Document:

Exhibit 10.9

 

SECOND AMENDMENT TO SECURITY AGREEMENT

 

This Second Amendment
to Security Agreement (this “Amendment”) is made as of December 18, 2020 by and among PACIFIC ETHANOL CENTRAL,
LLC, a limited liability company organized under the laws of Delaware (“Grantor”), and COBANK, ACB, a federally-chartered
instrumentality of the United States, as Agent (together with its successors and assigns, “Secured Party”)
for the benefit of the Lenders under the PEP Credit Agreement (defined below) and ICP Credit Agreement (defined below).

 

WHEREAS, PACIFIC ETHANOL
PEKIN, LLC, a limited liability company organized under the laws of Delaware and wholly-owned subsidiary of Grantor (“PEP”),
COMPEER FINANCIAL, PCA, a federally-chartered instrumentality of the United States, successor by merger to 1st Farm Credit Services,
PCA, as a Lender, and Secured Party, as Agent, are parties to a Credit Agreement dated as of December 15, 2016 (as amended, restated,
supplemented, or otherwise modified from time to time, the “PEP Credit Agreement”).

 

WHEREAS, ILLINOIS CORN
PROCESSING, LLC, a limited liability company organized under the laws of Delaware and wholly-owned subsidiary of Grantor (“ICP”),
COMPEER FINANCIAL, PCA, a federally-chartered instrumentality of the United States, as a Lender, and Secured Party, as Cash Management
Provider and Agent, are parties to a Credit Agreement dated as of September 15, 2017 (as  amended, restated, supplemented,
or otherwise modified from time to time, the “ICP Credit Agreement” and together with the PEP Credit Agreement,
the “Credit Agreements”) pursuant to which the Lender Parties have made and may make advances and extend other
financial accommodations to ICP.

 

WHEREAS, (i) the Grantor
executed an Amended and Restated Guaranty and Contribution Agreement dated as of December 20, 2019 (as amended, restated, supplemented
or otherwise modified from time to time, the “Guaranty”) in favor of the Lender and the Secured Party, and (ii)
the Grantor and the Secured Party executed a Security Agreement dated as of March 20, 2019 (as amended, restated, supplemented,
or otherwise modified from time to time, the “Security Agreement”).

 

WHEREAS, in connection
with Amendment No. 9 to PEP Credit Agreement even dated herewith and Amendment No. 3 to ICP Credit Agreement even dated herewith,
the Grantor, PEP, ICP, and the Secured Party wish to amend the Security Agreement as set forth herein.

 

NOW, THEREFORE,
for Ten Dollars ($10.00) in hand paid to Grantor and in consideration of the premises and mutual covenants herein contained and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

 

Section 1. Acknowledgments
and Agreements. The Grantor hereby acknowledges and agrees as follows:

 

(a) Recitals.
The Recitals to this Amendment are true and correct, and are hereby incorporated into and made a part of this Amendment and the
Security Agreement.

 

(b) Defined
Terms. Unless otherwise defined in this Amendment, all capitalized terms used herein as defined terms shall have the meanings
given to them in the Security Agreement.

 

     

     

    

 

Section 2. Amendments
to the Security Agreement.

 

(a) Section
1(a) of the Security Agreement is hereby amended by deleting the definition of “Paydown Amount” from such Section.

  

(b) Section
17 of the Security Agreement is amended by amending and restating such section in its entirety:

 

“17. Termination; Release.
On the date upon which both the Payment in Full of the Obligations (as such terms are defined in the PEP Credit Agreement)
and Payment in Full of the Obligations (as such terms are defined in ICP Credit Agreement) have occurred (the “Termination
Date”), this Agreement will terminate automatically without any delivery of any instrument or performance of any act
by any party, except that provisions that by their terms survive the termination of the Loan Documents will so survive. Upon such
Termination Date, Secured Party will, at the request and expense of Grantor, (a) duly assign, transfer and deliver to or at the
direction of Grantor (without recourse and without any representation or warranty) such of the Collateral as may then remain in
the possession of Secured Party, together with any monies at the time held by Secured Party hereunder, and (b) execute and deliver
to Grantor a proper instrument or instruments acknowledging the satisfaction and termination of this Agreement. Until such time
as the Termination Date has occurred, the sale of any of PEC, PEP, ICP and their respective Subsidiaries shall be subject to the
consent of each of the Pekin Lenders and the ICP Lenders, in each case not to be unreasonably withheld, conditioned or delayed.”

 

Section 3. Representations
and Warranties. Grantor hereby represents and warrants to the Secured Party as follows:

 

(a) Grantor
has all requisite power and authority, corporate or otherwise, to execute and deliver this Amendment. This Amendment has been duly
and validly executed and delivered to the Secured Party by Grantor, and this Amendment and the Security Agreement as amended hereby
and the other Loan Documents constitute the Grantor’s legal, valid, and binding obligations enforceable in accordance with
their respective terms.

 

(b) The execution,
delivery, and performance by the Grantor of this Amendment, and the performance of the Security Agreement as amended hereby, have
been duly authorized by all necessary corporate action and do not and will not (i) require any authorization, consent or approval
by any Governmental Authority, (ii) violate the Grantor’s Organizational Documents or any provision of any law, rule, regulation
or order presently in effect having applicability to the Grantor, (iii) result in a breach of or constitute a default under any
indenture or agreement to which the Grantor is a party or by which the Grantor or its properties may be bound or affected, or (iv)
result in, or require, the creation or imposition of any Lien of any nature upon or with respect to any of the properties now owned
or hereafter acquired by the Grantor (other than as required under the Loan Documents in favor of the Secured Party).

 

(c) For the
avoidance of doubt, pursuant to the original grant of security interest by Grantor in favor of Secured Party of the benefit of
Lender contained in the Security Agreement, Grantor granted a security interest in all of Grantor’s equity interest in each
of PEP and Pacific Aurora, LLC, a Delaware limited liability company, and sole holder of equity in Pacific Ethanol Aurora West,
LLC and Pacific Ethanol Aurora East, LLC.

 

    2

     

    

 

Section 4. Miscellaneous.
This Amendment is a Loan Document. This Amendment shall be governed by, and construed in accordance with, the laws of the State
of Colorado (other than its conflicts of laws rules). This Amendment, together with the Security Agreement amended hereby and the
other Loan Documents, comprise the final and complete integration of all prior expressions by the parties hereto with respect to
the subject matter hereof and shall constitute the entire agreement among the parties hereto with respect to such subject matter,
superseding all prior oral or written understandings. In the event of any conflict between this Amendment and the Credit Agreements,
the Credit Agreements shall control. This Amendment is subject to the provisions of the PEP Credit Agreement and the ICP Credit
Agreement, respectively, relating to submission to jurisdiction, venue, service of process and waiver of right to trial by jury,
the provisions which are by this reference incorporated herein in full. Any provision of this Amendment which is prohibited or
unenforceable shall be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof. Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part
of this Amendment for any other purpose. This Amendment may be executed in any number of counterparts, each of which when so executed
and delivered shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the
same instrument. Delivery of an executed counterpart of a signature page to this Amendment by facsimile or by e-mail transmission
of a PDF or similar copy shall be equally as effective as delivery of an original executed counterpart of this Amendment. Any party
delivering an executed counterpart signature page by facsimile or by e-mail transmission shall also deliver an original executed
counterpart, but the failure to deliver an original executed counterpart shall not affect the validity, enforceability or binding
effect of this Amendment. Grantor hereby authorizes Secured Party to amend any previously filed UCC-1 financing statements to reflect
the changes to the grant of security interest made effective by this Amendment.

 

[Signature pages follow.]

  

    3

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be executed as of the date first above written.

 

	 	PACIFIC ETHANOL CENTRAL, LLC, as a Grantor
	 	 	 
	 	By: 	/s/ Bryon T. McGregor
	 	Name: 	Bryon T. McGregor
	 	Title: 	Chief Financial Officer

 

Signature Page to Second Amendment to
Security Agreement

 

     

     

    

 

	 	COBANK, ACB, as Secured Party
	 	 	 
	 	By: 	/s/ Corey North
	 	Name: 	Corey North
	 	Title: 	Assistant Corporate Secretary

 

Signature Page to Second Amendment to
Security AgreementExhibit 10.10

 

FIRST
AMENDMENT TO INTERCREDITOR AGREEMENT

 

This
First Amendment to Intercreditor Agreement (this “Amendment”) is made as of December 18, 2020 by and among
the Pekin Lenders and ICP Lenders (each as defined below).

 

WHEREAS,
PACIFIC ETHANOL PEKIN, LLC, a Delaware limited liability company (“Pekin”), COMPEER FINANCIAL, PCA, a federally-chartered
instrumentality of the United States, successor by merger to 1st Farm Credit Services, PCA, as a Lender, and COBANK, ACB, a federally-chartered
instrumentality of the United States, as Agent, are parties to a Credit Agreement, dated as of December 15, 2016 (as amended,
restated, supplemented, or otherwise modified from time to time, the “Pekin Credit Agreement”), pursuant to
which the Pekin Lenders have made and may make advances and extend other financial accommodations to Pekin. The lenders from time
to time as parties to the Pekin Credit Agreement are referred to herein as the “Pekin Lenders.”

 

WHEREAS,
ILLINOIS CORN PROCESSING, LLC, a Delaware limited liability company (“ICP” and together with Pekin collectively,
the “Borrowers”), COMPEER FINANCIAL, PCA, a federally-chartered instrumentality of the United States, as a
Lender, and COBANK, ACB, a federally-chartered instrumentality of the United States, as Cash Management Provider and Agent, are
parties to a Credit Agreement, dated as of September 15, 2017 (as amended, restated, supplemented, or otherwise modified from
time to time, the “ICP Credit Agreement” and together with the Pekin Credit Agreement, the “Credit
Agreements”), pursuant to which the ICP Lenders have made and may make advances and extend other financial accommodations
to ICP. The lenders from time to time as parties to the ICP Credit Agreement are referred to herein as the “ICP Lenders.”

 

WHEREAS,
the Pekin Lenders and ICP Lenders (each, a “Party” and collectively, the “Parties”) are
parties to that certain Intercreditor Agreement, dated March 30, 2020 (as may be amended, restated, supplemented, or otherwise
modified from time to time, the “Intercreditor Agreement”).

 

WHEREAS,
the Borrowers, the Pekin Lenders, and the ICP Lenders desire to amend the Credit Agreements and as a condition to entering
into such amendments and continuing to extend such credit to the Borrowers, the Pekin Lenders and ICP Lenders have required the
execution and delivery of this Amendment to amend the Intercreditor Agreement as set forth herein.

 

NOW,
THEREFORE, in consideration of the premises and mutual covenants herein contained and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties are executing this Amendment and hereby agree to the following:

 

Section
1.Acknowledgments and Agreements. The Parties hereby acknowledge and agree as follows:

 

(a)       Recitals.
The Recitals to this Amendment are true and correct, and are hereby incorporated into and made a part of this Amendment and the
Intercreditor Agreement.

 

(b)       Defined
Terms. Unless otherwise defined in this Amendment, all capitalized terms used herein as defined terms shall have the meanings
given to them in the Intercreditor Agreement.

 

     

     

    

 

Section
2.Amendment to the Intercreditor Agreement.

 

(a)       Section
3.1 of the Intercreditor Agreement is hereby amended by amending and restating clause (ii) of such Section as follows:

 

“(ii)
second, to the ICP Obligations as the ICP Lenders shall determine in their sole discretion.”

 

(b)       Section
3.2 of the Intercreditor Agreement is hereby amended by amending and restating clause (ii) of such Section as follows:

 

“(ii)
second, to the Pekin Obligations as the Pekin Lenders shall determine in their sole discretion.”

 

(c)       Section
3.3 of the Intercreditor Agreement is hereby amended and restated as follows:

 

“3.3Until
the December 2020 Paydown Amount is received in full by the Parties, the Pekin Lenders shall receive 80% of any Paydown Proceeds
received by the Pekin Lenders and/or the ICP Lenders and shall apply such funds to the pay down of principal of the “Term
Loan” under the Pekin Credit Agreement until paid in full, and then to the “Revolving Term Loan” under the Pekin
Credit Agreement. The ICP Lenders shall receive the remaining 20% of such Paydown Proceeds and shall apply such funds to the principal
paydown of the “Term Loan” under the ICP Credit Agreement until paid in full, and then to the “Revolving Term
Loan” under the ICP Credit Agreement.”

 

Section
3.6 of the Intercreditor Agreement is amended by amending and restating such section in its entirety:

 

“3.6[Reserved.]”

 

Section
3.Miscellaneous. This Amendment is a Loan Document. This Amendment shall be governed by, and construed in accordance
with, the laws of the State of Colorado (other than its conflicts of laws rules). This Amendment, together with the Intercreditor
Agreement amended hereby and the other Loan Documents, comprise the final and complete integration of all prior expressions by
the parties hereto with respect to the subject matter hereof and shall constitute the entire agreement among the parties hereto
with respect to such subject matter, superseding all prior oral or written understandings. In the event of any conflict between
this Amendment and the Credit Agreement, the Credit Agreement shall control. This Amendment is subject to the provisions of the
Credit Agreement relating to submission to jurisdiction, venue, service of process, and waiver of right to trial by jury, the
provisions which are by this reference incorporated herein in full. Any provision of this Amendment which is prohibited or unenforceable
shall be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof.
Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this
Amendment for any other purpose. This Amendment may be executed in any number of counterparts, each of which when so executed
and delivered shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the
same instrument. Delivery of an executed counterpart of a signature page to this Amendment by facsimile or by e-mail transmission
of a PDF or similar copy shall be equally as effective as delivery of an original executed counterpart of this Amendment. Any
party delivering an executed counterpart signature page by facsimile or by e-mail transmission shall also deliver an original
executed counterpart, but the failure to deliver an original executed counterpart shall not affect the validity, enforceability
or binding effect of this Amendment.

 

[Signature
page follows.]

 

    2

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the date first above written.

 

	 	Pekin Lenders:
	 	COMPEER FINANCIAL, PCA
	 	 	 
	 	By:	/s/
    Kevin Buente
	 	Name:  	Kevin
    Buente
	 	Title:  	Principal
    Credit Officer
	 	 	 
	 	ICP Lenders:
	 	COMPEER FINANCIAL, PCA
	 	 	 
	 	By:	/s/
    Kevin Buente
	 	Name:  	Kevin
    Buente
	 	Title:  	Principal
    Credit Officer

 

Acknowledged
and Agreed:

 

	COBANK,
    ACB, as Cash Management Provider and Agent for the Pekin Lenders	 	PACIFIC
    ETHANOL PEKIN, LLC
	 	 	 
	By:	/s/
    Corey North	 	By: 	 /s/
    Bryon T. McGregor
	Name:  	Corey
    North	 	Name:	Bryon
    McGregor
	Title:	Assistant
    Corporate Secretary	 	Title:	Chief
    Financial Officer
	 	 	 
	COBANK,
    ACB, as Cash Management Provider and Agent for the ICP Lenders	 	ILLINOIS
    CORN PROCESSING, LLC
	 	 	 
	By:  	/s/
    Corey North	 	By: 	/s/
    Bryon T. McGregor
	Name:	Corey
    North	 	Name:  	Bryon
    McGregor
	Title:	Assistant
    Corporate Secretary	 	Title:	Chief
    Financial Officer

 

Signature Page to First Amendment to
Intercreditor Agreement

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