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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0001354488-09-001543.txt : 20090817
<SEC-HEADER>0001354488-09-001543.hdr.sgml : 20090817
<ACCEPTANCE-DATETIME>20090817172853
ACCESSION NUMBER:		0001354488-09-001543
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20090811
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
FILED AS OF DATE:		20090817
DATE AS OF CHANGE:		20090817

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AE Biofuels, Inc.
		CENTRAL INDEX KEY:			0000738214
		STANDARD INDUSTRIAL CLASSIFICATION:	INDUSTRIAL ORGANIC CHEMICALS [2860]
		IRS NUMBER:				840925128
		STATE OF INCORPORATION:			CO
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-51354
		FILM NUMBER:		091020108

	BUSINESS ADDRESS:	
		STREET 1:		20400 STEVENS CREEK BLVD
		STREET 2:		SUITE 700
		CITY:			CUPERTINO
		STATE:			CA
		ZIP:			95014
		BUSINESS PHONE:		561-798-2907

	MAIL ADDRESS:	
		STREET 1:		20400 STEVENS CREEK BLVD
		STREET 2:		SUITE 700
		CITY:			CUPERTINO
		STATE:			CA
		ZIP:			95014

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MARWICH II LTD
		DATE OF NAME CHANGE:	19840123
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>aebio8k.htm
<DESCRIPTION>8K
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>United States Securities and Exchange Commission Edgar Filing</TITLE>
<META NAME="author" CONTENT="Todd Waltz">
<META NAME="date" CONTENT="08/17/2009">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="margin:0px" align=center><BR></P>
<P style="margin-top:0px; margin-bottom:2.2px; padding-bottom:4px; border-bottom:4px solid #000000" align=right>&nbsp;</P>
<P style="margin:0px; padding-top:4px; border-top:1.333px solid #000000" align=right>&nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="line-height:18pt; margin:0px; font-size:16pt" align=center><B>UNITED STATES</B></P>
<P style="line-height:18pt; margin:0px; font-size:16pt" align=center><B>&nbsp;SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin:0px" align=center><B>Washington, D.C. 20549</B></P>
<P style="line-height:11.5pt; margin-top:2.333px; margin-bottom:2.333px; font-size:9.5pt" align=center><B><SUP>______________</SUP></B></P>
<P style="line-height:18pt; margin-top:31.267px; margin-bottom:0px; font-size:16pt" align=center><B>FORM 8-K</B></P>
<P style="line-height:11.5pt; margin-top:2.333px; margin-bottom:2.333px; font-size:9.5pt" align=center><B><SUP>______________</SUP></B></P>
<P style="margin-top:15.867px; margin-bottom:0px" align=center><B>CURRENT REPORT</B></P>
<P style="margin-top:15.867px; margin-bottom:0px" align=center><B>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</B></P>
<P style="margin-top:15.867px; margin-bottom:0px" align=center><B>Date of Report (Date of earliest event reported): &nbsp;August 11, 2009</B></P>
<P style="line-height:11.5pt; margin-top:2.333px; margin-bottom:2.333px; font-size:9.5pt" align=center><B><SUP>______________</SUP></B></P>
<P style="line-height:20pt; margin:0px; font-size:18pt" align=center><B>AE BIOFUELS, INC.</B></P>
<P style="line-height:10pt; margin:0px; font-size:8pt" align=center>(Exact name of registrant as specified in its charter)</P>
<P style="line-height:11.5pt; margin-top:2.333px; margin-bottom:2.333px; font-size:9.5pt" align=center><B><SUP>______________</SUP></B></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=208.933></TD><TD width=204.067></TD><TD width=211></TD></TR>
<TR><TD width=208.933><P style="margin:0px; font-size:8pt">&nbsp;</P>
</TD><TD width=204.067><P style="margin:0px; font-size:8pt">&nbsp;</P>
</TD><TD width=211><P style="margin:0px; font-size:8pt">&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=208.933><P style="margin:0px" align=center><B>Nevada</B></P>
</TD><TD valign=top width=204.067><P style="margin:0px" align=center><B>000-51354</B></P>
</TD><TD valign=top width=211><P style="margin:0px" align=center><B>26-1407544</B></P>
</TD></TR>
<TR><TD valign=top width=208.933><P style="line-height:10pt; margin:0px; font-size:8pt" align=center>(State or Other Jurisdiction</P>
</TD><TD valign=top width=204.067><P style="line-height:10pt; margin:0px; font-size:8pt" align=center>(Commission</P>
</TD><TD valign=top width=211><P style="line-height:10pt; margin:0px; font-size:8pt" align=center>(I.R.S. Employer</P>
</TD></TR>
<TR><TD valign=top width=208.933><P style="line-height:10pt; margin:0px; font-size:8pt" align=center>of Incorporation)</P>
</TD><TD valign=top width=204.067><P style="line-height:10pt; margin:0px; font-size:8pt" align=center>File Number)</P>
</TD><TD valign=top width=211><P style="line-height:10pt; margin:0px; font-size:8pt" align=center>Identification No.)</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><B>20400 Stevens Creek Blvd., Suite 700</B></P>
<P style="margin:0px" align=center><B>Cupertino, California 95014</B></P>
<P style="line-height:10pt; margin:0px; font-size:8pt" align=center>(Address of Principal Executive Office) (Zip Code)</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><B>(408)&nbsp;213-0940</B></P>
<P style="line-height:10pt; margin:0px; font-size:8pt" align=center>(Registrant&#146;s telephone number, including area code)</P>
<P style="margin-top:15.867px; margin-bottom:0px" align=center><B>N/A</B></P>
<P style="line-height:10pt; margin:0px; font-size:8pt" align=center>(Former name or former address, if changed since last report)</P>
<P style="margin-top:7.333px; margin-bottom:0px">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>
<P style="margin-top:7.333px; margin-bottom:0px; font-family:Wingdings">&#168;<FONT style="font-family:Times New Roman"> Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></P>
<P style="margin-top:7.333px; margin-bottom:0px; font-family:Wingdings">&#168;<FONT style="font-family:Times New Roman"> Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></P>
<P style="margin-top:7.333px; margin-bottom:0px; font-family:Wingdings">&#168;<FONT style="font-family:Times New Roman"> Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT></P>
<P style="margin-top:7.333px; margin-bottom:0px; font-family:Wingdings">&#168;<FONT style="font-family:Times New Roman"> Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:2.2px; padding-bottom:4px; border-bottom:1.333px solid #000000">&nbsp;</P>
<P style="margin:0px; padding-top:4px; border-top:4px solid #000000">&nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
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<P style="margin-top:0px; margin-bottom:-16px; padding-left:72px; text-indent:-72px; page-break-before:always"><B>Item 1.01</B></P>
<P style="margin-top:0px; margin-bottom:10.667px; padding-left:72px"><B>Entry into a Material Definitive Agreement.</B></P>
<P style="margin-top:0px; margin-bottom:10.667px"><B>$5 Million Revolving Line of Credit Agreement with Laird Cagan</B></P>
<P style="margin-top:0px; margin-bottom:10.667px; text-indent:48px">On August 17, 2009, International Biodiesel, Inc., a wholly owned subsidiary of AE Biofuels, Inc., entered into a Revolving Line of Credit Agreement with Laird Q. Cagan, a former member of the Company&#146;s board of directors and a significant stockholder (the &#147;Lender&#148;), for $5,000,000. &nbsp;The Revolving Line of Credit is secured by accounts, investments, intellectual property, securities and other collateral of AE Biofuels, Inc. excluding the collateral securing the Company&#146;s obligations under the Note and Warrant Purchase Agreement with Third Eye Capital Corporation and Third Eye Capital ABL Opportunities Fund. &nbsp;The Revolving Line of Credit bears interest at the rate of 10% per annum and matures on July 1, 2011, at which time the outstanding advances under the Revolving Line of Credit together with any accrued interest and other unpaid charges or fees will become due.</P>
<P style="margin-top:0px; margin-bottom:10.667px; text-indent:48px">Upon certain events, the Lender may declare a default upon 10 days prior written notice. &nbsp;Upon an event of default, the Lender may accelerate the outstanding indebtedness together with all accrued interest thereon and demand immediate repayment.<A NAME="part_1_2_2"></A><A NAME="item_1_31_1"></A></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:72px; text-indent:-72px"><B>Item 2.04</B></P>
<P style="margin-top:0px; margin-bottom:8.867px; padding-left:72px"><B>Triggering Events that Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.</B></P>
<P style="margin-top:0px; margin-bottom:8.867px"><B>Notice of Default under the Note and Warrant Purchase Agreement with Third Eye Capital Corporation</B></P>
<P style="margin-top:0px; margin-bottom:10.667px; text-indent:48px">On August&nbsp;11, 2009, AE Biofuels, Inc. (the &#147;Company&#148;) received a <A NAME="jump_exp_1"></A>notice <A NAME="jump_exp_2"></A>of <A NAME="jump_exp_3"></A>default under the Note and Warrant Purchase Agreement dated as of May 16, 2008 (as amended, supplemented and modified from time to time, the &#147;Purchase Agreement&#148;), among AE Biofuels, Inc., Third Eye Capital Corporation, as agent, and Third Eye Capital ABL Opportunities Fund, as purchaser, asserting that the Company failed to maintain its current ratio and stock market capitalization covenants and as a result Events of Default have occurred and are continuing. &nbsp;The notice of default demands repayment of the entire outstanding indebtedness of $5 million together with all accrued interest thereon and any applicable fees and expenses. &nbsp;Upon the occurrence and during the continuance of an Event of Default, interest accrues at the default interest rate of 18% pursua
nt to the Purchase Agreement.<A NAME="part_1_2_3"></A> &nbsp;If the entire principal amount of indebtedness under the Purchase Agreement was paid in full on July 31, 2009, we estimate that the amount would have been approximately $5.5 million. &nbsp;&nbsp;Interest continues to accrue at the default rate in the amount of approximately $80,000 per month during the continuance of default.</P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px" align=center><BR>
<BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin-top:0px; margin-bottom:13.333px; page-break-before:always" align=center><B>SIGNATURES</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:52.8px">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=333.733></TD><TD width=29.933></TD><TD width=260.333></TD></TR>
<TR><TD valign=top width=333.733><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=290.267 colspan=2><P style="margin:0px"><B>AE BIOFUELS, INC.&nbsp;</B></P>
</TD></TR>
<TR><TD valign=top width=333.733><P>&nbsp;</P></TD><TD valign=top width=29.933><P>&nbsp;</P></TD><TD valign=top width=260.333><P style="margin:0px">&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=333.733><P>&nbsp;</P></TD><TD valign=top width=29.933><P>&nbsp;</P></TD><TD valign=top width=260.333><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=333.733><P>&nbsp;</P></TD><TD valign=top width=29.933><P style="margin:0px">By:&nbsp;&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=260.333><P style="line-height:normal; margin:0px">/s/ S<FONT style="font-size:6pt">COTT</FONT> A. J<FONT style="font-size:6pt">ANSSEN</FONT></P>
</TD></TR>
<TR><TD valign=top width=333.733><P>&nbsp;</P></TD><TD valign=top width=29.933><P>&nbsp;</P></TD><TD valign=top width=260.333 rowspan=2><P style="margin:0px">Scott A. Janssen</P>
<P style="margin:0px">Chief Financial Officer</P>
</TD></TR>
<TR><TD valign=top width=333.733><P>&nbsp;</P></TD><TD valign=top width=29.933><P>&nbsp;</P></TD></TR>
</TABLE>
<P style="margin-top:8.867px; margin-bottom:0px">Date: &nbsp;August 17, 2009</P>
<P style="margin-top:8.867px; margin-bottom:0px"><BR></P>
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