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<SEC-DOCUMENT>0001354488-09-002245.txt : 20091202
<SEC-HEADER>0001354488-09-002245.hdr.sgml : 20091202
<ACCEPTANCE-DATETIME>20091202071522
ACCESSION NUMBER:		0001354488-09-002245
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20091106
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20091202
DATE AS OF CHANGE:		20091202

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:		091216076

	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>aebf_8k.htm
<DESCRIPTION>8-K
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>UNITED STATES</TITLE>
<META NAME="author" CONTENT="Scott Janssen">
<META NAME="date" CONTENT="11/24/2009">
</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="line-height:16pt; margin:0px; font-size:14pt" align=center><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B> </P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center><B>WASHINGTON, D.C. 20549</B> </P>
<P style="line-height:20pt; margin-top:0px; margin-bottom:16px; font-size:18pt" align=center><B>FORM 8-K</B> </P>
<P style="margin-top:0px; margin-bottom:8.867px" align=center><B>CURRENT REPORT</B></P>
<P style="margin-top:0px; margin-bottom:8.867px" align=center><B>Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934</B> </P>
<P style="margin-top:0px; margin-bottom:8.867px" align=center><B>Date of Report (Date of earliest event reported): December&nbsp;1, 2009</B></P>
<P style="line-height:22pt; margin-top:13.667px; margin-bottom:0px; font-size:22pt" align=center><B>AE BIOFUELS, INC.</B></P>
<P style="line-height:10pt; margin:0px; font-size:8pt" align=center><I>(Exact name of registrant as specified in its charter)</I></P>
<P style="line-height:12.5pt; margin-top:1.667px; margin-bottom:9.267px; font-size:10.5pt" 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></TD><TD width=204></TD><TD width=211></TD></TR>
<TR><TD width=208><P>&nbsp;</P></TD><TD width=204><P>&nbsp;</P></TD><TD width=211><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=208><P style="margin:0px" align=center><B>Nevada</B></P>
</TD><TD valign=bottom width=204><P style="margin:0px" align=center><B>000-51354</B></P>
</TD><TD valign=bottom width=211><P style="margin:0px" align=center><B>26-1407544</B></P>
</TD></TR>
<TR><TD valign=bottom width=208><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><I>(State or Other Jurisdiction<BR>
of Incorporation)</I></P>
</TD><TD valign=bottom width=204><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><I>(Commission<BR>
File Number)</I></P>
</TD><TD valign=bottom width=211><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><I>(I.R.S. Employer<BR>
Identification No.)</I></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-top:0px; margin-bottom:4.2px; font-size:8pt" align=center><I>(Address of Principal Executive Office) (Zip Code)</I></P>
<P style="margin:0px" align=center><B>&nbsp;(408)&nbsp;213-0940</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:4.2px; font-size:8pt" align=center><I>(Registrant&#146;s telephone number, including area code)</I></P>
<P style="margin:0px" align=center><B>N/A</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px; font-size:8pt" align=center><I>(Former name or former address, if changed since last report)</I></P>
<P style="margin: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 (see General Instruction A.2. below): </P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:8.867px; font-family:Wingdings">o<FONT style="font-family:Times New Roman"> Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425) </FONT></P>
<P style="margin-top:0px; margin-bottom:8.867px; font-family:Wingdings">o<FONT style="font-family:Times New Roman"> Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12) </FONT></P>
<P style="margin-top:0px; margin-bottom:8.867px; font-family:Wingdings">o<FONT style="font-family:Times New Roman"> Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </FONT></P>
<P style="margin-top:0px; margin-bottom:8.867px; font-family:Wingdings">o<FONT style="font-family:Times New Roman"> Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </FONT></P>
<P style="margin:0px; font-size:1pt">&nbsp;</P>
<P style="margin:0px; font-size:1pt">&nbsp;</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-top:0px; margin-bottom:12.2px" align=center><BR></P>
<P style="margin-top:0px; margin-bottom:12.2px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:72px; text-indent:-72px; page-break-before:always"><B>Item&nbsp;1.01. </B></P>
<P style="margin-top:0px; margin-bottom:8.867px; padding-left:72px"><B>Entry into Material Definitive Agreements.</B> </P>
<A NAME="_DV_M32"></A><P style="margin-top:0px; margin-bottom:8.867px">On December&nbsp;1, 2009, AE Biofuels, Inc. (&#8220;AE&#8221; or &#8220;AE Biofuels&#148;) and its two wholly owned subsidiaries, AE Advanced Fuels, Inc. and AE Advanced Fuels Keyes, Inc. (the &#147;Project Company&#148;) entered into a Project Agreement and Lease Agreement with Cilion, Inc. (&#147;Cilion&#148; or &#147;Owner&#148;). Cilion is the owner of an ethanol plant located in Keyes, California with an annual nameplate capacity of 55 million gallons per year (the &#147;Plant&#148;). </P>
<P style="margin-top:0px; margin-bottom:8.867px">Under the terms of the Project Agreement, the Project Company must raise $1,600,000 (the &#147;AE Funds&#148;) for the operating expenses and capital expenditures required to complete the repair and restart of the Plant. &nbsp;AE or one of its affiliates expects to raise and contribute the AE Funds to the Project Company and Praj Industries, the principal engineering and construction firm and technology provider to the Plant, has agreed to contribute $1,000,000 (the &#147;Praj Funds&#148;) to the Project Company. &nbsp;Once the Project Company receives the AE Funds and at least $500,000 of the Praj Funds, Cilion will deliver possession of the Plant to the Project Company and the Project Company will (i) repair the Plant in accordance with a plant repair plan which has been approved by the Project Company and Cilion, (ii) manage all aspects of the repair of the Plant, (iii) hire the Plant&#146;s current Plant Manager and Plant Engineer, (iv) maintain at its own
 expense all utilities and services required for the performance of the repair and retrofit and the operation of the Plant, and (v) prepare and submit all regulatory filings and obtain all permits required for the repair activities. Cilion may terminate the Project Agreement and the Lease if the Project Company has not contributed the AE Funds by January 31, 2010. &nbsp;</P>
<P style="margin-top:0px; margin-bottom:8.867px">Under the terms of the Lease Agreement the Project Company will lease the Plant for a term of up to thirty-six (36) months at a monthly rental amount of $250,000 (the &#147;Lease&#148;). &nbsp;The Lease term and rental payments begin upon substantial completion of the repair and retrofit activities, which are determined by mutual consent of the parties. In addition, Cilion has the one-time option to terminate the Lease at the end of the twenty-fourth month after the beginning of the Lease term, upon three (3) months prior written notice (&#147;Early Termination Option&#148;). &nbsp;If Cilion terminates the Lease pursuant to this Early Termination Option, they will reimburse the Project Company for (i) one hundred percent (100%) of the approved, documented costs actually incurred by the Project Company for capital expenditures and repair and retrofit activities as defined in the Project Agreement, plus (ii) actual startup losses (as defined in the Project Agree
ment) incurred by the Project Company, if any, not to exceed two million dollars ($2,000,000), plus (iii) an amount equal to eight percent (8%) of the total amounts set forth in (i) and (ii) above multiplied by the actual number of years (or partial years) elapsed under the Lease term. &nbsp;</P>
<P style="margin-top:0px; margin-bottom:8.867px">AE Biofuels or one of its wholly owned subsidiaries plans to deploy its patent pending enzyme technology to produce cellulosic ethanol at the Plant during the term of the lease and AE will provide a royalty free, site specific license for the technology during the term of the lease. Any modifications to the Plant are subject to the approval of Cilion. </P>
<P style="line-height:normal; margin-top:0px; margin-bottom:8.867px">The Project Agreement and the Lease contain customary representations and warranties and covenants applicable to the Project Company and AE, including, among other things, obligations on the party of the Project Company to pay all costs and expenses associated with leasing and operating the Plant during the term of the Lease including, without limitation, all real estate taxes, special and general assessments, insurance premiums, and maintenance and repair costs and expenses. The Project Company is also be required to maintain hazard, general liability, workers compensation and business interruption insurance during the term of the Lease.<FONT style="font-family:Cambria; font-size:13pt"><B> </B></FONT>The Lease also includes customary events of default, including cross-defaults with respect to the Project Agreement.</P>
<P style="margin-top:0px; margin-bottom:8.867px">Pursuant to the Project Agreement, in the event Cilion determines to (i) sell all or any portion of its interest in the Plant or (ii) consummate a change in control of Cilion (as defined in the Project Agreement), Cilion has granted AE and its wholly-owned subsidiaries a right of first refusal<A NAME="_DV_M279"></A><A NAME="_DV_C491"></A> <A NAME="_DV_M283"></A>to acquire the Plant<A NAME="_DV_M285"></A> on the same terms and conditions as those offered by a third party. &nbsp;<A NAME="_DV_M313"></A><A NAME="_DV_M314"></A><A NAME="_DV_M315"></A>If AE does not exercise its right of first refusal <A NAME="_DV_C579"></A>and the Lease is terminated as a result of such sale or change in control, Cilion will reimburse the Project Company<A NAME="_DV_M352"></A> for <A NAME="_DV_C581"></A>costs and expenses in the same manner as if Cilion terminated the Lease pursuant to their Early Termination Option.</P>
<P style="margin-top:0px; margin-bottom:8.867px">In addition<A NAME="_DV_M157"></A><A NAME="_DV_M161"></A>, the holders of Cilion stock<A NAME="_DV_M369"></A> have the right on or before June 30, 2011 to exchange not less than 50.1% of the outstanding <A NAME="_DV_M370"></A>shares of Cilion into a number of shares of common stock of AE equal to a fraction, the numerator of which is the number of <A NAME="_DV_M371"></A>shares the <A NAME="_DV_C609"></A>Cilion<A NAME="_DV_M372"></A> shareholders seek to exchange for shares of AE Common Stock and the</P>
<P style="margin-top:0px; margin-bottom:8.867px"><BR>
<BR></P>
<P style="margin-top:0px; margin-bottom:12.2px" align=center><BR></P>
<P style="margin-top:0px; margin-bottom:12.2px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin-top:0px; margin-bottom:8.867px; page-break-before:always">denominator of which is the total number of shares of Cilion held by all Cilion shareholders, multiplied by 35&nbsp;million. &nbsp;This conversion option is subject to the execution of a Stock Exchange Agreement on terms and conditions acceptable to AE. <A NAME="_DV_M375"></A>At September 30, 2009, AE had approximately 86.2 million shares of outstanding common stock, 3.3 million shares of outstanding preferred stock, and options and warrants outstanding exercisable for an additional 5.6 million shares of common stock. <A NAME="_DV_M376"></A>If AE acquired 100% of the outstanding shares of Cilion, Inc. on December&nbsp;1, 2009, AE would have issued 35 million shares of common stock.</P>
<P style="line-height:13.5pt; margin-top:0px; margin-bottom:8.867px">The foregoing summary of certain terms of the Project Agreement and the Lease do not purport to be complete, and are qualified in their entirety by the terms and conditions of the Project Agreement and the Lease, copies of which are filed as Exhibits 10.1 and 10.2 to this Current Report on Form 8-K and incorporated herein by reference. </P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:72px; text-indent:-72px"><B>Item&nbsp;9.01. </B></P>
<P style="margin-top:0px; margin-bottom:8.867px; padding-left:72px"><B>Financial Statements and Exhibits.</B> </P>
<P style="margin:0px"><B>(d)&nbsp;Exhibits</B></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR height=0 style="font-size:0"><TD width=72></TD><TD width=12></TD><TD width=540></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=72><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>Exhibit<BR>
No.</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=12><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=540><P style="line-height:10pt; margin:0px; font-size:8pt"><B>Description</B></P>
</TD></TR>
<TR><TD valign=top width=72><P style="margin-top:3.533px; margin-bottom:0px; padding-left:16px; color:#0000FF"><A HREF="aebf_ex101.htm"><U>10.1</U></A><FONT style="color:#000000">*</FONT></P>
</TD><TD valign=top width=12><P>&nbsp;</P></TD><TD valign=top width=540><P style="margin-top:3.533px; margin-bottom:0px">Project Agreement entered into 1<SUP>st</SUP> day of December 2009, by and <A NAME="_DV_C14"></A>among<A NAME="_DV_M5"></A> Cilion, Inc., a Delaware corporation, <A NAME="_DV_M6"></A>AE Biofuels, Inc., a Nevada corporation, AE Advanced Fuels, Inc., a Delaware corporation and AE Advanced Fuels Keyes, Inc., a Delaware corporation.</P>
</TD></TR>
<TR><TD valign=top width=72><P style="margin-top:3.533px; margin-bottom:0px; padding-left:16px; color:#0000FF"><A HREF="aebf_ex102.htm"><U>10.2</U></A><FONT style="color:#000000"></FONT></P>
</TD><TD valign=top width=12><P>&nbsp;</P></TD><TD valign=top width=540><P style="margin-top:3.533px; margin-bottom:0px">Lease Agreement for Keyes, California Ethanol Production Facility entered into 1<SUP>st</SUP> day of December, 2009, by and between Cilion, Inc., a Delaware corporation, AE Advanced Fuels Keyes, Inc., a Delaware corporation and AE Advanced Fuels, Inc., a Delaware corporation, each of which are wholly-owned subsidiaries of AE Biofuels, Inc., a Nevada corporation.</P>
</TD></TR>
</TABLE>
<P style="margin:0px">&#151;&#151;&#151;&#151;&#151;&#151;&#151;</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:16px; text-indent:-16px">*</P>
<P style="margin:0px; padding-left:16px">Confidential treatment requested as to certain portions, which portions were omitted and filed separately with the Securities and Exchange Commission.</P>
<P style="margin-top:0px; margin-bottom:13.333px" align=center><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px" align=center><BR>
<BR></P>
<P style="margin-top:0px; margin-bottom:12.2px" align=center><BR></P>
<P style="margin-top:0px; margin-bottom:12.2px"><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:0px">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>
<P style="margin:0px"><BR></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.</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 style="margin:0px">Date: December 2, 2009&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="margin:0px">/s/ Scott A. Janssen&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 style="margin:0px">Scott A. Janssen&nbsp;</P>
<P style="margin:0px"><I>Chief Financial Officer</I>&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin-top:0px; margin-bottom:12.2px" align=center><BR></P>
<P style="margin-top:0px; margin-bottom:12.2px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always" align=center><B>EXHIBIT INDEX</B></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR height=0 style="font-size:0"><TD width=72></TD><TD width=12></TD><TD width=540></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=72><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>Exhibit<BR>
No.</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=12><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=540><P style="line-height:10pt; margin:0px; font-size:8pt"><B>Description</B></P>
</TD></TR>
<TR><TD valign=top width=72><P style="margin-top:3.533px; margin-bottom:0px; padding-left:16px; color:#0000FF"><A HREF="aebf_ex101.htm"><U>10.1</U></A><FONT style="color:#000000">*</FONT></P>
</TD><TD valign=top width=12><P>&nbsp;</P></TD><TD valign=top width=540><P style="margin-top:3.533px; margin-bottom:0px">Project Agreement entered into 1<SUP>st</SUP> day of December 2009, by and among Cilion, Inc., a Delaware corporation, AE Biofuels, Inc., a Nevada corporation, AE Advanced Fuels, Inc., a Delaware corporation and AE Advanced Fuels Keyes, Inc., a Delaware corporation.</P>
</TD></TR>
<TR><TD valign=top width=72><P style="margin-top:3.533px; margin-bottom:0px; padding-left:16px; color:#0000FF"><A HREF="aebf_ex102.htm"><U>10.2</U></A><FONT style="color:#000000"></FONT></P>
</TD><TD valign=top width=12><P>&nbsp;</P></TD><TD valign=top width=540><P style="margin-top:3.533px; margin-bottom:0px">Lease Agreement for Keyes, California Ethanol Production Facility entered into 1<SUP>st</SUP> day of December, 2009, by and between Cilion, Inc., a Delaware corporation, AE Advanced Fuels Keyes, Inc., a Delaware corporation and AE Advanced Fuels, Inc., a Delaware corporation, each of which are wholly-owned subsidiaries of AE Biofuels, Inc., a Nevada corporation.</P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:12.2px"><BR></P>
<P style="margin-top:0px; margin-bottom:12.2px"><BR>
<BR></P>
<P style="margin-top:0px; margin-bottom:12.2px" align=center><BR></P>
<P style="margin-top:0px; margin-bottom:12.2px"><BR></P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>aebf_ex101.htm
<DESCRIPTION>PROJECT AGREEMENT
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>PROJECT AGREEMENT</TITLE>
<META NAME="author" CONTENT="Eric McAfee">
<META NAME="date" CONTENT="11/24/2009">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:16px"><BR></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:10.667px; font-size:12pt" align=right><B>Exhibit 10.1</B></P>
<P style="line-height:14pt; margin:0px; font-size:12pt">* Confidential treatment requested as to certain portions, which portions were omitted and filed separately with the Securities and Exchange Commission.</P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt">PROJECT AGREEMENT</P>
<A NAME="_DV_M1"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt">This Project Agreement (the <A NAME="_DV_C8"></A>&#147;<A NAME="_DV_M2"></A>Agreement<A NAME="_DV_C10"></A>&#148;<A NAME="_DV_M3"></A> is entered into as of this 1st day of <A NAME="_DV_C12"></A>December, 2009,<A NAME="_DV_M4"></A> by and <A NAME="_DV_C14"></A>among<A NAME="_DV_M5"></A> Cilion, Inc., a Delaware corporation, (<A NAME="_DV_C16"></A>&#147;Cilion&#148; or &#147;Owner&#148;),<A NAME="_DV_M6"></A> AE Biofuels, Inc., a Nevada corporation (<A NAME="_DV_C18"></A>&#147;AE&#148; or &#147;Parent&#148;), AE Advanced Fuels, Inc., a Delaware corporation (&#147;AE Sub&#148; or &#147;Parent Sub&#148;) and AE Advanced Fuels Keyes, Inc., a Delaware corporation(the &#147;Project Company&#148;), each a wholly-owned subsidiary of AE. &nbsp;Owner, AE and the Project Company are each referred to herein individually as a &#147;Party&#148; and collectively, as the &#147;Parties.&#148;</P>
<A NAME="_DV_C19"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center>RECITALS</P>
<A NAME="_DV_M7"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt">WHEREAS, AE has three patents pending on its proprietary ambient temperature cellulosic ethanol process utilizing solid substrate enzyme production technology, a combination of enzymes and a cellulose/corn design for low cost conversion of corn ethanol facilities into the integrated use of starch and cellulosic feedstocks (the &#147;AE Technology&#148;);</P>
<A NAME="_DV_M8"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt">WHEREAS, AE built and operates a commercial demonstration facility in Butte, Montana that uses the AE Technology to convert wheat straw, corn stover, &nbsp;and other low-lignin agricultural waste into cellulosic ethanol;</P>
<A NAME="_DV_M9"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt">WHEREAS, AE plans to use the AE Technology to: </P>
<A NAME="_DV_M10"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">(a)<A NAME="_DV_M11"></A></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:132px; font-size:12pt">convert existing corn ethanol facilities into the use of AE&#146;s enzymes in order to reduce power and water costs while continuing to use corn starch as feedstock; </P>
<A NAME="_DV_M12"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:132px; font-size:12pt">operate existing corn ethanol plants;</P>
<A NAME="_DV_M13"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">(c)<A NAME="_DV_M14"></A></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:132px; font-size:12pt">convert corn ethanol facilities into integrated corn/cellulosic ethanol production using the integrated AE Technology; and </P>
<A NAME="_DV_M15"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">(d)<A NAME="_DV_M16"></A></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:132px; font-size:12pt">convert corn ethanol facilities into cellulose-only ethanol production facilities.</P>
<A NAME="_DV_M17"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt">WHEREAS, AE is *<A NAME="_DV_M18"></A> (the &#147;Equity Funding&#148;);</P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt">WHEREAS, <A NAME="_DV_C22"></A>Owner<A NAME="_DV_M20"></A> built and operated a 55 million gallon capacity corn ethanol facility in Keyes, California that is not currently in operation (the &#147;Keyes Plant&#148;)<A NAME="_DV_C23"></A>, as further described in Exhibit &#147;B&#148;<A NAME="_DV_M21"></A>. &nbsp;The Keyes Plant also includes the real property on which the Keyes Plant is situated and identified in Exhibit <A NAME="_DV_C25"></A>&#147;A&#148;<A NAME="_DV_M22"></A>;</P>
<A NAME="_DV_M23"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt">WHEREAS, Praj Industries, an Indian engineering company (&#147;Praj&#148;)<A NAME="_DV_C26"></A>,<A NAME="_DV_M24"></A> designed and constructed the Keyes Plant pursuant to <A NAME="_DV_C28"></A>the Praj Agreements (as hereinafter defined) <A NAME="_DV_M25"></A>and granted<A NAME="_DV_C30"></A> Owner<A NAME="_DV_M26"></A> a license to use certain proprietary technology and information of Praj in connection with<A NAME="_DV_C32"></A> Owner<A NAME="_DV_M27"></A>&#146;s ownership, operation, maintenance and repair of the Keyes Plant upon the terms and conditions set forth therein (the &#147;Praj License&#148;);</P>
<A NAME="_DV_M28"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt">WHEREAS, Praj has agreed to provide $1 million to be used for <A NAME="_DV_C34"></A>operating expenses in connection with the Repair and Retrofit Activities (as hereinafter defined)<A NAME="_DV_M29"></A> (the &#147;Praj Funds&#148;);<A NAME="_DV_C35"></A> and</P>
<A NAME="_DV_M31"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt">WHEREAS, AE <A NAME="_DV_C37"></A>formed the Project Company as a wholly-owned subsidiary to perform the Repair and Retrofit Activities at the Keyes Plant,<A NAME="_DV_M32"></A> to lease the Keyes Plant from <A NAME="_DV_C39"></A>Owner<A NAME="_DV_M33"></A> for up to thirty-six <A NAME="_DV_C40"></A>(36) <A NAME="_DV_M34"></A>months<A NAME="_DV_C42"></A> pursuant to the Lease, to return the Keyes Plant<A NAME="_DV_M35"></A> to operation, <A NAME="_DV_M36"></A>and to then upgrade the plant with new capabilities for use of non-food feedstocks for ethanol production at lower operating cost (the &#147;Project&#148;)<A NAME="_DV_C46"></A>, all as more particularly described herein. </P>
<A NAME="_DV_M38"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt">NOW, THEREFORE, in consideration of the mutual covenants set forth herein and other good and valuable consideration, the receipt of which is hereby acknowledged by each Party, the Parties hereby agree as follows:</P>
<A NAME="_DV_M39"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:168px; text-indent:-96px; font-size:12pt">Section 1.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:168px; font-size:12pt">DEFINITIONS</P>
<A NAME="_DV_C48"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;AE&#148; is defined in the Preamble.</P>
<A NAME="_DV_M40"></A><A NAME="_DV_M41"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;AE Common Stock&#148; means the common stock, $.001 par value per share, of AE Biofuels, Inc. </P>
<A NAME="_DV_C51"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;AE Technology&#148; has the meaning set forth in the Recitals.</P>
<A NAME="_DV_C52"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Affiliate&#148; means, with respect to a Party, a wholly-owned subsidiary or majority-owned subsidiary of such Party.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Agreement&#148; is defined in the Preamble.</P>
<A NAME="_DV_M42"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Capital Expenditures&#148; means all <A NAME="_DV_C53"></A>documented <A NAME="_DV_M43"></A>costs approved by<A NAME="_DV_C55"></A> Owner in writing<A NAME="_DV_M44"></A> and incurred by <A NAME="_DV_C57"></A>AE<A NAME="_DV_M45"></A>, AE Sub or the Project Company with respect to upgrades to </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt">the Keyes Plant, including all capital expenditures incurred with respect to the Repair and Retrofit Activities, plant modifications pursuant to Section 6.2, and all other capital expenditures approved<A NAME="_DV_C60"></A> in writing by Owner<A NAME="_DV_M46"></A>. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Change of Control&#148; of a Party means (a) the acquisition by any Third Party of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended) of more than fifty percent (50%) of the then outstanding shares of a Party&#146;s voting securities in one or more transactions; (b) the consolidation in one or more transactions of a Party with, or merger of a Party into, another corporation or business entity in each case, if and only if, following such consolidation or merger, any Third Party has beneficial ownership of more than fifty percent (50%) of, respectively, the then outstanding shares of voting securities of the corporation resulting from such consolidation or merger and/or the combined voting power of the outstanding voting securities of such corporation or other business entity resulting from such consolidation or merger entitled to vote ge
nerally in the election of directors (or other persons having the general power to direct the affairs of such entity). &nbsp;A Third Party (for purposes of determining a &#147;Change of Control&#148; of Owner) shall not be deemed to include any stockholder of Owner or any of their Affiliates).</P>
<A NAME="_DV_M47"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Contract&#148; shall mean any agreement, contract, insurance policy, obligation, promise, or undertaking (whether written or oral and whether express or implied) that is legally binding.</P>
<A NAME="_DV_C62"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Environmental Laws&#148; shall mean any Legal Requirement concerning human health and safety, pollution or protection of the environment, or the storage, handling, use, generation, treatment, storage, transportation, disposal, release or threatened release of Hazardous Materials, including but not limited to the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. &#167; 9601 et seq.), the Hazardous Materials Transportation Act (49 U.S.C. &#167; 5101 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. &#167; 6901 et seq.), the Federal Water Pollution Control Act (33 U.S.C. &#167; 1251 et seq.), the Clean Air Act (42 U.S.C. &#167; 7401 et seq.), the Toxic Substances Control Act (15 U.S.C. &#167; 2601 et seq.), the Oil Pollution Act (33 U.S.C. &#167; 2701 et seq.), the Occupational Safety and Health Act (29 U.S.C. &#167; 651 et seq.), the Emergenc
y Planning and Community Right-to-Know Act (42 U.S.C. &#167; 11001 et seq.), the Porter-Cologne Water Quality Control Act (Cal. Water Code &#167; 13000 et seq.), the Safe Drinking Water and Toxic Enforcement Act of 1986 (Cal. Health &amp; Safety Code &#167; 25249.5 et seq.), the Hazardous Substance Account Act (Cal. Health &amp; Safety Code &#167; 25300 et seq.), the Hazardous Waste Control Act (Cal. Health &amp; Safety Code &#167; 25100 et seq.), and the California Clean Air Act (Cal. Health &amp; Safety Code &#167; 39000 et seq.).</P>
<A NAME="_DV_C63"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Equity Funding&#148; has the meaning set forth in the Recitals.</P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Existing Permits&#148; has the meaning set forth in Section 5.1.</P>
<A NAME="_DV_M48"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Governmental Authorization&#148; shall mean any approval, consent, license, permit, waiver or other authorization issued, granted, given, or otherwise made available by or under the authority of any Governmental Entity or pursuant to applicable Legal Requirements.</P>
<A NAME="_DV_M49"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Governmental Entity&#148; shall mean (i) a court, arbitral tribunal, administrative agency or commission, (ii) a nation, state, county, city town, village, district or other jurisdiction of any nature, (iii) federal, state, local, municipal, foreign or other government, or (iv) other governmental or other regulatory authority or agency.</P>
<A NAME="_DV_C65"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Hazardous Materials&#148; means any chemical, substance, material or waste (including constituents thereof), that is or may be hazardous to human health or safety or to the environment, that are now or become in the future listed, defined, or regulated in any manner by any Environmental Law, whether such law is regulatory or statutory, and is local, state or federal, and from time to time adopted.</P>
<A NAME="_DV_C66"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Industry Standards&#148; means those standards of care and diligence normally practiced by engineering, construction and operating firms in performing services of a similar nature for similar ethanol projects in the United States and in accordance with good engineering design and operating practices, applicable laws, applicable Permits, and that conform in all material respects to the manufacturer&#146;s operation and maintenance guidelines, in each case as applicable to the equipment in question, taking into account such equipment&#146;s size, service and type.</P>
<A NAME="_DV_M50"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Lease&#148; has the meaning set forth in Section 5.3.</P>
<A NAME="_DV_M51"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Lease Commencement Date&#148; shall<A NAME="_DV_C68"></A> mean the date determined by Project Company and Owner in accordance with Section 4.9. &nbsp;</P>
<A NAME="_DV_M53"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Legal Requirement&#148; shall mean any federal, state, local, municipal, foreign, international, multinational, or other administrative order, constitution, law, ordinance, principle of common law, regulation, statute, or treaty.</P>
<A NAME="_DV_M54"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Liabilities&#148; shall mean liabilities and obligations, secured or unsecured, whether absolute, accrued, contingent, fixed or otherwise, whether known or unknown and whether or not due, including liabilities for Taxes and all off-balance sheet liabilities and obligations.</P>
<A NAME="_DV_M55"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Licenses&#148; shall mean all licenses, sublicenses and other agreements pursuant to which <A NAME="_DV_C70"></A>Owner<A NAME="_DV_M56"></A> or any subsidiary has acquired rights in or to any trademarks, patents, </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt">copyrights or trade secrets and all licenses, sublicenses and other agreements pursuant to which <A NAME="_DV_C72"></A>Owner<A NAME="_DV_M57"></A> or any subsidiary has licensed or transferred the right to use any of the foregoing, other than standard business software licenses.</P>
<A NAME="_DV_C74"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Losses&#148; means any and all losses, costs, damages, fines, penalties, interests, assessments, fees or expenses (including reasonable attorney&#146;s fees)</P>
<A NAME="_DV_M58"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Organizational Documents&#148; shall mean (a) the articles or certificate of incorporation and the bylaws of a corporation; (b) the partnership agreement and any statement of partnership of a general partnership; (c) the limited partnership agreement and the certificate of limited partnership of a limited partnership; (d) the articles of organization, operating agreement and limited liability company agreement of a limited liability company; (e) any charter or similar document adopted or filed in connection with the creation, formation, or organization of a Person; and (f) any amendment to any of the foregoing </P>
<A NAME="_DV_C75"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Owner&#148; is defined in the Preamble.</P>
<A NAME="_DV_C76"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Owner Financing&#148; means the existing credit facility with CoBank, ACB, as administrative agent, secured in part by the Keyes Plant.</P>
<A NAME="_DV_C77"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Owner Stock&#148; means the issued and outstanding capital stock, $.001 par value per share, of Cilion, Inc.</P>
<A NAME="_DV_C78"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Parties&#148; and &#147;Party&#148; are as defined in the Preamble.</P>
<A NAME="_DV_C79"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Permits&#148; shall mean all governmental and non-governmental authorizations, consents, permits, approvals, entitlements, licenses, rulings, exemptions, variances, orders, judgments, decrees, declarations or regulations necessary to design, develop, construct, install, operate, use, maintain and test the Project, including with respect to the Repair and Retrofit Activities<A NAME="_DV_M59"></A>.</P>
<A NAME="_DV_M60"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Person&#148; shall mean a natural person, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, Governmental Entity or other entity or organization.</P>
<A NAME="_DV_M61"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Plant Repair Plan&#148; shall mean the Project Company&#146;s plan to <A NAME="_DV_C81"></A>conduct the Repair and <A NAME="_DV_C83"></A>Retrofit Activities of<A NAME="_DV_M62"></A> the Keyes Plant <A NAME="_DV_M63"></A>based upon the engineering work conducted by <A NAME="_DV_C86"></A>Owner<A NAME="_DV_M64"></A> and its engineering and process consultants, including approved design changes provided by Praj<A NAME="_DV_C88"></A>, which has been approved in writing by Owner and is attached hereto as Exhibit &#147;C&#148;, as may be amended in writing by mutual consent of Owner and Project Company from time to time. &nbsp;</P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Possession Date&#148; means the date that Owner delivers possession of the Keyes Plant to the Project Company to commence the Repair and Retrofit Activities pursuant to Section 4.1.</P>
<A NAME="_DV_C90"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Praj Agreements&#148; means (a) the Contract for Supply of Critical and Proprietary Equipment for Dehydrated Ethanol Project, dated as of September 20, 2006, between Owner and Praj, and (b) the Contract for Supply of Structural Material for Dehydrated Ethanol Project, dated as of December 15, 2006, between Owner and Praj, including, in each case, all schedules, annexes, addendums and amendments thereto. </P>
<A NAME="_DV_M66"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Praj Funds&#148; has the meaning set forth in the Recitals.</P>
<A NAME="_DV_M67"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Praj License&#148; has the meaning set forth in the Recitals.</P>
<A NAME="_DV_C94"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Project&#148; has the meaning set forth in the Recitals.</P>
<A NAME="_DV_C95"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Project Documents&#148; means, collectively, this Agreement and the Lease and any other material agreements entered into in connection with the Project.</P>
<A NAME="_DV_M68"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Repair and Retrofit Activities&#148; is defined in Section 4.1.</P>
<A NAME="_DV_M69"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Startup Losses&#148; shall mean <A NAME="_DV_C96"></A>documented <A NAME="_DV_M70"></A>net operating losses <A NAME="_DV_C97"></A>actually <A NAME="_DV_M71"></A>incurred by the Project Company during the first <A NAME="_DV_C99"></A>three month<A NAME="_DV_M72"></A>s after the Lease Commencement Date. </P>
<A NAME="_DV_C100"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Substantially Complete&#148; and &#147;Substantial Completion&#148; shall mean that all Repair and Retrofit Activities have been substantially completed in accordance with this Agreement and the Plant Repair Plan so that the Project Company can use the Keyes Plant for its intended purposes without material interference to the Project Company conducting its ordinary business activities thereon.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Tax&#148; or <A NAME="_DV_M74"></A>&#147;Taxes&#148; shall mean (i) any and all U.S. federal, state, local and non-U.S. taxes, assessments and other governmental charges, duties, impositions and liabilities, including taxes based upon or measured by gross receipts, income, profits, sales, use and occupation, and value added, ad valorem, transfer, franchise, withholding, payroll, recapture, employment, excise and property taxes, together with all interest, penalties and additions imposed with respect to such amounts, (ii) any liability for the payment of any amounts of the type described in clause (i) of this definition as a result of being a member of an affiliated, consolidated, combined or unitary group for any period, and (iii) any liability for the payment of any amounts of the type described in clauses (i) or (ii) of this definition as a result of any express or implied obligation to indemnify any oth
er person or as a result of any obligations under any Agreements or arrangements with any other </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt">person with respect to such amounts and including any liability for taxes of a predecessor or transferor entity.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Third Parties&#148; shall mean any entity or person other than Owner, AE and their respective affiliates.</P>
<A NAME="_DV_M76"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">&#147;Transactions&#148; shall mean all the transactions provided for or contemplated by this Agreement and the Lease.</P>
<A NAME="_DV_M77"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:168px; text-indent:-96px; font-size:12pt">Section 2.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:168px; font-size:12pt">FORMATION OF PROJECT COMPANY<A NAME="_DV_M78"></A>; ADVISORY BOARD<A NAME="_DV_M79"></A>.</P>
<A NAME="_DV_M80"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">2.1</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Formation of Project Company</U>. &nbsp;<A NAME="_DV_C107"></A>As of the date hereof, AE has formed the Project Company as a corporation in Delaware. &nbsp;AE has delivered copies of all Organization Documents relating to the Project Company to Owner. &nbsp;</P>
<A NAME="_DV_M81"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">2.2</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Project Company Advisory Board</U>. &nbsp;<A NAME="_DV_C110"></A>The Organizational Documents of the Project Company will provide that Owner<A NAME="_DV_M82"></A> may appoint two representatives to serve on the Project Company&#146;s <A NAME="_DV_M83"></A>advisory board<A NAME="_DV_C113"></A>.<A NAME="_DV_C114"></A> </P>
<A NAME="_DV_C115"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:168px; text-indent:-96px; font-size:12pt">Section 3.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:168px; font-size:12pt">FINANCING OF THE PROJECT COMPANY<A NAME="_DV_C116"></A></P>
<A NAME="_DV_C117"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">3.1</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>AE Funding for Repair and Retrofit Activities</U>. &nbsp;Promptly upon receipt of the Equity Funding but in no event later than 5 days thereafter, AE or an Affiliate of AE (other than the Project Company) will contribute funds in cash equal to $1,600,000 to the Project Company, such funds to be contributed on or before January 31, 2010 (the &#147;AE Funds&#148;). &nbsp;AE shall notify Owner in writing of the receipt of the Equity Funding and the contribution of the AE Funds to the Project Company, and shall provide written evidence of the foregoing reasonably satisfactory to the Owner. &nbsp;<A NAME="_DV_C118"></A></P>
<A NAME="_DV_C119"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">3.2</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Praj Funds</U>. &nbsp;Subject to the deposit of the AE Funds to the Project Company, Owner will cause Praj to remit $500,000 of the Praj Funds to the Project Company. &nbsp;Owner will cause the remaining $500,000 of the Praj Funds to be contributed to the Project Company within fifteen (15) days after Substantial Completion. &nbsp;<A NAME="_DV_C120"></A></P>
<A NAME="_DV_M85"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">3.3</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Government Grant and Loan Applications</U>. &nbsp;<A NAME="_DV_C123"></A>Owner<A NAME="_DV_M86"></A> shall<A NAME="_DV_C124"></A> reasonably<A NAME="_DV_M87"></A> cooperate with AE and the Project Company in submitting various applications for government sponsored grants and loans on behalf of the Project Company (the &#147;Project Grant Applications&#148;). &nbsp;All Confidential Information included in the Project Grant Applications shall be and shall remain the property of the <A NAME="_DV_C126"></A>disclosing party<A NAME="_DV_M88"></A>. &nbsp;In the event that a Project Grant Application is accepted and funds are granted or loans guaranteed, all funds shall become and remain the property of the Project Company<A NAME="_DV_C127"></A> to be used in accordance with this Agreement.</P>
<A NAME="_DV_C132"></A><P style="margin-top:0px; margin-bottom:16px"><BR>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">3.4</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Use of Funds</U>. &nbsp;Unless otherwise specified herein, all Praj Funds and the AE Funds received by the Project Company shall be used by the Project Company to implement the Repair and Retrofit Activities in accordance with the Plant Repair Plan and for working capital purposes, including hiring employees and operating the Keyes Plant after the Lease Commencement Date as set forth herein. Notwithstanding the foregoing, before using any of the Praj Funds, the Project Company shall obtain Owner&#146;s prior consent, not to be unreasonably withheld if such Praj Funds are used for working capital and the Repair and Retrofit Activities.</P>
<A NAME="_DV_M89"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:168px; text-indent:-96px; font-size:12pt">Section 4.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:168px; font-size:12pt">REPAIR AND RETROFIT ACTIVITIES<A NAME="_DV_C133"></A>; SUBSTANTIAL COMPLETION<A NAME="_DV_M90"></A>. <A NAME="_DV_C134"></A></P>
<A NAME="_DV_C135"></A><A NAME="_Ref245203160"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">4.1</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Possession Date</U>. &nbsp;Owner shall deliver possession of the Keyes Plant to the Project Company promptly following Owner&#146;s receipt, to its sole satisfaction, of all documentation reasonably requested by Owner evidencing that the Project Company has received $1.6 million of financing for the Repair and Retrofit Activities; <A NAME="_DV_C136"></A>provided, however, that the Project Company shall not be obligated to take possession of the Keyes Plant and to begin the Repair and Retrofit Activities until it has received at least $2,000,000 in funds, including $500,000 of Praj Funds.</P>
<A NAME="_DV_M91"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">4.2</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Repair and Retrofit Activities</U>. &nbsp;Subject to the terms and conditions <A NAME="_DV_C138"></A>set forth herein<A NAME="_DV_C140"></A> and in the Lease, the Project Company shall perform, and<A NAME="_DV_M92"></A> AE shall assist and/or support the Project Company in the performance of<A NAME="_DV_C141"></A>,<A NAME="_DV_M93"></A> all services, activities and other actions required for the development of the Project, in accordance with the directions of the <A NAME="_DV_M94"></A>Board of Directors<A NAME="_DV_M95"></A> of the Project Company, including but not limited to assistance and<A NAME="_DV_C144"></A>/<A NAME="_DV_M96"></A>or support in the following activities to be performed by the Project Company (collectively, the &#147;Repair and Retrofit Activities&#148;):</P>
<A NAME="_DV_M97"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">Repair and retrofit<A NAME="_DV_M98"></A> the Keyes Plant in accordance with the Plant Repair Plan<A NAME="_DV_C146"></A>, as such plan may be updated and amended from time to time upon the mutual agreement of the Owner and the Project Company<A NAME="_DV_M99"></A>;</P>
<A NAME="_DV_C148"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">Manage<A NAME="_DV_M100"></A> all aspects of the repair and retrofit of the Keyes Plant in a manner consistent with the Plant Repair Plan<A NAME="_DV_C150"></A>;</P>
<A NAME="_DV_C152"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(c)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">Ensure<A NAME="_DV_M101"></A> that an adequate number of experienced, competent and properly licensed personnel are hired <A NAME="_DV_C153"></A>and retained <A NAME="_DV_M102"></A>as employees or independent contractors to implement the Plant Repair Plan<A NAME="_DV_C155"></A>, including, without limitation, the current Keyes Plant&#146;s Plant Manager and Plant Engineer; and</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(d)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">&nbsp;(1) <A NAME="_DV_C157"></A>Prepare and <A NAME="_DV_C159"></A>submit<A NAME="_DV_M103"></A> all required regulatory filings for the repair, retrofit and operation of the Project, (2) <A NAME="_DV_C161"></A>procure and <A NAME="_DV_C163"></A>maintain<A NAME="_DV_M104"></A> all Permits </P>
<P style="margin-top:0px; margin-bottom:16px"><BR>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; font-size:12pt">necessary or <A NAME="_DV_M105"></A>appropriate for the repair, retrofit and operation of the Project, (3) <A NAME="_DV_C166"></A><B>prepare</B> and <A NAME="_DV_C168"></A><B>submit<A NAME="_DV_M106"></A></B> all filings of any nature that are required to be made under any governmental approval or filing, and (4) <A NAME="_DV_C170"></A><B>prepare<A NAME="_DV_M107"></A></B> and <A NAME="_DV_M108"></A><B>submit</B> all other filings of any nature that are required to be made by Project Company under any <A NAME="_DV_C174"></A><B>laws<A NAME="_DV_M109"></A></B> applicable to it or the Project.</P>
<A NAME="_DV_C177"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">4.3</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Performance</U>. &nbsp;The Project Company agrees following the Possession Date, subject to the receipt of $500,000 in Praj Funds, to diligently perform the Repair and Retrofit Activities in accordance with the Plant Repair Plan to prepare the Keyes Plant for its intended use. &nbsp;The Project Company shall commence the Repair and Retrofit Activities promptly following the Possession Date, subject to the receipt of $500,000 in Praj Funds, and thereafter continue the same with due diligence to achieve Substantial Completion as soon as commercially possible. &nbsp;The Repair and Retrofit Activities shall be performed (a) by the Project Company at the Project Company&#146;s sole cost and expense, (b) in a commercially reasonable manner and in accordance with the Plant Repair Plan and all applicable laws, ordinances, codes and insurance company requirements, Permit requirements and with I
ndustry Standards, (c) by duly qualified or licensed persons, (d) lien free other than liens filed in the ordinary course of business that are released upon completion of work, and (e) otherwise in accordance with all of the terms, covenants and conditions of this Agreement and the Lease. &nbsp;<A NAME="_DV_C178"></A></P>
<A NAME="_DV_C179"></A><A NAME="_Toc139039940"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">4.4</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Supply of Materials</U>. &nbsp;The Project Company shall obtain and provide all supplies or services required for the performance of the Repair and Retrofit Activities, including all temporary structures and other facilities required for the proper and safe performance and completion of the Repair and Retrofit Activities or that the Project Company must provide for the use of the Project Company or other parties and that do not form part of the Repair and Retrofit Activities such as office trailers, boarding, fences, covered ways, temporary footways and stairs, protection for workers such as guardrails, fences, notices, temporary lights, water and other consumables, utilities and services, erection structures and equipment such as shoring, falsework, forming materials, scaffolding, temporary stairs, staging, and all sanitary, safety, and first aid and fire prevention facilities of a te
mporary nature, and obtain and pay for an adequate supply of fuel, water, power, and all other necessary construction utility services (including fuel for construction equipment), all construction chemicals, lubricants, and construction consumables, and disposal of sewage, waste material, rubbish, and spoils generated by the Project Company, in each case as necessary for the Project Company&#146;s performance of the Repair and Retrofit Activities.<A NAME="_DV_C180"></A></P>
<A NAME="_DV_C181"></A><A NAME="_Ref116119347"></A><A NAME="_Toc139039945"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">4.5</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Maintenance of Project Site</U>. &nbsp;The Project Company shall maintain the Project site clear of debris, waste material, and rubbish. &nbsp;The Project Company shall dispose of such debris, waste material, and rubbish in accordance with applicable law.<A NAME="_DV_C182"></A> &nbsp;If Owner reasonably believes any materials, tools, equipment, machinery </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; font-size:12pt">and surplus materials brought on to the Project site by the Project Company or any other Person should be removed, the Project Company shall promptly upon written request by the Owner remove same from the Project site<A NAME="_DV_C183"></A> at its sole cost and expense.<A NAME="_DV_C184"></A></P>
<A NAME="_DV_C185"></A><A NAME="_Toc139039946"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">4.6</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Hazardous Material Business Plan</U>. &nbsp;The Project Company shall prepare, maintain and comply in all respects with a Hazardous Material Business Plan in accordance with Legal Requirements, including the rules and regulations of the Stanislaus County Environmental Resources Department. &nbsp;The Project Company shall provide Owner with copies of its Hazardous Material Business Plan from time to time upon Owner&#146;s request.<A NAME="_DV_C186"></A></P>
<A NAME="_DV_C187"></A><A NAME="_Toc139039947"></A><A NAME="_Ref116119843"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">4.7</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Project Site Security</U>. &nbsp;During the performance of any of the Repair and Retrofit Activities at the Project site, the Project Company shall provide all necessary and reasonably appropriate safeguards for the protection of the Project, and all persons and other property related thereto, including lights and barriers, guard service, controlled access, and other measures reasonably required to prevent vandalism, theft, and danger to the Project and personnel. &nbsp;The Project Company shall keep Owner informed of any security breaches promptly upon the occurrence thereof. &nbsp;</P>
<A NAME="_DV_M110"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">4.8</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Cooperation; Right to Participate in Project Activities</U>. &nbsp;The Parties agree to cooperate with one another in the performance of their obligations under this Agreement. &nbsp;For all Repair and Retrofit Activities under this Agreement,<A NAME="_DV_C189"></A> Owner<A NAME="_DV_M111"></A> may participate fully in all aspects of implementation, including the opportunity to attend any meetings or discussions with third parties and <A NAME="_DV_C191"></A>Governmental Entities. &nbsp;Any<A NAME="_DV_M112"></A> conversion or modification of the equipment or process at the Keyes <A NAME="_DV_C193"></A>Plant<A NAME="_DV_M113"></A> (other than any conversion or modification that is a Repair and Retrofit Activity) will require the prior written approval from <A NAME="_DV_C195"></A>Owner (which approval may be given or withheld in Owner&#146;s sole and absolute discretion)<A NAME="_DV_M114
"></A>.</P>
<A NAME="_DV_M115"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">4.9</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Joint Inspection<A NAME="_DV_C196"></A>; Substantial Completion<A NAME="_DV_M116"></A></U>. &nbsp;Project Company and <A NAME="_DV_C198"></A>Owner<A NAME="_DV_M117"></A> will jointly inspect the Keyes Plant upon completion of the Repair and Retrofit Activities to verify that the Repair and Retrofit Activities are <A NAME="_DV_C200"></A>Substantially Complete<A NAME="_DV_M118"></A> in accordance with the requirements of the <A NAME="_DV_C201"></A>Plant <A NAME="_DV_M119"></A>Repair Plan. &nbsp;If Project Company and <A NAME="_DV_C203"></A>Owner<A NAME="_DV_M120"></A> mutually agree that the Repair and Retrofit Activities are <A NAME="_DV_C205"></A>Substantially Complete<A NAME="_DV_M121"></A>, which agreement shall not unreasonably be withheld, the Project Company and Owner shall execute a &#147;Certificate of Substantial Completion&#148; that will set forth (i) the date of Substantial 
Completion, and (ii) the Lease Commencement Date. &nbsp;<A NAME="_DV_C208"></A></P>
<A NAME="_DV_C209"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">4.10</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Hiring of Employees</U>. &nbsp;Upon the execution of this Agreement and the receipt by the Project Company of the first $500,000 of the Praj Funds, the Project Company will hire the Keyes Plant&#146;s current Plant Manager and Plant Engineer. &nbsp;</P>
<A NAME="_DV_M123"></A><P style="margin-top:0px; margin-bottom:16px"><BR>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:168px; text-indent:-96px; font-size:12pt">Section 5.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:168px; font-size:12pt">PLANT OPERATIONS. </P>
<A NAME="_DV_M124"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">5.1</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Assignment or Transfer of Permits</U>. &nbsp;<A NAME="_DV_M125"></A>Set forth on Exhibit <A NAME="_DV_C212"></A>&#147;D&#148;<A NAME="_DV_M126"></A> attached hereto are all of the material <A NAME="_DV_C214"></A>Permits required for the maintenance and operation of the Keyes Plant<A NAME="_DV_M127"></A> as operated to the date hereof (collectively, the <A NAME="_DV_C216"></A>&#147;Existing Permits&#148;). &nbsp;Owner<A NAME="_DV_M132"></A> shall use commercially reasonable efforts to transfer or cause to be transferred to the Project Company all <A NAME="_DV_C217"></A>Existing <A NAME="_DV_M133"></A>Permits that are capable of being transferred or <A NAME="_DV_C218"></A>reasonably <A NAME="_DV_M134"></A>shall assist the Project Company to obtain such Permits that are not transferable.<A NAME="_DV_C219"></A> &nbsp;The Project Company shall promptly reimburse Owner for all costs and expe
nses related to such transfer upon receipt of an invoice setting for such costs and expenses. &nbsp;Upon the expiration or earlier termination of this Agreement or the Lease, the Project Company (at Owner&#146;s sole cost and expense) shall promptly transfer or cause to be transferred all such Permits back to Owner. &nbsp;</P>
<A NAME="_DV_M135"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">5.2</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Assignment of Praj License</U>. &nbsp;<A NAME="_DV_C221"></A>Effective upon the Lease Commencement Date, Owner shall<A NAME="_DV_M136"></A> use its commercially reasonable efforts to assign all of its rights, title and interest in and to the Praj <A NAME="_DV_M137"></A>License to <A NAME="_DV_M138"></A>the Project Company<A NAME="_DV_C226"></A>. &nbsp;Such assignment shall automatically terminate and all rights, title and interest in and to the Praj License shall revert to Owner upon the expiration or earlier termination of this Agreement or<A NAME="_DV_M141"></A> the Lease. &nbsp;</P>
<A NAME="_DV_M143"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">5.3</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Lease of Keyes Plant</U>. &nbsp;<A NAME="_DV_C228"></A>Concurrently with the execution of this Agreement, the<A NAME="_DV_M144"></A> Project Company <A NAME="_DV_C229"></A>and Owner <A NAME="_DV_M145"></A>shall enter into a thirty-six <A NAME="_DV_C230"></A>(36) <A NAME="_DV_M146"></A>month lease of the Keyes Plant<A NAME="_DV_M147"></A> in the form of lease attached hereto as Exhibit <A NAME="_DV_C233"></A>&#147;E&#148;<A NAME="_DV_M148"></A> (the &#147;Lease&#148;). &nbsp;</P>
<A NAME="_DV_C235"></A><A NAME="_Toc139039938"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">5.4</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Provision of Services</U>. &nbsp;The Project Company shall install, connect, and maintain at its own expense during its performance under this Agreement all utilities, facilities, and services required for the performance of the Repair and Retrofit Activities and the operation of the Keyes Plant. &nbsp;All actions taken by the Project Company concerning the utilities, facilities, and services used or provided hereunder shall follow all applicable laws and the standards of performance set forth in this Agreement.<A NAME="_DV_C236"></A></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">5.5</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Payment for Services</U>. &nbsp;Commencing on the Possession Date, the Project Company shall pay when due all utilities and other similar charges and shall arrange with local authorities and utility companies having jurisdiction over the Project and the Keyes Plant for the provision of utilities.</P>
<A NAME="_DV_C239"></A><A NAME="_Ref133397508"></A><A NAME="_Toc139039948"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">5.6</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Safety</U>. &nbsp;During the performance of the Repair and Retrofit Activities at the Project site and at all times during the operation of the Keyes Plant, the Project Company shall be solely responsible for the safety of the persons at the Project site and for the safe performance of the activities at the Project site. &nbsp;The Project </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; font-size:12pt">Company shall give notices and comply with applicable laws, ordinances, rules, regulations and lawful orders of public authorities bearing on the safety of persons or property or their protection from damage, injury or loss. &nbsp;The Project Company&#146;s safety program shall be designed to provide a safe and healthful environment at the Project site and shall, among other things, seek to achieve an incident free performance of such activities. &nbsp;The Project Company shall be solely responsible for implementing and following safety programs at the Project site and shall perform the Repair and Retrofit Activities and operate the Keyes Plant in accordance with such programs. &nbsp;The Project Company shall promptly provide written notice to Owner <A NAME="_DV_C240"></A>of any incidents or accidents that occur on the Project site and such other information as may be reasonably requested by Owner from time t
o time. &nbsp;<A NAME="_DV_C241"></A></P>
<A NAME="_DV_C242"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">5.7</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Governmental Plans and Filings</U>. &nbsp;In the event the Project Company resubmits any plans or makes any additional or supplemental filings for the Keyes Plant to any Governmental Entity, following the Project Company&#146;s&#146; initial submission of the same, the Project Company shall first submit such plans and filings to Owner for Owner&#146;s review and approval, not to be unreasonably withheld, conditioned or delayed. &nbsp;Notwithstanding anything to the contrary, Owner shall provide the Project Company with any comments to the plans set forth in this Section 4.2 within ten (10) days after receipt thereof. &nbsp;The Project Company shall consider any such comments in good faith and incorporate them into the plans and filings before submission. &nbsp;&nbsp;</P>
<A NAME="_Ref131820849"></A><A NAME="_Ref135026362"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">5.8</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Financial Reporting</U>. &nbsp;Within sixty (60) days after the end of each calendar quarter commencing on the Possession Date during the term hereof, Project Company shall deliver to Owner a copy of its unaudited quarterly account balances of cash and cash equivalents, total stockholders equity, revenue and net income prepared and reported in accordance with generally accepted accounting principles consistently applied and certified to their accuracy by an authorized officer for the Project Company. &nbsp;Owner agrees to maintain the confidentiality of all financial reporting supplied or disclosed by the Project Company. <A NAME="_DV_C243"></A></P>
<A NAME="_DV_M149"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:168px; text-indent:-96px; font-size:12pt">Section 6.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:168px; font-size:12pt">FUTURE PLANT MODIFICATIONS.</P>
<A NAME="_DV_M150"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">6.1</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>AE Technology License</U>. &nbsp;AE or its Affiliate shall provide to the Project Company on or prior to Lease Commencement Date a royalty-free, site-specific license in and to the Project Company for the AE Technology to run coterminous with the term of the Lease, including any early termination thereof.</P>
<A NAME="_DV_M156"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">6.2</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Plant Modifications</U>. &nbsp;The Project Company shall not make any modifications to the Keyes Plant, including any equipment or process modifications<A NAME="_DV_C255"></A> or modifications to the Plant Repair Plan<A NAME="_DV_M157"></A> in connection with <A NAME="_DV_C257"></A>the Repair and Retrofit </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; font-size:12pt">Activities or any other modifications to<A NAME="_DV_M158"></A> the Keyes Plant <A NAME="_DV_C259"></A>after Substantial Completion<A NAME="_DV_M159"></A>, without<A NAME="_DV_C260"></A>, in each case,<A NAME="_DV_M160"></A> the prior written consent of <A NAME="_DV_C262"></A>Owner<A NAME="_DV_M161"></A>.</P>
<A NAME="_DV_M162"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:168px; text-indent:-96px; font-size:12pt">Section 7.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:168px; font-size:12pt">REPRESENTATIONS AND WARRANTIES OF <A NAME="_DV_C264"></A>OWNER. &nbsp;Owner<A NAME="_DV_M163"></A> represents and warrants to AE <A NAME="_DV_C265"></A>and the Project Company <A NAME="_DV_M164"></A>that <A NAME="_DV_M165"></A>the<A NAME="_DV_C267"></A> following<A NAME="_DV_M166"></A> statements contained in this Section 7 are true and complete as of the date of this Agreement (<A NAME="_DV_C269"></A>unless specifically referring to an earlier date, in which case such statements shall be true and correct as of such date): &nbsp;</P>
<A NAME="_DV_M167"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">7.1</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Organization; Qualification of <A NAME="_DV_C271"></A></U><B><U>Owner<A NAME="_DV_M168"></A></U></B>. &nbsp;<A NAME="_DV_C273"></A><B>Owner<A NAME="_DV_M169"></A></B> is a corporation, duly organized, validly existing and in good standing under the laws of the state of its incorporation or organization, as applicable; (ii) has full corporate power and authority to carry on its business as it is being conducted and as proposed to be conducted and to own and use the properties and assets it now owns or proposes to acquire; (iii) is duly qualified or licensed to do business as a foreign corporation in good standing in<A NAME="_DV_C275"></A> California<A NAME="_DV_M170"></A>; and (iv) has all requisite power and authority to execute and deliver this Agreement and the Lease and perform its obligations hereunder and thereunder, and has taken all necessary action to authorize the execution, d
elivery and performance of this Agreement and the Lease. &nbsp;<A NAME="_DV_C276"></A>Cilion has heretofore delivered to AE complete and correct copies of the Organizational Documents of Cilion as presently in effect.</P>
<A NAME="_DV_M171"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">7.2</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Binding Agreement; Consents and Approvals; No Conflict, Default or Violation</U>. </P>
<A NAME="_DV_M172"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">Each <A NAME="_DV_C278"></A>Project Document to which it is a party<A NAME="_DV_M173"></A> has been duly executed and delivered by <A NAME="_DV_C280"></A>Owner<A NAME="_DV_M174"></A> and constitutes a legal, valid and binding obligation of <A NAME="_DV_C282"></A>Owner<A NAME="_DV_M175"></A> enforceable against <A NAME="_DV_C284"></A>Owner<A NAME="_DV_M176"></A> 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&#146; rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law).</P>
<A NAME="_DV_M177"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">Subject to receipt of approval of this Project Agreement and the Lease Agreement by CoBank as administrator of the Owner Financing, the execution, delivery or performance of <A NAME="_DV_C286"></A>each Project Document to which it is a Party by Owner will not, directly or indirectly (with or without notice of lapse of time or both)</P>
<A NAME="_DV_C288"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:240px; font-size:12pt"><A NAME="_DV_M186"></A>contravene, conflict with, or result in a violation of <A NAME="_DV_C289"></A><B>(i)<A NAME="_DV_M187"></A></B>(A) any provision of the Organizational Documents of <A NAME="_DV_C291"></A><B>Owner<A NAME="_DV_M188"></A></B>, or (B) any resolution adopted by the board of directors or shareholders of <A NAME="_DV_C293"></A></P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:240px; font-size:12pt">Owner; or (ii) any provision of any indenture, mortgage, chattel mortgage, deed of trust, lease, conditional sales contract, loan or credit arrangement or other agreement or instrument to which Owner is a party or by which it or its properties may be bound or affected.</P>
<A NAME="_DV_C294"></A><P style="margin-top:0px; margin-bottom:16px"><A NAME="_DV_C296"></A><BR></P>
<A NAME="_DV_C297"></A><P style="margin-top:0px; margin-bottom:16px"><BR></P>
<A NAME="_DV_C299"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(c)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">Other than in connection with the Owner Financing and the assignment of the Praj License, Owner<A NAME="_DV_M189"></A> is not or will not be required to give any notice to or obtain any <A NAME="_DV_C301"></A>consent<A NAME="_DV_M190"></A> from any Person in connection with the execution, delivery or performance of this Agreement or the Lease or the consummation of any of the Transactions.</P>
<A NAME="_DV_M191"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(d)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">No consent, approval, order or authorization of, or registration, declaration or filing with, any Governmental Entity is required with respect to <A NAME="_DV_C304"></A><B>Owner<A NAME="_DV_M192"></A></B> in connection with the execution and delivery of this Agreement, the Lease or the consummation of the Transactions contemplated hereby and thereby, except for (i) such consents, authorizations, filings, approvals and registrations which, if not obtained or made, would not prevent, materially alter or delay any of the transactions contemplated by this Agreement or the Lease. </P>
<A NAME="_DV_M193"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">7.3</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Title to Properties; Encumbrances<A NAME="_DV_C307"></A></U>. &nbsp;Owner<A NAME="_DV_M194"></A> has good, valid and marketable title to<A NAME="_DV_C308"></A> the real property and improvements thereon comprising<A NAME="_DV_M195"></A> the Keyes Plant<A NAME="_DV_C309"></A>, which<A NAME="_DV_C311"></A> title is subject only to those liens, documents and matters set forth in the Title Report attached as Exhibit &#147;F&#148;, to the extent valid and enforceable, and all applicable laws, ordinances and regulations. &nbsp;</P>
<A NAME="_DV_C319"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">7.4</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Environmental Matters</U>. &nbsp;Except as noted in Exhibit D, to Owner&#146;s knowledge, the Keyes Plant is in material compliance with all applicable Environmental Laws and Owner has not received any written notice from any Governmental Entity that alleges that the Keyes Plant is not in material compliance with </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; font-size:12pt">any applicable Environmental Laws. &nbsp;Owner has provided to AE copies of<A NAME="_DV_M196"></A> all environmental-related assessments, reports, data, results of investigations or audits, such as Phase I or Phase II reports and other written documentation that is in the possession <A NAME="_DV_C321"></A>and control of Owner<A NAME="_DV_M197"></A> regarding the environmental condition of, or the compliance (or noncompliance)<A NAME="_DV_C323"></A> of the Keyes Plant with any Environmental Laws.<A NAME="_DV_C324"></A> &nbsp;Notwithstanding anything in this Agreement to the contrary, Owner makes no representations or warranties whatsoever regarding any aspect of such environmental documentation, including without limitation, the accuracy or completeness of the documentation, its preparation, or any information upon which it is based. &nbsp;Any reliance on the environmental documentation or any information cont
ained therein shall be at the risk of AE and the Project Company.</P>
<A NAME="_DV_M198"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">7.5</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Litigation</U>. &nbsp;There is no action, suit, inquiry, proceeding or investigation<A NAME="_DV_M199"></A> by or before any court or Governmental Entity pending or, to the <A NAME="_DV_C341"></A>actual <A NAME="_DV_M200"></A>knowledge of <A NAME="_DV_C343"></A>Owner without independent inquiry or investigation<A NAME="_DV_M201"></A>, threatened against or involving <A NAME="_DV_C345"></A>Owner that could materially adversely affect the financial condition of Owner, Owner&#146;s ability to observe and perform fully its agreements and obligations hereunder and under the Lease<A NAME="_DV_M202"></A>, or the Project Company&#146;s ability to operate the Keyes Plant as contemplated by this Agreement and the Lease.</P>
<A NAME="_DV_M203"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">7.6</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Compliance with Laws</U>. &nbsp;<A NAME="_DV_C346"></A>Owner has complied in a timely manner and in all material respects with all Legal Requirements that affect the Keyes Plant, and no notice, charge, claim, action or assertion <A NAME="_DV_C348"></A>has been received by Owner or has been filed, commenced or, to the knowledge of Cilion, threatened against Owner<A NAME="_DV_C349"></A> by any Governmental Entity<A NAME="_DV_M205"></A> alleging any violation of any Legal Requirements<A NAME="_DV_C350"></A>. &nbsp;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">7.7</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt">. &nbsp;No agent, broker, investment banker, financial advisor or other firm or Person is or will be entitled to any brokers&#146; or finder&#146;s fee or any other commission or similar fee from Owner or any of its Affiliates in connection with any of the Transactions.</P>
<A NAME="_DV_M209"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">7.8</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Representations</U>. &nbsp;No representation or warranty by Owner contained in this Agreement or the Lease contains at the time it was made, or will contain at the time it is made, any untrue statement of material fact or omits, or will at the time it is made omit, to state any material fact necessary, in light of the circumstances under which it was made, in order to make the statements herein or therein not misleading.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">7.9</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Intellectual Property Rights</U>. &nbsp;Exhibit <A NAME="_DV_C366"></A>&#147;G&#148; <A NAME="_DV_M210"></A>lists all of the <A NAME="_DV_C368"></A>intellectual property<A NAME="_DV_M211"></A> owned or licensed by <A NAME="_DV_C370"></A>Owner<A NAME="_DV_M212"></A>, used in connection with the Keyes Plant (the &#147;Owner Intellectual Property&#148;). &nbsp;The Owner Intellectual Property is hereby licensed royalty-free to the Project Company pursuant to this Agreement<A NAME="_DV_C374"></A>. &nbsp;To the knowledge of Owner without independent inquiry or investigation, use by Owner<A NAME="_DV_M214"></A> or the </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; font-size:12pt">Project Company of the <A NAME="_DV_C376"></A>Owner<A NAME="_DV_M215"></A> Intellectual Property does not or will not infringe any rights of any Third Party and no activity of any Third Party infringes upon the rights of <A NAME="_DV_C378"></A>Owner<A NAME="_DV_M216"></A> or the Project Company with respect to any of Owner Intellectual Property.<A NAME="_DV_C379"></A> To the extent any Owner Intellectual Property is licensed to Owner by a Third Party, such license is in full force and effect and the execution, delivery or performance of this Agreement or the Lease by Owner or the consummation by Owner of any of the Transactions will not, directly or indirectly (with or without notice of lapse of time or both) give any party the right to terminate or cancel such license (subject to getting consent with respect to the Praj License).</P>
<A NAME="_DV_M217"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:168px; text-indent:-96px; font-size:12pt">Section 8.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:168px; font-size:12pt">REPRESENTATIONS AND WARRANTIES OF AE<A NAME="_DV_C385"></A> AND THE PROJECT COMPANY. &nbsp;Each of AE and the Project Company represent and warrant to Owner that the following<A NAME="_DV_M218"></A> statements contained in this Section 8 are true and complete as of the date of this Agreement <A NAME="_DV_C387"></A>unless specifically referring to an earlier date, in which case such statements shall be true and correct as of such date):</P>
<A NAME="_DV_M219"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">8.1</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Organization; Qualification of AE</U>. &nbsp;<A NAME="_DV_C389"></A>Such Party<A NAME="_DV_M220"></A> is a corporation, duly organized, validly existing and in good standing under the laws of the state of its incorporation or organization, as applicable; (ii) has full corporate power and authority to carry on its business as it is being conducted and as proposed to be conducted and to own and use the properties and assets it now owns or proposes to acquire; (iii) is duly qualified or licensed to do business as a foreign corporation in good standing in every jurisdiction in which the ownership and use of its property or the conduct of its business requires such qualification<A NAME="_DV_M221"></A>; and (iv) has all requisite power and authority to execute and deliver<A NAME="_DV_C392"></A> the Project Documents to which it is a party<A NAME="_DV_M222"></A> and perform its obligations th
ereunder, and has taken all necessary action to authorize the execution, delivery and performance of <A NAME="_DV_C395"></A>the Project Documents to which it is a party<A NAME="_DV_M224"></A>. &nbsp;</P>
<A NAME="_DV_M225"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">8.2</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Binding Agreement; Consents and Approvals; No Conflict, Default or Violation</U>. </P>
<A NAME="_DV_M226"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">Each<A NAME="_DV_C397"></A> Project Document to which it is a party<A NAME="_DV_M227"></A> has been duly executed and delivered by <A NAME="_DV_C399"></A>such Party<A NAME="_DV_M228"></A> and constitutes a legal, valid and binding obligation of <A NAME="_DV_C401"></A>such Party<A NAME="_DV_M229"></A> enforceable against <A NAME="_DV_C403"></A>such Party<A NAME="_DV_M230"></A> 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&#146; rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law).</P>
<A NAME="_DV_M231"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">The execution, delivery or performance of <A NAME="_DV_C405"></A>each<A NAME="_DV_M232"></A> Project <A NAME="_DV_C407"></A>Document to which it is a party<A NAME="_DV_M233"></A> or the consummation by <A NAME="_DV_C409"></A>such Party<A NAME="_DV_M234"></A> of any of the </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; font-size:12pt">Transactions will not, directly or indirectly (with or without notice of lapse of time or both):</P>
<A NAME="_DV_M235"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:240px; text-indent:-48px; font-family:(normal text); font-size:12pt">(i)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:240px; font-size:12pt">contravene, conflict with, or result in a violation of (A) any provision of the Organizational Documents of AE or the Project Company, or (B) any resolution adopted by the board of directors or shareholders of AE or the Project Company;</P>
<A NAME="_DV_M236"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:240px; text-indent:-48px; font-family:(normal text); font-size:12pt">(ii)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:240px; font-size:12pt">contravene, conflict with, or result in a violation of, or give any Governmental Entity or other Person the right to challenge any of the Transactions or to exercise any remedy or obtain any relief under, any Legal Requirement to which, AE or the Project Company, or any of the assets owned or used by AE or the Project Company, may be subject;</P>
<A NAME="_DV_M237"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:240px; text-indent:-48px; font-family:(normal text); font-size:12pt">(iii)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:240px; font-size:12pt">contravene, conflict with, or result in a violation of any of the terms or requirements of, or give any Governmental Entity the right to revoke, withdraw, suspend, cancel, terminate, or modify, any Governmental Authorization that is held by AE or the Project Company or that otherwise relates to the business of, or any of the assets owned or used by, AE or the Project Company<A NAME="_DV_C410"></A>;<A NAME="_DV_C411"></A></P>
<A NAME="_DV_C412"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:240px; text-indent:-48px; font-family:(normal text); font-size:12pt">(iv)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:240px; font-size:12pt">contravene, conflict with, or result in a violation or breach of any provision of any provision of any indenture, mortgage, chattel mortgage, deed of trust, lease, conditional sales contract, loan or credit arrangement or other agreement or instrument to which AE or the Project Company is a party or by which it or its properties may be bound or affected to which it is a party; or<A NAME="_DV_C413"></A></P>
<A NAME="_DV_C414"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:240px; text-indent:-48px; font-family:(normal text); font-size:12pt">(v)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:240px; font-size:12pt">result in the imposition or creation of any Encumbrance upon or with respect to any of the assets owned or used by the Owner<A NAME="_DV_M238"></A>.</P>
<A NAME="_DV_M239"></A><A NAME="_DV_M244"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(c)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">Except for the application for and the obtaining of the necessary permits to operate and maintain the Keyes Plant, including those that may be listed on Exhibit &#147;D&#148;, and except for such consents, authorizations, filings, </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; font-size:12pt">approvals and registrations which, if not obtained or made, would not prevent, materially alter or delay any of the transactions contemplated by<A NAME="_DV_C425"></A> the Project Documents, no consent, approval, order or authorization of, or registration, declaration or filing with, any Governmental Entity is required with respect to AE of the Project Company in connection with the execution and delivery of<A NAME="_DV_C423"></A> any Project Document<A NAME="_DV_M245"></A> or the consummation of the Transactions contemplated hereby and thereby.<A NAME="_DV_C426"></A></P>
<A NAME="_DV_C427"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">8.3</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Litigation</U>. &nbsp;There is no action, suit, inquiry, proceeding or investigation by or before any court or Governmental Entity pending or, to the actual knowledge of such Party without independent inquiry or investigation, threatened against or involving such Party that could materially adversely affect such Party&#146;s ability to observe and perform fully its agreements and obligations under each Project Document to which it is a party.<A NAME="_DV_C428"></A></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">8.4</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Intellectual Property</U>. &nbsp;The Project Company owns or prior to the Lease Commencement Date will obtain the right to use all patents, trademarks, service marks, trade names, copyrights, licenses, franchises, and Permits necessary to perform the Repair and Retrofit Activities and to operate the Keyes Plant as currently contemplated without conflict with the rights of others.</P>
<A NAME="_DV_C434"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:168px; text-indent:-96px; font-size:12pt">Section 9.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:168px; font-size:12pt">FURTHER <A NAME="_DV_M246"></A>COVENANTS. &nbsp;</P>
<A NAME="_DV_M247"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">9.1</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Cooperation</U>. &nbsp;<A NAME="_DV_C436"></A>Upon<A NAME="_DV_M248"></A> the terms and subject to the conditions of this Agreement, AE<A NAME="_DV_C437"></A>, Owner<A NAME="_DV_M249"></A> and<A NAME="_DV_C439"></A> the Project Company<A NAME="_DV_M250"></A> shall use their respective<A NAME="_DV_C440"></A> commercially<A NAME="_DV_M251"></A> reasonable best efforts to take, or cause to be taken, all actions, and to do, or cause to be done and cooperate with each other in order to do, all things necessary, proper or advisable (subject to any applicable laws) to consummate the Transactions as promptly as practicable including, but not limited to the preparation and filing of all forms, registrations and notices required to be filed to consummate the<A NAME="_DV_M253"></A> Transactions and the taking of such actions as are necessary to obtain any requisite approvals, authorizations, <A N
AME="_DV_C444"></A>consents<A NAME="_DV_M254"></A>, orders, licenses, qualifications, exemptions or waivers by any Third Party or Governmental Entity. &nbsp;In addition, no <A NAME="_DV_C446"></A>Party<A NAME="_DV_M255"></A> hereto shall take any action after the date hereof that could reasonably be expected to materially delay the obtaining of, or result in not obtaining, any permission, approval or <A NAME="_DV_C448"></A>consent<A NAME="_DV_M256"></A> from any Governmental Entity or other Person required to be obtained<A NAME="_DV_M257"></A>.</P>
<A NAME="_DV_M258"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">9.2</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Consult with Other Party</U>. &nbsp;Prior to the Lease Commencement Date, each <A NAME="_DV_C451"></A>Party<A NAME="_DV_M259"></A> shall promptly consult with the other <A NAME="_DV_C453"></A>Parties<A NAME="_DV_M260"></A> hereto with respect to, provide any necessary information with respect to, and provide the other <A NAME="_DV_C455"></A>Parties<A NAME="_DV_M261"></A> (or their respective counsel) with copies of, all filings made by such <A NAME="_DV_C457"></A>Party<A NAME="_DV_M262"></A> with any Governmental Entity or any other information supplied by such <A NAME="_DV_C459"></A>Party<A NAME="_DV_M263"></A> to a </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; font-size:12pt">Governmental Entity in connection with this Agreement and the Transactions. &nbsp;Each <A NAME="_DV_C461"></A>Party<A NAME="_DV_M264"></A> hereto shall promptly provide the other <A NAME="_DV_C463"></A>Parties<A NAME="_DV_M265"></A> with copies of any communication received by such <A NAME="_DV_C465"></A>Party<A NAME="_DV_M266"></A> from any Governmental Entity regarding any of the Transactions. &nbsp;If any <A NAME="_DV_C467"></A>Party<A NAME="_DV_M267"></A> hereto or Affiliate<A NAME="_DV_M268"></A> thereof receives a request for additional information or documentary material from any such Governmental Entity with respect to any of the Transactions, then such <A NAME="_DV_C471"></A>Party<A NAME="_DV_M269"></A> shall endeavor in good faith to make, or cause to be made, as soon as reasonably practicable and after consultation with the other <A NAME="_DV_C473"></A>Parties<A NAME="_DV_M270"></A>, an appropriate
 response in compliance with such request. &nbsp;To the extent that transfers, amendments or modifications of Permits (including environmental Permits) are required as a result of the execution of this Agreement, the other <A NAME="_DV_C475"></A>Project<A NAME="_DV_M271"></A> Documents or consummation of any of the Transactions, <A NAME="_DV_C477"></A>Owner<A NAME="_DV_M272"></A> shall use <A NAME="_DV_C479"></A>commercially<A NAME="_DV_M273"></A> reasonable<A NAME="_DV_M274"></A> efforts to effect such transfers, amendments or modifications.</P>
<A NAME="_DV_M275"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">9.3</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Public Disclosure</U>. &nbsp;Prior to the Lease Commencement Date, AE<A NAME="_DV_C481"></A>, the Project Company<A NAME="_DV_M276"></A> and <A NAME="_DV_C483"></A>Owner<A NAME="_DV_M277"></A> will consult with each other, and agree, before issuing any press release or otherwise making any public statement with respect to this Agreement and will not issue any such press release or make any such public statement without the written consent of the other, except as may be required by law or any listing agreement with a national securities exchange or market.</P>
<A NAME="_DV_M278"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">9.4</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Grant of Right of First Refusal by <A NAME="_DV_C486"></A>Owner</U>. &nbsp;Provided that this Agreement and the Lease are both in full force and effect, the AE Funds have been received by the Project Company and there is no uncured event of default by either AE or the Project Company hereunder or thereunder beyond any applicable cure period, before Owner<A NAME="_DV_M279"></A> may (i) sell or otherwise transfer all or any portion of <A NAME="_DV_C488"></A>its interest in the real property and tangible personal property (other than the <B>equipment listed on Exhibit </B>&#147;H&#148;) comprising the Keyes Plant<A NAME="_DV_M281"></A> necessary for the operation of the Keyes Plant (<A NAME="_DV_C490"></A>collectively, <A NAME="_DV_M282"></A>the &#147;Keyes Plant Assets&#148;), or (ii) consummate a Change in Control, AE<A NAME="_DV_C491"></A> <A NAME="_DV_M283"></A>shall have a right of f
irst refusal to purchase Owner or all but not less than all of the<A NAME="_DV_M284"></A> Keyes Plant<A NAME="_DV_C493"></A> Assets<A NAME="_DV_M285"></A> on the terms and conditions set forth in this Section <A NAME="_DV_C495"></A>9.4<A NAME="_DV_M286"></A> (the <A NAME="_DV_C497"></A>&#147;<A NAME="_DV_M287"></A> <A NAME="_DV_M288"></A>Right of First Refusal<A NAME="_DV_C499"></A>&#148;<A NAME="_DV_M289"></A>). &nbsp;</P>
<A NAME="_DV_M290"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt"><U>Notice of Proposed Transfer</U>. <A NAME="_DV_C501"></A>Owner<A NAME="_DV_M291"></A> shall (a) deliver to AE a written notice (the <A NAME="_DV_C503"></A>&#147;ROFR<A NAME="_DV_M292"></A> Notice<A NAME="_DV_C505"></A>&#148;<A NAME="_DV_M293"></A>) stating: (i) <A NAME="_DV_C507"></A>Owner<A NAME="_DV_M294"></A>&#146;s bona fide intention to sell or otherwise transfer the Keyes Plant Assets or to consummate a Change of Control; (ii) the name of each proposed purchaser or other transferee (<A NAME="_DV_C509"></A>&#147;<A NAME="_DV_M295"></A>Proposed Transferee<A NAME="_DV_C511"></A>&#148;<A NAME="_DV_M296"></A>); (iii) the Keyes Plant Assets to be transferred to each Proposed Transferee if the transaction is not a Change of Control; (iv) the bona fide cash price or other consideration offered in connection with a Change of Control (including the assumption of debt) or, if an asset sale, for 
which <A NAME="_DV_C513"></A>Owner<A NAME="_DV_M297"></A> proposes to transfer the Keyes Plant Assets (the <A NAME="_DV_C515"></A>&#147;<A NAME="_DV_M298"></A>Offered Price<A NAME="_DV_C517"></A>&#148;<A NAME="_DV_M299"></A>); and (v) the material terms and conditions of the proposed transfer (the <A NAME="_DV_C519"></A>&#147;<A NAME="_DV_M300"></A>Offer Terms<A NAME="_DV_C521"></A>&#148;<A NAME="_DV_M301"></A>) and (b) offer the sale of Owner (if the transaction constitutes a Change of Control of </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; font-size:12pt">Owner) or the Keyes Plant Assets if an asset sale, at the Offered Price <A NAME="_DV_M302"></A>and on the <A NAME="_DV_M303"></A>Offer Terms to AE<A NAME="_DV_C524"></A>.<A NAME="_DV_M304"></A> &nbsp;Owner shall provide to AE access to all of the due diligence information provided to the Proposed Transferee.</P>
<A NAME="_DV_M305"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt"><U>Exercise of Right of First Refusal</U>. &nbsp;At any time within <A NAME="_DV_C526"></A>thirty (30)<A NAME="_DV_M306"></A> days after receipt of the <A NAME="_DV_C528"></A>ROFR<A NAME="_DV_M307"></A> Notice, AE <A NAME="_DV_M308"></A>may, by giving written notice to <A NAME="_DV_C531"></A>Owner<A NAME="_DV_M309"></A>, elect to purchase all, but not less than all, of the Keyes Plant Assets proposed to be transferred to any one or more of the Proposed Transferees or acquire Owner, as applicable, at the purchase price and on the terms determined in accordance with subsection (c) below. &nbsp;AE shall also provide Owner with such information as reasonably requested by Owner to confirm that AE shall have the financial resources to consummate the transaction. &nbsp;Once an election is made by AE to acquire Owner or the Keyes Plant Assets (if such transaction is structured as a sale of assets), s
uch election shall be final, binding and irrevocable. &nbsp;</P>
<A NAME="_DV_M310"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(c)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt"><U>Purchase Price</U>. &nbsp;The purchase price (the <A NAME="_DV_C533"></A>&#147;<A NAME="_DV_M311"></A>Purchase Price<A NAME="_DV_C535"></A>&#148;<A NAME="_DV_M312"></A>) for the Owner or Keyes Plant Assets, as applicable, purchased by AE <A NAME="_DV_M313"></A>under this Section shall be the Offered Price<A NAME="_DV_M314"></A>, and the terms and conditions of the transferee shall be identical in all material respects to the <A NAME="_DV_M315"></A>Offer Terms<A NAME="_DV_M316"></A>. &nbsp;<A NAME="_DV_M318"></A>If the Offered Price <A NAME="_DV_M319"></A>includes consideration other than cash, the cash equivalent value of the non-cash consideration shall be determined by the Board of Directors of <A NAME="_DV_C541"></A>each of <A NAME="_DV_M320"></A>AE and <A NAME="_DV_C543"></A>Owner<A NAME="_DV_M321"></A> in good faith.</P>
<A NAME="_DV_M322"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(d)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt"><U>Payment</U>. &nbsp;Payment of the Purchase Price shall be made<A NAME="_DV_C545"></A> in cash (by wire transfer of immediately available funds)<A NAME="_DV_M324"></A> in accordance with the <A NAME="_DV_C547"></A>Offer<A NAME="_DV_M325"></A> Terms, within thirty (30) days after delivery of the written notice by AE as set forth in Section <A NAME="_DV_C549"></A>9.4<A NAME="_DV_M326"></A>(b).</P>
<A NAME="_DV_C551"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(e)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt"><U>Owner<A NAME="_DV_M327"></A>&#146;s Right to Transfer</U>. &nbsp;If the Change of Control is not consummated or the Keyes Plant Assets proposed in the <A NAME="_DV_C553"></A>ROFR<A NAME="_DV_M328"></A> Notice to be transferred, in each case to a given Proposed Transferee are not purchased by AE <A NAME="_DV_C554"></A>within such thirty day period <A NAME="_DV_M329"></A>after Owner&#146;s receipt of AE&#146;s election to purchase as<A NAME="_DV_C556"></A> otherwise<A NAME="_DV_M331"></A> provided in this Section, then <A NAME="_DV_C558"></A>AE shall be in breach of this Agreement and shall be liable for any and all Losses incurred by Owner<A NAME="_DV_M332"></A> as a result of the failure to consummate such transaction. &nbsp;In addition, Owner may consummate a Change of Control or otherwise sell or otherwise transfer such Keyes Plant Assets to <A NAME="_DV_C560"></A>a Third Party without c
omplying <A NAME="_DV_M333"></A>with the terms contained in this Section 9.4. &nbsp;If AE elects not to exercise its rights of first refusal with respect to acquiring Owner or the Keyes Plant Assets, or otherwise fails to provide notice to Owner within thirty (30) days as set forth in Section 9.4(b) above, then Owner may consummate a Change of Control or otherwise sell or otherwise transfer such Keyes Plant Assets to the Proposed Transferee at the Offered Price <A NAME="_DV_M334"></A>or at a higher price and on <A NAME="_DV_C562"></A>terms substantially similar to <A NAME="_DV_M335"></A>the<A NAME="_DV_M336"></A> Offer Terms, provided that such sale or other transfer is consummated within one hundred eighty (180) days after the date of the <A NAME="_DV_C564"></A>ROFR <A NAME="_DV_M337"></A>Notice. <A NAME="_DV_M338"></A>&nbsp;</P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; font-size:12pt">If the Change of Control is not consummated or the Keyes Plant Assets described in the <A NAME="_DV_C566"></A>ROFR<A NAME="_DV_M340"></A> Notice are not transferred to the Proposed Transferee within such period, a new <A NAME="_DV_C568"></A>ROFR<A NAME="_DV_M341"></A> Notice shall be given to AE, and AE shall again be offered the Right of First Refusal<A NAME="_DV_C569"></A> in accordance with this Section 9.4<A NAME="_DV_M342"></A> before any Change of Control or Keyes Plant Assets may be sold or otherwise transferred.</P>
<A NAME="_DV_M343"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(f)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt"><U>Termination of Right of First Refusal</U>. &nbsp;The Right of First Refusal shall terminate immediately upon (i) the <A NAME="_DV_C571"></A>expiration or earlier <A NAME="_DV_M345"></A>termination of the Lease<A NAME="_DV_C572"></A> or this Agreement<A NAME="_DV_M346"></A>, or (ii) a Change of Control of AE. </P>
<A NAME="_DV_M347"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(g)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt"><U>Assignment of Right of First Refusal</U>. &nbsp;The Right of First Refusal<A NAME="_DV_C574"></A> is personal to and for the benefit of AE and<A NAME="_DV_M349"></A> shall not be assignable by AE at any time, except to a wholly owned subsidiary of AE.</P>
<A NAME="_DV_M350"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(h)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt"><U>Reimbursement by <A NAME="_DV_C577"></A>Owner<A NAME="_DV_M351"></A></U>. &nbsp;In the event that AE does not exercise the rights of first refusal set forth in Sections <A NAME="_DV_C579"></A>9.4 above after receipt of notice under Section 9.4(a), and to the extent the Lease has not expired or has otherwise been terminated, Owner shall pay to AE<A NAME="_DV_M352"></A> an amount equal to: <A NAME="_DV_C581"></A>(i) 100% of the Capital Expenditures, plus (ii) the Startup Losses up to an aggregate amount not to exceed Two Million Dollars ($2,000,000)<A NAME="_DV_M356"></A>, if any, plus (iii) <A NAME="_DV_C582"></A>an amount equal to <A NAME="_DV_M357"></A>eight percent (8%) of the <A NAME="_DV_C583"></A>total <A NAME="_DV_M358"></A>amounts set forth in (i) and (ii) above <A NAME="_DV_C585"></A>multiplied by the actual number of years (or prorated for any partial years) that have elapsed sinc
e the Lease Commencement Date.<A NAME="_DV_C586"></A></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">9.5</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Financial Condition</U>. &nbsp;In the event Owner reasonably determines that the Project Company&#146;s financial condition, based on the financial reports provided to Owner pursuant to this Agreement, has materially declined relative to its condition as of the date hereof, Owner shall notify the Project Company of same and the respective Chief Financial Officers of each Party shall meet within ten (10) days of such notice to review such financial condition. </P>
<A NAME="_DV_M359"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:168px; text-indent:-96px; font-size:12pt">Section 10.</P>
<P style="line-height:normal; margin-top:0px; margin-bottom:12px; padding-left:168px; font-size:12pt">CONDITIONS TO LEASE COMMENCEMENT DATE.<I> &nbsp;</I>The Lease Commencement Date shall be subject to the satisfaction <A NAME="_DV_C588"></A>by AE or the Project Company <A NAME="_DV_M360"></A>or waiver by<FONT style="font-size:9pt"> <A NAME="_DV_C590"></A></FONT>Owner (in writing)<A NAME="_DV_M361"></A> of each of the following conditions<FONT style="font-size:9pt">:<A NAME="_DV_C591"></A></FONT></P>
<A NAME="_DV_C592"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">10.1</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Repair and Retrofit Activities</U>. &nbsp;The Repair and Retrofit Activities shall be Substantially Complete and all inspections by Owner and AE shall have been completed.</P>
<A NAME="_DV_M362"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">10.2</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Representations and Warranties of AE and the Project Company</U>. &nbsp;<A NAME="_DV_C594"></A>The<A NAME="_DV_M363"></A> representations and warranties of <A NAME="_DV_C596"></A>AE and the Project Company<A NAME="_DV_M364"></A> in this Agreement shall be true and correct in all material respects on and as of the Lease </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; font-size:12pt">Commencement Date as though such representations and warranties were made on and as of such time<A NAME="_DV_C597"></A>.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">10.3</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Representations and Warranties of Owner</U>. &nbsp;The representations and warranties of Owner in this Agreement shall be true and correct in all material respects on and as of the Lease Commencement Date as though such representations and warranties were made on and as of such time.</P>
<A NAME="_DV_C600"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">10.4</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Performance of Covenants</U>. &nbsp;AE and the Project Company shall have performed and complied in all material respects with all covenants, obligations and conditions of this Agreement required to be performed and complied with by it as of the Lease Commencement Date.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">10.5</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Performance of Covenants by Owner</U>. &nbsp;Owner shall have performed and complied in all material respects with all covenants, obligations and conditions of this Agreement required to be performed and complied with by it as of the Lease Commencement Date.</P>
<A NAME="_DV_M365"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:168px; text-indent:-96px; font-size:12pt">Section 11.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:168px; font-size:12pt">OPTION TO EXCHANGE CILION SHARES FOR SHARES OF AE COMMON STOCK. </P>
<A NAME="_DV_M368"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">11.1</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Option</U>. &nbsp;The <A NAME="_DV_C603"></A>Owner<A NAME="_DV_M369"></A> Stockholders shall have the right on or before June 30, 2011 to exchange not less than 50.1% of the aggregate number of outstanding <A NAME="_DV_C605"></A>Owner<A NAME="_DV_M370"></A> Shares into a number of shares of AE Common Stock (the &#147;Exchange Option&#148;) equal to a fraction, the numerator of which is the number of <A NAME="_DV_C607"></A>Owner<A NAME="_DV_M371"></A> Shares the <A NAME="_DV_C609"></A>Owner<A NAME="_DV_M372"></A> shareholders seek to exchange for shares of AE Common Stock and the denominator of which is the total number of <A NAME="_DV_C611"></A>Owner<A NAME="_DV_M373"></A> Shares held by all the <A NAME="_DV_C613"></A>Owner<A NAME="_DV_M374"></A> shareholders, multiplied by 35 million (the &#147;Exchange Shares&#148;). </P>
<A NAME="_DV_M375"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">11.2</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Exercise of Option</U>. &nbsp;At any time on or before June 30, 2011, the <A NAME="_DV_C615"></A>Owner<A NAME="_DV_M376"></A> Shareholders may exercise their Exchange Option by written notice to AE (the &#147;Exercise Notice&#148;). &nbsp;The Exercise Notice shall set forth the name of each <A NAME="_DV_C617"></A>Owner<A NAME="_DV_M377"></A> Shareholder who is exercising the Exchange Option, and the number of <A NAME="_DV_C619"></A>Owner<A NAME="_DV_M378"></A> Shares each <A NAME="_DV_C621"></A>Owner<A NAME="_DV_M379"></A> Shareholder is exchanging. &nbsp;Upon the receipt by AE of the Exercise Notice, AE will, subject to Section 9.3 below, exchange the <A NAME="_DV_C623"></A>Owner<A NAME="_DV_M380"></A> Shares for AE Common Stock in accordance with Section 9.1 above.</P>
<A NAME="_DV_C624"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">11.3</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt">Conditions. &nbsp;The obligations of AE to consummate the Exchange shall be subject to the satisfaction in AE&#146;s sole and absolute discretion or waiver on or prior to the Exchange Date of each of the following conditions:</P>
<A NAME="_DV_C626"></A><P style="margin-top:0px; margin-bottom:16px"><BR>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:6.067px; text-indent:138.067px; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:6.067px; text-indent:185.933px; font-size:12pt">Stock Exchange Agreement. &nbsp;The Cilion Shareholders shall have entered into a Stock Exchange Agreement with AE on such terms as are reasonably acceptable to AE.<A NAME="_DV_C627"></A></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:6.067px; text-indent:138.067px; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:6.067px; text-indent:185.933px; font-size:12pt">Owner&#146;s Performance. &nbsp;All of the covenants and obligations that Cilion is required to perform or comply with pursuant to this Agreement at or prior to the Conversion Date shall have been duly performed and complied with in all material respects;</P>
<A NAME="_DV_C628"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:6.067px; text-indent:138.067px; font-size:12pt">(c)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:6.067px; text-indent:185.933px; font-size:12pt">Material Adverse Change. &nbsp;Since the date of this Agreement, there shall not have been an event shall have occurred or circumstance exists except for those that could not, individually or in the aggregate, reasonably be expected to result in a material adverse change of Owner&#146;s business or assets or financial condition;</P>
<A NAME="_DV_C629"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:6.067px; text-indent:138.067px; font-size:12pt">(d)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:6.067px; text-indent:185.933px; font-size:12pt">Compliance Certificates. &nbsp;Cilion shall have delivered to AE at the Closing a certificate signed by a duly authorized officer of Cilion, dated the Closing Date, confirming the matters set forth in Sections 9.2(a), (b) and (c);</P>
<A NAME="_DV_C630"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:6.067px; text-indent:138.067px; font-size:12pt">(e)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:6.067px; text-indent:185.933px; font-size:12pt">Audited Financial Statements. &nbsp;Cilion shall have delivered to AE its audited consolidated financial statements for the year ended prior to the Exchange Date, and its unaudited consolidated financial statements for subsequent quarters, together with, in the case of the audited financial statements, a true and correct copy of the report on such audited information by Cilion&#146;s independent accountants for such time periods and all auditors&#146; reports to management and any management responses thereto.</P>
<A NAME="_DV_C631"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:6.067px; text-indent:138.067px; font-size:12pt">(f)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:6.067px; text-indent:185.933px; font-size:12pt">At the time of conversion, Cilion shall be the sole owner of the Keyes Plant and shall have retained the proceeds from any asset sales occurring after the date hereof, net of Third Party and bank debt repayment and ordinary operating costs.]</P>
<A NAME="_DV_C633"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:6.067px; text-indent:138.067px; font-size:12pt">(g)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:6.067px; text-indent:185.933px; font-size:12pt">Cilion shall have not incurred additional indebtedness subsequent to the Lease Commencement Date.</P>
<A NAME="_DV_C634"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:6.067px; text-indent:138.067px; font-size:12pt">(h)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:6.067px; text-indent:185.933px; font-size:12pt">Cilion shall have not paid out cash dividends to its shareholders subsequent to the Lease Commencement Date.</P>
<A NAME="_DV_M381"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">11.4</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Registration Rights</U>. &nbsp;If AE at any time proposes to register any of its securities under the Securities Act for sale to the public, whether for its own account or for the account of other security holders or both (except with respect to registration statements on Forms S-4 or S-8 and any similar successor forms) (a </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; font-size:12pt">&#147;Piggyback Registration&#148;), each such time it will give prompt written notice to such effect to all <A NAME="_DV_C636"></A>Owner<A NAME="_DV_M382"></A> shareholders at least thirty (30) days prior to such filing. &nbsp;Upon the written request of any such <A NAME="_DV_C638"></A>Owner<A NAME="_DV_M383"></A> shareholder, received by AE within twenty (20) days after the giving of any such notice by AE, to register any of its Conversion Shares, AE will cause all Conversion Shares as to which registration shall have been so requested to be included in the securities to be covered by the Registration Statement proposed to be filed by AE. &nbsp;Notwithstanding the foregoing provisions, AE may withdraw any registration statement referred to in this Section without thereby incurring any liability to the <A NAME="_DV_C640"></A>Owner<A NAME="_DV_M384"></A> shareholders. &nbsp;The right of the <A NAME="_DV_C642"
></A>Owner<A NAME="_DV_M385"></A> shareholders to have their Conversion Shares registered in a Piggyback registration shall terminate at the earlier of (i) one (1) year following the Conversion Date, or (ii) as to any <A NAME="_DV_C644"></A>Owner<A NAME="_DV_M386"></A> Shareholder, such earlier time at which all Conversion Shares held by such <A NAME="_DV_C646"></A>Owner<A NAME="_DV_M387"></A> Shareholder (together with any Affiliate of the <A NAME="_DV_C648"></A>Owner<A NAME="_DV_M388"></A> Shareholder with whom such <A NAME="_DV_C650"></A>Owner<A NAME="_DV_M389"></A> Shareholder must aggregate its sales under Rule 144) can be sold in any three-month period without registration in compliance with Rule 144 of the Securities Act.</P>
<A NAME="_DV_M390"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">11.5</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Board of Directors Seats After Conversion</U>. After conversion into AE shares as provided herein, Eric A. McAfee and Laird Cagan shall enter into a voting agreement to appoint two representatives of the <A NAME="_DV_C652"></A>Owner<A NAME="_DV_M391"></A> Shareholders to the AE board of directors effective upon the Exchange Date. &nbsp;</P>
<A NAME="_DV_M392"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:168px; text-indent:-96px; font-size:12pt">Section 12.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:168px; font-size:12pt">TERM AND TERMINATION.</P>
<A NAME="_DV_C654"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">12.1</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Term</U>. &nbsp;The Term of this Agreement shall commence on the date hereof and shall terminate (unless earlier terminated in accordance with this Section 12) upon the expiration or earlier termination of the Lease in accordance with the terms thereof<A NAME="_DV_M393"></A>. &nbsp;Except as otherwise provided herein or as may be agreed by the Parties hereto, no termination of this Agreement shall release any <A NAME="_DV_C656"></A>Party<A NAME="_DV_M394"></A> from any liability to any other Party which at the time of such termination has already accrued, nor affect in any way the survival of any right, duty or obligation of any Party which is expressly stated elsewhere in this Agreement to survive the termination hereof. &nbsp;<A NAME="_DV_C657"></A></P>
<A NAME="_DV_C658"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">12.2</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Termination for Failure to Obtain Financing</U>. &nbsp;Owner may terminate this Agreement immediately by providing written notice to AE in the event that the Project Company has not received the AE Funds for the Repair and Retrofit Activities by January 31, 2010, or if AE has not provided Owner with evidence of the AE Funds being contributed to Project Company on or prior to January 31, 2010.<A NAME="_DV_C659"></A></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">12.3</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Substantial Completion</U>. &nbsp;Owner may terminate this Agreement immediately by providing written notice to AE in the event that Substantial Completion has not occurred on or prior to July 31, 2010.</P>
<P style="margin-top:0px; margin-bottom:16px"><BR>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">12.4</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Change of ControlChange of Control</U>. &nbsp;Owner may terminate this Agreement immediately by providing written notice to AE in the event that, prior to the AE Funds having been received by the Project Company, there is a Change of Control of Owner or Owner enters into an agreement to sell the Keyes Plant.</P>
<A NAME="_DV_C662"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">12.5</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Event of Default</U>. &nbsp;Either Party may terminate this Agreement upon an Event of Default caused by the other Party as provided for in Section 13 below.<A NAME="_DV_C663"></A></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">12.6</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Owner Financing Consent</U>. &nbsp;Either Party may terminate this Agreement immediately by providing written notice to the other Party in the event that the lenders comprising the Owner Financing have not consented to the transactions contemplated by this Agreement and the Lease prior to the Lease Commencement Date. </P>
<A NAME="_DV_C664"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">12.7</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Effects of Termination</U>. &nbsp;Upon any such expiration or termination of this Agreement or of the Lease, (i) all rights in the Keyes Plant and the Project shall revert to Owner; (ii) Project Company shall transfer or caused to be transferred (to the extent transferable) any and all Permits relating to the Keyes Plant to Owner; (iii) AE and Project Company shall cease any activity or operations with respect to the Keyes Plant; (iv) AE shall return the Praj Funds to Owner (less any amounts expended in accordance with the terms of this Agreement); and (v) all licenses hereunder shall terminate, including the Praj License<A NAME="_DV_C665"></A>. &nbsp;In addition to the foregoing, in the event Owner terminates this Agreement pursuant to Section 12.3, Owner shall reimburse AE for all out-of-pocket expenses incurred by or on behalf of AE in connection with the Repair and Retrofit Activit
ies (up to a maximum amount of one million six hundred thousand dollars), plus interest on the expenses incurred at the rate of eight percent per year.</P>
<A NAME="_DV_C666"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:168px; text-indent:-96px; font-size:12pt">Section 13.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:168px; font-size:12pt">EVENTS OF DEFAULT. &nbsp;The occurrence and continuation of the following event at any time during the term of this Agreement will constitute an event of default of a Party (an &#147;Event of Default&#148;):</P>
<A NAME="_DV_C668"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">13.1</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt">if<A NAME="_DV_M395"></A> the Party fails in any material respect to perform or comply with any obligation in this Agreement, <A NAME="_DV_M396"></A>and such failure is not remedied within thirty (30) days after the date the other Party has given written notice to the defaulting Party of such failure<A NAME="_DV_C670"></A>;<A NAME="_DV_C671"></A></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">13.2</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt">the occurrence of an &#147;Event of Default&#148; triggered by a Party under the Lease.</P>
<A NAME="_DV_C672"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">13.3</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt">the making of a general assignment by a Party for the benefit of its creditors, the filing of a voluntary petition by such Party, or the filing of an </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; font-size:12pt">involuntary petition by any of such Party&#146;s creditors seeking the rehabilitation, liquidation, or reorganization of such Party under any law relating to bankruptcy, insolvency, or other relief of debtors and, in the case of an involuntary action, the failure to remove or discharge the petition within sixty (60) days of the filing; or<A NAME="_DV_C673"></A></P>
<A NAME="_DV_C674"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">13.4</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt">any representation or warranty made by a Party in this Agreement or in the Lease shall prove to have been false or incorrect in any material respect when such representation or warranty was made or given, and remains a misrepresentation or breach of warranty which is materially adverse to the other Parties at the time discovered.<A NAME="_DV_C675"></A></P>
<A NAME="_DV_C676"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:168px; text-indent:-96px; font-size:12pt">Section 14.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:168px; font-size:12pt">INDEMNIFICATION &nbsp;<A NAME="_DV_C677"></A></P>
<A NAME="_DV_C678"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">14.1</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>By AE and the Project Company</U>. &nbsp;Except for Losses arising out of or resulting from Owner Indemnitees&#146; gross negligence or willful misconduct, AE and the Project Company shall, jointly and severally, defend, indemnify, and hold harmless Owner, and its employees, agents, partners, Affiliates, shareholders, directors, officers, and assigns (each an &#147;Owner Indemnitee&#148;), from and against the following: <A NAME="_DV_C679"></A></P>
<A NAME="_DV_C680"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">Losses arising from third-party claims for property damage or personal injury (including emotional distress) that directly or indirectly arise out of or result from any negligent, willful, reckless, or otherwise tortious act or omission (including strict liability) during the performance of the Repair and Retrofit Activities or operation of the Keyes Plant, by AE, the Project Company, any subcontractor, or any of their respective Affiliates;<A NAME="_DV_C681"></A></P>
<A NAME="_DV_C682"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">Losses that directly arise out of or result from (i) all claims for payment, whether or not reduced to a lien or mechanics lien, filed by the Project Company, AE or any of its Affiliates or subcontractors, or other persons performing any portion of the Repair and Retrofit Activities; and (ii) employers&#146; liability or workers&#146; compensation claims filed by any employees or agents of AE, the Project Company or any of its subcontractors or Affiliates; &nbsp;<A NAME="_DV_C683"></A></P>
<A NAME="_DV_C684"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(c)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">Losses as a result of any claims by any Governmental Authority that directly arise out of or result from the failure of AE or Project Company or any of its Affiliates or subcontractors to comply with the terms and conditions of any Legal Requirements;<A NAME="_DV_C685"></A></P>
<A NAME="_DV_C686"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(d)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">Losses in connection with the operation of the Keyes Plant by AE or Project Company, or any of their Affiliates or agents, including without limitation, any Losses arising in connection with any alleged infringement of any </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; font-size:12pt">intellectual property rights of Third Parties in connection with the operation of the Keyes Plant by AE, the Project Company, or any of their agents or Affiliates;<A NAME="_DV_C687"></A></P>
<A NAME="_DV_C688"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(e)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">Losses arising in connection with the breach by AE or Project Company of any of their representations, warranties, covenants or agreements contained herein;<A NAME="_DV_C689"></A></P>
<A NAME="_DV_C690"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(f)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">Losses as a result of any claims by any Governmental Authority that arise out of or result from the failure of Project Company or AE to pay, as and when due, all taxes, duties, levies, assessments, tariffs, imposts, fees or charges of any kind (together with any and all interest, penalties, additions to tax and additional amounts imposed with respect thereto) imposed by any Governmental Authority for which AE or Project Company is obligated to pay pursuant to the terms of this Agreement; and<A NAME="_DV_C691"></A></P>
<A NAME="_DV_C692"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(g)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">all Losses, including claims for property damage, remedial action or personal injury (including emotional distress), whether or not involving damage to the Keyes Plant, that directly or indirectly arise out of or result from (i) the use, storage, transportation, manufacture, processing or disposal whether or not in compliance with Legal Requirements, of Hazardous Materials at the Keyes Plant occurring after the Possession Date; and (ii) the presence or existence of or contamination of the Keyes Plant, caused by the spill or release of Hazardous Materials brought onto, or handled at, the Keyes Plant (excluding Owner), occurring after the Possession Date. &nbsp;<A NAME="_DV_C693"></A></P>
<A NAME="_DV_C694"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">14.2</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>By Owner</U>. &nbsp;Except for Losses arising out of or resulting from AE Indemnitees&#146; gross negligence or willful misconduct, Owner shall defend, indemnify, and hold harmless AE, AE Sub and the Project Company and their respective employees, agents, partners, Affiliates, shareholders, directors, officers, and assigns (each an &#147;AE Indemnitee&#148;) from and against the following:<A NAME="_DV_C695"></A></P>
<A NAME="_DV_C696"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">Losses arising from third-party claims for property damage or personal injury (including emotional distress) that directly or indirectly arise out of or result from any negligent, reckless, or otherwise tortious act or omission (including strict liability) by Owner prior to the Possession Date;<A NAME="_DV_C697"></A></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">Losses that directly arise out of or result from (i) all claims for payment, whether or not reduced to a lien or mechanics lien, filed by the Owner, or any of its Affiliates or subcontractors, or other persons prior to the Possession Date; and (ii) employers&#146; liability or workers&#146; compensation claims filed by any employees of Owner or any of its subcontractors or Affiliates; &nbsp;</P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(c)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">Losses arising in connection with the breach by Owner of any of its representations, warranties, covenants or agreements contained herein;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(d)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">Losses as a result of any claims by any Governmental Authority that arise out of or result from the failure of Owner to pay, as and when due, all taxes, duties, levies, assessments, tariffs, imposts, fees or charges of any kind (together with any and all interest, penalties, additions to tax and additional amounts imposed with respect thereto) imposed by any Governmental Authority for which Owner is obligated to pay and for which AE is not required to reimburse Owner; and<A NAME="_DV_C699"></A></P>
<A NAME="_DV_C702"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(e)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">all Losses, including claims for property damage, remedial action or personal injury (including emotional distress), whether or not involving damage to the Keyes Plant, that directly or indirectly arise out of or result from (i) the use, storage, transportation, manufacture, processing or disposal by or for the benefit of the Owner whether or not in compliance with Legal Requirements, of Hazardous Materials at the Keyes Plant occurring prior to the Possession Date; and (ii) the presence or existence of or contamination of the Keyes Plant, caused by the spill or release of Hazardous Materials brought onto, or handled at, the Keyes Plant, occurring prior to the Possession Date. &nbsp;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">14.3</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Claims for Indemnification</U>.<A NAME="_DV_C703"></A></P>
<A NAME="_DV_C704"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(a)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">A person entitled to indemnification under this Section 14 (an &#147;Indemnified Party&#148;) shall give prompt written notification to the person from whom indemnification is sought (the &#147;Indemnifying Party&#148;) of the commencement of any action, suit or proceeding relating to a Third Party claim for which indemnification may be sought or, if earlier, upon the assertion of any such claim by a Third Party (it being understood and agreed, however, that the failure by an Indemnified Party to give notice of a Third-Party claim as provided in this Section 14 shall not relieve the Indemnifying Party of its indemnification obligation under this Agreement except and only to the extent that such Indemnifying Party is actually prejudiced as a result of such failure to give notice).<A NAME="_DV_C705"></A></P>
<A NAME="_DV_C706"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(b)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">Within thirty (30) days after delivery of such notification, the Indemnifying Party may, upon written notice thereof to the Indemnified Party, assume control of the defense of such action, suit, proceeding or claim with counsel reasonably satisfactory to the Indemnified Party. &nbsp;If the Indemnifying Party does not assume control of such defense, the Indemnified Party shall control such defense. &nbsp;The Party not controlling such defense may participate therein at its own expense; provided that if the Indemnifying Party assumes control of such </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; font-size:12pt">defense and the Indemnified Party reasonably concludes, based on advice from counsel, that the Indemnifying Party and the Indemnified Party have conflicting interests with respect to such action, suit, proceeding or claim, the Indemnifying Party shall be responsible for the reasonable fees and expenses of counsel to the Indemnified Party solely in connection therewith; provided further, however, that in no event shall the Indemnifying Party be responsible for the fees and expenses of more than one counsel in any one jurisdiction for all Indemnified Parties.<A NAME="_DV_C707"></A></P>
<A NAME="_DV_C708"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(c)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">The Party controlling such defense shall keep the other Party advised of the status of such action, suit, proceeding or claim and the defense thereof and shall consider recommendations made by the other Party with respect thereto.<A NAME="_DV_C709"></A></P>
<A NAME="_DV_C710"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:144px; text-indent:48px; font-size:12pt">(d)</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:144px; text-indent:96px; font-size:12pt">The Indemnified Party shall not agree to any settlement of such action, suit, proceeding or claim without the prior written consent of the Indemnifying Party, which shall not be unreasonably withheld. &nbsp;The Indemnifying Party shall not agree to any settlement of such action, suit, proceeding or claim or consent to any judgment in respect thereof that does not include a complete and unconditional release of the Indemnified Party from all liability with respect thereto or that imposes any liability or obligation on the Indemnified Party without the prior written consent of the Indemnified Party.<A NAME="_DV_C711"></A></P>
<A NAME="_DV_C712"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">14.4</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Survival of Indemnity Obligations</U>. &nbsp;Without limiting or in any way agreeing to waive either Party&#146;s right to make a claim at common law as permitted pursuant to applicable law for contribution or indemnification with respect to third-party claims, and notwithstanding any other provision in this Agreement to the contrary, the indemnities set forth in this Article 14 shall survive for a period expiring five (5) years following the termination of this Agreement. &nbsp;All claim notices must be delivered, if at all, to the applicable Party prior to the expiration of such five (5) year period. &nbsp;If any claim notice is made within such five (5) year period, then the indemnifying period with respect to all claims identified in such claim notice (and the indemnity obligation of the Parties hereunder with respect to such claim) shall extend through the final, non-appealable re
solution of such claims.<A NAME="_DV_M397"></A></P>
<A NAME="_DV_M398"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:168px; text-indent:-96px; font-size:12pt">Section 15.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:168px; font-size:12pt">MISCELLANEOUS.</P>
<A NAME="_DV_M399"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">15.1</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Survival of Representations and Warranties</U>. &nbsp;The representations and warranties and covenants of <A NAME="_DV_C714"></A>Owner<A NAME="_DV_M400"></A> and AE contained in this Agreement shall survive the <A NAME="_DV_C716"></A>execution and delivery of this Agreement and continue for a period of one year. &nbsp;</P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">15.2</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Fees and Expenses</U>. &nbsp;All costs and expenses incurred by AE in connection with this Agreement and the consummation of the Transactions shall be paid by AE, <A NAME="_DV_M402"></A>all costs and expenses incurred by <A NAME="_DV_C719"></A>the Project Company<A NAME="_DV_M403"></A> in connection with this Agreement and the consummation of the Transactions shall be paid by <A NAME="_DV_C721"></A>the Project Company, and all costs and expenses incurred by Owner in connection with this Agreement and the consummation of the Transactions shall be paid by Owner<A NAME="_DV_M404"></A>.</P>
<A NAME="_DV_M405"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">15.3</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Notices</U>. &nbsp;All notices and other communications hereunder shall be in writing and shall be deemed given in accordance with the terms and the addresses set forth in the Lease.</P>
<A NAME="_DV_M408"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">15.4</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Counterparts</U>. &nbsp;This Agreement may be executed in one or more counterparts, each of which shall be considered one and the same Agreement and shall become effective when two or more counterparts have been signed by each of the <A NAME="_DV_C728"></A>Parties<A NAME="_DV_M409"></A> and delivered to the other <A NAME="_DV_C730"></A>Parties<A NAME="_DV_M410"></A>.</P>
<A NAME="_DV_M411"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">15.5</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Entire Agreement; No Third Party Beneficiaries</U>. &nbsp;This Agreement (including the documents and the instruments referred to herein)<A NAME="_DV_C731"></A> and the Lease<A NAME="_DV_M412"></A>: &nbsp;(a) constitute the entire<A NAME="_DV_C733"></A> agreement between the Parties<A NAME="_DV_M413"></A> and supersede all prior<A NAME="_DV_C735"></A> agreements<A NAME="_DV_M414"></A> and understandings, both written and oral, among the <A NAME="_DV_C737"></A>Parties<A NAME="_DV_M415"></A> with respect to the subject matter hereof, and (b) are not intended to confer upon any Person other than the <A NAME="_DV_C739"></A>Parties<A NAME="_DV_M416"></A> hereto and thereto any rights or remedies hereunder.</P>
<A NAME="_DV_M417"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">15.6</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Severability</U>. &nbsp;Any term or provision of this Agreement that is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction. &nbsp;If the final judgment of a court of competent jurisdiction or other authority declares that any term or provision hereof is invalid, void or unenforceable, the <A NAME="_DV_C741"></A>Parties<A NAME="_DV_M418"></A> agree that the court making such determination shall have the power to reduce the scope, duration, area or applicability of the term or provision, to delete specific words or phrases, or to replace any invalid, void or unenforceable term or provision with 
a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision.</P>
<A NAME="_DV_M419"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">15.7</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Assignment</U>. &nbsp;Neither this Agreement not any of the rights, interests or obligations hereunder shall be assigned by any of the <A NAME="_DV_C743"></A>Parties<A NAME="_DV_M420"></A> hereto (whether by operation of law or otherwise) without the prior written content of the other <A NAME="_DV_C745"></A>Parties<A NAME="_DV_M421"></A>. &nbsp;Subject to the preceding sentence, this Agreement shall be binding upon, inure to the benefit of and be enforceable by the <A NAME="_DV_C747"></A>Parties<A NAME="_DV_M422"></A> and their respective successors and assigns, </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; font-size:12pt">including any purchaser or other acquirer of <A NAME="_DV_C749"></A>Owner<A NAME="_DV_M423"></A> shares from an existing holder as of the date of this Agreement.<A NAME="_DV_C750"></A></P>
<A NAME="_DV_C751"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">15.8</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Time of Essence</U>. &nbsp;Time is of the essence in this Agreement.<A NAME="_DV_C752"></A></P>
<A NAME="_DV_C753"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">15.9</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Attorney&#146;s Fees</U>. &nbsp;In any action that a Party brings to enforce its rights under this Lease, the prevailing Party shall be entitled to all of its costs plus reasonable attorney fees to be fixed by the court. Those costs and attorney fees will be considered a part of the judgment in that action.<A NAME="_DV_C754"></A></P>
<A NAME="_DV_C755"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">15.10</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Governing Law</U>. &nbsp;This Agreement shall be governed by and construed in accordance with the laws of the State of California.<A NAME="_DV_C756"></A></P>
<A NAME="_DV_C757"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">15.11</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>No Agency, Partnership or Joint Venture</U>. &nbsp;Nothing contained in this Agreement will be deemed or construed by the Parties, or by any Third Party, as creating the relationship of principal and agent, partnership, or joint venture by the AE and Owner or the Project Company and Owner, as the case may be.<A NAME="_DV_C758"></A></P>
<A NAME="_DV_C759"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">15.12</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>No Waiver</U>. &nbsp;No waiver of any default or breach under this Agreement will be implied from any omission to take action on account of this Agreement, regardless of any custom and practice or course of dealing. &nbsp;No waiver will affect any default other than the default specified in the waiver, and then the waiver will be operative only for the time and to the extent stated in this Agreement. &nbsp;Waivers of any covenant will not be construed as a waiver of any subsequent breach of the same covenant. &nbsp;No waiver by either party of any provision under this Agreement will be effective unless in writing and signed by that Party. <A NAME="_DV_C760"></A></P>
<A NAME="_DV_C761"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">15.13</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Brokers</U>. &nbsp;Each Party represents and warrants to the other Parties that it has had no dealings with any person, firm, broker or finder in connection with the negotiation of this Agreement or the consummation of the transactions contemplated hereby, and that no broker or other person, firm or entity is entitled to any commission or finder&#146;s fee in connection with said transactions. &nbsp;Each Party shall indemnify, protect, defend and hold the other party harmless from and against any claims which may be asserted by any such unnamed broker, finder or other similar party by reason of any dealings or actions of the indemnifying party. &nbsp;This indemnification shall survive the expiration or earlier termination of this Agreement.<A NAME="_DV_C762"></A></P>
<A NAME="_DV_C763"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:38.4px; text-indent:57.6px; font-family:(normal text); font-size:12pt">15.14</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; padding-left:38.4px; text-indent:105.6px; font-size:12pt"><U>Further Assurances</U>. &nbsp;The Parties shall promptly sign all further commercially reasonable documents necessary to accomplish the intent of this Agreement.</P>
<A NAME="_DV_M424"></A><P style="margin-top:0px; margin-bottom:16px" align=center><BR>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:126px; font-size:12pt" align=center>IN WITNESS WHEREOF, the <A NAME="_DV_C766"></A>Parties<A NAME="_DV_M425"></A> hereto have caused this Project Agreement to be duly executed as of the date first written above.</P>
<A NAME="_DV_M426"></A><P style="line-height:14pt; margin:0px; padding-left:240px; font-size:12pt">AE BIOFUELS, INC.</P>
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<A NAME="_DV_M427"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:240px; font-size:12pt">By:</P>
<P style="line-height:14pt; margin:0px; padding-left:240px; text-indent:48px; font-size:12pt">_____<U>/S/ Eric A. McAfee</U>_____________</P>
<A NAME="_DV_M428"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:240px; font-size:12pt">Name:</P>
<P style="line-height:14pt; margin:0px; padding-left:240px; text-indent:48px; font-size:12pt">Eric A. McAfee</P>
<A NAME="_DV_M429"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:240px; font-size:12pt">Title:</P>
<P style="line-height:14pt; margin:0px; padding-left:240px; text-indent:48px; font-size:12pt">Chairman and Chief Executive Officer</P>
<P style="margin:0px"><BR></P>
<A NAME="_DV_M430"></A><P style="line-height:14pt; margin:0px; padding-left:240px; font-size:12pt">CILION, INC.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<A NAME="_DV_M431"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:240px; font-size:12pt">By:</P>
<P style="line-height:14pt; margin:0px; padding-left:240px; text-indent:48px; font-size:12pt">__<U>/S/ Kevin H. Kruse</U>__________</P>
<A NAME="_DV_M432"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:240px; font-size:12pt">Name:</P>
<P style="line-height:14pt; margin:0px; padding-left:240px; text-indent:48px; font-size:12pt">Kevin H. Kruse</P>
<A NAME="_DV_M433"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:240px; font-size:12pt">Title:</P>
<P style="line-height:14pt; margin:0px; padding-left:240px; text-indent:48px; font-size:12pt">Chairman and Chief Executive Officer</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<A NAME="_DV_C767"></A><P style="line-height:14pt; margin:0px; padding-left:240px; font-size:12pt">AE ADVANCED FUELS KEYES, INC.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<A NAME="_DV_C768"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:240px; font-size:12pt">By:</P>
<P style="line-height:14pt; margin:0px; padding-left:240px; text-indent:48px; font-size:12pt">___<U>_/S/ Eric A. McAfee</U>_____</P>
<A NAME="_DV_C769"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:240px; font-size:12pt">Name:</P>
<P style="line-height:14pt; margin:0px; padding-left:240px; text-indent:48px; font-size:12pt">Eric A. McAfee</P>
<A NAME="_DV_C770"></A><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:240px; font-size:12pt">Title:</P>
<P style="line-height:14pt; margin:0px; padding-left:240px; text-indent:48px; font-size:12pt">Chairman and Chief Executive Officer</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin:0px; padding-left:240px; font-size:12pt">AE ADVANCED FUELS, INC.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:240px; font-size:12pt">By:</P>
<P style="line-height:14pt; margin:0px; padding-left:240px; text-indent:48px; font-size:12pt">___<U>/S/ Eric A. McAfee</U>_________</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:240px; font-size:12pt">Name:</P>
<P style="line-height:14pt; margin:0px; padding-left:240px; text-indent:48px; font-size:12pt">Eric A. McAfee</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-left:240px; font-size:12pt">Title:</P>
<P style="line-height:14pt; margin:0px; padding-left:240px; text-indent:48px; font-size:12pt">Chairman and Chief Executive Officer</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:16px" align=center><BR></P>
<P style="margin-top:0px; margin-bottom:16px" align=center><BR>
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<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>aebf_ex102.htm
<DESCRIPTION>LEASE AGREEMENT
<TEXT>
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<TITLE>Lease Agreement</TITLE>
<META NAME="author" CONTENT="Alisande M. Rozynko">
<META NAME="date" CONTENT="11/24/2009">
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<P style="line-height:14pt; margin:0px; font-size:12pt" align=right><B>Exhibit 10.2</B></P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center><B>LEASE AGREEMENT</B></P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center><B>FOR</B></P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center><B>KEYES, CALIFORNIA</B></P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center><B>ETHANOL PRODUCTION FACILITY</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt">This industrial lease (&#147;<U>Lease</U>&#148;) is entered into as of this 1st day of December, 2009, by and between Cilion, Inc., a Delaware corporation (hereinafter &#147;<U>Landlord</U>&#148;), AE Advanced Fuels Keyes, Inc., a Delaware corporation (hereinafter &#147;<U>Tenant</U>&#148;) and AE Advanced Fuels, Inc., a Delaware corporation (&#147;<U>Parent Sub</U>&#148;), each of which are wholly-owned subsidiaries of AE Biofuels, Inc., a Nevada corporation (&#147;<U>Parent</U>&#148;). </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>RECITALS</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">A.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">Landlord, Tenant and Parent have entered into that certain Project Agreement, dated of even date herewith (the &#147;<U>Project Agreement</U>&#148;), of which this Lease is a part. &nbsp;It is the intention of the parties that unless the Project Agreement is in full force and effect, this Lease shall have no validity separate and apart from the Project Agreement. &nbsp;Capitalized terms used but not otherwise defined in this Lease have the meanings assigned to such terms in the Project Agreement.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">B.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">Subject to the terms and conditions set forth herein and in the Project Agreement, Landlord desires to lease to Tenant and Tenant desires to Lease from Landlord that certain real property and improvements thereon known as the Keyes Plant and located at 4209 Jessup Road, Keyes, California (the &#147;<U>Leased Premises</U>&#148;), as more particularly described on Exhibit &#147;A&#148; and Exhibit &#147;B&#148; attached hereto and incorporated herein. &nbsp;The Leased Premises consist of an ethanol production facility with a nameplate annual production capacity of 55 million gallons as further described on Exhibit &#147;B&#148; and the real property identified in Exhibit &#147;A.&#148;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">C.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">In accordance with the Project Agreement, Parent (on behalf of Tenant) has agreed to complete certain Repair and Retrofit Activities with respect to the Keyes Plant.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">NOW, THEREFORE, in consideration of the mutual covenants set forth herein and other good and valuable consideration, the receipt of which is hereby acknowledged by each party, the parties hereby agree as follows:</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>DEMISE; TERM</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 1.01 Demise of Leased Premises; Term</U>. &nbsp;Landlord hereby leases and demises to Tenant, and Tenant hereby takes and hires from Landlord, upon and subject to the terms, covenants, provisions and conditions of this Lease, the Leased Premises. &nbsp;The term of this Lease is for a period of thirty-six (36) months, commencing on the Lease Commencement Date and ending on the date (the &#147;<U>Expiration Date</U>&#148;) which is thirty-six (36) months from the Lease Commencement Date, unless terminated sooner as provided in this Lease (the &#147;<U>Term</U>&#148;). &nbsp;Within ten (10) business days of when the Lease Commencement Date is determined, Landlord and Tenant shall confirm the Lease </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always">Commencement Date and the expiration date of the Term in writing. &nbsp;This Lease shall be effective upon execution and delivery of this Lease by both parties hereto and Tenant hereby agrees that execution and delivery of this Lease by Tenant shall, without further act, irrevocably constitute acceptance by Tenant of the Leased Premises for all purposes of this Lease. &nbsp;Except for events caused by Landlord&#146;s gross negligence or willful misconduct, all risk of loss of the Leased Premises shall pass to Tenant as of the Possession Date. &nbsp;Notwithstanding anything in this Lease or the Project Agreement to the contrary, Landlord shall have the right, in its sole and absolute discretion, upon written notice to Tenant, to terminate this Lease and Tenant&#146;s right to possession of the Leased Premises if the Repair and Retrofit Activities are not Substantially Complete on or prior to July 31, 2010
, such termination to be effective as of the date set forth in such notice. &nbsp;Upon such termination, this Lease shall be null and void and neither party shall have any liabilities or obligations hereunder except as otherwise expressly set forth herein.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 1.02 Early Termination</U>. &nbsp;Notwithstanding the foregoing, Landlord, in its sole and absolute discretion, shall have the right to terminate this Lease prior to the Expiration Date, which termination shall be effective on the last day of the twenty-fourth (24th) month after the Lease Commencement Date (the &#147;<U>Early Termination Effective Date</U>&#148;). &nbsp;Landlord shall give Tenant prior written notice of Landlord&#146;s intention to terminate this Lease pursuant to this Section 1.02 (the &#147;<U>Early Termination Notice</U>&#148;) no later than three (3) months<B><I> </I></B>prior to the Early Termination Effective Date; and provided further that if Landlord terminates this Lease pursuant to this Section 1.02 on the Early Termination Effective Date, Landlord shall within sixty (60) after the Early Termination Effective Date pay to either the Tenant or Parent, at Parent's written request, an amount (suc
h amount referred to herein as the &#147;Early Termination Fee&#148;) in cash equal to (i) one hundred percent (100%) of the approved, documented costs actually incurred by Parent or the Tenant for Capital Expenditures and Repair and Retrofit Activities as defined in the Project Agreement, plus (ii) actual documented Startup Losses in an amount not to exceed Two Million Dollars ($2,000,000), if any, plus (iii) an amount equal to eight percent (8%) of the total amounts set forth in (i) and (ii) above multiplied by the actual number of years (or partial years) in the Actual Term (as defined below) of this Lease. &nbsp;The &#147;Actual Term&#148; of this Lease shall be the Term as may be earlier terminated pursuant to this Section 1.02. &nbsp;Notwithstanding anything herein to the contrary, Landlord shall have the right to reduce the amount of the Early Termination Fee payable by Landlord by the dollar amount of damages directly resulting from an uncured default by Tenant.<B> </B>&nbsp;Upon such termination, th
is Lease shall be null and void and neither party shall have any liabilities or obligations hereunder except as otherwise expressly set forth herein.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 1.03 Effects of Termination</U>. &nbsp;Upon any expiration or termination of this Lease, (i) all rights in the Leased Premises and the Project shall revert to Landlord; (ii) Tenant shall transfer or caused to be transferred any and all Permits relating to the Leased Premises to Landlord; (iii) Tenant and Parent shall cease any and activity or operations with respect to the Leased Premises; and (iv) all licenses hereunder shall terminate, including the Praj License. </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always"><U>Section 1.04 Encumbrances</U>. &nbsp;This Lease and Tenant&#146;s leasehold estate hereunder are subordinate, under and subject to all liens, documents and matters of public record, to the extent valid and enforceable, and all applicable laws, ordinances and regulations.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 1.05 Tenant&#146;s Occupancy</U>. &nbsp;Tenant recognizes and agrees that, beginning on the Possession Date, Tenant shall be required to comply with all of Tenant&#146;s obligations in this Lease (including, without limitation, the provisions requiring Tenant to obtain insurance and to indemnify and exculpate Landlord) other than those provisions requiring Tenant to pay Base Rent (which obligation shall begin on the Lease Commencement Date), and Tenant&#146;s access to the Leased Premises shall be subject to the provisions hereof.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>RENT</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 2.01 Base Rent</U>. &nbsp;Beginning on the Lease Commencement Date, Tenant shall pay Landlord as base rent (&#147;<U>Base Rent</U>&#148;), for the possession and use of the Leased Premises, the sum of $250,000 per month, payable in advance for each monthly period and continuing until the expiration or earlier termination of this Lease. &nbsp;Rent (as defined below), and all other sums due and payable by Tenant to Landlord under this Lease, shall be paid in lawful money of the United States and shall be paid via wire transfer pursuant to Landlord&#146;s wiring instructions set forth on Exhibit &#147;C&#148; attached hereto and made a part &nbsp;hereto, or such other method as Landlord shall from time to time during the Term designate by written notice to Tenant. &nbsp;The Base Rent must be paid, without the need for notice, demand, offset, or deduction, by the first day of each calendar month. &nbsp;If the Term commence
s on a date other than the first day of a month, Tenant must pay the prorated rent for such prorated month on first day in which the Lease Commencement Date occurs. &nbsp;All sums other than Base Rent that Tenant is obligated to pay under this Lease will be deemed to be &#147;additional rent&#148; due, regardless of whether those sums are designated as additional rent, and shall be paid by Tenant without deduction, offset or abatement. &nbsp;Landlord shall have the same rights and remedies for non-payment of additional rent as Landlord has for non-payment of Base Rent. &nbsp;The term &#147;<U>Rent</U>&#148; means the Base Rent and all additional rent payable under this Lease. &nbsp;The covenant to pay Rent shall be independent of all other covenants in this Lease.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 2.02 Security Deposit</U>. A Security Deposit shall not be required. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 2.03 Rent Increases</U>. During the Term of this Lease, there shall be no increases in the Base Rent as set forth above.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 2.04 Net Lease</U>. &nbsp;It is intended that the provisions of this Lease shall require Tenant to pay all costs and expenses attributable to the Leased Premises during the Term as if Tenant owned the Leased Premises during the Term, including, without limitation, all real estate taxes, special and general assessments, insurance premiums, and maintenance and repair costs and expenses, all as more particularly set forth herein. &nbsp;It is intended that (a) Landlord shall incur no cost or expense with respect to the Leased Premises during the Term, except as otherwise expressly provided herein, and (b) the Base Rent shall be an absolute net return to Landlord throughout the Term of this Lease, </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always">without offset or deduction and free of all expenses, charges, diminution and other deductions whatsoever.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>TAXES</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 3.01 Taxes</U>. &nbsp;Landlord shall pay all property taxes, general and special assessments, excises, levies or other governmental charges (each, an &#147;<U>Imposition</U>&#148;) that shall or may during the period beginning on the Lease Commencement Date and continuing until the expiration or earlier termination of this Lease be imposed on, or arise in connection with the Leased Premises or any part thereof (including, without limitation, any property tax increases pertaining to any conveyance or transfer by Landlord of the Leased Premises that results in reassessment of the Leased Premises for property tax purposes) and that do not relate to Tenant&#146;s leasehold interest, facilities, equipment, machinery or other property placed on the Leased Premises by or for Tenant, or Tenant&#146;s improvements, entitlements or operations; <I>provided</I> that, so long as Landlord promptly provides Tenant with a copy of the 
applicable tax bill, Tenant shall promptly reimburse Landlord for any such Impositions paid by Landlord.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>USE OF THE PREMISES</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 4.01 Use and Restrictions on Use</U>. The Leased Premises shall be used for the sole purpose of production of ethanol and related byproducts from corn and other cellulosic feedstock, including ethanol-related product development and testing and other related purposes incidental thereto, and for no other use whatsoever. &nbsp;In no event shall Tenant perform any activities or use the Leased Premises except as expressly set forth in this Lease or the Project Agreement.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 4.02 Smoking</U>. Smoking is not allowed on the Leased Premises, whether in common areas or private offices, and the entire property is designated &#147;smoke free.&#148;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 4.03 Compliance with Law</U>. &nbsp;Except as otherwise set forth herein, Tenant agrees that at all times from and after the Possession Date, Tenant will, at its expense, promptly comply with the following: (a) all applicable federal, state, county, city and municipal or other statutes, charters, laws, rules, orders, regulations and ordinances affecting the Leased Premises, the occupancy, use or repair thereof ; (b) all rules, orders, and regulations of all public officers including the police, health and fire departments and with the National Board of Fire Underwriters or other similar organizations for the prevention of fire or the corrections of hazardous conditions; and (c) the requirements of all insurance companies having liability, fire and other insurance coverages in force and effect with respect to the Leased Premises, whether or not such law, ordinance, order, rule, regulation or requirement necessitates str
uctural changes or improvements or interferes with the use and enjoyment of the Leased Premises. &nbsp;Tenant shall give prompt notice to Landlord of any notice it receives of the violation of any of the foregoing. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 4.04 Permits</U>. &nbsp;At all times from and after the Possession Date, Tenant, at Tenant&#146;s sole cost and expense, shall procure and maintain all Permits, licenses and authorizations required for the Leased Premises and each part thereof, any use of the </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always">Leased Premises then being made, and for the lawful and proper operation and maintenance thereof.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>REPAIR AND RETROFIT ACTIVITIES</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 5.01 Repair and Retrofit</U>. &nbsp;The Parent and the Tenant have undertaken, or will undertake, the Repair and Retrofit Activities in accordance with the terms of the Project Agreement and previously approved in writing by Landlord, and Tenant covenants and agrees that all Repair and Retrofit Activities shall be completed in accordance with the terms and conditions of the Project Agreement. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>UTILITIES</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 6.01 Utilities</U>. Landlord is providing no utilities whatsoever at Landlord&#146;s expense, and Tenant shall be solely responsible for and shall promptly pay all utilities, trash removal, and similar expenses used or consumed at the Leased Premises, including in each instance, all sales and other taxes applicable to the sale or supply of such utilities, said responsibility commencing on the Possession Date and continuing through the expiration or earlier termination of this Lease. &nbsp;Tenant shall purchase all utility services, including fuel, water, telephone and communication, sewerage and electricity, directly from the utility or municipality providing such service, and Tenant shall pay for such services when payments therefor are due. &nbsp;Should Landlord elect or be required to supply or make available any utility used or consumed at the Leased Premises, Tenant agrees to purchase and pay for same, as addition
al rent, every month, in the amounts which Tenant would pay directly to the utility companies for direct service. &nbsp;If the local authority, municipality, utility or other body collects for the water and/or sewerage or sanitary service and/or consumption, as aforesaid, Tenant covenants and agrees to pay the amount allocable to the Leased Premises of the water and sewer rent charge (both minimum and otherwise) and any other tax, rent, levy, connection fee or meter or other charge which now or hereafter is assessed, imposed or may become a lien upon the Leased Premises, or the realty of which it is a part, pursuant to law, order or regulation made or issued in connection with the use, consumption, maintenance or supply of water, or the water or sewerage connection or system.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 6.02 No Landlord Liability for Interruption</U>. &nbsp;Except to the extent caused by the gross negligence or willful misconduct of Landlord, in no event shall Landlord be liable to Tenant in damages or otherwise for any interruption, curtailment or suspension of any of the foregoing utility services due to the need for repairs and replacements, action of public authority, strikes, acts of God or public enemy, or any other cause, whether similar or dissimilar to the aforesaid; nor shall any such interruption, curtailment or suspension (a) constitute a constructive eviction or interference or disturbance with Tenant&#146;s use, possession or enjoyment of the Leased Premises, (b) constitute grounds for abatement, reduction or rebate, in whole or in part, of Base Rent or additional rent or any other sum payable by Tenant under this Lease, or (c) release or relieve Tenant of or from any of Tenant&#146;s obligations under t
his Lease.</P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always" align=center><B>PARKING RIGHTS</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 7.01 Parking Rights</U>. Tenant has the exclusive use of parking spaces in the parking areas of the facility. &nbsp;Landlord shall not be responsible or liable for any damage to Tenant&#146;s vehicles as a result of fire, theft, vandalism and/or collision. &nbsp;It is understood and agreed that Landlord&#146;s sole obligation hereunder is to make available to Tenant said parking spaces, and it is hereby understood and agreed that Landlord shall not be responsible for &#147;monitoring&#148; or &#147;policing&#148; the parking area so as to ensure Tenant&#146;s use thereof.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>CLEANING AND JANITORIAL</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 8.01 Cleaning and Janitorial</U>. Landlord is providing no janitorial, cleaning or trash removal services whatsoever to the Leased Premises and Tenant shall be solely responsible for contracting with service providers providing such services and shall pay for such services when payments therefor are due. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>ALTERATIONS BY TENANT</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 9.01 Alterations</U>. Tenant shall not make any alterations, additions or modifications to the Leased Premises except in accordance with the Project Agreement, or except as otherwise expressly provided herein with respect to Tenant&#146;s repair and maintenance obligations, and in each case only with prior notice to, and written consent of, Landlord. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 9.02 Ownership of Improvements</U>. Subject to the terms of the Project Agreement and to Tenant's removal obligations set forth in Section 9.05 below and Landlord&#146;s obligation (if applicable) to pay the Early Termination Fee set forth in Section 1.02 above, and specifically excluding any equipment or improvements directly related to Parent&#146;s proprietary technology, any improvements, alterations and additions to the Leased Premises made by Tenant shall become the asset of Landlord without compensation to Tenant at the expiration or earlier termination of this Lease, and such improvements shall automatically and without any act of Tenant or any third party become Landlord&#146;s property upon expiration or earlier termination of this Lease, without cost or charge to Landlord. &nbsp;Within thirty (30) days following the expiration or earlier termination of this Lease, Tenant shall execute, acknowledge and delive
r to Landlord any quitclaim deed or other document which may be requested by Landlord to evidence the foregoing. &nbsp;Improvements shall not include licensed technology, developed technology, personal items, books &amp; records, office equipment, engineering equipment, test equipment, research &amp; development equipment, production equipment or other removable equipment provided by Tenant or AE or a related party (collectively &#147;Excluded Property&#148;). &nbsp;Notwithstanding anything in this Lease to the contrary, in no event shall any fixtures at the Leased Premises by deemed or otherwise considered Excluded Property and the same shall not be removed by Tenant without the express written consent of Landlord (in Landlord&#146;s sole and absolute discretion).</P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always"><U>Section 9.03 Standard of Work</U>. All work to be performed by or for Tenant pursuant to this Lease will be performed, without expense to Landlord, diligently, in a good, first-class and workmanlike manner, consistent with the norm of the city of Keyes, California and in compliance with all applicable laws, ordinances, regulations, and rules of any public authority having jurisdiction over the Leased Premises. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 9.04 Mechanic&#146;s Liens</U>. &nbsp;After the Possession Date and except in the ordinary course of business under which such liens are removed (at Tenant&#146;s sole cost and expense) after completion of work, Tenant shall not suffer or permit any mechanic&#146;s lien to be filed against the interest of Landlord or Tenant in the Leased Premises by reason of work, services or materials supplied to Tenant, the Leased Premises, or any part thereof, and Tenant agrees to keep the Leased Premises free of all liens and claims for labor performed on and material delivered to the Leased Premises. If a lien is placed on the Leased Premises at any time after the Possession Date resulting from any such labor or material or construction on or to the Leased Premises resulting from any act of Tenant, Tenant, at its sole cost and expense, shall cause such lien to be removed, expunged or bonded around within thirty (30) days followin
g the recordation of such lien. &nbsp;In the event Tenant fails to timely so remove any lien recorded against the Leased Premises, Landlord may obtain a bond to remove such lien, and any costs to Landlord in doing same, including any legal costs or attorney&#146;s fees incurred, will become additional rent due from Tenant to Landlord payable upon written demand therefor. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 9.05 Election to Require Removal</U>. &nbsp;Excluding items listed in the Repair and Retrofit Activities and items specifically approved in writing by Landlord, Landlord may elect to require the removal of all or a portion of any improvements, alterations or additions to the Leased Premises made by Tenant upon the expiration or earlier termination of this Lease. &nbsp;Landlord shall make such election to require removal by delivering to Tenant written notice of such election (a &#147;<U>Removal Notice</U>&#148;) not less than three (3) months before the expiration date of the Term, in which case Tenant shall complete such removal by the expiration of the Term, except that upon any earlier termination of this Lease, Landlord shall deliver to Tenant any Removal Notice within thirty (30) days after such earlier termination of this Lease, in which case Tenant shall complete such removal with sixty (60) days after delivery 
of the Removal Notice. &nbsp;The duty to remove such improvements, alterations or additions imposed by this Section 9.05 includes, but is not limited to, the duty to leave the Leased Premises safe and free from debris and Hazardous Materials on the Leased Premises as a result of Tenant&#146;s use of the Leased Premises, in a condition at least as good as the condition of the Leased Premises on the Possession Date. &nbsp;Such restoration shall include, but not be limited to, remediation (or at Landlord&#146;s election, payment to Landlord of Landlord&#146;s remediation costs within thirty (30) days after receipt of an invoice for such costs) of contamination of the Leased Premises by Hazardous Materials resulting from Tenant&#146;s use or occupation of the Leased Premises. &nbsp;In the event that Tenant fails to restore the Leased Premises, Landlord may elect to perform such restoration, and Tenant shall pay Landlord for the costs and expenses of such restoration incurred by Landlord, within thirty (30) days 
after receipt of an invoice for such costs. &nbsp;This Section 9.05 shall survive the expiration or earlier termination of this Lease.</P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always" align=center><B>REPAIRS AND MAINTENANCE</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 10.01 Tenant&#146;s Obligations</U>. &nbsp;Tenant shall, at its sole cost and expense, at all times from and after the Possession Date, maintain and preserve, in good condition, the Leased Premises and the fixtures, systems and appurtenances thereon and shall on the expiration or earlier termination of this Lease, return the Leased Premises in the same condition as received by Tenant on the Possession Date, reasonable wear and tear and alterations required to be performed pursuant to the Project Agreement or hereunder excepted. &nbsp;Except as otherwise expressly set forth in this Lease, Tenant shall also be responsible for all necessary repairs and replacements, structural and non-structural, interior and exterior, ordinary and extraordinary, in and to the building and the facilities and systems thereof, and shall pay any and all expenses in connection with the maintenance and operation of the Leased Premises, includi
ng repair and upkeep of grounds, sidewalks, driveways and party areas, in a good condition. &nbsp;All repairs and replacements shall be made with materials of equal or better quality then the items being repaired or replaced, but under no circumstances shall this Section be interpreted to require Tenant to improve the condition of the Leased Premises to a better condition than existed as of the Possession Date. &nbsp;To the extent practicable, Tenant shall give Landlord sufficient prior written notice of all such repairs and replacements and Landlord may consent to all such repairs and replacements in its sole and absolute discretion.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 10.02 No Obligation of Landlord to Make Repairs</U>. &nbsp;Landlord shall not be required to furnish any services or facilities or to make any repairs or replacements in or to the Leased Premises. &nbsp;Tenant hereby assumes the full and sole responsibility for the condition, operation, repair, replacement, maintenance and management of the Leased Premises.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 10.03 Commission of Waste</U>. &nbsp;Tenant shall not cause or permit any waste or damage, disfigurement or injury to any of the Leased Premises or any part or parts thereof.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>PERSONAL PROPERTY TAXES</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 11.01 Personal Property Taxes</U>. Prior to delinquency, Tenant will pay all applicable taxes and assessments levied on trade fixtures, alterations, additions, improvements, inventories, and other personal property located or installed on the Leased Premises by Tenant, including, but not limited to, Tenant&#146;s leasehold interest, facilities, equipment, machinery or other property placed on the Leased Premises by or for Tenant, or Tenant&#146;s improvements, entitlements or operations. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>INSURANCE &nbsp;</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 12.01 Tenant&#146;s Obligations</U>. Tenant will, at Tenant&#146;s expense, obtain and keep in full force at all times from and after the Possession Date the following insurance to the satisfaction of the Landlord and, except as set forth below, to have Landlord or a designee of Landlord, including its mortgagee, be listed as additional loss payee on all contracts:</P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt; page-break-before:always">(a) <U>Workers&#146; Compensation and Employer&#146;s Liability Insurance</U>. Workers&#146; compensation insurance having limits not less than those required by state statute, and covering all persons employed by Tenant in the conduct of Tenant&#146;s operations on the Leased Premises, and employer&#146;s liability insurance in an amount not less than $1,000,000 per accident/per employee. &nbsp;Neither Landlord nor any designee of Landlord may be an additional loss payee with respect to workers&#146; compensation insurance. &nbsp;Notwithstanding the foregoing, Tenant may carry employer&#146;s liability insurance in an amount of $500,000 provided that Tenant has an umbrella policy that provides additional coverage such that the aggregate coverage meets the foregoing coverage limit.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(b) <U>General Liability Insurance</U>. A policy of commercial general liability insurance (occurrence form) having a combined single limit (including any umbrella coverage) of not less than $10 million per occurrence, providing coverage for, among other things, blanket contractual liability, premises, products and completed operations against any claims for bodily injury, death or property damage, occurring on, in or about the Leased Premises, and on, in or about the adjoining streets, property, parking lots and passageways, and against contractual liability for any such claims.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(c) <U>Hazard Insurance.</U> &nbsp;A policy of commercial hazard insurance having a combined single limit of not less than $90 million per occurrence will be held by Landlord and Tenant will reimburse Landlord for the cost of maintaining Landlord&#146;s Hazard Insurance, within thirty (30) days following written demand therefor.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(d) <U>Business Interruption Insurance</U>. During the period of the Term of this Lease, the Tenant shall maintain business interruption insurance having such terms and conditions as are reasonably satisfactory to Landlord. &nbsp;Except for rent payments and any other amounts payable to Landlord hereunder by Tenant, Landlord shall not be entitled to receive any portion of any insurance proceeds from this policy; provided, however, notwithstanding the foregoing, upon expiration of this Lease or early termination of this Lease (provided that Tenant shall have at least 60 (sixty) days prior notice of such termination), such policy shall provide for payment to Landlord of any insurance proceeds with respect to any periods of coverage following the termination of this Lease.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(e) <U>Builder&#146;s Risk</U>. &nbsp;During any period during which Repair and Retrofit Activities or any other alterations to the Leased Premises are being performed, builder&#146;s risk property insurance in amounts equal to the sum of construction contracts and anticipated soft costs for the construction work being undertaken.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(f) <U>Other Coverages</U>. &nbsp;Such other policy or policies as are either reasonably deemed necessary by Landlord or its mortgagee or required by insurers by reason of a change in Tenant&#146;s use of, or activities at, the Leased Premises or required by Environmental Law. &nbsp;Tenant shall have sixty (60) days after receipt of Landlord&#146;s request under this Section 12.01(f) to procure such insurance.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 12.02 Insurance to be Maintained by Landlord</U>. &nbsp;Landlord shall at all times keep the Leased Premises insured for the protection of Landlord against such risks, and with such coverages, as Landlord or its mortgagee shall from time to time require, including </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always">without limitation, broad form fire and extended coverage insurance, in an amount not less than the full replacement value (as from time to time designated by Landlord) of all improvements, with coverage (in addition to the standard coverage afforded by such insurance) for theft, plate glass damage, vandalism, malicious mischief, and, if required by Landlord (in its sole and absolute discretion), boiler explosion, war risk and earthquake, and rent insurance with respect to the Rent payable for the one year period following the occurrence of any casualty, and any other insurance that Landlord deems prudent or advisable in its sole and absolute discretion. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 12.03 General Insurance Provisions</U>:</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(a) <U>Insurance Companies</U>. Insurance required to be maintained by Tenant will be written by companies licensed to do business in the State of California having an A.M. Best&#146;s rating of at least &#147;A&#148;, and (ii) not be subject to cancellation or material change or non-renewal without at least thirty (30) days&#146; prior written notice to Landlord and/or Landlord&#146;s designee, as the case may be, except for non-payment of premium, which shall be ten (10) days. &nbsp;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(b) <U>Certificates of Insurance</U>. Tenant will deliver to Landlord certificates of insurance for all insurance required to be maintained by Tenant no later than the Possession Date conforming to the requirements hereof. &nbsp;Tenant will, at least thirty (30) days prior to expiration of the policy, furnish Landlord with certificates of renewal or binders. &nbsp;If Tenant fails to maintain any insurance required in this Lease, Tenant will be liable for all losses and costs resulting from that failure; Landlord will have the right, but not the obligation, to obtain insurance on behalf of Tenant, and Tenant will immediately on demand pay Landlord the premiums on the insurance; and Landlord may declare a default under this Lease. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(c) <U>Primary Coverage</U>. All insurance to be maintained by Tenant must, except for workers&#146; compensation and employer&#146;s liability insurance, be primary, without right of contribution from insurance of Landlord. &nbsp;All general liability policies shall name Landlord and/or its designees as additional insureds. The limits of insurance maintained by Tenant will not limit Tenant&#146;s liability under this Lease. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(d) <U>Accidents</U>. &nbsp;Upon the occurrence of any accident, injury or personal property casualty in or about the Leased Premises, Tenant shall give immediate notice thereof to Landlord, and shall provide Landlord with evidence that such liability of Landlord relating thereto is covered by the insurance which Tenant is required by this Lease to carry.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>INDEMNIFICATION</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 13.01 Indemnification by Tenant</U>. &nbsp;Except to the extent caused by the gross negligence or willful misconduct of Landlord, Landlord will not be liable for any loss or damage to person or property caused by theft, fire, acts of God, acts of a public enemy, riot, strike, insurrection, war, court order, requisition, or order of government body or authority. &nbsp;Except to the extent of the gross negligence or willful misconduct of a </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always">Landlord Indemnified Party (as defined below), Tenant and Parent shall, jointly and severally, defend, indemnify and hold harmless Landlord and Landlord&#146;s employees, agents, partners, Affiliates, shareholders, directors, officers, and assigns (each, a &#147;<U>Landlord Indemnified Party</U>&#148;), by counsel acceptable to Landlord, from and against the following:</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(a) any and all losses, costs, damages, fines, penalties, interests, assessments, fees or expenses (including reasonable attorney&#146;s fees) (&#147;Losses&#148;) arising from third-party claims for property damage or personal injury (including emotional distress) that directly or indirectly arise out of or result from any negligent, willful, reckless, or otherwise tortious act or omission (including strict liability) during the performance of the Repair and Retrofit Activities or operation of the Leased Premises, by Tenant, Parent, any subcontractor, or any of their respective Affiliates;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(b) Losses that directly arise out of or result from (i) all claims for payment, whether or not reduced to a lien or mechanics lien, filed by Tenant, Parent or any of its or their Affiliates or subcontractors, or other persons performing any portion of the Repair and Retrofit Activities; and (ii) employers&#146; liability or workers&#146; compensation claims filed by any employees or agents of Tenant, Parent or any of its or their subcontractors or Affiliates;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(c) Losses issued by any Governmental Authority that directly arise out of or result from the failure of Tenant or Parent or any of its or their Affiliates or subcontractors to comply with the terms and conditions of any Legal Requirements relating to the use or possession of the Leased Premises;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(d) Losses in connection with the operation of the Leased Premises by Tenant or Parent, or any of their Affiliates or agents, including, without limitation, any Losses arising in connection with any alleged infringement of any intellectual property rights of Third Parties in connection with the operation of the Leased Premises by Tenant, Parent, or any of their agents or Affiliates;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(e) Losses arising in connection with the breach by Tenant or Parent of any of their representations, warranties, covenants or agreements contained herein;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(f) Losses as a result of any claims by any Governmental Authority that arise out of or result from the failure of Tenant or Parent to pay, as and when due, all taxes, duties, levies, assessments, tariffs, imposts, fees or charges of any kind (together with any and all interest, penalties, additions to tax and additional amounts imposed with respect thereto) imposed by any Governmental Authority for which Tenant or Parent is obligated to pay pursuant to the terms of this Lease; </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(g) all Losses, including claims for property damage, remedial action or personal injury (including emotional distress), whether or not involving damage to the Leased Premises, that directly or indirectly arise out of or result from (i) the use, storage, transportation, manufacture, processing or disposal whether or not in compliance with Legal Requirements, of Hazardous Materials at the Leased Premises from and after the </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always">Possession Date; and (ii) the presence or existence of or contamination of the Leased Premises, caused by the spill or release of Hazardous Materials brought onto, or handled at, the Leased Premises (excluding Landlord); and </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(h) Losses arising in connection with the condition of the Leased Premises or any other act, event, failure or omission by Tenant, Parent or any of its or their employees, contractors, subcontractors, consultants, agents, representatives, invitees, licensees or permittees (collectively, &#147;<U>Tenant Parties</U>&#148;).</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 13.02 Indemnification By Landlord</U>. &nbsp;Except for Losses arising out of or resulting from the gross negligence or willful misconduct of a Tenant Party, Landlord shall defend, indemnify and hold harmless the Tenant Parties from and against the following:</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(a) &nbsp;Losses arising from third-party claims for property damage or personal injury (including emotional distress) that directly or indirectly arise out of or result from any negligent, reckless, or otherwise tortious act or omission (including strict liability) by Landlord prior to the Possession Date;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(b) &nbsp;Losses that directly arise out of or result from (i) all claims for payment, whether or not reduced to a lien or mechanics&#146; lien, filed by Landlord, or any of its Affiliates or subcontractors, or other persons prior to the Possession Date; and (ii) employers&#146; liability or workers&#146; compensation claims filed by any employees of Landlord or any of its subcontractors or Affiliates;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(c) &nbsp;Losses arising in connection with the breach by Landlord of any of its representations, warranties, covenants or agreements contained herein;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(d) &nbsp;Losses as a result of any claims by any Governmental Authority that arise out of or result from the failure of Landlord to pay, as and when due, all taxes, duties, levies, assessments, tariffs, imposts, fees or charges of any kind (together with any and all interest, penalties, additions to tax and additional amounts imposed with respect thereto) imposed by any Governmental Authority for which Landlord is obligated to pay and for which a Tenant Party is not required to reimburse Landlord; and</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(e) &nbsp;all Losses, including claims for property damage, remedial action or personal injury (including emotional distress), whether or not involving damage to the Leased Premises, that directly or indirectly arise out of or result from (i) the use, storage, transportation, manufacture, processing or disposal by or for the benefit of Landlord whether or not in compliance with Legal Requirements, of Hazardous Materials at the Leased Premises occurring prior to the Possession Date; and (ii) the presence or existence of or contamination of the Leased Premises, caused by the spill or release of Hazardous Materials brought onto, or handled at, the Leased Premises, occurring prior to the Possession Date. &nbsp;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt"><U>Section 13.03 Claims for Indemnification</U>. &nbsp;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:288px; font-size:12pt">(a) A person entitled to indemnification under this Section 13 (an &#147;Indemnified Party&#148;) shall give prompt written notification to the person from whom indemnification is sought (the &#147;Indemnifying Party&#148;) of the commencement of any action, suit or proceeding relating to a Third Party claim for which </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always">indemnification may be sought or, if earlier, upon the assertion of any such claim by a Third Party (it being understood and agreed, however, that the failure by an Indemnified Party to give notice of a Third-Party claim as provided in this Section 13 shall not relieve the Indemnifying Party of its indemnification obligation under this Lease except and only to the extent that such Indemnifying Party is actually prejudiced as a result of such failure to give notice).</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(b) Within thirty (30) days after delivery of such notification, the Indemnifying Party may, upon written notice thereof to the Indemnified Party, assume control of the defense of such action, suit, proceeding or claim with counsel reasonably satisfactory to the Indemnified Party. &nbsp;If the Indemnifying Party does not assume control of such defense, the Indemnified Party shall control such defense. &nbsp;The party not controlling such defense may participate therein at its own expense; provided that if the Indemnifying Party assumes control of such defense and the Indemnified Party reasonably concludes, based on advice from counsel, that the Indemnifying Party and the Indemnified Party have conflicting interests with respect to such action, suit, proceeding or claim, the Indemnifying Party shall be responsible for the reasonable fees and expenses of counsel to the Indemnified Party solely in connection therew
ith; provided further, however, that in no event shall the Indemnifying Party be responsible for the fees and expenses of more than one counsel in any one jurisdiction for all Indemnified Parties.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(c) The party controlling such defense shall keep the other party advised of the status of such action, suit, proceeding or claim and the defense thereof and shall consider recommendations made by the other party with respect thereto.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(d) The Indemnified Party shall not agree to any settlement of such action, suit, proceeding or claim without the prior written consent of the Indemnifying Party, which shall not be unreasonably withheld. &nbsp;The Indemnifying Party shall not agree to any settlement of such action, suit, proceeding or claim or consent to any judgment in respect thereof that does not include a complete and unconditional release of the Indemnified Party from all liability with respect thereto or that imposes any liability or obligation on the Indemnified Party without the prior written consent of the Indemnified Party.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 13.04 Survival</U>. &nbsp;Without limiting or in any way agreeing to waive a party&#146;s right to make a claim at common law as permitted pursuant to applicable law for contribution or indemnification with respect to third-party claims, and notwithstanding any other provision in this Lease to the contrary, the indemnities set forth in this Section 13 shall survive the expiration or earlier termination of this Lease.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>HAZARDOUS MATERIALS</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 14.01 Definitions</U>. As used in this Section, &#147;<U>Hazardous Material</U>&#148; means any chemical, substance, material or waste (including constituents thereof), that is or may be hazardous to human health or safety or to the environment, that are now or become in the future listed, defined, or regulated in any manner by any Environmental Law, whether such law is regulatory or statutory, and is local, state or federal, and from time to time adopted.</P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always"><U>Section 14.02 Use of Hazardous Materials</U>. Tenant will not cause or permit any Hazardous Materials to be released or to become present on, under, or about the Leased Premises or other properties in the vicinity of the Leased Premises, except for Hazardous Materials that are typically found, brought into, stored or used at comparable ethanol production facilities similar to the Leased Premises, and, in all instances, in accordance with all applicable Legal Requirements and prudent industry practices and in a manner that does not expose the Leased Premises or other neighboring properties to any risk of contamination or damage or Landlord to any liability. &nbsp;Without limiting the generality of the foregoing, any removal, transportation or disposal of Hazardous Materials from the Leased Premises shall be performed by duly licensed haulers and such Hazardous Materials shall be transported to faciliti
es duly licensed for final disposal of such Hazardous Materials. &nbsp;Tenant shall, at its sole cost and expense, prepare and comply with all environmental plans related to the Project or Tenant&#146;s use of the Leased Premises as required by applicable Legal Requirements. &nbsp;Under no circumstances shall Tenant install any underground storage tanks, underground pipelines or other conduits under the Leased Premises. &nbsp;On January 1 of each year of the Term and on January 1 of the year following the expiration or earlier termination of the Term, Tenant shall disclose in writing to Landlord the names and amounts of any and all Hazardous Materials that are used, placed, generated, released, stored or disposed in, on, under or around the Leased Premises or transported to or from the Leased Premises. &nbsp;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 14.03 No Landlord Liability</U>. &nbsp;Except to the extent caused by Landlord or its employees, contractors, subcontractors, consultants, agents, representatives, invitees, licensees or permittees (collectively, &#147;<U>Landlord Parties</U>&#148;) and except to the extent Hazardous Materials are present in, on, under or about the Leased Premises prior to the Possession Date, from and after the Possession Date none of the Landlord Parties shall be liable to Tenant for any claim or injury to any person or property of any kind or character arising from or caused by the presence of any Hazardous Materials in, on, under or about the Leased Premises or the soils or groundwater of the Leased Premises, whether known or unknown, including, but not limited to, liability under any applicable Legal Requirements. &nbsp;Tenant hereby waives on behalf of the Tenant Parties all claims against any of the Landlord Parties for any such
 claims. &nbsp;Tenant&#146;s activities shall not cause or contribute to Landlord being in non-compliance with any applicable Legal Requirements.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 14.04 Landlord&#146;s Inspection Rights</U>. &nbsp;Upon not less than two (2) business days&#146; written notice to Tenant (except in the event of an emergency which is not being attended to by Tenant) , Tenant shall permit Landlord and its representatives access to the Leased Premises (accompanied by a representative of Tenant but only to the extent such Tenant&#146;s representative is made reasonably available and without cost to Landlord) from time to time, to conduct any environmental assessment, investigation or sampling: (i) required by any mortgagee of Landlord or prospective purchaser of an interest in the Leased Premises; (ii) required pursuant to Environmental Laws; or (iii) requested by the Landlord prior to the expiration or sooner termination of this Lease, all at Landlord&#146;s sole cost and expense, except to the extent that such environmental assessment, investigation &nbsp;or sampling identifies conta
mination caused or resulting from the use or occupancy of the Leased Premises by any Tenant Party. &nbsp;In connection with such access, the Landlord shall not unreasonably interfere with the Tenant&#146;s use and occupancy of the Leased Premises.</P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always"><U>Section 14.05 Hazardous Materials Notices</U>. &nbsp;Tenant, at its sole cost and expense, shall be solely responsible for providing any notice of the use, placement, generation, release, storage, disposal or transportation of any Hazardous Materials to persons occupying or entering the Leased Premises and other neighboring properties that is required under applicable Legal Requirements. &nbsp;If Tenant knows or has reasonable cause to believe that any Hazardous Material has come to be located in, on, under or about the Leased Premises, other than in compliance with Section 14.02 , then Tenant shall immediately provide written notice thereof to Landlord, which shall include a complete copy of any report, notice, claim or other documentation in Tenant&#146;s possession concerning the presence of such Hazardous Material. &nbsp;Tenant shall also notify Landlord in writing, within ten (10) business days o
f becoming aware of any notice of violation, investigation, order or enforcement proceeding relating to the Project or the Leased Premises and shall include with such written notice a complete copy of any order, complaint, agreement or other document in Tenant&#146;s possession which has been issued, executed or proposed, whether in draft or final form. &nbsp;Tenant shall not enter into any settlement agreement, consent decree or other agreement with respect to any complaint or claim relating to any Hazardous Materials in any way connected with the Leased Premises without first notifying Landlord of Tenant&#146;s intention to do so and affording Landlord with ample opportunity to appear, intervene or otherwise appropriately assert and protect Landlord&#146;s interest in the contemplated action.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 14.06 Hazardous Materials Remediation</U>. &nbsp;Tenant shall, at Tenant&#146;s sole cost and expense, after obtaining Landlord&#146;s prior written approval, promptly take all investigatory and/or remedial action reasonably advisable or recommended, whether or not formally ordered or required, for the clean-up of any contamination and maintenance, security and/or monitoring of (i) the Leased Premises, except to the extent such contamination was caused by Landlord or any Landlord Party during the Term and except to the extent Hazardous Materials are present in, on, under or about the Leased Premises prior to the Possession Date, and (ii) any other neighboring properties, to the extent that a Tenant Party caused or contributed to such Hazardous Materials contamination. &nbsp;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 14.07 Landlord&#146;s Obligations</U>. &nbsp;If, subsequent to Possession Date, it is determined that there are Hazardous Materials in the Leased Premises which were present in, on, under or about the Leased Premises prior to the Possession Date, and such Hazardous Materials are required by Environmental Law or other applicable law to be removed, encapsulated or otherwise treated (&#147;Remed<U>i</U>ated&#148;), Landlord, at Landlord&#146;s expense, shall as soon as practicable after notice thereof from Tenant, remediate said Hazardous Materials in accordance with Environmental Law.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 14.08 Hazardous Materials Obligations at End of Lease</U>. &nbsp;Upon the expiration or earlier termination of this Lease, Tenant shall, at its sole cost and expense, upon Landlord&#146;s request and in compliance with all applicable Legal Requirements, except to the extent caused by a Landlord Party during the Term and except to the extent Hazardous Materials are present in, on, under or about the Leased Premises prior to the Possession Date: &nbsp;(i) remove, remediate, abate and dispose of any Hazardous Materials located in, on or under the Leased Premises introduced or otherwise brought onto the </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always">Leased Premises by a Tenant Party from and after the Possession Date; (ii) remove, remediate, abate, compact, dispose of and/or replace any contaminated soil to the extent caused by or arising out of the use and occupancy of the Leased Premises by a Tenant Party; and (iii) remediate, remove, abate and/or dispose of any contamination of the surface water or ground water to the extent caused by or arising out of the use and occupancy of the Leased Premises by a Tenant Party, such that the Project and the Leased Premises are free of Hazardous Materials to the same extent as they were when originally delivered by Landlord to Tenant.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt">Tenant&#146;s obligations under this Section 14 shall survive the expiration or earlier termination of this Lease.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>DAMAGE AND DESTRUCTION</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 15.01 Notification</U>. &nbsp;Tenant shall give prompt written notice to Landlord of (a) any occurrence in or about the Leased Premises for which Landlord might be liable, and (b) any fire or other casualty upon the Leased Premises. &nbsp;Landlord shall give to Tenant an estimate of the time it will take to repair the Leased Premises within thirty (30) days following such damage or destruction.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 15.02 Damage and Destruction</U>. If the Leased Premises shall be destroyed by fire or other casualty or shall be so damaged by fire or other casualty that (in the opinion of a reputable contractor or architect designated by Landlord) the ethanol production facility located on the Leased Premises is rendered inoperable and cannot be repaired within one hundred eighty (180) days, or the repair or restoration of the Leased Premises would require the expenditure of more than fifty percent (50%) of the full insurable value of the Leased Premises immediately prior to the casualty, Landlord, in its sole and absolute discretion, shall have the option to terminate this Lease by providing written notice to Tenant within one hundred twenty (120) days from the date of the casualty. &nbsp;In such event, Landlord shall provide Tenant with a termination notice and the termination shall be effective on the date of Landlord&#146;s not
ice. &nbsp;In connection with such termination, Tenant shall turn over or assign to Landlord all of Tenant&#146;s right, title and interest in any insurance proceeds in connection therewith other than proceeds from business interruption insurance or any similar insurance policy to the extent provided for in Section 12.01(d).</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 15.03 Repair Provisions</U>. &nbsp;To the extent consistent with Landlord&#146;s obligations to its mortgagees, if the Leased Premises are damaged or destroyed by fire or other casualty by any cause other than the fault of Tenant and Landlord does not, or is not permitted to, terminate this Lease, then Landlord, at Landlord&#146;s expense shall repair such damage after Landlord has collected the insurance proceeds attributable to such damage for purposes of such repairs and any rent due for the time Tenant is out of possession of the Leased Premises shall be abated. &nbsp;Notwithstanding the foregoing, Landlord shall have no obligation whatsoever to repair any material damage to the Leased Premises that occurs prior to the Lease Commencement Date or during the last twelve (12) months of the Term of this Lease. </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always"><U>Section 15.04 Insufficiency of Insurance Proceeds</U>. &nbsp;Notwithstanding anything herein contained to the contrary, if the net proceeds of Landlord&#146;s insurance recovered or recoverable as a result of the damage (free of all claims by Landlord's mortgagees and others and all costs of collection or otherwise) shall be insufficient to pay fully for the cost of replacement of the Leased Premises and/or the building in which they are located and the balance of the building, or the Leased Premises or the building shall be damaged as a result of a risk which is not covered by Landlord&#146;s insurance, or Landlord is unable to rebuild any portion of the Leased Premises due to any inability to obtain any required governmental approval in connection therewith, Landlord shall have the right, to be exercised in writing delivered to Tenant within one hundred twenty (120) days after said occurrence, to el
ect to cancel and terminate this Lease. &nbsp;Upon the giving of such notice to Tenant, the term of this Lease shall expire on the thirtieth (30th) day after such notice is given, and Tenant shall vacate the Leased Premises and surrender the same to Landlord.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>EMINENT DOMAIN</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 16.01 Total Condemnation</U>. Either party shall give prompt notice to the other upon learning of a threatened condemnation. &nbsp;If all of the Leased Premises is condemned by eminent domain, inversely condemned, or sold in lieu of condemnation for any public or quasi-public use or purpose, this Lease will terminate as of the date of title vesting in that proceeding and the Rent will be abated from the date of termination. &nbsp;In such event, Tenant shall turn over or assign all of its right, title and interest in and to such award or proceeds to Landlord.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 16.02 Partial Condemnation</U>.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(a) If any portion of the Leased Premises is condemned by eminent domain, inversely condemned, or sold in lieu of condemnation for any public or quasi-public use or purpose such that, in Landlord&#146;s reasonable opinion, the ethanol production facility located thereon cannot be operated for Tenant&#146;s business, Tenant shall have the option to terminate this Lease, by providing written notice thereof to Landlord, as of the date of vesting of title on such taking and this Lease will terminate as of the date of title vesting or order of immediate possession in that proceeding and the Rent will be abated to the date of termination. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(b) If, in Landlord&#146;s reasonable opinion, the partial condemnation does not render the Leased Premises unusable for the business of Tenant, then this Lease, only as to the portion or portions so taken, shall terminate as of the date possession thereof shall be delivered to the condemnor but otherwise this Lease shall remain in full force and effect. &nbsp;Tenant and Landlord shall agree on an abatement in rent in an amount equal to the reduction in leasehold value resulting from such partial condemnation. &nbsp;In the event Tenant and Landlord cannot agree on such a reasonable value, then the parties shall submit such dispute to the American Arbitration Association, the decision of which shall be binding on the parties. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 16.03 Award</U>. If the Leased Premises are wholly or partially condemned, Landlord will be entitled to the entire award paid for the condemnation, and Tenant </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always">waives any claim to any part of the award from Landlord or the condemning authority. However, Tenant will have the right to recover from the condemning authority any compensation that may be separately awarded to Tenant in connection with any award allowable to Tenant by law, including but not limited to lost profits, destruction of the improvements, relocation, loss in value of leasehold interests, costs in removing Tenant&#146;s improvements, merchandise, furniture, fixtures, Leasehold improvements, and equipment to a new location, but only to the extent that such award does not decrease the amount awarded to Landlord. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>DEFAULT</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 17.01 &nbsp;Events of Default</U>. The occurrence of any of the following events will, at Landlord&#146;s option, constitute an event of default (&#147;<U>Event of Default</U>&#148;): </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(a) in the event Rent is late as defined hereunder, failure to pay Rent within fifteen (15) days following written demand to pay such delinquent Rent by Landlord; </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(b) the vacating of or abandonment of the Leased Premises for a period of thirty (30) consecutive days; </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(c) failure to perform Tenant&#146;s or Parent&#146;s covenants under this Lease (except default in the payment of Rent which is addressed by paragraph (a) above); <I>provided</I> that if this default is susceptible of cure and Tenant or Parent has promptly commenced the cure of this default and is diligently prosecuting the cure to completion, then the default must remain uncured for thirty (30) days after written notice from Landlord; </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(d) the making of a general assignment by Tenant or Parent for the benefit of creditors, the filing of a voluntary petition by Tenant or Parent, or the filing of an involuntary petition by any of Tenant or Parent&#146;s creditors seeking the rehabilitation, liquidation, or reorganization of Tenant or Parent under any law relating to bankruptcy, insolvency, or other relief of debtors and, in the case of an involuntary action, the failure to remove or discharge the petition within sixty (60) days of the filing;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(e) any representation or warranty made by Tenant or Parent in this Lease or in the Project Agreement shall prove to have been false or incorrect in any respect when such representation or warranty was made or given, and remains a misrepresentation or breach of warranty which is materially adverse to Landlord at the time discovered;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(f) Tenant shall have failed to maintain any insurance as and when required to be provided under this Lease; </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(g) Tenant shall have caused or permitted any use of the Leased Premises that constitutes waste or public or private nuisance; or</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(h) there occurs an event of default, beyond all applicable notice and cure periods, on the part of Tenant or Parent under the Project Agreement, or the Project Agreement is otherwise terminated for any reason whatsoever.</P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always"><U>Section 17.02 &nbsp;Remedies</U>. Upon the occurrence and during the continuance of an Event of Default, Landlord shall have the following remedies in addition to all rights and remedies provided by law or equity or provided elsewhere in this Lease: </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(a) <U>Termination</U>. In the event of the occurrence of any uncured Event of Default, Landlord will have the right to give a written termination notice to Tenant and, on the date specified in that notice, unless on or before that date all arrears of Rent and all other sums payable by Tenant under this Lease and all costs and expenses incurred by or on behalf of Landlord have been fully and unconditionally paid by Tenant and all other Events of Default at the time existing have been fully and unconditionally cured to the sole satisfaction of Landlord. &nbsp;On the date specified in Landlord&#146;s termination notice, this Lease will terminate and Tenant shall immediately surrender the Leased Premises to Landlord, and if Tenant fails to do so, Landlord may, without prejudice to any other remedy which it may have for possession or arrearages in rent, resort to legal process and take possession of the Leased Premi
ses and expel or remove Tenant and any other person who may be occupying the Leased Premises or any part thereof, without being liable for prosecution or any claim or damages therefor. &nbsp;In addition, Landlord may terminate this Agreement immediately by providing written notice to Tenant at any time in the event that (i) the Lease Commencement Date does not occur on or prior to July 31, 2010; or (ii) the Project Agreement is terminated prior to the Lease Commencement Date.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(b) <U>Repossession</U>. Following termination, without prejudice to other remedies Landlord may have, Landlord may (A) peaceably re-enter the Leased Premises on voluntary surrender by Tenant; (B) remove Tenant and any other persons occupying the Leased Premises, using any legal proceedings that may be available; (C) repossess the Leased Premises or relet the Leased Premises or any part of them for any term (which may be for a term extending beyond the Term), at any rental and on any other terms and conditions that Landlord in Landlord&#146;s sole discretion may determine, with the right to make reasonable alterations and repairs to the Leased Premises; and (D) remove all personal property. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(c) <U>Unpaid Rent</U>. Landlord will have all the rights and remedies of a landlord provided by applicable law, including the right to recover from Tenant (i) the worth, at the time of award of the unpaid Rent that had been earned at the time of termination; plus (ii) the worth, at the time of award, of the amount by which the unpaid Rent that would have been earned after the date of termination until the time of award exceeds the amount of loss of rent that Tenant proves could have been reasonably avoided; plus (iii) the worth, at the time of award, of the amount by which the unpaid Rent for the balance of the Term after the time of award exceeds the amount of the loss of rent that Tenant proves could have been reasonably avoided; plus (iv) any other amount, and court costs, necessary to compensate Landlord for all detriment proximately caused by Tenant&#146;s default or which in the ordinary course of things 
would be likely to result therefrom, specifically including but not limited to, brokerage commissions and advertising expenses incurred, expenses of remodeling the Leased Premises or any portion thereof for a new tenant, whether for the same or a different use, and any special concessions made to obtain a new tenant; and (v) at Landlord&#146;s election, such other amounts in </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always">addition to or in lieu of the foregoing as may be permitted from time to time by applicable law.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">The term &#147;rent&#148; as used in this Section&nbsp;17 shall be deemed to be and to mean all sums of every nature required to be paid by Tenant pursuant to the terms of this Lease, whether to Landlord or to others. &nbsp;As used in Sections 17.02(c)(i) and (ii) above, the &#147;worth at the time of award&#148; shall be computed by allowing interest at ten percent (10%) per annum. &nbsp;As used in Section 17.02(c)(iii) above, the &#147;worth at the time of award&#148; shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%).</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(d) <U>Right to Cure</U>. &nbsp;If Tenant fails to perform any affirmative duty or obligation of Tenant under this Lease, Landlord may elect, in its sole and absolute discretion, after written notice to Tenant (or in case of an emergency, without notice), to perform such duty or obligation on Tenant&#146;s behalf, including, but not limited to, obtaining reasonably required surety bonds, insurance policies or Permits. &nbsp;Tenant shall pay to Landlord the costs and expenses of any such performance by Landlord within thirty (30) days after delivery to Tenant of an invoice therefor. &nbsp;Notwithstanding anything to the contrary contained in this Lease, Landlord shall have no duty or obligation whatsoever to mitigate damages upon the occurrence of an Event of Default.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 17.03 Continuation</U>. Upon the occurrence of an Event of Default, Landlord shall have the remedy described in California Civil Code Section&nbsp;1951.4 (lessor may continue lease in effect after lessee&#146;s breach and abandonment and recover rent as it becomes due, if lessee has the right to sublet or assign, subject only to reasonable limitations), in which event this Lease will continue in effect for so long as Landlord does not terminate Tenant&#146;s right to possession. Also, Landlord may enforce all of Landlord&#146;s rights and remedies under this Lease, including the right to recover Rent as it becomes due. No act by Landlord under this Lease, including acts of maintenance, preservation, or efforts to Lease the Leased Premises or the appointment of a receiver on application of Landlord to protect Landlord&#146;s interest under this Lease, will terminate this Lease unless Landlord notifies Tenant that Landlo
rd elects to terminate this Lease. In the event that Landlord elects to relet the Leased Premises, the rent that Landlord receives from reletting will be applied to pay the following in the order listed: </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(a) any indebtedness from Tenant to Landlord other than Base Rent and other amounts owing to Landlord under this Lease; </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(b) all costs, including maintenance, incurred by Landlord in reletting; and </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(c) Base Rent and other amounts owing to Landlord under this Lease. After deducting the payments referred to above, any sum remaining from the rental Landlord receives from reletting will be held by Landlord and applied in payment of future Rent as Rent becomes due under this Lease. In no event will Tenant be entitled to any excess rent received by Landlord. So long as this Lease is not terminated, Landlord will have the right to remedy any default of Tenant, to maintain or improve the Leased Premises, to cause a receiver to be appointed to administer the Leased Premises and new or existing </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always">subleases, and to add to the Rent all of Landlord&#146;s reasonable costs in so doing, with interest at the Applicable Interest Rate from the date of the expenditure. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 17.04 Cumulative</U>. Each right and remedy of Landlord provided for in this Lease or now or later existing at law, in equity, by statute, or otherwise, will be cumulative and will not preclude Landlord from exercising any other rights or remedies provided for in this Lease or now or later existing at law or in equity, by statute, or otherwise. No payment by Tenant of a lesser amount than the Rent, or any endorsement on any check or letter accompanying any check or payment as Rent, will be deemed an accord and satisfaction of full payment of Rent. However, Landlord may accept this payment without prejudice to Landlord&#146;s right to recover the balance of Rent or to pursue other remedies. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 17.05 No Relief from Indemnity Obligations</U>. &nbsp;Tenant shall not be relieved from liability, and its obligations to indemnify shall continue, with respect to matters occurring or accruing from and after the Possession Date or by reason of Tenant&#146;s occupancy of the Leased Premises regardless of the expiration or termination of this Lease and/or the termination of Tenant&#146;s right to possession of the Leased Premises.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 17.06 Statutory Notices of Tenant Default</U>. &nbsp;Any notice of any Event of Default under this Section&nbsp;17 shall be in lieu of, and not in addition to, any notice required under California Code of Civil Procedure Section&nbsp;1161 <I>et seq</I>.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>ASSIGNMENT AND SUBLETTING</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 18.01 Prohibition</U>. &nbsp;This Lease is personal to the named Tenant herein. &nbsp;Tenant may not directly or indirectly (in one or more transactions) assign, mortgage, pledge or encumber this Lease or sublet, whether voluntarily or involuntarily or by operation of law, the Leased Premises or any part of the Leased Premises (all of the foregoing are hereinafter sometimes referred to collectively as &#147;<U>Transfers</U>&#148;), without on each occasion first obtaining the prior written consent of Landlord<A NAME="_DV_C219"></A>, which consent shall not, except as otherwise expressly set forth herein, be unreasonably withheld.<A NAME="_DV_M252"></A> &nbsp;This prohibition against Transfers shall be construed to include a prohibition against any assignment or subletting by operation of law. &nbsp;For purposes of this Section 18, a Change in Control (as defined below) of Tenant or a merger, consolidation or reorganiza
tion of Tenant shall also constitute an assignment of this Lease requiring Landlord&#146;s prior written consent. &nbsp;Except as set forth herein, violation of this Section 18 by Tenant shall be an Event of Default without notice or opportunity to cure and shall be voidable by Landlord (as elected in Landlord&#146;s sole, absolute and subjective discretion). &nbsp;As used herein, the term &#147;Change in Control&#148; shall mean any change in ownership of Tenant, whether in a single transaction or a series of transactions, the result of which is that Parent holds less than fifty-one percent (51%) of the voting control in Tenant or ceases to have effective direct or indirect managerial control of Tenant (or any such other entity).</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 18.02 Tenant to Remain Liable</U>. &nbsp;Regardless of any consent of Landlord to any assignment of Tenant&#146;s interest in this Lease or sublease of the Leased Premises, such assignment or sublease shall not: (i) be effective without the express written assumption by such assignee or sublessee (each, a &#147;<U>Transferee</U>&#148;) of the obligations of Tenant under </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always">this Lease, (ii) release Tenant of any direct and primary obligations to Landlord under this Lease, or (iii) alter the primary liability of Tenant for the payment of Rent or the performance of any other obligations to be performed by Tenant under this Lease. &nbsp;Landlord may accept any Rent or performance of Tenant&#146;s obligations from any person other than Tenant pending approval or disapproval of a request for Landlord&#146;s consent to an assignment or sublease. &nbsp;Any delay in the approval or disapproval of such assignment or sublease or acceptance of any Rent or performance shall not constitute a waiver or estoppel of Landlord&#146;s right to exercise its remedies for any Event of Default.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 18.03 Subsequent Transfers</U>. &nbsp;The consent of Landlord to any assignment of Tenant&#146;s interest in this Lease or sublease of the Leased Premises shall not constitute consent of Landlord to any subsequent assignment or subletting by Tenant or to any subsequent or successive assignment or subletting. &nbsp;Landlord may consent to subsequent assignments or subleases without notifying Tenant or anyone else liable under this Lease or obtaining their consent, and such action shall not relieve such persons from any liability under this Lease. &nbsp;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 18.04 Requests for Consent to Transfer</U>. &nbsp;Each request for consent to a Transfer shall be in writing, accompanied by information relevant to Landlord&#146;s determination as to the financial and operational responsibility and appropriateness of the proposed Transferee, including but not limited to the intended use and/or required modification of the Leased Premises, if any, together with a non refundable deposit of $1,000, as reasonable consideration for Landlord&#146;s consideration and processing of the request for consent. &nbsp;Tenant agrees to provide Landlord with such other or additional information and/or documentation as may be reasonably requested by Landlord. &nbsp;The proposed Transfer shall be subject to the prior written consent of Landlord, which consent will not be unreasonably withheld but, without limiting the generality of the foregoing, it shall be reasonable for Landlord to deny such consen
t if: (i) the use to be made of the Leased Premises by the proposed Transferee is (a) not generally consistent with the character and nature of the Leased Premises, or (b) a use which would be prohibited by any other portion of this Lease or is otherwise unlawful, illegal or a nuisance; (ii) the creditworthiness and operating experience of the proposed Transferee and its parent entity is not reasonably satisfactory to Landlord; or (iii) the proposed Transferee is either a governmental agency or instrumentality thereof.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 18.05 Restrictions Reasonable</U>. &nbsp;Landlord and Tenant hereby agree that the restrictions on assignment and subletting contained in this Lease are reasonable, pursuant to California Civil Code Section 1995.250 </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>ESTOPPEL CERTIFICATES</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 19.01 Estoppel Certificates</U>. Within ten (10) business days after request by Landlord or Tenant, Landlord or Tenant, as the case will be, will deliver an estoppel certificate duly executed (and acknowledged, if required by any mortgagee), to any proposed mortgagee, or purchaser, (a)&nbsp;certifying that this Lease is unmodified and in full force and effect (or if there have been modifications, that it is in full force and effect as modified and stating the modifications), (b)&nbsp;certifying the dates to which Base Rent, </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always">additional rent and other charges have been paid in advance, if any, (c)&nbsp;confirming the Possession Date, the Lease Commencement Date and the expiration date of this Lease, (d)&nbsp;certifying that Tenant is in occupancy of the Leased Premises, (e)&nbsp; stating whether or not, to the best knowledge of the respective party, none of Landlord, Parent or Tenant is in default in the performance of any covenant, agreement or condition contained in this Lease and, if so, specifying each such default of which Landlord, Parent or Tenant, as applicable, may have knowledge, and (f)&nbsp;such other matters as the requesting party may reasonably request. Tenant&#146;s failure to deliver this statement in that time period will be an Event of Default under this Lease and it will be conclusive on Landlord or Tenant that </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(a) this Lease is in full force and effect, without modification except as may be represented by Landlord or Tenant; </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(b) except for the failure to provide an estoppel certificate, there are no uncured defaults in Landlord&#146;s or Tenant&#146;s performance; and </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(c) no Rent payments are in arrears. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>ATTORNMENT</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 20.01 Attornment</U>. In the event of a foreclosure proceeding, the exercise of the power of sale under any mortgage or deed of trust or the termination of a ground Lease, (i) no person which, as a result of any of the foregoing, has succeeded to the interest of Landlord in this Lease and none of the successors or assigns of such person (any such person, and his or its successors and assigns, being hereinafter called a &#147;<U>Successor</U>&#148;) shall be liable for any default by Landlord or any other matter which occurred prior to the date such Successor succeeded to Landlord&#146;s interest in this Lease nor shall such Successor be bound by or subject to any offsets or defenses which Tenant may have against any predecessor in interest of such Successor; (ii) Tenant will, if requested, attorn to the Successor and recognize that Successor as &#147;Landlord&#148; under this Lease (provided that such Successor shall a
gree not to disturb Tenant&#146;s occupancy so long as there in no uncured Event of Default hereunder, on a form customarily used by, or otherwise reasonably acceptable to, such Successor) and Tenant shall execute and deliver such instruments as may be necessary or appropriate to evidence such attornment within fifteen (15) days after receipt of a written request to do so; and (iii) no Successor shall be bound to recognize any prepayment by more than thirty (30) days of any Rent or other sum payable hereunder or any amendment or modification of this Lease made without the consent of the then current Successor if required under the mortgage held by such Successor. &nbsp;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>SUBORDINATION</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 21.01 Subordination to Liens</U>. This Lease is subject and subordinate to the lien of all mortgages and deeds of trust currently now or hereafter affecting the Leased Premises or Landlord&#146;s interest and to renewals, modifications, refinancings and extensions thereof, without the necessity of Tenant&#146;s executing further instruments to effect the subordination. &nbsp;This clause shall be self-operative and upon written request from </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always">Landlord, Tenant shall execute a subordination agreement acceptable to Landlord in favor of Landlord&#146;s mortgagee. &nbsp;In lieu of having a mortgage be superior to this Lease, Landlord&#146;s mortgagee shall have the right at any time to subordinate its mortgage to this Lease.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>ENTRY</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 22.01 Entry</U>. Landlord reserves the right for itself and its duly authorized representatives to enter the Leased Premises upon reasonable notice to Tenant (except in case of an emergency, in which case no notice would be required) to inspect the Leased Premises or the performance by Tenant of the terms and conditions of this Lease and to show them to prospective purchasers or mortgagees of the Premises, and, during the last nine (9) months of the Term, show the Leased Premises to prospective tenants. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>SIGNS</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 23.01 Signage</U>. Tenant may erect or cause to be erected any signs relating to the Tenant&#146;s business on the Leased Premises, provided the signage: </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(a) conforms to all applicable zoning or other municipal requirements; and </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">(b) is in conformance to the rules and regulations of the Landlord, as from time published by Landlord.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt">Any signage installed by Tenant shall be removed at Tenant&#146;s sole cost and expense within ten (10) days of the expiration or earlier termination of this Lease or Tenant&#146;s right to possession of the Premises and Tenant, at its sole cost and expense, shall restore the area in which the signage was installed to the condition it was in prior to installation, ordinary wear and tear excepted. &nbsp;Such signage shall be subject to Landlord&#146;s approval and shall be installed at Tenant&#146;s sole cost and expense and shall be maintained at Tenant&#146;s sole cost and expense.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>LATE CHARGES AND INTEREST</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 24.01 Late Charges</U>. The late payment of any Rent or any other sums due and payable hereunder will cause Landlord to incur additional costs, including administration and collection costs, processing and accounting expenses, and increased debt service. &nbsp;If Landlord has not received any installment of Rent or any other sums due and payable hereunder within fifteen (15) days after that amount is due, Tenant must pay three percent (3%) of the delinquent amount, which is agreed to represent a reasonable estimate of the cost incurred by Landlord. In addition, all delinquent amounts will bear interest from the date the amount was due until paid in full at the rate of eight percent (8%) per year. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>ENTIRE AGREEMENT</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 25.01 Entire Agreement</U>. This Lease and the Project Agreement set forth all the agreements between Landlord and Tenant concerning the Leased Premises, and there are no other agreements, either oral or written, other than as set forth in this Lease and the </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always">Project Agreement. &nbsp;This Lease may not be modified or amended except pursuant to an instrument in writing signed by the parties hereto.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>AS-IS NATURE OF LEASED PREMISES</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 26.01 No Representations or Warranties</U>. &nbsp;Tenant hereby acknowledges that, except as otherwise expressly set forth in this Lease or the Project Agreement, Landlord has made and makes no representations or warranties of any kind or nature, express or implied, with respect to the Leased Premises, including, but not limited to, any representations or warranties concerning (i) the development or investment potential of the Leased Premises, (ii) the habitability or merchantability of the Leased Premises or the suitability of the Leased Premises for any particular purpose, (iii) the zoning of the Leased Premises or any other restriction on use of the Leased Premises, (iv) the compliance of the Leased Premises with any applicable Legal Requirements, (v) the physical condition of the Leased Premises, including but not limited to soils, subsoils and groundwater, (vi) the presence, storage, release, disposal, migration, 
transportation, mitigation, remediation, investigation, testing and/or removal of Hazardous Materials in, on, under, to or from the Leased Premises, or (vii) the accuracy or completeness of third-party documents, reports, analysis, studies or materials commissioned or obtained by Landlord or Tenant with respect to the Leased Premises.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 26.02 Disclaimer of Warranties</U>. &nbsp;Except for the representations, warranties, covenants and agreements of Landlord set forth in this Lease and the Project Agreement, Landlord hereby expressly disclaims (i) all warranties of habitability, merchantability and suitability for a particular purpose, (ii) any warranties implied or arising from a course of dealing or usage of trade, and (iii) any warranties that the Leased Premises now or in the future will comply with any applicable Legal Requirements.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 26.02 &#147;As-Is&#148; Clause</U>. &nbsp;The transaction contemplated by this Lease has been negotiated between Tenant and Landlord, and this Lease reflects the mutual agreement of Tenant and Landlord. &nbsp;Tenant has had an opportunity to conduct all review, inquiries, analyses, audits, tests, studies, analyses, investigations and inspections with respect to the Leased Premises that Tenant deemed necessary or desirable (collectively, &#147;Inspections&#148;), including but not limited to Inspections with respect to the physical condition of the Leased Premises, the existing entitlements for the Leased Premises, the presence of Hazardous Materials in, on, under or around the Leased Premises and all other matters related to the Leased Premises (collectively, the &#147;Feasibility Review&#148;), or Tenant elected at its own risk not to conduct such Feasibility Review of the Leased Premises, and, except for the represen
tations, warranties, covenants and agreements of Landlord set forth in this Lease or the Project Agreement, Tenant shall rely solely on Tenant&#146;s own judgment, knowledge and expertise in determining whether to enter into this Lease or lease the Leased Premises. &nbsp;Subject to the representations, warranties, covenants and agreements of Landlord set forth in this Lease and the Project Agreement, Tenant shall enter into this Lease and lease the Leased Premises, &#147;as-is&#148; with all faults and conditions, including but not limited to any patent or latent defects or conditions existing with respect to the Leased Premises and any Hazardous Materials that may be located in, on, under or around the Leased Premises. &nbsp;Except for the representations, warranties, covenants and </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always">agreements of Landlord expressly set forth in this Lease and the Project Agreement, Tenant hereby assumes all risk and liability resulting or arising from or relating to the entry into, use, operation, occupancy, possession, maintenance and development of the Leased Premises, including but not limited to all risk and liability resulting or arising from or relating to any Hazardous Materials that may be located in, on, under or around the Leased Premises.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>TIME OF ESSENCE</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 27.01 Time</U>. Time is of the essence in this Lease. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>ATTORNEY FEES</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 28.01 Attorney&#146;s Fees</U>. In any action that either party brings to enforce its rights under this Lease, the prevailing party shall be entitled to all of its costs plus reasonable attorney fees to be fixed by the court. Those costs and attorney fees will be considered a part of the judgment in that action. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>SEVERABLE</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 29.01 Severable</U>. Any term or provision of this Lease that is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction. &nbsp;If the final judgment of a court of competent jurisdiction or other authority declares that any term or provision hereof is invalid, void or unenforceable, the parties agree that the court making such determination shall have the power to reduce the scope, duration, area or applicability of the term or provision, to delete specific words or phrases, or to replace any invalid, void or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing 
the intention of the invalid or unenforceable term or provision.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>GOVERNING LAW</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 30.01 Governing Law</U>. This Lease will be construed and enforced in accordance with the laws of the State of California, County of Stanislaus. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>SUCCESSORS AND ASSIGNS</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 31.01 Successors</U>. This Lease will be binding on and inure to the benefit of the successors and assigns of Landlord and Tenant, their heirs and court appointed representative. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>ENTIRE AGREEMENT; NO THIRD-PARTY BENEFICIARIES</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 32.01 Entire Agreement; No Third Party Beneficiaries</U>. This Lease (including the documents and the instruments referred to herein) and the Project Agreement: &nbsp;(a) </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always">constitute the entire agreement between the parties and supersede all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof, and (b) are not intended to confer upon any Person other than the parties hereto and thereto any rights or remedies hereunder.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>RECORDATION</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 33.01 Memorandum of Lease</U>. Tenant shall not record this Lease, any memorandum of this Lease, nor any other document which will or may create a cloud on title to any portion of the property of which the Leased Premises are a part, and any attempt to record or file same by Tenant shall be deemed a default by it hereunder. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>NO AGENCY, PARTNERSHIP, OR JOINT VENTURE</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 34.01 No Agency, Etc</U>. Nothing contained in this Lease will be deemed or construed by the parties, or by any third party, as creating the relationship of principal and agent, partnership, or joint venture by the parties. It is understood and agreed that no provision contained in this Lease or any acts of the parties will be deemed to create any relationship other than the relationship of landlord and tenant. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>NO MERGER</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 35.01 No Merger</U>. The voluntary or other surrender of this Lease by Tenant or a mutual cancellation of this Lease or a termination by Landlord will not work a merger and will, at the option of Landlord, terminate all of any existing subtenancies or may, at the option of Landlord, operate as an assignment to Landlord of any subtenancies. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>NO WAIVER</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 36.01 No Waiver</U>. No waiver of any default or breach under this Lease will be implied from any omission to take action on account of this Lease, regardless of any custom and practice or course of dealing. No waiver will affect any default other than the default specified in the waiver, and then the waiver will be operative only for the time and to the extent stated in this Lease. Waivers of any covenant will not be construed as a waiver of any subsequent breach of the same covenant. No waiver by either party of any provision under this Lease will be effective unless in writing and signed by that party. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>NOTICES</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 37.01 Notices</U>. All notices to be given under this Lease will be in writing and mailed, postage prepaid, by certified or registered mail, return receipt requested, or delivered by personal or courier delivery, or sent by telecopy (immediately followed by one of the preceding methods), to Landlord&#146;s Address and Tenant&#146;s Address, or to any other place that Landlord or Tenant may designate in a written notice given to the other party. Notices will be deemed served on the earlier of receipt or three (3) days after the date of mailing. Notices to Landlord shall be sent to 31120 West Street, P.O. Box 1029, Goshen, CA 93227 (&#147;<U>Landlord&#146;s Address</U>&#148;). &nbsp;Notices to Tenant shall be sent to 20400 Stevens Creek Blvd., Suite 700, Cupertino, CA 95014 (&#147;<U>Tenant&#146;s Address</U>&#148;). &nbsp;When this </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always">Lease requires service of a notice, that notice shall replace rather than supplement any equivalent or similar statutory notice, including any notices required by California Code of Civil Procedure Section 1161 or any similar or successor statute. &nbsp;When a statute requires service of a notice in a particular manner, service of that notice (or a similar notice required by this Lease) in the manner required by this paragraph shall replace and satisfy the statutory service-of-notice procedures, including those required by California Code of Civil Procedure Section 1162 or any similar or successor statute.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>REPRESENTATIONS AND WARRANTIES</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 38.01 Authority</U>. &nbsp;Each party warrants that it has full power, authority and legal right to execute and deliver this Lease, and to keep and observe all of the terms and provisions of this Lease on such party&#146;s part to be observed and performed. &nbsp;Each individual executing this Lease on behalf of Landlord and Tenant represents and warrants that she or he is duly authorized to execute and deliver this Lease on behalf of Landlord and Tenant and that the execution is binding upon Landlord and Tenant. &nbsp;Each party hereby represents and warrants to the other party that it is a corporation, duly organized and existing in the State of Delaware. &nbsp;The performance by each party of their obligations and responsibilities under this Lease will not violate or constitute a default under the terms and provisions of such party&#146;s bylaws or any material agreement, document or instrument to which such party i
s a party or by which such party is bound or affected. &nbsp;All proceedings required to be taken by or on behalf of each party to authorize such party to execute, deliver and perform the terms and conditions of this Lease have been duly and properly taken. &nbsp;No further consent of any person or entity is required in connection with the execution and delivery of, or performance by each party of its obligations under this Lease.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 38.02 Enforceability</U>. &nbsp;This Lease constitutes or shall constitute the valid and binding obligation of each party, enforceable against it in accordance with its terms, except as such enforcement may be limited by (a) the effect of bankruptcy, insolvency, reorganization, receivership, conservatorship, arrangement, moratorium or other applicable Legal Requirements affecting or relating to the rights of creditors generally, or (b) the rules governing the availability of specific performance, injunctive relief or other equitable remedies and general principles of equity, regardless of whether considered in a proceeding in equity or at law.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 38.03 Litigation</U>. &nbsp;There are no judgments, orders, suits, actions, garnishments, attachments or proceedings of any nature by or before any court, commission, board or other governmental body pending, or, to the knowledge of the parties, threatened, which involve or affect, or will involve or affect the validity or enforceability of this Lease or involve any risk of any judgment or liability being imposed upon such party that could materially adversely affect such party&#146;s ability to observe or perform fully its agreements and obligations hereunder.</P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always" align=center><B>HOLDING OVER</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 39.01 Holding Over</U>. &nbsp;If Tenant fails to surrender possession of the Leased Premises or any part of the Leased Premises after the expiration or earlier termination of this Lease, the holding over will constitute a month-to-month tenancy, at a rent equal to the Base Rent in effect immediately prior to the holding over plus twenty-five percent (25%) and Tenant shall be subject to and shall perform all its agreements and obligations under this Lease. &nbsp;This paragraph will not be construed as Landlord&#146;s permission for Tenant to hold over. Acceptance of Rent by Landlord following expiration or termination shall not constitute a renewal of this Lease. &nbsp;In addition to the payment of the amounts provided above, if Landlord is unable to deliver possession of the Leased Premises to a new tenant, or to perform improvements for a new tenant, as a result of Tenant&#146;s hold-over, Tenant shall be liable to La
ndlord for all damages that Landlord suffers from the hold-over. &nbsp;In addition, Tenant shall save Landlord, its agents and employees, harmless and will exonerate, defend and indemnify Landlord, its agents and employees, from and against any and all damages which Landlord may suffer on account of Tenant&#146;s hold-over in the Leased Premises after the expiration or earlier termination of this Lease.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>TITLE TO LEASED PROPERTY</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 40.01 No Acquired Rights</U>. Tenant&#146;s use and occupancy of the Leased Premises shall not convey to Tenant any title or right in the fee interest in the Leased Premises, and Tenant agrees not to make any claim of right or title to or assail Landlord&#146;s fee title to the Leased Premises. &nbsp;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 41.02 No Subordination of Fee Interest</U>. &nbsp;Landlord&#146;s fee interest in the Leased Premises shall at all times be senior and prior to the interests of Tenant and any other third party now or hereinafter obtaining a security interest in Tenant&#146;s leasehold interest. &nbsp;Under no circumstances shall Landlord have any obligation to subordinate its fee interest to the interests or reversionary rights in whole or in part of any third party.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>LIMITATION OF LANDLORD&#146;S LIABILITY</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 42.01 Limitation of Landlord&#146;s Liability</U>. The obligations of Landlord under this Lease do not constitute personal obligations of the individual partners, directors, officers, or shareholders of Landlord, and Tenant shall look solely to the real estate that is the subject of this Lease and to no other assets or property of the Landlord for satisfaction of any liability in respect of this Lease and shall not seek recourse against any other property of Landlord, or against the individual partners, directors, officers or shareholders of Landlord or any of their personal assets for such satisfaction. &nbsp;In no event shall any Landlord Party be liable to Tenant for any special, punitive, incidental, indirect or consequential damages arising out of or in connection with this Lease, however caused, whether arising in contract, tort (including negligence), strict liability, or otherwise.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>SURRENDER</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 43.01 Surrender</U>. Upon the expiration or earlier termination of this Lease or Tenant&#146;s right to possession of the Leased Premises, Tenant will surrender the Leased </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always">Premises to Landlord in broom clean, and in good order, condition and repair, ordinary wear and tear excepted. &nbsp;If Tenant fails to remove any of Tenant&#146;s property within ten (10) days after the termination of this Lease or of Tenant&#146;s right to possession, Landlord, at Tenant&#146;s sole cost and expense, shall be entitled (but not obligated) to remove and store Tenant&#146;s property without liability to Landlord. &nbsp;Landlord shall not be responsible for the value, preservation or safekeeping of Tenant&#146;s property. &nbsp;Tenant shall pay Landlord, upon demand, the expenses and storage charges incurred for Tenant&#146;s property. &nbsp;In addition, if Tenant fails to remove Tenant&#146;s property from the Leased Premises or storage, as the case may be, within thirty (30) days after written notice, Landlord may deem all or any part of Tenant&#146;s property to be abandoned, and title 
to Tenant&#146;s property shall be deemed to be immediately vested in Landlord. &nbsp;</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>SURVIVAL</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 44.01 Survival</U>. All agreements and obligations of Tenant hereunder which require observance or performance after the expiration or termination of this Lease, or which can not reasonably be ascertained as having been observed or performed at the time of such expiration or termination, shall survive, and be enforceable against Tenant following, such expiration or termination. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>BROKERS</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 45.01 Brokers</U>. Landlord and Tenant each represent and warrant to the other that it has had no dealings with any person, firm, broker or finder in connection with the negotiation of this Lease or the consummation of the transactions contemplated hereby, and that no broker or other person, firm or entity is entitled to any commission or finder&#146;s fee in connection with said transactions. &nbsp;Each party shall indemnify, protect, defend and hold the other party harmless from and against any claims which may be asserted by any such unnamed broker, finder or other similar party by reason of any dealings or actions of the indemnifying party. &nbsp;This indemnification shall survive the expiration or earlier termination of this Lease.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>FURTHER ASSURANCES</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 46.01 Further Assurances</U>. Landlord and Tenant shall promptly sign all further commercially reasonable documents necessary to accomplish the intent of this Lease.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>CALIFORNIA CIVIL CODE WAIVER</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 47.01 California Civil Code Waiver</U>. &nbsp;Tenant waives the provisions of California Civil Code Sections 1932(2) and 1933(4) with respect to the destruction of the Leased Premises, California Civil Code Sections 1941 and 1942 with respect to Landlord&#146;s repair duties and Tenant&#146;s right to repair, and California Code of Civil Procedure Section 1265.130, allowing either party to petition the Superior Court to terminate this Lease in the event of a partial taking of the Leased Premises by condemnation as herein defined, and any right of redemption or reinstatement of Tenant under any present or future case law or statutory provision (including California Code of Civil Procedure Sections 473 and 1179 and California Civil Code Section 3275) in the event Tenant is dispossessed </P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt; page-break-before:always">from the Leased Premises for any reason. &nbsp;This waiver applies to future statutes enacted in addition or in substitution of the statutes specified herein.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>COUNTERPARTS</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 48.01 Counterparts</U>. This Lease may be executed in one or more counterparts, each of which shall be considered one and the same Lease and shall become effective when two or more counterparts have been signed by each of the parties and delivered to the other parties.</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>NO OFFER</B></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><U>Section 49.01 No Offer</U>. Submission of this instrument for examination or signature by Tenant does not constitute a reservation of the Leased Premises, an offer, or an option for a lease, and it is not effective as a lease or otherwise until execution by and delivery to both Landlord and Tenant. </P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center>[signatures appear on following page]</P>
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<P style="line-height:14pt; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt; page-break-before:always">IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and year first above written.</P>
<P style="line-height:14pt; margin:0px; font-size:12pt"><U>LANDLORD</U>:</P>
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<P style="line-height:14pt; margin:0px; font-size:12pt">Cilion, Inc.,</P>
<P style="line-height:14pt; margin:0px; font-size:12pt">a Delaware corporation</P>
<P style="margin:0px"><BR></P>
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<P style="line-height:14pt; margin:0px; font-size:12pt">_______<U>/S/ Kevin H. Kruse</U>________</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-right:252px; font-size:12pt">By:</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; padding-right:252px; text-indent:48px; font-size:12pt">Kevin H. Kruse<BR>
Title:</P>
<P style="line-height:14pt; margin:0px; padding-right:252px; text-indent:48px; font-size:12pt">Chairman and Chief Executive Officer</P>
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<P style="line-height:14pt; margin:0px; padding-right:288px; font-size:12pt"><U>TENANT</U>:</P>
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<P style="line-height:14pt; margin:0px; font-size:12pt">AE Advanced Fuels Keyes, Inc., </P>
<P style="line-height:14pt; margin:0px; font-size:12pt">a Delaware corporation</P>
<P style="margin:0px"><BR></P>
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<P style="line-height:14pt; margin:0px; font-size:12pt">______<U>/S/ Eric A. McAfee</U>_________</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">By: </P>
<P style="line-height:14pt; margin:0px; text-indent:48px; font-size:12pt">Eric A. McAfee</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">Title:</P>
<P style="line-height:14pt; margin:0px; text-indent:48px; font-size:12pt">Chairman and Chief Executive Officer</P>
<P style="margin:0px"><BR></P>
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<P style="line-height:14pt; margin:0px; padding-right:288px; font-size:12pt"><U>PARENT</U>:</P>
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<P style="line-height:14pt; margin:0px; font-size:12pt">AE Biofuels, Inc., </P>
<P style="line-height:14pt; margin:0px; font-size:12pt">a Nevada corporation</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt">__________<U>/S/ Eric A. McAfee</U>____</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">By: </P>
<P style="line-height:14pt; margin:0px; text-indent:48px; font-size:12pt">Eric A. McAfee</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">Title:</P>
<P style="line-height:14pt; margin:0px; text-indent:48px; font-size:12pt">Chairman and Chief Executive Officer</P>
<P style="margin:0px"><BR></P>
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<P style="line-height:14pt; margin:0px; padding-right:288px; font-size:12pt"><U>PARENT SUB</U>:</P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt">AE Advanced Fuels, Inc., </P>
<P style="line-height:14pt; margin:0px; font-size:12pt">a Delaware corporation</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt">__________<U>/S/ Eric A. McAfee </U>__</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">By: </P>
<P style="line-height:14pt; margin:0px; text-indent:48px; font-size:12pt">Eric A. McAfee</P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">Title:</P>
<P style="line-height:14pt; margin:0px; text-indent:48px; font-size:12pt">Chairman and Chief Executive Officer</P>
<P style="margin:0px"><BR>
<BR></P>
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