Document:

peix_8kex10-5.htm

    Exhibit
10.5

    Pacific
Ethanol, Inc.

     

    FIRST
AMENDMENT TO

    AMENDED
AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT

    for

    ___________________

     

    This
First Amendment to the Amended and Restated Executive Employment Agreement (the
“Amendment”)
is hereby entered into by and between ________________ (“Executive”)
and Pacific Ethanol, Inc. (the “Company”)
(collectively, the “Parties”)
is effective as of December 30, 2008, and amends the Amended and Restated
Executive Employment Agreement between the Parties dated December 14, 2007 (the
“Employment
Agreement”).

     

    Whereas,
the Parties wish to amend the  Employment Agreement, in order to come
into compliance with Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”),
and the regulations and other guidance thereunder and any state law of similar
effect (collectively “Section
409A”), as set forth below.

     

    Now,
Therefore, in consideration of the mutual promises and covenants
contained herein, it is hereby agreed by and between the parties hereto as
follows:

     

    Agreement

     

    The Parties, intending to be legally
bound, agree as follows effective as of the Effective Date:

     

    1. Amendment
of Employment Agreement

     

    1.1 Section 5.4(b) of the Employment
Agreement.  The first sentence of Section 5.4(b) of the
Employment Agreement is hereby amended to read as follows:

     

    “(b)           Disability.   If
Executive is prevented from performing his duties as described in Section 1.1 of
this Agreement by reason of any physical or mental incapacity that results in
Executive’s satisfaction of all requirements necessary to receive benefits under
the Company’s long-term disability plan due to a total disability, then, to the
extent permitted by law, the Company may terminate the employment of Executive
and this Agreement at or after such time.”

    

    1.2 Section 5.5 of the Employment
Agreement. Section 5.5 of the Employment Agreement is hereby amended and
restated in its entirety as follows:

     

    “5.5           Deferred
Compensation.  Notwithstanding anything to the contrary set
forth herein, any payments and benefits provided under this Agreement (the
“Severance
Benefits”) that constitute “deferred compensation” within the meaning of
Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and
the regulations and other guidance thereunder and any state law of similar
effect (collectively “Section
409A”) shall not commence in connection with Executive’s termination of
employment unless and until Executive has also incurred a “separation from
service” (as such term is defined in Treasury Regulation Section 1.409A-1(h)
(“Separation From
Service”), unless the Company reasonably determines that such amounts may
be provided to Executive without causing Executive to incur the additional 20%
tax under Section 409A.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    It is
intended that each installment of the Severance Benefits payments provided for
in this Agreement is a separate “payment” for purposes of Treasury Regulation
Section 1.409A-2(b)(2)(i).  For the avoidance of doubt, it is intended
that payments of the Severance Benefits set forth in this Agreement satisfy, to
the greatest extent possible, the exemptions from the application of Section
409A provided under Treasury Regulation Sections 1.409A-1(b)(4), 1.409A-1(b)(5)
and 1.409A-1(b)(9).

    

    If
Executive is a “specified employee” within the meaning of 409A(a)(2)(B)(i) of
the Code, any Severance Benefit payments that are triggered by a separation from
service shall be accelerated to the minimum extent necessary so that (a) the
lesser of (y) the total cash severance payment amount, or (z) six (6) months of
such installment payments are paid no later than March 15 of the calendar year
following such termination, and (b) all amounts paid pursuant to the foregoing
clause (a) will constitute separate payments for purposes of Section
1.409A-2(b)(2) of the Treasury Regulations and thus will be payable pursuant to
the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the
Treasury Regulations.  It is intended that if Executive is a
“specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code
at the time of such separation from service the foregoing provision shall result
in compliance with the requirements of Section 409A(a)(2)(B)(i) of the Code
since payments to Executive will either be payable pursuant to the “short-term
deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations
or will not be paid until at least 6 months after separation from
service.

    

    Notwithstanding
any other payment schedule set forth in this Agreement, none of the Severance
Benefits will be paid or otherwise delivered prior to the effective date of the
Separation Date Release of all claims set forth as Exhibit B
hereto.  On the first regular payroll pay day following the effective
date of the Separation Date Release of all claims, the Company will pay
Executive the Severance Benefits Executive would otherwise have received under
the Agreement on or prior to such date but for the delay in payment related to
the effectiveness of the release of claims, with the balance of the Severance
Benefits being paid as originally scheduled.  All amounts payable
under the Agreement will be subject to standard payroll taxes and
deductions.”

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    1.3 Section 5.6 of the Employment
Agreement.  The first paragraph of Section 5.6 of the
Employment Agreement is hereby amended and restated in its entirety as
follows:

     

    “5.6           Limitation on
Payments.  In the event that the payments or other benefits
provided for in this Agreement or otherwise payable to Executive (i) constitute
“parachute payments” within the meaning of Section 280G of the Code, and (ii)
would be subject to the excise tax imposed by Section 4999 of the Code (the
“Excise Tax”), then Executive’s benefits under this Agreement shall be either
(a) delivered in full, or (b) delivered to such lesser extent which would result
in no portion of such benefits being subject to the Excise Tax, whichever of the
foregoing amounts, taking into account the applicable federal, state and local
income taxes and the Excise Tax, results in the receipt by Executive on an
after-tax basis, of the greatest amount of benefits, notwithstanding that all or
some portion of such benefits may be taxable under Section 4999 of the
Code.  If a reduction in payments or benefits constituting “parachute
payments” is necessary pursuant to the foregoing provision, reduction shall
occur in the following order: reduction of cash payments; cancellation of
accelerated vesting of stock awards; reduction of employee
benefits.  If acceleration of vesting of stock award compensation is
to be reduced, such acceleration of vesting shall be cancelled in the reverse
order of the date of grant of the Executive’s stock awards.”

     

    2. Miscellaneous
Provisions.

     

    2.1 Original
Agreement.  The Employment Agreement, as amended by this
Amendment, shall continue in full force and effect after the date
hereof.

     

    2.2 Whole Agreement.  No
agreements, representations or understandings (whether oral or written and
whether express or implied) which are not expressly set forth in the Employment
Agreement, as amended by this Amendment, have been made or entered into by
either party with respect to the subject matter of this Amendment.

     

    2.3 Counterparts.  This
Amendment may be executed in separate counterparts, any one of which need not
contain signatures of more than one party, but all of which taken together will
constitute one and the same Amendment.

     

    2.4 Headings.  The
headings of the sections hereof are inserted for convenience only and shall not
be deemed to constitute a part hereof nor to affect the meaning
thereof.

     

    2.5 Choice of Law.  All
questions concerning the construction, validity and interpretation of this
Amendment will be governed by the law of the State of California.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    In Witness
Whereof, each of the Parties has executed this Amendment, in the case of
the Company by its duly authorized representative, effective as of the day and
year first above written.

     

    In Witness
Whereof, the parties have executed this Amendment.

     

    
      
        	 	Pacific
      Ethanol, Inc.	 
	 	 	 	 
	
                 

              	
                By:
      

              	 	 
	 	 	The
      Head of the Board’s Compensation Committee	 
	 	 	 	 
	 	Date: 	December
      30, 2008	 

      

    

     

    
 

     

    Understood
and Agreed:

    

    Executive

    

    

    

     

    
      	By:	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Date:	December 30,
      2008	 	 

    

     

     

    4mni8kmiami.htm

    THIRD
AMENDMENT TO CONTRACT FOR PURCHASE

    AND SALE OF REAL
PROPERTY

    

    

    This
Third Amendment to Contract for Purchase and Sale of Real Property (the "Third
Amendment") is made and entered into as of the 30th day of
December, 2008, by and between RICHWOOD, INC., a Florida corporation
(“Richwood”) and The McClatchy Company, a Delaware corporation
(“McClatchy”, and together with Richwood, hereinafter collectively referred to
as the "Seller"), and CITISQUARE GROUP, LLC, a Florida
limited liability company (the "Buyer").

    

    

    W
I T N E S S E T H:

    

    

               WHEREAS, Richwood, Miami
Herald Publishing Company, a Florida corporation (“MHPC”) and Knight-Ridder,
Inc., a Florida corporation (collectively, the “Original Sellers”), and Buyer
entered into that certain Contract for Purchase and Sale of Real Property
effective as of March 3, 2005 as amended by that certain First Amendment (the
"First Amendment") dated August 10, 2007 and as further amended by that certain
Second Amendment (the “Second Amendment”) dated December 20, 2007 (said contract
as modified by the First Amendment and the Second Amendment being herein called
the “ Existing Contract”, and as further modified by this Third Amendment being
herein called the “Amended Contract”) pursuant to which Original Sellers agreed
to sell to Buyer and Buyer agreed to buy from Original Sellers certain real
estate located in Miami-Dade County, Florida as more particularly described
therein (the “Herald Property”); and

    

               WHEREAS, Buyer and Seller have
agreed to modify certain provisions of the Existing Contract on the terms and
conditions set forth herein.

    

               NOW THEREFORE, in
consideration of Ten Dollars ($10.00) and the mutual promises contained herein,
the receipt, sufficiency and adequacy of which is hereby acknowledged, the
parties hereto agree as follows:

    

    
      	
               
      

            	
              1.

            	
              Recitals.

            	
              The
      above recitals are true and correct and incorporated herein by reference
      as if set forth in full.

            

    

    

    
      	
               
      

            	
              2.

            	
              Capitalized
      Terms.

            	
              Any
      capitalized terms herein and not otherwise defined shall have the same
      meanings as described to them in the Existing
  Contract.

            

    

    

    
      	
              3.  

            	
              Seller.   Any
      reference to Sellers in the Existing Contract shall now only refer to
      Richwood and McClatchy.

            

    

    

    
      	
               
      

            	
              4.

            	
              Closing
      Date.   Section 1.2 of the Existing Contract is
      hereby deleted in its entirety, and in lieu thereof, shall be replaced
      with the following:

            

    

    

    
      	
               
      

            	
              “The
      Closing Date shall be June 30, 2009, or such other date provided by this
      Contract.”

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              5.

            	
              Termination
      of Right of First Refusal.  Section
      22.24 of the Existing Contract is hereby deleted in its entirety and Buyer
      shall no longer have a right of first refusal with regard to the Miami
      Herald Building Site.

            

    

    

    
      	
               
      

            	
              6.

            	
              Extension
      of Closing Date.  Buyer may, by written notice to Seller
      ten (10) days prior to the Closing Date, elect to extend the Closing Date
      until no later than December 31, 2009.  If Buyer elects to
      extend the Closing Date, Section 6 of the Second Amendment shall be
      deleted in its entirety, and in lieu thereof, shall be replaced with the
      following:

            

    

    

    
      	
               
      

            	
              “Mark
      Siffin (“Siffin”), who is a principal of one of the development groups
      affiliated with Buyer, by his signature below, agrees that in the event
      Buyer fails to close on the purchase of the Property on or before December
      31, 2009, by reason of Buyer’s default under the Contract, Siffin shall
      pay Seller a termination fee of Six Million Dollars ($6,000,000.00) (the
      “Termination Fee”) within ten (10) days following such failure to
      close.”

            

    

    

    
      	
               
      

            	
              This
      amendment to Section 6 of the Second Amendment shall be self-operative and
      no further agreements or instruments shall be required to be executed and
      delivered by the parties to evidence the
same.

            

    

    

    
      	
               
      

            	
              7.

            	
              Financial
      Statements.  In the event Buyer elects to extend the
      Closing Date pursuant to Paragraph 6 above, then ten (10) days prior to
      the Closing Date, Siffin shall provide Seller with copies of his most
      recent financial statements providing evidence, to Seller’s reasonable
      satisfaction, that Siffin has sufficient net funds or net assets to
      satisfy his obligation to pay the Termination Fee.  If Siffin
      shall fail to timely provide such evidence, then the Closing Date shall
      not be extended past June 30, 2009.Seller agrees that the contents of such
      financial statements shall remain confidential and the sole purpose of
      providing such financial statements is to confirm Siffin’s ability to pay
      the Termination Fee in the event payment is required pursuant to the
      Amended Contract.

            

    

    

    
      	
               
      

            	
              8.

            	
              Parking
      Easement and Parking Lease.

            

    

    

    a.  Section
III of the form Parking Easement attached as Exhibit “H” to the First Amendment
shall be deleted in its entirety and replaced with the following in its
stead:

    

    “Grantor
hereby grants to Grantee, for the use and benefit of Grantee, its employees,
customers, invitees, Permitted Tenants (as hereinafter defined) of the Herald
Property (and any employees, customers or invitees of such Permitted Tenants)
and in the event of a transfer or lease of the Herald Property together with the
business operating thereon (a “Successor Operator”), to such Successor Operator,
and its employees, customers, and invitees, an access easement for (i) vehicular
and pedestrian ingress and egress and (ii) the parking of automobiles and other
standard sized vehicles on, over, across and through the Easement
Area.  As used herein, the term “Permitted Tenant” shall mean any
tenant permitted by Grantee to lease space at the Herald Property, and then in
occupancy of such space, at the Herald Property in accordance with the terms and
conditions contained herein, including, without limitation, Section VI
hereof.  Notwithstanding the foregoing, Permitted Tenant shall be
permitted to change the use of any space occupied by such Permitted Tenant at
the Herald Property, so long as the use of at least 51% of the total
improvements located on the Herald Property remains unchanged and so long as no
portion of the improvements is being used for retail purposes (other than retail
purposes ancillary to the current use of the improvements).”

    

    b.  Section
1.05 of the Form of Parking Lease attached as Exhibit “I” to the First Amendment
shall be deleted in its entirety and replaced with the following language in its
stead:

    

    “The
Parking Spaces or the Leased Premises shall be used exclusively by Tenant, its
employees, customers, invitees, Permitted Tenants (as hereinafter defined) of
the Herald Property (and any employees, customers or invitees of such Permitted
Tenants), and in the event of a transfer or lease of the Herald Property by
Tenant, together with the business operating thereon (a “Successor Operator”) by
such Successor Operator and its employees, customers and invitees.  As
used herein, the term “Permitted Tenant” shall mean any tenant permitted by
Tenant to lease space, and then in occupancy of such space, at the Herald
Property in accordance with the terms and conditions contained herein,
including, without limitation, Section 2.02 hereof.  Notwithstanding
the foregoing, Permitted Tenant shall be permitted to change the use of any
space occupied by such Permitted Tenant at the Herald Property, so long as the
use of at least 51% of the total improvements located on the Herald Property
remains unchanged and so long as no portion of the improvements is being used
for retail purposes (other than retail purposes ancillary to the current use of
the improvements).”

    

    c.  Section
7.01 of the form of Parking Lease attached as Exhibit “I” to the First Amendment
shall be deleted in its entirety and replaced with the following language in its
stead:

    

    “Except
as provided in Section 1.05, Tenant shall not assign, sublease, mortgage or
transfer this Lease.  Notwithstanding the foregoing, however, Tenant
shall have the right to sublease to any Permitted Tenant (and any employees,
customers or invitees of such Permitted Tenant) of the Herald Property, or allow
any Permitted Tenant (and any employees, customers or invitees of such Permitted
Tenant) of the Herald Property to use or occupy, a percentage of the Parking
Spaces without the written consent of Landlord, so long as any rights given to
Permitted Tenant shall be no greater than the rights granted to Tenant under
this Lease.”

    

    
      	
               
      

            	
              9.

            	
              Claim
      of Lien.  Seller
      has been provided notice as of October 10, 2008 that a claim of lien had
      been filed against all or a portion of the Property by Cooper Cary, Inc.
      in the Official Records of Miami-Dade County, Florida (the “Claim of
      Lien”), a copy of which is attached hereto as Exhibit “A”.  This
      Claim of Lien reflects amounts allegedly owed to Cooper Cary, Inc. for
      architectural services provided pursuant to a contract with Maefield
      Development and Maefield Holdings, LLC, for a total value of approximately
      $406,009.68 of which over $400,000 remains unpaid.  Buyer hereby
      agrees to diligently contest the Claim of Lien and have the same
      discharged of record.  In the event the Closing does not occur
      as provided herein, Buyer shall be obligated to discharge such Claim of
      Lien prior to termination of the Amended
  Contract.

            

    

    

     

    
      	
              10.

            	
              Time
      of the Essence.  Time is of the essence of the Amended
      Contract.

            

    

     

    

    
      	
               
      

            	
              11.

            	
              No
      Breach of Contract.  Each of Buyer and Seller
      acknowledges and agrees that as of the date hereof, it is not aware of any
      breach of the Amended Contract by the other party, and all notices between
      the parties and their respective counsel exchanged from and after December
      1, 2007, including any claims of breach, through and including the date
      hereof are hereby withdrawn and are of no force or
  effect.

            

    

    

    
      	
               
      

            	
              12.

            	
              Counterparts.  This
      Agreement may be executed in two or more counterparts, each of which shall
      be deemed to be an original, but all of which shall constitute one and the
      same instrument.

            

    

    

    
      	
               
      

            	
              13.

            	
              Ratification.  Except
      as modified hereby, the Existing Contract is hereby ratified and
      confirmed.

            

    

    

    

    

    [NO
FURTHER TEXT ON THIS PAGE]

    

    IN WITNESS WHEREOF, this Third
Amendment to Contract is entered into as of the date first appearing
above.

    

    

    

    

                                                          BUYER:

    CITISQUARE
GROUP, LLC, a Florida limited liability company

    

                                                          By:           /s/Pedro
A. Martin

                                                          Name:    
Pedro A. Martin

                                                          Title:      President

    

    

                                                          SELLER:

    RICHWOOD,
INC., a Florida corporation

    

                                                          By:           /s/Karole
Morgan-Prager

                                                          Name:   
 Karole Morgan-Prager

                                                          Title:      Secretary

    

    THE
McCLATCHY COMPANY., a Delaware corporation

                            By:           /s/Gary
Pruitt

                                                           Name:     
Gary Pruitt

                  
Title:       COB, President &
CEO

    

    SIFFIN (solely
for purpose of confirming his obligations under Paragraph 6 above):

     

    By:/s/Mark
Siffin

    Name: Mark
Siffin, an individual

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