Document:

Exhibit

Exhibit 10.1
AMENDED AND RESTATED
EMPLOYMENT AGREEMENT

This Amended and Restated Employment Agreement (this “Agreement”) is made effective on July 15, 2019 (“Effective Date”), by and between Q2 Software, Inc., a Delaware corporation (“Company”), and Odus (“Boogie”) Wittenburg Jr. (“Executive”), and amends and restates that certain Employment Agreement, dated August 22, 2016, as amended.
The parties agree as follows:
1.Employment.  Company agrees to continue to employ Executive, and Executive agrees to accept such continuing employment on the terms and conditions set forth herein.
2.    Duties.
2.1    Position.  Executive is employed as Company’s Executive Vice President, Customer Experience and shall have the duties and responsibilities assigned by Company’s Chief Executive Officer.  Executive shall perform faithfully and diligently all duties assigned to Executive.  Company reserves the right to modify Executive’s position and duties at any time in its sole and absolute discretion.
2.2    Best Efforts/Full-time.  During this Agreement, Executive will (A) expend Executive’s best efforts on behalf of Company, and will abide by all policies and decisions made by Company, as well as all applicable federal, state and local laws, regulations or ordinances; (B) act in the best interest of Company at all times; and (C) devote Executive’s full business time and efforts to the performance of Executive’s assigned duties for Company. 
3.    Compensation.  
3.1    Base Salary.  As compensation for Executive’s performance of Executive’s duties hereunder, Company shall pay to Executive an initial Base Salary of $36,916.67 per month (which equates to $443,000 over a full year), to be paid in accordance with Company’s regular payroll cycle, less required deductions for federal withholding tax, social security and all other employment taxes and payroll deductions.  Executive will be eligible for increases in base salary as determined from time to time by the Company’s Board or compensation committee thereof in their respective sole discretion.  In the event Executive’s employment under this Agreement is terminated by either party, for any reason, Executive will earn the Base Salary prorated to the date of termination.
3.2    Incentive Compensation.  Executive may be eligible to receive an annual cash incentive bonus of $382,000 at target, on such terms and subject to such conditions as may be decided from time to time by the Company, less required deductions for federal withholding tax, social security and all other employment taxes and payroll deductions.  Executive must be employed by the Company at the time any annual cash incentive bonus is paid in order to be eligible for such bonus, subject to Section 7.1 hereof.  Executive will be eligible for increases in incentive compensation as determined from time to time by the Company’s Board or compensation committee thereof in their respective sole discretion.  The Company reserves the right to vary or terminate any bonus scheme in place from time to time, on a prospective basis.  Company shall pay out the annual cash incentive bonus, if any, within 60 days following the end of the year in which the bonus is earned. 
3.3    Customary Fringe Benefits.  Executive will be eligible for all customary and usual fringe benefits generally available to Executives of Company, subject to the terms and conditions of Company’s benefit plan documents and policies.  Executive shall be entitled to Paid Time Off benefits (“PTO”) subject to the terms and conditions of the Company’s PTO policy as in effect from time to time.
4.    At-Will Employment.  Executive’s employment with Company is at-will and not for any specified period and may be terminated at any time, with or without Cause (as defined below) or advance notice, by either 

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Executive or Company, although subject to the provisions of Sections 5 through 7 below.  No representative of Company, other than the Company’s Board of Directors, has the authority to alter the at-will employment relationship.  Any change to the at-will employment relationship must be by specific, written agreement signed by Executive and the Company’s Board of Directors.  Nothing in this Agreement is intended to or should be construed to contradict, modify or alter this at-will relationship.
5.    Termination.  The termination provisions of this Agreement regarding the parties' respective obligations in the event Executive's engagement is terminated are intended to be exclusive and in lieu of any other rights to which Executive may otherwise be entitled by law, in equity, or otherwise.  This Agreement, and Executive's engagement hereunder, may be terminated at any time after the Effective Date, as follows:
5.1    Termination by Mutual Consent.  This Agreement may be terminated at any time by the written mutual consent of Company and Executive.
5.2    Termination by Company For Cause.  This Agreement may be terminated by Company at any time for Cause.  For purposes of this Agreement, “Cause” is defined as: (a) acts or omissions constituting gross negligence, recklessness or willful misconduct on the part of Executive with respect to Executive’s obligations or otherwise relating to the business of Company; (b) Executive’s material breach of this Agreement or Company’s Executive Proprietary Information and Inventions Agreement (the “PRIA”); (c) Executive’s conviction or entry of a plea of nolo contendere for fraud, misappropriation or embezzlement, or any felony or crime of moral turpitude; (d) Executive’s willful neglect of duties as determined in the sole and exclusive discretion of the Company; (e) Executive is cited by the Company’s Chief Executive Officer, in writing, at least two (2) times during any 12-month period for unsatisfactory performance; (f) Executive’s failure to perform the essential functions of Executive’s position, with or without reasonable accommodation, due to a mental or physical disability; or (g) Executive’s death.   
5.3    Termination by Company Without Cause.  This Agreement may be terminated by Company, without Cause, with or without notice, by the delivery to Executive of written notice of termination.   
5.4    Resignation by Executive.  Executive shall have the right to terminate his employment hereunder by providing the Company with a notice of termination at least thirty (30) days prior to such termination. 
6.    Payments Upon Termination.  Upon termination of employment for any reason, Executive shall receive payment of his then unpaid Base Salary, pro-rated to the date of termination, as well as any other accrued, but unpaid benefits (collectively the “Accrued Compensation”).  Accrued Compensation will be paid in a lump sum on the date required under applicable law.  Except as expressly stated in this Agreement, all other employment related obligations of Company to Executive shall be automatically terminated and completely extinguished with the termination of Executive’s employment.
7.    Severance.  
7.1    Severance Payment.  In the event Company terminates Executive’s employment without Cause, Company shall provide Executive with a “Severance Payment,” equivalent to six (6) months of Executive’s then Base Salary. Such Severance Payment shall be payable in equal installments over a six (6) month period, with the first installment payment made on the first payday occurring 30 days after the termination date and the remaining installments made on the following Company paydays.  The Company’s obligation to pay and Executive’s right to receive the Severance Payment shall cease in the event of Executive’s breach of any of his obligations under this Agreement or the PRIA.  The Company’s obligation to provide Executive with the Severance Payment is conditioned precedent upon Executive’s execution of a full general release in a form acceptable to the Company and such release has become effective in accordance with its terms prior to the 30th day following the termination date.  For the sake of clarity, Executive shall not be eligible to receive severance in connection with any other form of termination, other than a termination without Cause.    

7.2    Application of Section 409A.  

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(a)    Notwithstanding anything set forth in this Agreement to the contrary, no amount payable pursuant to this Agreement which constitutes a “deferral of compensation” within the meaning of the Treasury Regulations issued pursuant to Section 409A (the “Section 409A Regulations”) of the Internal Revenue Code of 1986, as amended (the “Code”), and which is payable upon termination of employment, shall be paid unless and until Executive has incurred a “separation from service” within the meaning of the Section 409A Regulations.  Furthermore, to the extent that Executive is a “specified Executive” within the meaning of the Section 409A Regulations as of the date of Executive’s separation from service, no amount that constitutes a deferral of compensation which is payable on account of Executive’s separation from service shall be paid to Executive before the date (the “Delayed Payment Date”) which is the first day of the seventh month after the date of Executive’s separation from service or, if earlier, the date of Executive’s death following such separation from service.  All such amounts that would, but for this Section, become payable prior to the Delayed Payment Date will be accumulated and paid on the Delayed Payment Date.
(b)    The Company intends that income provided to Executive pursuant to this Agreement will not be subject to taxation under Section 409A of the Code.  The provisions of this Agreement shall be interpreted and construed in favor of satisfying any applicable requirements of Section 409A of the Code.  However, the Company does not guarantee any particular tax effect for income provided to Executive pursuant to this Agreement.  In any event, except for the Company’s responsibility to withhold applicable income and employment taxes from compensation paid or provided to Executive, the Company shall not be responsible for the payment of any applicable taxes on compensation paid or provided to Executive pursuant to this Agreement.  
(c)    Notwithstanding anything herein to the contrary, the reimbursement of expenses or in-kind benefits provided pursuant to this Agreement shall be subject to the following conditions: (1) the expenses eligible for reimbursement or in-kind benefits in one taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits in any other taxable year; (2) the reimbursement of eligible expenses or in-kind benefits shall be made promptly, subject to the Company’s applicable policies, but in no event later than the end of the year after the year in which such expense was incurred; and (3) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit.
(d)    For purposes of Section 409A of the Code, the right to a series of installment payments under this Agreement shall be treated as a right to a series of separate payments.
8.    Business Expenses.  Executive will be reimbursed for all reasonable, out-of-pocket business expenses incurred in the performance of Executive’s duties on behalf of Company.  To obtain reimbursement, expenses must be submitted promptly with appropriate supporting documentation in accordance with Company’s policies.
9.    No Conflict of Interest.  During Executive’s employment with Company and at all times Executive is receiving Severance Payments pursuant to this Agreement,  Executive must not engage in any work, paid or unpaid, that creates an actual conflict of interest with Company.  Such work shall include, but is not limited to, directly or indirectly competing with Company in any way, or acting as an officer, director, executive, consultant, stockholder, volunteer, lender, or agent of any business enterprise of the same nature as, or which is in direct competition with, the business in which Company is now engaged or in which Company becomes engaged during Executive’s employment with Company, as may be determined by the Board in its sole discretion.  If Company believes such a conflict exists during the term of this Agreement, Company may ask Executive to choose to discontinue the other work or resign employment with Company.  In addition, Executive agrees not to refer any client or potential client of Company to competitors of Company, without obtaining Company’s prior written consent, during Executive’s employment and any period of time Executive is receiving Severance Payments pursuant to this Agreement.
10.    Confidentiality and Proprietary Rights.  Executive agrees to continue to abide by the PRIA and any nondisclosure or other policies or obligations of Executive to Company or other affiliated entities, each which PRIA and other policies and obligations is incorporated herein by reference.
11.    Injunctive Relief.  Executive acknowledges that Executive’s breach of the covenants contained in Sections 9-10 (collectively “Covenants”) would cause irreparable injury to Company and agrees that in the event of 

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any such breach, Company shall be entitled to seek temporary, preliminary and permanent injunctive relief without the necessity of proving actual damages or posting any bond or other security.
12.    No Violation of Rights of Third Parties.  During Executive’s employment with Company, Executive will not (a) breach any agreement to keep in confidence any confidential or proprietary information, knowledge or data acquired by Executive prior to Executive’s employment with Company or (b) disclose to Company, or use or induce Company to use, any confidential or proprietary information or material belonging to any previous employer or any other third party.  Executive is not currently a party, and will not become a party, to any other agreement that is in conflict, or will prevent Executive from complying, with this Agreement.
13.    General Provisions.
13.1    Successors and Assigns.  The rights and obligations of Company under this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of Company.  Executive shall not be entitled to assign any of Executive’s rights or obligations under this Agreement.
13.2    Waiver.  Either party’s failure to enforce any provision of this Agreement shall not in any way be construed as a waiver of any such provision, or prevent that party thereafter from enforcing each and every other provision of this Agreement.
13.3    Severability.  In the event any provision of this Agreement is found to be unenforceable by a court of competent jurisdiction, such provision shall be deemed modified to the extent necessary to allow enforceability of the provision as so limited, it being intended that the parties shall receive the benefit contemplated herein to the fullest extent permitted by law.  If a deemed modification is not satisfactory in the judgment of such court, the unenforceable provision shall be deemed deleted, and the validity and enforceability of the remaining provisions shall not be affected thereby.
13.4    Interpretation; Construction.  The headings set forth in this Agreement are for convenience only and shall not be used in interpreting this Agreement.  This Agreement has been drafted by legal counsel representing Company, but Executive has participated in the negotiation of its terms.  Furthermore, Executive acknowledges that Executive has had an opportunity to review and revise the Agreement and have it reviewed by legal counsel, if desired, and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement.
13.5    Governing Law.  This Agreement will be governed by and construed in accordance with the laws of the United States and the State of Texas.  Each party consents to the jurisdiction and venue of the state or federal courts in Travis County, Texas, if applicable, in any action, suit, or proceeding arising out of or relating to this Agreement.
13.6    Notices.  Any notice required or permitted by this Agreement shall be in writing and shall be delivered as follows with notice deemed given as indicated:  (a) by personal delivery when delivered personally; (b) by overnight courier upon written verification of receipt; (c) by telecopy, facsimile, or e-mail transmission upon acknowledgment of receipt of electronic transmission; or (d) by certified or registered mail, return receipt requested, upon verification of receipt.  Notice shall be sent to the addresses set forth below, or such other address as either party may specify in writing
13.7    Third Party Beneficiary.  The parties agree that Q2 Holdings, Inc. (“Q2H”) shall be a third party beneficiary to this Agreement, but Q2H shall have no duties or obligations under this Agreement.
13.8    Survival.  Sections 9 (“No Conflict of Interest”), 10 (“Confidentiality and Proprietary Rights”), 11 (“Injunctive Relief”), 12 (“No Violation of Rights of Third Parties”), 13 (“General Provisions”) and 14 (“Entire Agreement”), and 15 (“Voluntary Agreement”) of this Agreement shall survive Executive’s employment by Company.

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14.    Entire Agreement.  This Agreement and the PRIA constitute the entire agreement among the parties relating to this subject matter and supersedes all prior or simultaneous representations, discussions, negotiations, and agreements, whether written or oral, including the offer letter between Company and Executive dated June 13, 2016.  This Agreement may be amended or modified only with the written consent of Executive and Company.  No oral waiver, amendment or modification will be effective under any circumstances whatsoever and any such oral waiver, amendment or modification will be null and void.
15.    Voluntary Agreement. Executive hereby represents and warrants that, prior to signing below, Executive has had the opportunity to consult with independent legal counsel of Executive's choice, has read this document in its entirety and fully or satisfactorily understands its content and effect, and that Executive has not been subject to any form of duress or coercion in connection with this Agreement, is completely satisfied with the terms reflected in this Agreement, and, accordingly, knowingly makes this Agreement and agrees to be bound as described in this Agreement.
[Signature page follows.]

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THE PARTIES TO THIS AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND EACH AND EVERY PROVISION CONTAINED HEREIN. WHEREFORE, THE PARTIES HAVE EXECUTED THIS AGREEMENT ON THE DATES SHOWN BELOW.

Dated: 7/15/19        /s/ Odus Wittenburg, Jr.    
Odus (“Boogie”) Wittenburg Jr.

Q2 Software, Inc. 

Dated: 7/15/19        By:/s/ Kim Rutledge    

Name: Kim Rutledge    

Title: Senior Vice President, People    

SIGNATURE PAGE TO EMPLOYMENT AGREEMENTExhibit 10.1

 

EXECUTION VERSION 

 

AMENDMENT NO. 5

TO

CREDIT AGREEMENT AND OTHER LOAN DOCUMENTS

 

THIS AMENDMENT NO.
5 TO CREDIT AGREEMENT AND OTHER LOAN DOCUMENTS, dated as of July 15, 2019 (this “Agreement”), is entered into
by and between PACIFIC ETHANOL PEKIN, LLC, a limited liability company organized and existing under the laws of Delaware (“Company”),
COMPEER FINANCIAL, PCA, a federally-chartered instrumentality of the United States, successor by merger to 1st Farm
Credit Services, PCA (“Lender”), and COBANK, ACB, a federally-chartered instrumentality of the United States
(“Agent”). Capitalized terms not defined herein shall have the meanings set forth in the Credit Agreement.

 

BACKGROUND:

 

WHEREAS, the
Company, Lender and Agent have entered into that certain Credit Agreement dated as of December 15, 2016 (as amended, restated,
modified or otherwise supplemented from time to time, collectively the “Credit Agreement”) and the other Loan
Documents;

 

WHEREAS, the
Company has requested that, as of the Effective Date, the Credit Agreement and certain other Loan Documents be amended as herein
provided; and

 

WHEREAS, Agent
and Lender are willing, subject to the terms and conditions hereinafter set forth, to make such amendments;

 

NOW, THEREFORE,
in consideration of the agreements herein contained, the parties hereby agree as follows:

 

ARTICLE
1Definitions.

 

1.1 Certain
Definitions. The following terms when used in this Agreement shall have the following meanings:

 

“Accounts Receivable Amount”
means, at any given time, the aggregate dollar amount of all accounts receivable then owing to the Company by PEC.

 

“Agent” is defined in
the preamble to this Agreement.

 

“Agreement” is defined
in the preamble to this Agreement.

 

“Company” is defined
in the preamble to this Agreement.

 

“Compliance Conditions”
is defined in Section 2.5.

 

“Compliance Date” is
defined in Section 2.5.

 

“Credit Agreement” is
defined in the first recital to this Agreement.

 

“Deferral Period” means
that period of time commencing on the Effective Date and terminating on the Deferral Period Termination Date.

 

“Deferral Period Termination Date”
means that date which is the earlier of (a) 11:59 p.m. (Mountain time) on November 15, 2019 or (b) the occurrence of an Event of
Default under the Loan Documents (excluding therefrom, however, the Excluded Events, the occurrence of which, whether prior to
or during the Deferral Period, shall not constitute an Event of Default during the Deferral Period).

 

     

     

    

 

“Effective Date” is
defined in Article 5.

 

“Excluded Events” means
those matters identified in Section 2.1 below.

 

“Lender” is defined
in the preamble to this Agreement.

 

“PAL” means Pacific
Aurora, LLC, a Delaware limited liability company.

 

“PEC” means Pacific
Ethanol Central, LLC, a Delaware limited liability company.

 

“PEC Contribution Amount”
means the dollar amount representing the sum of the following amounts: (a) the Working Capital Adjustment Amount, plus (b)
the Accounts Receivable Amount, plus (c) $12,000,000.

 

“PEC Contribution Amount Certificate”
means a certificate of the Company, in form and content reasonably acceptable to Agent and certified by an Authorized Officer,
(A) setting forth the calculation of the PEC Contribution Amount as of the date of delivery of such certificate to Agent, (B) certifying
that no Event of Default has occurred and is continuing as of the date of delivery of such certificate to Agent (other than may
have been caused by the Excluded Events), and (C) attaching documentary proof of the Company’s receipt of the PEC Contribution
Amount in the amount calculated.

 

“Working Capital Adjustment Amount”
means the dollar amount representing the difference of the following amounts: (a) $30,000,000, minus (b) the dollar amount
for Working Capital calculated on the latest Compliance Certificate delivered by the Company to Agent.

 

1.2 Other
Definitions. Unless otherwise defined or the context otherwise requires, terms used herein (including in the preamble and recitals
hereto) have the meanings provided for in the Credit Agreement.

 

ARTICLE
2Waivers; Deferral Period.

 

2.1 Agent
and Lender hereby agree:

 

		(a)	pending receipt of the PEC Contribution Amount, to temporarily waive the Company’s obligation
to comply with (i) the covenants contained in Section 8.1 of the Credit Agreement for the periods ending December 31, 2018 and
January 31, 2019, and (ii) the covenant contained in Section 8.2 of the Credit Agreement for the period ending December 31, 2018;

 

		(b)	pending receipt of the PEC Contribution Amount, to temporarily waive any Event of Default which
could otherwise be declared prior to the occurrence of the Deferral Period Termination Date as the result of any failure of the
Company to collect any account receivable from any Affiliate of the Company within ten (10) Business Days after such account receivable
arises; and

 

		(c)	to defer until the occurrence of the Deferral Period Termination Date certain principal payments
as provided in Section 2.1(c) of the Credit Agreement (described below).

 

2.2 If
the Company (a) receives payment in full of the PEC Contribution Amount from PEC prior to the occurrence of the Deferral Period
Termination Date, and (b) delivers the PEC Contribution Amount Certificate to Agent within two (2) Business Days after receipt
of the PEC Contribution Amount (but in no event later than the Deferral Period Termination Date), then (x) the temporary waivers
set forth in Sections 2.1(a) and (b) above shall become permanent waivers, and (y) Agent and Lender shall waive compliance with
the covenant contained in Section 8.2 of the Credit Agreement for the period ending December 31, 2019. Otherwise, the temporary
waivers set forth in Sections 2.1(a) and (b) above shall immediately and automatically expire upon the occurrence of the Deferral
Period Termination Date without the need for any notice to the Company or any further action by Agent or Lender.

 

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2.3 At
all times prior to the occurrence of the Deferral Period Termination Date, Agent agrees not to exercise any rights or remedies
granted under the Loan Documents or at law solely on account of any of the matters temporarily waived or otherwise deferred pursuant
to Section 2.1 above.

 

2.4 Subject
only to satisfaction of the Compliance Conditions, immediately upon (and at all times after) the occurrence of the Deferral Period
Termination Date, Agent and the Lending Parties shall have the full right and power to exercise all rights and remedies granted
under the Loan Documents and at law on account of the occurrence and continuance of an Event of Default, including with respect
to those matters which were temporarily waived or otherwise deferred pursuant to Section 2.1 above.

 

2.5 In
the event that, prior to the Deferral Period Termination Date, the conditions set forth in clauses (a) and (b) of Section 2.2 above
are satisfied and the deferred payments have been made as provided in Section 2.1(c) of the Credit Agreement (the “Compliance
Conditions”), then, so long as no other Event of Default has occurred and is then continuing (excluding those arising
out of an Excluded Event), the Company shall be deemed in compliance with the Loan Documents (the date prior to the Deferral Period
Termination Date upon which all of the foregoing occur being the “Compliance Date”).

 

ARTICLE
3Amendments.

 

Effective on (and subject to the occurrence
of) the Effective Date, the Credit Agreement and certain other Loan Documents are amended as follows:

 

3.1 Amendment
to Section 2.1(c) of the Credit Agreement. Section 2.1(c) of the Credit Agreement is hereby amended in its entirety to read
as follows:

 

(c) Deferred
Principal Payments. Payment of the principal installments payable under the Term Note on February 20, 2019 and May 20, 2019
shall be deferred to (and shall be immediately due and payable upon) the Deferral Period Termination Date. All other principal
installments payable under the Term Note prior to the occurrence of the Deferral Period Termination Date (including, without limitation,
the principal installment payable on August 20, 2019) shall remain due and payable upon their respective payment dates.

 

3.2 Amendment
to Section 7.7 of the Credit Agreement. Section 7.7 of the Credit Agreement is hereby amended in its entirety to read as follows:

 

7.7 Dividends
and Related Distributions. The Company shall not, and shall not permit any of its Subsidiaries to, make or pay, or agree to
become or remain liable to make or pay, any dividend or other distribution of any nature (whether in cash, property, securities
or otherwise) on account of or in respect of its shares of capital stock, partnership interests or limited liability company interests
or on account of the purchase, redemption, retirement or acquisition of its shares of capital stock (or warrants, options or rights
therefor), partnership interests or limited liability company interests, except that the following shall be permitted only after
the occurrence (if ever) of the Compliance Date: (a) an annual dividend or other distribution payable by the Company to its members
with respect to any fiscal year of the Company ending on or after December 31, 2017; provided that (i) the amount of such dividend
or other distribution does not exceed 40% of the net income of the Company for such fiscal year, (ii) the Company has delivered
its audited financial statements for such fiscal year to CoBank in accordance with Section 6.1(b), (iii) such annual dividend or
other distribution is made prior to the April 30th first occurring after the end of such fiscal year, (iv) the Working
Capital of the Consolidated Group was $20,000,000 or more as of the last day of such fiscal year before any such annual dividend
or other distribution was proposed to be made pursuant to this Section 7.7, would have been $20,000,000 or more as of the last
day of such fiscal year after giving pro forma effect to the making of any such annual dividend or other distribution pursuant
to this Section 7.7 as of the last day of such fiscal year and will be $20,000,000 or more immediately after any such annual dividend
or other distribution is actually made pursuant to this Section 7.7 and (v) no Event of Default or Default has occurred or would
result therefrom; and (b) periodic dividends or other distributions payable by the Company to its members after December 31, 2017;
provided that (i) the Working Capital of the Consolidated Group was $26,000,000 or more as of the last day of the most recently-reported
calendar month before any such periodic dividend or other distribution was proposed to be made pursuant to this Section 7.7, would
have been $26,000,000 or more as of the last day of such calendar month after giving pro forma effect to the making of any such
periodic dividend or other distribution pursuant to this Section 7.7 as of the last day of such calendar month and will be $26,000,000
or more immediately after any such periodic dividend or other distribution is actually made pursuant to this Section 7.7 and (ii)
no Event of Default or Default has occurred or would result therefrom .

 

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3.3 Amendments
to Annex A to the Credit Agreement.

 

(a) Annex
A to the Credit Agreement is hereby amended by adding each of the following definitions as a new definition:

 

“Fifth
Amendment” means Amendment No. 5 to Credit Agreement and Other Loan Documents, executed by the Company, Agent, and Lender.

 

“Fifth
Amendment Date” means the “Effective Date” of the Fifth Amendment.

 

“PEC”
has the meaning set forth in the Fifth Amendment.

 

(b) Annex
A to the Credit Agreement is hereby amended by deleting the definition of “Compliance Date” and substituting the following
definition in its place:

 

“Compliance
Date” has the meaning set forth in Section 2.5 of the Fifth Amendment.

 

(c) Annex
A to the Credit Agreement is hereby amended by deleting the definition of “Deferral Period Termination Date” and substituting
the following definition in its place:

 

“Deferral
Period Termination Date” has the meaning set forth in the Fifth Amendment.

 

(d) Annex
A to the Credit Agreement is hereby amended by deleting the definition of “Loan Documents” and substituting the following
definition in its place:

 

“Loan
Documents” means this Agreement, each Note, the Environmental Indemnity and Reimbursement Agreement, each Interest Rate
Hedge, the PEC Guaranty, the PEC Pledge Agreement, the PEC Security Agreement, the Fourth Amendment, the Fifth Amendment, and each
other agreement, guaranty, security agreement, pledge, mortgage, deed of trust, instrument, agreement, certificate, application,
invoice and document executed or delivered in connection herewith or therewith, each as amended or as amended and restated from
time to time.

 

ARTICLE
4Representations and Warranties; Acknowledgments.

 

4.1 In
order to induce Agent and Lender to grant the deferrals provided for in Article 2 and make the amendments provided for in Article
3, the Company hereby represents and warrants to Agent and the Lending Parties as of the Effective Date that:

 

(a) The
recitals set forth above are true, complete, accurate, and correct in all material respects (unless qualified by materiality, in
which case they shall be true and correct in all respects) and are part of this Agreement, and such recitals are incorporated herein
by this reference;

 

(b) Except
with respect to any representations and warranties related to the Excluded Events, all representations and warranties made and
given by the Company in the Loan Documents are true, complete, accurate, and correct in all material respects (unless qualified
by materiality, in which case they shall be true and correct in all respects), as if given on the Effective Date (or, as to representations
and warranties that specifically refer to an earlier date, as of such earlier date) after giving effect to this Agreement;

 

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(c) The
Company has no claims, offsets, rights of recoupment, counterclaims, or defenses (other than payment) with respect to: (a) the
payment of any amount due under the Loans and the Loan Documents; (b) the performance of the Company’s obligations under
the Loan Documents; or (c) the liability of the Company under the Loan Documents;

 

(d) Agent
and the Lending Parties: (i) have not breached any duty to the Company in connection with the Loans or the Loan Documents; and
(ii) have fully performed all obligations they may have had or now have to the Company;

 

(e) The
Company has had the assistance of independent counsel of its own choice, or has had the opportunity to retain such independent
counsel, in reviewing, discussing, and considering all the terms of this Agreement. Before execution of this Agreement, the Company
has had adequate opportunity to make whatever investigation or inquiry it may deem necessary or desirable in connection with the
subject matter of this Agreement;

 

(f) The
Company is not acting in reliance on any representation, understanding, or agreement from or with Agent or the Lending Parties
not expressly set forth herein. The Company acknowledges that none of Agent or the Lending Parties has made any representation
with respect to the subject of this Agreement except as expressly set forth herein. The Company has executed this Agreement as
its free and voluntary act, without any duress, coercion, or undue influence exerted by or on behalf of any Person;

 

(g) All
interest or other fees or charges which have been imposed, accrued or collected by Agent under the Loan Documents or in connection
with the Loans through the date of this Agreement, and the method of computing the same, were and are proper and agreed to by the
Company, and were properly computed and collected;

 

(h) This
Agreement is not intended by the parties to be a novation of the Loan Documents and, except as expressly waived, deferred or otherwise
modified herein, all terms, conditions, rights, and obligations as set out in the Loan Documents are hereby reaffirmed and shall
otherwise remain in full force and effect as originally written and agreed;

 

(i) Notwithstanding
anything to the contrary in this Agreement, except as waived, deferred or modified herein, the Loan Documents are in full force
and effect in accordance with their respective terms, remain legal, valid and binding obligations of the Company that are enforceable
in accordance with their respective terms, have not been modified or amended (except in written amendments executed by the parties),
and are hereby reaffirmed and ratified by the Company;

 

(j) All
information provided by the Company (or any of its agents or representatives) to Agent or the Lending Parties prior to the Effective
Date is true, correct and complete in all material respects as of the date provided and does not contain any untrue statements
of fact or omit to state a fact necessary to make the statements made not misleading in any material respect;

 

(k) All
financial statements delivered by the Company (or any of its agents or representatives) to Agent or the Lending Parties prior to
the Effective Date are true and correct in all material respects and fairly present the financial condition of the Company;

 

(l) As
of the Effective Date, the Company has delivered to Agent all statements, notices, certificates, projections, updates, and other
information required under Article 6 of the Credit Agreement;

 

(m) The
execution and delivery of this Agreement and the performance by the Company of its obligations hereunder are within the corporate
or company powers and authority of the Company, have been duly authorized by all necessary corporate action, and do not and will
not contravene or conflict with the charter or by-laws of the Company;

 

    5

     

    

 

(n) This
Agreement has been duly executed and delivered by the Company and constitutes the legal, valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms, covenants, and conditions; and

 

(o) After
giving effect to this Agreement, no Default or Event of Default (other than related to any Excluded Event) has occurred and is
continuing.

 

4.2 In
order to induce Agent and Lender to grant the deferrals provided for in Article 2 and make the amendments provided for in Article
3, the Company hereby represents and warrants to Agent and the Lending Parties that (a) as of the Effective Date, the Accounts
Receivable Amount is not greater than $18,000,000, and (b) at no time during the Deferral Period will the Accounts Receivable Amount
exceed $18,000,000.

 

4.3 In
order to induce Agent and Lender to grant the temporary waivers and deferrals provided for in Article 2 and make the amendments
provided for in Article 3, the Company hereby ratifies and confirms all of the terms, covenants and conditions set forth in the
Loan Documents as modified herein and hereby agrees, acknowledges and reaffirms that (a) the Loan Documents as modified herein
constitute legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their respective
terms, covenants, and conditions, (b) the Company remains unconditionally liable to Agent and the Lending Parties in accordance
with the respective terms, covenants, and conditions set forth in the Loan Documents as modified herein, (c) Agent and Lender have
valid, duly perfected, fully enforceable Liens on the Collateral, (d) all Liens heretofore granted to Agent and Lender in the Collateral
continue in full force and effect and secure the Obligations, (e) the Company shall execute and deliver to Agent and the Lending
Parties any and all agreements and other documentation and to take any and all actions reasonably requested by Agent and the Lending
Parties at any time to assure the perfection, protection, priority, and enforcement of Agent’s and Lender’s rights
under the Loan Documents (including this Agreement) with respect to all such Liens (but without any increase to the obligations
or liabilities of the Company under the Loan Documents), and (f) as of July 15, 2019, the amount of the Obligations owing under
the Loan Documents (exclusive of attorneys’ fees and other fees, expenses, advances, and costs) totaled $75,678,895.83, consisting
of (i) unpaid principal of $43,000,000.00 and accrued, unpaid interest of $389,233.61 on the Term Loan, and (ii) unpaid principal
of $32,000,000.00 and accrued, unpaid interest of $289,662.22 on the Revolving Term Loan.

 

ARTICLE
5Conditions to Effectiveness.

 

This Agreement shall become effective on
such date (the “Effective Date”) when each of the following conditions has been satisfied:

 

5.1 Representations
and Warranties. All covenants, representations and warranties made by the Company pursuant to Article 4 shall be true and correct.

 

5.2 Updated
Schedules. Agent shall have received updated schedules to the Credit Agreement in accordance with Section 6.11 of the Credit
Agreement.

 

5.3 Insurance
Certificates. Agent shall have received current insurance certificates for all insurance policies maintained by the Company.

 

5.4 Other
Requests. Agent shall have received such other certificates, instruments, documents, agreements, information and reports as
may be requested by Agent, in form and substance acceptable to Agent.

 

5.5 Reimbursement
of Fees/Expenses. The Company shall have paid all out-of-pocket fees and expenses of Agent and the Lending Parties (including
legal and audit fees) that accrued in relation to the Loan Documents, including, without limitation, all out-of-pocket fees and
expenses incurred in connection with the preparation, drafting, negotiation, implementation of this Agreement.

 

5.6 Amendment
Fee. Agent shall have received a non-refundable amendment fee of $50,000.

 

    6

     

    

 

5.7 Required
Consents, etc. The Company shall have delivered to Agent all consents, authorizations and amendments determined by Agent to
be necessary to ensure the enforceability of the Loan Documents.

 

Upon the delivery by Agent of a fully executed
copy of this Agreement to the Company, the conditions set forth above shall be deemed satisfied and the Effective Date shall be
deemed to have occurred as of the date so delivered.

 

ARTICLE
6Release.

 

As a material part of
the consideration for Agent and Lender entering into this Agreement, the Company agrees as follows (the “Release Provision”)

 

6.1 The
Company hereby releases and forever discharges Agent and the Lender Parties and each such parties’ respective predecessors,
successors, assigns, participants, officers, managers, directors, shareholders, employees, agents, attorneys, representatives,
parent corporations, subsidiaries, and affiliates (hereinafter all of the above collectively referred to as “Released
Group”), jointly and severally, from any and all claims, counterclaims, demands, damages, debts, agreements, covenants,
suits, contracts, obligations, liabilities, accounts, offsets, rights, actions, and causes of action of any nature whatsoever,
including, without limitation, all claims, demands, and causes of action for contribution and indemnity, whether arising at law
or in equity, whether presently possessed or possessed in the future, whether known or unknown, whether liability be direct or
indirect, liquidated or unliquidated, whether presently accrued or to accrue hereafter, whether absolute or contingent, foreseen
or unforeseen, and whether or not heretofore asserted, and including whether arising from the negligence (but not the gross negligence
or willful misconduct) of any of the Released Group, which the Company may have or claim to have against any of the Released Group,
in each case only to the extent arising or accruing prior to and including the Effective Date.

 

6.2 The
Company agrees not to sue any of the Released Group or in any way assist any other person or entity in suing any of the Released
Group with respect to any claim released herein. This Release Provision may be pleaded as a full and complete defense to, and may
be used as the basis for an injunction against, any action, suit, or other proceeding which may be instituted, prosecuted, or attempted
in breach of the release contained herein.

 

6.3 The
Company is the sole owner of the claims released by the Release Provision, and the Company has not heretofore conveyed or assigned
any interest in any such claims to any other person or entity. The Company understands that the Release Provision was a material
consideration in the agreement of Agent and Lender to enter into this Agreement.

 

6.4 It
is the express intent of the Company that the release and discharge set forth in the Release Provision be construed as broadly
as possible in favor of the Released Group so as to foreclose forever the assertion by the Company of any claims released hereby
against any of the Released Group. If any term, provision, covenant, or condition of the Release Provision is held by a court of
competent jurisdiction to be invalid, illegal, or unenforceable, the remainder of the provisions shall remain in full force and
effect.

 

ARTICLE
7Miscellaneous.

 

7.1 Loan
Document Pursuant to Credit Agreement. This Agreement is a Loan Document executed pursuant to the Credit Agreement. Except
as expressly amended hereby, all of the representations, warranties, terms, covenants and conditions contained in the Credit Agreement
and each other Loan Document shall remain unamended and otherwise unmodified and in full force and effect.

 

7.2 Limitation
of Amendments. The temporary waivers and deferrals granted in Article 2 and the amendments provided in Article 3 shall be limited
precisely as provided for therein and shall not be deemed to be a waiver of, amendment of, consent to or modification of any other
term or provision of the Credit Agreement or any term or provision of any other Loan Document or of any transaction or further
or future action on the part of the Company which would require the consent of Agent or the Lending Parties under the Credit Agreement
or any other Loan Document.

 

7.3 Collateral.
To the extent any Collateral is personal property, the Company hereby renounces and waives all rights that are waivable under Article
9 of the Uniform Commercial Code (the “UCC”) of any jurisdiction in which any Collateral may now or hereafter
be located. The Company also hereby acknowledges and agrees that a public sale shall constitute a commercially reasonable manner
for the disposition of the Collateral.

 

7.4 Counterparts;
Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto in different counterparts),
each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement
shall become effective when it shall have been executed by Agent and when Agent shall have received counterparts hereof that, when
taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature page
of this Agreement by telecopy or email shall be as effective as delivery of a manually executed counterpart of this Agreement.

 

7.5 Incorporation
of Credit Agreement Provisions. The provisions of Article 11 of the Credit Agreement shall apply to this Agreement, mutatis
mutandis.

 

[Signature
Pages Follow]

 

    7

     

    

 

[SIGNATURE PAGE TO CREDIT AGREEMENT
AMENDMENT]

 

IN WITNESS WHEREOF,
the parties hereto, by their Authorized Officers, have executed this Agreement as of the date first set forth above.

 

	 	COMPANY:
	 	 
	 	
        PACIFIC ETHANOL PEKIN, LLC

	 	 
	 	By:	/s/ Bryon T. McGregor
	 	Name: 	Bryon T. McGregor
	 	Title:	Chief Financial Officer

 

     

     

    

 

[SIGNATURE PAGE TO CREDIT AGREEMENT
AMENDMENT]

 

IN WITNESS WHEREOF,
the parties hereto, by their Authorized Officers, have executed this Agreement as of the date first set forth above.

 

	 	LENDER:
	 	 
	 	COMPEER FINANCIAL, PCA
	 	 
	 	By:	/s/
    Corey J. Wadlinger
	 	Name: 	Corey J. Wadlinger
	 	Title:	Managing
    Director 

 

     

     

    

 

[SIGNATURE PAGE TO CREDIT AGREEMENT
AMENDMENT]

 

IN WITNESS WHEREOF,
the parties hereto, by their Authorized Officers, have executed this Agreement as of the date first set forth above.

 

	 	COBANK, ACB
	 	 
	 	By:	/s/ Justin A. Barr
	 	Name: 	Justin A. Barr
	 	Title:	Vice President

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