Document:

Exhibit 10.13

 

INTERCREDITOR
AGREEMENT

 

THIS
INTERCREDITOR AGREEMENT (“Agreement”) dated as of March 20, 2020, is between the PEKIN LENDERS (defined
below) and the ICP LENDERS (defined below).

 

RECITALS

 

WHEREAS,
PACIFIC ETHANOL PEKIN, LLC, a Delaware limited liability company (“Pekin”), COMPEER FINANCIAL, PCA, a federally-chartered
instrumentality of the United States, successor by merger to 1st Farm Credit Services, PCA, as a Lender, and COBANK, ACB, a federally-chartered
instrumentality of the United States, as Agent, are parties to a Credit Agreement dated as of December 15, 2016, as amended, restated,
supplemented or otherwise modified from time to time, including by that certain Amendment No. 7 to Credit Agreement and Waiver
(the “Pekin Seventh Amendment”) dated as of December 20, 2019 (and as further amended, restated, supplemented
or otherwise modified from time to time, including as of the date hereof, the “Pekin Credit Agreement”) pursuant
to which the Pekin Lenders have made and may make advances and extend other financial accommodations to Pekin. The lenders from
time to time as parties to the Pekin Credit Agreement are referred to herein as the “Pekin Lenders.”

 

WHEREAS,
ILLINOIS CORN PROCESSING, LLC, a Delaware limited liability company (“ICP” and together with Pekin collectively,
the “Borrowers”), COMPEER FINANCIAL, PCA, a federally-chartered instrumentality of the United States, as a
Lender, and COBANK, ACB, a federally-chartered instrumentality of the United States, as Cash Management Provider and Agent, are
parties to a Credit Agreement dated as of September 15, 2017 as amended from time to time, including by that certain Amendment
No. 1 to Credit Agreement and Waiver (the “ICP First Amendment” and together with the Pekin Seventh Amendment,
the “Credit Agreement Amendments”) dated as of December 20, 2019 (and as further amended, restated, supplemented
or otherwise modified from time to time, including as of the date hereof, the “ICP Credit Agreement” and together
with the Pekin Credit Agreement, the “Credit Agreements”) pursuant to which the ICP Lenders have made and may
make advances and extend other financial accommodations to ICP. The lenders from time to time as parties to the ICP Credit Agreement
are referred to herein as the “ICP Lenders.”

 

WHEREAS,
in connection with the Pekin Credit Agreement, Pekin executed (i) an Illinois Future Advance Real Estate Mortgage dated as of
December 15, 2016 (“Pekin Mortgage”) in favor of the Pekin Lenders which provided that, among other things,
the real estate collateral referenced in the Pekin Mortgage also secured Pekin’s obligations under the Pekin Credit Agreement
(the “Pekin Priority Real Property Collateral”), and (ii) a Security Agreement dated as of December 15, 2016
(“Pekin Security Agreement”) in favor of the Pekin Lenders which provided that, among other things, the personal
property collateral referenced therein secured Pekin’s obligations under the Pekin Credit Agreement (the “Pekin
Priority Personal Property Collateral” and together with the Pekin Priority Personal Property Collateral, the “Pekin
Priority Collateral”).

 

WHEREAS,
in connection with the ICP Credit Agreement, ICP executed (i) an Illinois Future Advance Real Estate Mortgage dated as of September
15, 2017 (“ICP Mortgage”) in favor of the ICP Lenders which provided that, among other things, the real estate
collateral referenced in the ICP Mortgage also secured ICP’s obligations under the ICP Credit Agreement (the “ICP
Priority Real Property Collateral”), and (ii) a Security Agreement dated as of September 15, 2017 (“ICP Security
Agreement”) in favor of the ICP Lenders which provided that, among other things, the personal property collateral referenced
therein secured ICP’s obligations under the ICP Credit Agreement (the “ICP Priority Personal Property Collateral”
and together with the ICP Priority Personal Property Collateral, the “ICP Priority Collateral”). The Pekin
Priority Collateral together with the ICP Priority Collateral is sometimes referred to herein as the “Collateral”.

 

     

     

    

 

WHEREAS,
in connection with the Pekin Seventh Amendment, Pekin executed (i) a Guaranty even dated therewith (“Pekin Guaranty”)
in favor of the ICP Lenders, and (ii) a First Amendment to Security Agreement even dated therewith in favor of the ICP Lenders
(and together with the Pekin Guaranty, the “Pekin Cross-Collateral Documents”) which provides that, among other
things, the personal property collateral referenced in the Pekin Security Agreement also secures Pekin’s obligations under
the Pekin Guaranty (the “Pekin Subordinated Personal Property Collateral”) and (iii) a Third Amendment to Illinois
Future Advance Real Estate Mortgage even dated therewith (“Pekin Mortgage Amendment”) in favor of the ICP Lenders
which provides that, among other things, the real estate collateral referenced in the Pekin Mortgage also secures Pekin’s
obligations under the Pekin Guaranty (the “Pekin Subordinated Real Property Collateral” and together with the
Pekin Subordinated Personal Property Collateral, the “Pekin Subordinated Collateral”).

 

WHEREAS,
in connection with the ICP First Amendment, ICP executed (i) a Guaranty even dated therewith (“ICP Guaranty”)
in favor of the Pekin Lenders, and (ii) a First Amendment to Security Agreement even dated therewith in favor of the Pekin Lenders
and together with the ICP Guaranty, the “ICP Cross-Collateral Documents”) which provides that, among other
things, the personal property collateral referenced in the ICP Security Agreement also secures ICP’s obligations under the
ICP Guaranty (the “ICP Subordinated Personal Property Collateral”) and (iii) an Amendment to Illinois Future
Advance Real Estate Mortgage even dated therewith (“ICP Mortgage Amendment”) in favor of the Pekin Lenders
which provides that, among other things, the real estate collateral referenced in the ICP Mortgage also secures ICP’s obligations
under the ICP Guaranty (the “ICP Subordinated Real Property Collateral” and together with the ICP Subordinated
Personal Property Collateral, the “ICP Subordinated Collateral”).

 

WHEREAS,
per the Pekin Seventh Amendment and the ICP First Amendment, on or before September 30, 2020, the Pekin Lenders and the ICP Lenders
shall receive payment of $40,000,000 (the “Paydown Amount”) to reduce the outstanding balances of the respective
Term Loans under the Credit Agreements.

 

NOW,
THEREFORE, in consideration of the premises and mutual covenants herein contained and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the ICP Lenders and the Pekin Lenders (each, a “Party”
and collectively, the “Parties”) are executing this Agreement to set forth their lien priorities with respect
to the Collateral.

 

NOW,
THEREFORE, in consideration of the premises, and intending to be legally bound hereby, the Parties hereby agree as set forth below.

 

1. Recitals.
The Recitals to this Agreement as set forth above are true and correct, and are hereby incorporated into and made a part of this
Agreement.

 

2.
 Definitions. The terms set forth below shall have the meaning as set forth in
this Section.

 

“Aurora”
means Pacific Aurora, LLC, a Delaware limited liability company and subsidiary of PEC.

 

“ICP
Obligations” means the obligations of ICP to the ICP Lenders that are now or hereafter secured by all or a portion of
the ICP Priority Collateral.

 

“Debt
or Equity Issuance” means any one or more of the following: (i) the issuance of preferred stock by Pekin and/or ICP,
(ii) the issuance of subordinated debt by Pekin and/or ICP, and (iii) any other transaction with a similar impact on the ownership
and/or capitalization of either or both of Pekin and ICP.

 

    - 2 -

     

    

 

“Debt
or Equity Issuance Proceeds” means any proceeds from a Debt or Equity Issuance Sale.

 

“Full
Business Sale” means the sale of all or substantially all of the stock or assets of either or both of Pekin and ICP.

 

“Full
Business Sale Proceeds” means any proceeds from a Full Business Sale.

 

“Partial
Equity Sale” means any the sale of some, but not all or substantially all, of the equity interests in either or both
of Pekin and ICP.

 

“Partial
Equity Sale Proceeds” means any proceeds from a Partial Equity Sale.

 

“Paydown
Proceeds” means, collectively and individually, any (i) Debt or Equity Issuance Proceeds, (ii) Partial Equity Sale Proceeds,
and (iii) proceeds from any sale of some or all of the stock or equity of Aurora, but specifically excluding any Full Business
Sale Proceeds.

 

“PEC”
means Pacific Ethanol Central LLC, a Delaware limited liability company, and sole member of each of Pekin and ICP.

 

“PEC
Asset Sale” shall have the meaning given to such term in the Pekin Credit Agreement.

 

“Pekin
Obligations” means the obligations of Pekin to the Pekin Lenders that are now or hereafter secured by all or a portion
of the Pekin Priority Collateral.

 

“Western
Asset Sale” shall have the meaning given to such term in the Pekin Credit Agreement.

 

3. Priority;
Application of Proceeds; Incorrect Payments.

 

3.1. Notwithstanding
the terms or provisions of any agreement or arrangement that either Party may now or hereafter have with Pekin or any rule of
law, and irrespective of the time, order or method of attachment or perfection of any security interest or the recordation or
other filing in any public record of any financing statement, any security interest in all or any part of the Pekin Priority Collateral
now or hereafter existing in favor of the Pekin Lenders, whether or not perfected, and any other right, title or interest in the
Pekin Priority Collateral now or hereafter held by Pekin, are and shall remain senior to any security interest in all or any part
of the Pekin Priority Collateral now or hereafter existing in favor of the ICP Lenders. The ICP Lenders agree that they will not
at any time contest the validity, perfection, priority or enforceability of the Pekin Obligations, or the liens and security interests
of the Pekin Lenders in the Pekin Priority Collateral. In the event of any sale, transfer or other disposition of the Pekin Priority
Collateral (other than in connection with a Full Business Sale), the proceeds resulting therefrom (including insurance proceeds)
shall be applied as follows: (i) first, to the Pekin Obligations as the Pekin Lenders shall determine in their sole discretion,
(ii) unless the Paydown Amount has been paid in full, second, to the ICP Obligations as the ICP Lenders shall determine in their
sole discretion, and (iii) third, to Pekin or to whoever is lawfully entitled to the same.

 

    - 3 -

     

    

 

3.2. Notwithstanding
the terms or provisions of any agreement or arrangement that either Party may now or hereafter have with ICP or any rule of law,
and irrespective of the time, order or method of attachment or perfection of any security interest or the recordation or other
filing in any public record of any financing statement, any security interest in all or any part of the ICP Priority Collateral
now or hereafter existing in favor of the ICP Lenders, whether or not perfected, and any other right, title or interest in the
ICP Priority Collateral now or hereafter held by ICP, are and shall remain senior to any security interest in all or any part
of the ICP Priority Collateral now or hereafter existing in favor of the Pekin Lenders. The Pekin Lenders agree that they will
not at any time contest the validity, perfection, priority or enforceability of the ICP Obligations, or the liens and security
interests of the ICP Lenders in the ICP Priority Collateral. In the event of any sale, transfer or other disposition of the ICP
Priority Collateral (other than in connection with a Full Business Sale), the proceeds resulting therefrom (including insurance
proceeds) shall be applied as follows: (i) first, to the ICP Obligations as the ICP Lenders shall determine in their sole discretion,
(ii) unless the Paydown Amount has been paid in full, second, to the Pekin Obligations as the Pekin Lenders shall determine in
their sole discretion, and (iii) third, to ICP or to whoever is lawfully entitled to the same.

 

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

 

3.4. In
the event of a Full Business Sale of Pekin, the Full Business Sale Proceeds shall be applied as follows: (i) first to the pay
down of principal of the “Term Loan” under the Pekin Credit Agreement until paid in full, and (ii) second, to the
“Revolving Term Loan” under the Pekin Credit Agreement. Any proceeds that remain following the full satisfaction of
the Pekin Obligations shall be applied as set forth in Section 2.8 of the Pekin Credit Agreement.

 

3.5. In
the event of a Full Business Sale of ICP, the Full Business Sale Proceeds shall be applied as follows: (i) first to the pay down
of principal of the “Term Loan” under the ICP Credit Agreement until paid in full, and (ii) second, to the “Revolving
Term Loan” under the ICP Credit Agreement. Any proceeds that remain following the full satisfaction of the ICP Obligations
shall be applied as set forth in Section 2.8 of the Pekin Credit Agreement.

 

3.6. The
Parties acknowledge and agree that upon the receipt by the Parties of the Paydown Amount in full, (i) the security interest of
the ICP Lenders in the Pekin Subordinated Collateral shall automatically terminate in accordance with the terms contained in the
Pekin Cross-Collateral Documents, without further action by or notice to either Party, and (ii) the security interest of the Pekin
Lenders in the ICP Subordinated Collateral shall automatically terminate in accordance with the terms contained in the ICP Cross-Collateral
Documents, without further action by or notice to either Party.

 

3.7. If
any payment not permitted to be made by either of the Borrowers to the Pekin Lenders or accepted by the Pekin Lenders under this
Agreement is made and received by the Pekin Lenders, such payment shall not be commingled with any of the assets of the Pekin
Lenders but shall be held by the Pekin Lenders for the benefit of the ICP Lenders and shall be promptly paid over to the ICP Lenders
for application to the payment of the ICP Obligations then remaining unpaid as the ICP Lenders shall determine in their sole discretion
until all of the ICP Obligations are paid in full.

 

3.8. If
any payment not permitted to be made by either of the Borrowers to the ICP Lenders or accepted by the ICP Lenders under this Agreement
is made and received by the ICP Lenders, such payment shall not be commingled with any of the assets of the ICP Lenders, shall
be held by the ICP Lenders for the benefit of the Pekin Lenders and shall be promptly paid over to the Pekin Lenders for application
to the payment of the Pekin Obligations then remaining unpaid as the Pekin Lenders shall determine in their sole discretion until
all of the Pekin Obligations are paid in full.

 

    - 4 -

     

    

 

3.9. For
the avoidance of doubt, and in addition to the provisions of Section 3.1 and 3.2 above, the Parties acknowledge and agree that
the lien priorities set forth in this Agreement shall not be altered or otherwise affected by any failure to perfect the security
interests in the Collateral, the avoidance or invalidation of any Party’s lien or by any other action or inaction which
(i) the ICP Lenders or their Agent may take or fail to take with respect to the ICP Priority Collateral or (ii) the Pekin Lenders
or their Agent may take or fail to take with respect to the Pekin Priority Collateral.

 

4. Enforcement
of Security Interests in Pekin Priority Collateral.

 

4.1. Unless
and until all of the Pekin Obligations have been paid in full, the ICP Lenders shall have no right to take any action with respect
to any portion of the Pekin Priority Collateral without the written consent of the Pekin Lenders, whether by judicial or nonjudicial
foreclosure, notification to Pekin’s account debtors, the seeking of the appointment of a receiver for any portion of the
Pekin Priority Collateral, or otherwise. For purposes of this Agreement, the Pekin Obligations shall not be deemed to have been
paid in full until all obligations of the Pekin Lenders to extend credit to Pekin have terminated and the Pekin Lenders have received
payment of the Pekin Obligations in cash.

 

4.2. If
the ICP Lenders, in contravention of the terms of this Agreement, (i) commence, prosecute or participate in any suit, proceeding
or other action with respect to any of the Pekin Priority Collateral, then the Pekin Lenders may interpose as a defense or plea
the making of this Agreement, and the Pekin Lenders may intervene and interpose such defense or plea in its name or in the name
of Pekin, or (ii) attempts to enforce any remedies prohibited by this Agreement, then the Pekin Lenders may restrain the enforcement
thereof in its own name or in the name of Pekin.

 

4.3. Unless
and until the Pekin Obligations have been paid in full, any Pekin Priority Collateral received by the ICP Lenders shall be held
in trust for the benefit of the Pekin Lenders and immediately remitted to the Pekin Lenders.

 

4.4. For
the avoidance of doubt, other than specifically contained in this Section 4 or in Section 5 below, nothing contained in this Agreement
shall in any way limit, prohibit or modify the rights or remedies of, or the enforcement or collection by (i) the Pekin Lenders
with respect to the Pekin Obligations and the Pekin Priority Collateral, or (ii) ICP with respect to the ICP Obligations and the
ICP Priority Collateral.

 

5. Enforcement
of Security Interests in ICP Priority Collateral.

 

5.1. Unless
and until all of the ICP Obligations have been paid in full, the Pekin Lenders shall have no right to take any action with respect
to any portion of the ICP Priority Collateral without the written consent of the ICP Lenders, whether by judicial or nonjudicial
foreclosure, notification to ICP’s account debtors, the seeking of the appointment of a receiver for any portion of the
ICP Priority Collateral, or otherwise. For purposes of this Agreement, the ICP Obligations shall not be deemed to have been paid
in full until all obligations of the ICP Lenders to extend credit to ICP have terminated and the ICP Lenders have received payment
of the ICP Obligations in cash.

 

5.2. If
the Pekin Lenders, in contravention of the terms of this Agreement, (i) commence, prosecute or participate in any suit, proceeding
or other action with respect to any of the ICP Priority Collateral, then the ICP Lenders may interpose as a defense or plea the
making of this Agreement, and the ICP Lenders may intervene and interpose such defense or plea in its name or in the name of ICP,
or (ii) attempts to enforce any remedies prohibited by this Agreement, then the ICP Lenders may restrain the enforcement thereof
in its own name or in the name of ICP.

 

    - 5 -

     

    

 

5.3. Unless
and until the ICP Obligations have been paid in full, any ICP Priority Collateral received by the Pekin Lenders shall be held
in trust for the benefit of the ICP Lenders and immediately remitted to the ICP Lenders.

 

6. Representations
and Covenants.

 

6.1. The
Pekin Lenders represent and warrant, or covenant (as applicable), to the ICP Lenders that: (a) the Pekin Lenders are the owners
of the Pekin Obligations, free and clear of the claims of any other person or entity; (b) the Pekin Lenders have not heretofore
subordinated the Pekin Obligations, or the security interest securing the same, to the obligations or security interest of any
other person or entity; (c) the Pekin Lenders will not, at any time while this Agreement is in effect, sell, transfer, pledge,
assign, hypothecate or otherwise dispose of any or all of the Pekin Obligations to any person or entity other than one that agrees
in a writing, satisfactory in form and substance to the ICP Lenders, to become a party to this Agreement and to succeed to the
rights, and be bound by all of the obligations, of the Pekin Lenders hereunder. In the case of any such disposition by the Pekin
Lenders, they will notify the ICP Lenders at least (10) ten days prior to the date of any such intended disposition; (d) the execution
of this Agreement by the Pekin Lenders will not violate or conflict with the organizational documents of the Pekin Lenders, any
material agreement binding upon the Pekin Lenders or any law, regulation or order or require any consent or approval which has
not been obtained, and (e) the Pekin Lenders will provide the ICP Lenders written notice of any amendments to the agreements evidencing
the Pekin Obligations.

 

6.2. The
ICP Lenders represent and warrant, or covenant (as applicable), to the Pekin Lenders that: (a) the ICP Lenders are the owner of
the ICP Obligations, free and clear of the claims of any other person or entity; (b) the ICP Lenders have not heretofore subordinated
the ICP Obligations, or the security interest securing the same, to the obligations or security interest of any other person or
entity; (c) the ICP Lenders will not, at any time while this Agreement is in effect, sell, transfer, pledge, assign, hypothecate
or otherwise dispose of any or all of the ICP Obligations to any person or entity other than one that agrees in a writing, satisfactory
in form and substance to the Pekin Lenders, to become a party hereto and to succeed to the rights, and be bound by all of the
obligations, of the ICP Lenders hereunder. In the case of any such disposition by the ICP Lenders, they will notify the Pekin
Lenders at least (10) ten days prior to the date of any such intended disposition; (d) the execution of this Agreement by the
ICP Lenders will not violate or conflict with the organizational documents of the ICP Lenders, any material agreement binding
upon the ICP Lenders or any law, regulation or order or require any consent or approval which has not been obtained, and (e) the
ICP Lenders will provide the Pekin Lenders written notice of any amendments to the agreements evidencing the Pekin Obligations.

 

7.
Effect of Bankruptcy.

 

7.1
This Agreement shall remain in full force and effect notwithstanding the filing of a petition for relief by or against any Borrower
under the Bankruptcy Code and shall apply with full force and effect with respect to all applicable Collateral acquired by such
Borrower, or obligations incurred by such Borrower to the applicable Party, subsequent to the date of said petition.

 

7.2
If any Borrower becomes subject to a proceeding under the Bankruptcy Code and either Party permits the use of cash collateral
or provides financing to such Borrower under Section 363 or 364 of the Bankruptcy Code, then adequate notice to the other
Party shall have been provided for such financing upon 10 business day’ notice prior to the entry of the final order approving
such financing as provided for in Section 18 below.

 

8. No
Duty to Lend. Nothing contained herein or in any prior agreement or understanding shall be deemed to create any duty on the
part of either Party to extend or continue to extend financial accommodations to any Borrower.

    - 6 -

     

    

 

9. Waiver
of Marshaling. Each Party irrevocably waives any right to compel the other Party to marshal assets of any Borrower.

 

10. UCC
Notices. In the event that either Party is required by this Agreement, the Uniform Commercial Code or any other applicable
law to give any notice to the other Party, such notice shall be given to such other Party at the appropriate address specified
in Section 18 hereof (or to such other address with respect to which notice has been given hereunder), and ten (10) business days’
notice shall be conclusively deemed to be commercially reasonable.

 

11. Benefits
of This Agreement. This Agreement is solely for the benefit of and shall bind the Parties and their respective successors
and assigns, and no other person or entity shall have any right, benefit, priority or interest hereunder.

 

12. Modification.
This Agreement shall be subject to modification only in writing, signed by the Parties.

 

13. Term.
This Agreement shall continue so long as both Parties have a security interest in all or a portion of the Collateral.

 

14. Waiver.

 

14.1
No delay or failure of either Party in exercising any right, power or remedy under this Agreement shall affect or operate as a
waiver of such right, power or remedy, nor shall any single or partial exercise of any such right, power or remedy preclude, waive
or otherwise affect any other or further exercise thereof or the exercise of any other right, power or remedy.

 

14.2
Any waiver, consent or approval of any kind by either Party, or any notice of breach or default under this Agreement, shall be
ineffective unless in writing and shall be effective only to the extent set forth in such writing.

 

15. Obligations
Hereunder Not Affected. All rights and interests of the Parties under this Agreement, and all agreements and obligations of
the Parties under this Agreement, shall remain in full force and effect irrespective of the following: (a) any lack of validity
or enforceability of any of the Pekin Obligations or the ICP Obligations; (b) any change in the time, manner or place of payment
of, or in any other term of, any or all of the Pekin Obligations or the ICP Obligations, or any other amendment or waiver of,
or consent to departure from, any term or provision of any of the Pekin Obligations or the ICP Obligations; (c) any release, amendment
or waiver of, or consent to departure from, any guaranty for any or all of the Pekin Obligations or the ICP Obligations; and (d)
any other circumstance that might otherwise constitute a defense available to, or a discharge of, a subordinated creditor. This
Agreement shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Pekin
Obligations is rescinded or must otherwise be returned by the Pekin Lenders, or any payment of any of the ICP Obligations is rescinded
or must otherwise be returned by the ICP Lenders, in either case upon the insolvency, bankruptcy or reorganization of the Debtor
or otherwise, all as though such payment had not been made.

 

16.
Choice of Law. THIS AGREEMENT AND ALL TRANSACTIONS CONTEMPLATED HEREUNDER AND/OR EVIDENCED HEREBY SHALL BE GOVERNED BY,
CONSTRUED UNDER AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF COLORADO.

 

    - 7 -

     

    

 

17.
Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the same agreement.

 

18
Notices. Unless otherwise specifically provided herein, any notice delivered under this Agreement shall be in writing addressed
to the respective party as set forth below and may be personally served, sent via electronic mail or sent by overnight courier
service or certified or registered United States mail and shall be deemed to have been given (a) if delivered in person, when
delivered; (b) if delivered by electronic mail, on the date of transmission if transmitted on a business day before 4:00 p.m.
(Central time) or, if not, on the next succeeding business day; (c) if delivered by overnight courier, one business day after
delivery to such courier properly addressed; or (d) if by United States mail, four (4) Business Days after deposit in the United
States mail, postage prepaid and properly addressed.

Notices
shall be addressed as follows:

 

	If
        to the Pekin Lenders:

        COBANK,
        ACB

        6340
        South Fiddlers Green Circle

        Greenwood
        Village, CO 80111

        Attention:
        Credit Information Services

        Email:
        CIServices@cobank.com

         
	With
        a copy to:

        Bryan
        Cave Leighton Paisner LLP

        161
        North Clark Street, Suite 4300

        Chicago,
        IL 60201

        Attn:
        Eric S. Prezant, Esq.

        Email:
        eric.prezant@bclplaw.com

         

	If
        to the ICP Lenders:

        COBANK,
        ACB

        6340
        South Fiddlers Green Circle

        Greenwood
        Village, CO 80111

        Attention:
        Credit Information Services

        Email:
        CIServices@cobank.com
	With
        a copy to:

        Bryan
        Cave Leighton Paisner LLP

        161
        North Clark Street, Suite 4300

        Chicago,
        IL 60201

        Attn:
        Eric S. Prezant, Esq.

        Email:
        eric.prezant@bclplaw.com.

	 	 

or
in any case, to such other address as the party addressed shall have previously designated by written notice to the serving party,
given in accordance with this Section 18.

 

[Remainder
of page intentionally left blank; signature page follows]

 

    - 8 -

     

    

 

The
parties hereto have caused this Agreement to be duly executed and delivered by their respective officers or representatives thereunto
duly authorized as of the date first written above.

 

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

  

Acknowledged and Agreed:

 

	COBANK, ACB, as Cash Management Provider and Agent for the Pekin Lenders	 	PACIFIC ETHANOL PEKIN, LLC
	 	 	 
	 	 	 
	By: 	/s/
Janet Downs	 	By:	/s/
Bryon McGregor
	Name: 	Janet Downs	 	Name: 	Bryon McGregor
	Title:	Vice President	 	Title:	Chief Financial Officer
	 	 	 
	COBANK, ACB, as Cash Management Provider and Agent for the ICP Lenders	 	ILLINOIS CORN PROCESSING, LLC
	 	 	 
	By: 	/s/ Janet Downs	 	By:	/s/
Bryon McGregor
	Name:	Janet Downs	 	Name:	Bryon McGregor
	Title:	Vice President	 	Title:	Chief Financial Officer

 

 

- 9 -Exhibit
4.3

 

PROPHASE
LABS, INC.

DESCRIPTION
OF COMMON STOCK

 

ProPhase
Labs, Inc. (the “Company”) has one class of securities registered under Section 12 of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”) – common stock, par value $0.0005 per share (the “Common Stock”).
The Common Stock trades on The Nasdaq Capital Market under the trading symbol “PRPH.”

 

The
following summary description sets forth some of the general terms and provisions of the Common Stock. Because this is a summary
description, it does not contain all of the information that may be important to you. For a more detailed description of the Common
Stock, you should refer to the Company’s Certificate of Incorporation (the “Certificate”) and the Amended and
Restated Bylaws (the “Bylaws”), which are filed as exhibits to the Annual Report on Form 10-K to which this description
is filed as an exhibit.

 

The
Company’s authorized capital stock consists of 51,000,000 shares, all with a par value of $0.0005 per share, 50,000,000
of which are designated as Common Stock and 1,000,000 of which are designated as preferred stock.

 

General

 

The
holders of Common Stock are entitled to one vote per share on all matters to be voted upon by the stockholders, except on matters
relating solely to terms of preferred stock. Subject to preferences that may be applicable to any outstanding preferred stock,
the holders of Common Stock will be entitled to receive ratably such dividends, if any, as may be declared from time to time by
the board of directors out of funds legally available therefor. In the event of the Company’s liquidation, dissolution or
winding up, the holders of Common Stock will be entitled to share ratably in all assets remaining after payment of liabilities,
subject to prior distribution rights of preferred stock, if any, then outstanding. The holders of Common Stock have no preemptive
or conversion rights or other subscription rights. There are no redemption or sinking fund provisions applicable to the Common
Stock.

 

Anti-Takeover
Effects of Delaware Law and Our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws

 

The
provisions of Delaware law and the Certificate and Bylaws, could discourage or make it more difficult to accomplish a proxy contest
or other change in the Company’s management or the acquisition of control by a holder of a substantial amount of the Company’s
voting stock. It is possible that these provisions could make it more difficult to accomplish, or could deter, transactions that
stockholders may otherwise consider to be in their best interests or in the Company’s best interests. These provisions are
intended to enhance the likelihood of continuity and stability in the composition of the Company’s board of directors and
in the policies formulated by the board of directors and to discourage certain types of transactions that may involve an actual
or threatened change of control. These provisions are designed to reduce the Company’s vulnerability to an unsolicited acquisition
proposal and to discourage certain tactics that may be used in proxy fights. Such provisions also may have the effect of preventing
changes in the Company’s management.

 

Delaware
Statutory Business Combinations Provision. The Company is subject to the anti-takeover provisions of Section 203 of the Delaware
General Corporation Law, or the DGCL. Section 203 prohibits a publicly-held Delaware corporation from engaging in a “business
combination” with an “interested stockholder” for a period of three years after the date of the transaction
in which the person became an interested stockholder, unless the business combination is, or the transaction in which the person
became an interested stockholder was, approved in a prescribed manner or another prescribed exception applies. For purposes of
Section 203, a “business combination” is defined broadly to include a merger, asset sale or other transaction resulting
in a financial benefit to the interested stockholder, and, subject to certain exceptions, an “interested stockholder”
is a person who, together with his or her affiliates and associates, owns, or within three years prior, did own, 15% or more of
the corporation’s voting stock.

 

    	 

    	 

    

 

Blank-Check
Preferred Stock. The Company’s board of directors is authorized to issue, without stockholder approval, preferred stock,
the rights of which will be determined at the discretion of the board of directors and that, if issued, could operate as a “poison
pill” to dilute the stock ownership of a potential hostile acquirer to prevent an acquisition that the board of directors
does not approve.

 

Special
Meetings of Stockholders. Special meetings of the stockholders may be called at any time only by the Chairman of the board
of directors or the board of directors, subject to the rights of the holders of any series of preferred stock then outstanding.

 

No
Written Consent of Stockholders. The Bylaws provide that all stockholder actions are required to be taken by a vote of the
stockholders at an annual or special meeting, and that stockholders may not take any action by written consent in lieu of a meeting.

 

Advance
Notice Provisions for Stockholder Proposals and Stockholder Nominations of Directors. The Bylaws provide that, for nominations
to the board of directors or for other business to be properly brought by a stockholder before a meeting of stockholders, the
stockholder must first have given timely notice of the proposal in writing to the Company’s Secretary. For an annual meeting,
a stockholder’s notice generally must be delivered not less than 90 days or more than 120 days prior to the anniversary
of the previous year’s annual meeting.

 

Election
and Removal of Directors. Except as may otherwise be provided by the DGCL, any director or the entire board of directors may
be removed, with or without cause, at an annual meeting or a special meeting called for that purpose, by the affirmative vote
of the holders of a majority of the shares then entitled to vote at an election of directors. Vacancies on the board of directors
resulting from the removal of directors and newly created directorships resulting from any increase in the number of directors
may be filled solely by the affirmative vote of a majority of the remaining directors then in office. This system of electing
and removing directors may discourage a third party from making a tender offer or otherwise attempting to obtain control of the
Company, because it generally makes it more difficult for stockholders to replace a majority of our directors. The Certificate
and Bylaws do not provide for cumulative voting in the election of directors.

 

Exclusive
Jurisdiction. The Bylaws provide that, unless the Company consents in writing to the selection of an alternative forum, the
Court of Chancery of the State of Delaware shall be the sole and exclusive forum for (i) any derivative action or proceeding brought
on behalf of the Company, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other
employee of the Company to the Company or the Company’s stockholders, (iii) any action asserting a claim arising pursuant
to any provision of the DGCL, the Certificate of Incorporation or the Bylaws, or (iv) any action asserting a claim against the
Company governed by the internal affairs doctrine.”

 

Transfer
Agent and Registrar

 

The
transfer agent and registrar for the Company’s common stock is American Stock Transfer & Trust Company, LLC.

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