Document:

Exhibit 10.2

 

CONSULTING AGREEMENT

 

THIS CONSULTING AGREEMENT (this “Agreement”) is made and entered into by and between Brookline Bank (the “Bank”), a Massachusetts chartered savings bank and a wholly-owned subsidiary of Brookline Bancorp, Inc., and Anthony G. Nuzzo (“Consultant”) (collectively referred to as the “Parties”) as of the 20th day of September, 2017 to become effective as of the Effective Time (as defined below).

 

Background Statements:

 

1.             Brookline Bancorp, Inc. (the “Company”) and First Commons Bank, N.A. (“First Commons”), a national bank, entered into an Agreement and Plan of Merger, dated as of September 20, 2017, (the “Merger Agreement”).  The Merger Agreement provides for the merger of First Commons with and into the Bank (the “Merger”).  As used in this Agreement, the term “Effective Time” shall mean the time at which the Merger is effective, as provided in the Merger Agreement.  Any capitalized term used in this Agreement and not otherwise defined shall have the meaning set forth in the Merger Agreement.

 

2.             First Commons was chartered on July 22, 2009 and opened for business on that date.  Consultant was the primary organizer of First Commons, and at all times since its formation has served as its Chairman, President and Chief Executive Officer.  In those roles, Consultant has been the executive officer of First Commons primarily responsible for the development of depositor and borrower relationships, and has personal relationships with a significant portion of the customers of First Commons.  In addition, Consultant has personally interviewed and participated in the hiring of each First Commons employee.

 

3.             In the Severance Pay Agreement between the Company and Consultant, dated as of September 20, 2017, Consultant and the Company agreed that Consultant’s employment by First Commons and his positions as Chairman, President and Chief Executive Officer of First Commons will be terminated as of the Effective Time (the “Termination Date”).

 

4.             The Parties acknowledge and agree that Consultant’s termination of employment on the Termination Date was intended to be a “separation from service” by Consultant within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).

 

5.             The Bank desires to assure itself of the continued availability of Consultant’s services as provided in this Agreement in order to help facilitate an effective integration of First Commons’ customers and employees, including, without limitation, serving as mentor to Charles R. Shediac and Karen Cohn, who as of the date of this Agreement are the Chief Lending Officer and Senior Vice President/Senior Loan Officer, respectively, of First Commons and whose successful integration after the Effective Time is important to the Bank.

 

NOW THEREFORE, in consideration of the mutual agreements herein contained, and upon the other terms and conditions hereinafter provided, the Bank and Consultant agree as follows:

 

 

1.             Engagement.  Commencing on the Effective Time, the Bank wishes to engage Consultant, and Consultant accepts engagement as a consultant, in accordance with the terms and conditions set forth below.

 

2.             Nature and Scope of Engagement.

 

(a)           During the Term (as defined below in Section 4) of this Agreement, Consultant shall be an independent contractor of the Bank and shall, at the request of the Bank, provide services relating to the post-closing integration of First Commons’ customers and employees and such other services as the Bank may reasonably request and that are consistent with a part-time consulting role for the former chief executive officer of First Commons having the marketing and financial services experience outlined on the attached Exhibit A.  Without limiting the scope of the immediately preceding sentence, the Bank and Consultant expect that during the Term Consultant will perform one or more of the following activities:

 

(i)            Assisting in transitioning First Commons’ customers to the Bank, including by personally calling on customers with officers of the Bank;

 

(ii)           Assisting in transitioning First Commons’ employees to the Bank;

 

(iii)          Serving as a mentor to former senior executives of First Commons who become officers of the Bank;

 

(iv)          Assisting in training and mentoring the Bank’s business banking officers (“BBOs”);

 

(v)           Providing motivational and training workshops to groups of BBOs and other employees of the Bank, including workshops based upon Consultant’s book titled “The Business PACT: Connecting Business Thinking with Daily Living”; and

 

(vi)          Providing strategic consulting and/or research to the Bank, drawing in part upon Consultant’s marketing and financial services experience as outlined on the attached Exhibit A.

 

(b)           To the extent practical, Consultant’s services may be performed remotely; and to the extent any services must performed by Consultant at the offices of the Bank, Consultant will not be required to perform such services on business days other than on Tuesdays, Wednesdays and Thursdays.  The Bank acknowledges and agrees that during the Term, Consultant may be unavailable to perform services for up to eight (8) weeks due to vacation and other personal time off.  To the extent practical, Consultant shall give the Bank reasonable advance notice of anticipated vacation time.

 

(c)           So long as Consultant is engaged hereunder, Consultant agrees (i) to perform Consultant’s duties diligently and to the best of Consultant’s ability, and not to do anything that would be detrimental to the best interests of the Bank, (ii) to use Consultant’s best efforts, skill and ability to promote the interests of the Bank, and (iii) to devote such portion of his available time, attention, energy, skill, and efforts to the business and affairs of the Bank as reasonably required to fulfill the duties assigned to him under this Agreement.

 

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(d)           Monthly or semi-monthly as the Bank may request, Consultant shall provide the Bank’s Chief Executive Officer with a written summary (the “Schedule”) describing the actual business days during the ensuing period on which Consultant will make himself available to provide consulting services to the Bank.

 

(e)           Monthly or semi-monthly as the Bank may request, Consultant shall provide the Bank’s Chief Executive Officer with a written summary (the “Report”) (i) confirming the actual business days during the period on which Consultant made himself available to provide consulting services to the Bank, and (ii) describing in general terms the consulting services that Consultant actually provided to the Bank during such period.

 

3.             Compensation and Benefits.

 

(a)           In consideration of Consultant’s commitments under this Agreement, including Consultant’s agreements in Section 5 and Section 6, the Bank will pay to Consultant, monthly during the Term, in cash an amount equal to $12,500 (the “Monthly Payment”).  The Bank shall pay the Monthly Payment in arrears not later than the first day of the next month, and for any partial month the Monthly Payment will be pro-rated.  The Monthly Payment assumes that Consultant provides up to 750 hours during the Term pursuant to Section 4(a).  In the event that Consultant’s actual services during the Term equal or exceed 750 hours, Consultant will not be obligated to provide any additional consulting services, except as may be mutually agreeable to the Bank and Consultant.  If Consultant provides services in excess of 750 hours during the Term, the Bank agrees to pay Consultant on an hourly basis at a rate of $200 per hour for each hour of consulting services during the Term in excess of 750 hours.  Consultant shall submit monthly invoices to the Bank no later than ten (10) days after the end of the month for any such additional hours worked during that month, and such invoices shall be payable by the Bank to Consultant within ten (10) days after the Bank’s receipt of such invoice.  The Bank and Consultant acknowledge and agree that in no event shall Consultant be required to provide services at a level that would be equal to or greater than 50 percent of the average level of bona fide services Consultant provided to First Commons during 36-month period immediately preceding the Term (the “409A Cap”), and the Bank and Consultant agree that consulting services of not more than 20 hours per week will be less than the 409A Cap.

 

(b)           The Bank will reimburse Consultant for reasonable out-of-pocket expenses, including parking expenses. Consultant shall submit monthly invoices to the Bank for any costs incurred and such invoices shall be payable by the Bank to Consultant no later than the fifteenth (15th) day of the month following the month in which the invoice was submitted.

 

(c)           If Consultant becomes a director of the Bank during the Term, (i) Consultant will not receive any additional compensation as a Bank director unless and until the amount of time that Consultant devotes to the Bank during the Term equals or exceeds 750 hours, in which case the Bank will thereafter compensate Consultant, in his capacity as a Bank director, in the same manner as the Bank compensates its other Bank directors; and (ii) until the amount of time that Consultant devotes to the Bank during the Term equals 750 hours, any time Consultant spends in his capacity as a Bank director will be included as time spent in service to the Bank under this Agreement and will be subject to the 409A Cap.

 

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(d)           The Bank and Consultant hereby acknowledge and agree that Consultant shall not be entitled to any other payments, benefits, or other compensation in consideration of the services rendered hereunder other than those set forth in this Section 3.

 

(e)           The parties intend that payments under this Agreement be exempt from or comply with Code Section 409A and the Treasury Regulations and guidance promulgated thereunder (collectively, the “409A Requirements”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be exempt from the 409A Requirements.

 

(f)            Notwithstanding any other provision of this Agreement, the Bank shall be not obligated to make, nor shall Consultant have a right to receive, any payment under this Agreement which would violate any law, regulation, or regulatory order applicable to the Bank, as applicable, at the time such payment is due, including without limitation, Section 1828(k) of Title 12 of the United States Code and any regulation or order thereunder of the Federal Deposit Insurance Corporation.

 

4.             Term; Termination.

 

(a)           The term of Consultant’s engagement by Bank under this Agreement shall commence as of the Effective Time and shall continue for a term ending on the first anniversary of the Effective Time (the “Term”).

 

(b)           If the Bank terminates Consultant without Cause (as defined below), the Bank will pay Consultant monthly remaining unpaid Monthly Payments that he would have otherwise earned during the remaining portion of the Term; provided that Consultant continues to comply in all material respects with Consultant’s covenants in Section 5 and Section 6 of this Agreement.  For purposes of this Agreement, Cause shall mean: (i) the willful and continued failure (which failure continues for more than fifteen (15) days after written notice given to Consultant setting forth in reasonable detail the nature of such failure) by Consultant to substantially perform his duties, other than on account of a medically determinable disability which renders Consultant incapable of performing such services; (ii) the willful or gross neglect (which neglect continues for more than thirty (30) days after written notice given to Consultant setting forth in reasonable detail the nature of such neglect) by Consultant of his duties, other than on account of a medically determinable disability which renders Consultant incapable of performing such services; (iii) fraud, misappropriation or embezzlement by Consultant; (iv) Consultant’s conviction of a crime of moral turpitude which crime in the Bank’s good faith judgment would reasonably be expected to cause material adverse publicity to the Bank if Consultant continued to provide services under this Agreement; or (v) Consultant’s willfully engaging in conduct materially injurious to the Bank, including any material violation of applicable banking regulations.

 

(c)           If the Bank terminates Consultant with Cause, the Bank will have no further obligation to make any payments to Consultant (except for compensation earned prior to the date of termination).  If the Bank terminates Consultant with Cause under this Section 4(c), Consultant’s covenants under Section 5 and Section 6 of this Agreement shall remain in full force and effect for the original Term of the Agreement.

 

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(d)           Consultant may elect to cease providing consulting services under this Agreement at any time upon thirty (30) days written notice to the Bank, and in such case, the Bank will have no obligation to make a Monthly Payment (or portion thereof) for any period after the effective date of such cessation of services.  Consultant will submit a final invoice to the Bank within ten (10) days of cessation for any unpaid services, and such invoice shall be payable to Consultant by the Bank within ten (10) days after the Bank’s receipt of such final invoice.  If Consultant elects to cease providing consulting services pursuant to this Section 4(d), Consultant’s covenants under Section 5 and Section 6 of this Agreement shall remain in full force and effect for the remainder of the original Term of the Agreement.

 

5.             Non-Competition.

 

(a)           During the Term, Consultant shall not, directly or indirectly, become a director, trustee, officer, employee, principal, agent, consultant or independent contractor of a Competing Business (as defined below), subject to subsections (c) and (d) of this Section.

 

(b)           As used in this Agreement, the term “Competing Business” means any bank or other FDIC-insured depository institution, credit union, mortgage or finance company, or any other entity engaged in a business that competes with the business of the Bank, or subsidiary thereof, if such entity has a branch or loan production office in any of the following counties in Massachusetts: Suffolk, Norfolk, Essex, Middlesex, Plymouth or Bristol.  For avoidance of doubt, a Competing Business is not a business that primarily engages in providing asset manager services or insurance products or services.

 

(c)           Nothing in this Agreement shall prohibit Consultant from (x) owning bonds, non-voting preferred stock or less than five percent (5%) of the outstanding common stock of any Competing Business (or the holding company thereof) if the common stock of such entity is publically traded; (y) serving on the board of directors of or providing consulting services to a business that is not a Competing Business; and (z) providing consulting services to a business that is a Competing Business, if (i) Consultant provides such services from an office located outside of such cities and towns; (ii) the consulting services provided by Consultant do not relate to existing products or services that the Bank then offers, or proposed products or services with respect to which Consultant has actively consulted and which the Bank then is planning to offer in one or more of such cities and towns; and (iii) Consultant is and remains in compliance with the provisions of Section 6 of this Agreement.

 

(d)           The provisions of this Section 5 shall not be binding on Consultant (and shall be of no further force or effect) if a Change in Control of the Company occurs after the Effective Time.  A Change in Control of the Company shall mean a reorganization, merger, consolidation or sale of all or substantially all of the assets of the Bank, or any similar transaction, in any case in which the shareholders of the Company immediately prior to such transaction hold less than a majority of the voting power of the resulting entity immediately after such transaction.

 

6.             Non-Solicitation.

 

(a)           During the Term of the Agreement, Consultant shall not hire or attempt to hire any employee of the Bank, including any employee of First Commons immediately prior to the

 

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Effective Time who becomes an employee of the Bank, assist in such hiring by any other person or entity, encourage any such employee to terminate his or her relationship with the Bank, or interfere with or damage (or attempt to interfere with or damage) any relationship with the Bank and any customer of the Bank or solicit or encourage any customer of the Bank to terminate its relationship with the Bank or to conduct with any other person or entity any business or activity which such customer conducts or could conduct with the Bank.  Nothing in this paragraph shall prevent any person who employs Consultant as an employee or consultant from engaging in general direct mail solicitations or media advertising that is not targeted on or specifically directed at persons presenting or formerly employed by, associated with or customers of the Bank or First Commons.

 

7.             General Provisions.

 

(a)           Severable.  The Parties explicitly acknowledge and agree that the provisions of this Agreement are both reasonable and enforceable.  Should any provision or part thereof be held invalid or unenforceable for any reason, then such provision or part shall be enforced to the maximum extent permitted by law.  Likewise, in the event that any one or more of the provisions, or parts of any provisions, contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect by a court of competent jurisdiction, the same shall not invalidate or otherwise affect any other provision or part thereof.  Specifically, but without limiting the foregoing in any way, each of the covenants of the Parties to this Agreement contained herein shall be deemed and shall be construed as a separate and independent covenant and should any part or provision of any such covenants be held or declared invalid by any court of competent jurisdiction, such invalidity shall in no way render invalid or unenforceable any other part or provision thereof or any other covenant of the parties not held or declared invalid.

 

(b)           Reasonableness.  Consultant acknowledges that the covenants set forth in the Agreement are reasonable and necessary to protect and preserve Bank’s legitimate business interests.

 

(c)           Independent Contractor; No Agency.  At all times during the Term, Consultant is an independent contractor under this Agreement.  Nothing in this Agreement shall create the relationship of partners or employer and employee between the parties hereto.  Consultant is not an agent of the Bank and does not have the right to employ or contract with any other person or entity for or on behalf of the Bank.  The Bank shall not be liable for any act or omission of Consultant in performing any service.  As an independent contractor, Consultant acknowledges and agrees that Consultant alone is responsible for acts or omissions, including any property damage, bodily injury or death, caused by Consultant.

 

(d)           Employee Benefits.  Consultant acknowledges and agrees that neither Consultant nor anyone acting on Consultant’s behalf shall receive any employee benefits of any kind (including, without limitation, health, sickness, accident or dental coverage, life insurance, disability benefits, accidental death and dismemberment coverage, unemployment insurance coverage, workers’ compensation coverage, and pension or 401(k) benefit(s)) from the Bank.  Consultant shall be expressly excluded from participating in any employee benefit plans or programs as a result of the performance of services under this Agreement, without regard to Consultant’s independent contractor status.

 

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(e)           Tax Treatment.  Consultant and the Bank agree that, with respect to the services performed hereunder, the Bank will treat Consultant as an independent contractor for purposes of all tax laws and file forms consistent with that status as required by law in accordance therewith the Bank shall not be responsible for withholding income or other taxes from the compensation paid to Consultant.  Consultant agrees, as an independent contractor, Consultant is not entitled to unemployment benefits in the event this Agreement terminates, or workers’ compensation benefits in the event that Consultant is injured in any manner while performing obligations under this Agreement.

 

(f)            Assignment.  This Agreement and the rights and obligations of Bank hereunder, except for those set forth in Section 5(a), may be assigned by Bank (including a transfer by operation of law) to any successor to Bank, and shall inure to the benefit of, shall be binding upon, and shall be enforceable by any such assignee, provided that in the case of any such assignee other than by operation of law, the successor entity shall agree to assume and be bound by this Agreement.  Consultant hereby consents to such assignment by Bank.  This Agreement and the rights and obligations of Consultant hereunder may not be assigned by Consultant, except that Consultant may assign any or all of his rights under this Agreement, but not his obligations, to a limited liability company or corporation wholly owned by him.

 

(g)           Waiver.  The waiver by Bank of any breach of this Agreement by Consultant shall not be effective unless in writing and signed by an officer of the Bank, and no such waiver shall operate or be construed as a waiver of the same or another breach on a subsequent occasion.

 

(h)           Governing Law.  This Agreement and the rights of the parties hereunder shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts, without regard to conflict of law principles thereof.  Any action or proceeding seeking to enforce any provision of, or based on any right arising out of, this Agreement shall be brought against any of the parties only in the federal or state courts sitting in Boston, Massachusetts, and each of the parties consents to the exclusive jurisdiction of such courts (and of the appropriate appellate courts) in any such action or proceeding and waives any objection to venue laid therein.

 

(i)            Entire Agreement.  This Agreement embodies the entire agreement of the parties relating to the engagement of Consultant by Bank.  No amendment, modification extension or renewal of this Agreement shall be valid or binding upon Bank or Consultant unless made in writing and signed by the parties.

 

(j)            Consultant Representation and Warranties.  Consultant acknowledges and affirms that Consultant is not a party to any other agreement (including without limitation a restrictive covenant, trade-secret, or non-competition agreement) which may cause Bank to incur any obligations or liabilities either to Consultant or to any prior employer or may result in Consultant not being permitted to perform the services contemplated by this Agreement.  Consultant further represents and warrants that his execution and delivery of this Agreement and his performance of his obligations hereunder will not, with or without the giving of notice or the passage of time, or both, (i) violate any judgment, writ, injunction or order of any court, arbitrator, or governmental agency applicable to Consultant, or (ii) conflict with, result in the breach of any provision of or the termination of, or constitute a default under, any agreement to which Consultant is a party or by which Consultant is or may be bound.  Consultant represents and warrants that the

 

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biographical information set forth on Exhibit A to this Consulting Agreement is true and correct in all material respects.

 

(k)           Notice.  Except for Schedules, Reports and Acknowledgements, which may be delivered by email, any notice, request, demand, or other communication required to be given hereunder shall be made in writing and shall be deemed to have been fully given if personally delivered or if mailed by overnight delivery (the date on which such notice, request, demand, or other communication is received shall be the date of delivery) to the parties at the following address (or at such other addresses as shall be given in writing in accordance with this subsection by one party to the other party hereto):

 

If to Consultant:

 

Anthony G. Nuzzo

22 Chatham Circle

Wellesley, MA  02481

 

If to the Bank:

 

Brookline Bank

131 Clarendon Street

Boston, MA  02116

Attention:  Chief Executive Officer

 

(l)            Execution of Agreement.  This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement.  The exchange of copies of this Agreement and of signature pages by facsimile transmission or by electronic transmission in Adobe Acrobat format shall constitute effective execution and delivery of this Agreement as to the parties and may be used in lieu of the original Agreement for all purposes.  Signatures of the parties transmitted by facsimile or by electronic transmission in Adobe Acrobat format shall be deemed to be their original signatures for any purposes whatsoever.

 

(m)          Effectiveness.  This Agreement shall be effective as of the Effective Time.  In the event the Merger Agreement is terminated for any reason, this Agreement shall be deemed null and void ab initio.

 

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IN WITNESS WHEREOF, the Bank and Consultant have executed this Agreement to be effective as of Effective Time.

 

 

	
BANK:
    	
 
    	
CONSULTANT:
    
	
 
    	
 
    	
 
    
	
BROOKLINE BANK
    	
 
    	
ANTHONY   G. NUZZO
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Darryl Fess
    	
 
    	
/s/   Anthony G. Nuzzo
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Its:
    	
President   and Chief Executive Officer
    	
 
    	
 
    

 

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Exhibit A

 

Consultant’s Relevant Marketing and Financial Services Experiences

 

Consultant and the Bank expect that in providing services to the Bank during the Term, Consultant will draw upon some or all of the marketing and financial services experiences summarized below in addition to experiences and insights gained by Consultant as the primary organizer of First Commons, and its only Chairman, President and Chief Executive Officer.

 

·                  Consultant began his professional career with ten years in packaged goods marketing with Procter & Gamble and Johnson & Johnson.

 

·                  Consultant was later employed by American Express for approximately four years.  At American Express, Consultant’s responsibilities included leading the marketing efforts for Travelers Cheques domestically, leading the marketing and sales efforts for card products, Travelers Cheques and merchant services in Canada, and working on other International marketing efforts.

 

·                  Consultant developed and opened an Internet Bank for Marsh & McLennan, as Chairman, President and Chief Executive Officer.

 

·                  Consultant served for approximately two years as the President and Chief Executive Officer of Chemical Bank Delaware, a $2 billion credit card bank.

 

·                  Consultant served for approximately five years as the President and Chief Executive Officer — and later Chairman — of Fidelity Trust Company, an industrial loan company headquartered in Utah.  Fidelity Trust Company, a $500 million Industrial Loan Company then based in Utah (the “ILC”), was wholly owned by Fidelity Investments.  The ILC was principally a credit card and debit card entity with a large Trust business for Fidelity Investments.

 

·                  Consultant has a Chartered Life Underwriter’s (CLU) designation, a Certificate in Long Term Care Insurance (CLTC), and an active Massachusetts Life and Health Insurance License.

 

·                  Consultant has been a Personal Financial Advisor in the past with Series 7 and Series 66 brokerage licenses.

 

·                  Consultant has been an independent researcher/consultant for companies in different industries, including Prudential Insurance — a Fortune 500 company.  In addition, Consultant has performed a significant amount of focus group moderating and one-on-one research and has been registered in the “Green Book” of focus group moderators. As an independent researcher/consultant, Consultant prepared and conducted and/or supervised both internal and external research assignments.

 

10Exhibit 10.1

 

 

 

CREDIT AGREEMENT

 

 

by and between

 

 

ILLINOIS CORN PROCESSING, LLC

 

as Company,

 

COMPEER FINANCIAL, PCA

 

as Lender

 

and

 

CoBank,
ACB

 

as Cash Management Provider and Agent

 

 

Dated as of September 15, 2017

 

 

 

 

    	 	 	 

     

    

 

TABLE OF CONTENTS

 

 

	 	 	 	Page No.
	ARTICLE 1	Certain Definitions and Rules of Construction.	1
	ARTICLE 2	The Credit Facilities.	1
	 	2.1	The Term Loan.	1
	 	2.2	The Revolving Term Loan.	1
	 	2.3	Availability and Payments Generally.	2
	 	2.4	Interest Payment Dates.	3
	 	2.5	Interest After Default.	3
	 	2.6	Right to Prepay.	3
	 	2.7	Fees.	4
	ARTICLE 3	Increased Costs; Taxes; Illegality; Indemnity.	4
	 	3.1	Increased Costs.	4
	 	3.2	Taxes.	5
	 	3.3	LIBOR Index Rate Unascertainable; Illegality.	6
	 	3.4	Indemnity.	7
	ARTICLE 4	Conditions Precedent.	7
	 	4.1	Initial Loans.	7
	 	4.2	Each Loan.	10
	ARTICLE 5	Representations and Warranties.	10
	 	5.1	Compliance with Loan Documents.	10
	 	5.2	Subsidiaries.	10
	 	5.3	Organization; Compliance with Law; Ownership; Investment Companies.	10
	 	5.4	Power and Authority; Binding and Enforceable Agreement.	11
	 	5.5	Historical Financial Statements; Solvency.	11
	 	5.6	Litigation.	11
	 	5.7	Taxes.	11
	 	5.8	Margin Stock.	12
	 	5.9	No Conflict; Etc.	12
	 	5.10	Full Disclosure; Application is True and Correct.	12
	 	5.11	Insurance.	12
	 	5.12	Environmental Matters.	12
	 	5.13	ERISA.	13
	 	5.14	Anti-Corruption Laws.	13
	 	5.15	Sanctions.	13
	 	5.16	Pre-Merger Representations and Warranties.	14
	ARTICLE 6	Affirmative Covenants.	14
	 	6.1	Reporting Requirements.	14
	 	6.2	Lender Equity; Patronage; Statutory Lien; Voting Stockholder.	16
	 	6.3	Collateral Security.	16
	 	6.4	Preservation of Existence; Eligibility to Borrow; Etc.	17
	 	6.5	Payment of Liabilities; Including Taxes; Etc.	17
	 	6.6	Maintenance of Insurance.	17
	 	6.7	Maintenance of Properties.	18
	 	6.8	Visitation and Inspection Rights.	18
	 	6.9	Keeping of Records and Books of Account.	18
	 	6.10	Compliance with Laws; Use of Proceeds.	18
	 	6.11	Updates to Schedules.	18
	 	6.12	Additional Items.	18
	 	6.13	Further Assurances.	19

 

 

 

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	ARTICLE 7	Negative Covenants.	19
	 	7.1	Indebtedness.	19
	 	7.2	Liens.	19
	 	7.3	Guaranties.	20
	 	7.4	Loans and Investments.	20
	 	7.5	Liquidations; Mergers; Consolidations; Acquisitions.	20
	 	7.6	Dispositions of Assets or Subsidiaries.	21
	 	7.7	Dividends and Related Distributions.	21
	 	7.8	Affiliate Transactions.	21
	 	7.9	Subsidiaries; Partnerships; and Joint Ventures.	21
	 	7.10	Continuation of or Change in Business.	21
	 	7.11	Fiscal Year.	22
	 	7.12	Issuance of Stock.	22
	 	7.13	Changes in Organizational Documents, Risk Management Policy or Ethanol or Distillers Grain Marketers of the Company.	22
	 	7.14	Anti-Terrorism Laws.	22
	 	7.15	Anti-Corruption Laws.	22
	 	7.16	Sanctions.	22
	 	7.17	Rail Car Leases.	22
	 	7.18	Operating Leases.	23
	 	7.19	Repurchase Agreements.	23
	ARTICLE 8	Financial Covenants.	23
	 	8.1	Working Capital.	23
	 	8.2	Debt Service Coverage Ratio.	23
	ARTICLE 9	Default.	23
	 	9.1	Events of Default.	23
	 	9.2	Remedies.	25
	ARTICLE 10	Agent.	26
	 	10.1	Appointment, Powers and Immunities of Agent.	26
	 	10.2	Reliance by Agent.	26
	 	10.3	Defaults.	26
	 	10.4	Non Reliance on Agent.	27
	 	10.5	Failure of Agent to Act.	27
	 	10.6	Resignation or Removal of Agent.	27
	 	10.7	Amendments Concerning Agency Function.	27
	 	10.8	Liability of Agent.	27
	 	10.9	Transfer of Agency Function.	28
	 	10.10	Non Receipt of Funds by Agent.	28
	 	10.11	Security Interests.	28
	 	10.12	Intercreditor Provisions.	28
	ARTICLE 11	Miscellaneous.	29
	 	11.1	Amendments; Waivers; Severability.	29
	 	11.2	Expenses; Indemnity; Damage Waiver.	29
	 	11.3	Holidays.	30
	 	11.4	Notices; Effectiveness; Electronic Communication.	30
	 	11.5	Duration; Survival.	31
	 	11.6	Successors and Assigns; Participations.	31
	 	11.7	Confidentiality.	31
	 	11.8	Counterparts; Integration; Effectiveness.	32
	 	11.9	Governing Law.	32
	 	11.10	SUBMISSION TO JURISDICTION; SERVICE OF PROCESS; VENUE; WAIVER OF JURY TRIAL.	32
	 	11.11	USA Patriot Act Notice.	33

 

 

 

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ANNEXES, SCHEDULES AND EXHIBITS

 

	Annex A	–	Definitions and Rules of Construction
	Annex B	–	Real Property Collateral
	 	 	 
	Schedule 5.2	–	Subsidiaries
	Schedule 6.12(b)	–	Collateral Assignments of Material Agreements
	 	 	 
	Exhibit A	–	Form of Term Note
	Exhibit B	–	Form of Revolving Term Note
	Exhibit C	–	Form of Compliance Certificate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	iii	 

     

    

 

CREDIT AGREEMENT

 

THIS CREDIT AGREEMENT
(as amended, restated, modified or supplemented from time to time, the “Agreement”) is dated as of September
15, 2017, and is entered into by and between ILLINOIS CORN PROCESSING, 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 (“Lender”), and CoBank,
ACB, a federally-chartered instrumentality of the United States (“Cash Management Provider” or “Agent”).

 

Upon the request of
the Company, Lender has agreed to provide the Company with the credit facilities described below and Cash Management Provider has
agreed to provide the other financial accommodations described below. In consideration thereof and of the mutual covenants and
agreements set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the Company, Lender, Cash Management Provider and Agent hereby agree as follows:

 

ARTICLE
1         Certain Definitions and Rules
of Construction. In addition to definitions established elsewhere in this Agreement, certain capitalized words and terms used
in this Agreement are defined in Annex A to this Agreement, which is incorporated herein by reference and made a part
hereof. In addition, Annex A sets forth the rules of construction and certain accounting principles applicable to this
Agreement.

 

ARTICLE
2         The Credit Facilities.
Subject to the terms and conditions of this Agreement and relying on the representations and warranties set forth herein, Lender
hereby establishes in favor of the Company the credit facilities, loans, and other financial accommodations described below (collectively,
the “Facilities”). The Facilities shall be subject to and governed and secured by the terms and conditions contained
in this Agreement, the Notes, and the other Loan Documents. The terms of each Note shall set forth the amount and duration of each
Facility, the interest thereon, the fees applicable thereto, and the purpose thereof, as well as any other terms and conditions
Agent may elect to set forth therein, and the Company shall be subject thereto.

 

2.1              
The Term Loan. Lender agrees to make a term loan to the Company in a principal amount not to exceed the Term Loan Amount
set forth in the Term Note (the “Term Loan”) upon the request of the Company made in accordance with the terms
of the Term Note and this Agreement; provided, however, that the Term Loan shall be made in a single advance on or before the Term
Loan Availability Expiration Date.

 

(a)               
The Term Note. The Term Loan shall be evidenced by a promissory note of the Company, substantially in the form of
Exhibit A hereto and otherwise in form and substance satisfactory to Agent, payable to the order of Lender (as amended, restated,
modified, supplemented, replaced, refinanced or renewed from time to time, the “Term Note”). The terms and provisions
of the Term Note are incorporated herein by reference and made a part hereof. In the event of irreconcilable inconsistency between
the terms hereof and the terms of the Term Note, the terms of the Term Note shall control.

 

(b)               
Payments. All principal, interest and fees outstanding under the Term Loan shall be due and payable pursuant to the
Term Note except to the extent otherwise provided for in this Agreement.

 

2.2              
The Revolving Term Loan. Lender hereby establishes in favor of the Company a revolving term credit facility as described
below (the “Revolving Term Facility”).

 

 

 

    	 	 	 

     

    

 

(a)               
Loans; Limitations. Subject to the terms and conditions of this Agreement, the Revolving Term Note and the other
Loan Documents, prior to the Revolving Term Facility Expiration Date, upon the request of the Company, Lender shall make loans
to the Company under the Revolving Term Facility (each, a “Revolving Term Loan”); provided, that in no event
shall Lender be obligated to make a Revolving Term Loan that, when added to the then-current Revolving Term Facility Usage, would
exceed at any time the Revolving Term Commitment. Within such limits and subject to the other terms and conditions of this Agreement
and the other Loan Documents, the Company may borrow, repay, and reborrow under the Revolving Term Facility.

 

(b)               
Revolving Term Note. Amounts owed under the Revolving Term Facility shall be evidenced by a promissory note of the
Company, substantially in the form of Exhibit B hereto and otherwise in form and substance satisfactory to Agent, payable
to the order of Lender (as amended, restated, modified, supplemented, replaced, refinanced or renewed from time to time, the “Revolving
Term Note”). The terms and provisions of the Revolving Term Note are incorporated herein by reference and made a part
hereof. In the event of irreconcilable inconsistency between the terms hereof and the terms of the Revolving Term Note, the terms
of the Revolving Term Note shall control.

 

(c)                
Payment Dates. All principal, interest and fees outstanding under the Revolving Term Facility shall be due and payable
pursuant to the Revolving Term Note except to the extent otherwise provided for in this Agreement.

 

(d)               
Protective Advances. Lender is authorized by the Company (but shall have absolutely no obligation to), from time
to time in Lender’s sole discretion, to make Revolving Term Loans to or on behalf of the Company that Lender and Agent deem
necessary or desirable (i) to preserve or protect the Collateral, or any portion thereof, (ii) to enhance the likelihood of,
or maximize the amount of, repayment of the Loans and other Obligations, or (iii) to pay any other amount chargeable to or required
to be paid by the Company pursuant to the terms of this Agreement, including payments of reimbursable expenses (including reasonable
costs, fees, and expenses as described in Section 11.2) and other sums payable under the Loan Documents (any of such Revolving
Term Loans are herein referred to as “Protective Advances”). Protective Advances may be made even if the conditions
precedent set forth in Section 4.2 have not been satisfied. The Protective Advances shall be secured by the Collateral and shall
constitute Obligations hereunder. All Protective Advances shall be Libor Index Rate Loans.

 

(e)                
Cash Management Arrangements. The Company and Cash Management Provider may enter into a CoBank Cash Management Agreement
providing for the automatic advance by Cash Management Provider of Revolving Term Loans under the conditions set forth in such
agreement, which conditions shall be in addition to the conditions set forth herein.

 

2.3              
Availability and Payments Generally.

 

(a)               
Availability. Loans and advances will be made available by wire transfer of immediately available funds to such account
or accounts as may be authorized or directed by the Company on forms supplied or approved by Agent. Agent shall be entitled to
rely on (and shall incur no liability to the Company in acting on) any request, delegation or direction furnished by the Company
in accordance with the terms of this Agreement, any Note, a Delegation Form or any other Loan Document.

 

 

 

 

 

 

    	 	2	 

     

    

 

(b)                
Payments Generally. All payments and prepayments to be made in respect of the Obligations shall be payable prior
to 3:00 p.m. (Mountain time) on the date when due without presentment, demand, protest or notice of any kind, all of which are
hereby expressly waived by the Company, and without set-off, counterclaim or other deduction of any nature, and an action therefor
shall immediately accrue. Such payments or prepayments of Obligations shall be made (i) by wire transfer of immediately available
funds to ABA No. 307088754 for advice to and credit of Agent for the account of Lender (or to such other account as Agent may direct
by written notice) or (ii) by check or ACH transfer, to Agent for the account of Lender at its office located at 6340 S. Fiddlers
Green Circle, Greenwood Village, Colorado 80111 (or at such other place of payment designated by Agent to the Company) in U.S.
dollars and in immediately available funds. In the event that any payment on any Obligation is made by check by the Company, credit
for payment by check shall be given as of the Business Day on which Agent receives the check at the address designated by Agent
from time to time for delivery of payments by check. All notices by the Company to Agent of payment or prepayment shall be irrevocable.
Agent’s statement of account, ledger, or other relevant record shall, in the absence of manifest error, be conclusive as
the statement of the amount of principal, interest, and other Obligations owing under this Agreement, the Notes, and the other
Loan Documents and shall be deemed an “account stated.” Any payment received by Agent after 3:00 p.m. (Mountain time)
shall be deemed received by Agent on the next succeeding Business Day. All payments hereunder and under any Note, including all
amounts designated as principal prepayments, shall be credited first to interest, costs, and lawful charges then accrued and the
remainder to principal as provided herein or in any applicable Note or otherwise as Agent in its sole discretion may determine.

 

2.4              
Interest Payment Dates. Interest on principal amounts subject to the Quoted Rate Option or LIBOR Index Option shall
be: (a) calculated monthly in arrears as of the last day of each month and on the final maturity date of the Loans; and (b) due
and payable monthly in arrears on the twentieth (20th) day of the following month (or on such other day in such month as Agent
shall require in a written notice to the Company) and at maturity (whether at stated maturity, by acceleration or otherwise) and
after maturity on demand, and on the date of any payment or prepayment of any principal amount on the amount paid. Interest based
on the Quoted Rate Option or LIBOR Index Option will be calculated in each case on the basis of the actual number of days elapsed
in a year of 360 days.

 

2.5              
Interest After Default. To the extent permitted by Law and notwithstanding any other term or condition of this Agreement,
any Note or any other Loan Document, upon the occurrence of an Event of Default and until the time such Event of Default shall
have been cured or waived in writing by Agent on behalf of Lender: (a) each Loan outstanding hereunder shall bear interest
at a rate per annum equal to the sum of (i) the rate of interest that would otherwise be applicable pursuant to each Note or this
Agreement plus (ii) an additional 4.0% per annum; (b) all fees otherwise applicable pursuant to this Agreement, any Note or
any other Loan Document shall be increased by an additional 4.0% per annum; (c) each other Obligation hereunder if not paid
when due shall bear interest at a rate per annum equal to the sum of (i) the rate of interest applicable under the LIBOR Index
Option plus (ii) an additional 4.0% per annum from the time such Obligation becomes due and payable and until it is paid in full;
and (d) the Company acknowledges that the increase in rates referred to in this paragraph reflects, among other things, the
fact that the Loans outstanding and other Obligations have become a substantially greater risk given their default status and that
Lender is entitled to additional compensation for such risk. All such interest shall be payable by the Company upon demand by Agent.

 

2.6              
Right to Prepay. The Company shall have the right at its option from time to time to prepay any of the Loans in whole
or in part without premium or penalty, except as may be otherwise set forth in a Note and except as provided in Sections 3.1, 3.4
and 11.2; provided, that the Company agrees, upon any prepayment of the Loans or reduction or termination of the Revolving Term
Commitment prior to September 1, 2019 in connection with third party financing received by the Company, to pay Agent for the account
of Lender a prepayment penalty equal to 2.0% of the amount of such prepayment, reduction or termination. Whenever the Company desires
to prepay all or any part of the Loans, it shall provide a prepayment notice to Agent by 1:00 p.m. (Mountain time) at least three
(3) Business Days prior to the date of prepayment of any Loans to which Quoted Rate Option applies and by 1:00 p.m. (Mountain time)
on the same Business Day of prepayment of any Loans to which the LIBOR Index Option applies, setting forth in each case the following
information: (a) the date, which shall be a Business Day, on which the proposed prepayment is to be made; (b) a statement
indicating the application of the prepayment between the various Facilities (if more than one hereunder); (c) a statement
indicating the application of the prepayment among Loans to which the Quoted Rate Option applies and Loans to which the LIBOR Index
Option applies; and (d) the principal amount of such prepayment, which shall be in the minimum principal amount of the lesser
of (i) $100,000 for each Loan or (ii) the then outstanding amount of the Loan being prepaid. Unless otherwise agreed to by Agent,
all prepayment notices shall be irrevocable. The principal amount of the Loans for which a prepayment notice is given, together
with interest on such principal amount except with respect to Loans to which the LIBOR Index Option applies, shall be due and payable
on the date specified in such prepayment notice as the date on which the proposed prepayment is to be made. If a Term Loan is included
among the Facilities, all prepayments made under any Term Loan shall be applied (a) first, to the unpaid installments of principal
thereunder scheduled to be paid within 365 days after such prepayment, in the order of scheduled maturities, and (b) second, to
the unpaid installments of principal thereunder scheduled to be paid 366 days or more after such prepayment, in the inverse order
of scheduled maturities. Except as otherwise provided in this Agreement or a Note, if the Company prepays a Loan but fails to specify
the applicable Loan which the Company is prepaying, the prepayment shall be applied (i) first to Loans made under the Revolving
Term Facility, and then to the Term Loan; and (ii) after giving effect to the allocations in clause (i) above and in
the preceding sentence, first to Loans to which the LIBOR Index Option applies and then to Loans to which the Quoted Rate Option
applies. Any prepayment of a Loan under the Quoted Rate Option shall be subject to the Company’s obligation to indemnify
Lender for break funding damages and costs to the extent provided in Section 3.4.

 

 

 

    	 	3	 

     

    

 

2.7              
Fees. The Company shall pay Agent: (a) an administrative fee of $10,000 on the Closing Date and on each July 1 thereafter,
commencing on July 1, 2018; (b) an origination fee of $315,000 on the Closing Date; and (c) the Unused Commitment Fees in accordance
with the terms of the Revolving Term Note. Any such fees shall be fully earned when paid and shall not be refundable for any reason.

 

ARTICLE
3         Increased Costs; Taxes; Illegality;
Indemnity.

 

3.1              
Increased Costs.

 

(a)               
Increased Costs Generally. If any Change in Law shall:

 

		(i)	impose, modify, or deem applicable any reserve, special deposit, compulsory loan, insurance charge,
or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lending
Party;

 

		(ii)	subject any Lending Party to any Taxes of any kind whatsoever with respect to this Agreement, any
Note, or any other Loan Document, or any Loan hereunder or any other Obligation, or change the basis of taxation of payments to
a Lending Party in respect thereof (except for Indemnified Taxes or Other Taxes covered below and the imposition of, or any change
in the rate of, any Excluded Tax payable by a Lending Party); or

 

		(iii)	impose on any Lending Party or the London interbank market any other condition, cost, or expense
(other than Taxes) affecting this Agreement, any Note, or any other Loan Document, or any Loan made by Lender;

 

 

 

    	 	4	 

     

    

 

and the result of any of the
foregoing shall be to reduce the amount of any sum received or receivable by any Lending Party hereunder (whether of principal,
interest or any other amount) then, upon request of Agent, the Company will pay to Agent for the account of each applicable Lending
Party such additional amount or amounts as will compensate such a Lending Party for such additional costs incurred or reduction
suffered.

 

(b)               
Certificates for Reimbursement. A certificate of Agent setting forth the amount or amounts necessary to compensate
each Lending Party as specified in this Section 3.1 and delivered to the Company shall be conclusive absent manifest error. The
Company shall pay Agent for the account of each applicable Lending Party the amount shown as due on any such certificate within
ten (10) Business Days after receipt thereof.

 

(c)                
Delay in Requests. Failure or delay on the part of Agent to demand compensation pursuant to this Section 3.1 shall
not constitute a waiver of any Lending Party’s right to demand such compensation; provided that the Company shall not be
required to compensate a Lending Party pursuant to this Section 3.1 for any increased costs incurred or reductions suffered more
than 180 days prior to the date that Agent notifies the Company of the Change in Law giving rise to such increased costs or reductions
or of Agent’s intention to claim compensation therefor on behalf of the applicable Lending Party (except that, if the Change
in Law giving rise to such increased costs or reductions is retroactive, then the 180 day period referred to above shall be extended
to include the period of retroactive effect thereof).

 

3.2              
Taxes.

 

(a)                
Payments Free of Taxes. Any and all payments by or on account of any Obligation of the Company hereunder or under
any other Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable Law. If
any applicable Law (as determined in the good faith discretion of Agent) requires the deduction or withholding by Agent of any
Tax from any such payment, then Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount
deducted or withheld to the relevant Official Body in accordance with applicable law and, if such Tax is an Indemnified Tax, then
the sum payable by the Company shall be increased as necessary so that after such deduction or withholding has been made (including
such deductions and withholdings applicable to additional sums payable under this Section 3.2) Agent receives an amount equal to
the sum it would have received had no such deduction or withholding been made.

 

(b)                
Payment of Other Taxes by the Company. Without limiting the provisions of the foregoing clause (a) directly
above, the Company shall timely pay to the relevant Official Body in accordance with applicable Law, or at the option of Agent
timely reimburse it for the payment of, any Other Taxes.

 

(c)                
Indemnification by the Company. The Company shall indemnify each Lending Party, within ten (10) days after demand
therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts
payable under this Section 3.2) payable or paid by such Lending Party or required to be withheld or deducted from a payment to
a Lending Party and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were
correctly or legally imposed or asserted by the relevant Official Body. A certificate as to the amount of such payment or liability
delivered by Agent to the Company shall be conclusive absent manifest error.

 

 

 

 

 

    	 	5	 

     

    

 

(d)                
Evidence of Payments. As soon as practicable after any payment of Taxes by the Company to an Official Body, the Company
shall deliver to Agent the original or a certified copy of a receipt issued by such Official Body evidencing such payment, a copy
of the return reporting such payment or other evidence of such payment reasonably satisfactory to Agent.

 

(e)                
Treatment of Certain Refunds. If a Lending Party determines, in its sole discretion, that it has received a refund
of any Taxes as to which it has been indemnified by the Company or with respect to which the Company has paid additional amounts
to Agent pursuant to this Section 3.2, it shall pay to the Company an amount equal to such refund (but only to the extent of indemnity
payments made, or additional amounts paid, by the Company to Agent under this Section 3.2 with respect to the Taxes giving rise
to such refund), net of all expenses (including Taxes) of such Lending Party, and without interest (other than any interest paid
by the relevant Official Body to Agent with respect to such refund). The Company, upon request of Agent, shall repay to Agent for
the account of the applicable Lending Party any amount paid over pursuant to this paragraph (plus any penalties, interest or other
charges imposed by the relevant Official Body) in the event such Lending Party is required to repay such refund to such Official
Body. Notwithstanding anything to the contrary in this paragraph, in no event will any Lending Party be required to pay any amount
to the Company pursuant to this paragraph, the payment of which would place such Lending Party in a less favorable net after-Tax
position than it would have been in if the indemnification payments or additional amounts giving rise to such refund had never
been paid. This paragraph shall not be construed to require any Lending Party to make available its tax returns (or any other information
relating to its Taxes that it deems confidential) to the Company or any other person or entity.

 

3.3               
LIBOR Index Rate Unascertainable; Illegality.

 

(a)                
Unascertainable. If, on any date on which a LIBOR Index Rate would otherwise be determined, Agent shall have determined
that:

 

		(i)	adequate and reasonable means do not exist for ascertaining such LIBOR Index Rate, or

 

		(ii)	a contingency has occurred which materially and adversely affects the London interbank eurodollar
market relating to the LIBOR Index Rate,

 

then in either
case Lender shall have the rights specified in Section 3.3(c).

 

(b)                
Illegality. If at any time Agent shall have determined that the making, maintenance or funding of any Loan to which
the LIBOR Index Option applies has been made impracticable or unlawful by compliance by Agent in good faith with any Law or any
interpretation or application thereof by any Official Body or with any request or directive of any such Official Body (whether
or not having the force of Law), then Agent shall have the rights specified in Section 3.3(c).

 

(c)                
Lender and Agent’s Rights. In the case of an event specified in Section 3.3(a) or 3.3(b), Agent shall so notify
the Company thereof, and in the case of an event specified in Section 3.3(b), such notice shall describe the specific circumstances
of such event. Upon such date as shall be specified in such notice (which shall not be earlier than the date such notice is given),
the obligation of Lender to allow the Company to select, convert to or renew a LIBOR Index Option shall be suspended until Agent
shall have later notified the Company of Agent’s determination that the circumstances giving rise to such previous determination
no longer exist. If at any time Agent makes a determination under Section 3.3(a) and the Company has previously notified Agent
of its selection of, conversion to or renewal of a LIBOR Index Option and such Interest Rate Option has not yet gone into effect,
such notification shall be deemed to provide for selection of, conversion to or renewal of the Quoted Rate Option with respect
to such Loans. If Agent notifies the Company of a determination under Section 3.3(b), the Company shall, subject to the Company’s
indemnification Obligations under Section 3.4, as to any Loan of the Company to which a LIBOR Index Option applies, as applicable,
on the date specified in such notice either convert such Loan to the Quoted Rate Option with respect to such Loan or prepay such
Loan in accordance with Section 2.6. Absent due notice from the Company of conversion or prepayment, the interest rate on such
Loan shall automatically be converted to the variable interest rate known as the U.S. Prime Rate as published by the Wall Street
Journal plus 2.00% per annum.

 

 

 

    	 	6	 

     

    

 

3.4              
Indemnity. The Company hereby agrees that upon demand by Agent, the Company will indemnify Lender against any loss or
expense that Lender may have sustained or incurred (including any net loss or expense incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by Lender to fund or maintain Quoted Rate Option Loans) or that Lender may be
deemed to have sustained or incurred, as reasonably determined by Agent, (a) as a consequence of any failure by the Company to
make any payment when due of any amount due hereunder in connection with any Quoted Rate Option Loans, (b) due to any failure of
the Company to borrow or convert any Quoted Rate Option Loans on a date specified therefor in a notice thereof, or (c) due to any
payment or prepayment of any Quoted Rate Option Loans on a date other than the last day of the applicable period of such Quoted
Rate for such Quoted Rate Option Loan. For this purpose, all Loan Requests shall be deemed to be irrevocable. Notwithstanding the
foregoing, in the event of a conflict between the provisions of this Section 3.4 and of the broken funding charge section of a
forward fix agreement between Agent and the Company, for losses imputed by Agent, the provisions of the forward fix agreement shall control.

 

ARTICLE
4         Conditions Precedent.
The obligation of Lender to provide any Facility or to make, issue, renew, or convert any Loan under this Agreement, any Note or
any other Loan Document is subject to the ongoing performance by the Company of its obligations to be performed under this Agreement,
the Notes, and each other Loan Document and to the satisfaction of all conditions set forth in this Agreement, the Notes, and each
other Loan Document, including the following conditions:

 

4.1              
Initial Loans.

 

(a)               
Deliveries. No later than the Closing Date (or such later date as Agent shall specify in its sole discretion), Agent
shall have received each of the following (which, in the case of instruments and documents, must (unless otherwise stated below)
be originals, duly executed, and in form and substance satisfactory to Agent):

 

		(i)	This Agreement, the Notes and the Environmental Indemnity Agreement duly executed by an Authorized
Officer of the Company or PEI, as applicable;

 

		(ii)	A Delegation Form;

 

		(iii)	(A) all resolutions and other corporate or other organizational action taken by the Company
and PEI in connection with this Agreement and the other Loan Documents; (B) the names and titles of the Authorized Officers
authorized to sign the Loan Documents and their true signatures; and (C) copies of the Organizational Documents of the Company
and PEI as in effect on the Closing Date certified by the appropriate state official where such documents are filed in a state
office together with certificates from the appropriate state officials as to the continued existence and good standing of the Company
and PEI in each state where organized or qualified to do business;

 

 

 

    	 	7	 

     

    

 

		(iv)	A security agreement duly executed by an Authorized Officer of the Company granting to Agent, for
the benefit of the Lending Parties, a first priority Lien, subject only to Permitted Liens, on all Personal Property Collateral
of the Company, whether now owned or hereafter acquired, and a UCC-1 Financing Statement;

 

		(v)	Evidence, including a Lien search in acceptable scope from a provider satisfactory to Agent, that
the security interests in and Liens on the Collateral are valid, enforceable, and properly perfected in a manner acceptable to
Agent and prior to all other Liens (other than Permitted Liens);

 

		(vi)	An executed landlord’s waiver or other lien waiver agreement from the lessor, warehouse operator,
or other applicable Person for each Collateral location as required under or in connection with any security agreement;
	 	 	 

		(vii)	Mortgages or deeds of trust in recordable form and duly executed by an Authorized Officer of the
Company, in a face amount of no less than $84,000,000, granting to Agent, for the benefit of the Lending Parties, a first priority
Lien (subject only to Permitted Liens) on the Real Property Collateral;

 

		(viii)	A commitment to issue an ALTA lender’s title insurance policy, in a form and from a title
insurance company acceptable to Agent, in a face amount of no less than $42,000,000, insuring Agent’s first priority Lien
on the Real Property Collateral, with only such exceptions as may be approved by Agent, together with such endorsements as Agent
may require (the “Title Policy”);

 

		(ix)	An appraisal of the Real Property Collateral which indicates that the Real Property Collateral
has an appraised value of $69,000,000 or more and which is otherwise satisfactory to Agent;

 

		(x)	Surveys of the Real Property Collateral satisfactory to Agent, with identification of each item
with the corresponding exception number from the Title Policy, together with a certificate of the surveyor or other Person acceptable
to Agent that the Real Property Collateral is or is not, as the case may be, in a special flood hazard area for purposes of the
National Flood Insurance Program;

 

		(xi)	Evidence that the Company has taken all actions required under the Flood Laws or requested by Agent
to assist in ensuring that Agent is in compliance with the Flood Laws applicable to the Collateral, including, but not limited
to, providing Agent with the address or GPS coordinates of each structure on any real property that will be subject to mortgages
or deeds of trust, and to the extent required under Section 6.6, obtaining flood insurance for such property, structures and contents
prior to such property, structures and contents becoming Collateral;

 

 

 

 

    	 	8	 

     

    

 

 

		(xii)	A written opinion of counsel for the Company, dated no later than the Closing Date, in form and
substance and from counsel reasonably satisfactory to Agent;

 

		(xiii)	Evidence that adequate insurance, including flood insurance on any Real Property Collateral, if
applicable, required to be maintained under this Agreement or any other Loan Document is in full force and effect, with additional
insured, mortgagee and lender loss payable special endorsements attached thereto in form and substance satisfactory to Agent and
counsel (retained, engaged or employed by Agent) naming Agent, for the benefit of the Lending Parties, as additional insured, mortgagee
and lender loss payee;

 

		(xiv)	Evidence of filing of all Official Body consents, approvals and filings, and all material third
party consents and approvals required to effectuate the transactions contemplated hereby;

 

		(xv)	Phase I environmental assessments of the Real Property Collateral performed by an environmental
assessment firm satisfactory to Agent or other environmental assessments and due diligence satisfactory to Agent;

 

		(xvi)	Evidence of compliance with Section 6.2 and a favorable determination of eligibility of the Company
to borrow from Lender;

 

		(xvii)	A pro forma balance sheet of the Company as of the Closing Date which gives effect to the transactions
contemplated by this Agreement, together with a duly completed Compliance Certificate as of the Closing Date, in each case, certified
by the Chief Executive Officer, President, Chief Financial Officer, Controller or comparable Authorized Officer of the Company
as having been prepared in good faith and fairly presenting in all material respects the financial position of the Company as of
the date thereof. Such pro forma balance sheet and Compliance Certificate shall certify that the Working Capital of the Consolidated
Group is not less than $8,500,000 as of the Closing Date;

 

		(xviii)	A payoff letter from MGPI Processing, Inc. and Illinois Corn Processing Holdings, Inc. confirming
the amount required to pay off all Indebtedness owing to such lenders by the Company and confirming the discharge, release and
termination of all Liens on the property of the Company upon receipt of such payoff amount;

 

		(xix)	A copy of the Risk Management Policy; and

 

		(xx)	All other Loan Documents and due diligence materials as Agent or its counsel may request in connection
with this Agreement or any of the foregoing documents, instruments, or agreements.

 

(b)               
Payment of Fees. The Company shall have paid all fees and expenses of Agent and the Lending Parties, if any, payable
on or before the Closing Date as required by this Agreement or any other Loan Document.

 

 

 

 

 

    	 	9	 

     

    

 

4.2              
Each Loan. At the time of the making of any Loan (including the initial Loan) and after giving effect to each such proposed
extension(s) of credit, the Company hereby certifies to Agent and Lender that at such time (and each request by the Company for
a Loan is hereby deemed to be such certification):

 

		(a)	the representations and warranties of the Company and PEI contained in this Agreement and the other
Loan Documents are true and correct in all material respects;
	 	 	 
	 	(b)	no Event of Default or Default has occurred and is continuing;

 

		(c)	the making of the Loan does not contravene any Law applicable to Agent, any Lending Party, the
Company or any Subsidiary of the Company;

 

		(d)	no Material Adverse Change has occurred since the date of the last audited financial statements
of the Company delivered to Agent;

 

		(e)	the Company has satisfied any other conditions precedent set forth in each applicable Loan Document;
and

 

		(f)	the Company has delivered to Agent a duly executed and completed Loan Request.

 

ARTICLE
5         Representations and Warranties.
The Company represents and warrants to Agent and each of the Lending Parties, as of the date of this Agreement and as of the making
of any Loan, as follows:

 

5.1              
Compliance with Loan Documents. The Company is in compliance with all of the terms of this Agreement and the other Loan
Documents, and no Event of Default or Default exists.

 

5.2              
Subsidiaries. The Company has no Subsidiaries other than those which are set forth on Schedule 5.2, and all information
provided on Schedule 5.2 is complete, true and correct. All stock and other equity interests in the Company and in each Subsidiary
are owned free and clear of all Liens other than Permitted Liens. The stock or other equity interests of the Company and each Subsidiary
of the Company has been duly authorized and validly issued and is fully paid and non-assessable.

 

5.3              
Organization; Compliance with Law; Ownership; Investment Companies.(a) 

 

(a)               
The Company and each of its Subsidiaries (i) is duly organized, validly existing and in good standing under the Laws
of its jurisdiction of organization, (ii) has the lawful power to own or lease its properties and to engage in the business
it conducts or proposes to conduct, and (iii) is duly qualified and in good standing in each jurisdiction where the property
owned or leased by it or the nature of the business transacted by it makes such qualification necessary.

 

(b)               
The Company and each of its Subsidiaries is in compliance in all material respects with all applicable Laws.

 

(c)               
The Company and each of its Subsidiaries (i) has good and marketable title to or a valid leasehold interest in all of its
properties, assets, and other rights it purports to own, free and clear of all Liens except Permitted Liens and (ii) owns
or possesses all material patents, trademarks, service marks, trade names, copyrights, licenses, registrations, franchises, permits,
and rights necessary to own and operate its properties and to carry on its business as presently conducted and planned to be conducted,
without known, possible, alleged, or actual conflict with the rights of others. Neither the Company nor any of its Subsidiaries
is an “investment company,” as defined in, or subject to regulation under, the Investment Company Act of 1940.

 

 

 

 

 

 

 

 

 

    	 	10	 

     

    

 

5.4              
Power and Authority; Binding and Enforceable Agreement.  

 

(a)               
The Company has full limited liability company power to enter into, execute, deliver, carry out, incur the indebtedness
contemplated by, and perform its Obligations under, the Loan Documents to which it is a party, and all such actions have been duly
authorized by all necessary proceedings on its part.

 

(b)               
This Agreement and each of the other Loan Documents (i) has been duly and validly executed and delivered by an Authorized
Officer on behalf of the Company, to the extent it is a party thereto, and (ii) constitutes the legal, valid, and binding
obligations of the Company, to the extent it is a party thereto, enforceable against the Company in accordance with its terms except
to the extent that enforcement may be limited by applicable bankruptcy, insolvency, or similar laws or equitable principles affecting
creditors’ rights generally.

 

(c)                
There exist no claims, deductions, defenses, or set-offs of any nature against any amount due or to become due under any
Note or other Loan Document.

 

5.5              
Historical Financial Statements; Solvency. The Company has delivered to Agent copies of its audited year-end financial
statements for and as of the end of the fiscal year ended December 31, 2016, together with copies of its unaudited interim financial
statements for the quarter ended June 30, 2017 (all such annual and interim statements being collectively referred to as the “Statements”).
The 2017 interim Statement and, to the Company’s knowledge, the 2016 annual Statement were compiled from the books and records
maintained by the Company, are correct and complete and fairly represent the financial condition of the Company as of the respective
dates thereof and the results of operations for the fiscal periods then ended and have been prepared in accordance with GAAP consistently
applied, subject (in the case of the interim statements) to normal year end audit adjustments. The assumptions constituting the
basis on which the Company prepared the budgets and projections provided to Agent and developed the numbers set forth therein were
developed in good faith, based on all information known to the Company at such time, it being understood that such budgets and
projections are subject to inherent uncertainties and do not constitute a guaranty of future performance. Before and after giving
effect to the Loans made by Lender hereunder and under each Note, the Company is solvent.

 

5.6              
Litigation. There are no actions, suits, proceedings, or investigations pending or, to the knowledge of the Company,
threatened, against the Company or any Subsidiary of the Company at law or in equity which individually or in the aggregate may
result in any Material Adverse Change. Neither the Company nor any Subsidiary of the Company is in violation of any order, writ,
injunction, or decree of any Official Body which may result in any Material Adverse Change.

 

5.7              
Taxes. All federal, state, local, and other tax returns required to have been filed with respect to the Company and
its Subsidiaries have been filed, and payment or adequate provision has been made for the payment of all taxes, fees, assessments,
and other governmental charges which have or may become due pursuant to said returns or to assessments received, except to the
extent that such taxes, fees, assessments, or other governmental charges are being contested in good faith by appropriate proceedings
diligently conducted and for which such reserves or other appropriate provisions, if any, as shall be required by GAAP shall have
been made.

 

 

 

 

 

 

 

 

    	 	11	 

     

    

 

5.8              
Margin Stock. No part of the proceeds of any Loan made by Lender has been or will be used, whether directly or indirectly,
for any purpose that has resulted or will result in a violation of Regulation U or X of the Board of Governors of the Federal Reserve
System.

 

5.9              
No Conflict; Etc. The execution, delivery, or performance of any Loan Document by the Company will not conflict with,
constitute a default under or result in any breach of (a) the terms and conditions of any certificate or articles of incorporation,
bylaws, certificate of limited partnership, partnership agreement, certificate of formation, limited liability company agreement,
or other Organizational Documents of the Company or (b) any Law or any material agreement or instrument to which the Company
or any of its Subsidiaries is a party or by which it or any of its Subsidiaries is bound or to which it is subject, or result in
the creation or enforcement of any Lien whatsoever upon any property (now or hereafter acquired) of the Company or any of its Subsidiaries
(other than Liens granted under the Loan Documents). There is no default under any such material agreement (referred to above)
and neither the Company nor any Subsidiary of the Company is bound by any contractual obligation, or subject to any restriction
in any Organizational Document, or any requirement of Law which could result in a Material Adverse Change. No consent, approval,
exemption, order, or authorization of, or registration or filing with, any Official Body or any other Person is required by any
Law or any agreement or Organizational Document in connection with the execution, delivery, or performance of any Loan Document.
The proceeds of each Loan made by Lender shall be used for the purposes set forth in the applicable Note and as permitted by applicable
Law.

 

5.10           
Full Disclosure; Application is True and Correct. No Loan Document nor any other certificate, statement, agreement,
or document furnished to Agent or any Lending Party in connection with this Agreement or any other Loan Document contains any untrue
statement of a material fact or omits to state a material fact necessary in order to make the statements contained herein or therein,
in light of the circumstances under which they were made, not misleading. The Company is not aware of any Material Adverse Change
which has not been disclosed in writing to Agent. All representations and warranties set forth in the New Borrower Application
for Credit (Cooperatives) given at any time and from time to time by the Company to Agent are and remain true and correct in all
material respects, except to the extent corrected or supplemented by this Agreement and the Schedules hereto.

 

5.11            
Insurance.

 

(a)                
The properties of the Company and of each of its Subsidiaries are insured pursuant to policies and other bonds that are
valid and in full force and effect and that provide coverage meeting the requirements of Section 6.6.

 

(b)               
The Company, to the extent required under the Flood Laws, has obtained flood insurance for such structures and contents
constituting Collateral located in a flood hazard zone pursuant to policies that are valid and in full force and effect and which
provide coverage meeting the requirements of Section 6.6.

 

5.12           
Environmental Matters.

 

(a)                
The facilities and properties currently or formerly owned, leased or operated by the Company (the “Properties”)
do not contain any Hazardous Materials attributable to the Company’s ownership, lease or operation of the Properties in amounts
or concentrations or stored or utilized which (i) constitute or constituted a violation of Environmental Laws, or (ii) could reasonably
be expected to give rise to any Environmental Liability;

 

 

 

 

 

 

 

 

    	 	12	 

     

    

 

(b)                
The Company has not received any notice of violation, alleged violation, non-compliance, liability or potential liability
regarding environmental matters or compliance with Environmental Laws with regard to their activities at any of the Properties
or the business operated by the Company (the “Business”), or any prior business for which the Company has retained
liability under any Environmental Law;

 

(c)                
Hazardous Materials have not been transported or disposed of from the Properties in violation of, or in a manner or to a
location which could reasonably be expected to give rise to any Environmental Liability for the Company, nor have any Hazardous
Materials been generated, treated, stored or disposed of by or on behalf of the Company at, on or under any of the Properties in
violation of Environmental Laws, or in a manner that could reasonably be expected to give rise to, Environmental Liability; and

 

(d)                
The Company and each of its Subsidiaries is and has been in compliance with applicable Environmental Laws.

 

(e)                
The representations and warranties set forth in this Section 5.12 are qualified in their entirety by reference to the Phase
1 environmental assessments, notices and letters delivered by the Company to Agent with respect to the Real Property Collateral.

 

5.13           
ERISA. 

 

(a)               
Each Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code and other federal
or state Laws. The Company and each ERISA Affiliate have made all required contributions to each Plan subject to Section 412
of the Code, and no application for a funding waiver or an extension of any amortization period pursuant to Section 412 of
the Code has been made with respect to any Plan.

 

(b)               
(i) No ERISA Event has occurred or is reasonably expected to occur; (ii) no Plan had any unfunded pension liability
(i.e. excess of benefit liabilities over the current value of that Plan’s assets, determined in accordance with the assumptions
used for funding the Plan for the applicable plan year); (iii) neither the Company nor any ERISA Affiliate has incurred, or
reasonably expects to incur, any material liability under Title IV of ERISA with respect to any Plan (other than premiums due and
not delinquent under Section 4007 of ERISA); (iv) neither the Company nor any ERISA Affiliate has incurred, or reasonably
expects to incur, any material liability (and no event has occurred which, with the giving of notice under Section 4219 of
ERISA, would result in such liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (v) neither
the Company nor any ERISA Affiliate has engaged in a transaction that could be subject to Sections 4069 or 4212(c) of ERISA.

 

5.14          
Anti-Corruption Laws. The Company, its Subsidiaries and their respective directors, officers and employees and, to the
knowledge of the Company, the agents of the Company and its Subsidiaries, are in compliance with the FCPA and any other applicable
anti-corruption law in all material respects. The Company has instituted and maintains policies designed to ensure compliance therewith.

 

5.15          
Sanctions. None of the Company, its Subsidiaries or, to the knowledge of the Company, any director, officer, employee
or agent of the Company or any of its Subsidiaries is a Person that is, or is owned or controlled by Persons that are (a) the subject
or target of any sanctions administered or enforced by the U.S. Department of the Treasury’s Office of Foreign Assets Control,
the U.S. Department of State, the United Nations Security Council, the European Union or Her Majesty’s Treasury (collectively,
“Sanctions”) or (b) located, organized or resident in a country or territory that is, or whose government is,
the subject of Sanctions, including, without limitation, Crimea, Cuba, Iran, North Korea, Sudan and Syria.

 

 

 

 

 

    	 	13	 

     

    

 

5.16          
Pre-Merger Representations and Warranties. Notwithstanding anything to the contrary set forth elsewhere herein or in
any other Loan Document, to the extent any representation or warranty set forth in this Article 5, elsewhere herein or in any other
Loan Document relates to facts, circumstances, information, reports, filings, notices or other matters existing, created, filed
or delivered prior to July 3, 2017, such representation or warranty is expressly limited to the actual knowledge of the Company,
as presently constituted.

 

ARTICLE
6         Affirmative Covenants.
The Company covenants and agrees that until Payment In Full, the Company shall be in compliance at all times with the following
covenants:

 

6.1              
Reporting Requirements. The Company shall furnish or cause to be furnished to Agent:

 

(a)                
Monthly Financial Statements. As soon as available and in any event within thirty (30) days after the end of each
month, financial statements of the Company and its Consolidated Subsidiaries, if any, consisting of a balance sheet as of the end
of each such month and related statements of income for the month then ended and the fiscal year through that date, and such other
interim statements as Agent may specifically request, all in reasonable detail and certified (subject to normal year-end audit
adjustments) by the Chief Executive Officer, President, Chief Financial Officer, Controller or comparable Authorized Officer of
the Company as having been prepared in accordance with GAAP, consistently applied, and setting forth in comparative form the respective
financial statements for the corresponding date and period in the previous fiscal year.

 

(b)                
Annual Financial Statements. As soon as available and in any event within ninety (90) days after the end of each
fiscal year of the Company, financial statements of the Company and its Consolidated Subsidiaries, if any, consisting of a balance
sheet as of the end of such fiscal year, and related statements of income and cash flows for the fiscal year then ended and all
notes and schedules relating thereto, all prepared in accordance with GAAP and in reasonable detail, and setting forth in comparative
form the financial statements as of the end of and for the preceding fiscal year, and audited by independent certified public accountants
of nationally-recognized or industry-accepted standing and otherwise satisfactory to Agent. The certificate or report of accountants
shall be free of qualifications, shall not indicate the occurrence or existence of any event, condition or contingency which would
materially impair the prospect of payment or performance of any covenant, agreement, or duty of the Company under any of the Loan
Documents and shall otherwise be satisfactory to Agent.

 

(c)                
Certificate of the Company. Together with each set of financial statements furnished to Agent pursuant to clauses (a)
and (b) directly above, a certificate of the Company, substantially in the form of Exhibit C hereto and otherwise in form
and content acceptable to Agent, signed by an Authorized Officer (i) setting forth calculations showing compliance with each of
the financial covenants set forth in Article 8 as of the end of the period for which such statements are being furnished and (ii)
certifying that no Event of Default or Default has occurred during the period covered by such financial statements or, if an Event
of Default or Default has occurred, a description thereof and all actions taken or to be taken to remedy same (a “Compliance
Certificate”).

 

(d)               
Financial Projections. As soon as available and in any event within ninety (90) days after the end of each fiscal
year of the Company, financial projections of the Company for the then current fiscal year, together with an explanation of the
assumptions used to forecast such financial projections.

 

(e)                
Notices.

 

 

 

 

 

 

 

 

 

 

    	 	14	 

     

    

 

(i)                       
Material Adverse Change; Default. Promptly after any officer of the Company has learned of the occurrence of a Material
Adverse Change or an Event of Default or Default, notice of such Material Adverse Change or Event of Default or Default and the
action which the Company proposes to take with respect thereto.

 

(ii)                       Litigation.
Promptly after the commencement thereof, notice of all actions, suits, proceedings, or investigations before or by any Official
Body or any other Person against the Company or any Subsidiary of the Company which, if adversely determined, could constitute
an Event of Default, Default, or Material Adverse Change.

 

(iii)                       Environmental
Litigation, Etc. Promptly after receipt thereof, notice of the receipt of all pleadings, orders, complaints, indictments,
or any other communication alleging a condition that may require the Company or any Subsidiary to undertake or to contribute to
a cleanup or other response under Environmental Laws, or which seeks penalties, damages, injunctive relief, or criminal sanctions
related to alleged material violations of such Environmental Laws, or which claim personal injury or property damage to any person
as a result of Hazardous Materials.

 

(iv)                       Erroneous Financial Information. Immediately in the event that the Company or its accountants conclude or advise
that any previously issued financial statement, audit report, or interim review should no longer be relied upon or that disclosure
should be made or action should be taken to prevent future reliance, notice of the same.

 

(v)                       Ethanol
or Distillers Grain Marketers. Promptly after the occurrence thereof, notice of (A) any change in the marketers used by the
Company for ethanol or distillers grain and (B) the entry into any agreement or other contract, or any material amendment, restatement
or other modification thereof, by the Company related to the marketing of ethanol or distillers grain, together with a duly executed
copy thereof.

 

(vi)                       Organizational
Documents. Promptly after the occurrence thereof, notice of any amendment, restatement or other modification of the Organizational
Documents of the Company, together with a duly executed copy thereof.

 

(vii)                      ERISA Event. Immediately upon the occurrence of any ERISA Event, notice of the same.

 

(viii)                     Other
Reports. Promptly upon their becoming available to the Company (but in any event within the time period (if any) specified
therefor below):

 

(1)               
Management Letters. Any reports including management letters submitted to the Company by independent accountants
in connection with any annual, interim, or special audit, to be supplied not later than 30 days after receipt by the Company thereof;
and

 

(2)               
SEC Reports; Shareholder Communications. Public reports, including Forms 10-K, 10-Q and 8-K, registration statements
and prospectuses and other shareholder communications, filed by PEI and the Company (to the extent the Company is or becomes an
SEC reporting company) with the SEC to be supplied not later than 45 days after the last day of each calendar quarter (provided
that separate delivery shall not be required to the extent the same is publicly available on the SEC’s EDGAR system); and

 

(3)               
Other Information. Such other reports and information as Agent may from time to time reasonably request.

 

 

 

 

 

 

 

    	 	15	 

     

    

 

6.2              
Lender Equity; Patronage; Statutory Lien; Voting Stockholder.

 

(a)               
Lender Equity. So long as Lender is a lender hereunder, the Company will acquire equity in Lender in such amounts
and at such times as Lender may require in accordance with Lender’s Bylaws and Capital Plan (as each may be amended from
time to time), except that the maximum amount of equity that the Company may be required to purchase in Lender in connection with
the Loans and other financial accommodations made hereunder by Lender may not exceed the maximum amount permitted by the Bylaws
and the Capital Plan at the time this Agreement is entered into. The Company acknowledges receipt of (i) pertaining to the Lender
or the Lender’s parent association, as applicable, the most recent annual report and most recent quarterly report, if more
recent than the annual report; a copy of the notice to borrowers concerning investment, which includes a description of the terms
and conditions under which equity is issued; capitalization bylaws which describe the nature of all of the Company’s stock
and other equities in Lender acquired by the Company in connection with its patronage loans from Lender (the “Lender Equities”)
as well as Lender’s capitalization requirements, and agrees to be bound by the terms thereof, and (ii) an Effective Interest
Rate Disclosure Statement.

 

(b)               
Patronage. The Company acknowledges that Lender’s Bylaws and Capital Plan (as each may be amended from time
to time) shall govern (x) the rights and obligations of the parties with respect to the Lender Equities and any patronage
refunds or other distributions made on account thereof or on account of the Company’s patronage with Lender, (y) the
Company’s eligibility for patronage distributions from Lender (in the form of Lender Equities and cash) and (z) patronage
distributions, if any, in the event of a sale by Lender of a participation interest in the Loans and other financial accommodations
made hereunder. Lender reserves the right to assign or sell participations on a non-patronage basis in all or any part of its commitments
or outstanding Loans and other financial accommodations made hereunder.

 

(c)               
Statutory Lien. The Company acknowledges that Lender has a statutory first Lien pursuant to the Farm Credit Act of
1971, as amended from time to time, on all Lender Equities that the Company may now own or hereafter acquire, which statutory Lien
shall secure the Obligations due to Lender and be for Lender’s sole and exclusive benefit. The Lender Equities shall not
constitute security for obligations due to any other lender or participant hereunder (other than a Subsidiary or Affiliate of Lender).
To the extent that any of the Loan Documents creates a Lien on the Lender Equities or on patronage accrued by Lender for the account
of the Company (including, in each case, proceeds thereof), such Lien shall be for Lender’s sole and exclusive benefit and
shall not be subject to sharing with any other lender or participant hereunder (other than a Subsidiary or Affiliate of Lender
to the extent any Obligations are owing by the Company to any of them). Neither the Lender Equities nor any accrued patronage shall
be offset against the Obligations except that, in the event of an Event of Default, Lender may elect to apply the cash portion
of any patronage distribution or retirement of Lender Equities to amounts owed to Lender under this Agreement whether or not such
amounts are currently due and payable. The Company acknowledges that any corresponding tax liability associated with such application
is the sole responsibility of the Company. Lender shall have no obligation to retire the Lender Equities upon any Event of Default,
Default, or any other breach or default by the Company, or at any other time, either for application to the Obligations or otherwise.

 

(d)               
Voting Stockholder. Bryon T. McGregor is authorized by the Company to exercise any voting rights on behalf of the
Company with respect to the Lender Equities, subject to applicable bylaws, and to receive effective interest rate disclosures,
unless otherwise agreed in writing between the parties.

 

6.3              
Collateral Security. Payment and performance of the Obligations shall be secured by first priority perfected Liens on
all personal property of the Company (the “Personal Property Collateral”) and by a first priority recorded Lien
on all real property and improvements of the Company, including the fee estate of the Company in the real property and improvements
described in Annex B to this Agreement (the “Real Property Collateral”), in each case, whether now owned
or hereafter acquired (the Personal Property Collateral and the Real Property Collateral are collectively referred to as the “Collateral”),
subject only to Permitted Liens or other exceptions approved in writing by Agent. Prior to or substantially contemporaneously with
the date of this Agreement and at such other times as Agent may request (including each time the Company acquires any real property
or any personal property not already subject to the Lien required herein), the Company shall execute and deliver to Agent such
security agreements, pledge agreements, assignments, mortgages, deeds of trust, and other documents and agreements requested by
Agent for the purpose of creating, perfecting, and maintaining a perfected Lien on the Collateral, subject only to Permitted Liens
or other exceptions approved in writing by Agent. The Company hereby authorizes Agent to file such Uniform Commercial Code financing
statements as Agent reasonably determines are necessary or advisable to perfect the security interests in and Liens on the Collateral.

 

 

 

 

 

    	 	16	 

     

    

 

6.4              
Preservation of Existence; Eligibility to Borrow; Etc. Except as expressly permitted by Section 7.5 or Section 7.6,
the Company shall, and shall cause each of its Subsidiaries to, (a) maintain its legal existence in the form in which it exists
as of the date of this Agreement in its jurisdiction of organization, and its qualification and good standing in each jurisdiction
where such qualification is required; and (b) obtain and maintain all licenses, certificates, permits, authorizations, approvals,
and the like which are material to the conduct of its business or required by Law. The Company shall, at all times, be an entity
eligible to borrow from Lender and shall comply in all material respects with the provisions of its Organizational Documents and
any patron or member investment program it may have.

 

6.5              
Payment of Liabilities; Including Taxes; Etc. The Company shall, and shall cause each of its Subsidiaries to, duly pay
and discharge all liabilities to which it is subject or which are asserted against it, promptly as and when the same shall become
due and payable, including all Taxes, assessments, and governmental charges upon it or any of its properties, assets, income or
profits, prior to the date on which penalties attach thereto, except to the extent that any such liabilities are being contested
in good faith and by appropriate and lawful proceedings diligently conducted and for which such reserve or other appropriate provisions,
if any, as shall be required by GAAP shall have been made and provided further that such proceedings shall operate to stay levy
and execution on any Collateral.

 

6.6              
Maintenance of Insurance.

 

(a)               
The Company shall, and shall cause each of its Subsidiaries to, insure its properties and assets against loss or damage
by fire and such other insurable hazards as such assets are commonly insured (including fire, extended coverage, property damage,
workers’ compensation, public liability and business interruption insurance) and against other risks (including errors and
omissions) in such amounts as similar properties and assets are insured by prudent companies in similar circumstances carrying
on similar businesses, and with reputable and financially sound insurers, including self-insurance to the extent customary, all
as reasonably determined by Agent. Such insurance policies shall contain additional insured, mortgagee and lender loss payable
special endorsements in form and substance satisfactory to Agent naming Agent, on behalf of the Lending Parties, additional insured,
mortgagee and lender loss payee, as applicable, and providing Agent with notice of cancellation acceptable to Agent.

 

(b)               
The Company shall, to the extent required under the Flood Laws, obtain and maintain flood insurance for such structures
and contents constituting Collateral located in a flood hazard zone, in such amounts as similar structures and contents are insured
by prudent companies in similar circumstances carrying on similar businesses and otherwise reasonably satisfactory to Agent. If
the Company fails to obtain and maintain, at any time, such flood insurance, Agent may, in its sole discretion, obtain such flood
insurance on behalf of the Company on such Collateral at the Company’s cost and expense.

 

 

 

 

 

 

 

 

    	 	17	 

     

    

 

6.7              
Maintenance of Properties. The Company shall, and shall cause each of its Subsidiaries to, maintain in good repair,
working order, and condition (ordinary wear and tear excepted), all of those properties (regardless whether owned or leased) useful
or necessary to its business.

 

6.8              
Visitation and Inspection Rights. The Company shall, and shall cause each of its Subsidiaries to, permit any of the
officers or authorized employees or representatives of Agent and its participants to visit and inspect any of its properties and
to examine and make excerpts from its books and records and discuss its business affairs, finances, and accounts with its officers,
employees, directors, and accountants, all in such detail and at such times and as often as Agent and its participants may reasonably
request, provided that until the occurrence of an Event of Default or Default, Agent shall provide the Company with reasonable
notice prior to any visit or inspection. The Company will permit Agent or its agents to conduct on an annual basis a review of
the Collateral, and the Company shall pay to Agent a reasonable collateral inspection fee designated by Agent and reimburse Agent
for all reasonable costs and expenses incurred by Agent in connection therewith. Upon the occurrence of an Event of Default or
Default, Agent and its agents may conduct such collateral inspection reviews at any time and from time to time and the Company
shall owe such collateral inspection fee and reimbursement obligation to Agent in connection with each such collateral inspection.

 

6.9              
Keeping of Records and Books of Account. The Company shall, and shall cause each of its Subsidiaries to, maintain and
keep proper books of record and account in accordance with GAAP and as otherwise required by applicable Law, and in which full,
true and correct entries shall be made.

 

6.10           
Compliance with Laws; Use of Proceeds. The Company shall, and shall cause each of its Subsidiaries and all Persons occupying
or present on its or their property, to, comply with all applicable Laws, including all Environmental Laws, in all material respects.
The Company shall, and shall cause each of its Subsidiaries to, use the proceeds of the Loans only for the purposes set forth in
the applicable Note and as permitted by applicable Law.

 

6.11           
Updates to Schedules. Should any of the information or disclosures provided on any of the Schedules hereto become outdated
or incorrect in any material respect, the Company shall promptly provide Agent in writing with such revisions or updates to such
Schedule as may be necessary or appropriate to update or correct the same. No Schedule shall be deemed to have been amended, modified,
or superseded by any such correction or update, nor shall any breach of warranty or representation resulting from the inaccuracy
or incompleteness of any such Schedule be deemed to have been cured thereby, unless and until Agent, in its sole and absolute discretion,
shall have accepted in writing such revisions or updates to such Schedule; provided, however, that the Company may update Schedule
5.2 without any approval by Agent in connection with any liquidation, disposition, formation, merger, or acquisition of a Subsidiary
permitted under this Agreement.

 

6.12          
Additional Items. The Company shall provide Agent with each of the following (which, in the case of instruments and
documents, must (unless otherwise stated below) be originals, duly executed, and in form and substance satisfactory to Agent),
on or before the date indicated:

 

(a)               
The Title Policy, on or before December 1, 2017;

 

(b)               
An executed collateral assignment, subordination agreement or other similar agreement from the Persons party to any agreement
with the Company set forth on the attached Schedule 6.12(b), on or before December 1, 2017;

 

 

 

 

    	 	18	 

     

    

 

(c)               
A control agreement in respect of each Brokerage Account maintained by the Company, in each case properly executed on behalf
of each of the parties thereto, on or before December 1, 2017; and

 

(d)               
Payment of all fees and expenses of Agent and the Lending Parties, if any, as required by this Agreement or any other Loan
Document, on or before December 1, 2017.

 

6.13          
Further Assurances. The Company shall from time to time, at its expense, do such other acts and things as Agent in its
reasonable discretion may deem necessary or advisable from time to time in order to more fully carry out the provisions and purpose
of this Agreement and the other Loan Documents including, but not limited to, execution and delivery of collateral assignments,
subordination agreements, control agreements, subordination, non-disturbance and attornment agreements and other similar agreements.

 

ARTICLE
7         Negative Covenants. The
Company covenants and agrees that until Payment In Full, the Company shall be in compliance at all times with the following covenants:

 

7.1              
Indebtedness. The Company shall not, and shall not permit any Subsidiary to, at any time create, incur, assume or suffer
to exist any Indebtedness, except for the following referred to as “Permitted Indebtedness”:

 

(a)               
Indebtedness of the Company under the Loan Documents;

 

(b)               
Any Interest Rate Hedge utilized solely for hedging interest rate risks (and not in any event for speculative purposes);

 

(c)               
Other Indebtedness of the Company not otherwise permitted under this Section 7.1 in an aggregate principal amount outstanding
at any time not to exceed $250,000; provided, that the terms thereof are acceptable to Agent in its sole discretion; and

 

(d)               
Capital Leases entered into with Farm Credit Leasing Services Corporation.

 

7.2              
Liens. The Company shall not, and shall not permit any Subsidiary to, at any time create, incur, assume, or suffer to
exist any Liens on any of its property or assets, tangible or intangible, now owned or hereafter acquired, or agree or become liable
to do so, except for the following referred to collectively as “Permitted Liens”:

 

(a)                
Liens for Taxes incurred that are not yet due and payable and for which adequate reserves have been established;

 

(b)               
Pledges or deposits made in the ordinary course of business to secure payment of workmen’s compensation, or to participate
in any fund in connection with workmen’s compensation, unemployment insurance, old-age pensions or other social security
programs, and good-faith pledges or deposits made in the ordinary course of business to secure performance of bids, tenders, contracts
(other than for the repayment of borrowed money) or leases, not in excess of the aggregate amount due thereunder, or to secure
statutory obligations, or surety, appeal, indemnity, performance or other similar bonds required in the ordinary course of business,
and Liens of a collecting bank arising in the ordinary course of business under Section 4-210 of the Uniform Commercial Code
in effect in the relevant jurisdiction covering only the items being collected upon;

 

 

 

 

 

 

    	 	19	 

     

    

 

(c)               
Liens of mechanics, material suppliers, warehouses, carriers, or other like Liens, securing obligations incurred in the
ordinary course of business that are not yet due and payable and Liens of landlords securing obligations to pay lease payments
that are not yet due and payable or in default and for which adequate reserves have been established;

 

(d)               
Encumbrances consisting of zoning restrictions, easements or other restrictions on the use of real property, none of which
materially impairs the use of such property or the value thereof, and none of which is violated in any material respect by existing
or proposed structures or land use;

 

(e)               
Liens in favor of Agent for the benefit of the Lending Parties or any of their Affiliates securing any of the Obligations;

 

(f)                
Liens securing the Indebtedness permitted under Section 7.1(c);

 

(g)               
Liens securing the Indebtedness permitted under Section 7.1(d);

 

(h)               
Lender’s statutory Lien in the Lender Equities; and

 

(i)                
Liens, claims, or encumbrances upon, and defects of title to, real or personal property, including any attachment of personal
or real property or other legal process prior to adjudication of a dispute on the merits (y) if the validity or amount thereof
is being contested in good faith by appropriate and lawful proceedings diligently conducted so long as levy and execution thereon
have been stayed and continue to be stayed or (z) if a final judgment is entered and such judgment is discharged within thirty
(30) days of entry, and in either case they do not affect the Collateral or, in the aggregate, materially impair the ability of
the Company to perform its Obligations hereunder or under the other Loan Documents.

 

7.3              
Guaranties. The Company shall not, and shall not permit any Subsidiary to, at any time, directly or indirectly, become
or be liable in respect of any obligation guarantying or in effect guarantying any liability or obligation of any other Person
in any manner, whether directly or indirectly, including any agreement to indemnify or hold harmless any other Person, any performance
bond or other suretyship arrangement and any other form of assurance against loss, except endorsement of negotiable or other instruments
for deposit or collection in the ordinary course of business, or assume, guaranty, become surety for, endorse or otherwise agree,
become or remain directly or contingently liable upon or with respect to any obligation or liability of any other Person.

 

7.4              
Loans and Investments. The Company shall not, and shall not permit any Subsidiary to, at any time make or suffer to
exist any investments or capital contributions in, or other transfers of assets to, or loans, advances or other extensions of credit
to any other Person, except: (a) trade credit extended on usual and customary terms in the ordinary course of business; (b) advance
payments or deposits against purchases made in the ordinary course of business; (c) direct obligations of the United States of
America; (d) temporary advances to employees to meet expenses incurred in the ordinary course of business; and (e) the Lender Equities
and any other stock or securities of, or investments in, Lender or its investment services or programs.

 

7.5              
Liquidations; Mergers; Consolidations; Acquisitions. The Company shall not, and shall not permit any Subsidiary to,
dissolve, liquidate or wind-up its affairs, or become a party to any merger or consolidation, or acquire by purchase, lease or
otherwise all or a material portion of the assets or capital stock of any other Person.

 

 

 

 

 

 

 

 

    	 	20	 

     

    

 

7.6              
Dispositions of Assets or Subsidiaries. The Company shall not, and shall not permit any Subsidiary to, sell, convey,
assign, lease, abandon or otherwise transfer or dispose of, voluntarily or involuntarily, any of its properties or assets, tangible
or intangible (including sale, assignment, discount or other disposition of accounts, contract rights, chattel paper, equipment
or general intangibles with or without recourse or of capital stock, shares of beneficial interest, partnership interests or limited
liability company interests of a Subsidiary), except for transactions in the ordinary course of business.

 

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 (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 Agent 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 $8,000,000 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 $8,000,000 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 $8,000,000
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 $10,000,000
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 $10,000,000 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 $10,000,000 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.

 

7.8              
Affiliate Transactions. The Company shall not, and shall not permit any Subsidiary to, enter into or carry out any transaction
with any Affiliate unless such transaction is entered into in the ordinary course of business upon fair and reasonable arm’s-length
terms and conditions and is in accordance with all applicable Law.

 

7.9              
Subsidiaries; Partnerships; and Joint Ventures. The Company shall not, and shall not permit any Subsidiary to, own or
create directly or indirectly any domestic Subsidiary. Without the prior written consent of Agent, the Company shall not become
or agree to become a party to a joint venture and the Company shall not own any Subsidiary organized under the laws of a foreign
nation or political subdivision thereof.

 

7.10           
Continuation of or Change in Business. The Company shall not, and shall not permit any of its Subsidiaries to, engage
in any business other than the business substantially as conducted and operated by the Company or any Subsidiary of the Company
on the date hereof or as presently proposed to be conducted.

 

 

 

 

 

 

 

 

    	 	21	 

     

    

 

7.11           
Fiscal Year. The Company shall not, and shall not permit any Subsidiary of the Company to, change its fiscal year from
that which is in effect on the date hereof.

 

7.12           
Issuance of Stock. The Company shall not, and shall not permit any of its Subsidiaries to, issue any additional membership
interests or shares of its capital stock or any options, warrants or other rights in respect thereof except as may be required
by Law or its Organizational Documents as in effect as of the date of this Agreement.

 

7.13           
Changes in Organizational Documents, Risk Management Policy or Ethanol or Distillers Grain Marketers of the Company.
The Company shall not, and shall not permit any of its Subsidiaries to, (a) amend in any material respect its Organizational Documents,
Risk Management Policy or any agreement or other contract of the Company related to the marketing of ethanol or distillers grain
or (b) change the marketers used by the Company for ethanol or distillers grain, each without providing at least thirty (30) calendar
days’ prior written notice to Agent (together with copies of any such proposed amendment) and, in the event such change could
be adverse to any Lending Party as determined in Agent’s sole discretion, obtaining the prior written consent of Agent on
behalf of the Lending Parties. The Company shall take such actions as Agent may reasonably request to protect the Lien of Agent,
for the benefit of the Lending Parties, in the Collateral or otherwise to protect the interests of the Lending Parties as a lender
hereunder, as a result in either case of any change in an Organizational Document, the Risk Management Policy, any agreement or
other contract of the Company related to the marketing of ethanol or distillers grain or the marketers used by the Company for
ethanol or distillers grain.

 

7.14           
Anti-Terrorism Laws. Neither the Company nor any Subsidiary shall be (a) a Person with whom any Lending Party is
restricted from doing business under Executive Order No. 13224 or any other Anti-Terrorism Law, (b) engaged in any business
involved in making or receiving any contribution of funds, goods or services to or for the benefit of such a Person or in any transaction
that evades or avoids, or has the purpose of evading or avoiding, the prohibitions set forth in any Anti-Terrorism Law, or (c) otherwise
in violation of any Anti-Terrorism Law. The Company shall provide to Agent any certifications or information that Agent requests
to confirm compliance by the Company and its Subsidiaries with any Anti-Terrorism Law.

 

7.15           
Anti-Corruption Laws. Neither the Company nor any Subsidiary shall use, directly or indirectly, any proceeds of the
Loans in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else
of value, to any Person in violation of the FCPA or any other applicable anti-corruption law.

 

7.16           
Sanctions. Neither the Company nor any Subsidiary shall use, directly or indirectly, any proceeds of the Loans nor lend,
contribute or otherwise make available such proceeds to any Subsidiary or other Person (a) to fund any activities or business of
or with any Person, or in any country or territory, that, at the time of such funding, is, or whose government is, the subject
of Sanctions or (b) in any other manner that would result in a violation of Sanctions by any Person (including any Person participating
in the Loans, whether as underwriter, advisor, investor or otherwise).

 

7.17           
Rail Car Leases. The Company and its Subsidiaries shall not enter into or otherwise become a party to any Operating
Leases or Capital Leases for rail cars, other than (a) Operating Leases or Capital Leases for up to 100 rail cars which provide
for a lease term (whether initially or through extension) of more than 84 months and (b) Operating Leases or Capital Leases for
any number of rail cars which provide for a lease term (whether initially or through extension) of 84 months or less.

 

 

 

 

 

 

    	 	22	 

     

    

 

7.18           
Operating Leases. The Company and its Subsidiaries shall not make any payments in any fiscal year on account of Operating
Leases (other than any such leases for rail cars and such leases with Farm Credit Leasing Services Corporation) exceeding $250,000
in the aggregate.

 

7.19           
Repurchase Agreements. The Company shall not, and it shall not cause or permit any Subsidiary to, enter into or be a
party to any Repurchase Agreement.

 

ARTICLE
8         Financial Covenants.

 

8.1              
Working Capital. The Company will maintain the Working Capital of the Consolidated Group at not less than $8,000,000,
commencing on the Closing Date and continuing at all times thereafter, measured as of the last day of each calendar month.

 

8.2              
Debt Service Coverage Ratio. The Company will not permit the Debt Service Coverage Ratio of the Consolidated Group to
be less than 1.50 to 1.00, measured as of the last day of each fiscal year of the Company, commencing on the fiscal year ending
on December 31, 2018.

 

ARTICLE
9         Default.

 

9.1              
Events of Default. An Event of Default shall mean the occurrence or existence of any one or more of the following events
or conditions (whatever the reason therefor and whether voluntary, involuntary, or effected by operation of Law) (each an “Event
of Default”):

 

(a)                
Payments Under Loan Documents. The Company or PEI shall fail to pay any scheduled principal, interest, fee, or other
amount owing hereunder or under any other Loan Document when due, whether by acceleration or otherwise, should fail to pay any
unscheduled amount owing hereunder or under any other Loan Document within five (5) days after receipt of written notice from Agent,
or should fail to purchase the Lender Equities as and when required by Lender’s Bylaws and Capital Plan or those of its parent
association.

 

(b)                
Breach of Representation or Warranty. Any representation or warranty made or deemed made at any time by the Company
or PEI herein or in any other Loan Document shall be false or misleading in any material respect as of the time it was made or
deemed made.

 

(c)                
Breach of Negative Covenants or Certain Affirmative Covenants. The Company shall default in the observance or performance
of Article 7, Article 8, Sections 6.2, 6.8 or 6.10 or any other covenant pertaining to compliance with Laws or use of proceeds.
Notwithstanding anything to the contrary set forth above, elsewhere herein or in any other Loan Document, if the Company shall
default in the observance or performance of Article 8, Agent shall have the right, but not the obligation, to declare that an Event
of Default has occurred under this Section 9.1(c); provided, that no Event of Default shall be deemed to have occurred with respect
to any such default in the observance or performance of Article 8 unless and until the earlier of (i) Agent's election to declare
it an Event of Default, by written notice to the Company, or (ii) ninety (90) days from the date of the occurrence thereof. Any
determination by Agent to not declare an Event of Default on any occasion shall not limit the right of Agent to declare an Event
of Default on any other occasion. Under no circumstances shall Agent be deemed to have waived its right to declare an Event of
Default, unless such waiver is in writing and signed by Agent.

 

(d)               
Breach of Other Covenants. The Company or PEI shall default in the observance or performance of any other covenant,
condition, or provision hereof or of any other Loan Document or of any other agreement or instrument between the Company or PEI
and any Lending Party or any Affiliate of any Lending Party, and such default shall remain unremedied after the expiration of the
applicable grace period or, if there is no such applicable grace period, for a period of thirty (30) days.

 

 

 

 

 

 

 

 

    	 	23	 

     

    

 

(e)               
Defaults in Indebtedness to Other Lenders. A default or event of default shall occur at any time under the terms
of any other Indebtedness in an aggregate principal amount of $250,000 or more under which the Company or any Subsidiary of the
Company may be obligated (including as a borrower or guarantor), and such breach, default, or event of default consists of the
failure to pay (beyond any period of grace permitted with respect thereto, whether waived or not) any Indebtedness when due (whether
at stated maturity, by acceleration, or otherwise) or if such breach or default permits or causes the acceleration of any Indebtedness
(whether or not such right shall have been exercised or waived) or the termination of any commitment to lend.

 

(f)                
Final Judgments or Orders. Any final judgments or orders for the payment of money shall be entered against the Company
by a court having jurisdiction in the premises, in an aggregate amount in excess of $500,000, which judgment is not discharged,
vacated, bonded, or stayed pending appeal within thirty (30) days after the entry of such final judgment; or the Company’s
or any of its Subsidiaries’ assets valued in an aggregate amount in excess of $500,000 are attached, seized, levied upon
or subjected to a writ or distress warrant; or such come within the possession of any receiver, trustee, custodian or assignee
for the benefit of creditors.

 

(g)               
Loan Document Unenforceable. Any of the Loan Documents shall cease to be legal, valid, and binding agreements enforceable
against the Company or PEI or shall in any way be terminated (except in accordance with its terms) or become or be declared ineffective
or inoperative or Agent, on behalf of the Lending Parties, fails to have an enforceable first priority Lien (subject only to Permitted
Liens) on or security interest in any Collateral given as security for any of the Obligations.

 

(h)               
Uninsured Losses. There shall occur any uninsured damage to or loss, theft, or destruction of any Collateral for
any of the Obligations valued in an aggregate amount in excess of $500,000; unless, within ten (10) Business Days of such damage,
loss, theft or destruction, the Company deposits with Agent such amount as Agent, in its sole discretion, determines is necessary
to correct or remedy the damage, loss, theft or destruction.

 

(i)                
Events Relating to Plans and Benefit Arrangements. (i) An ERISA Event occurs with respect to a Plan or Multiemployer
Plan which has resulted or could reasonably be expected to result in liability of the Company under Title IV of ERISA to the Plan,
Multiemployer Plan or the PBGC in an aggregate amount in excess of $500,000, or (ii) the Company or any ERISA Affiliate fails
to pay when due, after the expiration of any applicable grace period, any installment payment with respect to its withdrawal liability
under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount in excess of $500,000.

 

(j)                
Change of Control. There shall occur any Change of Control with respect to the Company.

 

(k)               
Material Adverse Change. There shall occur any Material Adverse Change with respect to the Company.

 

(l)                
Relief Proceedings. (i) Any proceeding seeking a decree or order for relief in respect of PEI, the Company or
any Subsidiary of the Company in a voluntary or involuntary case under any applicable bankruptcy, insolvency, reorganization or
other similar law now or hereafter in effect, or for the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator,
conservator (or similar official) of PEI, the Company or any Subsidiary of the Company for any material part of its property, or
for the winding-up or liquidation of its affairs, or an assignment for the benefit of its creditors (each a “Relief Proceeding”)
shall have been instituted against PEI, the Company or any Subsidiary of the Company and, in the case of any involuntary proceeding,
such Relief Proceeding shall remain undismissed or unstayed and in effect for a period of sixty (60) consecutive days, or such
court shall enter a decree or order granting any of the relief sought in such Relief Proceeding, (ii) PEI, the Company or
any Subsidiary of the Company institutes, or takes any action in furtherance of, a Relief Proceeding, or (iii) PEI, the Company
or any Subsidiary of the Company ceases to be solvent or admits in writing its inability to pay its debts generally as they come
due or fails to pay its debts as they come due; provided, that cautionary statements and risk factor disclosures made by PEI to
investors or prospective investors shall not be deemed to constitute such an admission.

 

 

 

 

 

 

 

    	 	24	 

     

    

 

(m)             
Affiliate Accounts. The Company shall fail to collect any account receivable from any Affiliate of the Company within
ten (10) Business Days after such account receivable arises.

 

9.2              
Remedies.

 

(a)               
Events of Default Other Than Bankruptcy, Insolvency or Reorganization Proceedings. If an Event of Default specified
under Sections 9.1(a) through 9.1(j) shall occur and be continuing, Lender: (i) shall be under no further obligation to extend
credit hereunder or under any Note, and may discontinue doing so at any time without prior notice to the Company or other limitation;
and (ii) may, in addition to any remedies allowed by any other Loan Document or Law, (A) by written notice to the Company
(which may be provided by Agent), declare the unpaid principal amount of the Obligations then outstanding and all interest accrued
thereon, any unpaid fees and all other Obligations and Indebtedness of the Company to Lender and Cash Management Provider hereunder
to be forthwith due and payable, and the same shall thereupon become and be immediately due and payable to Lender and Cash Management
Provider, as applicable, without presentment, demand, protest, or any other notice of any kind, all of which are hereby expressly
waived; and (B) require the Company to, and the Company shall thereupon, deposit in a non-interest-bearing account with or
as directed by Agent, as cash collateral for its Obligations, an amount equal to such Obligations, and the Company hereby pledges
to Agent, for the benefit of the Lending Parties, and grants to Agent, for the benefit of the Lending Parties, a security interest
in, all such cash as security for such Obligations and the Company shall agree to do all things as reasonably requested by Agent
in order to provide Agent, for the benefit of the Lending Parties, with a first priority security interest in such deposit account,
including allowing the deposit to be in the name of Agent.

 

(b)               
Bankruptcy, Insolvency or Reorganization Proceedings. If an Event of Default specified under Section 9.1(l) shall
occur, Lender shall be under no further obligations to extend credit hereunder or under any other Loan Document and the unpaid
principal amount of the Obligations then outstanding and all interest accrued thereon, any unpaid fees and all other Obligations
and Indebtedness of the Company to Lender and Cash Management Provider hereunder and thereunder shall be immediately due and payable,
without presentment, demand, protest, or notice of any kind, all of which are hereby expressly waived.

 

(c)               
Set-off. If an Event of Default shall have occurred and be continuing, Agent is hereby authorized at any time to
the fullest extent permitted by applicable Law, to set off and apply any and all funds (general or special, time or demand, provisional
or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by any Lending
Party or any Affiliate of any Lending Party to or for the credit or the account of the Company against any and all of the Obligations
of the Company now or hereafter existing under this Agreement or any other Loan Document to such Lending Party or such Affiliate.
The rights of the Lending Parties and their Affiliates under this Section 9.2(c) are in addition to other rights and remedies (including
other rights of setoff) that the Lending Parties or their Affiliates may have. Agent agrees to notify the Company promptly after
any such setoff and application; provided that the failure to give such notice shall not affect the validity of such setoff and
application.

 

 

 

 

 

 

 

 

 

 

    	 	25	 

     

    

 

(d)                Application
of Proceeds. From and after the date on which Agent has taken any action pursuant to this Section 9.2 and automatically following
an acceleration under Section 9.2(b), and until Payment in Full, any and all proceeds received by Agent from any sale or other
disposition of any Collateral for any of the Obligations, or any part thereof, or the exercise of any other remedy by Agent, shall
be applied as set forth in Section 10.12, to the extent permitted by applicable law.

 

ARTICLE
10      Agent.

 

10.1          
Appointment, Powers and Immunities of Agent. The Lending Parties hereby appoint and authorize Agent to act as their
agent under the Loan Documents with such powers as are specifically delegated to Agent by the terms of this Agreement, together
with such other powers as are reasonably incidental thereto. Agent shall, on behalf of the Lending Parties, perform all of the
loan servicing duties under the Loan Documents. Agent shall have no duties or responsibilities except those expressly set forth
in this Agreement and the Loan Documents, and shall not be a trustee or fiduciary for the Lending Parties regardless of whether
a Default or Event of Default has occurred and is continuing. Agent shall administer its duties and responsibilities in accordance
with its customary practices and procedures with respect to similar loans for its own account. Agent may employ agents and attorneys-in-fact
and shall not be responsible, except as to money or securities received by it or its authorized agents, for the negligence or misconduct
of any such agents or attorneys-in-fact selected by it with reasonable care. Subject to the preceding sentence, neither Agent nor
any of its respective directors, officers, employees or agents (each, a “Related Party” and collectively, the
“Related Parties”) shall be liable or responsible for any action taken or omitted to be taken by it or them
hereunder or under the Loan Documents or in connection herewith or therewith, except for its or their own gross negligence or willful
misconduct as determined by a court of competent jurisdiction in a final, nonappealable order; provided that in no event shall
Agent or any Related Party be liable for any action taken or omitted to be taken by it with the consent or at the request of a
Lending Party. The Company shall pay any fee(s) with respect to Agent’s services hereunder. The Company acknowledges the
appointment of Agent and agrees that the provisions of this ARTICLE 10 are solely for the benefit of the Lending Parties and the
Related Parties, and that the Company shall not have rights under this ARTICLE 10, including as a third party beneficiary.

 

10.2          
Reliance by Agent. Agent shall be entitled to rely upon any certification, notice or other communication (including
any thereof by telephone, telex, facsimile, telegram or cable) believed by it to be genuine and correct and to have been signed
or sent by or on behalf of the proper person or persons, and upon advice and statements of legal counsel, independent accountants
and other experts selected by Agent.

 

10.3           
Defaults. Agent shall not be deemed to have knowledge of the occurrence of a Default or Event of Default unless Agent
has received notice from a Lending Party or the Company specifying such Default or Event of Default and stating that such notice
is a “Notice of Default.” In the event that Agent receives such a Notice of Default from the Company, Agent shall give
prompt notice thereof to the Lending Parties. Agent shall take such action with respect to such Default or Event of Default which
is continuing as determined by the Lending Parties. Agent shall not be required to take any action which it or its counsel determines
to be contrary to Law or any Loan Document, or that would expose Agent to liability.

 

 

 

 

    	 	26	 

     

    

 

10.4          
Non-Reliance on Agent. Lender agrees that it has, independently and without reliance on Agent, and based on such documents
and information as it has deemed appropriate, made its own credit analysis of the Company and the decision to enter into this Agreement
and either originate the Loans or purchase a participation in the Loan Documents and that it will, independently and without reliance
upon Agent, and based on such documents and information as it shall deem appropriate at the time, continue to make its own analysis
and decisions in taking or not taking action under this Agreement and the other Loan Documents. Except as explicitly provided in
the Loan Documents, none of Agent, Cash Management Provider nor any Related Party shall be responsible to Lender for, nor shall
it have any duty to ascertain, inquire into or verify (a) any recitals, reports, statements, representations or warranties made
in connection with this Agreement or the other Loan Documents, (b) the contents of any certificate, report, instrument or other
document referred to, provided for or delivered under or in connection with this Agreement or the other Loan Documents, (c) the
performance or observance of any of the covenants, agreements or other terms or conditions set forth in this Agreement or the other
Loan Documents or the occurrence of any Default or Event of Default or the failure of the Company to perform any of its obligations
hereunder or thereunder, (d) the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or
any other Loan Document or any document or instrument referred to or provided for herein or therein or (e) the creation, attachment,
perfection or priority of any security interests or other liens purported to be granted to Lender pursuant to the Loan Documents.
Except as explicitly provided in the Loan Documents, Agent shall not be required to file this Agreement, any other Loan Document
or any document or instrument referred to herein or therein, or record or give notice of this Agreement or any other Loan Document
or any document or instrument referred to herein or therein, to anyone. Lender acknowledges and agrees that Agent only has the
duties and responsibilities explicitly set forth herein and in the other Loan Documents.

 

10.5          
Failure of Agent to Act. Except for action expressly required of Agent hereunder, Agent shall in all cases be fully
justified in failing or refusing to act hereunder unless it shall have received further assurances (which may include cash collateral)
in respect of any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such
action.

 

10.6          
Resignation or Removal of Agent. Subject to the appointment and acceptance of a successor Agent, as provided below,
Agent may resign at any time by giving written notice thereof to the Lending Parties and the Company. Upon any such resignation,
the Lending Parties shall have the right to appoint a successor Agent, which must be located in the United States of America. If
no successor Agent shall have been so appointed and shall have accepted such appointment within thirty (30) days after the retiring
Agent’s giving of notice of resignation, then the retiring Agent may, on behalf of the Lending Parties, appoint a successor
agent which must be located in the United States of America. The Lending Parties or the retiring Agent, as the case may be, shall
upon the appointment of a successor agent promptly so notify the Company. 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 hereunder, except for
any liability arising from gross negligence or willful misconduct prior to such discharge as determined by a court of competent
jurisdiction in a final, nonappealable order. After any retiring Agent’s resignation hereunder as Agent, the provisions of
this Agreement shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by it while it was
acting as Agent. Lender may, with cause, remove Agent as agent hereunder and appoint a successor Agent, which must be located in
the United States of America.

 

10.7          
Amendments Concerning Agency Function. Agent shall not be bound by any waiver, amendment, supplement or modification
of this Agreement or the other Loan Documents which affects its duties hereunder or thereunder unless it shall have given its prior
consent thereto.

 

10.8          
Liability of Agent. Agent shall not have any liabilities or responsibilities to the Company on account of the failure
of a Lending Party to perform its obligations hereunder or to a Lending Party on account of the failure of the Company to perform
its obligations hereunder or under the other Loan Documents.

 

 

 

 

 

 

 

    	 	27	 

     

    

 

10.9          
Transfer of Agency Function. Without the consent of the Company or the Lending Parties, Agent may at any time or from
time to time transfer its functions as Agent hereunder to any of its offices located in the United States of America, provided
that Agent shall promptly notify the Company and the Lending Parties.

 

10.10       
Non-Receipt of Funds by Agent.

 

(a)               
Unless Agent shall have received notice from Lender prior to the date on which Lender is to provide funds to Agent for an
advance to be made by Lender that Lender will not make available to Agent such funds, Agent may assume that Lender has made such
funds available to Agent on the date of such advance in accordance with the terms of this Agreement and the other Loan Documents
and Agent in its sole discretion may, but shall not be obligated to, in reliance upon such assumption, make available to the Company
on such date a corresponding amount. If and to the extent Lender shall not have made such funds available to Agent, Lender agrees
to repay Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the date such amount
is made available to the Company until the date such amount is repaid to Agent, at the customary rate set by Agent for the correction
of errors among banks for three (3) Business Days and thereafter at the Quoted Rate. If Lender shall repay to Agent such corresponding
amount, such amount so repaid shall constitute Lender’s advance for purposes of this Agreement and the other Loan Documents.
If Lender does not pay such corresponding amount forthwith upon Agent’s demand therefor, Agent shall promptly notify the
Company, and the Company shall immediately pay such corresponding amount to Agent with the interest thereon, for each day from
the date such amount is made available to the Company until the date such amount is repaid to Agent, at the rate of interest applicable
at the time to such proposed advance.

 

(b)               
Unless Agent shall have received notice from the Company prior to the date on which any payment is due hereunder that the
Company will not make such payment in full, Agent may assume that the Company has made such payment in full to Agent on such date
and Agent in its sole discretion may, but shall not be obligated to, in reliance upon such assumption, cause to be distributed
to Lender on such due date an amount equal to the amount then due Lender. If and to the extent the Company shall not have so made
such payment in full to Agent, Lender shall repay to Agent forthwith on demand such amount distributed to Lender together with
interest thereon, for each day from the date such amount is distributed to Lender until the date Lender repays such amount to Agent
at the customary rate set by Agent for the correction of errors among banks for three (3) Business Days and thereafter at the Quoted
Rate.

 

10.11       
Security Interests. The Lending Parties and Agent each agree that the security interests granted by the Company to Agent,
on behalf of the Lending Parties under all security agreements, pledge agreements, assignments, mortgages, deeds of trust, and
other documents and agreements granting security interests, among the Company, as Grantor, and Agent, for the benefit of the Lending
Parties, to secure the obligations or indebtedness of the Company to the Lending Parties, shall secure the Lending Parties on a
pari passu and pro rata basis.

 

10.12       
 Intercreditor Provisions. After the occurrence of an Event of Default, any amounts
collected on the Collateral or payments received under the Loan Documents shall be applied first, to the payment of all reasonable
out-of-pocket costs and expenses incurred by the Lending Parties and Agent in enforcing its or their rights against the Company;
second, to the payment of any fees owed to the Lending Parties and Agent; third, to the payment of all accrued and unpaid interest
under the Loan Documents and amounts due as a result of cash management services performed by Cash Management Provider; fourth,
to the payment of outstanding principal amounts of the Company’s Obligations under the Loan Documents; fifth, to the payment
of any other of the Company’s obligations to the Lending Parties or Agent; and sixth, to the payment of the surplus, if any,
to whomever may be lawfully entitled to receive such surplus. In carrying out the foregoing, (a) amounts received shall be applied
in the numerical order provided until exhausted prior to application to the next succeeding category; and (b) if the amounts received
are insufficient to pay all amounts due within a particular category, then each party shall receive an amount equal to its pro
rata share (based on the proportion that the amount owed to that party within such category bears to the aggregate amount due within
that category) of amounts available to be applied pursuant to clauses “first,” “second,” “third,”
“fourth,” and “fifth” above.

 

 

 

 

 

 

 

 

 

    	 	28	 

     

    

 

ARTICLE
11      Miscellaneous.

 

11.1          
Amendments; Waivers; Severability. NO MODIFICATION OR AMENDMENT TO ANY PROVISION OF THIS AGREEMENT SHALL BE EFFECTIVE
UNLESS MADE IN WRITING IN AN AGREEMENT SIGNED BY THE COMPANY AND THE LENDING PARTIES. No course of dealing or failure or delay
of Agent or any Lending Party in exercising any power or right hereunder or under any other Loan Document shall affect any other
or future exercise thereof or operate as a waiver thereof, nor shall any single or partial exercise of any such right or power,
or any failure to exercise or enforce such a right or power, preclude any other or further exercise thereof or any other right
or power. No notice to or demand on the Company in any case shall entitle the Company to any other or further notice or demand
in similar or other circumstances. No waiver of any provision of this Agreement or any other Loan Document or consent to any departure
by the Company herefrom or therefrom shall in any event be effective unless made specifically in writing by Agent and then such
waiver or consent shall be effective only in the specific instance and for the purpose for which given. All rights and remedies
of the Lending Parties pursuant to this Agreement, under any other Loan Document, or under Law shall be cumulative, and no such
right or remedy shall be exclusive of any other such right or remedy. The provisions of this Agreement and the other Loan Documents
are intended to be severable. If any provision of this Agreement or other Loan Document shall be held invalid or unenforceable
in whole or in part in any jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such invalidity
or unenforceability without in any manner affecting the validity or enforceability thereof in any other jurisdiction or the remaining
provisions hereof in any such jurisdiction.

 

11.2          
Expenses; Indemnity; Damage Waiver.

 

(a)               
Costs and Expenses. The Company shall pay all costs and expenses incurred by the Lending Parties and their Affiliates
(including the reasonable fees, costs, charges and disbursements of counsel engaged or retained by the Lending Parties) in connection
with the preparation, negotiation, execution, delivery, and administration of this Agreement and the other Loan Documents or any
amendments, modifications, or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby
or thereby shall be consummated), including (i) all expenses incurred by the Lending Parties (including the reasonable fees, costs,
charges and disbursements of any counsel or financial consultant engaged or retained by a Lending Party), (a) in connection
with this Agreement and the other Loan Documents, or (b) in connection with the Loans or other Obligations and (ii) notwithstanding
anything to the contrary contained herein, all expenses incurred by the Lending Parties (including the fees, costs, charges and
disbursements of any counsel engaged or retained by a Lending Party) in connection with any workout or restructuring in respect
of any such Loans or other Obligations, any enforcement of the Loan Documents or any realization on any of the Collateral or otherwise
incurred by any Lending Party after the occurrence an Event of Default.

 

 

 

 

 

 

 

    	 	29	 

     

    

 

(b)               
Indemnification by the Company. The Company shall indemnify each Lending Party and any Affiliate thereof and each
of their respective officers, directors, employees, agents, and advisors (each an “Indemnitee”) against, and
hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities, and related expenses (including the fees,
costs, charges and disbursements of any counsel engaged or retained by any Indemnitee) incurred by any Indemnitee or asserted against
any Indemnitee by any third party or by the Company arising out of, in connection with, or as a result of (i) the execution
or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance
or nonperformance by the Company of its or their respective obligations hereunder or under the other Loan Documents or the consummation
of the transactions contemplated hereby or thereby, (ii) any Loan or the use or proposed use of the proceeds therefrom, (iii) breach
of representations, warranties, or covenants of the Company under any of the Loan Documents, or (iv) any actual or prospective
claim, litigation, investigation, or proceeding relating to any of the foregoing, including any such items or losses relating to
or arising under Environmental Laws or pertaining to environmental matters, whether based on contract, tort, or any other theory,
whether brought by the Company or any third party, and regardless whether any Indemnitee is a party thereto; provided that such
indemnity shall not, as to an Indemnitee, be available to the extent that such losses, claims, damages, liabilities, or related
expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Indemnitee.

 

(c)               
Waiver of Consequential Damages, Etc. To the fullest extent permitted by applicable Law, the Company shall not assert,
and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive
damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other
Loan Document or any agreement or instrument contemplated hereby or thereby, the transactions contemplated hereby or thereby, any
Loan relating hereto, or the use of the proceeds thereof. To the fullest extent permitted by applicable law, no Indemnitee shall
be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it
through telecommunications, electronic, or other information transmission systems in connection with this Agreement or the other
Loan Documents or the transactions contemplated hereby or thereby.

 

(d)               
Payments. All amounts due under any of this Section 11.2 shall be payable not later than ten (10) days after demand
therefor.

 

11.3          
Holidays. Whenever a payment to be made or taken on a Loan arising hereunder shall be due on a day which is not a Business
Day, such payment shall be due on the next Business Day and such extension of time shall be included in computing interest and
fees, except that such payments shall be due on the Business Day preceding the expiration or maturity date thereof if such date
is not a Business Day. Whenever any payment or action to be made or taken hereunder (other than payment of the Loans arising hereunder)
shall be stated to be due on a day which is not a Business Day, such payment or action shall be made or taken on the next following
Business Day, and such extension of time shall not be included in computing interest or fees, if any, in connection with such payment
or action.

 

11.4          
Notices; Effectiveness; Electronic Communication.

 

(a)               
Notices Generally. Except in the case of notices and other communications expressly permitted to be given by telephone
(and except as provided in Section 11.4(b)), all notices and other communications to a Person provided for herein and in the other
Loan Documents shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered
mail or sent by telecopier to it at its address set forth on such Person’s signature page of this Agreement.

 

Notices sent by hand
or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received. Notices
sent by telecopier shall be deemed to have been given when sent (except that, if not given during normal business hours for the
recipient, such notices shall be deemed to have been given at the opening of business on the next Business Day for the recipient).
Notices delivered through electronic communications to the extent provided in Section 11.4(b), shall be effective as provided in
such section.

 

 

 

 

 

 

 

    	 	30	 

     

    

 

(b)               
Electronic Communications. Notices and other communications between Agent and the Company may be made by email sent
to an email address of such Person shown on such Person’s signature page to this Agreement and shall be deemed received upon
the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested”
function, as available, return email or other written acknowledgement); provided that if such notice or other communication is
not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the
opening of business on the next Business Day for the recipient.

 

(c)               
Change of Address, Etc. Either party hereto may change its address, email address or telecopier number for notices
and other communications hereunder by notice to the other party hereto in accordance with the terms of this Section 11.4.

 

11.5          
Duration; Survival. All representations and warranties of the Company contained herein or in any other Loan Document,
or made in connection herewith or therewith, shall survive the execution and delivery of this Agreement and Payment in Full. All
covenants and agreements of the Company contained herein or in the Notes or in any other Loan Document relating to the payment
of principal, interest, fees, premiums, additional compensation, expenses, or indemnification shall survive Payment In Full. All
other covenants and agreements of the Company shall continue in full force and effect from and after the date hereof and until
Payment In Full.

 

11.6           
Successors and Assigns; Participations. This Agreement is entered into for the benefit of, and shall be binding upon,
the parties hereto and their respective successors and assigns permitted hereby, except that the Company shall not assign or otherwise
transfer any of its rights or obligations hereunder without the prior written consent of Agent. Lender may at any time sell, assign,
securitize, or grant participations in all, or a portion of, Lender’s rights and obligations under this Agreement (including
all or a portion of the Obligations). No participation shall relieve Lender of any commitment made to the Company hereunder. In
connection with the foregoing, Agent and Lender may disclose information concerning the Company and its Subsidiaries, if any, to
any assignee, participant, or prospective assignee or participant, provided that such assignee, participant, or prospective assignee
or participant agrees, subject to qualifications contained in Section 11.7(a)(vi), to keep such information confidential. A sale
of a participation interest shall be subject to Section 6.2(b) and may include certain voting rights of the participants regarding
the Loan Documents (including the administration, amendment and modification, servicing, and enforcement thereof). Agent agrees
to give written notification to the Company of any sale of a participation interest herein, provided that the failure to do so
shall not adversely affect the rights of any Lender Party hereunder or under any other Loan Document.

 

11.7           
Confidentiality.

 

(a)               
General. Agent and the Lending Parties agree to maintain the confidentiality of the information received from the
Company or any of its Subsidiaries relating to the respective businesses of the Company or any of its Subsidiaries, other than
any such information that is available to Agent or a Lending Party on a non-confidential basis prior to disclosure by the Company
or any of its Subsidiaries and other than any information received from the Company or any of its Subsidiaries after the date of
this Agreement which is not clearly identified at the time of delivery as confidential, except that any information received from
the Company or any of its Subsidiaries may be disclosed (i) to Affiliates of Agent or the Lending Parties and to their and
their Affiliates’ respective partners, directors, officers, employees, agents, advisors and other representatives (it being
understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such information (to
the extent so provided for herein) and instructed to keep such information confidential), (ii) to any regulatory authority
having or purporting to have jurisdiction over Agent or any Lending Party, (iii) to the extent required by applicable Laws
or regulations or by any subpoena or similar legal process, (iv) to any other party hereto, (v) in connection with the
exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any
other Loan Document or the enforcement of rights hereunder or thereunder, (vi) subject to an agreement containing provisions
substantially the same as those of this Section 11.7(a), to (A) any assignee of or participant in, or any prospective assignee
of or participant in, any of its rights or obligations under this Agreement or any other Loan Document, or (B) any actual
or prospective counterparty (or its advisors) to any Interest Rate Hedge or other swap or derivative transaction relating to the
Company and its obligations, (vii) with the consent of the Company or (viii) to the extent any such information (Y) becomes
publicly available other than as a result of a breach of this Section 11.7(a) or (Z) becomes available to Agent or any Lending
Party or any of their Affiliates on a non-confidential basis from a source other than the Company. Any Person required to maintain
the confidentiality of any Information as provided in this Section 11.7(a) shall be considered to have complied with its obligation
to do so if such Person has exercised the same degree of care to maintain the confidentiality of such information as such Person
would accord to its own confidential information.

 

 

 

 

 

 

 

    	 	31	 

     

    

 

(b)               
Sharing Information With Affiliates. The Company acknowledges that from time to time financial advisory, investment
banking, and other services may be offered or provided to the Company or one or more of its Affiliates (in connection with this
Agreement or otherwise) by Agent or any Lending Party or by one or more of their Affiliates, and the Company authorizes Agent and
each Lending Party to share any information delivered to Agent or any Lending Party by the Company and its Subsidiaries pursuant
to this Agreement to any such Affiliate of Agent or any Lending Party subject to the provisions of Section 11.7(a).

 

11.8          
Counterparts; Integration; 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 and the other Loan Documents constitute the entire contract among the parties relating to the subject
matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter
hereof including any prior confidentiality agreements and commitments. Except as provided in ARTICLE 4, this Agreement shall become
effective when it shall have been executed by Agent and the Lending Parties 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,
but shall in any event be promptly followed by delivery of the original manually executed signature page (provided, however, that
the failure to do so shall in no event adversely affect the rights of Agent or the Lending Parties hereunder whatsoever).

 

11.9          
Governing Law. This Agreement shall be deemed to be a contract under the Laws of the State of Colorado without regard
to its conflict of laws principles.

 

11.10       
SUBMISSION TO JURISDICTION; SERVICE OF PROCESS; VENUE; WAIVER OF JURY TRIAL. THE COMPANY HEREBY IRREVOCABLY CONSENTS
TO THE NONEXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT IN DENVER, COLORADO, AND CONSENTS THAT AGENT MAY EFFECT ANY SERVICE
OF PROCESS IN THE MANNER AND AT THE COMPANY’S ADDRESS SET FORTH HEREIN FOR PROVIDING NOTICE OR DEMAND; PROVIDED THAT NOTHING
CONTAINED IN THIS AGREEMENT WILL PREVENT AGENT OR ANY LENDING PARTY FROM BRINGING ANY ACTION, ENFORCING ANY AWARD OR JUDGMENT OR
EXERCISING ANY RIGHTS AGAINST THE COMPANY INDIVIDUALLY, AGAINST ANY COLLATERAL OR AGAINST ANY PROPERTY OF THE COMPANY WITHIN ANY
OTHER COUNTY, STATE OR OTHER FOREIGN OR DOMESTIC JURISDICTION. THE COMPANY ACKNOWLEDGES AND AGREES THAT THE VENUE PROVIDED ABOVE
IS THE MOST CONVENIENT FORUM FOR THE COMPANY, AGENT AND THE LENDING PARTIES. THE COMPANY WAIVES ANY OBJECTION TO VENUE AND ANY
OBJECTION BASED ON A MORE CONVENIENT FORUM IN ANY ACTION INSTITUTED UNDER THIS AGREEMENT. THE COMPANY, AGENT AND THE LENDING PARTIES
EACH HEREBY WAIVES TRIAL BY JURY IN CONNECTION WITH ANY ACTION INSTITUTED UNDER THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT.

 

 

 

 

    	 	32	 

     

    

 

11.11       
USA Patriot Act Notice. Agent hereby notifies the Company that pursuant to the requirements of the USA Patriot Act,
as followed by Agent pursuant to its board policy, it is required to obtain, verify, and record information that identifies the
Company, which information includes the name and address of the Company and other information that will allow Agent to identify
the Company in accordance with the USA Patriot Act.

 

 

 

[SIGNATURE PAGES FOLLOW]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	33	 

     

    

 

[SIGNATURE PAGE TO CREDIT AGREEMENT]

 

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

 

	 	COMPANY
	 	 
	 	ILLINOIS CORN PROCESSING, LLC
	 	 
	 	 
	 	By: /S/ BRYON T. MCGREGOR
	 	Name: Bryon T. McGregor
	 	Title: Chief Financial Officer
	 	 
	 	Notice Address for the Company:
	 	 
	 	Illinois Corn Processing, LLC
	 	c/o Pacific Ethanol, Inc.
	 	400 Capital Mall, Suite 2060
	 	Sacramento, California 95814
	 	Attention: Chief Financial Officer
	 	Email Address: bmcgregor@pacificethanol.com
	 	 
	 	With a copy to:
	 	 
	 	Pacific Ethanol, Inc.
	 	400 Capital Mall, Suite 2060
	 	Sacramento, California 95814
	 	Attention: General Counsel
	 	Email Address: cwright@pacificethanol.com
	 	 
	 	With a copy to:
	 	 
	 	Troutman Sanders, LLP
	 	5 Park Plaza, Suite 1400
	 	Irvine, California 92614
	 	Attention:	Larry Cerutti, Esq.
	 	 	Martin Taylor, Esq.
	 	Email Address:	Larry.Cerutti@troutmansanders.com
	 	 	Martin.Taylor@troutmansanders.com

 

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

 

[SIGNATURE PAGE TO CREDIT AGREEMENT]

 

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/ DALE A. RICHARDSON
	 	Name: Dale A. Richardson
	 	Title: Managing Director, Capital Markets
	 	 
	 	 
	 	Notice Address for the Company:
	 	 
	 	Compeer Financial, PCA
	 	1560 Wall Street, Suite 221
	 	Naperville, Illinois 60563
	 	Attention:  Dale Richardson,
Managing Director – Capital Markets
	 	Fax No.: (630) 527-9459
	 	Email Address:  dale.richardson@compeer.com
	 	 
	 	 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

 

[SIGNATURE PAGE TO CREDIT AGREEMENT]

 

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

 

 

	 	CASH MANAGEMENT PROVIDER AND
AGENT:
	 	 
	 	COBANK, ACB
	 	 
	 	 
	 	By: /S/ TOM D. HOUSER
	 	Name: Tom D. Houser
	 	Title: Vice President
	 	 
	 	Notice Address for CoBank:
	 	 
	 	6340 S. Fiddlers Green Circle
	 	Greenwood Village, Colorado 80111-1914
	 	Attention: Credit Information Services
	 	Fax No.: (303) 224-6101
	 	Email Address: CIServices@CoBank.com
	 	 
	 	 

 

 

 

 

 

 

    	 	 	 

     

    

ANNEX A

 

Definitions and Rules of Construction

 

A.       Defined
Terms. In this Agreement, capitalized terms not otherwise defined herein shall have the respective meanings ascribed to them
by the Notes and the following words and terms shall have the respective meanings set forth below:

 

“Affiliate” means, with
respect to any Person, any other Person (i) which directly or indirectly controls, is controlled by, or is under common control
with such Person, (ii) which beneficially owns or holds 5% or more of any class of the voting or other equity interests of
such Person, or (iii) 5% or more of any class of voting interests or other equity interests of which is beneficially owned or held,
directly or indirectly, by such Person. Each of Farm Credit Leasing Services Corporation and CoBank, FCB are “Affiliates”
of Agent for all purposes under this Agreement.

 

“Agent” means CoBank,
in its capacity as administrative and collateral agent under the Loan Documents.

 

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

 

“Anti-Terrorism Law”
means any Law relating to terrorism or money laundering, including Executive Order No. 13224, the USA Patriot Act, the Laws comprising
or implementing the Bank Secrecy Act, and the Laws administered by the United States Treasury Department’s Office of Foreign
Asset Control, as any of the foregoing Laws may from time to time be amended, renewed, extended, or replaced.

 

“Authorized Officer”
means an officer or other individual duly authorized to execute Loan Documents on behalf of Agent, each Lending Party, the Company
or PEI, as the case may be, as designated from time to time in the case of the Company and PEI on forms supplied or approved by
Agent.

 

“Brokerage Account”
means any commodity account that is owned by the Company and maintained with a commodity intermediary for trading in Commodities
Contracts.

 

“Business” is defined
in Section 5.12(b).

 

“Business Day” means
a day that is not a Saturday, a Sunday, or a day on which Agent’s principal office in Greenwood Village, Colorado, is closed
pursuant to authorization or requirement of law and, if the applicable Business Day relates to a Loan to which the LIBOR Index
Option applies, such day must also be a day on which dealings are carried on in the London interbank market and, if the applicable
Business Day relates to a Loan to which the Quoted Rate Option applies, such day must also be a day on which the Federal Reserve
Bank of New York (or any successor) is open.

 

“Capital Lease” means,
with respect to any Person, any lease of (or other agreement conveying the right to use) any real or personal property of such
Person that, in conformity with GAAP, is accounted for as a capital lease on the balance sheet of such Person.

 

“Capital Stock” means,
with respect to any corporation, partnership, limited liability company, cooperative or other entity, any capital stock, partnership
interests, limited liability company interests, membership interests or other equity or ownership interests of or in such corporation,
partnership, limited liability company, cooperative or other entity and any warrants, rights or options to purchase or acquire
any such capital stock, partnership interests, limited liability company interests, membership interests or other equity or ownership
interests.

 

 

 

 

 

 

 

    	 	Annex A-1	 

     

    

 

“Cash Management Provider”
means CoBank, as provider of cash management services to the Company.

 

“Change in Law” means
the occurrence, after the date of this Agreement, of any of the following: (i) the adoption or taking effect of any Law, (ii) any
change in any Law or in the administration, interpretation or application thereof by any Official Body, or (iii) the making
or issuance of any request, guideline or directive (whether or not having the force of Law) by any Official Body; provided that
notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act, and all
requests, regulations, rules, guidelines, directives, opinions, rulings, orders, interpretations, and the like promulgated or provided
in connection therewith and (y) all requests, regulations, rules, guidelines, directives, opinions, rulings, orders, interpretations,
and the like promulgated or provided by the Bank for International Settlements, the Basel Committee on Banking Supervision (or
any successor or similar authority), or the United States or foreign regulatory authorities, in each case pursuant to Basel III,
shall in each case be deemed to be a “Change in Law,” regardless of the date enacted, adopted, or issued.

 

“Change of Control”
means each and every issuance, sale, transfer or other disposition, directly or indirectly, of Voting Stock of or in (a) PEI which,
after giving effect thereto, results in any Person owning, directly or indirectly, more than 50% of the Voting Stock of or in PEI,
(b) PEC which, after giving effect thereto, results in any Person (other than PEI) owning, directly, any of the Voting Stock of
or in PEC, (c) the Company which, after giving effect thereto, results in any Person (other than PEC) owning, directly, any of
the Voting Stock of or in the Company, or (d) the Company which, after giving effect thereto, (i) results in the Company no longer
being an entity eligible to borrow from Lender or (ii) becoming ineligible to borrow from Lender at the amounts set forth in the
Term Note or Revolving Term Note.

 

“Closing Date” means
the Business Day on which the first Loan is made hereunder.

 

“CoBank” means CoBank,
ACB, a federally-chartered instrumentality of the United States.

 

“CoBank Cash Management Agreement”
means the Master Agreement for Cash Management and Transaction Services between CoBank and the Company, or such other similar agreement,
including all exhibits, schedules and annexes thereto and including all related forms delivered by the Company to CoBank related
to or in connection therewith.

 

“Code” means the Internal
Revenue Code of 1986, as the same may be amended or supplemented from time to time, and any successor statute of similar import,
and the rules and regulations thereunder, as from time to time in effect.

 

“Collateral” is defined
in Section 6.3.

 

“Commodity Contract”
means a commodity futures contract or an option on a commodity futures contract, a commodity option and any other commodity related
contract, interest or transaction that a commodity intermediary transacts for the benefit of the Company.

 

“Commodity Exchange Act”
means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.

 

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

 

“Compliance Certificate”
is defined in Section 6.1(c).

 

 

 

 

 

    	 	Annex A-2	 

     

    

 

“Consolidated Group”
means the Company and its Consolidated Subsidiaries.

 

“Consolidated Subsidiary”
means at any time, any Subsidiary, the accounts of which are or should, in accordance with GAAP, be consolidated with those of
the Company in its consolidated financial statements at such time.

 

“Debt Service Coverage Ratio”
means, with respect to any Person as of any date of determination, the following (all as calculated for the most recently completed
fiscal year in accordance with GAAP consistently applied): (1) net income (after taxes), plus any amount which, in the determination
of net income, has been deducted for depreciation and amortization expense and any non-recurring non-cash charges, losses or expenses
approved by Agent, minus any amount which, in the determination of net income, has been added for any non-cash income or gains
(including non-cash income or gains on dividends received) and any extraordinary, unusual or non-recurring income or gains (including
income or gains on asset sales); divided by (2) $6,000,000.

 

“Default” means any
event or condition which with notice or passage of time, or both, would constitute an Event of Default.

 

“Delegation Form” means
Agent’s Delegation and Wire and Electronic Transfer Form, or any substitute form therefor used by Agent from time to time.

 

“Environmental Indemnity Agreement”
means that certain Environmental Indemnity Agreement dated of even date herewith by the Company and PEI in favor of Agent and Lender,
as the same may be amended, restated, modified or supplemented from time to time.

 

“Environmental Laws”
means all applicable Laws issued by or entered into with an Official Body pertaining or relating to: (i) pollution or pollution
control; (ii) protection of human health from exposure to hazardous or regulated substances; (iii) protection of the
environment or natural resources; (iv) employee safety in the workplace; (v) the presence, use, management, generation,
manufacture, processing, extraction, treatment, recycling, refining, reclamation, labeling, packaging, sale, transport, storage,
collection, distribution, disposal, or release or threat of release of hazardous or regulated substances; (vi) the presence
of contamination; (vii) the protection of endangered or threatened species; or (viii) the protection of environmentally
sensitive areas.

 

“Environmental Liability”
means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties
or indemnities), of the Company directly or indirectly resulting from or based upon (i) violation of any Environmental Law; (ii)
the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials; (iii) exposure to any
Hazardous Materials; (iv) the release or threatened release of any Hazardous Materials into the environment; or (v) any contract,
agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.

 

“ERISA” means the Employee
Retirement Income Security Act of 1974, as the same may be amended or supplemented from time to time, and any successor statute
of similar import, and the rules and regulations thereunder, as from time to time in effect.

 

“ERISA Affiliate” means,
at any time, any trade or business (whether or not incorporated) under common control with the Company and treated as a single
employer under Section 414 of the Code.

 

 

 

 

 

    	 	Annex A-3	 

     

    

 

“ERISA Event” means
(i) a reportable event (under Section 4043 of ERISA) with respect to a Plan; (ii) a withdrawal by the Company or
any ERISA Affiliate from a Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer
(as defined in Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e)
of ERISA; (iii) a complete or partial withdrawal by the Company or any ERISA Affiliate from a Multiemployer Plan or notification
that a Multiemployer Plan is in reorganization; (iv) the filing of a notice of intent to terminate, the treatment of a Plan
amendment as a termination under Sections 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate
a Plan or Multiemployer Plan; (v) an event or condition which constitutes grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Plan or Multiemployer Plan; or (vi) the imposition of any
liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the
Company or any ERISA Affiliate.

 

“Event of Default” is
defined in Section 9.1.

 

“Excluded Taxes” means
(i) taxes imposed on or measured by the overall net income of each Lending Party (however denominated), and franchise taxes
imposed on each Lending Party (in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof) under the
Laws of which each Lending Party is organized or in which its principal office is located or in which its applicable lending office
is located, and (ii) any branch profits taxes imposed by the United States of America or any similar tax imposed by any other
jurisdiction in which the Company is located.

 

“Facilities” is defined
in ARTICLE 2.

 

“FCPA” means the Foreign
Corrupt Practices Act of 1977, as the same may be amended or supplemented from time to time, and any successor statute of similar
import, and the rules and regulations thereunder, as from time to time in effect.

 

“Flood Laws” means,
collectively, (i) the National Flood Insurance Act of 1968, (ii) the Flood Disaster Protection Act of 1973, (iii) the National
Flood Insurance Reform Act of 1994 and (iv) the Flood Insurance Reform Act of 2004, in each case, as now or hereinafter in effect,
and any successor statute thereto, and all such other applicable Laws related thereto.

 

“GAAP” means generally
accepted accounting principles in the United States of America in effect from time to time and consistently applied from period
to period.

 

“Hazardous Materials”
means (i) any explosive or radioactive substances, materials or wastes, and (ii) any hazardous or toxic substances, materials or
wastes, defined or regulated as such in or under, or that could reasonably be expected to give rise to liability under, any applicable
Environmental Law, including, without limitation, asbestos, polychlorinated biphenyls, urea-formaldehyde insulation, gasoline or
petroleum (including crude oil or any fraction thereof) or petroleum products.

 

“Indebtedness” means
any and all indebtedness, obligations, or liabilities (whether matured or unmatured, liquidated or unliquidated, direct or indirect,
absolute or contingent, or joint or several) for or in respect of: (i) borrowed money, (ii) amounts raised under or liabilities
in respect of any note purchase or acceptance credit facility, (iii) any letter of credit or any bankers or trade acceptance
arrangement, (iv) obligations under any Interest Rate Hedge, or under any currency, commodity, or other swap agreement or
other hedging or risk management device, (v) any other transaction (including forward sale or purchase agreements, Capital
Leases, or conditional sales agreements) having the commercial effect of a borrowing of money (but not including trade payables
or accrued expenses incurred in the ordinary course of business which are not represented by a promissory note or other evidence
of indebtedness and which are not more than sixty (60) days past due or Operating Leases), or (vi) any guaranty of Indebtedness
for borrowed money.

 

 

 

 

    	 	Annex A-4	 

     

    

 

“Indemnified Taxes”
means (i) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of
the Company under any Loan Document and (ii) to the extent not otherwise described in (i), Other Taxes.

 

“Indemnitee” is defined
in Section 11.2(b).

 

“Interest Rate Hedge”
means any interest rate exchange, collar, cap, swap, adjustable strike cap, adjustable strike corridor or similar agreement.

 

“Interest Rate Option”
means the Company’s option to have Loans under a Facility bear interest at the LIBOR Index Option or Quoted Rate Option,
in each case, pursuant to and as permitted by the terms of the applicable Note.

 

“IRS” means the Internal
Revenue Service.

 

“Law” means any law
(including common law), constitution, statute, treaty, regulation, rule, ordinance, opinion, release, ruling, order, injunction,
writ, decree, bond, judgment, consent, authorization, approval, lien or award of or by, or any settlement agreement with, any Official
Body.

 

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

 

“Lender Equities” is
defined in Section 6.2(a).

 

“Lending Parties” means,
collectively, Lender and CoBank.

 

“Lending Party” means,
individually, Lender or CoBank.

 

“LIBOR Index Option”
means the option of the Company to have Loans bear interest at the LIBOR Index Rate.

 

“LIBOR Index Rate” means
a rate (rounded upward to the nearest 1/100th and adjusted for reserves required on “Eurocurrency Liabilities” (as
hereinafter defined) for banks subject to “FRB Regulation D” (as hereinafter defined) or required by any other federal
law or regulation) per annum equal at all times to the LIBOR Index Spread plus the higher of: (a) zero percent (0.000%); or (b)
the rate reported at 11:00 a.m. London time for the offering of one (1)-month U.S. dollars deposits, by Bloomberg Information Services
(or on any successor or substitute service providing rate quotations comparable to those currently provided by such service, as
determined by Agent from time to time, for the purpose of providing quotations of interest rates applicable to dollar deposits
in the London interbank market) on the first “U.S. Banking Day” (as hereinafter defined) in each week, with such rate
to change weekly on such day. The rate shall be reset automatically, without the necessity of notice being provided to the Company
or any other party, on the first “U.S. Banking Day” of each succeeding week, and each change in the rate shall be applicable
to all balances subject to this option. Information about the then-current rate shall be made available upon telephonic request.
For purposes hereof: (1) “U.S. Banking Day” shall mean a day on which Agent is open for business and banks are open
for business in New York, New York; (2) “Eurocurrency Liabilities” shall have the meaning as set forth in “FRB
Regulation D”; and (3) “FRB Regulation D” shall mean Regulation D as promulgated by the Board of Governors of
the Federal Reserve System, 12 CFR Part 204, as amended.

 

“LIBOR Index Spread”
shall have the meaning set forth in the applicable Note.

 

 

 

 

 

 

 

 

 

    	 	Annex A-5	 

     

    

 

“Lien” means any mortgage,
deed of trust, pledge, lien, security interest (including a purchase money security interest), charge or other encumbrance or security
arrangement of any nature whatsoever, whether voluntarily or involuntarily given, including any conditional sale or title retention
arrangement, and any assignment, deposit arrangement or lease intended as, or having the effect of, security and any filed financing
statement or other notice of any of the foregoing (whether or not a lien or other encumbrance is created or exists at the time
of the filing).

 

“Loan” means, unless
the context indicates otherwise, each Loan as such term is defined in each Note.

 

“Loan Documents” means
this Agreement, each Note, the Environmental Indemnity Agreement, each Interest Rate Hedge, 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.

 

“Loan Request” has the
meaning set forth in each Note.

 

“Material Adverse Change”
means any set of circumstances or events which (i) has or could reasonably be expected to have any material adverse effect
whatsoever upon the validity or enforceability of this Agreement or any other Loan Document, (ii) is or could reasonably be
expected to be material and adverse to the business, properties, assets, financial condition, results of operations, or prospects
of the Company taken as a whole, (iii) impairs materially or could reasonably be expected to impair materially the ability
of the Company taken as a whole to duly and punctually pay or perform any of the Obligations or PEI to duly and punctually pay
or perform any of its obligations under the Environmental Indemnity Agreement or (iv) impairs materially or could reasonably
be expected to impair materially the ability of Agent or any Lending Party, to the extent permitted, to enforce its legal remedies
pursuant to this Agreement or any other Loan Document.

 

“Multiemployer Plan”
means any employee benefit plan which is a “multiemployer plan” within the meaning of Section 4001(a)(3) of ERISA
and to which the Company or any ERISA Affiliate is then making or accruing an obligation to make contributions or, within the preceding
five Plan years, has made or had an obligation to make such contributions.

 

“Note” means each promissory
note issued in connection with this Agreement at any time.

 

“Obligations” means
all obligations, indebtedness, and liabilities to any Lending Party or any Subsidiary or Affiliate of a Lending Party, of any nature
whatsoever arising at any time and from time to time including those arising under this Agreement, any Note, or any other Loan
Document and including those arising under Interest Rate Hedges, Swap Obligations or agreements governing other financial services
or products (including cash management services) provided by any Lending Party or one of their Subsidiaries or Affiliates to the
Company.

 

“Official Body” means
the government of the United States of America or any other nation or tribe, or of any political subdivision thereof, whether state,
local, tribal or territorial, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory, or administrative powers or functions of or pertaining to government
and any group or body charged with setting financial accounting or regulatory capital rules or standards (including the Financial
Accounting Standards Board, the Bank for International Settlements or the Basel Committee on Banking Supervision or any successor
or similar authority to any of the foregoing).

 

 

 

 

 

 

    	 	Annex A-6	 

     

    

 

“Operating Lease” means,
with respect to any Person, any leasing or similar arrangement of such Person for the lease or use of any equipment or other personal
property assets for a period in excess of one year, which, in conformity with GAAP, would not be characterized as a Capital Lease.

 

“Organizational Documents”
means (i) with respect to any corporation, the certificate or articles of incorporation and the bylaws (or equivalent or comparable
constitutive documents with respect to any non-U.S. jurisdiction), (ii) with respect to any limited liability company, the certificate
of formation or articles of organization and the operating agreement or limited liability company agreement and (iii) with respect
to any partnership, cooperative, joint venture, trust or other form of business entity, the partnership, cooperative, joint venture
or other applicable agreement of formation or organization and any agreement, instrument, filing or notice with respect thereto
filed in connection with its formation or organization with the applicable Official Body in the jurisdiction of its formation or
organization and, if applicable, any certificate or articles of formation or organization of such entity.

 

“Other Taxes” means
all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made
under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security
interest under, or otherwise with respect to, this Agreement, any Note, or any other Loan Document.

 

“Payment in Full” means
the completion of the transactions hereunder and the indefeasible payment in full in cash of all Obligations hereunder and the
termination of all commitments hereunder.

 

“PBGC” means the Pension
Benefit Guaranty Corporation established pursuant to Subtitle A or Title IV of ERISA or any successor.

 

“PEC” means Pacific
Ethanol Central, LLC, a limited liability company organized and existing under the laws of Delaware.

 

“PEI” means Pacific
Ethanol, Inc., a corporation organized and existing under the laws of Delaware.

 

“Permitted Indebtedness”
is defined in Section 7.1.

 

“Permitted Liens” is
defined in Section 7.2.

 

“Person” means any individual,
sole proprietorship, partnership, limited liability company, joint venture, trust, unincorporated organization, association, corporation,
institution, public benefit corporation, firm, joint stock company, estate, entity or governmental agency.

 

“Personal Property Collateral”
is defined in Section 6.3.

 

“Plan” means at any
time an employee pension benefit plan (including a Multiple Employer Plan, but not a Multiemployer Plan) subject to Title IV of
ERISA or Section 412 of the Code or Section 302 of ERISA and in respect of which the Company or any ERISA Affiliate is (or
if such plan were terminated, would under 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(S)
of ERISA.

 

“Properties” is defined
in Section 5.12(a).

 

“Protective Advance”
is defined in Section 2.2(d).

 

“Quoted Rate” means
a fixed rate per annum quoted to the Company by Agent to be applicable for a period determined by Agent, in its sole discretion
in each instance.

 

 

 

 

 

 

 

    	 	Annex A-7	 

     

    

 

“Quoted Rate Option”
means the option of the Company to have Loans bear interest at the Quoted Rate.

 

“Real Property Collateral”
is defined in Section 6.3.

 

“Related Parties” is
defined in Section 10.1.

 

“Related Party” is defined
in Section 10.1.

 

“Relief Proceeding”
is defined in Section 9.1(l).

 

“Repurchase Agreement”
means an agreement between the Company or any Subsidiary and a counterparty pursuant to which the Company or any Subsidiary agrees
to repurchase from such counterparty on a future date any commodity sold by the Company or any Subsidiary to such counterparty.

 

“Revolving Term Commitment”
shall have the meaning set forth in the Revolving Term Note.

 

“Revolving Term Facility”
is defined in Section 2.1.

 

“Revolving Term Facility Expiration
Date” shall have the meaning set forth in the Revolving Term Note.

 

“Revolving Term Facility Usage”
means, as of the date of determination, the aggregate principal amount of all outstanding Revolving Term Loans.

 

“Revolving Term Loan”
is defined in Section 2.2(a).

 

“Revolving Term Note”
is defined in Section 2.2(b).

 

“Risk Management Policy”
means that certain Risk Management Policy (SOP#PEI-II-023) of the Company regarding the procurement of corn, ethanol and other
commodities and contract positions.

 

“Sanctions” is defined
in Section 5.15.

 

“Statements” is defined
in Section 5.5.

 

“Subsidiary” means a
corporation, trust, partnership, limited liability company, or other business entity (a) of which shares of stock or similar
interests having ordinary voting power to elect a majority of the board of directors, trustees, or other managers of such entity
(regardless of any contingency which does or may suspend or dilute the voting rights) are owned or controlled, directly or indirectly,
by the Company or one of its Subsidiaries, or (b) which is directly or indirectly controlled or capable of being controlled
by the Company or one or more of the Company’s Subsidiaries.

 

“Swap Obligation” shall
mean, with respect to any Company, any obligation to pay or perform under any agreement, contract or transaction that constitutes
a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act.

 

“Taxes” means all present
or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges
imposed by any Official Body, including any interest, additions to tax or penalties applicable thereto.

 

“Term Loan” is defined
in Section 2.1.

 

 

 

 

 

 

 

 

 

    	 	Annex A-8	 

     

    

 

“Term Loan Availability Expiration
Date” shall have the meaning set forth in the Term Note.

 

“Term Note” is defined
in Section 2.1(a).

 

“Title Policy” is defined
in Section 4.1(a)(viii).

 

“Unused Commitment Fees”
means the Unused Commitment Fee (as such term is defined in the Revolving Term Note).

 

“Voting Stock” means,
with respect to any corporation, partnership, limited liability company, cooperative or other entity, any Capital Stock of or in
such corporation, limited liability company, partnership, cooperative or other entity whose holders are entitled under ordinary
circumstances to vote for the election of directors (or Persons performing similar functions) of such corporation, limited liability
company, partnership, cooperative or other entity (irrespective of whether at the time Capital Stock of any other class or classes
shall have or might have voting power by reason of the happening of any contingency).

 

“Working Capital” means,
with respect to any Person as of any date of determination, the excess of current assets over current liabilities (as determined
in accordance with GAAP consistently applied). For purposes of determining the current assets, any amount available under the Revolving
Term Facility (less the amount that would be considered a current liability under GAAP if fully advanced) may be included.

 

B.       Rules
of Construction. Unless the context of this Agreement otherwise clearly requires, the following rules of construction shall
apply to this Agreement and each of the other Loan Documents: (i) references to the plural include the singular (and vice
versa), the plural, the part and the whole, and the words “include,” “includes,” and “including”
shall be deemed to be followed by the phrase “without limitation”; (ii) the words “hereof,” “herein,”
“hereunder,” “hereto,” and similar terms in this Agreement or any other Loan Document refer to this Agreement
or such other Loan Document as a whole; (iii) article, section, subsection, clause, schedule, and exhibit references are to
this Agreement or other Loan Document, as the case may be, unless otherwise specified; (iv) reference to any Person includes
such Person’s successors and assigns; (v) reference to any document, instrument, or agreement, including this Agreement
and any other Loan Document together with the schedules and exhibits hereto or thereto, means such document, instrument, or agreement
as amended, restated, replaced, refinanced, supplemented, substituted, increased, extended, superseded, or otherwise modified from
time to time; (vi) relative to the determination of any period of time, “from” means “from and including,”
“to” means “to but excluding,” and “through” means “through and including;” (vii) the
words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any
and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights; (viii) section
headings herein and in each other Loan Document are included for convenience only and shall not affect the interpretation of this
Agreement or such Loan Document; (ix) references to any Loan Document or any other document, instrument, or agreement is deemed
to include a reference to all annexes, schedules, and exhibits thereto; and (x) unless otherwise specified, all references
herein to times of day shall be references to prevailing Mountain Time.

 

C.       Accounting
Principles. Except as otherwise provided in this Agreement, all computations and determinations as to accounting or financial
matters and all financial statements to be delivered pursuant to this Agreement shall be made and prepared in accordance with GAAP
(including principles of consolidation where appropriate), and all accounting or financial terms shall have the meanings ascribed
to such terms by GAAP; provided, however, that all accounting terms used in Article 8 (and all defined terms used in the definition
of any accounting term used in such Article) shall have the meaning given to such terms (and defined terms) under GAAP as in effect
on the date hereof applied on a basis consistent with those used in preparing the Statements referred to in Article 5. In the event
of any change after the date hereof in GAAP, and if such change would affect the computation of any of the financial covenants
set forth in Article 8, then the parties hereto agree to endeavor, in good faith, to agree upon an amendment to this Agreement
that would adjust such financial covenants in a manner that would preserve the original intent thereof, but would allow compliance
therewith to be determined in accordance with the Company’s financial statements at that time, provided that, until so amended,
such financial covenants shall continue to be computed in accordance with GAAP prior to such change therein.

 

 

 

 

    	 	Annex A-9	 

     

    

 

ANNEX B

 

Real Property Collateral

 

TRACT I

 

A PART OF THE NORTHEAST QUARTER OF FRACTIONAL
SECTION 9, AND A PART OF LOTS 6 AND

 

8 IN THE SOUTHEAST QUARTER OF FRACTIONAL
SECTION 4, SAID LOTS 6 AND 8 BEING SHOWN ON PLAT RECORDED ON PAGE 57 OF PLAT BOOK "B", IN THE RECORDER'S OFFICE OF TAZEWELL
COUNTY, ILLINOIS, ALL BEING IN TOWNSHIP 24 NORTH, RANGE 5 WEST OF THE THIRD PRINCIPAL MERIDIAN, TAZEWELL COUNTY, ILLINOIS, AND
MORE PARTICULARLY DESCRIBED AS FOLLOWS:

 

COMMENCING AT THE NORTHEAST CORNER OF SAID
NORTHEAST QUARTER OF FRACTIONAL SECTION 9; THENCE SOUTH 89 DEGREES 29 MINUTES 14 SECONDS WEST, ALONG THE NORTH LINE OF SAID FRACTIONAL
SECTION 9, A DISTANCE OF 1,629.48 FEET TO THE PLACE OF BEGINNING; THENCE FROM SAID PLACE OF BEGINNING SOUTH 20 DEGREES 05 MINUTES
14 SECONDS WEST A DISTANCE OF 13.41 FEET; THENCE SOUTH 86 DEGREES 48 MINUTES 22 SECONDS EAST A DISTANCE OF 267.42 FEET; THENCE
SOUTH 00 DEGREES 56 MINUTES 03 SECONDS WEST A DISTANCE OF 159.82 FEET TO THE NORTH LINE OF THE QUAKER OATS COMPANY BY DEED RECORDED
IN BOOK 2045, PAGE 72, OF THE TAZEWELL COUNTY RECORDER'S OFFICE; THENCE SOUTH 89 DEGREES 27 MINUTES 16 SECONDS WEST ALONG SAID
NORTH LINE A DISTANCE OF 104.33 FEET; THENCE SOUTH 00 DEGREES 56 MINUTES 03 SECONDS WEST ALONG THE WEST LINE OF THE QUAKER OATS
COMPANY PROPERTY AS DESCRIBED IN AFOREMENTIONED DEED, A DISTANCE OF 253.00 FEET TO THE SOUTH LINE OF THE AMERICAN DISTILLING COMPANY
PROPERTY; THENCE SOUTH 89 DEGREES 27 MINUTES 16 SECONDS WEST ALONG THE SOUTH LINE OF THE AMERICAN DISTILLING PROPERTY, A DISTANCE
OF 850.76 FEET TO THE SOUTHEAST CORNER OF A PARCEL CONVEYED BY THE AMERICAN DISTILLING COMPANY TO PEKIN RIVER AND WAREHOUSE TERMINAL,
INC. BY DEED RECORDED IN BOOK 2351, PAGE 208, OF THE TAZEWELL COUNTY RECORDER'S OFFICE; THENCE NORTH 25 DEGREES 40 MINUTES 22 SECONDS
WEST ALONG EASTERLY LINE OF SAID PARCEL, A DISTANCE OF 371.70 FEET, THENCE NORTH 00 DEGREES 02 MINUTES 54 SECONDS WEST ALONG EASTERLY
LINE OF SAID PARCEL, A DISTANCE OF 106.63 FEET TO THE SOUTH LINE OF SAID FRACTIONAL SECTION 9; THENCE CONTINUING NORTH 00 DEGREES
02 MINUTES 54 SECONDS ALONG EASTERLY LINE OF SAID PARCEL 77.64 FEET TO THE NORTHERLY CORNER OF PEKIN RIVER AND WAREHOUSE TERMINAL
INC. PROPERTY, AND ALSO BEING A POINT ON THE NORTHWESTERLY LINE OF LOT 8 AS RECORDED IN PLAT BOOK "B", PAGE 57, OF THE
TAZEWELL COUNTY RECORDER'S OFFICE; THENCE NORTH 46 DEGREES 59 MINUTES 11 SECONDS EAST ALONG THE NORTHWESTERLY LINE, OF SAID LOT
8 A DISTANCE OF 1,110.92 FEET; THENCE SOUTH 43 DEGREES 00 MINUTES 54 SECONDS EAST A DISTANCE OF 280.47 FEET; THENCE SOUTH 42 DEGREES
00 MINUTES 08 SECONDS WEST, A DISTANCE OF 188.94 FEET; THENCE SOUTH 19 DEGREES 51 MINUTES 12 SECONDS WEST, A DISTANCE OF 276.07
FEET; THENCE SOUTH 69 DEGREES 54 MINUTES 46 SECONDS EAST, A DISTANCE OF 148.90 FEET; THENCE SOUTH 20 DEGREES 05 MINUTES 14 SECONDS
WEST, A DISTANCE OF 182.59 FEET TO THE PLACE OF BEGINNING; SITUATE, LYING AND BEING IN THE COUNTY OF TAZEWELL AND STATE OF ILLINOIS.

 

 

 

 

 

 

 

    	 	Annex B-1	 

     

    

 

TRACT II:

 

A PART OF THE NORTHEAST QUARTER OF FRACTIONAL
SECTION 9, AND A PART OF LOTS 6 AND 8 IN THE SOUTHEAST QUARTER OF FRACTIONAL SECTION 4, SAID LOTS 6 AND 8 BEING SHOWN ON PLAT RECORDED
IN PAGE 57 OF PLAT BOOK "B" IN THE RECORDER'S OFFICE OF TAZEWELL COUNTY, ILLINOIS, ALL BEING IN TOWNSHIP 24 NORTH, RANGE
5 WEST OF THE THIRD PRINCIPAL MERIDIAN, TAZEWELL COUNTY, ILLINOIS AND MORE PARTICULARLY DESCRIBED AS FOLLOWS:

 

COMMENCING AT THE SOUTHEAST CORNER OF THE
SOUTHEAST QUARTER OF SAID FRACTIONAL SECTION 4; THENCE SOUTH 89 DEGREES 29 MINUTES 14 SECONDS WEST, ALONG THE SOUTH LINE OF THE
SOUTHEAST QUARTER OF SAID FRACTIONAL SECTION 4, A DISTANCE OF 1,020.92 FEET TO A CONCRETE MONUMENT BEING THE PLACE OF BEGINNING
FOR THE TRACT HEREIN BEING DESCRIBED; THENCE NORTH 37 DEGREES 03 MINUTES 04 SECONDS EAST A DISTANCE OF 1013.11 FEET; THENCE NORTH
57 DEGREES 55 MINUTES WEST A DISTANCE OF 292.65 FEET TO THE NORTHWESTERLY RIGHT-OF-WAY LINE OF SOUTH FRONT STREET; THENCE NORTH
29 DEGREES 56 MINUTES 48 SECONDS EAST, ALONG THE NORTHEASTERLY RIGHT-OF-WAY LINE OF SOUTH FRONT STREET, A DISTANCE OF 481.39 FEET
TO A CONCRETE MONUMENT; THENCE NORTH 46 DEGREES 54 MINUTES 36 SECONDS WEST A DISTANCE OF 263.31 FEET TO A POINT ON THE NORTHEASTERLY
LINE OF LOT 6 AS RECORDED IN PLAT BOOK "B", PAGE 57, OF THE TAZEWELL COUNTY RECORDER'S OFFICE; THENCE NORTH 24 DEGREES
46 MINUTES 48 SECONDS WEST, ALONG THE NORTHEASTERLY LINE OF SAID LOT 6 A DISTANCE OF 35.6 FEET; THENCE NORTH 87 DEGREES 04 MINUTES
48 SECONDS WEST A DISTANCE OF 214.55 FEET TO A POINT ON THE NORTHWESTERLY LINE OF SAID LOT 6; SAID POINT BEING 200 FEET FROM THE
NORTHERLY CORNER OF SAID LOT 6; THENCE SOUTH 46 DEGREES 59 MINUTES 11 SECONDS WEST, ALONG THE NORTHWESTERLY LINE OF SAID LOT 6
AND LOT 8 AS RECORDED IN PLAT BOOK "B", PAGE 57 OF THE TAZEWELL COUNTY RECORDER'S OFFICE, A DISTANCE OF 1,146.23 FEET
TO THE NORTHERLY CORNER OF TRACT I PREVIOUSLY DESCRIBED; THENCE SOUTH 43 DEGREES 00 MINUTES 54 SECONDS EAST, ALONG SAID TRACT I,
A DISTANCE OF 280.47 FEET; THENCE SOUTH 42 DEGREES 00 MINUTES 08 SECONDS WEST, A DISTANCE OF 188.94 FEET; THENCE SOUTH 19 DEGREES
51 MINUTES 12 SECONDS WEST, ALONG SAID TRACT I, A DISTANCE OF 276.07 FEET; THENCE SOUTH 69 DEGREES 54 MINUTES 46 SECONDS EAST,
ALONG SAID TRACT I, A DISTANCE OF 148.90 FEET; THENCE SOUTH 20 DEGREES 05 MINUTES 14 SECONDS WEST, ALONG SAID TRACT I, A DISTANCE
OF 196.00 FEET; THENCE SOUTH 86 DEGREES 48 MINUTES 22 SECONDS EAST, ALONG SAID TRACT I, A DISTANCE OF 267.42 FEET; THENCE SOUTH
00 DEGREES 56 MINUTES 03 SECONDS WEST, ALONG SAID TRACT I, A DISTANCE OF 159.82 FEET TO THE PROPERTY LINE OF QUAKER OATS COMPANY;
THENCE NORTH 89 DEGREES 27 MINUTES 16 SECONDS EAST, ALONG SAID PROPERTY LINE A DISTANCE OF 345.67 FEET; THENCE NORTH 00 DEGREES
56 MINUTES 03 SECONDS EAST, ALONG SAID PROPERTY LINE, A DISTANCE OF 189.47 FEET TO THE PLACE OF BEGINNING, SITUATE, LYING AND BEING
IN THE COUNTY OF TAZEWELL AND STATE OF ILLINOIS.

 

 

 

 

 

 

    	 	Annex B-2	 

     

    

 

SCHEDULE 5.2

 

Subsidiaries

 

This is Schedule 5.2 to that certain Credit
Agreement dated as of September 15, 2017 by and between Illinois Corn Processing, LLC, Compeer Financial, PCA and CoBank, ACB (as
amended, restated, modified or supplemented from time to time, the “Credit Agreement”). Capitalized terms defined
in the Credit Agreement and not defined in this Schedule 5.2 shall have the respective meanings ascribed to them by the Credit
Agreement.

 

	Legal Name of the Company	Jurisdiction of organization and type of entity 

[for example, Delaware limited liability company, Colorado corporation, etc.]
	   Illinois Corn Processing, LLC	   Delaware limited liability company

 

 

 

	Legal Name of Subsidiary	Is the Subsidiary a Guarantor?

[Yes or No]	Jurisdiction of organization and type of entity
	 	 	 

 

 

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

 

SCHEDULE 6.12(b)

 

Collateral Assignments of Material Agreements

 

 

Corn Procurement and Supply Agreement between
the Company and Pacific Ag. Products, LLC dated July 3, 2017

 

Co-Product Marketing Agreement between
the Company and Pacific Ag. Products, LLC dated July 3, 2017

 

Alcohol Product Marketing Agreement between
the Company and Kinergy Marketing LLC dated July 3, 2017

 

Affiliated Company Agreement between Pacific
Ethanol, Inc. and the Subsidiaries from time to time party thereto, including the Company, dated July 1, 2015, as amended by Amendment
No. 1 to Affiliated Company Agreement dated January 1, 2017 and Amendment No. 2 to Affiliated Company Agreement dated July 3, 2017.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

 

EXHIBIT A

 

Form of Term Note

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

 

EXHIBIT B

 

Form of Revolving Term Note

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

 

EXHIBIT C

 

Form of Compliance Certificate

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