Document:

Exhibit 10.9

 

Execution
Version

SECURITY
AGREEMENT

(PACIFIC ETHANOL WEST, LLC)

(PE OP CO.)

 

This
Security Agreement, dated as of March 20, 2020 (as amended, supplemented or otherwise modified from time to time in accordance
with the provisions hereof, this “Agreement”), made by and among Pacific Ethanol West, LLC, a Delaware limited
liability company (“PE West”), PE Op Co., a Delaware corporation (“PE Op Co.”; together
with PE West, each, a “Grantor” and collectively, jointly and severally, the “Grantors”),
and Cortland Products Corp., as collateral agent for the benefit of the Noteholders (in such capacity, together with its successors
and assigns in such capacity, the “Agent”; together with the Noteholders, the “Secured Parties”).

 

RECITALS:

 

WHEREAS,
Pacific Ethanol, Inc., a Delaware corporation (the “Company”) issued certain secured promissory notes in the
aggregate original principal amount of $55,000,000 on December 15, 2016 (the “Initial Notes”) pursuant to a
Note Purchase Agreement dated as of December 12, 2016 by and among the Company and the Investors identified therein (as amended,
restated, supplemented or otherwise modified from time to time, including amendments and restatements thereof in its entirety,
the “Initial Purchase Agreement”);

 

WHEREAS,
the Company and certain Investors identified therein are parties to a Note Purchase Agreement dated as of June 26, 2017 (as amended,
restated, supplemented or otherwise modified from time to time, including amendments and restatements thereof in its entirety,
the “Additional Purchase Agreement”), pursuant to which the Company issued $13,948,078 in aggregate original
principal amount of senior secured notes due December 15, 2019 (as amended, restated, supplemented or otherwise modified from
time to time, the “Additional Notes”).

 

WHEREAS,
the Noteholders are holders of the Initial Notes, the Additional Notes and certain other secured promissory notes issued by the
Company on December 16, 2019 (the “Existing Notes”);

 

WHEREAS,
pursuant to that certain Senior Secured Note Amendment Agreement dated as of December 22, 2019 between the Noteholders defined
therein and the Company (as amended, restated, supplemented or otherwise modified from time to time, including amendments and
restatements thereof in its entirety, the “Amendment Agreement”), the Existing Notes were amended and restated
in their entirety (the “Amended Notes,” and together with the Amendment Agreement and the Transaction Documents,
the “Notes Amendment Documents”);

 

WHEREAS,
Cortland Products Corp. has been appointed by the Noteholders to act as collateral agent under the Notes Amendment Documents (and
as successor to Cortland Capital Market Services LLC in such capacity) pursuant to that certain Security Agreement, dated as of
December 15, 2016 (as amended, restated, supplemented or otherwise modified from time to time, including amendments and restatements
thereof in its entirety), among the Company, the Agent and the other Secured Parties; and

 

     

     

    

 

WHEREAS,
to secure the obligations of the Company under the Notes Amendment Documents, pursuant to the Notes Amendment Documents, the Grantors
are required to enter into this Agreement;

 

NOW,
THEREFORE, for Ten Dollars ($10.00) in hand paid to the Grantors 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, and to secure
the timely payment and performance of the Secured Obligations (as hereinafter defined), the parties hereto agree as follows:

 

1. Definitions.

 

(a) Each
capitalized term used herein, unless otherwise defined herein, shall have the meaning ascribed to such term in the Amendment Agreement
or the Initial Noteholder Security Agreement, as applicable. As used herein, the following terms shall have the following meanings:

 

“Collateral”
has the meaning set forth in Section 2.

 

“First
Priority” means, with respect to any Lien purported to be created in any Collateral pursuant to this Agreement, such
Lien is the most senior Lien to which such Collateral is subject (subject only to Permitted Liens).

 

“Initial
Noteholder Security Agreement” means that certain Security Agreement, dated as of December 15, 2016, by and among the
Company, the Noteholders party thereto, and the Agent, as amended by that certain First Amendment to Security Agreement, dated
June 30, 2017, by and among the Company, the Noteholders party thereto, and the Agent, that certain Second Amendment to Security
Agreement, dated December 22, 2019, by and among the Company, the Noteholders party thereto, and the Agent, and that certain Third
Amendment to Security Agreement, dated as of the date hereof, by and among the Company, the Noteholders party thereto, and the
Agent, as the same may be further amended, restated, supplemented or otherwise modified from time to time.

 

“Noteholders”
means (x) each Person that is (i) a signatory to the Amendment Agreement and identified as a “Noteholder” on Exhibit
A to the Amendment Agreement, (ii) a holder of any of the Notes (as defined in the Amendment Agreement), and (iii) a “Secured
Party” party to the Initial Noteholder Security Agreement and (y) any other Person that becomes (i) a holder of any of the
Notes pursuant to any permitted assignment or transfer and (ii) a “Secured Party” under the Initial Noteholder Security
Agreement pursuant to a Security Agreement Joinder, other than any such Person that ceases to be a party to such agreement pursuant
to an assignment of all of its Notes and its rights and obligations under the Transaction Documents (as defined in the Initial
Security Agreement).

 

“Proceeds”
means “proceeds” as such term is defined in section 9-102 of the UCC and, in any event, shall include all dividends
or other income from the Collateral, collections thereon or distributions with respect thereto.

 

“Secured
Obligations” has the meaning set forth in Section 3.

 

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“UCC”
means the Uniform Commercial Code as in effect from time to time in the State of New York or, when the laws of any other state
govern the method or manner of the perfection or enforcement of any security interest in any of the Collateral, the Uniform Commercial
Code as in effect from time to time in such state.

 

(b) Deposit
Accounts. All of each Grantor’s deposit accounts are listed on Schedule 2 attached hereto and made a part hereof.
Each of the deposit accounts listed on Schedule 2 shall be deemed to be a “deposit account” referenced in the
definition of “Collateral” contained in Section 2 of this Agreement and shall be subject in all respects to the security
interest granted by each Grantor to the Agent on behalf of each Secured Party pursuant to this Agreement. Upon establishing a
deposit account that is not listed on Schedule 2 (to the extent that establishing such deposit account is otherwise permitted
hereunder and under any other Notes Amendment Document), the applicable Grantor shall promptly give notice to the Agent that such
deposit account has been established and shall immediately execute or otherwise authenticate, along with the other Grantors party
hereto, a supplement to Schedule 2 that includes such deposit account and take all action necessary to give the Agent on
behalf of each Secured Party “control” (as such term is defined in the UCC) over such deposit account, including causing
the applicable bank or financial institution to enter into a control agreement (in form and substance acceptable to the Agent)
with the Agent for such deposit account.

 

2. Grant
of Security Interest. Each Grantor hereby grants to the Agent, on behalf of each Secured Party a continuing security interest
in all of its right, title and interest in and to the following, wherever located, whether now existing or hereafter arising or
acquired (collectively, the “Collateral”):

 

(a) all
accounts (including health-care-insurance receivables), goods (including inventory and equipment), goods (including inventory
and equipment) currently or hereafter held on consignment, documents (including, if applicable, electronic documents), fixtures,
instruments, promissory notes, chattel paper (whether tangible or electronic), letters of credit, letter-of-credit rights (whether
or not the letter of credit is evidenced by a writing), securities and all other investment property, commercial tort claims described
on Schedule 1 hereof as supplemented by any written notification given by each applicable Grantor to Agent pursuant to
Section 4(e), general intangibles (including all payment intangibles), money, deposit accounts (including each of the deposit
accounts listed on Schedule 2 attached hereto), and any other contract rights or rights to the payment of money; and

 

(b) all
Proceeds and products of each of the foregoing, all books and records relating to the foregoing, all supporting obligations related
thereto, and all accessions to, substitutions and replacements for, and rents, profits and products of, each of the foregoing,
and any and all Proceeds of any insurance, indemnity, warranty or guaranty payable to each Grantor from time to time with respect
to any of the foregoing.

 

3. Secured
Obligations. The Collateral secures the payment and performance of (a) all indebtedness and obligations of the Company and
the Grantors under the Notes Amendment Documents; and (b) and all indebtedness and obligations of the Company and the Grantors
owed to the Secured Parties now or hereafter existing under this Agreement (collectively, “Secured Obligations”).

 

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4. Perfection
of Security Interest and Further Assurances.

 

(a) Each
Grantor shall, from time to time, as may be required by Agent with respect to all Collateral, promptly take all actions as may
be reasonably requested by Agent to perfect the Lien of Agent in the Collateral, including, with respect to all Collateral over
which control may be obtained within the meaning of sections 8-106, 9-104, 9-105, 9-106 and 9-107 of the UCC, section 201 of the
federal Electronic Signatures in Global and National Commerce Act and, as the case may be, section 16 of the Uniform Electronic
Transactions Act, as applicable, each Grantor shall promptly take all actions as may be reasonably requested from time to time
by Agent so that control of such Collateral is obtained and at all times held by the Agent on behalf of each Secured Party. All
of the foregoing shall be at the Grantors’ sole cost and expense.

 

(b) Each
Grantor hereby irrevocably authorizes Agent or its designees at any time and from time to time to file in any relevant jurisdiction
any financing statements and amendments thereto that contain the information required by Article 9 of the UCC of each applicable
jurisdiction for the filing of any financing statement or amendment relating to the Collateral, including any financing or continuation
statements or other documents for the purpose of perfecting, confirming, continuing, enforcing or protecting the Lien granted
by each Grantor hereunder, without each Grantor’s signature where permitted by law, including the filing of a financing
statement describing the Collateral as all assets now owned or hereafter acquired by each Grantor, or words of similar effect.
Each Grantor agrees to provide all information required by Agent pursuant to this Section promptly to Agent upon request.

 

(c) Each
Grantor hereby further authorizes Agent or its designees to file with the United States Patent and Trademark Office and the United
States Copyright Office (and any successor office and any similar office in any state of the United States or in any other country)
this Agreement and other documents for the purpose of perfecting, confirming, continuing, enforcing or protecting the Lien granted
by each Grantor hereunder, without each such Grantor’s signature where permitted by law.

 

(d) If
any Grantor shall at any time hold or acquire any certificated securities, promissory notes, tangible chattel paper, negotiable
documents or warehouse receipts relating to the Collateral, any such Grantor shall promptly indorse, assign and deliver the same
to Agent, accompanied by such instruments of transfer or assignment duly executed in blank as Agent may from time to time specify.

 

(e) If
any Grantor shall at any time hold or acquire a commercial tort claim, such Grantor shall (a) promptly notify Agent in a writing
signed by such Grantor of the particulars thereof and grant to Agent on behalf of the Secured Parties in such writing a Lien therein
and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance satisfactory
to Agent and (b) deliver to Agent an updated Schedule 1.

 

(f) If
any Collateral is at any time in the possession of a bailee, any such Grantor shall promptly notify Agent thereof and, at Agent’s
request and option, shall promptly obtain an acknowledgment from the bailee, in form and substance satisfactory to Agent, that
the bailee holds such Collateral for the benefit of the Secured Parties and the bailee agrees to comply, without such Grantor’s
further consent, at any time with instructions of Agent as to such Collateral.

 

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(g) If
any Grantor is at any time a beneficiary under a letter of credit, such Grantor will promptly notify Agent and, at Agent’s
request, such Grantor will, pursuant to an agreement in form and substance reasonably acceptable to Agent, either (a) arrange
for the issuer and any confirmer or other nominated person of such letter of credit to consent to an assignment to Agent of the
proceeds of the letter of credit or (b) arrange for Agent to become the transferee beneficiary of the letter of credit.

 

(h) Each
Grantor agrees that at any time and from time to time, at the Grantors’ expense, each Grantor will promptly execute and
deliver all further instruments and documents, obtain such agreements from third parties, and take all further action, that may
be necessary or desirable, or that Agent may reasonably request, in order to perfect and protect any Lien granted hereby or to
enable Agent to exercise and enforce its and the other Secured Parties’ rights and remedies hereunder or under any other
agreement with respect to any Collateral.

 

5. Representations
and Warranties. Each Grantor represents and warrants as follows:

 

(a) (i)
Each Grantor’s exact legal name is that indicated on the signature page hereof and (ii) each Grantor is an organization
of the type, and is organized in the jurisdiction, set forth in the preamble hereof.

 

(b) The
Collateral consisting of securities have been duly authorized and validly issued, and are fully paid and non-assessable and subject
to no options to purchase or similar rights. Each Grantor holds no commercial tort claims except as indicated on Schedule 1.
None of the Collateral constitutes, or is the proceeds of, “farm products” as defined in section 9-102(a)(34) of the
UCC. None of the account debtors or other persons obligated on any of the Collateral is a governmental authority covered by the
Federal Assignment of Claims Act or like federal, state or local statute or rule in respect of such Collateral. Each Grantor has
at all times operated its business in compliance with all applicable provisions of the federal Fair Labor Standards Act, as amended,
and with all applicable provisions of federal, state and local statutes and ordinances dealing with the control, shipment, storage
or disposal of hazardous materials or substances.

 

(c) At
the time the Collateral becomes subject to the Lien created by this Agreement, each Grantor will be the sole, direct, legal and
beneficial owner thereof, free and clear of any Lien, claim, option or right of others except for the Lien created by this Agreement
and other Permitted Liens.

 

(d) The
grant of security interest in the Collateral pursuant to this Agreement creates a valid and perfected First Priority Lien in the
Collateral, securing the payment and performance when due of the Secured Obligations.

 

(e) Each
Grantor has full power, authority and legal right to grant a security interest in the Collateral pursuant to this Agreement.

 

(f) This
Agreement has been duly authorized, executed and delivered by each Grantor and constitutes a legal, valid and binding obligation
of each Grantor enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium
or other similar laws affecting creditors’ rights generally and subject to equitable principles (regardless of whether enforcement
is sought in equity or at law).

 

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(g) No
authorization, approval, or other action by, and no notice to or filing with, any governmental authority or regulatory body is
required for the issuance of the Amended Notes and the grant of the security interest by each Grantor of the Collateral pursuant
to this Agreement or for the execution and delivery of this Agreement by each Grantor or the performance by each Grantor of its
obligations thereunder, other than filings to perfect the security interest.

 

(h) The
execution and delivery of this Agreement by each Grantor and the performance by each Grantor of its obligations hereunder, will
not violate any provision of any applicable law or regulation or any order, judgment, writ, award or decree of any court, arbitrator
or governmental authority, domestic or foreign, applicable to each Grantor or any of its property, or the organizational or governing
documents of each Grantor or any agreement or instrument to which each Grantor is party or by which it or its property is bound.

 

(i) Each
Grantor has taken all action required on its part for control (as defined in sections 8-106, 9-104, 9-105, 9-106 and 9-107 of
the UCC, section 201 of the federal Electronic Signatures in Global and National Commerce Act and, as the case may be, section
16 of the Uniform Electronic Transactions Act, as applicable) to have been obtained by Agent over all Collateral with respect
to which such control may be obtained pursuant to the UCC. No person other than Agent has control or possession of all or any
part of the Collateral.

 

6. Accounts
Receivable.

 

(a) Agent
may at any time and from time to time send or require each or any Grantor to send requests for verification of Accounts or notices
of assignment to account debtors and other obligors. Agent may also at any time and from time to time telephone account debtors
and other obligors to verify accounts.

 

(b) Agent
may establish a collateral account for the deposit of checks, drafts and cash payments made by each or any Grantor’s account
debtors. If a collateral account is so established, each such Grantor shall promptly deliver to Agent, for deposit into said collateral
account, all payments on Accounts and chattel paper received by it. All such payments shall be delivered to Agent in the form
received (except for such Grantor’s endorsement where necessary). Until so deposited, all payments on Accounts and chattel
paper received by such Grantor shall be held in trust by such Grantor for and as the property of Agent on behalf of the Secured
Parties and shall not be commingled with any funds or property of such Grantor. All deposits in said collateral account shall
constitute proceeds of Collateral and shall not constitute payment of any Secured Obligation. Unless otherwise agreed in writing,
such Grantor shall have no right to withdraw amounts on deposit in any collateral account.

 

(c) Agent
may, by notice to each Grantor, require each Grantor to direct each of its account debtors to make payment directly to a special
lockbox to be under the control of Agent. Each Grantor hereby authorizes and directs Agent to deposit all checks, drafts and cash
payments received in said lockbox into the collateral account established as set forth above.

 

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(d) Agent
may notify any account debtor, or any other Person obligated to pay any amount due, that such chattel paper, general intangible,
Account, or other right to payment has been assigned or transferred to Agent for security and shall be paid directly to Agent.
At any time after Secured Party or each or any Grantor gives such notice to an account debtor or other obligor, Agent, on behalf
of the Secured Parties, may (but need not), in its own name or in such Grantor’s name, demand, sue for, collect or receive
any money or property at any time payable or receivable on account of, or securing, any such chattel paper, Account, or other
right to payment, or grant any extension to, make any compromise or settlement with or otherwise agree to waive, modify, amend
or change the obligations (including collateral obligations) of any such account debtor or other obligor.

 

7. Voting
and Distributions.

 

(a) The
Secured Parties agree that unless an Event of Default shall have occurred and be continuing, each Grantor may, to the extent such
Grantor has such right as a holder of the Collateral consisting of securities, other equity interests or indebtedness owed by
any obligor, vote and give consents, ratifications and waivers with respect thereto, except to the extent that, in Agent’s
reasonable judgment, any such vote, consent, ratification or waiver would have a material adverse effect on the value thereof
as Collateral or which would be inconsistent with or result in any violation of any provision of this Agreement or any other Notes
Amendment Documents in any material respect, and from time to time, upon request from any Grantor, Agent shall deliver to such
Grantor suitable proxies so that such Grantor may cast such votes, consents, ratifications and waivers.

 

(b) The
Secured Parties agree that each Grantor may, unless an Event of Default shall have occurred and be continuing, receive and retain
all dividends and other distributions with respect to the Collateral consisting of securities, other equity interests or indebtedness
owed by any obligor.

 

8. Covenants.
Each Grantor covenants as follows:

 

(a) No
Grantor will, without providing at least 30 days’ prior written notice to Agent, change its legal name, identity, type of
organization, jurisdiction of organization, corporate structure, location of its chief executive office or its principal place
of business or its organizational identification number. Grantors will, prior to any change described in the preceding sentence,
take all actions reasonably requested by Agent to maintain the perfection and priority of Agent’s Lien in the Collateral.

 

(b) Grantors
will keep the Collateral, to the extent not delivered to Agent pursuant to Section 4, at those locations listed on Schedule
3 attached hereto and no Grantor will remove the Collateral from such locations without providing at least 10 days’
prior written notice to Agent except for (a) vehicles and equipment out for repair or in service in the field, (b) inventory in
transit in the ordinary course of business, and (c) Collateral that has been replaced, used and otherwise consumed in the ordinary
course of business.

 

(c) Grantors
will, at their sole cost and expense, defend title to the Collateral and the First Priority Lien of Agent therein against the
claim of any person claiming against or through Grantors and shall maintain and preserve such perfected First Priority Lien for
so long as this Agreement shall remain in effect.

 

(d) Grantors
will not grant, create, permit or suffer to exist any Lien, option, right of first offer, encumbrance or other restriction or
limitation of any nature whatsoever on, any of the Collateral or any interest therein except for Permitted Liens.

 

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(e) Grantors
will not sell, lease, or otherwise dispose of any of the Collateral except for in the ordinary course of business or as otherwise
permitted by the Notes Amendment Documents.

 

(f) Grantors
will keep the Collateral in good order and repair and will not use the same in violation of law or any policy of insurance thereon.
Grantors will permit Agent, or its designee, to inspect the Collateral at any reasonable time, wherever located.

 

(g) Grantors
will pay promptly when due all taxes, assessments, governmental charges, and levies upon the Collateral or incurred in connection
with the use or operation of the Collateral or incurred in connection with this Agreement.

 

(h) Grantors
will continue to operate their business in compliance with all applicable provisions of the federal Fair Labor Standards Act,
as amended, and with all applicable provisions of federal, state and local statutes and ordinances dealing with the control, shipment,
storage or disposal of hazardous materials or substances.

 

9. Agent
Appointed Attorney-in-Fact. Each Grantor hereby appoints Agent as the Grantors’ attorney-in-fact, with full authority
in the place and stead of the Grantors and in the name of each Grantor or otherwise, from time to time during the continuance
of an Event of Default in Agent’s discretion to take any action and to execute any instrument which Agent may deem necessary
or advisable to accomplish the purposes of this Agreement (but Agent shall not be obligated to and shall have no liability to
any Grantor or any third party for failure to do so or take action). This appointment, being coupled with an interest, shall be
irrevocable. Each Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof.

 

10. Agent
May Perform. If any Grantor fails to perform any obligation contained in this Agreement, Agent may itself perform, or cause
performance of, such obligation, and the expenses of Agent or any other Secured Party incurred in connection therewith shall be
jointly and severally payable by the Grantors; provided that Agent or any other Secured Party shall not be required to
perform or discharge any obligation of any Grantor.

 

11. Reasonable
Care. Agent shall have no duty with respect to the care and preservation of the Collateral beyond the exercise of reasonable
care. Agent shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in its possession
if the Collateral is accorded treatment substantially equal to that which Agent accords its own property, it being understood
that Agent shall not have any responsibility for (a) ascertaining or taking action with respect to any claims, the nature or sufficiency
of any payment or performance by any party under or pursuant to any agreement relating to the Collateral or other matters relative
to any Collateral, whether or not Agent has or is deemed to have knowledge of such matters, or (b) taking any necessary steps
to preserve rights against any parties with respect to any Collateral. Nothing set forth in this Agreement, nor the exercise by
Agent, on behalf of the Secured Parties, of any of the rights and remedies hereunder, shall relieve any Grantor from the performance
of any obligation on such Grantor’s part to be performed or observed in respect of any of the Collateral.

 

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12. Remedies
Upon Default. If any Event of Default shall have occurred and be continuing:

 

(a) Agent,
without any other notice to or demand upon any Grantor, may assert all rights and remedies of a secured party under the UCC or
other applicable law, including the right to take possession of, hold, collect, sell, lease, deliver, grant options to purchase
or otherwise retain, liquidate or dispose of all or any portion of the Collateral. If notice prior to disposition of the Collateral
or any portion thereof is necessary under applicable law, written notice mailed to applicable Grantor at its notice address as
provided in Section 19 hereof 10 days prior to the date of such disposition shall constitute reasonable notice, but notice given
in any other reasonable manner shall be sufficient. So long as the sale of the Collateral is made in a commercially reasonable
manner, Agent may sell such Collateral on such terms and to such purchaser(s) as Agent, on behalf of the Secured Parties, in its
absolute discretion may choose, without assuming any credit risk and without any obligation to advertise or give notice of any
kind other than that necessary under applicable law. Without precluding any other methods of sale, the sale of the Collateral
or any portion thereof shall have been made in a commercially reasonable manner if conducted in conformity with reasonable commercial
practices of creditors disposing of similar property. At any sale of the Collateral, if permitted by applicable law, Agent or
any other Secured Party may be the purchaser, licensee, assignee or recipient of the Collateral or any part thereof and shall
be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral
sold, assigned or licensed at such sale, to use and apply any of the Secured Obligations as a credit on account of the purchase
price of the Collateral or any part thereof payable at such sale. To the extent permitted by applicable law, each Grantor waives
all claims, damages and demands it may acquire against Agent or any other Secured Party arising out of the exercise by it of any
rights hereunder. Each Grantor hereby waives and releases to the fullest extent permitted by law any right or equity of redemption
with respect to the Collateral, whether before or after sale hereunder, and all rights, if any, of marshalling the Collateral
and any other security for the Secured Obligations or otherwise. At any such sale, unless prohibited by applicable law, Agent
or any other Secured Party or any custodian may bid for and purchase all or any part of the Collateral so sold free from any such
right or equity of redemption. None of Agent, any other Secured Party or any custodian shall be liable for failure to collect
or realize upon any or all of the Collateral or for any delay in so doing, nor shall it be under any obligation to take any action
whatsoever with regard thereto.

 

(b) All
rights of each Grantor to (i) exercise the voting and other consensual rights it would otherwise be entitled to exercise pursuant
to Section 7(a) and (ii) receive the dividends and other distributions which it would otherwise be entitled to receive and retain
pursuant to Section 7(b), shall immediately cease, and all such rights shall thereupon become vested in Agent, on behalf of the
Secured Parties, which shall have the sole right to exercise such voting and other consensual rights and receive and hold such
dividends and other distributions as Collateral.

 

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(c) Any
cash held by Agent as Collateral and all cash Proceeds received by Agent in respect of any sale of, collection from, or other
realization upon all or any part of the Collateral shall be applied in whole or in part by Agent to the payment of expenses incurred
by Secured Party in connection with the foregoing, including reasonable attorneys’ fees, and the balance of such proceeds
shall be applied or set off against all or any part of the Secured Obligations in such order set forth in the Transaction Documents.
Any surplus of such cash or cash Proceeds held by Agent and remaining after payment in full of all the Secured Obligations shall
be paid over to the Grantors or to whomsoever may be lawfully entitled to receive such surplus. The Grantors shall remain jointly
and severally liable for any deficiency if such cash and the cash Proceeds of any sale or other realization of the Collateral
are insufficient to pay the Secured Obligations and the fees and other charges of any attorneys employed by Agent or any other
Secured Party to collect such deficiency.

 

(d) If
Agent shall determine to exercise its rights to sell all or any of the Collateral pursuant to this Section, each Grantor agrees
that, upon request of Agent, each such Grantor will, at its own expense, be jointly and severally liable to do or cause to be
done all such acts and things as may be necessary to make such sale of the Collateral or any part thereof valid and binding and
in compliance with applicable law.

 

13. Standards
for Exercising Rights and Remedies. To the extent that applicable law imposes duties on Agent to exercise remedies in a commercially
reasonable manner, each Grantor acknowledges and agrees that it is not commercially unreasonable for Agent (a) to fail to incur
expenses reasonably deemed significant by Agent to prepare Collateral for disposition or otherwise to fail to complete raw material
or work in process into finished goods or other finished products for disposition, (b) to fail to obtain third party consents
for access to Collateral to be disposed of, or to obtain or, if not required by other law, to fail to obtain governmental or third
party consents for the collection or disposition of Collateral to be collected or disposed of, (c) to fail to exercise collection
remedies against account debtors or other persons obligated on Collateral or to fail to remove liens or encumbrances on or any
adverse claims against Collateral, (d) to exercise collection remedies against account debtors and other persons obligated on
Collateral directly or through the use of collection agencies and other collection specialists, (e) to advertise dispositions
of Collateral through publications or media of general circulation, whether or not the Collateral is of a specialized nature,
(f) to contact other persons, whether or not in the same business as the Company, for expressions of interest in acquiring all
or any portion of the Collateral, (g) to hire one or more professional auctioneers to assist in the disposition of Collateral,
whether or not the collateral is of a specialized nature, (h) to dispose of Collateral by utilizing Internet sites that provide
for the auction of assets of the types included in the Collateral or that have the reasonable capability of doing so, or that
match buyers and sellers of assets, (i) to dispose of assets in wholesale rather than retail markets, (j) to decline to provide
credit to any potential purchaser of the Collateral in connection with Agent’s disposition of the Collateral, (k) to disclaim
disposition warranties, (l) to purchase insurance or credit enhancements to insure Agent against risks of loss, collection or
disposition of Collateral or to provide to Agent a guaranteed return from the collection or disposition of Collateral, or (m)
to the extent deemed appropriate by Agent, to obtain the services of other brokers, investment bankers, consultants and other
professionals to assist Agent in the collection or disposition of any of the Collateral. Each Grantor acknowledges that the purpose
of this Section is to provide non-exhaustive indications of what actions or omissions by Agent would satisfy Agent’s duties
under the UCC in Agent’s exercise of remedies against the Collateral and that other actions or omissions by Agent shall
not be deemed to fail to satisfy such duties solely on account of not being indicated in this Section. Without limitation upon
the foregoing, nothing contained in this Section shall be construed to grant any rights to any Grantor or to impose any duties
on Agent that would not have been granted or imposed by this Agreement or by applicable law in the absence of this Section.

 

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14. No
Waiver and Cumulative Remedies. Agent or any other Secured Party shall not by any act (except by a written instrument pursuant
to Section 18), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced
in any default or Event of Default. All rights and remedies herein provided are cumulative and are not exclusive of any rights
or remedies provided by law.

 

15. Security
Interest Absolute. All rights of Agent, the other Secured Parties and Liens hereunder, and all Secured Obligations of the
Grantors hereunder, shall be absolute and unconditional irrespective of: (a) any illegality or lack of validity or enforceability
of any Secured Obligation or any related agreement or instrument; (b) any change in the time, place or manner of payment of, or
in any other term of, the Secured Obligations, or any rescission, waiver, amendment or other modification of the Notes Amendment
Documents, including any increase in the Secured Obligations resulting from any extension of additional credit or otherwise; (c)
any taking, exchange, substitution, release, impairment or non-perfection of any Collateral or any other collateral, or any taking,
release, impairment, amendment, waiver or other modification of any guaranty, for all or any of the Secured Obligations; (d) any
manner of sale, disposition or application of proceeds of any Collateral or any other collateral or other assets to all or part
of the Secured Obligations; (e) any default, failure or delay, willful or otherwise, in the performance of the Secured Obligations;
(f) any defense, set-off or counterclaim (other than a defense of payment or performance) that may at any time be available to,
or be asserted by, each or any Grantor against the Secured Parties; or (g) any other circumstance (including any statute of limitations)
or manner of administering the Amended Notes or any existence of or reliance on any representation by Secured Parties that might
vary the risk of each or any Grantor or otherwise operate as a defense available to, or a legal or equitable discharge of, such
Grantor or any other grantor, guarantor or surety.

 

16. Continuing
Security Interest; Further Actions. This Agreement creates a continuing First Priority Lien in the Collateral and shall (a)
subject to Section 17, remain in full force and effect until payment and performance in full of the Secured Obligations, (b) be
binding upon each Grantor, its successors and assigns, and (c) inure to the benefit of Secured Parties and their successors, transferees
and assigns; provided that no Grantor may assign or otherwise transfer any of its rights or obligations under this Agreement
without Agent’s prior written consent.

 

17. Termination;
Release. On the date on which all Principal, accrued Interest, and other amounts at any time owed on the Notes Amendment Documents
have been paid in full, 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 Notes Amendment Documents will so
survive. Upon such termination, Agent will, at the request and expense of the Grantors, (a) duly assign, transfer and deliver
to or at the direction of the Grantors (without recourse and without any representation or warranty) such of the Collateral as
may then remain in the possession of Agent, together with any monies at the time held by Agent hereunder, and (b) execute and
deliver to the Grantors a proper instrument or instruments acknowledging the satisfaction and termination of this Agreement.

 

    11

     

    

 

18. Amendments.
None of the terms or provisions of this Agreement may be amended, modified, supplemented, terminated or waived, and no consent
to any departure by the Grantors therefrom shall be effective unless the same shall be in writing and signed by Agent and the
Grantors, and then such amendment, modification, supplement, waiver or consent shall be effective only in the specific instance
and for the specific purpose for which made or given.

 

19. Notices.
All notices, requests and demands to or upon any party hereto shall be given in the manner and become effective as stipulated
in the Amendment Agreement. Regardless of the manner in which notice is provided, notices may be sent to Agent at the Agent’s
notice information set forth in the signature pages hereof and to each Grantor at each Grantor’s notice information set
forth in the signature pages hereof or to such other address or telephone number as any party may give to the other for such purpose
in accordance with this paragraph.

 

20. Headings.
The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

 

21. Counterparts;
Integration; Effectiveness. This Agreement and any amendments, waivers, consents or supplements hereto may be executed in
counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all
taken together shall constitute a single contract. This Agreement and the other Notes Amendment Documents constitute the entire
contract among the parties with respect to the subject matter of the Notes Amendment Documents and supersede all previous agreements
and understandings, oral or written, with respect thereto. Delivery of an executed counterpart of a signature page to this Agreement
by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually
executed counterpart of this Agreement.

 

22. Governing
Law; Jurisdiction; Etc.

 

(a) The
laws of the State of New York will govern this Agreement and any claim, controversy, dispute or cause of action (whether in contract
or tort or otherwise) based upon, arising out of or relating to this Agreement and the transactions contemplated hereby and thereby.

 

(b) Each
Grantor irrevocably and unconditionally agrees that it will not commence any action, litigation or proceeding of any kind whatsoever,
whether in law or equity, or whether in contract or tort or otherwise, against the Secured Parties in any way relating to this
Agreement or the transactions contemplated hereby, in any forum other than the courts of the State of New York sitting in the
city of New York, borough of Manhattan, and of the United States District Court of the Southern District of New York, and any
appellate court from any thereof, and each of the parties hereto irrevocably and unconditionally submits to the jurisdiction of
such courts and agrees that any such action, litigation or proceeding may be brought in any such New York State court or, to the
fullest extent permitted by applicable law, in such federal court. Each of the parties hereto agrees that a final judgment in
any such action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. Nothing herein shall affect any right that the Secured Parties may otherwise have to bring
any action or proceeding relating to this Agreement against any Grantor or its properties in the courts of any jurisdiction.

 

    12

     

    

 

(c) Each
Grantor irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any objection that it may now
or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement in any such
court referred to in Section 22(b). Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by applicable
law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

 

(d) Each
Grantor irrevocably consents to the service of process in the manner provided for notices in Section 19 and agrees that nothing
herein will affect the right of any party hereto to serve process in any other manner permitted by applicable law.

 

23. Waiver
of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT
MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY. EACH PARTY HERETO (A) CERTIFIES THAT NO AGENT, ATTORNEY,
REPRESENTATIVE OR ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT SEEK TO ENFORCE THE
FOREGOING WAIVER IN THE EVENT OF LITIGATION, AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AGREEMENT AND THE OTHER NOTES AMENDMENT DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

 

24.
 Inconsistency with Intercreditor Agreement. In the event of any conflict between
the terms of this Agreement and the Intercreditor Agreement, the Intercreditor Agreement shall control.

 

[signature
page to follow]

 

    13

     

    

 

The
parties have executed this Security Agreement as of the date set forth in the introductory paragraph.

 

	 	AGENT:
	 	 
	 	CORTLAND
    PRODUCTS CORP., as Agent
	 	 
	 	By:	/s/
    Matthew Trybula
	 	Print
    Name:	Matthew
    Trybula
	 	Title:	Associate
    Counsel
	 	 
	 	225
    W Washington Street, 9th Floor
	 	 
	 	Chicago,
    IL 60606
	 	 
	 	GRANTORS:
	 	 
	 	PACIFIC
    ETHANOL WEST, LLC
	 	 
	 	By:	/s/
    Neil M. Koehler
	 	Print
    Name:	Neil
    M. Koehler
	 	Title:	President
    and Chief Executive Officer
	 	 
	 	PE
    OP CO.
	 	 
	 	By:	/s/
    Neil M. Koehler
	 	Print
    Name:	Neil
    M. Koehler
	 	Title:	President
    and Chief Executive Officer
	 	 
	 	c/o
    Pacific Ethanol, Inc.
	 	 
	 	400
    Capital Mall, Suite 2060
	 	 
	 	Sacramento,
    California 95814

 

Signature Page to Security Agreement (Western
Assets)

 

     

     

    

 

SCHEDULE
1

 

COMMERCIAL
TORT CLAIMS

 

None.

 

 

 

 

 

Schedule 1 to Security Agreement

     

     

    

 

SCHEDULE
2

 

DEPOSIT
ACCOUNT

 

	Depository
Bank
	 	Account
    Holder	 	Account
    Number	 	Account
    Name
	Bank
    of America	 	Pacific
    Ethanol West, LLC	 	325000563581	 	Pacific
    Ethanol West LLC

 

 

 

 

Schedule 2 to Security Agreement

     

     

    

 

SCHEDULE
3

 

COLLATERAL
LOCATIONS

 

400
Capitol Mall, Suite 2060, Sacramento, California 95814

 

 

 

 

 

 

Schedule 3 to Security AgreementExhibit
10.10

 

Execution
Version

THIRD
AMENDMENT TO SECURITY AGREEMENT

 

THIS
THIRD AMENDMENT TO SECURITY AGREEMENT (this “Amendment”) is entered into effective as of March 20, 2020 by
and among Pacific Ethanol, Inc., a Delaware corporation (the “Company”), each of the Holders and the New Holders
(as defined below), each in its capacity as a Holder and as a Secured Party, Cortland Products Corp. (“Cortland Corp.”),
as Successor Agent (as defined below), and Cortland Capital Market Services LLC (“Cortland LLC”), as existing
collateral agent for itself and the Secured Parties (in such capacity, the “Existing Agent”). All capitalized
terms not otherwise defined herein or in the Security Agreement (as defined below) shall have the meanings attributed to them
in that certain Senior Secured Note Amendment Agreement dated effective as of December 22, 2019 by and among the Company and each
Holder (the “Amendment Agreement”).

 

RECITALS

 

WHEREAS,
the Company and the Holders are party to the Amendment Agreement pursuant to which the Company issued the Amended Notes;

 

WHEREAS,
to secure the Obligations under the Amended Notes, the Company, Existing Agent, and the other Secured Parties entered into that
certain Security Agreement dated as of December 15, 2016 (as amended, restated, supplemented, or otherwise modified from time
to time, the “Security Agreement”);

 

WHEREAS,
the Existing Agent desires to resign as collateral agent under the Security Agreement and the Required Holders have agreed to
appoint Cortland Corp. to act as successor Agent (in such capacity, together with its successors and assigns in such capacity,
the “Successor Agent”) pursuant to Section 17(j) of the Security Agreement;

 

WHEREAS,
the Company approves of the appointment of the Successor Agent as the successor collateral agent pursuant to Section 17(j) of
the Security Agreement;

 

WHEREAS,
the Successor Agent has agreed to accept the role of the collateral agent on behalf of itself and the Secured Parties in accordance
with Section 17(j) of the Security Agreement;

 

WHEREAS,
to secure the obligations of the Company under the Transaction Documents, pursuant to the Transaction Documents, certain affiliates
of the Company are required to enter into certain additional Collateral Documents;

 

WHEREAS,
in connection with the entry into such additional Collateral Documents, the parties hereto have further agreed to amend the Security
Agreement as set forth herein,

 

     

     

    

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the agreements herein contained and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

1. Resignation
and Appointment of Agent. Pursuant to Section 17(j) of the Security Agreement, in each case, effective as of the Effective
Date (as defined below) (a) the Existing Agent hereby resigns from the performance of all its functions and duties under this
Agreement and the other Transaction Documents, (b) each party hereto hereby waives the provisions of Section 17(j) of the Security
Agreement requiring that the Company and the Secured Parties be provided with thirty (30) days’ advance written notice of
the resignation of the Existing Agent, (c) the Existing Agent’s resignation shall be effective and each of the Company and
the Required Holders accepts the resignation of Cortland LLC as the collateral agent under the Security Agreement, and Cortland
LLC shall have no further obligations under the Transaction Documents or the Collateral Documents in its capacity as the Agent
or the collateral agent under any Transaction Document (other than the obligations set forth herein), (d) the Required Holders
appoint Cortland Corp. to act as the Agent (and as collateral agent under each Transaction Document to which it is party as successor
to the Existing Agent or becomes party on or about the date hereof pursuant to any Transaction Document to be entered into on
or about the date hereof) and (e) the Company consents to the appointment of Cortland Corp. to act as the Agent (and as collateral
agent under each other Transaction Document to which it is or to be party as collateral agent). As of the Effective Date, Cortland
Corp. accepts the appointment to act as the successor collateral agent under the Transaction Documents and the Collateral Documents.
The Required Holders and the Company waive any inconsistency or conflict with the provisions of the Security Agreement and any
other Transaction Document with respect to the resignation of Cortland LLC as Agent (and as collateral agent under any Transaction
Document) and the appointment of Cortland Corp. as the successor Agent (and as collateral agent under each Transaction Document
to which it is a party). Each of the parties hereto agrees, at the Company’s sole cost and expense, to execute all documents
necessary to evidence and give effect to the appointment of Cortland Corp. as the successor Agent.

 

2. Rights,
Duties and Obligations of Successor Agent. (a) Effective as of the Effective Date, the Successor Agent is hereby vested with
all the rights, powers, discretion and privileges of the Agent, as described in the Security Agreement and the other Transaction
Documents, and the Successor Agent assumes, from and after the Effective Date, the duties and obligations of the Agent in accordance
with the terms of the Security Agreement and the other Transaction Documents, and, the Existing Agent is discharged from all of
its duties and obligations as the Agent under the Transaction Documents. The Existing Agent shall bear no responsibility for any
actions taken or omitted to be taken by the Successor Agent after the Existing Agent’s time serving as the Agent under the
Security Agreement and the other Transaction Documents. Nothing in this Agreement shall be deemed a termination of the provisions
of any Transaction Document (including, without limitation, Sections 12, 17(i), and 18(j) of the Security Agreement) that survive
the Existing Agent’s resignation pertaining to Cortland LLC in its capacity as Agent. For the avoidance of doubt and without
prejudice to any other provision of the Transaction Documents that is purported to survive the Existing Agent’s resignation,
Sections 12, 17(i), and 18(j) of the Security Agreement shall continue in effect for the benefit of Cortland LLC and its affiliates
and the respective directors, trustees, officers, employees, agents and advisors of Cortland LLC and its affiliates on and after
the Effective Date. The Company and the Required Holders expressly agree and acknowledge that the Successor Agent is not assuming
any liability (i) under or related to the Transaction Documents prior to the Effective Date, (ii) for any actions taken or omitted
to be taken by Cortland LLC in its capacity as the Existing Agent or otherwise under this Amendment, the Security Agreement and
the other Transaction Documents or the transactions contemplated thereby and (iii) for any and all claims under or related to
the Transaction Documents that may have arisen or accrued prior to the Effective Date. Each of the Company and the Required Holders,
with respect to their applicable indemnification obligations under the Transaction Documents, expressly agrees and confirms that
the Successor Agent’s right to indemnification, as set forth in the Transaction Documents, shall apply with respect to any
and all losses, claims, costs and expenses that the Successor Agent suffers or incurs relating to actions taken or omitted by
any of the parties to this Amendment prior to the Effective Date.

 

    2

     

    

 

(b) (i)
The Existing Agent hereby assigns to the Successor Agent each of the Liens and security interests granted to, or in favor of,
the Existing Agent for the benefit of the Secured Parties under the Transaction Documents. All of such liens and security interests
shall in all respects be continuing and in effect and are hereby reaffirmed by the Company.

 

(ii) Each
of the Existing Agent and the Company hereby agrees to execute and deliver, at the Company’s sole cost and expense, to the
Successor Agent any UCC financing statements or similar documents, assignments or amendments that the Successor Agent or the Required
Holders reasonably request to evidence the Successor Agent’s succession as Agent under the Security Agreement and the other
Transaction Documents. Each of the Existing Agent, the Company and the Holders party hereto hereby authorizes the Successor Agent
(or its designee) to file any UCC financing statements or similar documents, assignments or amendments that the Successor Agent
deems necessary or desirable to evidence the Successor Agent’s succession as Agent under the Security Agreement and the
other Transaction Documents; provided that the Existing Agent shall bear no responsibility for any actions taken or omitted
to be taken by the Successor Agent (or its designee) with respect to the foregoing.

 

3. Notice
Information. The address details listed on the Successor Agent’s signature page hereto are to be used for purposes of
all communications to the Successor Agent pursuant to the Security Agreement and the other Transaction Documents.

 

4. Fees
and Expenses. All fees and expenses incurred by the Existing Agent prior to the date hereof have been presented in an invoice
and paid in full by the Company. Commencing on the Effective Date, (a) the Successor Agent shall be entitled to receive its agency
fees and expenses set forth in that certain Agent Fee Letter, dated as of the date hereof, between the Company and the Successor
Agent (the “New Agent Fee Letter”) and (b) the Existing Agent shall cease to be entitled to receive the “Collateral
Agency Fees” payable to the Existing Agent pursuant to Section 12(i) of the Security Agreement and that certain Agent Fee
Letter, dated as of December 15, 2016, by and between the Company and the Existing Agent. All other provisions of the Security
Agreement and the other Transaction Documents providing for the payment of fees and expenses of, and providing indemnities for
the benefit of, the Existing Agent shall remain in full force and effect for the benefit of the Successor Agent and its Related
Parties (and, where applicable, the Existing Agent and its Related Parties). The Company, the Holders and the Successor Agent
hereby acknowledge and agree that, effective as of the Effective Date, the New Agency Fee Letter shall constitute the “Agent
Fee Letter” under the Security Agreement, and all fees, costs, expenses and compensation payable thereunder shall constitute
Obligations secured equally and ratably by the collateral under each of the Collateral Documents. 

 

    3

     

    

 

5. Amendments
to Security Agreement.

 

(c) Section
1 of the Security Agreement is hereby amended to insert the following defined terms therein in their appropriate alphabetical
order as follows:

 

“Collateral
Documents” shall mean all security agreements, mortgages, pledge agreements, documents, filings, certificates, and other
agreements which grant the Holders, or the Agent as collateral agent for the Holders, a security interest to secure the Obligations.

 

“Intercreditor
Agreement” means that certain Intercreditor Agreement, dated as of March 20, 2020, made by any among the Agent, as “Notes
Agent”, CoBank, ACB, as “CoBank Agent”, the Company and each of the other grantors party thereto, as may be
amended, restated, supplemented or otherwise modified from time to time.

 

“Transaction
Documents” means this Agreement, the Amendment Agreement and the schedules and exhibits attached thereto, the Amended
Notes, the Purchase Agreement, the Notes, the Warrants, the Registration Rights Agreement, the Transfer Agent Instructions, the
Collateral Documents, and the Intercreditor Agreement, together with any amendments, restatements, extensions or other modifications
thereto.

 

(d) Section
17 of the Security Agreement is amended and restated in its entirety to read as follows:

 

“17.
 Agent.

 

(a) Appointment.
The Secured Parties, by their acceptance of the benefits of the Agreement, hereby designate Cortland Products Corp. as the Agent
to act as specified herein and in each other Collateral Document to which it is party as Agent. Each Secured Party shall be deemed
irrevocably to authorize and direct the Agent to take such action on its behalf under the provisions of this Agreement and each
other Collateral Document to which it is party and to exercise such powers and to perform such duties hereunder and thereunder
as are specifically delegated to or required of the Agent by the terms hereof and thereof and such other powers as are reasonably
incidental thereto. The Agent may perform any and all of its duties hereunder and exercise its rights and powers hereunder by
or through any one or more sub-agents appointed by it, and will not be responsible for any misconduct or negligence on the part
of any of them. The Agent and any such sub-agent may perform any and all of its duties hereunder and exercise its rights and powers
hereunder by or through their respective Affiliates. The exculpatory and indemnification provisions of this Agreement shall apply
to any such sub-agent and to the Affiliates of the Agent and any such sub-agent. All of the rights, benefits, and privileges (including
the exculpatory and indemnification provisions) of this Agreement shall apply to any such sub-agent and to the Affiliates of any
such sub-agent as if such sub-agent and Affiliates were named herein.

 

    4

     

    

 

(b) Nature
of Duties. The Agent shall have no duties or responsibilities except those expressly set forth in this Agreement and each
of the other Collateral Documents to which it is a party. Without limiting the generality of the foregoing, (i) the Agent shall
not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers
expressly contemplated hereby that the Agent is instructed in writing to exercise by the Required Holders (or such greater number
of Holders as may be expressly required herein); provided that the Agent shall not be required to take any action that,
in its opinion or the opinion of its legal counsel, may expose the Agent to liability or that is contrary to this Agreement or
any other Transaction Document or applicable law, including for the avoidance of doubt any action that may be in violation of
the automatic stay under the Bankruptcy Code, and (ii) neither the Agent nor any of its partners, officers, directors, employees
or agents shall be liable for any action taken or not taken by it as such under this Agreement or any other Collateral Document
or hereunder or thereunder or in connection herewith or therewith, be responsible for the consequence of any oversight or error
of judgment or answerable for any loss, unless caused solely by it or its gross negligence or willful misconduct as determined
by a final judgment (not subject to further appeal) of a court of competent jurisdiction, and then only for direct damages to
the extent provided by law and not for any lost profits or special, indirect or consequential damages or (to the fullest extent
a claim for punitive damages may lawfully be waived) any punitive damages; provided, further, that neither the Agent nor
any of its partners, officers, directors, employees or agents shall be liable for any action taken or not taken by it with the
consent or at the request of the Required Holders (or such greater number of Holders as may be expressly required herein). The
duties of the Agent shall be mechanical and administrative in nature; the Agent shall not have by reason of this Agreement, any
other Collateral Document or any other related agreement a fiduciary relationship or other implied duties under this Agreement,
any other Collateral Document or any other related agreement, or in respect of the Company or any Secured Party, regardless of
whether an Event of Default has occurred and is continuing; and nothing in the Agreement, any other Collateral Document or any
other related agreement, expressed or implied, is intended to or shall be so construed as to impose upon the Agent any obligations
in respect of this Agreement, any other Collateral Document or any other related agreement except as expressly set forth herein
and therein.

 

(c) Other
Agreements. The Agent has accepted and is bound by this Agreement and each other Collateral Document executed by or in favor
of the Agent. The Agent will not otherwise be bound by, or be held obligated by, the provisions of any note purchase agreement,
indenture, note or other agreement (other than this Agreement and the other documents executed by the Agent in connection herewith).

 

    5

     

    

 

(d) Lack
of Reliance on the Agent. Independently and without reliance upon the Agent, each Secured Party, to the extent it deems appropriate,
has made and shall continue to make (i) its own independent investigation of the financial condition and affairs of the Company
and its subsidiaries in connection with such Secured Party’s purchase of Notes, the creation and continuance of the Obligations,
the transactions contemplated by the Transaction Documents, and the taking or not taking of any action in connection therewith,
and (ii) its own appraisal of the creditworthiness of the Company, and of the value of the Collateral (as defined in each Collateral
Document) from time to time, and the Agent shall have no duty or responsibility, either initially or on a continuing basis, to
provide any Secured Party with any credit, market or other information with respect thereto, whether coming into its possession
before any Obligations are incurred or at any time or times thereafter. The Agent shall not be responsible to the Company or any
Secured Party for any recitals, statements, information, financial statements, representations or warranties herein or in any
document, certificate or other writing delivered in connection herewith, or for the execution, effectiveness, genuineness, validity,
enforceability, perfection, collectability, priority or sufficiency of this Agreement, any other Collateral Document, or any other
related agreement or any contracts or insurance policies, or for the financial condition of the Company or the value of any of
the Collateral (as defined in any of the Collateral Documents), or have any duty to ascertain or be required to make any inquiry
concerning either the performance or observance of any of the terms, provisions or conditions of this Agreement, any other Collateral
Document, or any other related agreement, or the financial condition of the Company, or the value of any of the Collateral (as
defined in any Collateral Document), or the existence or possible existence or absence of any default or Event of Default under
this Agreement, Notes, any other Collateral Document, or any of the other related agreement, or the contents of any certificate,
report or other document delivered under this Agreement, any other Collateral Document, Notes or any of the other related agreement
or in connection therewith. It is acknowledged and agreed by the Secured Parties and the Company that the Agent (i) has undertaken
no analysis of this Agreement, any other Collateral Document, or the Pledged Collateral or any “Collateral” under
any other Collateral Document and (ii) has made no determination as to (x) the validity, enforceability, perfection, collectability,
priority or sufficiency of any Liens granted or purported to be granted pursuant to this Agreement or any other Collateral Document
or (y) the accuracy or sufficiency of the documents, filings, recordings and other actions taken, or to be taken, to create, perfect
or maintain the existence, perfection or priority of the Liens granted or purported to be granted pursuant to this Agreement or
any other Collateral Document. The Agent shall be entitled to assume that all Liens purported to be granted pursuant to this Agreement
and pursuant to each other Collateral Document are valid and perfected Liens having the priority intended by the Secured Parties
and this Agreement (or such other Collateral Document, as applicable).

 

    6

     

    

 

(e) Certain
Rights of the Agent. The Agent shall have the right to take any action with respect to the Collateral (as defined in the applicable
Collateral Document), on behalf of itself and all of the Secured Parties. Whenever reference is made in this Agreement or any
other Collateral Document to any action by, consent, designation, specification, requirement or approval of, notice, request or
other communication from, or other direction given or action to be undertaken or to be (or not to be) suffered or omitted by the
Agent to any amendment, waiver or other modification of this Agreement (or any other Collateral Document) to be executed (or not
to be executed) by the Agent or to any election, decision, opinion, acceptance, use of judgment, expression of satisfaction or
other exercise of discretion, rights or remedies to be made (or not to be made) by the Agent, it is understood that in all cases
the Agent shall be fully justified in failing or refusing to take any such action under this Agreement or any other Collateral
Document as it deems appropriate. This provision is intended solely for the benefit of the Agent and its successors and permitted
assigns and is not intended to and will not entitle the other parties hereto to any defense, claim or counterclaim under or in
relation to any Transaction Document, or confer any rights or benefits on any party hereto. The Agent shall be entitled to refrain
from any act or the taking of any action (including the failure to take an action) in connection herewith or from the exercise
of any power, discretion or authority vested in it hereunder or thereunder unless and until the Agent shall have received written
instructions in respect thereof from the Required Holders (or such greater number of Holders as may be expressly required herein)
and, upon receipt of such instructions from the Required Holders (or such greater number of Holders as may be expressly required
herein), the Agent shall be entitled to act or (where so instructed) refrain from action, or to exercise such power, discretion
or authority, in accordance with such instructions. The Agent may at any time solicit written confirmatory instructions from the
Required Holders (or such greater number of Holders as may be expressly required herein) or request an order of a court of competent
jurisdiction as to any action that it may be requested or required to take, or that it may propose to take, in the performance
of any of its obligations under this Agreement and each other Collateral Document. If such instructions or order are not provided
despite the Agent’s request therefor, the Agent shall be entitled to refrain from such act or taking such action and may
suspend performance of such obligations as it determines to be appropriate until it receives such instructions or order, and if
such action is taken, shall be entitled to appropriate indemnification from the Secured Parties in respect of actions to be taken
by the Agent; and the Agent shall not incur liability to any person or entity by reason of so refraining. Without limiting the
foregoing, (a) no Secured Party shall have any right of action whatsoever against the Agent as a result of the Agent acting or
refraining from acting hereunder in accordance with the terms of the Agreement, any other Collateral Document, or any other related
agreement, and the Company shall have no right to question or challenge the authority of, or the instructions given to, the Agent
pursuant to the foregoing except in the case of the gross negligence or willful misconduct of the Agent as determined by a final
judgment (not subject to further appeal) of a court of competent jurisdiction and (b) the Agent shall not be required to take
any action which the Agent believes (i) could reasonably be expected to expose it to personal liability, or (ii) require it to
expend or risk its own funds, or (iii) is contrary to this Agreement, the other Collateral Documents, the Notes, any other related
agreement or applicable law.

 

    7

     

    

 

(f) Reliance.
The Agent shall be entitled to conclusively rely, and shall be fully protected in relying, upon any writing, facsimile, resolution,
notice, statement, certificate, telex, teletype or telecopier message, cablegram, radiogram, order or other document, sent or
made by the Company, any grantor under any other Collateral Document, or any Secured Party, without being required to determine
the authenticity thereof or the correctness of any fact stated therein or the propriety or validity of service thereof, upon any
judicial order or judgment pertaining to the Agreement, the Notes, the other Collateral Documents, the Agent Fee Letter and any
other related agreement and the transactions contemplated thereunder, and, with respect to all legal matters pertaining to the
Agreement, the Notes, the other Collateral Documents, the Agent Fee Letter and any other related agreement and its duties thereunder,
upon any advice, opinion or statement of legal counsel selected by it and upon all other matters pertaining to this Agreement,
the Notes, the other Collateral Documents, the Agent Fee Letter and any other related agreement and its duties thereunder, upon
advice of independent consultants and other experts selected by it, and may assume that any Person purporting to give notice or
receipt or advice or make any statement or execute any document in connection with the provisions hereof or the other Transaction
Documents has been duly authorized to do so. Anything to the contrary notwithstanding, the Agent shall have no obligation whatsoever
to any Secured Party to assure that the Collateral (as defined herein and in any other Collateral Document) exists or is owned
by the Company (or any other grantor thereof, as applicable) or is cared for, protected or insured or that the liens granted pursuant
to this Agreement (or pursuant to any other Collateral Document) have been properly or sufficiently or lawfully created, perfected,
or enforced or are entitled to any particular priority.

 

    8

     

    

 

(g)
Limitations on Duty of Agent in Respect of Pledged Collateral.

 

(i) Beyond
its obligations under Sections 4 and 6 hereof and the exercise of reasonable care in the custody of Pledged Collateral
(or any other Collateral (as defined in any Collateral Document)) in its possession, the Agent will have no duty as to any such
Pledged Collateral (or other Collateral (as defined in any Collateral Document)) in its possession or control or in the possession
or control of any agent or bailee or any income thereon or as to preservation of rights against prior parties or any other rights
pertaining or otherwise perfecting or maintaining the perfection of any Liens on the Pledged Collateral (or other Collateral (as
defined in any Collateral Document)). The Agent will be deemed to have exercised reasonable care in the custody of the Pledged
Collateral (and all other Collateral (as defined in any Collateral Document)) in its possession if such Pledged Collateral (or
other Collateral (as defined in any Collateral Document)) is accorded treatment substantially equal to that which it accords its
own property, and the Agent will not be liable or responsible for any loss or diminution in the value of any of the Pledged Collateral
(or other Collateral (as defined in any Collateral Document)) by reason of the act or omission of any carrier, forwarding agency
or other agent or bailee selected by the Agent in good faith.

 

(ii) The
Agent will not be responsible for the existence, genuineness or value of any of the Pledged Collateral (or other Collateral (as
defined in any Collateral Document)) or for the validity, perfection, priority or enforceability of the Liens in any of the Pledged
Collateral (or other Collateral (as defined in any Collateral Document)), whether impaired by operation of law or by reason of
any action or omission to act on its part hereunder, except to the extent such action or omission constitutes gross negligence
or willful misconduct on the part of the Agent, for the validity or sufficiency of the Pledged Collateral (or other Collateral
(as defined in any Collateral Document)) or any agreement or assignment contained therein, for the validity of the title of the
Company to the Pledged Collateral (or other Collateral (as defined in any Collateral Document)), for insuring the Pledged Collateral
(or other Collateral (as defined in any Collateral Document)) or for the payment of taxes, charges, assessments or Liens upon
the Pledged Collateral (or other Collateral (as defined in any Collateral Document)) or otherwise as to the maintenance of the
Pledged Collateral (or other Collateral (as defined in any Collateral Document)). The Agent hereby disclaims any representation
or warranty to the present and future holders of the Obligations concerning the perfection of the Liens granted hereunder or in
the value of any of the Pledged Collateral (or other Collateral (as defined in any Collateral Document)).

 

    9

     

    

 

(h) Security
or Indemnity in favor of the Agent. The Agent will not be required to advance or expend any funds or otherwise incur any financial
liability in the performance of its duties or the exercise of its powers or rights hereunder unless it has been provided with
security or indemnity reasonably satisfactory to it against any and all liability or expense which may be incurred by it by reason
of taking or continuing to take such action.

 

(i) Indemnification.
To the extent that the Agent is not reimbursed and indemnified by the Company, the Secured Parties, shall severally, and not jointly,
reimburse and indemnify the Agent and its Affiliates, and each and all of their respective partners, members, shareholders, officers,
directors, employees, trustees, attorneys and agents (and any other persons with other titles that have similar functions) and
(in each case) their respective heirs, representatives, successors and assigns (each of the foregoing, an “Agent Indemnitee”),
in proportion to the outstanding amount of their respective principal amounts of the Notes on the date on which indemnification
is sought under this Section 17(i) (or, if indemnification is sought after the date upon which the Notes have been paid
in full, in proportion to the outstanding amount of their respective principal amounts of the Notes immediately prior to such
date), from and against any and all losses, claims, liabilities, obligations, damages, penalties, suits, actions, judgments, costs,
taxes, disbursements and expenses of any kind or nature whatsoever which may be imposed on, incurred by or asserted against any
Agent Indemnitee in performing its duties hereunder or under any other related agreement, or in any way relating to or arising
out of this Agreement, any other Collateral Document and any other related agreement, IN ALL CASES, WHETHER OR NOT CAUSED BY
OR ARISING, IN WHOLE OR IN PART, OUT OF THE COMPARATIVE, CONTRIBUTORY, OR SOLE NEGLIGENCE OF SUCH AGENT INDEMNITEE; provided,
no Agent Indemnitee will be entitled to indemnification hereunder of any such losses, claims, liabilities, obligations, damages,
penalties, suits, actions, judgments, costs, taxes, disbursements and expenses which result from the gross negligence or willful
misconduct of such Agent Indemnitee as determined by a final, nonappealable decision of a court of competent jurisdiction. Prior
to taking any action or further action hereunder as the Agent, the Agent may require each Secured Party to deposit with it sufficient
sums as it determines in good faith is necessary to protect the Agent for costs and expenses associated with taking such action
or further action; provided, in no event shall this sentence require any Secured Party to indemnify any Agent Indemnitee
against any liability, obligation, loss, damage, penalty, action, judgment, suit, cost, expense or disbursement in excess of an
amount in proportion to the outstanding amount of their respective principal amounts of the Notes on the date on which indemnification
is sought under this Section 17(i) (or, if indemnification is sought after the date upon which the Notes have been paid
in full, in proportion to the outstanding amount of their respective principal amounts of the Notes immediately prior to such
date); and provided further, this sentence shall not be deemed to require any Secured Party to indemnify any Agent Indemnitee
against any liability, obligation, loss, damage, penalty, action, judgment, suit, cost, expense or disbursement described in the
proviso in the immediately preceding sentence. All of the agreements in this Section 17(i) will survive and remain operative
and in full force and effect regardless of the repayment of the Obligations, the termination of this Agreement or any other Collateral
Document or the resignation or removal of the Agent.

 

    10

     

    

 

(j)
Resignation or Removal of the Agent.

 

(i) The
Agent may resign from the performance of all its functions and duties under this Agreement, the other Collateral Documents and
the other Transaction Documents at any time by giving not less than 30 days’ prior written notice to the Company and the
Secured Parties, and, subject to the appointment of a successor Agent and the acceptance of such appointment by the successor
Agent, the Agent may be removed at any time by the Secured Parties. Such resignation or removal shall take effect upon the appointment
of a successor Agent pursuant to clauses (ii) and (iii) below.

 

(ii) Upon
any such notice of resignation or removal, the Required Holders shall appoint a successor Agent hereunder.

 

(iii) If
a successor Agent shall not have been so appointed within 30 days after the retiring Agent gave notice of resignation or was
removed, the retiring Agent may, at its option, (i) appoint a successor Agent who shall serve as successor Agent until such
time, if any, as the Secured Parties appoint a successor Agent as provided above or (ii) petition any court of competent
jurisdiction or may interplead the Company and the Secured Parties in a proceeding for the appointment of a successor Agent,
and, in each cash, all fees, costs and expenses, including, but not limited to, extraordinary fees associated with the filing
of interpleader and expenses associated therewith, shall be payable by the Company on demand; provided, that, notwithstanding
the foregoing, in the case of a resignation by the Agent, if no successor Agent has been appointed by the 30th day after the
date the Agent has given notice of its resignation in accordance with clause (i) above, the Agent’s resignation shall
nevertheless become effective and the Secured Parties shall thereafter perform all of the duties of the Agent under this
Agreement and each other Collateral Document until such time, if any, as the Secured Parties appoint a successor
Agent.

 

    11

     

    

 

(k) Rights
with respect to Collateral. Each Secured Party agrees with all other Secured Parties and the Agent (i) that it shall not,
and shall not attempt to, exercise any rights with respect to its security interest in the Collateral (as defined in any Collateral
Document), whether pursuant to any other agreement or otherwise (other than pursuant to this Agreement and the other Collateral
Documents), and (ii) that such Secured Party has no other rights with respect to the Collateral (as defined in any Collateral
Document) other than as set forth in this Agreement, the other Collateral Documents, the Notes and any other related agreements.
Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such successor Agent shall thereupon succeed to
and become vested with all the rights, powers, privileges and duties of the retiring Agent and the retiring Agent shall be discharged
from its duties and obligations under this Agreement, the other Collateral Documents, and each other Transaction Document. The
retiring Agent will (at the sole expense of the Company) promptly transfer all Liens and collateral security within its possession
or control to the possession or control of the successor Agent and will execute such instruments and assignments as may be reasonably
requested by the successor Agent to transfer to the successor Agent all Liens, interests, rights, powers and remedies of the predecessor
Agent in respect of this agreement or the Pledged Collateral (or any other Collateral (as defined in any Collateral Document)).
After any retiring Agent’s resignation or removal hereunder as collateral agent, the provisions of this Agreement, including
without limitation the immunities granted to it in Sections 12, 17 and 18(j) hereof shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was Agent hereunder and any actions taken in accordance with this clause (l).”

 

(e) The
Security Agreement is hereby amended to add a new Section 19 to the end thereof that reads as follows:

 

“19 Intercreditor
Agreement; Other Terms. Each Holder hereby (i) instructs and authorizes the Agent to execute and deliver the
Intercreditor Agreement on its behalf, (ii) authorizes and directs the Administrative Agent to exercise all of the
Agent’s rights and to comply with all of its obligations under the Intercreditor Agreement, (iii) agrees that the Agent
may take actions on its behalf as is contemplated by the terms of the Intercreditor Agreement, and (iv) understands,
acknowledges and agrees that at all times following the execution and delivery of the Intercreditor Agreement such Holder
(and each of its successors and assigns) shall be bound by the terms thereof. Each Holder acknowledges that it has reviewed
and is satisfied with the terms and provisions of the Intercreditor Agreement and acknowledges and agrees that such Holder is
responsible for making its own analysis and review of the Intercreditor Agreement and the terms and provisions thereof, and
neither Agent nor any of its Affiliates makes any representation to any Holder as to the sufficiency or advisability of the
provisions contained in the Intercreditor Agreement. Each Holder further agrees that each reference in any Transaction
Document to the “Intercreditor Agreement”, any “Collateral Documents” and any “Transaction
Documents” shall be deemed to refer to the Intercreditor Agreement, the Collateral Documents, and the Transaction
Documents, each as defined herein.”

 

    12

     

    

 

6. Effectiveness.
This Amendment will become effective upon the date on which the Agent has received a counterpart hereof duly executed by each
party hereto (the “Effective Date”).

 

7. Representations
and Warranties. In order to induce the Agent and the Holders to enter into this Amendment, the Company hereby remakes all
of the representations and warranties contained in Section 6 of the Security Agreement as of the date of this Amendment (except
to the extent such representation or warranty relates to an earlier date, in which case, it is true, correct and complete as of
such earlier date). The Company’s representations and warranties in Sections 6(b) and (c) of the Security Agreement shall
apply, mutatis mutandis, to this Amendment.

 

8. Interpretation.
Except as expressly modified by this Amendment, all terms and provisions of the Security Agreement shall remain unchanged and
in full force and effect and are ratified and affirmed on the date hereof. In the event of any inconsistency between the terms
of this Amendment and the terms of the Security Agreement prior to its amendment, the terms of this Amendment shall control.

 

9. Reaffirmation.
The Company hereby acknowledges and agrees that (i) to the extent any Transaction Document or Collateral Document purports to
grant, assign or pledge to the Agent or any Holder a security interest or lien on any collateral as security for the Obligations,
such grant, assignment or pledge is hereby ratified and confirmed in all respects and (ii) the obligations secured under the Transaction
Documents and the Collateral Documents will include all Obligations, as amended by this Amendment and the Amendment Agreement,
including the Amended Notes.

 

10. Counterparts.
This Amendment may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument
and either of the parties hereto may execute this Amendment by signing any such counterpart.

 

11. Governing
Law. This Amendment shall be construed and enforced in accordance with, and all questions concerning the construction, validity,
interpretation and performance of this Agreement shall be governed by, the internal laws of the State of New York, without giving
effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than the State of New York.

 

    13

     

    

 

12. Direction.
The Holders party hereto (including, for the avoidance of doubt, the New Holders (as defined below) constituting all of the Holders
hereby (a) authorize and direct the Agent to execute and deliver (i) this Amendment, (ii) the Intercreditor Agreement (as defined
in the Security Agreement as amended hereby) and (iii) each of the other Transaction Documents to be entered into on or about
the date hereof, including, for the avoidance of doubt (a) that certain Security Agreement (Illinois Corn Processing), to be made
by Illinois Corn Processing, LLC in favor of the Agent, in substantially the form attached hereto as Exhibit A, (b) that
certain Security Agreement (Pacific Ethanol Central, LLC), to be made by Pacific Ethanol Central, LLC in favor of the Agent, in
substantially the form attached hereto as Exhibit B, (c) that certain Security Agreement (Pacific Ethanol West, LLC) (PE
Op Co.), to be made by and among Pacific Ethanol West, LLC, PE Op Co. and the Agent, in substantially the form attached hereto
as Exhibit C, (d) that certain Pledge Agreement by and among Pacific Ethanol Central, LLC, Pacific Aurora, LLC, and the
Agent, in substantially the form attached hereto as Exhibit D, (e) that certain Pledge Agreement by and among Pacific Ethanol
Central, LLC, Pacific Ethanol Pekin, LLC, and the Agent, in substantially the form attached hereto as Exhibit E, and (f)
that certain Pledge Agreement by and among Pacific Ethanol Central, LLC, Illinois Corn Processing, LLC, and the Agent, in substantially
the form attached hereto as Exhibit F, and each other Transaction Document as the Required Holders may request in writing
(which may be by email, and may be requested through their counsel by email), (b) authorize and direct the Agent to take any and
all actions as may be required or advisable to effectuate the amendments contemplated hereby and the agreements and transactions
contemplated by each of the Transaction Documents to be entered into on or about the date hereof (including, without limitation,
each of the Transaction Documents listed above and each of the mortgages and deeds of trust executed or to be executed by any
grantor in favor of the Agent for the benefit of the Secured Parties), and (c) acknowledge and agree that (i) each of the directions
in this Section 13 constitute a direction from all Holders under the provisions of Section 17 of the Security Agreement, and (ii)
Section 17(i) of the Security Agreement shall apply to any and all actions taken by the Agent in accordance with such directions.

 

13. Joinder.
Each of the Persons signatory hereto under the title “New Holders” (the “New Holders”) on the signature
pages hereof constitute certain of the holders of the Amended Notes under the Amendment Agreement and each hereby agrees to be
added as a party to the Security Agreement as a “Secured Party”. Each New Holder hereby unconditionally and irrevocably
expressly assumse, confirms, and agrees to perform and observe as a Secured Party each of the covenants, agreements, terms, conditions,
obligations, duties, promises and liabilities applicable to a “Secured Party” under the Secured Agreement (including,
without limitation, those set forth in Section 17(f) of the Security Agreement, as amended hereby) as if they were an original
signatory thereto. Each New Holder hereby agrees (i) to promptly execute and deliver any and all further documents and take such
further action as the Agent may reasonably require to effect the purpose of this Section, and (ii) that their address for notices
under the Security Agreement are as set forth under each New Holder’s signature hereof.

 

[Signature
Pages Follow]

 

    14

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the day and year first
above written.

	 	 
	 	COMPANY:
	 	 
	 	Pacific Ethanol, Inc.
	 	 
	 	By:	/s/ Neil M. Koehler
	 	Name:	Neil M. Koehler
	 	Title:	President and Chief Executive Officer

 

    15

     

    

 

	 	EXISTING AGENT:
	 	 
	 	Cortland Capital Market Services LLC, 
	 	as Existing Agent
	 	 
	 	By:	 /s/ Matthew Trybula               
	 	Name:	Matthew Trybula
	 	Title:	Associate Counsel
	 	 
	 	AGENT:
	 	 
	 	CORTLAND PRODUCTS CORP.
	 	 
	 	By:	/s/ Matthew Trybula
	 	Name:	Matthew Trybula
	 	Title:	Associate Counsel
	 	
	 	Cortland Products Corp.
	 	225 W Washington Street, 9th Floor
	 	Chicago, IL 60606
	 	Attn: Ashwinee Sawh and Legal Department
	 	Email: Cortland_Successor_Agent@cortlandglobal.com
	 	and legal@cortlandglobal.com
	 	 
	 	With a copy (which shall not constitute notice) to:
	 	 
	 	Arnold & Porter Kaye Scholer LLP
	 	250 W 55th Street
	 	New York, NY 10019
	 	Attn: Alan Glantz
	 	Email: Alan.Glantz@arnoldporter.com

 

    16

     

    

 

	 	HOLDERS:
	 	 
	 	CIF Income Partners (A), LLC
	 	 
	 	By:	BlackRock Financial Management, Inc.,
	 	its investment manager
	 	 
	 	By:	/s/ Stephen Kavulich
	 	Name:	Stephen Kavulich
	 	Title:	Director
	 	 
	 	Orange 2015 DisloCredit Fund, L.P.
	 	 
	 	By:	BlackRock Financial Management, Inc.,
	 	its investment manager
	 	 
	 	By:	/s/ Stephen Kavulich
	 	Name:	Stephen Kavulich
	 	Title:	Director
	 	 
	 	Sainsbury’s Credit Opportunities Fund, Ltd.
	 	 
	 	By:	BlackRock Financial Management, Inc.,
	 	its investment manager
	 	 
	 	By:	/s/ Stephen Kavulich
	 	Name:	Stephen Kavulich
	 	Title:	Director
	 	 
	 	Co-Investment Income Fund, L.P. – US Tax-Exempt Series
	 	 
	 	By:	BlackRock Financial Management, Inc.,
	 	its investment manager
	 	 
	 	By:	/s/ Stephen Kavulich
	 	Name:	Stephen Kavulich
	 	Title:	Director
	 	 
	 	Co-Investment Income Fund, L.P. – US Taxable Series
	 	 
	 	By:	BlackRock Financial Management, Inc.,
	 	its investment manager
	 	 
	 	By:	/s/ Stephen Kavulich
	 	Name:	Stephen Kavulich
	 	Title:	Director

 

    17

     

    

 

	 	NEW HOLDERS:
	 	
	 	CKP South LLC
	 	 
	 	By:	/s/ Philip DeSantis
	 	Name:	Philip DeSantis
	 	Title:	 
	 	 
	 	[Address for notices]
	 	
	 	Corrum Capital Global Credit Opportunities Co Investment Fund I LP
	 	 
	 	By:	/s/ Jonathan R. Mandle
	 	Name:	Jonathan R. Mandle
	 	Title:	Manager
	 	 
	 	[Address for notices]
	 	 
	 	Corrum Capital Global Credit Opportunities Fund LP
	 	 
	 	By:	/s/ Jonathan R. Mandle
	 	Name:	Jonathan R. Mandle
	 	Title:	Manager
	 	 
	 	[Address for notices]
	 	 
	 	Corrum Capital Alternative Income Fund LP
	 	 
	 	By:	/s/ Jonathan R. Mandle
	 	Name:	Jonathan R. Mandle
	 	Title:	Manager
	 	 
	 	[Address for notices]
	 	 
	 	/s/ Alfred J. De Leo
	 	Alfred J. De Leo
	 	 
	 	[Address for notices]
	 	 
	 	/s/ David Koenig
	 	David Koenig
	 	 
	 	[Address for notices]
	 	 
	 	/s/ Jonathan W. Weiss
	 	Jonatham W. Weiss
	 	 
	 	[Address for notices]
	 	 
	 	/s/ Justin S. Wohler
	 	Justin S. Wohler
	 	 
	 	[Address for notices]
	 	 
	 	/s/ Philip DeSantis
	 	Philip DeSantis
	 	 
	 	[Address for notices]

 

    18

     

    

 

EXHIBIT
A

 

[See
Attached]

 

 

 

 

 

    19

     

    

 

EXHIBIT
B

 

[See
Attached]

 

 

 

 

 

    20

     

    

 

EXHIBIT
C

 

[See
Attached]

 

 

 

 

 

    21

     

    

 

EXHIBIT
D

 

[See
Attached]

 

 

 

 

 

    22

     

    

  

EXHIBIT
E

 

[See
Attached]

 

 

 

 

 

    23

     

    

 

EXHIBIT
F

 

[See
Attached]

 

 

 

23

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