof;

 

xxiv. 

Officer’s
Certificate attaching: (i) Organic Documents; and (ii) true and
complete copies of resolutions duly adopted by the board of
directors of APKI and AEFK in each case authorizing the execution,
delivery and performance of this Amendment and the matters and
documents included herein;

 

xxv. 

good standing
certificates of APKI and AEFK from Delaware and
California.

 

(C) 

Each Obligor shall
have paid all fees and expenses of the Agent and Noteholders then
due as specified by the Fee Letter or as otherwise
required.

 

 

 

8

 

 

 

(D) 

Each Obligor shall
have performed and complied with all of the covenants and
conditions required by this Amendment and the Note Purchase
Documents to be performed and complied with by it upon the
effective date of this Amendment.

 

(E) 

The Agent shall
have entered into the Amended Intercreditor Agreement on terms
acceptable to it.

 

(F) 

The Agent shall
have received all other approvals, opinions, documents, agreements,
instruments, certificates, schedules and materials as the Agent may
reasonably request.

 

Each
Obligor acknowledges and agrees that the failure to perform, or to
cause the performance of, the covenants and agreements in this
Amendment will constitute an Event of Default under the Agreement
and Agent and Noteholders shall have the right to demand the
immediate repayment in full in cash of all outstanding Note
Indebtedness owing to Agent and Noteholders under the Agreement,
the Notes and the other Note Purchase Documents. In consideration
of the foregoing and the transactions contemplated by this
Amendment, each Obligor hereby: (i) ratifies and confirms all
of the obligations and liabilities of it owing pursuant to the
Agreement and the other Note Purchase Documents, and (ii) agrees to
pay all costs, fees and expenses of Agent and the Noteholders in
connection with this Amendment.

 

SECTION
3.        Agreement in Full
Force and Effect as Amended. Except as specifically amended
or waived hereby, the Agreement and other Note Purchase Documents
shall remain in full force and effect and are hereby ratified and
confirmed as so amended. Except as expressly set forth herein, this
Amendment shall not be deemed to be a waiver, amendment or
modification of, or consent to or departure from, any provisions of
the Agreement or any other Note Purchase Document or any right,
power or remedy of Agent or Noteholders thereunder, nor constitute
a waiver of any provision of the Agreement or any other Note
Purchase Document, or any other document, instrument or agreement
executed or delivered in connection therewith or of any Default or
Event of Default under any of the foregoing, in each case whether
arising before or after the execution date of this Amendment or as
a result of performance hereunder or thereunder. This Amendment
shall not preclude the future exercise of any right, remedy, power,
or privilege available to Agent or Noteholders whether under the
Agreement, the other Note Purchase Documents, at law or otherwise.
All references to the Agreement shall be deemed to mean the
Agreement as modified hereby. This Amendment shall not constitute a
novation or satisfaction and accord of the Agreement or any other
Note Purchase Documents, but rather shall constitute an amendment
thereof. The parties hereto agree to be bound by the terms and
conditions of the Agreement and Note Purchase Documents as amended
by this Amendment, as though such terms and conditions were set
forth herein. Each reference in the Agreement to “this
Agreement,” “hereunder,” “hereof,”
“herein” or words of similar import shall mean and be a
reference to the Agreement as amended by this Amendment, and each
reference herein or in any other Note Purchase Documents to
“the Agreement” shall mean and be a reference to the
Agreement as amended and modified by this Amendment.

 

 

 

9

 

 

SECTION
4.          
Representations of
Obligors. Each Obligor hereby represents and warrants to
Agent and Noteholders as of the execution date of this Amendment as
follows: (A) it is duly incorporated, validly existing and in
good standing under the laws of its jurisdiction of incorporation;
(B) the execution, delivery and performance by it of this
Amendment and all other Note Purchase Documents executed and
delivered in connection herewith are within its powers, have been
duly authorized, and do not contravene (i) its articles of
incorporation, bylaws or other organizational documents, or
(ii) any applicable law; (C) no consent, license, permit,
approval or authorization of, or registration, filing or
declaration with any Governmental Authority or other Person, is
required in connection with the execution, delivery, performance,
validity or enforceability of this Amendment or any other Note
Purchase Documents executed and delivered in connection herewith by
or against it; (D) this Amendment and all other Note Purchase
Documents executed and delivered in connection herewith have been
duly executed and delivered by it; (E) this Amendment and all
other Note Purchase Documents executed and delivered in connection
herewith constitute its legal, valid and binding obligation
enforceable against it in accordance with their terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally or by general
principles of equity; (F) it is not in default under the
Agreement or any other Note Purchase Documents and no Event of
Default exists, has occurred and is continuing or would result by
the execution, delivery or performance of this Amendment; and
(G) the representations and warranties contained in the
Agreement and the other Note Purchase Documents are true and
correct in all material respects as of the execution date of this
Amendment as if then made, except for such representations and
warranties limited by their terms to a specific date.

 

SECTION
5.          Miscellaneous.

 

(A)           This
Amendment may be executed in any number of counterparts (including
by facsimile or email), and by the different parties hereto on the
same or separate counterparts, each of which shall be deemed to be
an original instrument but all of which together shall constitute
one and the same agreement. Whenever the context and construction
so require, all words herein in the singular number herein shall be
deemed to have been used in the plural, and vice versa. The use of
the word “including” in this Amendment shall be by way
of example rather than by limitation. The use of the words
“and” or “or” shall not be inclusive or
exclusive.

 

(B)           This
Amendment may not be changed, amended, restated, waived,
supplemented, discharged, canceled, terminated or otherwise
modified without the written consent of the Borrower and Agent.
This Amendment shall be considered part of the Agreement and shall
be a Note Purchase Document for all purposes under the Agreement
and other Note Purchase Documents.

 

(C)           This
Amendment, the Agreement and the Note Purchase Documents constitute
the final, entire agreement and understanding between the parties
with respect to the subject matter hereof and thereof and may not
be contradicted by evidence of prior, contemporaneous or subsequent
oral agreements between the parties, and shall be binding upon and
inure to the benefit of the successors and assigns of the parties
hereto and thereto. There are no unwritten oral agreements between
the parties with respect to the subject matter hereof and
thereof.

 

(D)           THIS
AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS
AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH THE CHOICE OF LAW PROVISIONS SET FORTH IN THE
AGREEMENT AND SHALL BE SUBJECT TO ANY WAIVER OF JURY TRIAL AND
NOTICE PROVISIONS OF THE AGREEMENT.

 

 

 

10

 

 

(E)           No
Obligor may assign, delegate or transfer this Amendment or any of
their rights or obligations hereunder. No rights are intended to be
created under this Amendment for the benefit of any third party
donee, creditor or incidental beneficiary of the Obligors. Nothing
contained in this Amendment shall be construed as a delegation to
Agent or Noteholders of the Obligors’ duty of performance,
including any duties under any account or contract in which Agent
or Noteholders have a security interest or lien. This Amendment
shall be binding upon the parties hereto and their respective
successors and assigns.

 

(F)           All
representations and warranties made in this Amendment shall survive
the execution and delivery of this Amendment and no investigation
by Agent or Noteholders shall affect such representations or
warranties or the right of Agent or Noteholders to rely upon
them.

 

(G)           THE
OBLIGORS ACKNOWLEDGE THAT SUCH PERSON’S PAYMENT OBLIGATIONS
ARE ABSOLUTE AND UNCONDITIONAL WITHOUT ANY RIGHT OF RECISSION,
SETOFF, COUNTERCLAIM, DEFENSE, OFFSET, CROSS-COMPLAINT, CLAIM OR
DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO
REDUCE OR ELIMINATE ALL OR ANY PART OF ITS LIABILITY TO REPAY THE
NOTE INDEBTEDNESS OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY
KIND OR NATURE FROM AGENT OR ANY NOTEHOLDER. THE OBLIGORS HEREBY
VOLUNTARILY AND KNOWINGLY RELEASE AND FOREVER DISCHARGE AGENT AND
EACH NOTEHOLDER AND THEIR RESPECTIVE PREDECESSORS, AGENTS,
EMPLOYEES, SUCCESSORS AND ASSIGNS (COLLECTIVELY, THE
“RELEASED PARTIES”), FROM ALL POSSIBLE CLAIMS, DEMANDS,
ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND
LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR
UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR
CONDITIONAL, AT LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART
ON OR BEFORE THE DATE THIS AMENDMENT IS EXECUTED, WHICH SUCH PERSON
MAY NOW OR HEREAFTER HAVE AGAINST THE RELEASED PARTIES, IF ANY, AND
IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT,
TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND ARISING
FROM ANY “LOANS”, INCLUDING ANY CONTRACTING FOR,
CHARGING, TAKING, RESERVING, COLLECTING OR RECEIVING INTEREST IN
EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY
RIGHTS AND REMEDIES UNDER THE AGREEMENT OR OTHER NOTE PURCHASE
DOCUMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS
AMENDMENT.

 

{Signatures appear on following pages.}

 

 

11

 

IN
WITNESS WHEREOF, the parties hereto have executed this Amendment
effective as of the date first noted above.

 

BORROWER:

 

GOODLAND
ADVANCED FUELS, INC.

 

By: /s/ Michael
Peterson                             

Name: Michael
Peterson  

Title: Chief
Executive Officer 

 

 

 

 

Signature Page to Amendment No. 2

 

 

 

 

Acknowledged
and agreed by the Guarantors:

 

AEMETIS
ADVANCED PRODUCTS KEYES, INC.

 

By: /s/ Eric A.
McAfee                                                    

Name:
Eric A. McAfee

Title:
Chief Executive Officer

 

 

AEMETIS,
INC.

 

By: /s/ Eric A.
McAfee                                                    

Name:
Eric A. McAfee

Title:
Chief Executive Officer

  

 

AEMETIS
PROPERTY KEYES, INC.

 

By: /s/ Eric A.
McAfee                                                    

Name:
Eric A. McAfee

Title:
Chief Executive Officer

  

 

AEMETIS
ADVANCED FUELS KEYES, INC.

 

By: /s/ Eric A.
McAfee                                                    

Name:
Eric A. McAfee

Title:
Chief Executive Officer

  

 

 

 

Signature Page to Amendment No. 2

 

 

AGENT:

 

THIRD
EYE CAPITAL CORPORATION

 

By: /s/ Arif N.
Bhalwani                                                   

Name:
Arif N. Bhalwani

Title:
Managing Director

  

 

 

 

 

	
 

	

NOTEHOLDERS:

 

	
 

	

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.

	
 

	

 

 

Per:
/s/ Arif N.
Bhalwani                                                       

	
 

	
 

	
 

	

Name:  
Arif N. Bhalwani

	
 

	
 

	

Title:    
President and CEO

 

Signature Page to Amendment No. 2

 

 

 

	
 

	

THIRD EYE CAPITAL CREDIT

OPPORTUNITIES FUND – INSIGHT FUND

by its Managing General Partner

THIRD EYE CAPITAL CREDIT OPPORTUNITIES S.AR.L.

	
 

	

 

 

Per:

	

 

 

/s/
Richard Goddard

	
 

	
 

	

Name:     
Richard Goddard

	
 

	
 

	

Title:       
Manager

	
 

	
 

 

Per:

	

 

 

/s/
Paul de Quant

	
 

	
 

	

Name:     
Paul de Quant

Title:       
Manager

 

	
 

	
 

	
 

	
 

	

THIRD EYE CAPITAL ALTERNATIVE CREDIT TRUSTby its Manager THIRD EYE CAPITAL MANAGEMENT
INC.

	
 

	

 

 

Per:
/s/ Arif N.
Bhalwani                                                       

	
 

	
 

	
 

	

Name:      
Arif N. Bhalwani

	
 

	
 

	

Title:        
Portfolio Manager

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

Signature Page to Amendment No. 2Blueprint

Exhibit
10.4

 

SECOND AMENDED & RESTATED LIMITED GUARANTY

 

This
SECOND AMENDED & RESTATED LIMITED GUARANTY (this
“Limited
Guaranty”), dated as of December 3, 2018, 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 dated as of June
30, 2017 (as amended by the Amendment No. 1 to Note Purchase
Agreement dated June 28, 2018 (the “First Amendment”), the
Amendment No. 2 to Note Purchase Agreement dated as of December 3,
2018 (the “Second
Amendment”) and as may be further 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 dated as of June 30, 2017
(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)           Pursuant
to the First Amendment, the Noteholders and the Agent agreed to
increase the Term Loan Commitment by an amount equal to $1,575,000,
being the Subsequent Term Loan amount, and the Borrower agreed to
issue Term Notes evidencing such Subsequent Term Loan amount to the
Noteholders in order to provide working capital to the Parent
Guarantor and its subsidiaries in order to satisfy and pay certain
outstanding property tax arrears.

 

(6)           Pursuant
to the Second Amendment, the Noteholders and the Agent agreed to
increase the Term Loan Commitment by an amount equal to $3,500,000, being
the CO2 Term Loan amount, and the Borrower agreed to issue Term
Notes evidencing such CO2 Term Loan amount to the Noteholders in
order to advance funds to Aemetis Property Keyes, Inc., an
indirect, wholly-owned subsidiary of Parent Guarantor
(“APKI”)
in order to permit APKI to complete the CO2 Transaction (as defined
in the Second Amendment) in accordance with the terms and
conditions set forth in the Second Amendment. In connection
therewith, each Guarantor agreed to enter into this Limited
Guaranty, thereby guaranteeing the obligations of the Borrower with
respect to the Guaranteed Obligations (as defined below), in
addition to and not in derogation of, their other obligations
herein and in the Note Purchase Documents.

 

(7)           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.

 

 

 

 

 

(8)           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”).

 

(9)           The
Guarantors will derive substantial direct and indirect benefit from
the transactions contemplated by the Note Purchase Agreement,
including without limiting the generality of the foregoing, with
respect to the transactions contemplated by the Second
Amendment.

 

(10)           Effective
on the date hereof, the Amended and Restated Limited Guaranty dated
June 28, 2018 (the “Original
Guaranty”) has been
amended and restated in its entirety hereby pursuant to the terms
and conditions hereof. Such amendment and restatement of the
Original Guaranty shall not be construed to discharge or otherwise
affect any obligations of the Guarantors accrued or otherwise owing
under the Original Guaranty that have not been paid or otherwise
satisfied, it being understood that such obligations shall continue
as obligations under this Limited Guaranty. Without limiting the
generality of the foregoing, this Limited Guaranty is not intended
to and shall not constitute a novation of the Original
Guaranty.

 

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); (b) the aggregate amount
of Note Indebtedness with respect to the Subsequent Term Loan; (c)
the aggregate amount of Note Indebtedness with respect to the CO2
Term Loan; and (d) 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

 

 

2.2           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.

 

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.

 

 

 

3

 

 

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.

 

2.8           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.

 

 

 

4

 

 

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.

 

(b)           Subject
to the terms of the Existing Agreement, each Guarantor shall be required to, and hereby
agrees to, contribute (i) 100% of the net cash proceeds received by
such Guarantor from (i) 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
and (ii) certain of the net cash proceeds received by such
Guarantor from the Linde Contract (as defined in the Second
Amendment) in accordance with Section 2.4(d) 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.

 

 

 

5

 

 

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.

 

4.8           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.

 

 

 

6

 

 

(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.

 

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.

 

 

 

7

 

 

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]

 

 

8

 

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 McAfee

Title:
CEO

 

 

AEMETIS
ADVANCED PRODUCTS KEYES, INC., as a Guarantor

 

By:
s/ Eric
A.
McAfee                       

Name:
Eric McAfee

Title:
CEO

 

Address for Notices to each
Guarantor:

20400
Stevens Creek Blvd, Suite 700

Cupertino, CA
95014

Attention: 
Chief Executive Officer

Telephone: 408-390-3275

Facsimile: 408-252-8044

 

 

THIRD
EYE CAPITAL CORPORATION, as the Agent

 

By: /s/ Arif N. Bhalwani
                 
     

Name:
Arif N. Bhalwani

Title:
Managing Director

 

 

 

 

 

 

 

 

Signature
Page to Second A&R Limited Guaranty

 

 

 

Acknowledged and
Agreed:

 

 

GOODLAND
ADVANCED FUELS, INC.,

as the
Borrower

 

 

By: /s/ Michael Peterson
                 
         

Name:
Michael Peterson

Title:
CEO

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Signature
Page to Second A&R Limited Guaranty

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