Document:

paceth_8k-ex1006.htm

    

    Exhibit 10.6

     

    SERIES
A PREFERRED STOCKHOLDER

    CONSENT
AND WAIVER

     

    THIS
SERIES A PREFERRED STOCKHOLDER CONSENT AND WAIVER (the “Consent and Waiver”) is
entered into as of March 27, 2008 (the “Effective Date”) by and
between Pacific Ethanol, Inc., a
Delaware corporation (the “Company”), and Cascade Investment, L.L.C., a
Washington limited liability company (the “Cascade”). Reference is hereby made to
the Company’s Certificate of Designations, Powers, Preferences and Rights of the
Series A Cumulative Redeemable Convertible Preferred Stock (the “Series A Certificate of
Designations”) with respect to the Company’s Series A Cumulative
Redeemable Convertible Preferred Stock, $.001 par value per share (the “Series A Preferred Stock”), a
copy of which is attached hereto as Exhibit A. All
capitalized terms used but not defined herein shall have the meanings set forth
in the Series A Certificate of Designations.

     

    R E C I T A L
S

     

    A.           Pursuant
to that certain Securities Purchase Agreement dated March 18, 2008 (the “Securities Purchase
Agreement”) by and between the Company and Lyles United, LLC, a Delaware
limited liability company (“Lyles United”), a copy of
which is attached hereto as Exhibit B, the
Company proposes to sell and issue to Lyles United the following: (i) 2,051,282 shares
(the “Preferred Shares”)
of the Company’s Series B Cumulative Convertible Preferred
Stock, par value $.001 per share (the “Series B Preferred Stock”),
and (ii) a warrant to be dated March 27, 2008 (the “Preferred Warrant”) to
acquire up to 3,076,923 shares
(the “Preferred Warrant
Shares”) of the Company’s common stock, $0.001 par value per share (“Common Stock”), for the
aggregate purchase price of $40,000,000.

     

    B.           Pursuant
to that certain Secured Promissory Note dated November 28, 2007 by and between
Pacific Ethanol Imperial, LLC, a Delaware limited liability company, and Lyles
United, the Company proposes to issue to Lyles United a warrant (the “Note Warrant”) to acquire
100,000 shares of Common Stock (the “Note Warrant Shares”), a copy
of which Note Warrant is attached hereto as Exhibit
C.  The Preferred Shares, Preferred Warrant, Preferred Warrant
Shares, Note Warrant, and the Note Warrant Shares are collectively referred to
herein as the “Offered
Securities”.

     

    C.           Pursuant
to that certain Registration Rights Agreement dated March 27, 2008 by and
between the Company and Lyles United (the “Lyles United Registration Rights
Agreement”), a copy of which is attached hereto as Exhibit D, the
Company proposes to provide to Lyles United certain registration and other
rights with respect to the Registrable Securities (as that term is defined in
the Lyles United Registration Rights Agreement).

     

    D.           Pursuant
to Section 9 of the Series A Certificate of Designations, Cascade, as holder of
all of the issued and outstanding shares of Series A Preferred Stock, is
afforded certain preemptive rights (the “Preemptive Rights”) with
respect to the offer and sale by the Company of certain securities of the
Company, including the Offered Securities.

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

     

    E.           Pursuant
to Section 7 of the Series A Certificate of Designations, Cascade is afforded
certain consent and approval rights with respect to certain actions that may be
undertaken by the Company including (i) authorizing, creating, issuing or
selling any securities ranking as to dividend rights and liquidation
preferences, among other rights, on parity with the Series A Preferred Stock,
(ii) altering, amending, repealing, substituting or waiving provisions of the
Charter to provide for the creation of the Series B Preferred Stock, and (iii)
authorizing or engaging in, or permitting any subsidiary to authorize or engage
in, a transaction with any entity or person that is affiliated with a current or
former director, officer or member of the Company or any of its subsidiaries
(collectively, the “Protected
Actions”).

     

    F.           The
Company has engaged in certain transactions with affiliates of former directors
of the Company and/or its subsidiaries, as more particularly described on Exhibit E attached
hereto (collectively, the “Prior Transactions”), which
Prior Transactions consisted of certain actions that are Protected Actions and
which required the consent of Cascade.

     

    G.           The
Company proposes to take certain current actions in connection with the
transactions contemplated by the Securities Purchase Agreement and the issuance
by the Company of the Note Warrant to Lyles United, which consist of the
creation of the Series B Preferred Stock pursuant to the terms and conditions of
the Series B Certificate of Designations, as well as any of the Prior
Transactions that are currently continuing (collectively, the “Current Transactions”), and
which are Protected Actions that require the consent of Cascade.

     

    H.           The
Company anticipates that it will engage in certain future transactions with
affiliates of former directors of the Company and/or its subsidiaries, as more
particularly described on Exhibit F attached
hereto (collectively, the “Future Transactions”), which
Future Transactions are expected to consist of certain actions that are
Protected Actions requiring the consent of Cascade.

     

    I.           Pursuant
to Section 13(k) of that certain Registration Rights and Stockholders Agreement
dated as of April 13, 2006 (the “Cascade Registration Rights
Agreement”) between the Company and Cascade, a copy of which is attached
hereto as Exhibit
G, the Company shall not, except with the prior written consent of
Cascade, enter into any agreement with respect to its securities that shall
grant to any person registration rights that in any way conflict with or are
prior to or equal in right to the rights provided under the Cascade Registration
Rights Agreement.  Certain of the rights provided to Lyles United
under the Lyles United Registration Rights Agreement are equal in right to
rights provided to Cascade under the Cascade Registration Rights
Agreement.

     

    J.           In
connection with the transactions contemplated by the Securities Purchase
Agreement, (i) the Company proposes to waive the rights held by the Company to
pay dividends on the Series B Preferred Stock in shares of the Series B
Preferred Stock as set forth in the Series B Certificate of Designations (as
defined below) in favor of Lyles United, in its capacity as the sole holder of
all of the Company’s outstanding shares of Series B Preferred Stock, (ii) the
Company desires to waive the rights held by the Company to pay dividends on the
Series A Preferred Stock in shares of the Series A Preferred Stock as set forth
in the Series A Certificate of Designations in favor of Cascade, in its capacity
as the sole holder of all of the Company’s outstanding shares of Series A Preferred Stock and (iii) the Company
and Cascade desire to waive the adjustment of the conversion price of the Series
A Preferred Stock set forth in Section 5(d) of the Series A Certificate of
Designations, but only with respect to the sale and issuance of the Offered
Securities (and any shares of Common Stock issuable upon the conversion of the
Series B Preferred Stock and any shares of Series B Preferred Stock payable as a
dividend on the Series B Preferred Stock) to Lyles United pursuant to the terms
of the Securities Purchase Agreement and the Note Warrant.

    

    
      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

    

    

     

    

     

    K.           Cascade
agrees to (i) waive its Preemptive Rights with respect to the Offered
Securities, (ii) consent to the Protected Actions that the Company has taken in
connection with the Prior Transactions, (iii) consent to the Protected Actions
that the Company proposes to take in connection with the Current Transactions,
(iv) consent to the Protected Actions that the Company proposes to take in
connection with the Future Transactions, and (v) consent to the Company entering
into the Lyles United Registration Rights Agreement.

     

    L.           The
Company desires to (i) confirm to Cascade its intention to file a registration
statement on Form S-3MEF with the Securities and Exchange Commission covering
shares of Common Stock issuable upon conversion of the shares of Series A
Preferred Stock issued to Cascade as a dividend payment in kind for dividends
accrued on the Series A Preferred Stock for the quarter ended December 31, 2007
(the “Underlying Dividend
Shares”) by no later than the date on which the Company files its Form
10-K for the year ended December 31, 2007 with the Securities and Exchange
Commission, (ii) confirm to Cascade that no Redemption Event, as defined in the
Series A Preferred Stock Certificate of Designations has occurred, and (iii)
waive the rights held by the Company to pay dividends on the Series A Preferred
Stock in shares of Series A Preferred Stock.

     

    NOW THEREFORE, in consideration of the foregoing
recitals, the mutual covenants and agreements set forth in this Consent and
Waiver, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

     

    1.           Waiver of
Preemptive Rights.  Cascade hereby waives its Preemptive Rights
as to any and all of the Offered Securities, and hereby further waives any
notice period and any information delivery requirements set forth in
Section 9(a) of the Series A Certificate of Designations with respect to
such Preemptive Rights and the Offered Securities.  Cascade hereby
acknowledges that, upon the execution of this Consent and Waiver, the Company
shall have no further notice or information delivery requirements with respect
to Cascade’s Preemptive Rights as they relate to the Offered Securities (and any shares of Common Stock issuable
upon the conversion of the Series B Preferred Stock and any shares of Series B
Preferred Stock payable as a dividend on the Series B Preferred
Stock).

     

    2.           Consent
to Issuance of Series B Preferred Stock.  Cascade hereby
consents to the authorization, creation, issuance and sale of a class of
securities to be designated Series B Preferred Stock pursuant to the terms
and conditions contained in that certain Certificate of Designations, Powers,
Preferences and Rights of the Series B Cumulative Convertible Preferred Stock
(the “Series B Certificate
of Designations”), a copy
of which is attached hereto as Exhibit
H.  Cascade
acknowledges that the Series B Preferred Stock shall be pari
passu with the Series A
Preferred Stock with respect to dividend and liquidation
rights.

    

    
      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

    

    

     

    3.           Waiver
of Conversion Price Adjustment.  Each of Cascade and the Company hereby
waives the conversion price adjustment of the Series A Preferred Stock set forth
in Section 5(d) of the Series A Certificate of Designations, but only with
respect to the sale and issuance of the Offered Securities (and any shares of Common Stock issuable
upon the conversion of the Series B Preferred Stock and any shares of Series B
Preferred Stock payable as a dividend on the Series B Preferred Stock)
to Lyles United pursuant to
the terms of the Securities Purchase Agreement and the Note
Warrant.

     

    4.           Consent
to Lyles United Registration Rights Agreement.  Cascade hereby
consents to the Company entering into the Lyles United Registration Rights
Agreement.

     

    5.           Consent
to Protected Actions.  Cascade hereby consents to:

     

    (a)           the
Prior Transactions;

     

    (b)           the
Current Transactions; and

     

    (c)           the
Future Transactions.

     

    6.           Agreement
to File Registration Statement.  The Company hereby agrees to
file with the Securities and Exchange Commission a registration statement on
Form S-3MEF covering the Underlying Dividend Shares by no later than the date on
which the Company files its Form 10-K for the year ended December 31, 2007 with
the Securities and Exchange Commission, and further covenants that with respect
to any subsequent request by Cascade for registration of Registrable Securities
(as defined in the Cascade Registration Rights Agreement), the Company shall
file such Registration Statement (as defined in the Cascade Registration Rights
Agreement) with the Securities and Exchange Commission within thirty (30) days
of receipt of such request.

     

    7.           Redemption
Rights.  The Company hereby acknowledges and confirms to
Cascade that, as of the Effective Date, no Redemption Event has occurred
pursuant to the terms of the Series A Certificate of Designations.

     

    8.           Waiver of
Series A PIK Right.  The Company hereby expressly waives its
rights under Section 3(a) of the Series A Certificate of Designations to pay any
dividends due and payable to Cascade as a holder of Series A Preferred Stock in
shares of the Series A Preferred Stock (the “Series A PIK
Right”).  The
Company hereby covenants that it shall not, without the prior written consent of
Cascade, exercise or attempt to exercise the Series A PIK Right provided for in
Section 3(a) of the Series A Certificate of Designations at any time following
the date of this Consent and Waiver.  The Company further confirms and
covenants that the dividends payable to Cascade on March 31, 2008 shall be paid
in cash.

     

    9.           Miscellaneous.

     

    (a)           Entire
Agreement.  This
Consent and Waiver constitutes the entire agreement between the parties with
respect to the subject matter hereof and supersedes any prior understandings,
agreements or representations by or between the parties, written or oral, to the
extent they relate in any way to the subject matter hereof.

    

    
      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

    

    

     

    (b)           Amendments
and Waivers; Severability.  This Consent and Waiver may not be
amended or modified, and no provisions hereof may be waived, without the written
consent of the Company and Cascade.  No action taken pursuant to this
Consent and Waiver shall be deemed to constitute a waiver by the party taking
such action of compliance with any representation, warranty, covenant or
agreement contained herein.  The waiver by any party hereto of a
breach of any provision of this Consent and Waiver shall not operate or be
construed as a further or continuing waiver of such breach or as a waiver of any
other or subsequent breach.  No failure on the part of any party to
exercise, and no delay in exercising, any right, power or remedy hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of such
right, power or remedy by such party preclude any other or further exercise
thereof or the exercise of any other right, power or remedy.  All
remedies hereunder are cumulative and are not exclusive of any other remedies
provided by law.

     

    (c)           Governing
Law.  This Consent and Waiver shall be
governed by, and construed, interpreted and enforced in accordance with, the
laws of the State of Washington, without giving effect to the principles of
conflicts of laws thereunder which would specify the application of the law of
another jurisdiction.

     

    (d)           Counterparts.  This Consent and Waiver may
be executed, including by facsimile signature, in one or more counterparts, each
of which shall be deemed an original but all of which together will constitute
one and the same instrument.

     

    

     

    [signature page
follows]

    

    
      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

    

    

     

    IN
WITNESS WHEREOF, the undersigned has executed this Consent and Waiver as of
March 27, 2008.

    

    
      	 
      	
              CASCADE
      INVESTMENT, L.L.C.

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
              By:     /s/ MICHAEL
      LARSEN

            
	 
      	
              Name:     Michael Larsen

            
	 
      	
              Title:      Business
      Manager

            
	 
      	 
      
	 
      	 
      
	 
      	
              PACIFIC
      ETHANOL, INC.

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
              By:     /s/ NEIL M.
      KOEHLER

            
	 
      	
              Name:     Neil M. Koehler

            
	 
      	
              Title:
           CEO

            

    

    

    

    
      
        
           

        

        
          -6-

          
            

          

        

        
           

        

      

    

    

     

    EXHIBIT
A

     

    SERIES
A CERTIFICATE OF DESIGNATIONS

     

     

     

     

     

     

     

     

     

     

     

    
 

    

    
      
        
           

        

        
          -7-

          
            

          

        

        
           

        

      

    

    

     

    

     

    EXHIBIT
B

     

    SECURITIES
PURCHASE AGREEMENT

    

     

    

     

     

     

     

     

     

     

     

     

     

     

    

    
      
        
           

        

        
          -8-

          
            

          

        

        
           

        

      

    

    

     

    

     

    EXHIBIT
C

     

    NOTE
WARRANT

    

     

     

     

     

     

     

     

     

     

     

     

    
 

    

    
      
        
           

        

        
          -9-

          
            

          

        

        
           

        

      

    

    

     

    

     

    EXHIBIT
D

     

    LYLES
UNITED REGISTRATION RIGHTS AGREEMENT

     

     

     

     

     

     

     

     

     

     

    
 

    

    
      
        
           

        

        
          -10-

          
            

          

        

        
           

        

      

    

    

     

    

     

    EXHIBIT
E

     

    PRIOR
TRANSACTIONS

    

     

    William
M. Lyles IV is an officer and director of Lyles United LLC, a Delaware limited
liability company (“Lyles
United”), W.M. Lyles Co., a California corporation (“W.M. Lyles”) and Lyles
Mechanical Co., a California corporation (“Lyles Mechanical”), and is a
former member of the Board of Directors of the Company’s wholly-owned
subsidiary, Pacific Ethanol California, Inc., a California corporation (“PECA”).  The
Company or a subsidiary of the Company entered into the following transactions
with Lyles United, W.M Lyles and Lyles Mechanical:

     

    
      	
              1.

            	
              Prior
      to the adoption of the Series A Certificate of Designations, Pacific
      Ethanol Madera, LLC (“PEM”), and W.M Lyles
      entered into that certain Design-Build Agreement dated July 7, 2003 (the
      “Agreement”),
      pursuant to which W.M Lyles constructed the Madera ethanol
      plant.  PEM and W.M Lyles subsequently adopted several
      amendments of the Agreement and a final settlement of all issues under the
      Agreement.  A number of such amendments and the final settlement
      were approved subsequent to the adoption of the Series A Certificate of
      Designations and involved sums exceeding
  $100,000.

            

    

     

    
      	
              2.

            	
              Pacific
      Ethanol Stockton, LLC (“PES”) and W.M. Lyles
      entered into the certain Construction Agreement for the Stockton Project
      dated September 14, 2007 (the “Stockton Agreement”),
      pursuant to which W.M. Lyles agreed to perform construction services
      related to the construction of Stockton ethanol plant.  PES and
      W.M. Lyles subsequently entered into that certain Assignment and Agreement
      dated December 21, 2007, pursuant to which the obligations of W.M. Lyles
      under the Stockton Agreement were assumed by Lyles
      Mechanical.  PES and Lyles Mechanical subsequently adopted
      several change orders to the Stockton
Agreement.

            

    

     

    
      	
              3.

            	
              The
      Company, Pacific Ethanol Imperial, LLC (“PE Imperial”), and
      Lyles United entered into two loan transactions involving a total
      principal amount of $30 million, represented by the following instruments
      (the “Loan
      Instruments”):

            

    

     

    
      	
               
      

            	
              a.

            	
              Secured
      Promissory Note dated as of November 28, 2007 (as amended on December 27,
      2007), including the attached Form of
Warrant;

            

    

     

    
      	
               
      

            	
              b.

            	
              Security
      Agreement dated as of November 28, 2007 (as amended on December 27,
      2007);

            

    

     

    
      	
               
      

            	
              c.

            	
              Unconditional
      Guaranty dated as of November 28,
2007;

            

    

     

    
      	
               
      

            	
              d.

            	
              Letter
      Agreement dated as of November 28, 2007, pertaining to the construction of
      the Imperial ethanol plant;

            

    

     

     

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

     

    
      	
               
      

            	
              e.

            	
              Secured
      Promissory Note dated as of December 27, 2007;
  and

            

    

     

    
      	
               
      

            	
              f.

            	
              Unconditional
      Guaranty dated as of December 27,
2007.

            

    

     

    Matters pertaining to
Southern Counties Oil Co.:

     

    Frank
Greinke is an officer, director and owner of Southern Counties Oil Co. (“SCOC”)
and is a former member of the Board of Directors of the Company and
PECA.  SCOC is a customer of the Company’s subsidiary, Kinergy
Marketing, LLC (“Kinergy”), and since prior to the adoption of the Series A
Certificate of Designations and to the present time, Kinergy has from time to
time sold ethanol to SCOC at prevailing market prices.

     

     

     

     

     

     

    
 

    

    
      
        
           

        

        
          -12-

          
            

          

        

        
           

        

      

    

    

     

    EXHIBIT
F

     

    FUTURE
TRANSACTIONS

     

    

     

    Matters pertaining to Lyles
United and its affiliates:

     

    
      	
              1.

            	
              PES
      and Lyles Mechanical may adopt amendments and change orders to the
      Stockton Agreement.

            

    

     

    
      	
              2.

            	
              The
      Company, PE Imperial, and Lyles United may extend any or all of the Loan
      Instruments.

            

    

     

    
      	
              3.

            	
              Pursuant
      to the Letter Agreement dated as of November 28, 2007 by and between PE
      Imperial and Lyles United, if PE Imperial proceeds with the construction
      of the Imperial ethanol plan, it will award the primary construction and
      mechanical contract for this project to Lyles United or an affiliate of
      Lyles United.

            

    

     

    Matters pertaining to
Southern Counties Oil Co.:

     

    Kinergy
will from time to time sell ethanol to SCOC at prevailing market prices on
arms-length terms that are no more favorable to SCOC than would be available in
an arms-length transaction.

     

    

     

    

    

    
      
        
           

        

        
          -13-

          
            

          

        

        
           

        

      

    

    

     

    

     

    EXHIBIT
G

     

    CASCADE
REGISTRATION RIGHTS AGREEMENT

    

     

     

     

     

     

     

     

     

     

     

     

    
 

    

    
      
        
           

        

        
          -14-

          
            

          

        

        
           

        

      

    

    

     

    

     

    EXHIBIT
H

     

    SERIES
B CERTIFICATE OF DESIGNATIONS

     

     

     

     

     

     

     

     

     

    -15-paceth_8k-ex1007.htm

     

    Exhibi 10.7

    
 

    WAIVER AND THIRD AMENDMENT
TO CREDIT AGREEMENT

    
 

     

    This
WAIVER AND THIRD AMENDMENT TO CREDIT AGREEMENT (this "Agreement"), dated as
of March 25, 2008, by and among Amarillo National Bank, as the Accounts Bank
(the "Accounts
Bank"), WestLB AG, New York Branch, as Administrative Agent (the "Administrative
Agent"), WestLB AG, New York Branch, as Collateral Agent (the "Collateral Agent"),
Pacific Ethanol Holding Co. LLC, a Delaware limited liability company ("Pacific Holding"),
Pacific Ethanol Madera LLC, a Delaware limited liability company ("Madera"), Pacific
Ethanol Columbia, LLC, a Delaware limited liability company ("Boardman"), Pacific
Ethanol Stockton, LLC, a Delaware limited liability company ("Stockton"), and
Pacific Ethanol Magic Valley, LLC, a Delaware limited liability company ("Burley" and, together
with Pacific Holding, Madera, Boardman and Stockton, the "Borrowers"), Pacific
Ethanol, Inc., a Delaware corporation (the "Sponsor"), Pacific
Holding, as the Borrowers' Agent (the "Borrowers' Agent"),
and the Lenders party hereto.

     

    PREAMBLE

     

     

    WHEREAS, the Borrowers, the
Borrowers' Agent, each of the Lenders from time to time party thereto, the
Administrative Agent, the Collateral Agent, the Accounts Bank, WestLB AG, New
York Branch, as lead arranger and sole bookrunner, Mizuho Corporate Bank, Ltd.,
as lead arranger and co-syndication agent, CIT Capital Securities LLC, as lead
arranger and co-syndication agent, Coöperatieve Centrale
Raiffeisen-Boerenleenbank B.A., "Rabobank Nederland", New York Branch, as lead
arranger and co-documentation agent, and Banco Santander Central Hispano S.A,
New York Branch, as lead arranger and co-documentation agent have entered into
that certain Credit Agreement, dated as of February 27, 2007 (as amended,
amended and restated, restated, supplemented or otherwise modified from time to
time, the "Credit
Agreement");

     

    WHEREAS, Pacific Ethanol,
Inc., a Delaware corporation ("Sponsor"), Pacific
Holding and the Administrative Agent have entered into that certain Sponsor
Support Agreement, dated as of February 27, 2007 (as amended, the "Sponsor Support
Agreement");

     

    WHEREAS, the Sponsor has
provided to the Administrative Agent and the Lenders that certain Request for
Waiver letter dated March 16, 2008 (as supplemented by the Sponsor's updated
letter dated March 20, 2008, and attached hereto as Exhibit A, the "Request Letter")
requesting certain waivers under and amendments to the Credit Agreement and the
Sponsor Support Agreement; and

     

    WHEREAS, the parties hereto
desire to amend the Credit Agreement, and agree to certain waivers and
covenants, each on the terms and conditions set forth herein;

     

    NOW, THEREFORE, in
consideration of the mutual benefits to be derived and the representations and
warranties, conditions and promises herein contained, and intending to be
legally bound hereby, the parties hereby agree as follows:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              1.

            	
              DEFINITIONS
      AND INTERPRETATION

            

    

     

    Unless
otherwise expressly set forth herein, capitalized terms used in this Agreement
shall have the meaning set forth in the Credit Agreement and the principles of
interpretation set forth in Section 1.02 of the
Credit Agreement shall apply to this Agreement.

     

    
      	
              2.

            	
              WAIVERS

            

    

     

    
      	
               
      

            	
              2.1

            	
              Cash
      Management Weakness

            

    

     

    
      	
               
      

            	
              2.1.1

            	
              Subject
      to the conditions set forth in Section 4 of
      this Agreement, the Lenders hereby waive any Defaults or Events of Default
      that may have occurred as a result of or in connection with (a) the
      inaccuracy of any representations and warranties made or deemed repeated
      under Sections
      5.07 (No
      Material Adverse Effect), 5.12 (Collateral),
      5.13(e)
      (Ownership
      of Properties), 5.18 (No
      Defaults), 5.21 (Accuracy
      of Information), 5.23 (Separateness),
      and 5.32
      (Accounts),
      and 7.01(g)
      (Use
      of Proceeds and Cash Flow) of the Credit
      Agreement, (b) the Borrowers' failure to comply with the requirements of
      Sections
      7.01(c)(i) (Operations
      and Maintenance), 7.01(e) (Payment
      of Obligations), 7.01(g) (Use
      of Proceeds and Cash Flow), 7.01(n) (Maintenance
      of Liens; Creation of Liens on Newly Acquired Property), 7.01(p) (Separateness),
      7.02(b)(vi)
      (Liens), 7.02(i) (Accounts),
      7.02(q) -
      (Use
      of Proceeds; Margin Regulations), 7.02(s) (Restricted
      Payments), 7.03 (Reporting
      Requirements), 8.02(a) (Deposits
      into and Withdrawals from Project Accounts) and 8.08 (Revenue
      Account) of the Credit Agreement and/or (c) the Borrowers' and the
      Sponsor's failure to comply with any other provisions of any of the
      Financing Documents that may have been breached, defaulted or violated, in
      each case only as a result of the Cash Management Weakness (as defined in
      the Request Letter).

            

    

     

    
      	
               
      

            	
              2.2

            	
              DSR
      Shortfall

            

    

     

    
      	
               
      

            	
              2.2.1

            	
              Subject
      to the conditions set forth in Section 4 of
      this Agreement, the Lenders hereby waive any Defaults or Events of Default
      that may have occurred as a result of or in connection with (a) the
      inaccuracy of any representations and warranties made or deemed repeated
      under Sections
      5.18 (No
      Defaults) and 7.01(g) (Use
      of Proceeds and Cash Flow) of the Credit
      Agreement, (b) the Borrowers' failure to comply with the requirements of
      Sections 8.12
      (Debt
      Service Reserve Account), 7.01(g) (Use
      of Proceeds and Cash Flow) and 7.03 (Reporting
      Requirements) of the Credit
      Agreement, and/or (c) the Borrowers' failure to comply with any other
      provisions of any of the Financing Documents that may have been breached,
      defaulted or violated, in each case only as a result of the DSR Shortfall
      (as defined in the Request Letter).

            

    

     

    
      	
               
      

            	
              2.3

            	
              Accounting
      Weakness

            

    

     

    
      	
               
      

            	
              2.3.1

            	
              Subject
      to the conditions set forth in Section 4 of
      this Agreement and solely with respect to the Accounting Weakness (as
      defined in the Request Letter and which shall be deemed to include any
      "material weaknesses" that may have occurred as a result of or in
      connection with the Cash Management Weakness), the Lenders hereby (i)
      waive the requirement that the Sponsor comply with Section 5.05(c)
      of the Sponsor Support Agreement with respect only to the
      Accounting Weakness and (ii) waive any Default or Event of Default
      that has occurred or might occur under the Credit Agreement or any other
      Financing Document as a result of the Sponsor's failure to comply with
      Section 5.05(c)
      of the Sponsor Support Agreement as a result solely of the Accounting
      Weakness.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              2.4

            	
              Eurodollar
      Loans

            

    

     

    
      	
               
      

            	
              2.4.1

            	
              With
      respect to the requirement in Section 3.05(e) -
      (Interest
      Rates) of the Credit
      Agreement that the Borrowers may not have more than seven (7) separate
      Eurodollar Loans at any time prior to the Conversion Date, the Lenders
      hereby waive any Default or Event of Default that may have occurred as a
      result of the Borrowers having more than seven (7) separate Eurodollar
      Loans outstanding.

            

    

     

    
      	
               
      

            	
              2.5

            	
              Final
      Completion

            

    

     

    
      	
               
      

            	
              2.5.1

            	
              Subject
      to the terms of the amendment in Section 3.3 of this Agreement, with
      respect to the requirement in Section 7.01(y) -
      (Affirmative
      Covenants - Final Completion) of the Credit
      Agreement that the Borrowers shall cause Final Completion for the Boardman
      Plant and the Madera Plant to occur on or before the date that is one
      hundred twenty (120) days after such Plant has achieved its
      Commercial Operation Date, the Lenders hereby waive such requirement and
      any Default or Event of Default resulting from the failure of Final
      Completion to have occurred for such Plants within such time
      period.

            

    

     

    
      	
              3.

            	
              AMENDMENTS

            

    

     

    
      	
               
      

            	
              3.1

            	
              Waterfall

            

    

     

    
      	
               
      

            	
              3.1.1

            	
              Section 8.08(b)(i)
      (Revenue
      Account) of the Credit
      Agreement is hereby deleted and replaced with the
    following:

            

    

     

    
      	
               
      

            	
              "(i)

            	
              first:

            

    

     

    
      	
               
      

            	
              (a)

            	
              on
      each Monthly Date, (A) to Pacific Ethanol as payment of any Sponsor
      Support Reimbursements then due and owing in accordance with the Sponsor
      Support Agreement and (B) to the Operating Account, the amount certified
      by the Borrowers' Agent in such Revenue Account Withdrawal Certificate as
      required to pay Operation and Maintenance Expenses (other than Operation
      and Maintenance Expenses related to corn, natural gas, electricity,
      insurance premiums and/or Borrower Taxes) that, in each such case, are or
      will become due and payable during the immediately succeeding calendar
      month; provided, that
      the aggregate amount of such transfer of funds pursuant to clause (B) of
      this priority
      first
      (a) for all calendar
      months in such Fiscal Year, including amounts proposed to be drawn on such
      Monthly Date for the immediately succeeding calendar month, does not
      exceed the Permitted Operating Budget Deviation Levels for such
      immediately succeeding calendar month, as certified by the Borrower in
      such Revenue Account Withdrawal Certificate;
and

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (b)

            	
              no
      more than once each calendar week, to the Operating Account, the amount
      certified by the Borrowers' Agent in such Revenue Account Withdrawal
      Certificate as required to pay some or all of the cost of corn, natural
      gas, electricity, insurance premiums and/or Borrower Taxes that, in each
      such case, are or will become due and payable during the current calendar
      month (provided that after giving effect to such transfer the amounts on
      deposit in or standing to the credit of the Operating Account for payment
      of such expenses shall not exceed the amounts anticipated to be due and
      payable for such expenses during the current calendar
    month)."

            

    

     

    
      	
               
      

            	
              3.1.2

            	
              Section 8.08(c)(i)
      (Revenue
      Account) of the Credit
      Agreement is hereby deleted and replaced with the
    following:

            

    

     

    
      	
               
      

            	
              "(i)

            	
              first:

            

    

     

    
      	
               
      

            	
              (a)

            	
              on
      each Monthly Date, (A) to Pacific Ethanol, as payment of any Sponsor
      Support Reimbursements then due and owing in accordance with the Sponsor
      Support Agreement and (B) to the Operating Account, the amount certified
      by the Borrowers' Agent in such Revenue Account Withdrawal Certificate as
      required to pay Operation and Maintenance Expenses (other than Operation
      and Maintenance Expenses related to corn, natural gas, electricity,
      insurance premiums and/or Borrower Taxes) that, in each such case, are or
      will become due and payable during the immediately succeeding calendar
      month; provided, that
      the aggregate amount of such transfer of funds pursuant to clause (B) of
      this priority
      first
      (a) for all calendar
      months in such Fiscal Year, including amounts proposed to be drawn on such
      Monthly Date for the immediately succeeding calendar month, does not
      exceed the Permitted Operating Budget Deviation Levels for such
      immediately succeeding calendar month, as certified by the Borrower in
      such Revenue Account Withdrawal Certificate;
and

            

    

     

    
      	
               
      

            	
              (b)

            	
              no
      more than once each calendar week, to the Operating Account, the amount
      certified by the Borrowers' Agent in such Revenue Account Withdrawal
      Certificate as required to pay some or all of the cost of corn, natural
      gas, electricity, insurance premiums and/or Borrower Taxes that, in each
      such case, are or will become due and payable during the current calendar
      month (provided that after giving effect to such transfer the amounts on
      deposit in or standing to the credit of the Operating Account for payment
      of such expenses shall not exceed the amounts anticipated to be due and
      payable for such expenses during the current calendar
    month)."

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              3.1.3

            	
              Paragraph
      (i) of Exhibit 8.08-A of the Credit Agreement is hereby amended by adding
      the following at the end thereof:

            

    

     

    "[(and the Borrowers hereby
certify that such amount does not exceed the Permitted Operating Budget
Deviation Levels)] [(and
the Borrowers hereby certify that (a) such amount will be applied to pay
the cost of corn, natural gas, electricity, insurance premiums and/or Borrower
Taxes that, in each such case, are or will become due and payable at any period
of time during the current calendar month and (b) the aggregate total
amounts withdrawn and transferred from the Revenue Account under Section
8.08(b)(i) (including pursuant to this Revenue Account Withdrawal Certificate)
for costs arising from the purchase of corn, natural gas, and/or electricity,
insurance premiums and/or Borrower Taxes due and payable in the current calendar
month totals [____] Dollars ($[____])];"

     

    
      	
               
      

            	
              3.1.4

            	
              Paragraph
      (i) of Exhibit 8.08-B of the Credit Agreement is hereby amended by adding
      the following at the end thereof:

            

    

     

    "[(and the Borrowers hereby
certify that such amount does not exceed the Permitted Operating Budget
Deviation Levels)] [(and
the Borrowers hereby certify that (a) such amount will be applied to pay
the cost of corn, natural gas, electricity, insurance premiums and/or Borrower
Taxes that, in each such case, are or will become due and payable at any period
of time during the current calendar month and (b) the aggregate total
amounts withdrawn and transferred from the Revenue Account under Section
8.08(b)(i) (including pursuant to this Revenue Account Withdrawal Certificate)
for costs arising from the purchase of corn, natural gas, and/or electricity,
insurance premiums and/or Borrower Taxes due and payable in the current calendar
month totals [____] Dollars ($[____])];"

     

    
      	
               
      

            	
              3.1.5

            	
              Footnote
      1 of Exhibit 8.08-A is hereby deleted and replaced with the
      following:

            

    

     

    "To be
included in the certificate for transfer permitted under Section
8.08(b)(i).  The first bracketed option applies to transfers on
Monthly Dates.  The second bracketed option applies to permitted
weekly transfers."

     

    
      	
               
      

            	
              3.1.6

            	
              Footnote
      1 of Exhibit 8.08-B is hereby deleted and replaced with the
      following:

            

    

     

    "To be
included in the certificate for each Monthly Date/weekly transfer permitted
under Section
8.08(c)(i).  The first bracketed option applies to transfers on
Monthly Dates.  The second bracketed option applies to permitted
weekly transfers."

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              3.2

            	
              Eurodollar
      Loans

            

    

     

    
      	
               
      

            	
              3.2.1

            	
              Section 3.05(e) -
      (Interest
      Rates) of the Credit
      Agreement is hereby amended by deleting the words "seven (7)" and
      replacing them with "ten (10)".

            

    

     

    
      	
               
      

            	
              3.3

            	
              Final
      Completion

            

    

     

    
      	
               
      

            	
              3.3.1

            	
              Section 7.01(y) -
      (Final
      Completion) of the Credit
      Agreement is hereby deleted and replaced with the
    following:

            

    

     

    "(y)  Final
Completion.  The Borrowers shall cause Final Completion for
each Plant with respect to which a Funding has been made to occur on or before
(i) in the case of the Madera Plant and the Boardman Plant, May 16, 2008
and (ii) in the case of each of the Greenfield Plants, the date that is
ninety (90) days after such Plant shall have achieved its Commercial
Operation Date."

     

     

    
      	
              4.

            	
              CONDITIONS

            

    

     

    
      	
               
      

            	
              4.1

            	
              Fee

            

    

     

    
      	
               
      

            	
              4.1.1

            	
              In
      consideration for each Lender's execution and delivery of this Agreement,
      the Sponsor hereby agrees to pay a waiver/amendment fee (the "Waiver/Amendment
      Fee") to each Lender who approves the amendments, modifications and
      waivers described in Sections 2 and
      3 above
      (the "Waivers
      and Amendments") by returning an executed counterpart of this
      Agreement to the Administrative Agent, subject to the
      following:

            

    

     

    (a)           notwithstanding
anything to the contrary herein, the Sponsor shall not be required to pay the
Waiver/Amendment Fee to any Lender unless the Required Lenders have executed
this Agreement on or before March 28, 2008;

     

    (b)           for
each Lender that executes and delivers to the Administrative Agent an executed
counterpart of this Agreement on or before 4:00 p.m. New York City time on March
25, 2008 (the "Early
Approving Lenders"), the amount of the Waiver/Amendment Fee owed to such
Early Approving Lender shall be one quarter of one percent (0.25%) of the
aggregate total amount of each such Early Approving Lender's Term Loan
Commitment and Working Capital Loan Commitment;

     

    (c)           for
each Lender that executes and delivers to the Administrative Agent an executed
counterpart of this Agreement after 4:00 p.m. New York City time on March 25,
2008 but on or before March 28, 2008 (the "Other Approving
Lenders"), the amount of the Waiver/Amendment Fee owed to such Other
Approving Lenders shall be fifteen-hundredths of one percent (0.15%) of the
aggregate total amount of each such Other Approving Lender's Term Loan
Commitment and Working Capital Loan Commitment;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (d)           with
respect to the Early Approving Lenders, the Sponsor shall pay the
Waiver/Amendment Fee owed to such Early Approving Lenders to the Administrative
Agent (for the account of such Early Approving Lenders) on the later of (i) the
Business Day after the date on which the Required Lenders, the
Administrative Agent, the Collateral Agent and the Accounts Bank have this
executed this Agreement and (ii) March 26, 2008;

     

    (e)           with
respect to the Other Approving Lenders, the Sponsor shall pay the
Waiver/Amendment Fee owed to such Other Approving Lenders to the Administrative
Agent (for the account of such Other Approving Lenders) on the later of (i) the
Business Day after the date that this Agreement has been executed by the
Supermajority Lenders, the Administrative Agent, the Collateral Agent and the
Accounts Bank and (ii) March 26, 2008;

     

    (f)           this
Agreement shall not be effective until the Waiver/Amendment Fee owed to the
Early Approving Lenders has been paid in accordance with clause (d)
above;

     

    (g)           the
Waiver and Amendment under Section 2.3.1(i) of
this Agreement shall not be effective until the Waiver/Amendment Fee owed to the
Other Approving Lenders has been paid in accordance with clause (e) above;
and

     

    (h)           the
failure of the Sponsor to pay the Waiver/Amendment Fee owed to any Lender
hereunder shall be a payment default under Section 9.01(a) of
the Credit Agreement.

     

    
      	
               
      

            	
              4.2

            	
              [Intentionally
      omitted.]

            

    

     

    
      	
               
      

            	
              4.3

            	
              Comerica
      Accounts

            

    

     

    
      	
               
      

            	
              4.3.1

            	
              With
      respect to the accounts in the name of the Borrowers' Agent, Madera,
      Boardman or Burley held by Comerica Bank described in the Request Letter,
      the Borrowers hereby agree, on or before March 25, 2008, to (a)
      (i) enter into a Blocked Account Agreement with respect to each such
      Comerica account and (ii) comply with the limitations on the amounts which
      may be on deposit in a Local Account, as set forth in Section 7.02(b)(vi)
      of the Credit Agreement, or (b) (i) with respect to Madera and Boardman,
      transfer all funds held in such Comerica accounts into the Revenue Account
      or apply such funds to the payment of Operation and Maintenance Expenses
      and (ii) with respect to the Borrowers' Agent and Burley, transfer all
      funds held in such Comerica accounts into the Burley Construction Account
      or apply such funds to the payment of Burley Project Costs, and in the
      case of this clause (b) only, thereafter, permanently close each such
      Comerica account.  The Borrowers further agree that the failure
      to timely satisfy this condition shall immediately void and terminate the
      effectiveness of this Agreement.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              4.4

            	
              DSR
      Payment

            

    

     

    
      	
               
      

            	
              4.4.1

            	
              With
      respect to the DSR Shortfall, the Sponsor hereby agrees to deposit three
      million four hundred thousand Dollars ($3,400,000) into the Debt Service
      Reserve Account on or before 4:00 p.m. New York City time on March 24,
      2008.  The Sponsor further agrees that the failure to timely
      satisfy this condition shall immediately void and terminate the
      effectiveness of this Agreement.

            

    

     

    
      	
               
      

            	
              4.5

            	
              Accuracy
      of Information

            

    

     

     

    
      	
               
      

            	
              4.5.1

            	
              Each
      Borrower hereby represents and warrants to each Agent and each Lender as
      of the date hereof, that all factual information contained in the Request
      Letter was, when taken as a whole (and after giving effect to any
      supplement of such information, including the Supporting Documentation)
      and as of the date furnished, true and accurate in every material respect
      and such factual information was not, when taken as a whole (and after
      giving effect to any supplement of such information, including the
      Supporting Documentation) and as of the date furnished, incomplete by
      omitting to state any material fact necessary to make such information not
      misleading in any material respect.  The Borrowers further agree
      that any breach of this representation and warranty shall be subject to
      the provisions of Section 9.01(b) of the Credit Agreement (and shall
      be or become an Event of Default if not cured in accordance with the terms
      of such Section 9.01(b)).

            

    

     

    
      	
               
      

            	
              4.6

            	
              Shortfall

            

    

     

    
      	
               
      

            	
              4.6.1

            	
              With
      respect to the Shortfall, the Sponsor hereby agrees to deposit two million
      six hundred fifty thousand eight hundred thirty-two Dollars ($2,650,832)
      into the Revenue Account and fifty-two thousand five hundred sixty-four
      Dollars ($52,564) into the Burley Construction Account on or before 4:00
      p.m. New York City time on March 24, 2008.  The Sponsor and the
      Borrowers further agree that the failure to timely satisfy this condition
      shall immediately void and terminate the effectiveness of this
      Agreement.

            

    

     

    
      	
               
      

            	
              4.6.2

            	
              In
      addition, with respect to the Shortfall, the Sponsor hereby agrees to
      deposit an additional five hundred eighty-five thousand Dollars ($585,000)
      into the Revenue Account on or before 4:00 p.m. New York City time on
      March 26, 2008.  The Sponsor and the Borrowers further agree
      that the failure to timely satisfy this condition shall immediately void
      and terminate the effectiveness of this
  Agreement.

            

    

     

    
      	
              5.

            	
              MISCELLANEOUS

            

    

     

    
      	
               
      

            	
              5.1

            	
              Counterparts

            

    

     

    This
Agreement may be executed in two or more original copies and each such copy may
be executed by each of the Parties in separate counterpart, each of which copies
when executed and delivered by the Parties shall constitute an original, but all
of which shall together constitute one and the same
instrument.  Delivery of an executed counterpart of a signature page
of this Agreement by telecopy or portable document format ("PDF") shall be
effective as delivery of a manually executed counterpart of this
Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              5.2

            	
              Governing
      Law

            

    

     

    This
Agreement shall be governed by, and construed in accordance with, the laws of
the State of New York, United States of America, without reference to conflicts
of laws (other than Section 5-1401 of the New York General Obligations
Law).

     

    
      	
               
      

            	
              5.3

            	
              Limited
      Purpose; Effect on Credit
Agreement

            

    

     

    
      	
               
      

            	
              5.3.1

            	
              Except
      as expressly amended, modified or waived hereby or otherwise provided
      herein, all of the terms and conditions of the Credit Agreement and all
      other Financing Documents remain in full force and effect, and none of
      such terms and conditions are, or shall be construed as, otherwise
      amended, modified or waived.  The Credit Agreement shall,
      together with the Waivers and Amendments, be read and construed as a
      single agreement.  The Sponsor Support Agreement shall, together
      with the Waiver and Amendment referred to in Section 2.3
      above, be read and construed as a single agreement.  All
      references in the Credit Agreement, the Sponsor Support Agreement and any
      related documents, instruments and agreements (including the Financing
      Documents) shall hereafter refer to the Credit Agreement or the Sponsor
      Support Agreement or such related documents, instruments and agreements
      (as applicable), as amended hereby.

            

    

     

    
      	
               
      

            	
              5.3.2

            	
              Notwithstanding
      anything contained herein, the Waivers and Amendments granted hereunder
      (a) are limited amendments, modifications and waivers, (b) are effective
      only with respect to the transactions described herein for the specific
      instance and the specific purpose for which they are given, (c) shall not
      be effective for any other purpose or transaction, and (d) do not
      constitute a basis for a subsequent waiver or consent of any of the
      provisions of the Credit Agreement.  Except for the Waivers and
      Amendments in Section 2 of this Agreement, nothing herein shall
      constitute a waiver by the Lenders of any Default or Event of Default or a
      waiver by the Lenders of any right, power or remedy available to the
      Lenders or the other Senior Secured Parties under the Credit Agreement,
      whether any such defaults, rights, powers or remedies presently exist or
      arise in the future.

            

    

     

    
      	
               
      

            	
              5.3.3

            	
              The
      parties acknowledge that, as of each date the Waivers and Amendments
      become effective pursuant to Section 5.4
      below, no Material Adverse Effect, Default or Event of Default shall have
      occurred and be continuing as a result of or in connection with the Cash
      Management Weakness, the Accounting Weakness, the DSR Shortfall, or the
      matters referred to in Sections 2.4,
      2.5 and
      4.3 of
      this Agreement, and the Required Lenders direct the Administrative Agent
      and the Collateral Agent to not exercise any rights or remedies against
      the Sponsor or any of the Borrowers as a result of or in connection with
      the Cash Management Weakness, the Accounting Weakness, the Shortfall, the
      DSR Shortfall, or the matters referred to in Sections 2.4,
      2.5 or
      4.3 of
      this Agreement.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              5.4

            	
              Effectiveness

            

    

     

    
      	
               
      

            	
              5.4.1

            	
              This
      Agreement shall not become effective, and shall be of no force or effect,
      if the Required Lenders, Borrowers, Borrowers' Agent, Sponsor,
      Administrative Agent, Collateral Agent and Accounts Bank have not executed
      this Agreement on or before March 28,
2008.

            

    

     

    
      	
               
      

            	
              5.4.2

            	
              The
      Waivers and Amendments (other than the Waiver and Amendment under Section
      2.3.1(i) of this Agreement) shall become effective upon the later
      to occur of (a) the execution of this Agreement by each of the
      Required Lenders and (b) the payment in full by the Sponsor of the
      Waiver/Amendment Fee in the manner set forth in Section 4.1(d)
      above.

            

    

     

    
      	
               
      

            	
              5.4.3

            	
              The
      Waiver and Amendment under Section
      2.3.1(i) of this Agreement shall become effective upon the later to
      occur of (a) the execution of this Agreement by the Lenders (other than
      any Non-Voting Lender) holding an amount in excess of sixty-six and
      two-thirds percent (66.66%) of the Construction Loan Commitments and the
      Working Capital Loan Commitments (excluding the Construction Loan
      Commitments and the Working Capital Loan Commitments of all Non-Voting
      Lenders) (the "Supermajority
      Lenders") and (b) the payment in full by the Sponsor of the
      Waiver/Amendment Fee in the manner set forth in Section 4.1(e)
      above.

            

    

     

    
      	
               
      

            	
              5.4.4

            	
              Once
      effective, the applicable Waivers and Amendments shall be binding on the
      Borrowers, the Sponsor, the Administrative Agent, the Collateral Agent,
      the Accounts Bank, the Lenders and their respective successors and
      assigns.

            

    

     

    
      	
               
      

            	
              5.5

            	
              Authority,
      Etc.

            

    

     

    (a)           The
execution and delivery by each of the Borrowers, the Sponsor and the Borrowers'
Agent of this Agreement and the performance by each such Party of all of its
agreements and obligations under the Credit Agreement as amended hereby are
within its organizational authority and have been duly authorized by all
necessary organizational action on the part of, and have been duly and validly
executed by, such Party.

     

    (b)           The
Required Lenders hereby authorize the Administrative Agent, the Collateral Agent
and the Accounts Bank to enter into this Agreement.

     

    
      	
               
      

            	
              5.6

            	
              Representations
      and Warranties

            

    

     

    The
Borrowers and Sponsor hereby certify that:

     

    (a)           except
as provided in this Agreement, all representations and warranties by any
Borrower or the Sponsor set forth in each Financing Document to which such
Borrower or the Sponsor is a party are true and correct in all material respects
on and as of the date hereof (except with respect to representations and
warranties that expressly refer to an earlier date).

     

    (b)           other
than the Defaults and Events of Default being waived in this Agreement, no
Default, Funding Default or Event of Default has occurred and is
continuing.

     

    [The remainder of this page is
intentionally blank.]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the Parties have executed and delivered this Waiver and Third
Amendment to Credit Agreement as of the date first above written.

     

     

    
    

     

    
      	 	      
              PACIFIC
      ETHANOL HOLDING CO. LLC,

              as
      Borrower

               

              By:
      ___________________________________

              Name:

              Title:

               

              PACIFIC
      ETHANOL MADERA LLC,

              as
      Borrower

               

              By:
      ___________________________________

              Name:

              Title:

               

              PACIFIC
      ETHANOL COLUMBIA, LLC,

              as
      Borrower

               

              
                By:
      ___________________________________

              

              Name:

              Title:

               

              PACIFIC
      ETHANOL STOCKTON, LLC,

              as
      Borrower

               

              By:
      ___________________________________

              Name:

              Title:

               

               

              PACIFIC
      ETHANOL MAGIC VALLEY, LLC,

              as
      Borrower

               

              
                By:
      ___________________________________

              

              Name:

              Title:

            

    

     

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    
    

     

    
      	 	      
              
                PACIFIC
      ETHANOL HOLDING CO. LLC,

              

              as
      Borrowers' Agent

               

              
                      
                  By:
      ___________________________________

                

              

              Name:

              Title:

               

              
                PACIFIC
      ETHANOL, INC.

              

              as
      Sponsor

               

              
                      
                  By:
      ___________________________________

                

              

              Name:

              
                Title:

              

            

    

     

     

     

     

     

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    

       

      
        	 	      
                WESTLB AG, NEW YORK
      BRANCH,

                as
      Administrative Agent

                 
      
                By:
      ___________________________________

                Name:

                Title:

                 

                 
      
                By:
      ___________________________________

                Name:

                Title:

                 

                 

                WESTLB
      AG, NEW YORK BRANCH,

                as
      Collateral Agent

                 

                
                        
                    By:
      ___________________________________

                  

                

                
                  Name:

                

                
                  Title:

                

                

                
                        
                    By:
      ___________________________________

                  

                

                
                  Name:

                

                
                  Title:

                

                 

                WESTLB AG, NEW YORK
      BRANCH,

                as
      Lender

                 

                      
                  By:
      ___________________________________

                

                Name:

                Title:

                 

                      
                  By:
      ___________________________________

                

                Name:

                Title:

              

      

       

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    
    

     

    
      	 	AMARILLO
      NATIONAL BANK,      
              
                 as
      Accounts Bank

              

               

              
                      
                  By:
      ___________________________________

                

              

              Name:

              Title:

               

               

              AMARILLO
      NATIONAL BANK,

              
                as
      Lender

              

               

              
                 
      
                  By:
      ___________________________________

                

              

              Name:

              Title:

               

              
                 
      _______________________________

              

              
                 
      as
      Lender

              

               

              
                By:
      ___________________________________

                Name:

              

              Title

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]