Document:

Document

Execution Version

AMENDMENT NO. 5, dated as of July 20, 2020 (this “Amendment”), to the Credit Agreement, dated as of October 17, 2016 (as amended, restated, modified or otherwise supplemented prior to the date hereof, the “Existing Credit Agreement”; the Existing Credit Agreement as amended by this Amendment, the “Credit Agreement”), by and among ENTERCOM MEDIA CORP. (formerly known as CBS RADIO INC.), a Delaware corporation (“Borrower”), each of the GUARANTORS party thereto, the LENDERS and L/C ISSUERS party thereto from time to time and JPMORGAN CHASE BANK, N.A., as administrative agent (the “Administrative Agent”) and as Collateral Agent (the “Collateral Agent”).  Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Credit Agreement. 
WHEREAS, the Borrower wishes to amend the financial covenant set forth in Section 7.09 of the Credit Agreement in accordance with Section 10.01 of the Credit Agreement;
WHEREAS, the Required Class Lenders for the Revolving Credit Facility have agreed to amend Section 7.09 of the Credit Agreement as contemplated above on the terms and subject to the conditions set forth herein;
NOW, THEREFORE, in consideration of the premises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:
SECTION 1.  Amendment of the Credit Agreement.  The Credit Agreement is, effective as of the Amendment No. 5 Effective Date (as defined below), hereby amended as follows:
1.The following new definitions are hereby added to Section 1.01 of the Credit Agreement in the appropriate alphabetical order:
“Amendment No. 5” shall mean Amendment No. 5 to this Agreement, dated as of July 20, 2020, by and among the Borrower, the Guarantors, the Administrative Agent and the Lenders party thereto.
“Amendment No. 5 Effective Date” has the meaning set forth in Amendment No. 5.
“Covenant Relief Period” shall mean the period commencing on the Amendment No. 5 Effective Date and ending on the earlier of (x) December 31, 2021 and (y) the first Business Day after the date that the Borrower shall have delivered a Covenant Relief Period Termination Notice; provided that such Covenant Relief Period Termination Notice shall include reasonably detailed calculations demonstrating compliance with Section 7.09(a) (without giving effect to the final proviso set forth in the definition of “Consolidated EBITDA”) as of the last day of the most recently ended Test Period (such earlier date, the “Covenant Relief Period End Date”).  

“Covenant Relief Period End Date” has the meaning set forth in the definition of “Covenant Relief Period”. 
“Covenant Relief Period Termination Notice” means a certificate of a Responsible Officer of the Borrower that is delivered to the Administrative Agent stating that the Borrower irrevocably elects to terminate the Covenant Relief Period effective as of the first Business Day after the date the Administrative Agent receives a Covenant Relief Period Termination Notice.
 “Liquidity” shall mean, as of any date of determination, the sum of (x) cash and Cash Equivalents (which are not Restricted Cash) that would be stated on the consolidated balance sheet of the Loan Parties as of such date of determination and (y) the amount by which the aggregate Revolving Credit Commitments exceed the sum of (i) the Outstanding Amount of Revolving Credit Loans and (ii) the Outstanding Amount of L/C Obligations, in each case, as of such date. 
“Secured Notes” shall have the meaning set forth in Section 7.09(c)(v).
2.Section 1.01 of the Credit Agreement is hereby amended to the add the following proviso to the end of clause (b) of the definition of “Applicable Rate”:
        “; provided, that notwithstanding the foregoing, at all times during the Covenant Relief Period, (i) the Applicable Rate with respect to 2024 Revolving Credit Loans shall be 2.50% per annum, in the case of Eurodollar Rate Loans, and 1.50% per annum, in the case of Base Rate Loans and (ii) the Applicable Rate with respect to Letter of Credit fees shall be 2.50%.”  
3.Section 1.01 of the Credit Agreement is hereby amended by adding the following proviso to the end of the definition of “Consolidated EBITDA”:
    “; provided, that, solely for purposes of testing compliance with Section 7.09(a) prior to the Covenant Relief Period End Date, Consolidated EBITDA for the fiscal quarters ending June 30, 2020, September 30, 2020 and December 31, 2020 shall be deemed equal to $90,679,106, $97,918,465 and $113,947,198, respectively (and in each case subject to adjustments made on a Pro Forma Basis in accordance with Section 1.08).”
4.Section 7.09 of the Credit Agreement is hereby amended and restated in its entirety as follows:
“7.09    Financial Covenants.
1.Consolidated Net First Lien Leverage Ratio.  As long as any Revolving Credit Commitment remains outstanding, the Borrower shall not 
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permit the Consolidated Net First Lien Leverage Ratio as of the last day of any Test Period (other than (x) the Test Period ending September 30, 2020 and (y) the Test Period ending December 31, 2020, unless, in each case, a Covenant Relief Period Termination Notice shall have been delivered to the Administrative Agent prior to such date) to be higher than 4.00 to 1.00 (such ratio, the “Maximum Consolidated Net First Lien Leverage Ratio”); provided that in the event the Borrower or any Restricted Subsidiary makes a Permitted Acquisition in compliance with the terms of this Agreement that causes, on a Pro Forma Basis after giving effect to such Permitted Acquisition (and any Indebtedness incurred in connection therewith), the Consolidated Net First Lien Leverage Ratio to be greater than 3.75 to 1.00 but less than or equal to 4.50 to 1.00, the Maximum Consolidated Net First Lien Leverage Ratio will be increased to 4.50 to 1.00 during the one year period following the consummation of such Permitted Acquisition (it being understood and agreed that any additional Permitted Acquisition consummated during such one year period shall not extend such period for any additional time). 
2.Minimum Liquidity.  As long as any Revolving Credit Commitment remains outstanding, the Borrower shall not permit Liquidity as of the last day of any Test Period ending during the Covenant Relief Period to be less than $75,000,000. 
3.Additional Restrictions During the Covenant Relief Period.  Notwithstanding anything in this Agreement or the other Loan Documents to the contrary, the Borrower agrees that, from the Amendment No. 5 Effective Date until the Covenant Relief Period End Date, for so long as there are any outstanding Revolving Credit Commitments, the following restrictions and provisions in addition to those set forth elsewhere in this Agreement and the other Loan Documents shall apply for the benefit of the Revolving Credit Lenders:
    (i)      The Borrower and the Restricted Subsidiaries shall not request or incur (A) Incremental Term Loans, (B) Revolving Commitment Increases or (C) Indebtedness pursuant to a Permitted Debt Offering, in each case, in reliance on clause (a) of the definition of “Maximum Incremental Facilities Amount” unless, after giving effect thereto, the aggregate amount of Indebtedness incurred in reliance on clause (a) of the definition of “Maximum Incremental Facilities Amount” since the Amendment No. 5 Effective Date that is secured by the Collateral on a pari passu basis with the Obligations would not exceed $200.0 million.
    (ii)    The Borrower and its Restricted Subsidiaries shall not incur any Indebtedness in reliance on Section 7.02(a) or Section 7.02(b)(13). 
    (iii)    The Borrower and its Restricted Subsidiaries shall not create, incur, assume or suffer to exist any Lien (other than any Lien outstanding on the Amendment No. 5 Effective Date) in reliance on Section 7.01(35).  
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    (iv)    The Borrower and its Restricted Subsidiaries shall not make any Restricted Payment in reliance on Section 7.05(a) or Section 7.05(g).
    (v)    The definition of “Subordinated Indebtedness” shall be deemed to include (x) the Senior Notes and (y) the Borrower’s 6.500% notes due May 1, 2027 (the “Secured Notes”) for all purposes under Section 7.05. 
    (vi)    The Borrower and its Restricted Subsidiaries shall not purchase, redeem, defease, repurchase or otherwise acquire or retire the Senior Notes or the Secured Notes by exchange for, or out of the proceeds of the substantially concurrent issuance of new Indebtedness of the Borrower, in reliance on Section 7.05(d) unless such new Indebtedness is unsecured or secured by Liens on the Collateral that are junior in priority to the Obligations. 
    (vii)    The Borrower and its Restricted Subsidiaries shall not make additional Investments in Unrestricted Subsidiaries, Non-Guarantor Subsidiaries (or Persons who become Non-Guarantor Subsidiaries as a result of such Investments), joint ventures or Affiliates (other than any Affiliate that is a Loan Party) having an aggregate fair market value for all such Investments made during the Covenant Relief Period (as determined in good faith by the Borrower) in excess of $75.0 million.  
    (viii)    The Borrower and its Restricted Subsidiaries shall not enter into any Sale and Lease-Back Transaction if the Attributable Indebtedness relating to such Sale and Lease-Back Transaction, together with the Attributable Indebtedness relating to all other Sale and Lease-Back Transactions consummated during the Covenant Relief Period, would exceed $50.0 million.  
The provisions of this Section 7.09 are for the benefit of the Revolving Credit Lenders only and the Required Class Lenders for the Revolving Credit Facility may amend, waive or otherwise modify this Section 7.09 or the defined terms used for purposes of this Section 7.09 (but solely for such purposes) or waive any Default resulting from a breach of this Section 7.09 without the consent of any Lenders other than such Required Class Lenders in accordance with the provisions of clause (v) of the second proviso of Section 10.01.”
SECTION 2.  Amendment Fee.  In consideration of the Revolving Credit Lenders’ agreements set forth herein, the Borrower agrees to pay to the Administrative Agent, for the account of each Consenting Lender (as defined below), an amendment fee (the “Amendment Fee”) in an amount equal to 12.5 basis points (0.125%) of the outstanding principal amount of such Revolving Credit Lender’s Revolving Commitments as of the Amendment No. 5 Effective Date.  The Amendment Fee shall be fully-earned, payable and nonrefundable on the Amendment No. 5 Effective Date.  As used herein, “Consenting Lender” means a Revolving Credit Lender that executes and delivers to the Administrative Agent a signature page to this Amendment on or 
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prior to 5:00 p.m. New York City time on July 16, 2020 (or, as to any Revolving Credit Lender, such later time or date as may be agreed by the Administrative Agent and the Borrower) and that does not revoke or otherwise withdraw such signature page prior to the effectiveness of this Amendment on the Amendment No. 5 Effective Date.
SECTION 3.  Effectiveness.  This Amendment shall become effective on the date (such date and time of effectiveness, the “Amendment No. 5 Effective Date”) that each of the conditions precedent set forth below shall have been satisfied:
4.the Administrative Agent shall have received executed counterparts hereof from each of the Loan Parties and Lenders constituting the Required Class Lenders for the Revolving Credit Facility; 
5.the representations and warranties of each of the Loan Parties contained in Section 4 hereof shall be true and correct on and as of the Amendment No. 5 Effective Date; 
6.to the extent invoiced prior to the Amendment No. 5 Effective Date, the Borrower shall have paid, or concurrently herewith shall pay, all reasonable and documented out-of-pocket expenses of the Administrative Agent in connection with this Amendment (including the reasonable fees and expenses of Cahill Gordon & Reindel llp, counsel to the Administrative Agent); and
7.the Administrative Agent shall have received the Amendment Fee on behalf of the Consenting Lenders.
SECTION 4.  Representations and Warranties.  In order to induce the Revolving Credit Lenders and the Administrative Agent to enter into this Amendment, each of the Loan Parties represents and warrants to each of the Revolving Credit Lenders and the Administrative Agent that, as of the Amendment No. 5 Effective Date, both before and after giving effect to the transactions contemplated by this Amendment:
(a)    no Default or Event of Default exists; and
(b)    the representations and warranties of each Loan Party contained in Article V of the Credit Agreement (other than, for the avoidance of doubt, Section 5.17(b)) or any other Loan Document are true and correct in all material respects on and as of such date (except, to the extent that such representations and warranties specifically refer to an earlier date, they are true and correct as of such earlier date); provided, that, to the extent that such representations and warranties are qualified by materiality, material adverse effect or similar language, they are true and correct in all respects.
SECTION 5.  Reference to and Effect on the Loan Documents.  On and after the Amendment No. 5 Effective Date, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof” or words of like import referring to the Credit Agreement, and each reference in the Notes and each of the other Loan Documents to “the Credit Agreement,” “thereunder,” “thereof” or words of like import referring to the Credit Agreement, shall mean and 
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be a reference to the Credit Agreement, as amended by this Amendment. This Amendment constitutes a Loan Document. The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of (or otherwise affect) any right, power or remedy of any Lender or any Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.  Each of the Loan Parties hereby consents to the Amendment and reaffirms its obligations under the Loan Documents to which it is party and its prior grant and the validity of the Liens granted by it pursuant to the Collateral Documents, with all such Liens continuing in full force and effect after giving effect to this Amendment.  This Amendment shall not constitute a novation of the Credit Agreement or any other Loan Document.
SECTION 6.  Applicable Law; Waiver of Jury Trial.
1.THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ANY CONFLICTS PROVISIONS THAT WOULD RESULT IN THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.
2.EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AMENDMENT (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
SECTION 7.  Headings.  The Section headings used herein are for convenience of reference only, are not part of this Amendment and are not to affect the construction of, or to be taken into consideration in interpreting, this Amendment.
SECTION 8.  Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of which when so executed and delivered shall be deemed to be an original, but all of which when taken together shall constitute a single instrument. The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to this Amendment shall be deemed to include Electronic Signatures (as defined below), deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be. “Electronic Signatures” means any electronic symbol or process attached to, or associated with, any contract or other record and adopted by a person with the intent to sign, authenticate or accept such contract or record.  

[Signature pages to follow]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective authorized officers as of the day and year first written above.
ENTERCOM MEDIA CORP., as the Borrower

By:    /s/ Richard J. Schmaeling_________________Name: Richard J. Schmaeling    Title: Executive Vice President – Chief Financial Officer    

[Signature Page to Amendment No. 5]

GUARANTORS:

ENTERCOM, INC.
ENTERCOM OPERATIONS, INC. 
ENTERCOM MIAMI, LLC 
ENTERCOM ARIZONA, LLC 
ENTERCOM CALIFORNIA, LLC 
ENTERCOM COLORADO, LLC 
ENTERCOM CONNECTICUT, LLC 
ENTERCOM FLORIDA, LLC 
ENTERCOM GEORGIA, LLC 
ENTERCOM ILLINOIS, LLC 
ENTERCOM INDIANA, LLC 
ENTERCOM KANSAS, LLC 
ENTERCOM LOUISIANA, LLC 
ENTERCOM MARYLAND, LLC 
ENTERCOM MASSACHUSETTS, LLC
ENTERCOM MICHIGAN, LLC 
ENTERCOM MINNESOTA, LLC 
ENTERCOM MISSOURI, LLC 
ENTERCOM NEVADA, LLC 
ENTERCOM NEW YORK, LLC 
ENTERCOM NORTH CAROLINA, LLC
ENTERCOM OHIO, LLC 
ENTERCOM OREGON, LLC 
ENTERCOM PENNSYLVANIA, LLC 
ENTERCOM RHODE ISLAND, LLC 
ENTERCOM SOUTH CAROLINA, LLC 
ENTERCOM TENNESSEE, LLC 
ENTERCOM TEXAS, LLC 
ENTERCOM VIRGINIA, LLC 
ENTERCOM WASHINGTON DC, LLC 
ENTERCOM WASHINGTON, LLC 
ENTERCOM WISCONSIN, LLC 
ENTERCOM LICENSE, LLC
ENTERCOM PROPERTIES, LLC 
ENTERCOM RADIO TOWER, LLC 
ENTERCOM SPORTS RADIO, LLC 
EVENTFUL, LLC
INFINITY BROADCASTING LLC

By:    /s/Richard J. Schmaeling ___________________Name: Richard J. Schmaeling    Title: Executive Vice President – Chief Financial Officer
[Signature Page to Amendment No. 5]

    

JPMORGAN CHASE BANK, N.A., as Administrative Agent 
By:    /s/ Peter B. Thauer        
    Name: Peter B. Thauer
    Title: Managing Director
JPMORGAN CHASE BANK, N.A., as a Revolving Credit Lender 
By:    /s/ Peter B. Thauer        
    Name: Peter B. Thauer
    Title: Managing Director
BANK OF AMERICA, N.A., as a Revolving Credit Lender 
By:    /s/ Jonathan Tristan        
    Name: Jonathan Tristan
    Title: Vice President
Citibank, N.A., as a Revolving Credit Lender 
By:    /S/ Robert F. Parr        
    Name: Robert F. Parr
    Title: Vice President and Managing Director
CREDIT SUISSE AG, CAYMAN ISLAND BRANCH, as a Revolving Credit Lender 
By:    /s/ Vipul Dhadda        
    Name: Vipul Dhadda
    Title: Authorized Signatory
[Signature Page to Amendment No. 5]

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as a Revolving Credit Lender 
By:    /s/ Bastien Dayer        
    Name: Bastien Dayer
    Title: Authorized Signatory
DEUTSCHE BANK AG NEW YORK BRANCH, as a Revolving Credit Lender 
By:    /s/ Michael Strobel        
    Name: Michael Strobel
    Title: Vice President
DEUTSCHE BANK AG NEW YORK BRANCH, as a Revolving Credit Lender 
By:    /s/ Philip Tancorra        
    Name: Philip Tancorra
    Title: Vice President
Goldman Sachs Bank USA, as a Revolving Credit Lender 
By:    /s/ Jamie Minieri        
    Name: Jamie Minieri
    Title: Authorized Signatory
Morgan Stanley Senior Funding, Inc.,, as a Revolving Credit Lender 
By:    Jake Dowden        
    Name: Jake Dowden
    Title: Vice President
ROYAL BANK OF CANADA, as a Revolving Credit Lender 
[Signature Page to Amendment No. 5]

By:    /s/ Alfonse Simone        
    Name: Alfonse Simone
    Title: Authorized Signatory
The Toronto-Dominion Bank, New York Branch, as a Revolving Credit Lender 
By:    /s/ Brian MacFarlane        
    Name: Brian MacFarlane
    Title: Authorized Signatory
[Signature Page to Amendment No. 5]Exhibit 10.1

 

REAL
ESTATE

 

PURCHASE
AND SALE AGREEMENT

between

Pacific
Ethanol Magic Valley, LLC, a Delaware

limited
liability company

(“Seller”),

and

Liberty
Basin, LLC, an Idaho limited liability company, or its successors, nominees or assigns

 

(“Purchaser”)

 

Dated:
November 6, 2020

     

     

    

 

Table
of Contents

  

	 	Page
	 	 
	1.   	Purchase and Sale	1
	 	1.1   	Property	1
	 	1.2   	Possession	1
	 	 	 	 
	2.   	Purchase Price	2
	 	 	 
	3.   	Follow Up Due Diligence.	2
	 	3.1   	Follow Up Due Diligence Period	2
	 	3.2   	Entry Upon Property	2
	 	3.3   	Title Insurance Commitment	2
	 	3.4   	Due Diligence Objections	3
	 	 	 	 
	4.   	Survey and Lot Split.	4
	 	 	 
	5.   	Seller’s Representations and Warranties	4
	 	5.1   	Organization	4
	 	5.2   	Authority	4
	 	5.3   	Authorization	4
	 	5.4   	No Violation	4
	 	5.5   	No Consent	4
	 	5.6   	Title	4
	 	5.7   	Litigation	4
	 	5.8   	Broker Fees	5
	 	5.9   	Hazardous Material	5
	 	5.10   	Liens	5
	 	5.11   	Condemnation	5
	 	5.12   	Foreign Person	5
	 	5.13   	Other Agreements	5
	 	5.14   	Pending Actions	6
	 	5.15   	Full Disclosure	6
	 	5.16   	Improvements and Personal Property	6
	 	 	 	 
	6.   	Purchaser’s Representations and Warranties	6
	 	6.1   	Authority	6
	 	6.2   	Authorization	6
	 	6.3   	No Violation	6
	 	6.4   	No Consent	6
	 	 	 	 
	7.   	Conditions to Close	7
	 	7.1   	Conditions to Purchaser’s Obligations	7
	 	7.2   	Waiver of Conditions By Purchaser	8
	 	7.3   	Conditions to Seller’s Obligations	8
	 	7.4   	Waiver of Conditions By Seller	9

 

    i

     

    

 

	8.   	Closing	9
	 	8.1   	Seller’s Closing Documents	9
	 	8.2   	Purchaser’s Closing Documents	10
	 	8.3   	Prorations	10
	 	8.4   	Closing Costs	10
	 	 	 	 
	9.   	Seller’s Obligations Pending Closing	11
	 	 	 
	10.   	Default	11
	 	10.1   	Seller’s Default	
	 	10.2   	Purchaser’s Default	
	 	 	 	 
	11.   	Notices	11
	 	 	 
	12.   	General Provisions	12
	 	12.1   	Entire Agreement	12
	 	12.2  	 Modification in Writing	12
	 	12.3   	Headings	12
	 	12.4   	Interpretation	12
	 	12.5  	 Dates of Performance	13
	 	12.6   	Successors and Assigns	13
	 	12.7   	Further Assurances	13
	 	12.8   	Counterparts	13
	 	12.9   	Governing Law	13
	 	12.10   	Attorneys’ Fees	13
	 	12.11   	Tax-Free Exchange	13
	 	12.12   	Survival / No Merger	13
	 	12.13   	Waiver	13
	 	12.14   	Severability	13
	 	12.15   	Confidentiality.	13
	 	12.16   	Time is of Essence	13
	 	12.17   	Time for Acceptance	13
	 	12.18   	Risk of Loss	13

 

    ii

     

    

 

PURCHASE
AND SALE AGREEMENT

 

This
Purchase and Sale Agreement (“Agreement”) is made as of November 6, 2020, by and between Pacific Ethanol Magic Valley,
LLC, a Delaware limited liability company (“Seller”), and Liberty Basin, LLC, an Idaho limited liability company,
or its successor, nominees or assigns (“Purchaser”).

 

The
parties agree as follows:

 

1. Purchase
and Sale.

 

1.1
Property. Subject to the terms and conditions set forth in this Agreement, Seller shall sell to Purchaser, and Purchaser
shall purchase from Seller, the following real and personal property:

 

(a) That
certain real property located in Cassia County, Idaho as more particularly described in Exhibit A attached hereto and incorporated
herein (the “Land”). The Land is depicted as “Parcel A” in that certain record of survey attached hereto
and incorporated herein as Exhibit B;

 

(b) All
buildings, fixtures and other improvements located on the Land including without limitation the Wet Cake Barn, Scale House and
Parts Shed (the “Improvements”) and, together with the Land;

 

(c) The
following personal property appurtenant to the Land and Improvements (the “Personal Property”):

 

1. Rail
spur, rail loop and related rail operation equipment

 

2. Grain
storage bins and related loading and offloading facilities

 

3. Hammer
mills (2)

 

4. Elevator
legs, conveyers and equipment tied to the grain storage bins

 

5. Miscellaneous
equipment as more particularly listed in that certain inventory attached hereto and incorporated herein as Exhibit C;

 

(d) All
easements, rights-of-way and privileges appertaining to or otherwise benefitting or used in connection with the Land, the Improvements
and the Personal Property are sometimes collectively referred to herein as the “Property”.

 

1.2
Possession. Possession of the Property shall be delivered by Seller to Purchaser as of the date on which the deed
for the Property is recorded (“Closing”).

 

    	REAL ESTATE PURCHASE AND SALE AGREEMENT – PEMV MAGIC vALLEY PARCEL A –1

     

    

 

2.
Purchase Price. The Purchase Price
for the Property (“Purchase Price”) shall be Ten Million and 00/100 Dollars ($10,000,000.00), which Purchaser
shall deliver to Seller in immediately available funds at the Closing.

 

3. Follow
Up Due Diligence.

 

3.1 Follow
Up Due Diligence Period. Purchaser acknowledges having had ninety days to conduct its review and inspection of the
Property. As a follow up to this review period, and as a necessity to obtain confirming documentation and to otherwise
confirm certain facts, representations and information related to the Property, Purchaser shall have the period of twenty
(20) days from the date Purchaser receives a fully executed copy (or original) of this Agreement from Seller
(“Follow Up Due Diligence Period”), to conduct a follow up due diligence review to make a final
determination, in Purchaser’s sole and absolute discretion, whether the Property is acceptable to Purchaser.

 

3.2 Entry
Upon Property and Due Diligence Documents. During the Follow Up Due Diligence Period, Purchaser and its employees or
agents may enter upon the Property, at Purchaser’s sole cost and expense, for the purpose of conducting such physical
inspections as Purchaser may elect to make or obtain. Other than conditions existing on the Property and
Seller’s acts or omissions, Purchaser shall indemnify and hold Seller harmless from and against any claim, cause of
action, lawsuit, damage, liability, loss, cost or expense (including without limitation, attorneys’ fees) arising out
of any such entry by Purchaser or its agents or out of any such inspections or tests conducted by Purchaser or its employees
or agents. During the Follow Up Due Diligence Period, Seller shall provide to Purchaser any documentation in
Purchaser’s possession (or which Purchaser may reasonably and efficiently obtain) reasonably requested by Purchaser
(such as inspection reports, etc.) (the “Due Diligence Documents”) to facilitate Purchaser’s final
review of the Property.

 

3.3
Title Insurance Commitment. Seller has delivered to Purchaser a commitment from Title One Corporation (PO Box 177,
211 W. 13th Street, Burley, Idaho 83318, Attn: Larry Roberts, Phone: (208) 878-3524 Email: lroberts@titleonecorp.com) (“Title
Insurer”) for standard coverage title insurance (“Commitment”) covering the Property, together with
legible copies of all instruments and other documents relating to any listed exceptions, all existing surveys of the Property,
and a new or updated survey of the Property (“Survey”).

 

(a) Any
matters disclosed by the Title Commitment or Survey which are approved, deemed approved, or waived by Purchaser pursuant to the
terms of this Agreement shall constitute “Permitted Exceptions.”

 

(b) If
any exceptions appear on the Title Commitment, or any encroachments or other title conditions are shown on the Survey, that are
not acceptable to Purchaser, Purchaser will provide written notice to Seller and Title Company of such unacceptable matters (“Title
Objection Matters”) not later than ten (10) days after the date of this Agreement (“Title Review Period”). In
addition, Purchaser will have the right to notify Seller and Title Company of any additional Title Objection Matters which first
appear on any updates to the Title Commitment or Survey issued after the expiration of the Title Review Period, so long as any
such additional objection is made by Purchaser within ten (10) days after Purchaser receives the updated Title Commitment or Survey
adding such new matter (but, in any event, prior to the Closing Date). Unless timely objected to in writing by Purchaser as Title
Objection Matters as provided above, all matters disclosed by the Title Commitment or Survey (or any updates thereto) shall be
deemed to constitute Permitted Exceptions.

 

    	REAL ESTATE PURCHASE AND SALE AGREEMENT – PEMV MAGIC vALLEY PARCEL A –2

     

    

 

(c) Seller
may elect (but is not obligated) to cure or attempt to cure any Title Objection Matters and Seller will notify Purchaser in writing
prior to the Closing. If neither Seller nor Title Company elect within such period to cure the Title Objection Matters, then Purchaser
will elect to either (i) terminate this Agreement and thereafter the Parties will have no further rights or obligations under
this Agreement, or (ii) waive any uncured Title Objection Matters and proceed to Closing. Any Title Objection Matters so waived
(or deemed waived) by Purchaser shall be deemed to constitute Permitted Exceptions.

 

(d) Purchaser’s
obligation to purchase the Property is conditioned upon Title Company being committed at Closing to issue an ALTA standard coverage
owner’s policy of title insurance with respect to the Property in the amount of the Purchase Price, subject to the Permitted
Exceptions determined pursuant to this Section 3.2 (the “Title Policy”), upon payment of the applicable premium therefor
and the satisfaction by Seller of the customary conditions and requirements thereto.

 

3.4
Due Diligence Objections. On or before the expiration of the Follow Up Due Diligence Period, Purchaser shall notify Seller
in writing of any matter arising from Purchaser’s review of the Preliminary Commitment, Survey or of any matter arising
from Purchaser’s inspection and investigation of the Property that is disapproved by Purchaser in its sole discretion, which
notice shall specifically describe the matter or item disapproved and the reason for its disapproval. If Purchaser notifies
Seller on or before the last day of the Follow Up Due Diligence Period that Purchaser disapproves any matter relating to the Property,
Purchaser shall have the right, simultaneously with the giving of such notice, to either (i) request Seller to cure or remedy
any matter disapproved by Purchaser within five (5) days after Seller’s receipt of such notice, in which event the Follow
Up Due Diligence Period shall be automatically extended to the end of such 5-day period, or (ii) terminate this Agreement,
and thereupon all further rights and obligations of the parties hereunder shall cease and terminate without further liability
of either party to the other, except as otherwise expressly provided in this Agreement. Notwithstanding anything in this Agreement
to the contrary, Seller shall have no obligation to cure or remedy any matter disapproved by Purchaser. If Seller does not cure
or remedy any matter requested by Purchaser, Purchaser shall have three (3) business days after the end of the five (5) day cure
period (and the Follow Up Due Diligence Period shall be further extended for such three (3) days) to either (a) accept upon
written notice the matter(s) without cure or remedy and proceed to Closing, or (b) notify Seller in writing that Purchaser
elects to terminate this Agreement. Purchaser’s failure to notify Seller in writing within the Follow Up Due Diligence Period
that Purchaser is satisfied with the property thereof shall be deemed to be Purchaser’s dissatisfaction and disapproval
thereof, and thereupon all further rights and obligations of the parties hereunder shall cease and terminate without further liability
of either party to the other, except as otherwise expressly provided in this Agreement.

 

    	REAL ESTATE PURCHASE AND SALE AGREEMENT – PEMV MAGIC vALLEY PARCEL A –3

     

    

 

4. Survey
and Lot Split. Seller has procured the Survey from Accurate Surveying & Mapping, 1602 W. Hays St., Boise, Idaho 83702,
a surveyor licensed in the State of Idaho, containing the description of Parcel A and location of all Improvements and encroachments
thereon. A copy of the Survey has been provided to Purchaser and a copy is attached hereto as Exhibit B. Seller shall provide
a copy of the final Survey, and any amendments or modifications thereto, to Purchaser and the Title Company. The cost of the Survey
shall be paid for by the Seller. The Survey depicts as “Parcel A” the Property being transferred pursuant to this
Agreement and as “Parcel B” the property being retained by Seller on which Seller owns and operates an ethanol plant
(the “Ethanol Plant”). Seller is in the process of obtaining approval from the City of Burley of a lot split reflecting
the boundary between Parcel A and Parcel B, and said lot split approval shall be a condition precedent to Purchaser’s obligation
to purchase the Property. Purchaser has had the opportunity to obtain and confirm any and all entitlements which Purchaser deems
necessary to operate its intended business on Parcel A.

 

5.
Seller’s Representations and Warranties.
As of the Effective Date and as of Closing, Seller represents and warrants to Purchaser as follows:

 

5.1
Organization. Seller is a Delaware limited liability company duly organized and validly existing under the laws of
the state of Delaware and duly qualified to do business in Idaho.

 

5.2
Authority. Seller has full power, authority and legal right to execute and deliver this Agreement and to perform
its obligations under this Agreement.

 

5.3
Authorization. Seller has authorized the execution and delivery of this Agreement and the performance of its obligations
hereunder by all necessary action under Idaho law.

 

5.4
No Violation. To the best of Seller’s knowledge, Seller’s performance of its obligations under this Agreement
will not violate any provision of any agreement or judicial order to which Seller is a party or to which the Property is subject.

 

5.5
No Consent. Except for the matters discussed in Section 4 above and Section 5.7 below, no consent, approval, authorization,
registration, qualification, designation, declaration, or filing with any governmental authority is required in connection with
the execution and delivery of this Agreement by Seller.

 

5.6
Title. To Seller’s knowledge, Seller owns and possesses all right, title, and interest in and to the Property
free and clear of all covenants, conditions, easements, liens, and encumbrances, other than those of record identified in the
Commitment.

 

5.7Temporary
Operating Permit. Notwithstanding Seller representations in Subsections 5.4 and 5.5 above, Purchaser acknowledges the Property
will be temporarily operating under the terms and conditions of Seller’s Idaho Department Environmental Quality (“IDEQ”)
air permit (“Seller’s Permit”) and the activity exemption filed with the IDEQ on September 9, 2020, until such
time that the IDEQ issues Purchaser its own separate air permit.  Purchaser has a duty to comply with all terms and conditions
of Seller’s Permit including but not limited to: the types of grain stored or handled, throughput limits, permitted activities,
permitted equipment. Purchaser will not violate any of the “Rules for the Control of Air Pollution in Idaho” while
operating under the Seller’s permit.

 

    	REAL ESTATE PURCHASE AND SALE AGREEMENT – PEMV MAGIC vALLEY PARCEL A –4

     

    

 

5.8
Litigation. There are no equitable, legal, or administrative suit, action, arbitration, or other proceedings pending
or to Seller’s best knowledge threatened against or affecting the Property.

 

5.9
Broker Fees. Except as disclosed herewith in writing to Purchaser, the Seller is not obligated to pay any fee or
commission to any broker, finder, or intermediary for or on account of the transaction contemplated by this Agreement.

 

5.10
Hazardous Material. Except as disclosed on Schedule 5.10 attached hereto or discernable from environmental reports
and other due diligence materials provided by Seller to Purchaser, to the Seller’s actual knowledge, neither Seller nor
any previous owner of the Property or any other person or entity has ever used, generated, processed, stored, disposed of, released,
or discharged any Hazardous Substance in violation of any applicable local, state or federal environmental law on, under or about
the Property or transported it to or from the Property, nor to the Seller’s knowledge, has any person, entity, or governmental
agency ever alleged that any such activities have occurred. Seller has not received notification of any kind from any agency alleging
or suggesting that the Property is in violation of any applicable local, state, or federal environmental law. To the best of Seller’s
knowledge, no underground or above ground storage tanks are or have been located on the Property. For purposes of this Agreement,
“Hazardous Substance” means any substance, material or waste which is (a) defined as a hazardous waste, hazardous
material, hazardous substance, extremely hazardous waste, restricted hazardous waste or similar term under any provision of federal,
state or local law; including without limitation (b) petroleum or petroleum based product; (c) asbestos or asbestos
based product; (d) polychlorinated biphenyls; (e) radioactive materials; (f) designated as a hazardous substance
pursuant to the Clean Water Act; (g) material defined as a hazardous substance pursuant to the Resource Conservation Recovery
Act; (h) material defined as a hazardous substance pursuant to the Comprehensive Environmental Response, Compensation, and
Liability Act; or (i) any material or substance determined by any federal, state or local governmental authority to be capable
of posing a risk of injury to health, safety or property, including underground storage tanks.

 

5.11
Liens. All persons and entities supplying labor, services, materials and equipment to the Property have been paid
and there are no claims or liens.

 

5.12
Condemnation. There are no condemnation proceedings pending, or to Seller’s knowledge, contemplated
against the Property, or any part thereof, and the Seller has received no notice, oral or written, of the intent or desire of
any public authority or public utility to take or use the Property or any part thereof.

 

5.13
Foreign Person. Seller is not a foreign person or entity pursuant to the Foreign Investment in Real Property Tax
Act or the Tax Reform Act of 1984.

 

    	REAL ESTATE PURCHASE AND SALE AGREEMENT – PEMV MAGIC vALLEY PARCEL A –5

     

    

 

5.14
Other Agreements. Except as disclosed on Schedule 5.14 attached hereto, there are no service, license, or
concession agreements or other contracts relating to the Property or employees of Seller, or of any affiliate of Seller, currently
employed in the operation or maintenance of the Property, other than those included in the Due Diligence Documents. All employment
or maintenance contracts are terminable at will and shall be terminated by Seller at Closing, unless Purchaser gives contrary
written instructions to Seller. No collective bargaining agreements between Seller and any labor organization apply to the operation
or management of the Property.

 

5.15
Pending Actions. There are no proposed or pending changes in zoning or roadway, water, sewer, or other construction affecting
any portion of the Property.

 

6.
Purchaser’s Representations and Warranties.
As of the Effective Date and as of Closing, Purchaser represents and warrants to Seller as follows:

 

6.1
Authority. Purchaser has full power, authority and legal right to execute and deliver this Agreement and to perform
its obligations under this Agreement.

 

6.2
Authorization. Purchaser has authorized the execution and delivery of this Agreement and the performance of its obligations
hereunder by all necessary action under Idaho law.

 

6.3
No Violation. To the best of Purchaser’s knowledge, Purchaser’s performance of its obligations under
this Agreement will not violate any provision of any agreement or judicial order to which Purchaser is a party.

 

6.4
No Consent. Except for matters discussed in Section 5.7, no consent, approval, authorization, registration, qualification,
designation, declaration, or filing with any governmental authority is required in connection with the execution and delivery
of this Agreement by Purchaser.

 

6.5
Investigation of Property. Purchaser has been permitted access to the Property and will have actually inspected the
Property prior to Closing. Purchaser’s consummation of the transaction contemplated in this Agreement is based upon such
inspection and not on any representations or warranties of Seller, except those expressly set forth in this Agreement. Purchaser
agrees to accept the Property in an “AS IS, WHERE IS” condition, subject only to the express representations and warranties
of Seller set forth in this Agreement and any repairs which Seller agrees in writing to perform in response to Purchaser’s
due diligence objections made under Section 3.4 of this Agreement (“Seller’s Objection Response”). Purchaser
hereby acknowledges that neither Seller nor any person acting on behalf of Seller has made any representation, warranty, guaranty
or promise concerning the Property, whether oral or written, except as set forth in this Agreement or Seller’s Objection
Response.

 

    	REAL ESTATE PURCHASE AND SALE AGREEMENT – PEMV MAGIC vALLEY PARCEL A –6

     

    

 

7. Conditions
to Close.

 

7.1
Conditions to Purchaser’s Obligations. The obligation of Purchaser to purchase the Property is subject to the
satisfaction of each of the following conditions:

 

(a) Seller
shall have obtained all necessary approvals from the City of Burley or any other applicable governing or regulatory body for a
lot split as more particularly described in Section 4 of the Agreement and shall obtain or confirm any and all entitlements necessary
for Purchaser to operate its intended business on the Property.

 

(b) Purchaser
shall have verified to Purchaser’s satisfaction that Burley Irrigation District’s water rights necessary to operate
Purchaser’s business on the Property are appurtenant to the Property. Purchaser shall notify Burley Irrigation District
after Closing that Parcel A has been conveyed to Purchaser and Parcel B has been retained by Seller. Purchaser and Seller will
be responsible to pay their respective water assessments to Burley Irrigation District.

 

(c) Seller
shall have notified the tenant farmer (as more particularly described in Schedule 5.14) of the sale of the Property, and obtained
a written acknowledgment (“Farmer Acknowledgement”) from the tenant farmer that the arrangement is terminable at any
time upon notice from the then owner of the Property with confirmation of no objections from said tenant farmer.

 

(d) The
parties shall have entered into an agreement for the maintenance of the connected or shared wall(s) of those certain improvements
abutting each other along the boundary line between the Property (“Parcel A”) being transferred to Purchaser and the
property being retained by Seller (“Parcel B”) (“Shared Wall Agreement”).

 

(e) The
parties shall have entered into an agreement for the division and/or sharing of utilities and costs of utilities between Parcel
A and Parcel B (“Utilities Agreement”).

 

(f) The
parties shall have entered into an easement, cross-access and parking agreement with mutually agreed terms, including without
limitation cross-indemnification for certain liabilities including environmental liabilities, to facilitate Purchaser’s
contemplated use and management of Parcel A and Seller’s continued use of the rail loop on Parcel A and Seller’s use
and management of Parcel B (“Cross Access Agreement”).

 

(g) Purchaser
shall have entered into an agreement with COFCO International Grains US LLC (“COFCO”) pursuant to which COFCO will
store corn in the Grain Storage Facilities (“Stored Grain”) and COFCO will supply corn to Purchaser from the Stored
Grain.

 

(h) Seller
shall have entered into an agreement with COFCO providing for COFCO to supply corn to Seller from the Stored Grain.

 

(i) The
Parties shall have entered into agreements providing for the processing of corn and the delivery of ground corn to Seller’s
Ethanol Plant; for the operation and maintenance of the rail spur and loop, the grain storage bins, and hammer mills; for the
removal and sale of wet cake produced at Seller’s Ethanol Plant (the “Business Agreements”).

 

    	REAL ESTATE PURCHASE AND SALE AGREEMENT – PEMV MAGIC vALLEY PARCEL A –7

     

    

 

(j) The
parties shall have entered into a right of first offer agreement (the “ROFO Agreement”) pursuant to which Purchaser
agrees to offer Parcel A to Seller, and Seller agrees to offer Parcel B to Purchaser, in the event either Party desires to sell
its Parcel, and each Party agrees not to sell its Parcel to a third party unless such Party has first complied with the requirements
of the ROFO Agreement.

 

(k) The
representations and warranties of Seller set forth in this Agreement shall be true, complete, and accurate as of the Effective
Date and as of the Closing.

 

(l) Seller
shall have performed all requirements of the Title Company as set forth in the Commitment, and all obligations, covenants, and
agreements to be performed by Seller prior to Closing as set forth in this Agreement.

 

(m) The
Title Insurer shall be unconditionally prepared to issue to Purchaser or its nominee, at Closing, an ALTA Owner’s Standard
Coverage Title Policy (“Title Policy”) in the full amount of the Purchase Price, insuring fee simple title
to the Property to be vested in Purchaser or its nominee, together with endorsements requested by Purchaser, subject only to exceptions
in the final version of the Commitment issued prior to Closing.

 

7.2
Waiver of Conditions by Purchaser. Purchaser may waive, as a condition precedent to Closing, compliance with any
or all of the conditions set forth in Section 7.1 above, by written notice to Seller.

 

7.3
Conditions to Seller’s Obligations. The obligation of Seller to sell the Property is subject to the satisfaction
of each of the following conditions:

 

(a) The
representations and warranties of Purchaser set forth in this Agreement shall be true, complete, and accurate as of the Effective
Date and as of the Closing.

 

(b) This
Agreement shall have been authorized and approved by the Board of Directors of Pacific Ethanol, Inc.

 

(c) Seller
shall have entered into an agreement with COFCO providing for COFCO to supply corn to Seller from the Stored Grain.

 

(d) The
parties shall have entered into the Shared Wall Agreement, the Utilities Agreement, the Cross Access Agreement, the Business Agreements
and the ROFO Agreement described in Section 7.1.

 

(e) Purchaser
shall not be in material default of any of its obligations, covenants, and agreements as set forth in this Agreement.

 

    	REAL ESTATE PURCHASE AND SALE AGREEMENT – PEMV MAGIC vALLEY PARCEL A –8

     

    

 

7.4
Waiver of Conditions By Seller. Seller may waive, as a condition precedent to Closing, compliance with any or all
of the conditions set forth in Section 7.3 above, by written notice to Purchaser.

 

8.
Closing. Subject to Purchaser’s
approval of the Property and satisfaction of the conditions precedent, and except as otherwise provided in this Agreement, Closing
shall occur in escrow in the office of Escrow Holder upon satisfaction of the conditions precedent, but in no event later than
November 30, 2020 unless mutually agreed by the parties in writing. Closing shall be deemed to have occurred at such time as the
Escrow Holder is in receipt of all Closing Documents (as defined in this Section 8) and is able to comply with Seller’s
and Purchaser’s closing instructions.

 

8.1
Seller’s Closing Documents. On or before Closing, Seller shall deposit into escrow the following items:

 

(a) A
duly executed, acknowledged and recordable Warranty Deed conveying fee simple title in the Property to Purchaser.

 

(b) A
duly executed and acknowledged Farmer Acknowledgement as referenced in Section 7.1(c) of this Agreement.

 

(c) A
duly executed and acknowledged Shared Wall Agreement as referenced in Section 7.1(d) of this Agreement.

 

(d) A
duly executed and acknowledged Utilities Agreement as referenced in Section 7.1(e) of this Agreement.

 

(e) A
duly executed and acknowledged Cross Access Agreement as referenced in Section 7.1(f) of this Agreement.

 

(f) Duly
executed and acknowledged Business Agreements as referenced in Section 7.1(i) of this Agreement.

 

(g) A
duly executed and acknowledged ROFO Agreement as referenced in Section 7.1(j) of this Agreement.

 

(h) An
affidavit executed by the Seller that complies with Internal Revenue Code Section 1445(b)(2) or the corresponding provision of
any future law and states that the Seller is not a foreign person within the meaning of Internal Revenue Code Section 1445(f)(3).

 

(i) Such
other documents or instruments as are reasonably required by the Escrow Holder or otherwise required to close the escrow and consummate
the purchase and sale of the Property in accordance with the terms of this Agreement.

 

    	REAL ESTATE PURCHASE AND SALE AGREEMENT – PEMV MAGIC vALLEY PARCEL A –9

     

    

 

8.2
Purchaser’s Closing Documents. On or before Closing, Purchaser shall deposit into escrow the following items:

 

(a) Immediately
available funds necessary to close this transaction.

 

(b) A
duly executed and acknowledged Shared Wall Agreement as referenced in Section 7.1(d) of this Agreement.

 

(c) A
duly executed and acknowledged Utilities Agreement as referenced in Section 7.1(e) of this Agreement.

 

(d) A
duly executed and acknowledged Cross Access Agreement as referenced in Section 7.1(f) of this Agreement.

 

(e) Duly
executed and acknowledged Business Agreements as referenced in Section 7.1(i) of this Agreement.

 

(f) A
duly executed and acknowledged ROFO Agreement as referenced in Section 7.1(j) of this Agreement.

 

(g) Such
other documents or instruments as are reasonably required by the Escrow Holder or otherwise required to close the escrow and consummate
the purchase and sale of the Property in accordance with the terms of this Agreement.

 

8.3
Prorations. The following items shall be prorated as of Closing:  (a) real property taxes, bonds, special
taxes, and assessments; (b) water, electricity, gas, and other utility payments or charges for which readings cannot be made
as of Closing by the utility companies; and (c) any other expenses normal to the operation and maintenance of the Property. 
Notwithstanding the lot split described in Section 4 above, Parcel A and the Personal Property are likely to be assessed for 2020
real property taxes and personal property taxes together with, and not separately from, Parcel B and the personal property located
thereon.  Seller and Purchaser desire to facilitate the efficient and timely payment of such real property taxes and personal
property taxes by agreeing herein to an equitable allocation of such taxes between Seller and Purchaser.  Seller and Purchase
have agreed and compromised that, if the Closing occurs on November 30, 2020, Purchaser’s prorated portion of the 2020 real
property taxes and personal property taxes allocable to Parcel A and the Personal Property is $6,254.13. If Closing occurs before
or after November 30, 2020, an adjustment shall be made to the amount of the foregoing Seller credit equal to $195.44 multiplied
by the number of days before or after November 30th that the Closing occurs. If the Closing occurs before November
30th, the adjustment amount shall be added to the Seller credit. If the Closing occurs after November 30th,
the adjustment amount shall be subtracted from the Seller credit. For example, if the Closing occurs on November 20th,
the Seller credit shall be $8,208.55 (i.e., $6,254.13 + $1,954.42 = $8,208.55). Having received such credit at Closing, Seller
shall be solely responsible for, and shall pay before delinquency, all of the 2020 real property taxes and personal property taxes
for Parcel A and the Personal Property.

 

8.4
Closing Costs. The Escrow Holder’s fees shall be paid equally by Purchaser and Seller. Seller shall pay (i) the
cost of a standard coverage Title Policy and any Survey, (ii) any excise, transfer, sales, use or similar taxes resulting
from the conveyance of any of the Property, (iii) recording fees for the sale documents, and (iv) Seller’s share
of the prorations set forth in Section 8.3. Purchaser shall pay (a) Purchaser’s loan costs, fees, mortgage taxes, and
recording fees and costs associated with any loan it may obtain, and, (b) any additional cost associated with receiving an extended
coverage Title Policy (the different in price between a standard coverage Title Policy and an extended coverage Title Policy),
if any, and (c) Purchaser’s share of the prorations set forth in Section 8.3. Each party shall pay for its own attorney’s
fees and costs and for any other professionals retained by the party. Any other closing costs shall be paid equally by Purchaser
and Seller.

 

    	REAL ESTATE PURCHASE AND SALE AGREEMENT – PEMV MAGIC vALLEY PARCEL A –10

     

    

 

9.
Seller’s Obligations Pending Closing.
From the date of this Agreement until the Closing, Seller shall continue to maintain the Property in good order.

 

10. Reserved.

 

11.
Notices. All notices, requests,
demands, and other communications (collectively, “Notices”) hereunder shall be in writing and given by (i) established
express delivery service that maintains delivery records, (ii) hand delivery, (iii) certified or registered mail, postage
prepaid, return receipt requested, to the Parties at the following addresses, or at such other address as the Parties may designate
by notice in the above manner, or (iv) Email with confirmation of receipt:

 

Seller:

 

Pacific
Ethanol Magic Valley, LLC

Attention: Paul Koehler

400 Capital Mall, Suite 2060

Sacramento, CA 95814

Telephone:(916) 403-2790

Email:paulk@pacificethanol.com

 

With
copies to:

 

Pacific
Ethanol, Inc.

Attention: General Counsel

400 Capital Mall, Suite 2060

Sacramento, CA 95814

Telephone:(916) 403-2130

Email: cwright@pacificethanol.com

 

and

 

Holden
Kidwell Hahn & Crapo, PLLC

Attention: Peter Christofferson

1000
Riverwalk Drive, Suite 200

Idaho
Falls, ID 83402

Telephone:
(208) 523-0620

Email:
pchristofferson@holdenlegal.com

 

    	REAL ESTATE PURCHASE AND SALE AGREEMENT – PEMV MAGIC vALLEY PARCEL A –11

     

    

 

Purchaser:

 

Liberty
Basin, LLC

Attention:
Monte Quast

872
E. Pebble Drive

Burley,
Idaho 83318

Telephone:
(208) 654-2733

Email:
monte@gibbygroup.com

 

With
a copy to:

 

Exceed
Legal PLLC

Attention: Erik J. Bolinder

421 S. 8th Street

Boise,
Idaho 83702

Telephone:208-297-5959

Email: ebolinder@exceed.legal

 

Each
such Notice shall be deemed given upon hand delivery; or deposit with an established express delivery service that maintains delivery
records; or certified or registered mail, postage prepaid, return receipt requested. Any party to this Agreement may give written
notice of a change of its address to the other party to this Agreement. Notices by way of facsimile shall be effective upon confirmed
delivery. Notices by way of email are effective upon confirmed receipt.

 

12. General
Provisions.

 

12.1
Entire Agreement. This Agreement contains the entire agreement between the parties to this Agreement with respect
to the subject matter hereto and supersedes all prior understandings, agreements, representations, and warranties, if any, with
respect to such subject matter.

 

12.2
Modification in Writing. This Agreement may only be modified by a writing executed by Purchaser and Seller.

 

12.3
Headings. The headings of the various paragraphs of this Agreement have been inserted only for convenience and shall
not be deemed in any manner to modify or limit any of the provisions of this Agreement or be used in any manner in the interpretation
of this Agreement.

 

12.4
Interpretation. Whenever the context so requires, all words used in the singular shall be construed to have been
used in the plural (and vice versa), each gender shall be construed to include any other genders, and the word “person”
shall be construed to include a natural person, a corporation, a firm, a partnership, a joint venture, a trust, an estate, or
any other entity. This Agreement shall be interpreted and construed only by the contents hereof, and there shall be no presumption
or standard of construction in favor of or against either Seller or Purchaser. The words “herein,” “hereof,”
“hereunder,” and other similar compounds of the word “here” when used in this Agreement shall refer to
the entire Agreement and not to any particular provision or section.

 

    	REAL ESTATE PURCHASE AND SALE AGREEMENT – PEMV MAGIC vALLEY PARCEL A –12

     

    

 

12.5
Dates of Performance. Whenever a date for an action required to be performed or any other period of time set forth
in this Agreement falls on a Saturday, Sunday, or federal holiday, then such date shall be extended to the following business
day.

 

12.6
Successors and Assigns. Purchaser may assign its rights hereunder to a partnership, corporation, limited liability
company or other entity in which Purchaser or a principal of Purchaser, is a manager, member, shareholder or partner or which
Purchaser has formed for the purpose of acquiring and owning the Property, without Seller’s prior consent. This Agreement
shall be binding upon and shall inure to the benefit of the successors-in-interest and assigns of each party to this Agreement.
Seller shall not transfer or convey any interest in the Property and shall not assign its rights and obligations under this Agreement
without Purchaser’s prior written consent.

 

12.7
Further Assurances. Each party to this Agreement shall execute all instruments and documents and take all
actions as may be reasonably required to effectuate this Agreement.

 

12.8
Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original,
but all of which when taken together shall constitute but one and the same Agreement.

 

12.9
Governing Law. The validity, meaning and effect of this Agreement shall be determined in accordance with the laws
of the State of Idaho.

 

12.10
Attorneys’ Fees. If a party commences a legal proceeding to enforce any of the terms of this Agreement, the
prevailing party in such action shall have the right to recover reasonable attorneys’ fees and costs from the other party
to be fixed by the court in the same action.

 

12.11
Reserved.

 

12.12
Survival / No Merger. The provisions of this Agreement, the representations, warranties, and the indemnity agreements
set forth herein shall survive Closing and any expiration or termination of this Agreement and shall not merge into any deed delivered
and accepted upon the Closing of the transaction herein contemplated.

 

12.13
Waiver. The failure of a Party to insist upon strict performance of any of the terms set forth herein shall not be
deemed a waiver of any rights or remedies that said party may have and shall not be deemed a waiver of any subsequent breach or
default in the performance of any of the terms contained herein by the same or any other party.

 

12.14
Severability. If any term or provision of this Agreement or the application of it to any person or circumstance shall,
to any extent, be invalid or unenforceable, the remainder of this Agreement or the application of such term or provision to persons
or circumstances, other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each term and
provision of this Agreement shall be valid and shall be enforced to the extent permitted by law.

 

12.15 Confidentiality.
Seller shall have the right to issue public notices concerning the transaction as may be necessary or advisable under the laws
and regulations to which Seller’s parent company is subject. Seller shall provide Purchaser a draft of any such notice prior
to making any such public notice for Purchaser’s comment.

 

12.16
Time is of Essence. Time is expressly made of the essence of all the provisions of this Agreement.

 

12.17
Reserved.

 

12.18
Risk of Loss. Seller shall bear the risk of loss to the Property prior to Closing.

 

    	REAL ESTATE PURCHASE AND SALE AGREEMENT – PEMV MAGIC vALLEY PARCEL A –13

     

    

 

IN
WITNESS WHEREOF, this Agreement has been executed as of the last date written below.

 

[Signature Page Follows] 

 

	PURCHASER:	 	SELLER:
	 	 	 
	Liberty
    Basin, LLC, an Idaho limited liability company	 	Pacific
    Ethanol Magic Valley, LLC, a Delaware limited liability company
	 	 	 
	By:
    	/s/
    Reed Gibby	 	By:
    	/s/
    Paul P. Koehler
	Name:
    	Reed
    Gibby	 	Name:
    	Paul
    P. Koehler
	Its:
    	Authorized
    Managing Member	 	Its:
    	Vice
    President
	 	 	 
	Date:
    	November
    6, 2020	 	Date:
    	November
    6, 2020

  

THE
SUBMISSION OF THIS AGREEMENT FOR EXAMINATION OR ITS NEGOTIATION OR THE NEGOTIATION OF THE TRANSACTION DESCRIBED HEREIN DOES NOT
CONSTITUTE AN OFFER TO PURCHASE OR SELL AND THE EXECUTION OF THIS AGREEMENT BY SELLER OR PURCHASER DOES NOT CONSTITUTE A BINDING
CONTRACT UNTIL SUCH TIME AS THIS AGREEMENT HAS BEEN SIGNED BY AUTHORIZED OFFICERS OF PURCHASER AND SELLER AND DELIVERED TO PURCHASER
AND SELLER.

 

    	REAL ESTATE PURCHASE AND SALE AGREEMENT – PEMV MAGIC vALLEY PARCEL A –14

     

    

 

EXHIBIT
“A”

LEGAL
DESCRIPTION OF PROPERTY

 

 

    	REAL ESTATE PURCHASE AND SALE AGREEMENT – PEMV MAGIC vALLEY PARCEL A –15

     

    

 

EXHIBIT
“A” CONT.

LEGAL
DESCRIPTION OF PROPERTY

 

 

    	REAL ESTATE PURCHASE AND SALE AGREEMENT – PEMV MAGIC vALLEY PARCEL A –16

     

    

 

EXHIBIT
“A” CONT.

LEGAL
DESCRIPTION OF PROPERTY

 

 

    	REAL ESTATE PURCHASE AND SALE AGREEMENT – PEMV MAGIC vALLEY PARCEL A –17

     

    

EXHIBIT “B”

To
Purchase and Sale Agreement

 

DEPICTION
OF PROPERTY (SURVEY) – PARCEL A

 

 

 

    	REAL ESTATE PURCHASE AND SALE AGREEMENT – PEMV MAGIC vALLEY PARCEL A –18

     

    

 

EXHIBIT “C”

 

To
Purchase and Sale Agreement

 

INVENTORY
LIST – MISCELLANEOUS PERSONAL PROPERTY

 

		●	Trackmobile
                                         Model 95TM, Serial No. 95523. 

 

		●	John
                                         Deere Front End Loader 544, Serial No: 1DW544KHADE656371

 

Aside
from the foregoing and the personal property referenced in Section 1.1(c), no equipment or personal property located on the Land
is being conveyed to Purchaser. The Seller stores supplies, spare parts and other materiel in the Parts Shed most of which are
for use in the Ethanol Plant. The Parties intend to deal with the ongoing use by Seller of the Trackmobile, Front End Loader and
the Parts Shed in the Cross Access Agreement.

 

Certain
irrigation equipment belonging to a third party is stored inside the rail loop, as described in Schedule 5.14, and such equipment
is not being conveyed to Purchaser.

 

    	REAL ESTATE PURCHASE AND SALE AGREEMENT – PEMV MAGIC vALLEY PARCEL A –19

     

    

 

SCHEDULE
5.10

 

ENVIRONMENTAL
MATTERS

 

In
2006, Parcels A and B together were known as the Glen Larsen Farm, which was used primarily as an irrigated agricultural and pasture
land that included one farmstead on the east boundary of Parcel B. The Glen Larsen Farm was inspected for conditions such as stained
ground and pavement, stressed vegetation, unauthorized dumping, and evidence of the use, storage, or release of hazardous materials.
If any petroleum products, chemicals, or other potentially hazardous or regulated materials were found on the premises, they were
noted. Reasonably ascertainable information was also gathered regarding underground and aboveground storage tanks, surficial and
subsurface soil and ground water conditions, and land use on and around the subject property.

 

Site
reconnaissance on the Glen Larsen Farm as of October 4, 2006, noted the following possible recognized environmental conditions
(RECs), (excluding the area around the Larsen Farmstead located along 200 West):

 

1. The
open 35-gallon metal drums of unknown contents in the bone yard have likely released their contents to soils and ground water
at the subject site.

 

2. The
Chevron petroleum pipeline located on the subject property along 100 South has the potential to impact the subject property.

 

3. The
abandoned septic systems at the two demolished farmsteads pose as potential sources for potential historical release of hazardous
constituents to subsurface soils and ground water.

 

4. The
historical use and application of pesticides and herbicides to the subject property in the course of normal farming operations
over the last 50 years presents the potential to impact site soils and groundwater.

 

5. The
Union Pacific Railroad line is an historical off-site REC due to the common historical practice of railroads in general of dumping
diesel fuel and other materials along rail lines, combined with often simple and incomplete operations and maintenance records.

 

     

     

    

 

Other
sites and areas of potential concern were observed, including:

 

		●	The
                                         abandoned ground water production well, located in relatively close proximity to the
                                         bone yard, is a potential REC. Reportedly, the well was not backfilled from its completion
                                         depth to the ground surface with cement-grout but rather simply severed at an approximate
                                         depth of a few feet below grade and then covered with soil. The well could act as a conduit
                                         by which hazardous constituents could have migrated vertically from the land surface,
                                         subsurface soils, and/or a shallow aquifer and impacted ground water quality in one or
                                         more aquifers beneath the site.

 

Moreover,
during historical pumping use of the well it is possible that the well's radial cone of influence might have intercepted any contaminated
ground water possibly associated with RECs identified within the bone yard, any pesticides used on fields, and/or elsewhere (in
relatively close proximity to the well). As such, once the well was no longer in use, any residual plume of contaminated ground
water might attenuate in different directions and/or extend over a larger subsurface aerial extent than during use of the well.

 

		●	The
                                         abandoned ground water production well associated with the former on-site farmstead near
                                         the southwest corner of the subject property is a potential REC. Reportedly, the well
                                         was not backfilled from its completion depth to the ground surface with cement-grout
                                         but rather simply severed at an approximate depth of a few feet below grade and then
                                         covered with soil. The well could act as a conduit by which hazardous constituents could
                                         have migrated vertically from the land surface, subsurface soils, and/or a shallow aquifer
                                         and impacted ground water quality in one or more aquifers beneath the site.

 

Moreover,
during historical pumping use of the well, it is possible that the well's radial cone of influence might have intercepted any
contaminated ground water possibly associated with any pesticides used on fields, and/or elsewhere (in relatively close proximity
to the well). As such, once the well was no longer in use, any residual plume of contaminated ground water might attenuate in
different directions and/or extend over a larger subsurface aerial extent than during use of the well.

 

Based
on the evidence gathered, there appears to be a moderate potential that some areas of topsoil and possibly subsurface soil and
ground water underlying the subject property have been impacted by on-site and/or or off-site sources. This conclusion is based
upon observations made during the on-site inspection and upon information gathered from publicly available and practically reviewable
sources.

 

     

     

    

 

Map
Identifying Location of Farmsteads & Bone Yard

 

 

 

Samples
were collected on January 18, 2007. Surface soil samples were collected using dedicated Teflon scoops from two locations in the
boneyard where containers of used petroleum products had been stored. The sample area was cleared of any organic material using
the Teflon scoop. Soils were loosened with the scoop and homogenized on the ground surface; soils were then placed into pre-labeled,
pre-cleaned and certified glass containers provided by the selected analytical laboratory. Sample containers were placed in zip-lock
bags and immediately placed on ice in an insulated cooler.

 

One
surface soil sample was collected at each of the following locations:

 

		●	Bone
                                         Yard: Former location of drums of used oil (Sample BY-1),

 

		●	Bone
                                         Yard: Location of three 5-gallon pails of used petroleum product (Sample BY-2),

 

		●	One
                                         composite soil sample collected from three misc. locations to be analyzed for organochlorine
                                         pesticides (Pest1). All concentrations of metals detected in the samples are considered
                                         typical background level concentrations for this area.

 

The
concentrations of organics detected in sample BY-1 (Bone Yard) are all below the IDTLs.

 

The
concentrations of organics detected in sample BY-2 (Bone Yard) are below the IDTLs. It should be noted that no Idaho regulatory
criteria exist for the TPH-DRO detected in this sample. The 87,000 mg/kg of TPH-DRO in the C25 to C36 range indicates the presence
of residual long- chain, petroleum hydrocarbon constituents, which is consistent with observations made in the report and observations
made at the time of sampling. The stained area covered approximately ten square feet.

 

     

     

    

 

The
concentration of DDT in the composited soil sample does not exceed the IDTL, and is consistent with what would be expected at
a site with a history of agricultural operations.

 

Analytical
Results for Surface Soil Samples.

 

	 	 	Sample
                                         Number

	 	 	Potential Regulatory Criteria	 
	Analyte	 	BY-1	 	 	BY-2	 	 	Idaho
    Tier 0 Criteria1	 	 	Idaho
    IDTLs2	 	 	EPA
    Region 9 PRGs3	 
	Bis(2-ethylhexyl)phthalate (μg/kg)	 	 	400	 	 	 	 	 	 	 	-	 	 	 	11,800	 	 	 	120,000	 
	Chloroethane (μg/kg)	 	 	-	 	 	 	3.3	 	 	 	-	 	 	 	618	 	 	 	6,500	 
	Acetone (μg/kg)	 	 	-	 	 	 	26	 	 	 	-	 	 	 	17,000	 	 	 	54,000,000	 
	Toluene (μg/kg)	 	 	35	 	 	 	38	 	 	 	5,400	 	 	 	4,890	 	 	 	520,000	 
	Methylene chloride (μg/kg)	 	 	-	 	 	 	6.1	 	 	 	-	 	 	 	16.9	 	 	 	21,000	 
	Cyclohexane (μg/kg)	 	 	-	 	 	 	2.5	 	 	 	-	 	 	 	-	 	 	 	140,000	 
	Benzene (μg/kg)	 	 	-	 	 	 	5.8	 	 	 	60	 	 	 	17.8	 	 	 	1,400	 
	Methylcyclohexane (μg/kg)	 	 	-	 	 	 	5.4	 	 	 	-	 	 	 	-	 	 	 	8,700,000	 
	Tetrachloroethene (μg/kg)	 	 	16	 	 	 	14	 	 	 	-	 	 	 	28.8	 	 	 	1,300	 
	Ethylbenzene (μg/kg)	 	 	5	 	 	 	2.4	 	 	 	10,000	 	 	 	10,200	 	 	 	400,000	 
	Xylenes, total (μg/kg)	 	 	33	 	 	 	14	 	 	 	7,000	 	 	 	1670	 	 	 	420,000	 
	Benzo(a)pyrene (μg/kg)	 	 	-	 	 	 	-	 	 	 	120	 	 	 	42.2	 	 	 	210	 
	TPH-GRO (mg/kg)	 	 	78	 	 	 	190	 	 	 	-	 	 	 	-	 	 	 	-	 
	TPH-DRO (mg/kg)	 	 	-	 	 	 	87,0004	 	 	 	-	 	 	 	-	 	 	 	-	 

 

Notes:

 

	1.	IDEQ
                                         Recommended Practices for Site Assessments During Closure of Underground Storage Tanks
                                         and Accidental Releases & Spills of Petroleum Hydrocarbon Products, May 2002

 

	2.	Initial
                                         Default Target Levels from the Idaho Risk Evaluation Manual, July 2004. Values
                                         reflect criteria for unrestricted residential use.

 

	3.	US
                                         EPA Region 9 Preliminary Remediation Goals for Direct Contact Exposure Pathway for Industrial
                                         Site Soils.

 

	4.	The
                                         laboratory report stated that this sample was analyzed for TPH C25-C36, which was detected
                                         at an amount of 87,000mg/kg-dry.

 

Analytical
Results for Composited Surface Soil Sample Analyzed for Pesticides.

  

	 	 	Sample Number	 	 	Potential Regulatory Criteria	 
	Analyte	 	Pest1	 	 	Idaho IDTLs1	 	 	EPA Region 9 PRGs2	 
	DDT (μg/kg)	 	 	4.4	 	 	 	403	 	 	 	1700	 

 

Notes:

 

	1.	Initial
                                         Default Target Levels from the Idaho Risk Evaluation Manual, July 2004. Values reflect
                                         criteria for unrestricted residential use.

 

	2.	US
                                         EPA Region 9 Preliminary Remediation Goals for Direct Contact Exposure Pathway for Industrial
                                         Site Soils.

 

     

     

    

 

SCHEDULE
5.14

 

OTHER
AGREEMENTS

 

The
area inside the rail loop is farmed by a family member of the former owner. The tenant farmer also stores irrigation equipment
owned by the tenant farmer inside the loop. To the benefit of the Seller, the tenant farmer maintains the area free of weeds.
This arrangement is not supported by any writing. In accordance with Section 7.1(c) of the Agreement, Seller will notify the tenant
farmer of the sale of the Property, and obtain a written Farmer Acknowledgment from the tenant farmer that the arrangement is
terminable at any time upon notice from the then owner of the Property.

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