Document:

Exhibit 10.6

 

 

 

 

 

 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

dated as of October 29, 2012

 

among

PACIFIC ETHANOL HOLDING CO. LLC,

PACIFIC ETHANOL MADERA LLC,

PACIFIC ETHANOL COLUMBIA, LLC,

PACIFIC ETHANOL STOCKTON LLC, and

PACIFIC ETHANOL MAGIC VALLEY, LLC,

as Borrowers,

PACIFIC ETHANOL HOLDING CO. LLC,

as Borrowers’ Agent,

THE LENDERS REFERRED TO HEREIN,

WELLS FARGO BANK, N.A.,

as Administrative Agent for the Lenders,

WELLS FARGO BANK, N.A.,

as Collateral Agent for the Senior Secured Parties,

and

AMARILLO NATIONAL BANK,

as Accounts Bank

 

 

    	 

    	 

    
 

TABLE OF CONTENTS

	 	Page
	 	 
	ARTICLE I DEFINITIONS AND INTERPRETATION	2
	Section 1.01 Defined Terms	2
	Section 1.02 Principles of Interpretation	2
	Section 1.03 UCC Terms	3
	Section 1.04 Accounting and Financial Determinations	3
	Section 1.05 Joint and Several	3
	 	 
	ARTICLE II COMMITMENTS AND BORROWING	4
	Section 2.01 Term Loans	4
	Section 2.02 Revolving Loans	5
	Section 2.03 Prior Credit Agreement and Original Credit Agreement Letters of Credit	5
	Section 2.04 Notice of Fundings	5
	Section 2.05 Funding of Revolving Loans	6
	Section 2.06 Evidence of Indebtedness	7
	Section 2.07 Termination or Reduction of Commitments	8
	Section 2.08 Defaulting Lenders	8
	 	 
	ARTICLE III REPAYMENTS, PREPAYMENTS, INTEREST AND FEES	9
	Section 3.01 Repayment of Loan Fundings	9
	Section 3.02 Interest Payment Dates	9
	Section 3.03 Interest Rates	10
	Section 3.04 Default Interest Rate	11
	Section 3.05 Interest Rate Determination	12
	Section 3.06 Computation of Interest and Fees	12
	Section 3.07 Optional Prepayment	12
	Section 3.08 Mandatory Prepayment	15
	Section 3.09 Time and Place of Payments	19
	Section 3.10 Fundings and Payments Generally	20
	Section 3.11 Fees	20
	Section 3.12 Pro rata Treatment	21
	Section 3.13 Sharing of Payments	22
	Section 3.14 Termination of Interest Rate Protection Agreement in Connection with Any Prepayment	22
	Section 3.15 Prepayment Premium	23
	 	 
	ARTICLE IV EURODOLLAR RATE AND TAX PROVISIONS	24
	Section 4.01 Eurodollar Rate Lending Unlawful	24
	Section 4.02 Inability to Determine Eurodollar Rates	24
	Section 4.03 Increased Eurodollar Loan Costs	25
	Section 4.04 Obligation to Mitigate	25
	Section 4.05 Funding Losses	26
	Section 4.06 Increased Capital Costs	26
	Section 4.07 Taxes	26

 

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	ARTICLE V REPRESENTATIONS AND WARRANTIES	28
	Section 5.01 Organization; Power and Compliance with Law	28
	Section 5.02 Due Authorization; Non-Contravention	28
	Section 5.03 Governmental Approvals	29
	Section 5.04 Investment Company Act	29
	Section 5.05 Validity of Financing Documents	29
	Section 5.06 Financial Information	29
	Section 5.07 No Material Adverse Effect	30
	Section 5.08 Project Compliance	30
	Section 5.09 Litigation	30
	Section 5.10 Sole Purpose Nature; Business	30
	Section 5.11 Contracts	30
	Section 5.12 Collateral	31
	Section 5.13 Ownership of Properties	32
	Section 5.14 Taxes	33
	Section 5.15 Patents, Trademarks, Etc.	33
	Section 5.16 ERISA Plans	33
	Section 5.17 Property Rights, Utilities, Supplies Etc.	33
	Section 5.18 No Defaults	33
	Section 5.19 Environmental Warranties	34
	Section 5.20 Regulations T, U and X	35
	Section 5.21 Accuracy of Information	35
	Section 5.22 Indebtedness	35
	Section 5.23 Separateness	35
	Section 5.24 Subsidiaries	36
	Section 5.25 Foreign Assets Control Regulations, Etc.	36
	Section 5.26 Employment Matters	36
	Section 5.27 Solvency	36
	Section 5.28 Legal Name and Place of Business	36
	Section 5.29 No Brokers	37
	Section 5.30 Insurance	37
	Section 5.31 Accounts	37
	Section 5.32 Interest Rate Protection Agreements	37
	 	 
	ARTICLE VI CONDITIONS PRECEDENT	37
	Section 6.01 Conditions to Closing	37
	Section 6.02 Conditions to All Fundings	38
	 	 
	ARTICLE VII COVENANTS	39
	Section 7.01 Affirmative Covenants	39
	Section 7.02 Negative Covenants	45
	Section 7.03 Reporting Requirements	52

 

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	ARTICLE VIII PROJECT ACCOUNTS	56
	Section 8.01 Establishment of Project Accounts	56
	Section 8.02 Deposits into and Withdrawals from Project Accounts	57
	Section 8.03 Revenue Account	59
	Section 8.04 Operating Account	64
	Section 8.05 Maintenance Capital Expense Account	64
	Section 8.06 Debt Service Reserve Account	64
	Section 8.07 Insurance and Condemnation Proceeds Accounts	65
	Section 8.08 Extraordinary Proceeds Account	68
	Section 8.09 Representations, Warranties and Covenants of Accounts Bank	69
	Section 8.10 Project Accounts	72
	Section 8.11 Project Accounts as Deposit Account	73
	Section 8.12 Duties of Accounts Bank	73
	Section 8.13 Subordination	74
	Section 8.14 Borrower Acknowledgments	75
	Section 8.15 Agreement to Hold In Trust	75
	Section 8.16 Interest and Investments	75
	Section 8.17 Accounts Bank Information	76
	Section 8.18 Notices of Suspension of Accounts	77
	 	 
	ARTICLE IX DEFAULT AND ENFORCEMENT	78
	Section 9.01 Events of Default	78
	Section 9.02 Action Upon Bankruptcy	84
	Section 9.03 Action Upon Other Event of Default	84
	Section 9.04 Application of Proceeds	85
	 	 
	ARTICLE X THE AGENTS	86
	Section 10.01 Appointment and Authority	86
	Section 10.02 Rights as a Lender or Interest Rate Protection Provider	88
	Section 10.03 Exculpatory Provisions	88
	Section 10.04 Reliance by Agents	91
	Section 10.05 Delegation of Duties	91
	Section 10.06 Resignation or Removal of Agent	91
	Section 10.07 No Amendment to Duties of Agent Without Consent	93
	Section 10.08 Non-Reliance on Agent and Other Lenders	93
	Section 10.09 Collateral Agent May File Proofs of Claim	93
	Section 10.10 Collateral Matters	94
	Section 10.11 Copies	94
	 	 
	ARTICLE XI MISCELLANEOUS PROVISIONS	95
	Section 11.01 Amendments, Etc.	95
	Section 11.02 Applicable Law; Jurisdiction; Etc.	97
	Section 11.03 Assignments	98
	Section 11.04 Benefits of Agreement	103
	Section 11.05 Borrowers’ Agent	104
	Section 11.06 Consultants	104
	Section 11.07 Costs and Expenses	104
	Section 11.08 Counterparts; Effectiveness	105
	Section 11.09 Indemnification by the Borrowers	105

 

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	Section 11.10 Interest Rate Limitation	106
	Section 11.11 No Waiver; Cumulative Remedies	106
	Section 11.12 Notices and Other Communications	107
	Section 11.13 Patriot Act Notice	109
	Section 11.14 Payments Set Aside	110
	Section 11.15 Right of Setoff	110
	Section 11.16 Severability	110
	Section 11.17 Survival	111
	Section 11.18 Treatment of Certain Information; Confidentiality	111
	Section 11.19 Waiver of Consequential Damages, Etc.	112
	Section 11.20 Waiver of Litigation Payments	112
	Section 11.21 Security Procedure For Funds Transfers	112

 

SCHEDULES

Schedule 1.01(a) – Commitments

Schedule 5.11 – Contracts

Schedule 5.12 – UCC Filing
Offices

Schedule 5.13(a) – Site Descriptions

Schedule 5.19(a)(i) – Environmental
Warranties

Schedule 5.19(d)(ii) – Underground
Storage Tanks

Schedule 5.23 – Separateness
Provisions

Schedule 5.28 – Legal Names
and Places of Business

Schedule 5.29 – Broker Fees

Schedule 6.01(b)(iii) – Project
Document Consents

Schedule 6.01(m)A – Initial
Budget

Schedule 6.01(m)B – Initial
Annual Forecast

Schedule 7.01(h) – Insurance

Schedule 7.02(a) – Bonds

Schedule 11.12 – Notice Information

Schedule A – Consent and Direction
Letter

EXHIBITS

Exhibit A – Defined Terms

Exhibit B – Intercreditor Agreement

Exhibit 2.04A – Form of Revolving
Funding Notice

Exhibit 2.06 – Form of Note

Exhibit 3.03 – Form of Interest
Period Notice

Exhibit 4.07 – Form of Non-U.S.
Lender Statement

Exhibit 7.01(t)A – Form of
Estoppel Certificate (Stockton)

Exhibit 7.01(t)B – Form of
Estoppel Certificate (Boardman)

Exhibit 7.03(l) – Form of Operating
Statement

Exhibit 8.03 – Form of Revenue
Account Withdrawal Certificate

Exhibit 8.04 – Form of Operating
Account Withdrawal Certificate

Exhibit 8.06 – Form of Debt
Service Reserve Release Certificate

Exhibit 8.07 – Form of Insurance
and Condemnation Proceeds Request Certificate

Exhibit 8.08 – Form of Extraordinary
Proceeds Release Notice

Exhibit 11.03 – Form of Lender
Assignment Agreement

Exhibit 11.21 – Security Procedures

 

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This SECOND AMENDED AND RESTATED CREDIT
AGREEMENT (this “Agreement”), dated as of October 29, 2012, is by and among PACIFIC ETHANOL HOLDING CO. LLC,
a Delaware limited liability company (“Pacific Holding”), PACIFIC ETHANOL MADERA LLC, a Delaware limited liability
company (“Madera”), PACIFIC ETHANOL COLUMBIA, LLC, a Delaware limited liability company (“Boardman”),
PACIFIC ETHANOL STOCKTON LLC, a Delaware limited liability company (“Stockton”), and PACIFIC ETHANOL MAGIC VALLEY,
LLC, a Delaware limited liability company (“Burley” and, together with Pacific Holding, Madera, Boardman and
Stockton, the “Borrowers”), Pacific Holding, as Borrowers’ Agent, each of the Lenders from time to time
party hereto, WELLS FARGO BANK, N.A., as administrative agent for the Lenders, WELLS FARGO BANK, N.A., as collateral agent for
the Senior Secured Parties and AMARILLO NATIONAL BANK, as accounts bank, and amends and restates the Prior Credit Agreement.

RECITALS

WHEREAS,
on May 17, 2009 (the “Petition Date”), the predecessor in interest of each Borrower (collectively, the
“Debtors”) commenced Chapter 11 Case Nos. 09-11713 through 09-11717 (collectively, the “Chapter 11
Cases”) by filing voluntary petitions for reorganization under the Bankruptcy Code with the United States Bankruptcy
Court for the District of Delaware (the “Bankruptcy Court”);

WHEREAS,
prior to the Petition Date, certain Lenders (as defined below) or their predecessors in interest provided financing to each Debtor
pursuant to the Credit Agreement, dated as of February 27, 2007, among each Debtor, the other parties signatory thereto, and each
such Lender or its predecessor in interest (as amended, modified or supplemented through the Petition Date, the “Pre-Petition
Credit Agreement”);

WHEREAS,
after the Petition Date, certain Lenders or their predecessors in interest provided each Debtor a senior secured, superpriority
credit facility to fund the working capital requirements of the Debtors during the pendency of the Chapter 11 Cases (as amended,
modified or supplemented to the Closing Date, the “DIP Credit Agreement”);

WHEREAS,
on April 16, 2010 the Debtors filed with the Bankruptcy Court the Debtors’ Amended Joint Plan of Reorganization Under Chapter
11 of the Bankruptcy Code (as amended, modified or supplemented to the Closing Date, the “Reorganization Plan”)
providing for payment in full of DIP Advance Claims and related Disclosure Statement (as such term is defined in the Reorganization
Plan);

WHEREAS,
on April 23, 2010 the Bankruptcy Court approved the Disclosure Statement for distribution to holders of Claims and Equity Interests
(as each such term is defined in the Reorganization Plan);

WHEREAS,
the Reorganization Plan contemplated, among other things, the establishment of the Exit Facility (as such term is defined therein)
the proceeds of which were to be used to (a) satisfy certain claims in the Chapter 11 Cases in respect of the Pre-Petition Credit
Agreement and the DIP Credit Agreement, (b) finance certain costs of the confirmation of the Reorganization Plan, (c) finance the
ownership and operation or Cold Shutdown of four (4) denatured ethanol production facilities located in or near Madera, California,
Boardman, Oregon, Stockton, California and Burley, Idaho and (d) pay certain fees and expenses associated with the Original Credit
Agreement and the Loans, in each case as further described therein;

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WHEREAS,
on August 1, 2011, the parties thereto entered into the Prior Credit Agreement (prior to the effectiveness of the First Amendment
thereto) to amend and restate the Original Credit Agreement upon the terms and conditions set forth therein, and thereafter the
parties thereto entered in the First Amendment; and

WHEREAS,
the parties hereto have agreed to amend and restate the Prior Credit Agreement with respect to the obligations set forth therein,
and each such party is willing to amend and restate the Prior Credit Agreement upon the terms and subject to the conditions set
forth herein.

NOW,
THEREFORE, the parties hereto agree that upon the occurrence of the Restatement Effective Date, the Prior Credit Agreement
is hereby amended and restated to read in its entirety as follows:

ARTICLE
I

DEFINITIONS AND INTERPRETATION

Section
1.01 Defined Terms. Capitalized terms used in this Agreement, including its preamble and recitals, shall, except
as otherwise defined herein or where the context otherwise requires, have the meanings provided in Exhibit A.

Section
1.02 Principles of Interpretation. (a) Unless otherwise
defined or the context otherwise requires, terms for which meanings are provided in this Agreement shall have the same meanings
when used in each Financing Document, notice and other communication delivered from time to time in connection with any Financing
Document.

(b)              
Unless the context requires otherwise, any reference in this Agreement to any Transaction Document shall mean such Transaction
Document and all schedules, exhibits and attachments thereto.

(c)               
All the agreements, contracts or documents defined or referred to herein shall mean such agreements, contracts or documents
as the same may from time to time be supplemented or amended or the terms thereof waived or modified to the extent permitted by,
and in accordance with, the terms thereof and this Agreement, and shall disregard any supplement, amendment or waiver made in breach
of this Agreement.

(d)              
Any reference in any Financing Document relating to a Default or an Event of Default that has occurred and is continuing
(or words of similar effect) shall be understood to mean that (i) in the case of a Default only, such Default has not been cured
or remedied, or has not been waived in the manner set forth herein, before becoming an Event of Default and (ii) in the case of
an Event of Default, such Event of Default has not been waived in the manner set forth herein.

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(e)               
The term “knowledge” in relation to the Borrowers, and any other similar expressions, shall mean knowledge of
each of the Borrowers after due inquiry.

(f)               
Defined terms in this Agreement shall include in the singular number the plural and in the plural number the singular.

(g)              
The words “herein,” “hereof” and “hereunder” and words of similar import when used in
this Agreement shall, unless otherwise expressly specified, refer to this Agreement as a whole and not to any particular provision
of this Agreement and all references to Articles, Sections, Exhibits and Schedules shall be references to Articles, Sections, Exhibits
and Schedules of this Agreement, unless otherwise specified.

(h)              
The words “include,” “includes” and “including” are not limiting.

(i)                
The word “or” is not exclusive.

(j)                
Any reference to any Person shall include its permitted successors and permitted assigns in the capacity indicated, and
in the case of any Governmental Authority, any Person succeeding to its functions and capacities.

(k)              
All references in the Financing Documents to the “Required Lenders” without reference to a Class or Classes
shall refer to the Required Lenders of the Revolving Loan Class and the Required Lenders of the Tranche A-1 Term Loan Class.

(l)               
Any reference to an Exhibit or Schedule
to this Agreement, which Exhibit or Schedule is not attached hereto, shall be deemed to be a reference to the corresponding Exhibit
or Schedule, as applicable, of the Original Credit Agreement (or if applicable, the Prior Credit Agreement), which Exhibit or Schedule
shall be deemed modified to refer to this Agreement rather than the Original Credit Agreement and refer to the Administrative Agent
or Collateral Agent, as applicable, and to the applicable provisions under this Agreement rather than under the Original Agreement.

Section
1.03 UCC Terms. Unless otherwise defined herein, terms used herein that are defined in the UCC shall have the respective
meanings given to those terms in the UCC.

Section
1.04 Accounting and Financial Determinations. Unless otherwise specified, all accounting terms used in any Financing
Document shall be interpreted, all accounting determinations and computations hereunder or thereunder shall be made, and all financial
statements required to be delivered hereunder or thereunder shall be prepared, in accordance with GAAP.

Section
1.05 Joint and Several. Subject to Section 1.05(b), the Obligations of each Borrower under this Agreement
and each other Financing Document to which any Borrower is a party shall constitute the joint and several obligations of all Borrowers.
All representations, warranties, undertakings, agreements and obligations of each Borrower expressed or implied in this Agreement
or any other Financing Document shall, unless the context requires otherwise, be deemed to be made, given or assumed by the Borrowers
jointly and severally.

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(a)               
Each of the Borrowers, the Administrative Agent and the Lenders hereby confirms that it is the intention of all such Persons
that this Agreement and the other Financing Documents and the Obligations of each Borrower hereunder and thereunder not constitute
a fraudulent transfer or conveyance for purposes of any Debtor Relief Laws, the Uniform Fraudulent Conveyance Act, the Uniform
Fraudulent Transfer Act or any similar foreign, federal or state law, to the extent applicable to this Agreement or such other
Financing Document and the Obligations of each Borrower hereunder and thereunder. To effectuate the foregoing intention, the Administrative
Agent, the Lenders and the Borrowers hereby irrevocably agree that the Obligations of each Borrower at any time shall be limited
to the maximum amount as will result in the Obligations of such Borrower not constituting a fraudulent transfer or conveyance.

ARTICLE
II

COMMITMENTS AND BORROWING

On the terms, subject to the conditions
and relying upon the representations and warranties herein set forth:

Section
2.01 Term Loans. (a) Each Tranche A-1 Lender made,
severally and not jointly, on the terms and conditions of this Agreement, loans (each such loan, a “Tranche A-1 Term
Loan”) to the Borrowers on the Closing Date, in an aggregate principal amount equal to such Tranche A-1 Lender’s
Tranche A-1 Term Loan Commitment. Pursuant to the First Amendment and pursuant to Section 3.02 (Interest Payment Dates),
the Extending Lenders have agreed to accept certain payments of interest on the Revolving Loans and the Tranche A-1 Term Loans
in the form of additional Tranche A-1 Term Loans, each of which interest payments are deemed to be Tranche A-1 Term Loans hereunder.
The Lenders hereby agree that, as of the Restatement Effective Date, the outstanding principal amounts of the Tranche A-1 Term
Loans (as of the end of the Interest Period immediately prior to the Interest Period in which the Restatement Effective Date occurs)
of each Lender are set forth on Schedule 1.01(a), it being understood that such amounts do not included any Capitalized
Interest that has accrued on Tranche A-1 Term Loans or Revolving Loans during the Interest Period in which the Restatement Effective
Date occurs. For the avoidance of doubt, the aggregate principal balance of the outstanding Tranche A-1 Term Loans of any Extending
Lender may exceed such Lender’s Tranche A-1 Term Loan Commitment, and the aggregate principal balance of the outstanding
Tranche A-1 Term Loans of all Extending Lenders may exceed the Aggregate Term Commitments of Tranche A-1 Lenders that are Extending
Lenders, in each case solely as the result of the payment of Capitalized Interest in accordance with Section 3.02(a) (Interest
Payment Dates). After giving effect to any Capitalized Interest that has accrued and become a Tranche A-1 Term Loan, the
pro rata allocations among the Lenders shall be adjusted accordingly.

(b)              
Each Tranche A-2 Lender was deemed to have made loans (each such loan, a “Tranche A-2 Term Loan”) to
the Borrowers on the Closing Date, in an aggregate principal amount equal to such Tranche A-2 Lender’s Tranche A-2 Term Loan
Commitment. As of the Restatement Effective Date, the outstanding principal amount of the Tranche A-2 Term Loans of each Lender
are set forth on Schedule 1.01(a).

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(c)               
Proceeds of the Tranche A-1 Term Loans were used solely for the payment of amounts due in respect of DIP Advance Claims.

(d)              
Pursuant to the Reorganization Plan, Roll-Up Claims were deemed to be converted to Tranche A-2 Term Loans.

(e)               
Term Loans repaid or prepaid may not be reborrowed.

Section
2.02 Revolving Loans. (a) Each Revolving Lender agrees, severally and not jointly, on the terms and conditions of
this Agreement, to make loans (each such loan, a “Revolving Loan”) to the Borrowers, from time to time but
not more frequently than six (6) times each calendar month, until the last Business Day immediately preceding the Maturity Date,
in an aggregate principal amount at any one time outstanding not to exceed the Revolving Loan Commitment of such Revolving Lender;
provided, that the aggregate principal amount of the Revolving Loans of all Lenders at any one time outstanding shall not
exceed the Aggregate Revolving Loan Commitment. Pursuant to the First Amendment, $5,000,000 in “Additional Revolving Loans”
(as defined in the First Amendment) were made available to the Borrowers. The Lenders hereby agree that, as of the Restatement
Effective Date, all Revolving Loans, including such “Additional Revolving Loans”, shall be deemed to be held pro rata
among the Revolving Lenders, in accordance with their Revolving Loan Commitment Percentages. The Lenders hereby agree that, as
of the Restatement Effective Date, the outstanding principal amounts of the Revolving Loans of each Lender are set forth on Schedule
1.01(a).

(b)              
Each Funding of Revolving Loans shall be in the minimum amount of one hundred thousand Dollars ($100,000).

(c)               
Proceeds of each Revolving Loan shall be deposited into the Revenue Account (or as otherwise agreed by the Administrative
Agent, at the direction of the Required Lenders, and specified by the Borrowers’ Agent in the relevant Funding Notice) and
applied solely in accordance with this Agreement and shall be used solely in accordance with the then-current Budget.

(d)              
Within the limits set forth in Section 2.02(a) and subject to the Intercreditor Agreement, the Borrowers may pay
or prepay and reborrow Revolving Loans.

Section
2.03 Prior Credit Agreement and Original Credit Agreement Letters of Credit.
The Prior Credit Agreement (prior to the effectiveness of the First Amendment), provided for a letter of credit facility.
No letters of credit are outstanding under the Prior Credit Agreement and no letters of credit may be issued under this Agreement.
The provisions of Section 11.07 and 11.09 shall continue in effect for the benefit of WestLB (in its capacity as issuing bank
under the Prior Credit Agreement (prior to the effectiveness of the First Amendment) and the Original Credit Agreement) and its
Related Parties in respect of any actions taken or omitted to be taken by any of them while WestLB was issuing bank under such
agreements.

Section
2.04 Notice of Fundings. (a) From time to time, but not more frequently than six times per calendar month (and,
with respect to the Tranche A-1 Term Loans, only on the Closing Date), the Borrowers may propose a Funding by delivering to the
Administrative Agent a properly completed Funding Notice not later than 12:00 noon, New York City time, five (5) Business Days
prior to the proposed Funding Date; provided that in the case of the Loans to be made on the Closing Date such five (5) Business
Days period is hereby waived. Each Funding Notice delivered pursuant to this Section 2.04 shall be irrevocable and shall
refer to this Agreement and specify (i) whether such Funding is requested to be of Eurodollar Loans and/or Base Rate Loans, (ii)
the requested Funding Date (which shall be a Business Day), (iii) the amount of such requested Funding and (iv) the Loan(s) with
respect to which such Funding is requested. The Tranche A-2 Term Loans shall initially be Base Rate Loans.

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(b)              
The Administrative Agent shall promptly advise (i) each Tranche A-1 Lender of the Term Funding Notice and (ii) each Revolving
Lender of any Revolving Funding Notice, in each case given pursuant to this Section 2.04, and of each such Lender’s
portion of the requested Funding.

Section
2.05 Funding of Revolving Loans. (a) Subject to Section
2.05(d), each Funding of Revolving Loans shall consist of Loans made by the Revolving Lenders ratably in accordance with their
respective applicable Revolving Loan Commitment Availability Percentages (subject to Section 2.02(a)), and shall consist
of Eurodollar Loans or Base Rate Loans as the Borrowers may request pursuant to Section 2.04 (Notice of Fundings);
provided, that the failure of any Lender to make any Loan shall not in itself relieve any other Lender of its obligation
to lend hereunder (it being understood, however, that no Lender shall be responsible for the failure of any other Lender to make
any Loan required to be made by such other Lender).

(b)              
Subject to Section 4.04 (Obligation to Mitigate), each Lender may (without relieving any Borrower of its obligation
to repay a Loan in accordance with the terms of this Agreement and the Notes) at its option fulfill its Commitment with respect
to any such Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that the use
of such domestic or foreign branch does not result in any increased costs payable by any of the Borrowers hereunder.

(c)               
Subject to Section 2.05(d), (i) each Tranche A-1 Lender made a Loan in the amount of its applicable Commitment Percentage
of the Funding of Tranche A-1 Term Loans hereunder on the Closing Date by wire transfer of immediately available funds to the Administrative
Agent, not later than 11:00 a.m., New York City time, and the Administrative Agent shall apply the amounts so received as directed
by the Borrower in the manner set forth in the Funding Notice to the payment of DIP Advance Claims, (ii) each Tranche A-2 Lender
was deemed to have made a Loan in the amount of its applicable Commitment Percentage of the Funding of Tranche A-2 Term Loans hereunder
on the Closing Date in replacement of Roll-Up Claims and (iii) each Revolving Lender shall make a Loan in the amount of its applicable
Revolving Loan Commitment Availability Percentage (subject to Section 2.02(a)) of each Funding of Revolving Loans hereunder
on the proposed Funding Date by wire transfer of immediately available funds to the Administrative Agent, not later than 11:00
a.m. New York City time, and the Administrative Agent shall transfer the amounts so received to the Accounts Bank for deposit into
the Revenue Account in the amount set forth in the Funding Notice (or as otherwise agreed by the Administrative Agent, at the direction
of the Required Lenders, and specified in the relevant Funding Notice); provided, that if a Funding does not occur on the
proposed Funding Date because any condition precedent to such requested Funding herein specified has not been met and not all Lenders
have made their respective Loans on such date, the Administrative Agent shall return any amounts so received to the respective
Lenders without interest.

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(d)              
Unless the Administrative Agent has been notified in writing by any Revolving Lender prior to a proposed Funding Date that
such Revolving Lender will not make available to the Administrative Agent its portion of the Funding proposed to be made on such
date, the Administrative Agent may assume that such Lender has made such amounts available to the Administrative Agent on such
date and the Administrative Agent in its sole discretion may, in reliance upon such assumption, make available to the Borrowers
a corresponding amount. If such corresponding amount is not in fact made available to the Administrative Agent by such Lender and
the Administrative Agent has made such amount available to the Borrowers, the Administrative Agent shall be entitled to recover
such corresponding amount on demand from such Lender and, if such Lender pays such amount (together with the interest noted below),
then the amount so paid shall constitute such Lender’s Loan included in such Funding. If such Lender does not pay such corresponding
amount forthwith upon the Administrative Agent’s demand, the Administrative Agent shall promptly notify the Borrowers and
the Borrowers shall immediately repay such corresponding amount to the Administrative Agent. The Administrative Agent shall also
be entitled to recover from such Lender or the Borrowers, as the case may be, interest on such corresponding amount in respect
of each day from the date such corresponding amount was made available by the Administrative Agent to the Borrowers to the date
such corresponding amount is recovered by the Administrative Agent, at an interest rate per annum equal to (i) in the case
of a payment made by such Lender, the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent
in accordance with banking industry rules on interbank compensation and (ii) in the case of a payment made by the Borrowers, the
Base Rate plus the Applicable Margin. Nothing herein shall be deemed to relieve any Lender from its obligation to fulfill its commitment
hereunder. Notwithstanding anything to the contrary in this Agreement or any other Financing Document, the Administrative Agent
may, subject to the Intercreditor Agreement and the rights of the other Senior Secured Parties under the Security Documents and
with prior notice to the Borrowers, apply all funds and proceeds of Collateral available for the payment of any Obligation to repay
any amount owing by any Lender to the Administrative Agent as a result of such Lender’s failure to fund its applicable share
of any Funding hereunder. A notice of the Administrative Agent to any Lender or the Borrowers with respect to any amounts owing
under this Section 2.05(d) shall be conclusive, absent manifest error.

Section
2.06 Evidence of Indebtedness. (a) Each Loan made
by each Lender shall be evidenced by one or more accounts or records maintained by such Lender and by the Administrative Agent
in the ordinary course of business, including the Register for the recordation of the Loans maintained by the Administrative Agent
in accordance with the provisions of Section 11.03(c) (Assignments). The accounts or records maintained by the Administrative
Agent and each Lender shall be conclusive evidence, absent manifest error, of the amount of the Loans made by the Lenders to the
Borrowers and the interest and payments thereon. Any failure to so record or any error in doing so shall not, however, limit or
otherwise affect the obligation of the Borrowers hereunder to pay any amount owing with respect to the Obligations. In the event
of any conflict between the accounts and records maintained by any Lender and the accounts and records of the Administrative Agent
in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error.

    	7

    	 

    

(b)              
The Borrowers agree that in addition to the Register and any other accounts and records maintained pursuant to Section
2.06(a), the Loans made by each Lender shall be evidenced, in each case when requested by a Lender, by a Note or Notes duly
executed on behalf of each Borrower, dated the Closing Date (or, if later, the date of any such request), payable to the order
of such Lender in a principal amount equal to such Lender’s Revolving Loan Commitment, Tranche A-1 Term Loan Commitment or
Tranche A-2 Term Loan Commitment, as applicable. Each Lender may attach schedules to its Note and endorse thereon the date, amount
and maturity of its Loan and payments with respect thereto.

Section
2.07 Termination or Reduction of Commitments. (a) Any unused Commitments shall be automatically and permanently
terminated on the Maturity Date.

(b)              
In the event of any prepayment of the Revolving Loans pursuant to Section 3.08 (Mandatory Prepayment), the
Revolving Loan Commitments shall be automatically and permanently reduced in an amount equal to such prepayment.

(c)               
Any unused Commitments shall be terminated upon the occurrence of an Event of Default if and to the extent required pursuant
to Section 9.02 (Action upon Bankruptcy) or Section 9.03 (Action Upon Other Event of Default) in accordance
with the terms thereof.

Section
2.08 Defaulting Lenders. Anything contained herein to the contrary notwithstanding, in the event that any Lender,
other than at the direction or request of any regulatory agency or authority or due to a temporary disruption in the financial
markets generally, defaults (such Lender, and each Affiliate of such Lender that is a Lender, a “Defaulting Lender”)
in its obligation to fund (a “Funding Default”) any Loan (in each case, a “Defaulted Loan”),
then (i) during any Default Period with respect to such Defaulting Lender, such Defaulting Lender shall be a Non-Voting Lender;
and (ii) to the extent permitted by applicable law, during any Default Period and until such time as the Default Excess with respect
to such Defaulting Lender shall have been reduced to zero, (A) any voluntary prepayment of the Loans shall be applied to the outstanding
Loans of Lenders other than Defaulting Lenders prior to the outstanding Loans of the Defaulting Lenders, (B) any mandatory prepayment
of the Loans shall be applied to the outstanding Loans of Lenders other than Defaulting Lenders prior to the outstanding Loans
of the Defaulting Lenders, (C) such Defaulting Lender shall not be entitled to receive any Commitment Fee pursuant to Section
3.11 (Fees) with respect to such Defaulting Lender’s Commitment; and (D) availability of Loans pursuant to Section
2.01(a) (Term Loans) and Section 2.02(a) (Revolving Loans) shall, as at any date of determination,
be calculated as if such Defaulting Lender had funded all Defaulted Loans of such Defaulting Lender. No Commitment of any Lender
shall be increased or otherwise affected, and, except as otherwise expressly provided in this Section 2.08, performance
by the Borrowers of their obligations hereunder and the other Financing Documents shall not be excused or otherwise modified as
a result of any Funding Default or the operation of this Section 2.08. The rights and remedies against a Defaulting Lender
under this Section 2.08 are in addition to other rights and remedies which the Borrowers may have against such Defaulting
Lender with respect to any Funding Default and which the Administrative Agent or any Lender may have against such Defaulting Lender
with respect to any Funding Default.

    	8

    	 

    

ARTICLE
III

REPAYMENTS, PREPAYMENTS, INTEREST AND FEES

Section
3.01 Repayment of Loan Fundings. The Borrowers unconditionally and irrevocably promise to pay in full to the Administrative
Agent, for the ratable account of each Lender, the aggregate outstanding principal amount of the Loans on the Maturity Date.

Section
3.02 Interest Payment Dates. (a) Interest accrued on each Loan shall be payable, without duplication:

		(i)	on the Maturity Date;

		(ii)	with respect to Eurodollar Loans, the last day of each applicable Interest Period or, if applicable, any date on which such
Eurodollar Loan is converted to a Base Rate Loan;

		(iii)	with respect to Base Rate Loans, on each Monthly Date or, if applicable, any date on which such Base Rate Loan is converted
to a Eurodollar Loan; and

		(iv)	with respect to any Loan, on any date when such Loan is prepaid hereunder;

provided
that, notwithstanding the foregoing, so long as no Default or Event of Default has occurred and is continuing, interest otherwise
payable in cash with respect to any period prior to the Original Maturity Date on the Extended Loans pursuant to the foregoing
clauses (ii) or (iii) may, at the option of the Borrowers’ Agent by written notice to Administrative Agent and Extending
Lenders at least two (2) Business Days prior to the date of the required payment, be paid in the form of new, pro rata Tranche
A-1 Term Loans (which Tranche A-1 Term Loans shall constitute Extended Loans), which shall be deemed incurred by the Borrower on
the relevant interest payment date. Amounts added to the Tranche A-1 Term Loans in accordance with the foregoing proviso shall
be referred to herein as “Capitalized Interest”.

 

(b)              
Interest accrued on the Loans or other monetary Obligations after the date such amount is due and payable (whether on the
Maturity Date, any Monthly Date, any Interest Payment Date, upon acceleration or otherwise) shall be payable, subject to the Intercreditor
Agreement, upon demand.

(c)               
Subject to the Intercreditor Agreement, interest hereunder shall be due and payable in accordance with the terms hereof,
before and after judgment, regardless of whether an Insolvency Proceeding exists in respect of any Borrower, and to the fullest
extent permitted by law, the Lenders shall be entitled to receive post-petition interest during the pendency of an Insolvency Proceeding.

    	9

    	 

    

 

Section
3.03 Interest Rates. (a) Pursuant to each properly
delivered Funding Notice and Interest Period Notice, (i) the Eurodollar Loans shall accrue interest at a rate per annum
during each Interest Period applicable thereto equal to the sum of the Eurodollar Rate for such Interest Period plus the Applicable
Margin and (ii) each Base Rate Loan shall accrue interest at a rate per annum during each Monthly Period equal to the sum
of the Base Rate for such Monthly Period plus the Applicable Margin. Any Revolving Loan made within thirty (30) days of the Maturity
Date shall be a Base Rate Loan.

(b)              
On or before 12:00 noon, New York City time, at least four (4) Business Days prior to the end of each Interest Period for
each Eurodollar Loan, the Borrowers shall, and at least four (4) Business Days prior to the end of any Monthly Period for any Base
Rate Loans, the Borrowers may, deliver to the Administrative Agent an Interest Period Notice setting forth the Borrowers’
election (i) to continue any such Eurodollar Loan as (or convert any such Base Rate Loan to) a Eurodollar Loan or (ii) to convert
any such Eurodollar Loan to a Base Rate Loan at the end of the then-current Interest Period; provided, that if an Event
of Default has occurred and is continuing, all Eurodollar Loans shall automatically convert into Base Rate Loans at the end of
the then-current Interest Periods. Each such election with respect to the Tranche A-1 Term Loans shall also apply to the Tranche
A-2 Term Loans. Upon the waiver or cure of such Event of Default, the Borrowers shall have the option to continue such Loans as
Base Rate Loans and/or to convert such Loans to Eurodollar Loans (by delivery of an Interest Period Notice), subject to the notice
periods set forth above. Notwithstanding anything to the contrary, any portion of the Loans maturing in less than one month may
not be continued as, or converted to, Eurodollar Loans and will automatically convert to Base Rate Loans at the end of the then-current
Interest Period.

(c)               
If the Borrowers fail to deliver an Interest Period Notice in accordance with Section 3.03(b) with respect to any
Eurodollar Loan, such Eurodollar Loan shall automatically continue as a Eurodollar Loan.

(d)              
All Eurodollar Loans shall bear interest from and including the first day of the applicable Interest Period to (and excluding)
the last day of such Interest Period at the interest rate determined as applicable to such Eurodollar Loan.

(e)               
Notwithstanding anything to the contrary, the Borrowers shall have, in the aggregate, no more than eight (8) separate Eurodollar
Loans outstanding at any one time. For purposes of the foregoing, all Eurodollar Loans commencing on the same day of a month (notwithstanding
that such Eurodollar Loans commence in different months) shall be considered a single Eurodollar Loan.

(f)               
All Base Rate Loans shall bear interest from and including the first day of each Monthly Period (or the day on which Eurodollar
Loans are converted to Base Rate Loans as required under Section 3.03(b) or under Article IV (Eurodollar Rate and
Tax Provisions)) to (and including) the next succeeding Monthly Date at the interest rate determined as applicable to such
Base Rate Loan.

    	10

    	 

    

Section
3.04 Default Interest Rate.

(a)               
If all or a portion of (i) the principal amount of any Tranche A-1 Term Loan is not paid when due (whether on the Maturity
Date, by acceleration or otherwise), at the election of the Required Lenders of the Tranche A-1 Term Loan Class (which election
may be rescinded by the Required Lenders of the Tranche A-1 Term Loan Class) such overdue amount shall bear interest at a rate
per annum equal to the rate that would otherwise be applicable thereto plus two percent (2%), (ii) the principal
amount of any Tranche A-2 Term Loan is not paid when due (whether on the Maturity Date, by acceleration or otherwise), at the election
of the Required Lenders of the Tranche A-2 Term Loan Class (which election may be rescinded by the Required Lenders of the Tranche
A-2 Term Loan Class) such overdue amount shall bear interest at a rate per annum equal to the rate that would otherwise
be applicable thereto plus two percent (2%), (iii) the principal amount of any Revolving Loan is not paid when due (whether
on the Maturity Date, by acceleration or otherwise), at the election of the Required Lenders of the Revolving Loan Class (which
election may be rescinded by the Required Lenders of the Revolving Loan Class) such overdue amount shall bear interest at a rate
per annum equal to the rate that would otherwise be applicable thereto plus two percent (2%) or (iv) any Obligation
(other than principal on the Loans) is not paid when due (whether on the Maturity Date, by acceleration or otherwise), at the election
of the Required Lenders of the Revolving Loan Class and the Required Lenders of the Tranche A-1 Term Loan Class (which election
may be rescinded by the Required Lenders of the Revolving Loan Class and the Required Lenders of the Tranche A-1 Term Loan Class)
such overdue amount shall bear interest at a rate per annum equal to the rate then applicable to Base Rate Loans plus
two percent (2%) (the rate in effect plus such two percent (2%) per annum, the “Default Rate”), in each
case, with respect to clauses (i), (ii), (iii) and (iv) above, from the date of such non-payment until such amount is paid in full
(after as well as before judgment).

(b)              
Upon the occurrence and during the continuance of any Event of Default (other than an Event of Default specified in Section
3.04(a)), at the election of the Required Lenders of the Tranche A-1 Term Loan Class (which election may be rescinded by the
Required Lenders of the Tranche A-1 Term Loan Class) the Borrowers shall pay interest (after as well as before judgment) on the
Tranche A-1 Term Loans at a rate per annum equal to the rate then applicable to Base Rate Loans plus two percent (2%) until
such Event of Default is cured or waived.

(c)               
Upon the occurrence and during the continuance of any Event of Default (other than an Event of Default specified in Section
3.04(a)), at the election of the Required Lenders of the Tranche A-2 Term Loan Class (which election may be rescinded by the
Required Lenders of the Tranche A-2 Term Loan Class) the Borrowers shall pay interest (after as well as before judgment) on the
Tranche A-2 Term Loans at a rate per annum equal to the rate then applicable to Base Rate Loans plus two percent (2%) until
such Event of Default is cured or waived.

(d)              
Upon the occurrence and during the continuance of any Event of Default (other than an Event of Default specified in Section
3.04(a)), at the election of the Required Lenders of the Revolving Loan Class (which election may be rescinded by the Required
Lenders of the Revolving Loan Class) the Borrowers shall pay interest (after as well as before judgment) on the Revolving Loans
at a rate per annum equal to the rate then applicable to Base Rate Loans plus two percent (2%) until such Event of Default
is cured or waived.

    	11

    	 

    

Section
3.05 Interest Rate Determination. The Administrative Agent shall determine the interest rate applicable to the Loans
in accordance with the terms of this Agreement, and shall give prompt notice to the Borrowers and the Lenders of such determination,
and its determination thereof shall be conclusive in the absence of manifest error.

Section
3.06 Computation of Interest and Fees. (a) All computations
of interest for Base Rate Loans when the Base Rate is determined by Wells Fargo’s “prime rate” shall be made
on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed. All computations of interest for Eurodollar
Loans and for Base Rate Loans when the Base Rate is determined by the Federal Funds Effective Rate shall be made on the basis
of a 360-day year and actual days elapsed.

(b)              
Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion
thereof, for the day on which the Loan or such portion is paid; provided, that any Loan that is repaid on the same day on
which it is made shall bear interest for one (1) day.

(c)               
Each determination by the Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for
all purposes, absent manifest error.

Section
3.07 Optional Prepayment. (a) Subject to the Intercreditor
Agreement, the Borrowers shall have the right at any time, and from time to time, to prepay the Revolving Loans and the Tranche
A-1 Term Loans (and, following payment in full of the Revolving Loans and the Tranche A-1 Term Loans, the Tranche A-2 Term Loans),
in whole or in part, upon not fewer than three (3) Business Days’ prior written notice to the Administrative Agent from
the Borrowers’ Agent.

(b)              
Any partial prepayment of such Loans shall be in a minimum amount of five hundred thousand Dollars ($500,000) and in integral
multiples of one hundred thousand Dollars ($100,000) in excess thereof.

(c)               
Each notice of prepayment given by the Borrowers’ Agent under this Section 3.07 shall specify the prepayment
date and the portion of the principal amount of such Loans to be prepaid. All prepayments under this Section 3.07 shall
be made by the Borrowers to the Administrative Agent for the account of the applicable Lenders and shall be accompanied by accrued
interest on the principal amount being prepaid to but excluding the date of payment and by any additional amounts required to be
paid under Section 4.05 (Funding Losses).

(d)              
Amounts of principal prepaid under this Section 3.07 shall be allocated by the Administrative Agent as follows, subject
to the terms of the Intercreditor Agreement:

		(i)	Until such time as the (A) Revolving Loans that do not constitute Extended Loans and the Tranche A-1 Term Loans that do not
constitute Extended Loans have been finally and fully paid and (B) Tranche A-2 Loans have been finally and fully paid:

    	12

    	 

    
	

first,
to the payment of all fees then due and payable to the Agents;

second,
to the payment of all costs, fees, expenses and indemnities then due and payable to the Senior Secured Parties, including fees
and expenses of attorneys and Consultants reimbursable hereunder;

third,
subject only to Section 3.02(a), to the payment of all accrued and unpaid interest then due and payable in cash on the Revolving
Loans and the Tranche A-1 Term Loans pro rata among the Revolving Lenders (other than any Defaulting Lender) and the Tranche
A-1 Lenders based on their respective outstanding principal amounts on the date of such prepayment;

fourth,
to the payment of principal of the Revolving Loans and the Tranche A-1 Term Loans pro rata among the Revolving Lenders (other
than any Defaulting Lender) and the Tranche A-1 Lenders based on their respective outstanding principal amounts on the date of
such prepayment; provided that, notwithstanding the foregoing provisions of this clause fourth, that portion of any principal
prepayment under this clause “fourth” that is a Voluntary Permanent Reduction Payment that would otherwise be
allocated to any Tranche A-1 Term Loans that are Extended Loans or Revolving Loans that are Extended Loans pursuant to this clause
fourth shall be deemed to be declined by the Extending Lenders and shall be allocated instead (x) first, to the payment
of principal of the Revolving Loans (excluding any Revolving Loan that is an Extended Loan), along with a corresponding reduction
in the Revolving Loan Commitments of the non-Extending Lenders, and the Tranche A-1 Term Loans (excluding any Tranche A-1 Term
Loan that is an Extended Loan) pro rata among the Revolving Lenders (other than any Defaulting Lender or any Extending Lender)
and the Tranche A-1 Lenders (other than any Extending Lender) based on their respective outstanding principal amounts on the date
of such prepayment, and (y) second, in accordance with clauses fifth, sixth, seventh, eighth,
ninth, and tenth of this Section 3.07(d)(i);

fifth,
to the payment of all accrued and unpaid interest then due and payable in cash on the Revolving Loans pro rata among the
Defaulting Lenders based on their respective outstanding principal amounts on the date of such prepayment;

sixth,
to the payment of principal of Revolving Loans pro rata among the Defaulting Lenders based on their respective outstanding
principal amounts on the date of such prepayment and a corresponding reduction in the Revolving Loan Commitments; provided that,
notwithstanding the foregoing provisions of this clause sixth, that portion of any principal prepayment under this clause
“sixth” that is a Voluntary Permanent Reduction Payment that would otherwise be allocated to any Extending Lender
that is a Revolving Lender pursuant to this clause sixth shall be deemed declined by such Extending Lender and shall be
allocated instead (x) first, to the payment of principal of the Revolving Loans held by Defaulting Lenders (other than any
Revolving Loan that is an Extended Loan), along with a corresponding reduction in the Revolving Loan Commitments of the Defaulting
Lenders that are non-Extending Lenders, pro rata among the Defaulting Lenders (other than any Extending Lender that is a
Defaulting Lender) based on their respective outstanding principal amounts on the date of such prepayment and (y) second,
in accordance with clauses seventh, eighth, ninth and tenth of this Section 3.07(d)(i));

    	13

    	 

    

seventh,
to the payment of all accrued and unpaid interest then due and payable on the Tranche A-2 Term Loans pro rata among the
Tranche A-2 Lenders based on their respective outstanding principal amounts on the date of such prepayment;

eighth,
to the payment of principal of the Tranche A-2 Term Loans pro rata among the Tranche A-2 Lenders based on their respective
outstanding principal amounts on the date of such prepayment;

ninth,
to the payment of principal of the Tranche A-1 Term Loans that are Extended Loans pro rata among the Extending Lenders based
on their respective outstanding principal amounts on the date of such prepayment (accompanied with the prepayment premium required
by Section 3.15 (Prepayment Premium) with respect to such payment); and

tenth,
to the Borrowers.

		(ii)	From and after the date upon which each of the (A) Revolving Loans and the Tranche A-1 Term Loans that do not constitute Extended
Loans have been finally and fully paid and (B) Tranche A-2 Loans have been finally and fully paid:

First,
to the payment of all fees then due and payable to the Agents;

second,
to the payment of all costs, fees, expenses and indemnities then due and payable to the Senior Secured Parties, including fees
and expenses of attorneys and Consultants reimbursable hereunder;

third,
subject only to Section 3.02(a), to the payment of all accrued and unpaid interest then due and payable in cash on the Revolving
Loans and the Tranche A-1 Term Loans pro rata among the Revolving Lenders (other than any Defaulting Lender) and the Tranche
A-1 Lenders based on their respective outstanding principal amounts on the date of such prepayment;

    	14

    	 

    

fourth,
to the payment of principal of the Revolving Loans pro rata among the Revolving Lenders (other than any Defaulting Lender)
based on their respective outstanding principal amounts on the date of such prepayment;

fifth,
to the payment of principal of the Tranche A-1 Term Loans (accompanied with any prepayment premium required by Section 3.15
(Prepayment Premium) with respect to such payment) pro rata among the Tranche A-1 Lenders based on their
respective outstanding principal amounts on the date of such prepayment;

sixth,
to the payment of all accrued and unpaid interest then due and payable in cash on the Revolving Loans pro rata among the
Defaulting Lenders based on their respective outstanding principal amounts on the date of such prepayment;

seventh,
to the payment of principal of Revolving Loans pro rata among the Defaulting Lenders based on their respective outstanding
principal amounts on the date of such prepayment; and

eighth,
to the Borrowers;

provided, that in the case of each of the foregoing clauses
(i) and (ii), after giving effect to any such prepayments that have been applied to one or more Lenders and such prepayments that
have been waived by one or more Lenders, the pro rata allocations among the Lenders shall be adjusted accordingly and the
Administrative Agent shall give notice of the new outstanding balance of the Loans to each Lender.

(e)               
Amounts prepaid pursuant to this Section 3.07 may not be reborrowed provided that, notwithstanding anything to the
contrary set forth elsewhere herein, amounts prepaid in accordance with this Section 3.07 in respect of the Revolving Loans
(other than any prepayment which is a Voluntary Permanent Reduction Payment) may be reborrowed within the limits of Section
2.02(a).

Section
3.08 Mandatory Prepayment. (a) Subject to the Intercreditor
Agreement, the Borrowers shall be required to prepay the Loans:

		(i)	upon receipt by any of the Borrowers of Insurance Proceeds, as required pursuant to Sections 8.07(d)(ii) and (e) (Insurance
and Condemnation Proceeds Accounts);

		(ii)	upon receipt by any of the Borrowers of Condemnation Proceeds, as required pursuant to Sections 8.07(d)(ii) and (e) (Insurance
and Condemnation Proceeds Accounts);

    	15

    	 

    
	

		(iii)	upon receipt of any Project Document Termination Payments, as required pursuant to Section 8.08(c)(ii) (Extraordinary
Proceeds Account);

		(iv)	upon receipt of proceeds of any asset disposal (other than proceeds received from the sale of Products) that are not used for
replacement in accordance with Section 7.02(f)(i) (Negative Covenants – Asset Dispositions), as required pursuant
to Section 8.08(b)(ii) (Extraordinary Proceeds Account); and

		(v)	on each Monthly Date, as required pursuant to Section 8.03(b)(xviii) (Revenue Account).

(b)              
The Borrowers shall provide Administrative Agent (which shall promptly provide such notice to the Lenders) with not less
than four (4) Business Days’ notice of any intended prepayment pursuant to this Section 3.08, such notice to
specify the date and amount of such intended prepayment. All prepayments under this Section 3.08 shall be made by the Borrowers
to the Administrative Agent for the account of the applicable Lenders and shall be accompanied by accrued interest on the principal
amount being prepaid to but excluding the date of payment and by any additional amounts required to be paid under Section 4.05
(Funding Losses).

(c)               
Amounts of principal required to be prepaid under this Section 3.08 shall be allocated by the Administrative Agent
and applied as follows, subject to the Intercreditor Agreement:

		(i)	Until such time as the (A) Revolving Loans that do not constitute Extended Loans and the Tranche A-1 Term Loans that do not
constitute Extended Loans have been finally and fully paid and (B) Tranche A-2 Loans have been finally and fully paid:

first,
to the payment of all fees then due and payable to the Agents;

second,
to the payment of all costs, fees, expenses and indemnities then due and payable to the Senior Secured Parties, including fees
and expenses of attorneys and Consultants reimbursable hereunder;

third,
subject only to Section 3.02(a), to the payment of all accrued and unpaid interest then due and payable in cash on the Revolving
Loans and the Tranche A-1 Term Loans pro rata among the Revolving Lenders (other than any Defaulting Lender) and the Tranche
A-1 Lenders based on their respective outstanding principal amounts on the date of such prepayment;

fourth,
to the payment of principal of the Revolving Loans and the Tranche A-1 Term Loans pro rata among the Revolving Lenders (other
than any Defaulting Lender) and the Tranche A-1 Lenders based on their respective outstanding principal amounts on the date of
such prepayment; provided that, notwithstanding the foregoing provisions of this clause fourth, any principal prepayment
under this clause “fourth” that would otherwise be allocated to any Tranche A-1 Term Loans that are Extended
Loans or Revolving Loans that are Extended Loans pursuant to this clause fourth, may be declined by any Extending Lender
that provides notice to the Administrative Agent at least two (2) Business Days’ prior to the date of such prepayment of
its election to decline such prepayment, and any such payment so declined shall be allocated instead (x) first, to the payment
of principal of the Revolving Loans (excluding any Revolving Loan that is an Extended Loan of a Lender that has declined such payment),
along with a corresponding reduction in the Revolving Loan Commitments of the such Lenders, and the Tranche A-1 Term Loans (excluding
any Tranche A-1 Term Loan that is an Extended Loan of a Lender that has declined such prepayment) pro rata among the Revolving
Lenders (other than any Defaulting Lender or any Extending Lender that has declined such prepayment) and the Tranche A-1 Lenders
(other than any Extending Lender that has declined such prepayment) based on their respective outstanding principal amounts on
the date of such prepayment, and (y) second, in accordance with clauses fifth, sixth, seventh, eighth,
ninth and tenth of this Section 3.08(c)(i);

    	16

    	 

    

fifth,
to the payment of all accrued and unpaid interest then due and payable on the Tranche A-2 Term Loans pro rata among the
Tranche A-2 Lenders based on their respective outstanding principal amounts on the date of such prepayment;

sixth,
to the payment of principal of the Tranche A-2 Term Loans pro rata among the Tranche A-2 Lenders based on their respective
outstanding principal amounts on the date of such prepayment;

seventh,
to the payment of all accrued and unpaid interest then due and payable in cash on the Revolving Loans pro rata among the
Defaulting Lenders based on their respective outstanding principal amounts on the date of such prepayment;

eighth,
to the payment of principal of Revolving Loans pro rata among the Defaulting Lenders based on their respective outstanding
principal amounts on the date of such prepayment and a corresponding reduction in the Revolving Loan Commitments; provided that,
notwithstanding the foregoing provisions of this clause eighth, any principal prepayment under this clause “eighth”
that would otherwise be allocated to any Extending Lender that is a Revolving Lender pursuant to this clause eighth, may
be declined by any Extending Lender that provides notice to the Administrative Agent at least two (2) Business Days’ prior
to the date of such prepayment of its election to decline such prepayment, and any such payment so declined shall be allocated
instead (x) first, to the payment of principal of the Revolving Loans held by Defaulting Lenders (other than any Revolving
Loan that is an Extended Loan held by a Lender that has declined such payment), along with a corresponding reduction in the Revolving
Loan Commitments of the Defaulting Lenders that have not declined such prepayment, pro rata among the Defaulting Lenders
(other than any Extending Lender that is a Defaulting Lender that has declined such prepayment) based on their respective outstanding
principal amounts on the date of such prepayment and (y) second, in accordance with clauses ninth and tenth
of this Section 3.08(c)(i));

    	17

    	 

    

ninth,
to the payment of principal of the Tranche A-1 Term Loans that are Extended Loans pro rata among the Tranche A-1 Lenders
based on their respective outstanding principal amounts on the date of such prepayment (accompanied with the prepayment premium
required by Section 3.15 (Prepayment Premium) with respect to such payment); and

tenth,
to the Borrowers.

		(ii)	From and after the date upon which each of the (A) Revolving Loans and the Tranche A-1 Term Loans that do not constitute Extended
Loans have been finally and fully paid and (B) Tranche A-2 Loans have been finally and fully paid:

First,
to the payment of all fees then due and payable to the Agents;

second,
to the payment of all costs, fees, expenses and indemnities then due and payable to the Senior Secured Parties, including fees
and expenses of attorneys and Consultants reimbursable hereunder;

third,
subject only to Section 3.02(a), to the payment of all accrued and unpaid interest then due and payable in cash on the Revolving
Loans and the Tranche A-1 Term Loans pro rata among the Revolving Lenders (other than any Defaulting Lender) and the Tranche
A-1 Lenders based on their respective outstanding principal amounts on the date of such prepayment;

fourth,
to the payment of principal of the Revolving Loans pro rata among the Revolving Lenders (other than any Defaulting Lender)
based on their respective outstanding principal amounts on the date of such prepayment;

    	18

    	 

    

fifth,
to the payment of principal of the Tranche A-1 Term Loans (accompanied with any prepayment premium required by Section 3.15
(Prepayment Premium) with respect to such payment) pro rata among the Tranche A-1 Lenders based on their
respective outstanding principal amounts on the date of such prepayment;

sixth,
to the payment of all accrued and unpaid interest then due and payable in cash on the Revolving Loans pro rata among the
Defaulting Lenders based on their respective outstanding principal amounts on the date of such prepayment;

seventh,
to the payment of principal of Revolving Loans pro rata among the Defaulting Lenders based on their respective outstanding
principal amounts on the date of such prepayment; and

eighth,
to the Borrowers.

		(iii)	Any mandatory prepayment under this Section 3.08 which results in the prepayment of principal of the Revolving Loans
in accordance with clause fourth, eighth, ninth or eleventh of Section 3.08(d)(i)
or clause fourth or clause seventh of Section 3.08(d)(ii) shall, notwithstanding anything
to the contrary set forth elsewhere in this Agreement (other than each Extending Lender’s right to waive a reduction of its
Commitments pursuant to this Section 3.08), result in a corresponding reduction in the Revolving Loan Commitments of the
Revolving Lenders;

provided, that in the case of each of the foregoing clauses
(i), (ii) and (iii), after giving effect to any such prepayments that have been applied to one or more Lenders and such prepayments
that have been waived by one or more Lenders, the pro rata allocations among the Lenders shall be adjusted accordingly and
the Administrative Agent shall give notice of the new outstanding balance of the Loans to each Lender.

(d)              
Amounts prepaid pursuant to this Section 3.08 may not be reborrowed.

Section
3.09 Time and Place of Payments. (a) The Borrowers
shall make each payment (including any payment of principal of or interest on any Loan or any Fees or other Obligations) hereunder
and under any other Financing Document without setoff, deduction or counterclaim not later than 12:00 noon New York City time
on the date when due in Dollars in immediately available funds to the Administrative Agent at the account as may from time to
time be specified by the Administrative Agent to the Borrowers. Funds received after 12:00 noon New York City time shall be deemed
to have been received by the Administrative Agent on the next succeeding Business Day.

(b)              
The Administrative Agent shall promptly remit in immediately available funds to each Senior Secured Party its share, if
any, of any payments received by the Administrative Agent for the account of such Senior Secured Party, in accordance with the
terms hereof and subject to the terms of the Intercreditor Agreement.

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(c)               
Whenever any payment (including any payment of principal of or interest on any Loan or any Fees or other Obligations) hereunder
or under any other Financing Document shall become due, or otherwise would occur, on a day that is not a Business Day, such payment
shall (except as otherwise required by the proviso to the definition of “Interest Period” with respect to Eurodollar
Loans) be made on the immediately succeeding Business Day, and such increase of time shall in such case be included in the computation
of interest or Fees, if applicable.

Section
3.10 Fundings and Payments Generally. (a) Unless the
Administrative Agent has received notice from the Borrowers prior to the date on which any payment is due to the Administrative
Agent for the account of the Lenders hereunder that the Borrowers will not make such payment, the Administrative Agent may assume
that the Borrowers have made such payment on such date in accordance with this Agreement and may, in reliance upon such assumption,
distribute to the Lenders the amount due. If the Borrowers have not in fact made such payment, then each of the Lenders severally
agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender in immediately available
funds with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date
of payment to the Administrative Agent, at the greater of (i) the Federal Funds Effective Rate and (ii) a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank compensation. A notice of the Administrative Agent
to any Lender with respect to any amount owing under this Section 3.10(a) shall be conclusive, absent manifest error.

(b)              
Nothing herein shall be deemed to obligate any Lender to obtain funds for any Loan in any particular place or manner or
to constitute a representation by any Lender that it has obtained or will obtain funds for any Loan in any particular place or
manner.

(c)               
The Borrowers hereby authorize each Lender, if and to the extent payment owed to such Lender is not made when due under
this Agreement or under the Notes held by such Lender, to charge from time to time against any or all of any Borrower’s accounts
with such Lender (other than, in the event that the Account Bank is also a Lender, any Project Account) any amount so due.

Section
3.11 Fees. (a) From and including the Closing Date
until the Maturity Date, the Borrowers agree to pay to the Administrative Agent, for the account of the Revolving Lenders, on
each Monthly Date, a commitment fee (a “Commitment Fee”) equal to two percent (2.0%) per annum on the
average daily amount by which the Aggregate Revolving Loan Commitment exceeds the outstanding amount of Revolving Loans during
the calendar month then ended. All Commitment Fees shall be computed on the basis of the actual number of days elapsed in a year
of 365 or 366 days, as pro-rated for any partial quarter, as applicable.

(b)              
On the Closing Date, the Borrowers paid to the Administrative Agent, for the account of the Revolving Lenders, a facility
fee equal to two percent (2.0%) of the Aggregate Revolving Loan Commitment.

    	20

    	 

    

(c)               
On the Closing Date, the Borrowers paid to the Administrative Agent, for the account of the Tranche A-1 Lenders, a facility
fee equal to two percent (2.0%) of the Aggregate Term Commitment for Tranche A-1 Term Loans.

(d)              
On the Closing Date, the Borrowers paid to the Administrative Agent, for the account of the Administrative Agent, a structuring
fee equal to one percent (1.0%) of the Aggregate Revolving Loan Commitment.

(e)               
On the Restatement Effective Date, the Borrowers shall pay to the Administrative Agent, for the account of each Consenting
Lender, a consent fee equal to a quarter of a percent (0.25%) of the Commitments held by such Consenting Lender.

(f)               
Each Borrower agrees to pay to the Administrative Agent, for the account of the Agents, additional fees in the amounts and
at the times from time and time agreed to in writing by the Borrowers and the respective Agent, including pursuant to the Fee Letters.

(g)              
All Fees shall be paid on the dates due, in immediately available funds. Once paid, none of the Fees shall be refundable
under any circumstances.

Section
3.12 Pro rata Treatment. (a) Except as otherwise expressly
provided herein (including Section 4.01 (Eurodollar Rate Lending Unlawful), Section 2.07 (Termination or Reduction
of Commitments), Section 2.08 (Defaulting Lenders)), Section 3.07 (Optional Prepayment) and
Section 3.08 (Mandatory Prepayment), each Funding of Revolving Loans shall be allocated by the Administrative Agent
pro rata among the Revolving Lenders in accordance with their respective Revolving Loan Commitment Availability Percentages
and each reduction of commitments of any type shall be allocated by the Administrative Agent pro rata among the applicable
Lenders in accordance with their respective applicable Commitment Percentages.

(b)              
Except as required under Section 2.08 (Defaulting Lenders), Section 3.07 (Optional Prepayment),
Section 3.08 (Mandatory Prepayment) or Article IV (Eurodollar Rate and Tax Provisions), each payment
or prepayment of principal of the Loans shall be allocated by the Administrative Agent pro rata among the applicable Lenders
in accordance with the respective principal amounts of their outstanding Loans of the type being repaid, each payment of interest
on the Loans shall be allocated by the Administrative Agent pro rata among the applicable Lenders in accordance with the
respective interest amounts outstanding on their outstanding Loans of the type in respect of which interest is being paid, and
each payment of fees on the Commitments shall be allocated by the Administrative Agent pro rata among the applicable Lenders
in accordance with their respective Commitments (or Revolving Loan Commitment Availability Percentages, in the case of Commitment
Fees), of the type to which such fees relate.

(c)               
Each Lender agrees that in computing such Lender’s portion of any Funding to be made hereunder, the Administrative
Agent may, in its discretion, round each Lender’s percentage of such Funding to the next higher or lower whole Dollar amount.

    	21

    	 

    

Section
3.13 Sharing of Payments. (a) If any Lender shall
obtain any payment or other recovery (whether voluntary, involuntary, by application of setoff or otherwise) on account of any
Loan (other than pursuant to the terms of Article IV (Eurodollar Rate and Tax Provisions)) in excess of its pro
rata share of payments then or therewith obtained by all Lenders (other than as a result of the waiver by any Lender of its
right to received payment pursuant to Section 3.07 or Section 3.08) holding Loans of such type, such Lender shall
purchase from the other Lenders such participations in Loans made by them as shall be necessary to cause such purchasing Lender
to share the excess payment or other recovery ratably with each of them; provided, that if all or any portion of the excess payment
or other recovery is thereafter recovered from such purchasing Lender, the purchase shall be rescinded and each Lender that has
sold a participation to the purchasing Lender shall repay to the purchasing Lender the purchase price to the ratable extent of
such recovery together with an amount equal to such selling Lender’s ratable share (according to the proportion of (x) the
amount of such selling Lender’s required repayment to the purchasing Lender to (y) the total amount so recovered from the
purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in respect of the total amount so
recovered. Each Borrower agrees that any Lender so purchasing a participation from another Lender pursuant to this Section
3.13 may, to the fullest extent permitted by law, exercise all its rights of payment (including pursuant to Section 11.15
(Right of Setoff)) with respect to such participation as fully as if such Lender were the direct creditor of the Borrowers
in the amount of such participation.

(b)              
If under any applicable bankruptcy, insolvency or other similar law, any Lender receives a secured claim in lieu of a setoff
to which this Section 3.13 applies, such Lender shall, to the extent practicable, exercise its rights in respect of such
secured claim in a manner consistent with the rights of the Lenders entitled under this Section 3.13 to share in the benefits
of any recovery on such secured claim.

Section
3.14 Termination of Interest Rate Protection Agreement in Connection with Any Prepayment. The Borrowers shall, in
connection with any prepayment made by the Borrowers pursuant to Section 3.07 (Optional Prepayment) or Section
3.08 (Mandatory Prepayment), terminate an aggregate notional amount under the Interest Rate Protection Agreements (if
any) equal to the amount (if any) by which the aggregate notional amount under the Interest Rate Protection Agreements would exceed
the aggregate outstanding principal amount of the Loans immediately after giving effect to such prepayment; and in each case,
such termination shall be made within five (5) Business Days of the date of such prepayment (or, to the extent that the aggregate
notional amount under the Interest Rate Protection Agreements exceeds the aggregate outstanding principal of the Loans by no more
than ten percent (10%), within thirty (30) days following such prepayment). The amount of any Swap Termination Value due in respect
of the Interest Rate Protection Agreements terminated in accordance with the immediately foregoing sentence shall be made by the
Borrowers from amounts available with which to make such prepayment.

    	22

    	 

    

Section
3.15 Prepayment Premium. In the event any repayment or prepayment of the Extended Loans that are Tranche A-1 Loans
is made prior to the Maturity Date of the Extended Loans (but excluding any repayments or prepayments (1) of any loans held by
an Affiliated Lender or (2) as a result of any mandatory prepayment pursuant to Section 3.08(a) unless such prepayment
results from an asset sale or disposition that is not permitted under Section 7.02(f)), including as a result of the termination
of this Agreement and repayment of the Obligations at any time prior to the Maturity Date of the Extended Loans, for any reason,
including (i) termination upon the election of the Required Lenders to terminate after the occurrence and during the continuation
of an Event of Default (or, in the case of the occurrence of any Event of Default described in Section 9.01(h) with respect
to any Borrower, automatically upon the occurrence thereof), (ii) foreclosure and sale of Collateral, (iii) sale of the Collateral
in any insolvency proceeding, or (iv) restructure, reorganization, or compromise of the Obligations by the confirmation of a plan
of reorganization or any other plan of compromise, restructure, or arrangement in any insolvency proceeding, then, in view of
the impracticability and extreme difficulty of ascertaining the actual amount of damages to the Extending Lenders or profits lost
by the Extending Lenders as a result of such early payment or termination, and by mutual agreement of the Borrowers and the Extending
Lenders as to a reasonable estimation and calculation of the lost profits or damages of the Extending Lenders, the Borrowers shall
pay, subject to the Intercreditor Agreement, pro rata among the Extending Lenders that hold Tranche A-1 Term Loans based
on their respective outstanding principal amounts on the date of such prepayment the Make-Whole Amount, measured as of the date
of such payment or termination. Borrowers’ Agent shall calculate the Make-Whole Amount and provide such calculation to Administrative
Agent and Extending Lenders at least two (2) Business Days before the date any such prepayment is made; provided that such calculation
shall be subject to the review and approval of the Extending Lenders. In the event Extending Lenders do not object to Borrowers’
Agent’s calculation of the Make-Whole Amount within thirty (30) days of receipt thereof, such calculation shall be deemed
approved by Extending Lenders. Notwithstanding the foregoing, or the pendency of any objection to Borrowers’ Agent’s
calculation of the Make-Whole Amount, Administrative Agent shall disburse any such prepayment (together with the Make-Whole Amount
which has been delivered to Administrative Agent by Borrowers at the time of the prepayment) to Extending Lenders upon Administrative
Agent’s receipt thereof. In no event shall the Administrative Agent have any duty, responsibility or liability with respect
to the calculations of the Make-Whole Amount, which calculation shall be the sole responsibility of Borrowers’ Agent.

For the purposes of this Section 3.15,
“Make-Whole Amount” means, as of any date of determination, with respect to any payment of the Extended Loans
that are Tranche A-1 Loans, an amount equal to the “present value” as of the date of such payment of all interest payments
which would have accrued, from the date of such payment through the Maturity Date of the Extended Loans, on an amount equal to
such Tranche A-1 Loans being paid, such interest to be calculated on such amount at the rate of interest in effect on such payment
date; “present value” shall be computed using a discount rate, applied quarterly, equal to the Treasury Rate
as of such prepayment date plus 50 basis points; and “Treasury Rate” shall mean, as of any prepayment date,
the yield to maturity as of such prepayment date of United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15 (519) that has become publicly available at least two Business
Days prior to the prepayment date (or, if such Statistical Release is no longer published, any publicly available source of similar
market data)) most nearly equal to the period from the prepayment date to the Maturity Date of the Extended Loans; provided, however,
that if the period from the prepayment date to Maturity Date of the Extended Loans is not equal to the constant maturity of a United
States Treasury security for which a weekly average yield is given, the Treasury Rate shall be obtained by linear interpolation
(calculated to the nearest one-twelfth of a year) from the weekly average yields of United States Treasury securities for which
such yields are given, except that if the period from the prepayment date to Maturity Date of the Extended Loans is less than one
year, the weekly average yield on actually traded United States Treasury securities adjusted to a constant maturity of one year
shall be used.

 

    	23

    	 

    

ARTICLE
IV

EURODOLLAR RATE AND TAX PROVISIONS

Section
4.01 Eurodollar Rate Lending Unlawful. (a) If any
Lender reasonably determines (which determination shall, upon notice thereof to the Borrowers and the Administrative Agent, be
conclusive and binding on the Borrowers absent manifest error) that the introduction of or any change in or in the interpretation
of any Law after the Closing Date makes it unlawful, or any central bank or other Governmental Authority asserts after the Closing
Date that it is unlawful, for such Lender to make, maintain or fund any Loan as a Eurodollar Loan, the obligations of such Lender
to make, maintain or fund any Loan as a Eurodollar Loan shall, upon such determination, forthwith be suspended until such Lender
shall notify the Borrowers and the Administrative Agent that the circumstances causing such suspension no longer exist, and all
Eurodollar Loans of such Lender shall automatically convert into Base Rate Loans at the end of the then-current Interest Periods
with respect thereto or sooner, if required by such Law or assertion. Upon any such conversion the Borrowers shall pay any accrued
interest on the amount so converted and, if such conversion occurs on a day other than the last day of the then-current Interest
Period for such affected Eurodollar Loans, such Lender shall be entitled to make a request for, and the Borrowers shall pay, compensation
for breakage costs under Section 4.05 (Funding Losses).

(b)              
If such Lender notifies the Borrowers and the Administrative Agent that the circumstances giving rise to the suspension
described in Section 4.01(a) no longer apply, the Borrowers may elect (by delivering an Interest Period Notice) to convert
the principal amount of any such Base Rate Loan to a Eurodollar Loans in accordance with this Agreement.

Section
4.02 Inability to Determine Eurodollar Rates. (a)
In the event, and on each occasion, that on or before the day that is three (3) Business Days prior to the commencement of any
Interest Period for any Eurodollar Loan, (A) the Administrative Agent shall have determined in good faith that adequate and reasonable
means do not exist for ascertaining LIBOR or (B) the Required Lenders shall have determined in good faith and notified the Administrative
Agent in writing that (i) Dollar deposits in the amount of such Loan and with an Interest Period similar to such Interest Period
are not generally available in the London interbank market, or (ii) the rate at which such Dollar deposits are being offered will
not adequately and fairly reflect the cost to any Lender of making, maintaining or funding the principal amount of such Loan during
such Interest Period, then in either case the Administrative Agent shall forthwith notify the Borrowers and the Lenders of such
determination, whereupon each such Eurodollar Loan will automatically, on the last day of the then-existing Interest Period for
such Eurodollar Loan, convert into a Base Rate Loan. In the event of any such determination pursuant to Section 4.02(a)(A)
or (B)(i), any Funding Notice delivered by the Borrowers shall be deemed to be a request for a Base Rate Loan until the Administrative
Agent or the Required Lenders, as the case may be, determines that the circumstances giving rise to such notice no longer exist.
In the event of any determination pursuant to Section 4.02(a)(B)(ii), each affected Lender shall, and is hereby authorized
by the Borrowers to, fund its portion of the Loans as a Base Rate Loan. Each determination by the Administrative Agent or the
Required Lenders, as the case may be, hereunder shall be conclusive absent manifest error.

    	24

    	 

    

(b)              
Upon the Administrative Agent’s or the Required Lenders’ determination, as the case may be, that the condition
that was the subject of a notice under Section 4.02(a) has ceased, the Administrative Agent shall forthwith notify the Borrower
and the Lenders of such determination, whereupon the Borrowers may elect (by delivering an Interest Period Notice) to convert any
such Base Rate Loan to a Eurodollar Loan on the last day of the then-current Monthly Period in accordance with this Agreement.

Section
4.03 Increased Eurodollar Loan Costs. If after the Closing Date, the adoption of any applicable Law or any change
therein, or any change in the interpretation or administration thereof by any Governmental Authority charged with the interpretation
or administration thereof, or compliance by any Lender (or its Eurodollar Office) with any request or directive (whether or not
having the force of law) of any Governmental Authority would increase the cost (other than with respect to Taxes, which are addressed
in Section 4.07 (Taxes)) to such Lender of, or result in any reduction in the amount of any sum receivable by such
Lender (whether of principal, interest or any other amount) in respect of, making, maintaining or funding (or of its obligation
to make, maintain or fund) the Loans as Eurodollar Loans, then the Borrowers agree to pay directly to such Lender the amount of
any such increase or reduction. Such Lender shall promptly notify the Administrative Agent and the Borrowers in writing of the
occurrence of any such event, such notice to state in reasonable detail the reasons (including the basis for determination) therefor
and the additional amount required to compensate fully such Lender for such increased cost or reduced amount. Such additional
amounts shall be payable by the Borrowers directly to such Lender within thirty (30) days of delivery of such notice, and such
notice shall be binding on the Borrowers absent manifest error.

Section
4.04 Obligation to Mitigate. (a) Each Lender agrees
after it becomes aware of the occurrence of an event that would entitle it to give notice pursuant to Section 4.01 (Eurodollar
Rate Lending Unlawful), 4.03 (Increased Eurodollar Loan Costs), or 4.06 (Increased Capital Costs)
or to receive additional amounts pursuant to Section 4.07 (Taxes), such Lender shall use reasonable efforts
to make, fund or maintain its affected Loan through another lending office if as a result thereof the increased costs would be
avoided or materially reduced or the illegality would thereby cease to exist and if, in the opinion of such Lender, the making,
funding or maintaining of such Loan through such other lending office would not be disadvantageous to such Lender, contrary to
such Lender’s normal banking practices or violate any applicable Law.

(b)              
No change by a Lender in its Domestic Office or Eurodollar Office made for such Lender’s convenience shall result
in any increased cost to the Borrowers.

(c)               
If any Lender demands compensation pursuant to Section 4.03 (Increased Eurodollar Loan Costs) or 4.06 (Increased
Capital Costs) with respect to any Eurodollar Loan, the Borrowers may, at any time upon at least three (3) Business Day’s
prior notice to such Lender through the Administrative Agent, elect to convert such Loan into a Base Rate Loan. Thereafter, unless
and until such Lender notifies the Borrowers that the circumstances giving rise to such notice no longer apply, all such Eurodollar
Loans by such Lender shall bear interest as Base Rate Loans. If such Lender notifies the Borrowers that the circumstances giving
rise to such notice no longer apply, the Borrowers may elect (by delivering an Interest Period Notice) to convert the principal
amount of each such Base Rate Loan to a Eurodollar Loans in accordance with this Agreement.

    	25

    	 

    

Section
4.05 Funding Losses. In the event that any Lender incurs any loss or expense (including any loss or expense incurred
by reason of the liquidation or redeployment of deposits or other funds acquired by such Lender to make, continue or maintain
any portion of the principal amount of any Loan as a Eurodollar Loan, and any customary administrative fees charged by such Lender
in connection with the foregoing, but excluding any lost profits) as a result of (a) any conversion or repayment or prepayment
of the principal amount of any Loans on a date other than the scheduled last day of the Interest Period applicable thereto, whether
pursuant to Sections 3.07 (Optional Prepayment), 3.08 (Mandatory Prepayment), 4.01(a) (Eurodollar
Rate Lending Unlawful) or otherwise or (b) the Borrowers failing to make a Funding in accordance with any Funding Notice;
then, upon the written notice (including the basis for determination) of such Lender to the Borrowers (with a copy to the Administrative
Agent), the Borrowers shall, within thirty (30) days of receipt thereof, pay to the Administrative Agent for the account of such
Lender such amount as will (in the reasonable determination of such Lender) reimburse such Lender for such loss or expense. Such
written notice shall be binding on the Borrowers absent manifest error.

Section
4.06 Increased Capital Costs. If after the Closing Date any change in, or the introduction, adoption, effectiveness,
interpretation, reinterpretation or phase-in of, any applicable Law or guideline, or request (whether or not having the force
of law) of any Governmental Authority affects the amount of capital required to be maintained by any Lender, and such Lender reasonably
determines that the rate of return on its capital as a consequence of its Loan is reduced to a level below that which such Lender
could have achieved but for the occurrence of any such circumstance then, in any such case upon notice from time to time by such
Lender to the Borrowers, the Borrowers shall pay within thirty (30) days after such demand directly to such Lender additional
amounts sufficient to compensate such Lender for such reduction in rate of return. A statement of such Lender as to any such additional
amount or amounts (including the basis for determination) shall be binding on the Borrowers absent manifest error.

Section
4.07 Taxes.

(a)               
Payments Free of Taxes. Any and all payments by or on account of any Obligations shall be made free and clear of,
and without deduction for, any Taxes, unless required by Law; provided, that if any Borrower shall be required to deduct any Indemnified
Taxes from any such payment, then (i) the sum payable shall be increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section 4.07) the Agent or Lender (as the case may
be) receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrowers shall make
such deductions and (iii) the Borrowers shall pay the full amount deducted to the relevant Governmental Authority in accordance
with applicable Law.

    	26

    	 

    

(b)              
Payment of Other Taxes by the Borrowers. In addition, the Borrowers shall timely pay any Indemnified Taxes arising
from any payment made under any Financing Document or from the execution, delivery or enforcement of, or otherwise with respect
to, any Financing Document and not collected by withholding at the source as contemplated by Section 4.07(a) to the
relevant Governmental Authority in accordance with applicable Law.

(c)               
Indemnification by the Borrowers. The Borrowers shall indemnify each Agent and each Lender, within thirty (30) days
after written demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on
or attributable to amounts payable under this Section 4.07) paid by such Agent or Lender, as the case may be, and any penalties,
interest, additions to tax and reasonable expenses arising therefrom or with respect thereto (other than those resulting from the
gross negligence or willful misconduct of such Agent or Lender), whether or not such Indemnified Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability (including
the basis of determination) delivered to the Borrowers by a Lender or Agent, as the case may be, shall be conclusive absent manifest
error.

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

(e)               
Foreign Lenders. Each Lender (including any Participant and any other Person to which any Lender transfers its interests
in this Agreement as provided under Section 11.03 (Assignments)) that is not a United States Person (a “Non-U.S.
Lender”) shall deliver to the Borrowers and the Administrative Agent two (2) copies of U.S. Internal Revenue Service
Form W-8ECI, Form W-8BEN, Form W-8EXP or Form W-8IMY (with supporting documentation), or any subsequent versions thereof or successors
thereto, properly completed and duly executed by such Non-U.S. Lender and claiming, to the extent applicable, complete exemption
from, or a reduced rate of, U.S. federal withholding tax on all payments of interest by the Borrowers under the Financing Documents,
together with, in the case of a Non-U.S. Lender that is relying on an exemption pursuant to Section 871(h) or 881(c) of the Code,
a statement substantially in the form of Exhibit 4.07. Such forms shall be delivered by each Non-U.S. Lender on or before
the date it becomes a party to this Agreement. In addition, each Non-U.S. Lender shall deliver such forms promptly upon the obsolescence
or invalidity of any form previously delivered by such Non-U.S. Lender. Each Non-U.S. Lender shall promptly notify the Borrowers
and the Administrative Agent at any time it determines that it is no longer in a position to provide any previously delivered certificate
to the Borrowers (or any other form of certification adopted by U.S. taxing authorities for such purpose). The Borrowers shall
not be obligated to pay any additional amounts in respect of U.S. federal income taxes pursuant to this Section 4.07 (or
make an indemnification payment pursuant to this Section 4.07) to any Lender (or any Participant or other Person to which
any Lender transfers its interests in this Agreement as provided under Section 11.03 (Assignments)) if the obligation
to pay such additional amounts (or such indemnification) would not have arisen but for a failure by such Lender to comply with
this Section 4.07(e).

    	27

    	 

    

(f)               
In no event shall the Administrative
Agent or the Collateral Agent have any duty, obligation or liability with respect to the payment of any Taxes.

ARTICLE
V

REPRESENTATIONS AND WARRANTIES

In order to induce each Agent, each Lender
and each other party hereto (other than the Borrowers and the Borrowers’ Agent) to enter into this Agreement and to induce
each Lender to make the Loans hereunder, each Borrower represents and warrants to each Agent and each Lender as set forth in this
Article V on the date hereof, on the Closing Date, on the date of each Funding Notice and on each Funding Date (in each
case, except to the extent such representations and warranties expressly relate to a future date or as otherwise provided in Article
VI (Conditions Precedent)).

Section
5.01 Organization; Power and Compliance with Law. Each of the Borrowers (a) is a limited liability company duly
formed, validly existing and in good standing under the laws of the State of Delaware, (b) is duly qualified to do business as
is now being conducted and as is proposed to be conducted by such Borrower and is in good standing as a foreign limited liability
company in each jurisdiction where the nature of its business requires such qualification (other than any such failure to be so
qualified or in good standing that could not reasonably be expected to have a Material Adverse Effect) and (c) has all requisite
limited liability company power and authority required as of the date this representation is made or deemed repeated to enter
into and perform its obligations under each Transaction Document to which it is a party and to conduct its business as currently
conducted by it.

Section
5.02 Due Authorization; Non-Contravention. The execution, delivery and performance by each of the Borrowers of each
Transaction Document to which it is a party are within such Borrower’s limited liability company powers, have been duly
authorized by all necessary limited liability company action, and do not:

(a)               
contravene such Borrower’s Organic Documents (including its Borrower LLC Agreement);

(b)              
contravene in any material respect any Law binding on or affecting such Borrower;

(c)               
(i) in the case of any Financing Document, contravene any Contractual Obligation binding on or affecting such Borrower or
(ii) in the case of any Project Document, contravene any Contractual Obligation binding on or affecting such Borrower (other than
in the case of this Section 5.02(c)(ii) any contravention which could not reasonably be expected to have a Material Adverse
Effect);

(d)              
require any consent or approval under such Borrower’s Organic Documents that has not been obtained;

    	28

    	 

    

(e)               
require any consent or approval under any Contractual Obligations binding on or affecting such Borrower other than any approvals
or consents which have been obtained (and, in the case only of the execution, delivery and performance of the Project Documents,
any other approvals or consents the failure of which to obtain could not reasonably be expected to have a Material Adverse Effect);
or

(f)               
result in, or require the creation or imposition of, any Lien on any of such Borrower’s properties other than Permitted
Liens.

Section
5.03 Governmental Approvals.

(a)               
All Governmental Approvals that are required to be obtained by any Borrower in connection with (i) the due execution, delivery
and performance by such Borrower of the Financing Documents to which it is a party and (ii) the grant by the Borrowers and the
Pledgor of the Liens granted under the Security Documents and the validity, perfection and enforceability thereof have been obtained,
are in full force and effect, are properly in the name of the appropriate Person, and are final and Non-Appealable.

(b)              
All Necessary Project Approvals are in full force and effect, are properly in the name of the appropriate Person, and are
final and Non-Appealable except as a result of the Cold Shutdown of the Madera Plant.  There is no action, suit, investigation
or proceeding pending or to the knowledge of each Borrower, threatened that could reasonably be expected to result in the modification,
rescission, termination or suspension of any Necessary Project Approval that could reasonably be expected to have
a Material Adverse Effect.

(c)               
The information set forth in each application (including any updates or supplements thereto) submitted by or on behalf of
any Borrower in connection with each Necessary Project Approval was accurate and complete in all material respects at the time
of submission and continues to be accurate in all material respects and complete in all respects to the extent required for the
continued effectiveness of such Necessary Project Approval.

Section
5.04 Investment Company Act. None of the Borrowers is, and after giving effect to the Loans and the application
of the proceeds of the Loans as described herein none of the Borrowers will be, an “investment company” or a company
“controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as
amended.

Section
5.05 Validity of Financing Documents. Each Financing Document to which any Borrower is a party has been duly authorized,
validly executed and delivered, and constitutes the legal, valid and binding obligations of such Borrower enforceable in accordance
with its respective terms, except as the enforceability hereof or thereof may be limited by (a) bankruptcy, insolvency, reorganization,
or other similar laws affecting the enforcement of creditors’ rights generally and (b) general equitable principles (whether
considered in a proceeding in equity or at law).

Section
5.06 Financial Information. Each of the financial statements delivered pursuant to Section 6.01(h) (Conditions
to Closing – Financial Statements) and Section 7.03 (Reporting Requirements) has been prepared in
accordance with GAAP, and fairly presents in all material respects the consolidated financial condition of the Borrowers as at
the dates thereof and the results of their operations for the period then ended (subject, in the case of unaudited financial statements,
to changes resulting from audit and normal year-end adjustments and the absence of footnotes).

    	29

    	 

    

Section
5.07 No Material Adverse Effect. Since April 16, 2010 no Material Adverse Effect has occurred and is continuing.

Section
5.08 Project Compliance. (a) Each Plant is owned and maintained in material compliance with all applicable Laws
and the requirements of all Necessary Project Approvals.

(b)              
Each Plant is owned and maintained in compliance in all material respects with all of the Borrowers’ Contractual Obligations
(including the Project Documents applicable to such Plant, taking into account any cure or grace periods thereunder and the Borrower’s
right to replace Project Documents as set forth in Section 9.01(i) (Events of Default – Project Document Defaults;
Termination)) (except, (i) in the case of Contractual Obligations other than Project Documents, to the extent such failure
to comply could not reasonably be expected to result in a Material Adverse Effect with respect to such Plant or Borrower and (ii)
the cessation of operations and Cold Shutdown of the Madera Plant).

Section
5.09 Litigation. (a) No action, suit, proceeding or
investigation has been instituted or threatened against any of Pacific Holding, the Pledgor, or any Plant or Borrower (including
in connection with any Necessary Project Approval) that, individually or in the aggregate, has had or could reasonably be expected
to have a Material Adverse Effect on any Plant or Borrower; and

(b)              
no action, suit, proceeding or investigation has been instituted or threatened against any Major Project Party that is party
to any Project Document with Pacific Holding or that relates to any Borrower or Plant that, individually or in the aggregate, has
had or could reasonably be expected to have a Material Adverse Effect.

Section
5.10 Sole Purpose Nature; Business. None of the Borrowers has conducted nor is conducting any business or activities
other than businesses and activities relating to the ownership, development, testing, financing, construction, operation and maintenance
of the Project as contemplated by the Transaction Documents.

Section
5.11 Contracts.

(a)               
All contracts, agreements, instruments, letters, understandings, or other documentation to which any Borrower is a party
or by which it or any of its properties is bound as of the Original Closing Date (other than the Existing Financing Documents),
including the Project Documents (including all documents amending, supplementing, interpreting or otherwise modifying or clarifying
such agreements and instruments) are listed in Schedule 5.11(i). All material contracts, agreements, instruments, letters,
understandings, or other documentation to which any Borrower entered into after the Original Closing Date (other than the Financing
Documents and the Existing Financing Documents), including any such Project Documents (including all documents amending, supplementing,
interpreting or otherwise modifying or clarifying such agreements and instruments), are listed in Schedule 5.11(ii), provided,
that for the purposes of this Section 5.11(a), any such contract, agreement, instrument, letter, understanding, or other
document that would reasonably be expected to provide for aggregate payments to or from, or aggregate liabilities of, the Loan
Parties, equal to or in excess of five hundred thousand Dollars ($500,000) and each Project Document entered into since June 25,
2010 shall be deemed to be material.

    	30

    	 

    

(a)               
All Necessary Project Contracts are in full force and effect except such Necessary Projects Contracts the invalidity of
which could not reasonably be expected to have a Material Adverse Effect.

(b)              
As of any date (after the Closing Date) on which this representation is made or deemed repeated, there are no material contracts,
agreements, instruments, or documents between any Borrower and any other Person relating to any Borrower or the Project other than
(i) the Transaction Documents, (ii) the agreements listed in Schedule 5.11, and (iii) any other agreements permitted by
this Agreement.

Section
5.12 Collateral. (a) The Collateral includes all of
the Equity Interests in and all of the tangible and intangible assets of each Borrower (except, with respect to any asset the
assignment of which is not permitted, as otherwise expressly provided in the applicable Security Agreement).

(b)              
The respective Liens and security interests granted to the Collateral Agent (for the benefit of the Senior Secured Parties)
pursuant to the Security Documents in effect on each date this representation is made or deemed repeated (x) immediately prior
to the Restatement Effective Date, (i) constituted, as to personal property included in the Collateral, a valid first-priority
security interest in such personal property and (ii) constituted, as to the Mortgaged Property included in the Collateral, a valid
first-priority Lien of record in the Mortgaged Property, in each case subject only to Permitted Liens and (y) as of the Restatement
Effective Date and thereafter, subject to the Intercreditor Agreement (i) constitute, as to personal property included in the Collateral,
a valid security interest in such personal property and (ii) constitute, as to the Mortgaged Property included in the Collateral,
a valid Lien of record in the Mortgaged Property, in each case subject only to Permitted Liens.

(c)               
The security interests granted to the Collateral Agent (for the benefit of the Senior Secured Parties) pursuant to the Security
Documents in the Collateral consisting of personal property will be perfected as specified in the Intercreditor Agreement, (i)
with respect to any property that can be perfected by filing, upon the filing of UCC financing statements in the filing offices
identified in Schedule 5.12, (ii) with respect to any Project Account or Local Account Collateral that can be perfected
solely by control, upon execution of this Agreement and the Blocked Account Agreements, respectively and (iii) with respect to
any property (if any) that can be perfected solely by possession, pursuant to the Intercreditor Agreement, upon the Collateral
Agent receiving possession thereof, and in each case such security interest will be, as to Collateral perfected under the UCC or
otherwise as aforesaid, superior and prior to the rights of all third Persons now existing or hereafter arising whether by way
of mortgage, lien, security interests, encumbrance, assignment or otherwise, in each case subject only to Permitted Liens. All
such action as is necessary has been taken to establish and perfect the Collateral Agent’s rights in and to the Collateral
covered by the Security Documents on the date this representation is made or deemed repeated to the extent the Collateral Agent’s
security interest can be perfected by filing, including any recordation, filing, registration, giving of notice or other similar
action. No filing, recordation, re-filing or re-recording other than those listed on Schedule 5.12 (as the same may be updated
at the written request of the Borrowers’ Agent, with the written agreement of the Administrative Agent, following any change
in applicable law) is necessary to perfect (or maintain the perfection of) the interest, title or Liens of the Security Documents
(to the extent the Collateral Agent’s security interest can be perfected by filing or recording), and on and as of each relevant
date which this representation and warranty is made or deemed repeated, all such filings or recordings have been made with respect
to each Security Document then in effect. The Borrowers and the Pledgor have properly delivered or caused to be delivered to the
Collateral Agent, or provided the Collateral Agent control of, all Collateral that requires perfection of the Liens and security
interests described above by possession or control, in each case in accordance with the Intercreditor Agreement. All or substantially
all of the Collateral (other than the Project Account Collateral, the Local Account Collateral, certificates, securities, investments,
chattel paper, books and records and general intangibles), including the Mortgaged Property, is or will (when acquired) be located
on the Sites.

    	31

    	 

    

Section
5.13 Ownership of Properties. (a) Madera has a good and valid fee ownership interest in the Site for the Madera
Plant (except as contemplated by Section 7.02(f) (Negative Covenants – Asset Dispositions)). Boardman has
a good and valid leasehold interest or valid fee ownership in the Site for the Boardman Plant (except as contemplated by Section 7.02(f)
(Negative Covenants – Asset Dispositions)). Burley has a good and valid fee ownership interest in the Site for
the Burley Plant (except as contemplated by Section 7.02(f) (Negative Covenants – Asset Dispositions)). Stockton
has a good and valid leasehold interest or valid fee ownership in the Site for the Stockton Plant (except as contemplated by Section
7.02(f) (Negative Covenants – Asset Dispositions)). Each such Site is described on Schedule 5.13(a).

(b)              
Except as contemplated by Section 7.02(f) (Negative Covenants – Asset Dispositions), the Borrowers
have a good and valid ownership interest, leasehold interest, license interest or other right of use in all other property and
assets (tangible and intangible) included in the Collateral (other than the collateral pledged pursuant to the Pacific Holding
Pledge Agreement). Such ownership interests, leasehold interest, license interest or other rights of use are and will be sufficient
(along with the Kirby Equipment) to permit operation of the Plants substantially in accordance with the Project Documents applicable
to each such Plant. None of said properties or assets are subject to any Liens or, to the knowledge of each Borrower, any other
claims of any Person, including any easements, rights of way or similar agreements affecting the use or occupancy of the Project,
any Plant or any Site, other than Permitted Liens and, with respect to claims, to the extent permitted by Section 5.09 (Litigation).

(c)               
All Equity Interests in each of Madera, Boardman, Stockton and Burley are owned by Pacific Holding.

(d)              
All Equity Interests in Pacific Holding are owned by the Pledgor.

(e)               
The properties and assets of each of the Borrowers are separately identifiable and are not commingled with the properties
and assets of any other Person (other than any Borrower) and are readily distinguishable from one another (except to the extent
otherwise contemplated by the Transaction Documents).

    	32

    	 

    

(f)               
None of the Borrowers has any leasehold interest in, and none of the Borrowers is lessee of, any real property other than
the Leased Premises.

Section
5.14 Taxes. (a) Each Borrower has (i) filed all Tax Returns required by law to have been filed by it and (ii) has
paid all Taxes thereby shown to be owing, as and when the same are due and payable, other than in the case of this Section
5.14(a)(ii), (A) Taxes that are subject to a Contest or (B) the nonpayment of immaterial Taxes in an aggregate amount not
in excess of twenty-five thousand Dollars ($25,000) at any one time outstanding (taking into account any interest and penalties
that could accrue or be applicable to such past-due Taxes), and provided that such Taxes are no more than forty-five (45) days
past due.

(b)              
None of the Borrowers is or will be taxable as a corporation for federal, state or local tax purposes.

(c)               
No Borrower is a party to any tax sharing agreement with any Person.

Section
5.15 Patents, Trademarks, Etc.

Pacific Holding and each other Borrower
has obtained and holds in full force and effect all material patents, trademarks, copyrights and other such material rights or
adequate licenses therein (including on the Closing Date the license with respect to the use of the Pacific Ethanol name granted
pursuant to the Asset Management Agreement), free from unduly burdensome restrictions, that are necessary for the ownership, construction,
operation and maintenance of the Project.

Section
5.16 ERISA Plans. None of the Borrowers nor any ERISA Affiliate has (or within the five year period immediately
preceding the Closing Date had) any liability in respect of any Plan or Multiemployer Plan. None of the Borrowers has any contingent
liability with respect to any post-retirement benefit under any “welfare plan” (as defined in Section 3(1) of ERISA),
other than liability for continuation coverage under Part 6 of Title I of ERISA.

Section
5.17 Property Rights, Utilities, Supplies Etc.  (a) All material property interests, utility services, means of transportation, facilities and other materials necessary for the use
and operation of the Project (including, as necessary, gas, roads, rail transport, electrical, water and sewage services and facilities)
are available to each Plant.

(b)              
There are no material materials, supplies or equipment necessary for operation or maintenance of each Plant that are not
available at the relevant Site on commercially reasonable terms consistent with the Budget.

Section
5.18 No Defaults. (a) No Event of Default has occurred
and is continuing.

(b)              
None of Pacific Holding or any other Borrower is in any breach of, or in any default under, any of such Borrower’s
Contractual Obligations that has had or could reasonably be expected to have a Material Adverse Effect with respect to such Borrower.

    	33

    	 

    

Section
5.19 Environmental Warranties.

(a)               
Except as set forth on Schedule 5.19(a)(i), (i) Each Borrower is in compliance in all material respects with all
applicable Environmental Laws, (ii) each Borrower has all Environmental Approvals required to operate its business as presently
conducted or as reasonably anticipated to be conducted and is in compliance in all material respects with the terms and conditions
thereof, (iii) no Borrower nor any of its Environmental Affiliates has received any written communication (other than any such
communication that the Administrative Agent has agreed in writing is not materially adverse) from a Governmental Authority that
alleges that any Borrower or any Environmental Affiliate is not in compliance in all material respects with all Environmental Laws
and Environmental Approvals, and (iv) there are no circumstances that may prevent or interfere in the future with any Borrower’s
compliance in all material respects with all applicable Environmental Laws and Environmental Approvals.

(b)              
There is no Environmental Claim pending, or to the knowledge of each Borrower, threatened against any Borrower. No Environmental
Affiliate has taken any action or violated any Environmental Law that to the knowledge of a Borrower could reasonably be expected
to result in an Environmental Claim.

(c)               
There are no present or past actions, activities, circumstances, conditions, events or incidents, including the release,
emission, discharge, presence or disposal of any Material of Environmental Concern, that could reasonably be expected to form the
basis of any Environmental Claim against any Borrower or any Environmental Affiliate.

(d)              
Without in any way limiting the generality of the foregoing, (i) there are no on-site or off-site locations in which any
Borrower or, to the knowledge of each Borrower, any Environmental Affiliate has stored, disposed or arranged for the disposal of
Materials of Environmental Concern that could reasonably be expected to form the basis of an Environmental Claim, (ii) none of
the Borrowers knows of any underground storage tanks located or to be located on property owned or leased by any Borrower except
as identified on Schedule 5.19(d)(ii) (as the same may be updated in writing by the Borrowers’ Agent with the
written approval of the Administrative Agent), (iii) there is no asbestos or lead paint contained in or forming part of any building,
building component, structure or office space owned or leased by any Borrower except in such form, condition and quantity as could
not reasonably be expected to result in an Environmental Claim, and (iv) no polychlorinated biphenyls (PCBs) are or will be used
or stored at any property owned or leased by any Borrower, except in such form, condition and quantity as could not reasonably
be expected to result in an Environmental Claim.

(e)               
None of the Borrowers has received any letter or request for information under Section 104 of the CERCLA, or comparable
state laws, and to the knowledge of the Borrowers, none of the operations of the Borrowers is the subject of any investigation
by a Governmental Authority evaluating whether any remedial action is needed to respond to a release or threatened release of any
Material of Environmental Concern at any Plant or Site or at any other location, including any location to which any Borrower has
transported, or arranged for the transportation of, any Material of Environmental Concern with respect to the Project.

    	34

    	 

    

Section
5.20 Regulations T, U and X. None of the Borrowers is engaged in the business of extending credit for the purpose
of purchasing or carrying margin stock, and no proceeds of any Loan will be used for any purpose that violates, or would be inconsistent
with, F.R.S. Board Regulation T, U or X. Terms for which meanings are provided in F.R.S. Board Regulation T, U or X or any regulations
substituted therefore, as from time to time in effect, are used in this Section 5.20 with such meanings.

Section
5.21 Accuracy of Information. (a) All factual information
heretofore or contemporaneously furnished by or on behalf of any Borrower in this Agreement, in any other Transaction Document
or otherwise in writing to any Senior Secured Party, any Consultant, or counsel for purposes of or in connection with this Agreement
and the other Financing Documents or any transaction contemplated hereby or thereby (other than projections, budgets and other
“forward-looking” information all of which has been prepared on a reasonable basis and in good faith) was, as of the
date furnished, when taken as a whole (and after giving effect to any supplement of such information) (i) true and accurate in
every material respect and (ii) not incomplete by omitting to state any material fact necessary to make such information not misleading
in any material respect.

(b)              
The assumptions constituting the basis on which the Borrowers prepared the Budget that is in effect on each date this representation
is made or deemed repeated and the numbers set forth therein were developed and consistently utilized in good faith and are reasonable
and represent each Borrower’s best judgment as of the date prepared as to the matters contained therein, based on all information
known to the Borrowers.

(c)               
The Borrowers reasonably believe that the use, ownership, operation and maintenance of the Project are technically feasible
and, except for factors effecting the ethanol industry in general and not relating specifically to the Plants or the Project, economically
feasible.

Section
5.22 Indebtedness. The Obligations are, after giving effect to the Financing Documents and the transactions contemplated
thereby, the only outstanding Indebtedness of the Borrowers other than Permitted Indebtedness. Other than with respect to the
Senior Obligations, subject to the Intercreditor Agreement, the Obligations rank at least pari passu with all other Indebtedness
of any Borrower.

Section
5.23 Separateness. (a) Each Borrower maintains separate
bank accounts and separate books of account from each other Borrower and from the Pledgor (other than the Project Accounts maintained
in accordance with this Agreement). The separate liabilities of each Borrower are readily distinguishable from the liabilities
of each Affiliate of the Borrowers, including the Pledgor (except to the extent otherwise contemplated by the Transaction Documents).

(b)              
Each Borrower conducts its business solely in its own name in a manner not misleading to other Persons as to its identity.

(c)               
Each Borrower is in compliance with the provisions set forth on Schedule 5.23.

    	35

    	 

    

Section
5.24 Subsidiaries. Madera, Boardman, Stockton and Burley have no Subsidiaries. Pacific Holding has no Subsidiaries
other than Madera, Boardman, Stockton and Burley.

Section
5.25 Foreign Assets Control Regulations, Etc.   (a)  The use of the proceeds of the Loan by the Borrowers will not violate the Trading with the Enemy Act, as amended, or any of the
foreign assets control regulations of the United States Treasury Department (31 C.F.R., Subtitle B, Chapter V, as amended) or
any enabling legislation or executive order relating thereto.

(b)              
None of the Borrowers:

		(i)	is or will become a Person or entity described by section 1 of Executive Order 13224 of September 24, 2001 Blocking Property
and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (12 C.F.R. 595), and none of the
Borrowers engages in dealings or transactions with any such Persons or entities; or

		(ii)	is in violation of the Patriot Act.

Section
5.26 Employment Matters. None of the Borrowers has or has had any employees or former employees.

Section
5.27 Solvency. Each of the Borrowers is and, upon the incurrence of any Obligations by the Borrowers and after giving
effect to the transactions contemplated hereby, will be, Solvent.

Section
5.28 Legal Name and Place of Business. (a) The exact
legal name and jurisdiction of formation of each Borrower is as set forth below, and none of the Borrowers has had any other legal
names in the previous five (5) years except as set forth on Schedule 5.28:

		(i)	Pacific Holding: Pacific Ethanol Holding Co. LLC, a limited liability company organized and existing under the laws of the
State of Delaware;

		(ii)	Madera: Pacific Ethanol Madera LLC, a limited liability company organized and existing under the laws of the State of Delaware;

		(iii)	Boardman: Pacific Ethanol Columbia, LLC, a limited liability company organized and existing under the laws of the State of
Delaware;

		(iv)	Stockton: Pacific Ethanol Stockton LLC, a limited liability company organized and existing under the laws of the State of Delaware;
and

		(v)	Burley: Pacific Ethanol Magic Valley, LLC, a limited liability company organized and existing under the laws of the State of
Delaware.

    	36

    	 

    
	

 

(b)              
The sole place of business and chief executive office of each Borrower is as set forth on Schedule 5.28.

The information set forth in Sections
5.28(a) and (b) and on Schedule 5.28 may be changed from time to time by the Borrowers upon thirty (30) days’
prior written notice to the Administrative Agent and the Collateral Agent, subject in each case to the Borrowers’ obligations
hereunder to provide the Collateral Agent with a perfected first-priority Lien on the Collateral (subject to Permitted Liens).

Section
5.29 No Brokers. None of the Borrowers has any obligation to pay any finder’s, advisory, brokers or investment
banking fee, except for the fees payable pursuant to Section 3.11 (Fees) and those identified on Schedule 5.29.

Section
5.30 Insurance. All insurance required to be obtained and maintained pursuant to the Transaction Documents by Pacific
Holding and each other Borrower is in full force and effect as of each date this representation is made or deemed repeated and
complies with the insurance requirements set forth on Schedule 7.01(h). All premiums then due and payable on all such insurance
have been paid. To the knowledge of each Borrower, all insurance required to be obtained and maintained by any Major Project Party
to protect, directly or indirectly, against loss or liability to any Borrower, any Plant or any Senior Secured Party, as of the
date this representation is made or deemed repeated, pursuant to any Project Document relating to any such Plant has been obtained,
is in full force and effect and complies with the insurance requirements set forth on Schedule 7.01(h) (where applicable)
and is otherwise in all material respects in accordance with such Project Document.

Section
5.31 Accounts. No Borrower has, nor is the beneficiary of,
any bank account other than the Project Accounts. As of the Restatement Effective Date, no Borrower has any Local Accounts.

Section
5.32 Interest Rate Protection Agreements. On the Restatement Effective Date there are no Interest Rate Protection
Agreements.

ARTICLE
VI

CONDITIONS PRECEDENT

Section
6.01 Conditions to Closing. The effectiveness of this Agreement
shall be subject to the satisfaction of each of the following conditions precedent, which the Borrowers, by their execution
and delivery of this Agreement, hereby certify to have been satisfied:

(a)               
Delivery of Financing Documents. The Administrative Agent shall have received each of the following fully executed
documents, each of which shall be originals, portable document format (“pdf”) or facsimiles, executed and delivered
by each party thereto:

    	37

    	 

    

		(i)	this Agreement;

		(ii)	the Intercreditor Agreement; and

		(iii)	the Senior Credit Agreement and each other Senior Financing Document.

(b)              
Closing Fees; Expenses. The Administrative Agent shall have received for its own account all fees due and payable
pursuant to Section 3.11 (Fees) and all reasonable costs and expenses (including reasonable and documented legal
fees and expenses) for which invoices have been presented, in each case, required to be paid on or before the Restatement Effective
Date.

(c)               
Senior Closing Date. The concurrent occurrence of the “Closing Date” as defined in the Senior Credit
Agreement.

Section
6.02 Conditions to All Fundings. The obligation of each Lender to make available each Funding of its Loans, shall
be subject to the fulfillment of the following conditions precedent.

(a)               
Funding Notice. The Administrative Agent shall have received a duly executed Funding Notice, as required by and in
accordance with Section 2.04 (Notice of Fundings), which shall certify that:

		(i)	the Borrowers are in compliance with all conditions set forth in this Section 6.02, and each other applicable Section
of this Article VI, on and as of the proposed Funding Date, before and after giving effect to such Funding and to the
application of the proceeds therefrom;

		(ii)	all representations and warranties made by each of the Borrowers and the Pledgor in this Agreement and each of the Financing
Documents to which it is a party are true and correct in all material respects on and as of such Funding Date (except with respect
to representations and warranties that expressly refer to an earlier date), before and after giving effect to such Funding and
to the application of the proceeds therefrom; and

		(iii)	since April 16, 2010, no Material Adverse Effect has occurred and is continuing.

(b)              
Government Approvals. Each Borrower that owns a Plant shall have all Necessary Project Approvals required as of the
date of such requested Funding to operate such Plant (in Cold Shutdown in the case of the Madera Plant), and the Administrative
Agent shall have received a duly executed certificate of an Authorized Officer of the relevant Borrowers certifying that each such
Necessary Project Approval is in full force and effect and is final and Non-Appealable.

    	38

    	 

    

(c)               
No Default or Event of Default. No Default or Event of Default has occurred and is continuing, or would result from
such Funding.

(d)              
Representations and Warranties. All representations and warranties made by each of the Borrowers and the Pledgor
in this Agreement and each of the Financing Documents to which it is a party shall be true and correct in all material respects
on and as of such Funding Date (except with respect to representations and warranties that expressly refer to an earlier date),
before and after giving effect to such Funding and to the application of the proceeds therefrom.

(e)               
No Litigation.

		(i)	No action, suit, proceeding or investigation shall have been instituted or threatened against any of Pacific Holding, the Pledgor,
or any Plant or Borrower that, individually or in the aggregate, has had or could reasonably be expected to have a Material Adverse
Effect; and

		(ii)	no action, suit, proceeding or investigation shall have been instituted or threatened against any Project Party that is party
to any Project Document with Pacific Holding or that relates to any Borrower or Plant that, individually or in the aggregate, has
had or could reasonably be expected to have a Material Adverse Effect.

(f)               
Abandonment, Taking, Total Loss. (i) No Event of Abandonment or Event of Total Loss shall have occurred and be continuing
with respect to any Plant, (ii) no Event of Taking relating to any Equity Interests in Pacific Holding or any other Borrower shall
have occurred and be continuing, or (iii) no Event of Taking with respect to a material part of any Plant shall have occurred.

(g)              
Restatement Effective Date. The Restatement Effective Date shall have occurred.

(h)              
Fees; Expenses. The Administrative Agent shall have received for its own account, or for the account of each Lender
and Agent entitled thereto, all fees due and payable as of the date of such Funding pursuant to Section 3.11 (Fees),
and all costs and expenses (including reasonable and documented costs, fees and expenses of legal counsel) for which invoices have
been presented.

ARTICLE
VII

COVENANTS

Section
7.01 Affirmative Covenants. Each Borrower agrees with each Agent and each Lender that, until the Discharge Date,
each of the Borrowers will perform the obligations set forth in this Section 7.01 applicable to it.

    	39

    	 

    

(a)               
Compliance with Laws. Each Borrower shall comply in all material respects with all Laws (other than Environmental
Laws) applicable to it or to its business or property.

(b)              
Environmental Matters.

		(i)	The Borrowers shall (A) comply in all material respects with all Environmental Laws, (B) keep the Project free of any Lien
imposed pursuant to any Environmental Law, (C) pay or cause to be paid when due and payable by any Borrower any and all costs required
in connection with any Environmental Laws, including the cost of identifying the nature and extent of the presence of any Materials
of Environmental Concern in, on or about the Project or on any real property owned or leased by any Borrower or on the Mortgaged
Property, and the cost of delineation, management, remediation, removal, treatment and disposal of any such Materials of Environmental
Concern, and (D) use their best efforts to ensure that no Environmental Affiliate takes any action or violates any Environmental
Law that could reasonably be expected to result in an Environmental Claim.

		(ii)	The Borrowers shall not use or allow the Project to generate, manufacture, refine, produce, treat, store, handle, dispose of,
transfer, process or transport Materials of Environmental Concern other than in compliance in all material respects with Environmental
Laws.

(c)               
Operations and Maintenance; Operating Status. Each Borrower owning a Plant shall own, operate and maintain (or cause
to be operated and maintained) such Plant in all material respects in accordance with (A) the terms and provisions of the Transaction
Documents except as a result of the Cold Shutdown of the Madera Plant, (B) all applicable Governmental Approvals and Laws and (C)
Prudent Ethanol Operating Practice. Pacific Holding shall conduct its business in all material respects in accordance with all
applicable Governmental Approvals and Laws.

(d)              
Maintenance of Properties.

		(i)	Each Borrower shall keep, or cause to be kept, in good working order and condition, ordinary wear and tear excepted, all of
its material properties and equipment that are necessary or useful in the proper conduct of its business.

		(ii)	The Borrowers shall not permit any Plant or any material portion thereof to be removed, demolished or materially altered, unless
such material portion that has been removed, demolished or materially altered has been replaced or repaired as permitted under
this Agreement.

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		(iii)	Each Borrower shall do or cause to be done all things necessary to preserve and keep in full force and effect (A) its limited
liability company existence and (B) its material patents, trademarks, trade names, copyrights, franchises and similar rights.

(e)               
Payment of Obligations. Each Borrower shall pay and discharge as the same shall become due and payable (i) all tax
liabilities, assessments and governmental charges or levies upon it or its properties or assets, (A) unless the same are subject
to a Contest or (B) other than the nonpayment of immaterial Taxes in an aggregate amount not in excess of twenty-five thousand
Dollars ($25,000) at any one time outstanding (taking into account any interest and penalties that could accrue or be applicable
to such past-due Taxes), and provided that such Taxes are no more than forty-five (45) days past due, (ii) all of its obligations
and liabilities under its Contractual Obligations (other than any such failure that could not reasonably be expected to have a
Material Adverse Effect and that would not otherwise result in an Event of Default) and (iii) all lawful claims that, if unpaid,
would by law become a Lien upon its properties (other than Permitted Liens), unless the same are subject to a Contest.

(f)               
Governmental Approvals. Pacific Holding and each other Borrower shall maintain in full force and effect, in the name
of the relevant Borrower, all Necessary Project Approvals (other than any such failure to maintain or obtain that could not reasonably
be expected to have a Material Adverse Effect on the relevant Borrower or Plant).

(g)              
Use of Proceeds and Cash Flow.

		(i)	All proceeds of the Revolving Loans shall be used solely to fund the amounts set forth in the Budget and, in each case only
to the extent specified in the Budget (subject to the Permitted Variance), (a) operating expenses, limited capital expenditures
and other amounts for general and ordinary course purposes of the Borrowers, (b) current interest and fees payable pursuant to
the Financing Documents and (c) such other administrative payments, including the cumulative budgeted professional fees, as may
be authorized and approved by the Required Lenders.

		(ii)	All proceeds of the Tranche A-1 Term Loans shall be applied to pay amounts due in respect of DIP Advance Claims.

		(iii)	The Borrowers shall cause all Cash Flow, Insurance Proceeds and Condemnation Proceeds to be applied in accordance with Article VIII
(Project Accounts).

(h)              
Insurance. Without cost to any Senior Secured Party, the applicable Borrower shall at all times obtain and maintain,
or cause to be obtained and maintained, the types and amounts of insurance listed and described on Schedule 7.01(h), in
accordance with the terms and provisions set forth therein for each Plant and the applicable Borrower, and shall obtain and maintain
in all material respects such other insurance as may be required pursuant to the terms of any Transaction Document. In the event
the Borrowers fail to take out or maintain the full insurance coverage required by this Section 7.01(h), the Administrative
Agent may (but shall not be obligated to) take out the required policies of insurance and pay the premiums on the same. All amounts
so advanced by the Administrative Agent shall become an Obligation and the Borrowers shall forthwith pay such amounts to the Administrative
Agent, together with interest from the date of payment by the Administrative Agent at the Default Rate.

    	41

    	 

    

(i)                
Books and Records; Inspections. Each Borrower shall keep proper books of record and account in which complete, true
and accurate entries in conformity with GAAP and all requirements of Law shall be made of all financial transactions and matters
involving the assets and business of such Borrower, and shall maintain such books of record and account in material conformity
with applicable requirements of any Governmental Authority having regulatory jurisdiction over such Borrower. Each Borrower shall
keep books and records separate from the books and records of any other Person (including any Affiliates of the Borrowers) that
accurately reflect all of its business affairs, transactions and the documents and other instruments that underlie or authorize
all of its limited liability company actions. Each Borrower shall permit officers and designated representatives of the Administrative
Agent or any Consultant to visit and inspect any of the properties of such Borrower (including the respective Plant), to examine
its limited liability company, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss
its affairs, finances and accounts with its members, managers, directors, officers and independent public accountants, all at the
expense of the Borrowers and at such reasonable times during normal business hours and as often as may be reasonably desired, upon
reasonable advance notice to such Borrower; provided that if a Default or Event of Default has occurred and is continuing, any
Agent, or Consultant (or, in the case of any Event of Default, any Lender) (or any of their respective officers or designated representatives)
may do any of the foregoing at the expense of the Borrowers at any time during normal business hours and without advance notice.

(j)                
Maintenance of Existence. Each Borrower will continue to preserve, renew and keep in full force and effect its entity
status in the jurisdiction of its formation and take all actions to maintain its rights, privileges and franchises necessary or
desirable in the normal course of its business.

(k)              
Budgets.

		(i)	The Borrowers, not later than seven (7) days before the date that is the first day of the Fiscal Quarter commencing October
1, 2010 and each date falling every ninety (90) days thereafter (each such date, a “Period Start Date”), shall
adopt a budget containing, among other things, rolling cash flow forecast, setting forth in reasonable detail the projected cash
flow for each Plant and on an aggregate basis for the Project for the period starting on the then current Period Start Date and
ending on the earlier of (A) thirteen (13) weeks after the then current Period Start Date and (B) the Maturity Date, and provide
a copy of such forecast at such time to the Administrative Agent. Each such forecast shall become effective upon approval of the
Required Lenders of the Revolving Loan Class (acting in consultation with the Financial Advisor, if any) (each such approved forecast,
and the Initial Budget, a “Budget).”

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		(ii)	Each Budget delivered to the Administrative Agent pursuant to this Section 7.01(k) shall be accompanied by a memorandum
or worksheet detailing all changes in material assumptions used in the preparation of such Budget, shall contain a line item for
each expense category reasonably requested by the Required Lenders of the Revolving Loan Class and shall specify for each Fiscal
Quarter and for each such expense category the amount budgeted for such category for such Fiscal Quarter.

		(iii)	Subject to Section 7.02(w), the Borrowers shall comply with the Budget subject to the Permitted Variance.

		(iv)	No later than forty-five (45) days in advance of the beginning of each calendar year, the Borrowers shall prepare a document
substantially in the form of the Initial Annual Forecast setting forth in reasonable detail the projected requirements for Operation
and Maintenance Expenses and Maintenance Capital Expenses for such calendar year on a monthly basis for each Plant and provide
a copy of such document to the Administrative Agent.

(l)                
Project Documents. Each Borrower shall use its reasonable best efforts to preserve, protect and defend its rights
under each Project Document to which it is a party except where the failure to do so could not reasonably be expected to have a
Material Adverse Effect. Each Borrower shall use its reasonable best efforts to exercise all material rights, discretion and remedies
under each Project Document in accordance with its terms and in a manner consistent with and subject to such Borrower’s obligations
under the Financing Documents.

(m)            
Preservation of Title; Acquisition of Additional Property.

		(i)	The Borrowers shall preserve and maintain (A) good, marketable and insurable fee interest in each Site (excluding the Leased
Premises) and valid easement interest to its easement interest in each Site (excluding the Leased Premises), (B) a good, legal
and valid leasehold interest in each Leased Premises, and (C) good, legal and valid title to all of its other respective material
properties and assets, in each case free and clear of all Liens other than Permitted Liens.

		(ii)	No Borrower shall acquire or commence to lease any real property interests without the prior written consent of the Required
Lenders.

(n)              
Maintenance of Liens; Creation of Liens.

		(i)	The Borrowers shall take or cause to be taken all action necessary or desirable to maintain and preserve the Lien of the Security
Documents and the priority thereof, in each case in accordance with the Intercreditor Agreement.

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		(ii)	The Borrowers shall take all actions required to cause each Additional Project Document to be or become subject to the Lien
of the Security Documents (whether by amendment to any Security Agreement or otherwise).

		(iii)	Simultaneously with the making of any investment in Cash Equivalents, each Borrower shall take or cause to be taken all actions
to require such Cash Equivalent in the Project Accounts or any Local Account with respect to which a Blocked Account Agreement
has been entered into to be or become subject to a perfected Lien in favor of the Senior Secured Parties, in each case in accordance
with the Intercreditor Agreement.

(o)              
Certificate of Formation. Each Borrower shall observe in all material respects all of the separateness and other
provisions and procedures of its certificate of formation and Borrower LLC Agreement.

(p)              
Separateness. Each Borrower shall comply at all times with the separateness provisions set forth on Schedule 5.23.

(q)              
Further Assurances. Upon written request of the Administrative Agent, the Borrowers shall promptly perform or cause
to be performed any and all acts and execute or cause to be executed any and all documents (including UCC financing statements
and UCC continuation statements):

		(i)	that are necessary or advisable for compliance with Section 7.01(n)(i) (Affirmative Covenants – Maintenance
of Liens; Creation of Liens);

		(ii)	for the purposes of ensuring the validity and legality of this Agreement or any other Financing Document and the rights of
the Lenders and the Agents hereunder or thereunder; and

		(iii)	for the purposes of facilitating the proper exercise of rights and powers granted to the Lenders or the Agents under this Agreement
or any other Financing Document.

(r)                
First Priority Ranking. The Borrowers shall cause their payment obligations with respect to the Loans to constitute
direct senior secured obligations of each Borrower and, except with respect to the Senior Obligations, to rank no less than pari
passu in priority of payment, in right of security and in all other respects to all other Indebtedness (other than as contemplated
by Section 8.03(b) (Revenue Account) with respect to payment priorities) of the Borrowers, in each case subject
to the Intercreditor Agreement.

    	44

    	 

    

(s)               
Quarterly Meetings. At least once per calendar quarter, upon request of the Required Lenders, at mutually acceptable
times (and with telephonic conferences being acceptable), the Borrowers’ Agent shall, and shall procure that representatives
of the Borrower’s professionals (including any counsel and financial advisors) as may be requested by the Required Lenders,
meet together with the Lenders to update the Lenders on the status of the Borrowers and to discuss any other issues in connection
therewith as may be requested by the Required Lenders.

(t)                
Estoppel Certificates. Stockton and Boardman shall use commercially reasonable efforts to obtain a fully executed
estoppel certificate substantially in the form attached hereto as Exhibits 7.01(t)A and B, respectively.

Section
7.02 Negative Covenants. Each Borrower agrees with each Agent and each Lender that, until the Discharge Date, each
of the Borrowers will perform the obligations set forth in this Section 7.02 applicable to it.

(a)               
Restrictions on Indebtedness of the Borrowers. The Borrowers will not create, incur, assume or suffer to exist any Indebtedness
except:

		(i)	the Obligations;

		(ii)	to the extent constituting Indebtedness, and contingent obligations under or in respect of performance bonds, bid bonds, appeal
bonds, indemnification obligations, obligations to pay insurance premiums, take or pay obligations and similar obligations in each
case incurred in the ordinary course of business and otherwise permitted under this Agreement and not in connection with Indebtedness
for borrowed money, with respect to bonds, (a) bonds existing on the Restatement Effective Date and set forth on Schedule 7.02(a)
and replacements or extensions thereof that do not increase the face amount thereof (except to the extent a bond in the amount
of such increase would be permitted pursuant to the following clause (b), and (b) other bonds in an aggregate amount not to exceed
two hundred thousand Dollars ($200,000) at any one time outstanding;

		(iii)	to the extent constituting Indebtedness, Indebtedness arising from the honoring by a bank or other financial institution of
a check, draft or similar instrument drawn against insufficient funds in the ordinary course of business or other cash management
services in the ordinary course of business; provided that such Indebtedness is extinguished within ten (10) Business Days of its
incurrence and the aggregate amount of all such Indebtedness does not exceed, at any time, one hundred thousand Dollars ($100,000);

    	45

    	 

    
	

		(iv)	Capitalized Lease Liabilities with payments in any Fiscal Year, taken in the aggregate for the Project, in an amount not to
exceed two million Dollars ($2,000,000);

		(v)	Permitted Commodity Hedges;

		(vi)	Indebtedness (which may include Capitalized Lease Liabilities without reduction of the basket in the foregoing clause (a)(iv))
incurred at the time of such purchase or lease to finance the purchase or lease of enhancements to the Borrowers’ production
facilities consisting of bolt-on product yield enhancement equipment or processing and separation equipment for corn oil and corn
syrup in an aggregate principal amount not to exceed fourteen million Dollars ($14,000,000); and

		(vii)	Indebtedness under the Senior Financing Documents.

(b)              
Liens. No Borrower shall create, incur, assume or suffer to exist any Lien upon any of its property, revenues or
assets (including its Equity Interests), whether now owned or hereafter acquired, except:

		(i)	Liens in favor, or for the benefit, of the Collateral Agent pursuant to the Security Documents;

		(ii)	Liens for taxes, assessments and other governmental charges that are not yet due or the payment of which is the subject of
a Contest;

		(iii)	Liens of carriers, warehousemen, mechanics and materialmen incurred in the ordinary course of business for sums not yet due
or the payment of which is the subject of a Contest;

		(iv)	minor defects or irregularities in title and similar matters if the same do not materially detract from the operation or use
of such property in the ordinary conduct of the business of the applicable Borrower, including any such exceptions and encumbrances
which are approved by the Administrative Agent;

		(v)	cash collateral for bonds permitted under Section 7.02(a)(ii) (Negative Covenants – Restrictions on Indebtedness
of the Borrowers) or otherwise; provided that such cash collateral does not exceed an amount equal to the sum of (A) the
amount of cash collateral for bonds on deposit on the Restatement Effective Date and set forth on Schedule 7.02(a) and (B)
two hundred thousand dollars ($200,000);

		(vi)	Liens arising with respect to a Local Account for which a Blocked Account Agreement has been entered into or otherwise arising
by virtue of any statutory or common law provisions relating to banker’s liens, rights of set-off or similar rights; provided
that such Liens either (A) are subordinated to the Liens of the Senior Secured Parties or (B) with respect only to Local Accounts
for which a Blocked Account Agreement has been entered into, are in an aggregate total amount not in excess of one hundred thousand
Dollars ($100,000);

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		(vii)	easements granted by any Borrower to any utility serving such Borrower’s Plant as required for the operation of such
Plant; provided, that in each such case:

		(A)	such easement will not adversely affect the costs under any Budget;

		(B)	such easement will not adversely affect the operations of any Plant; and

		(C)	such easement has been approved by the Administrative Agent;

		(viii)	Liens in respect of Capitalized Lease Liabilities with respect to office equipment permitted by Section 7.02(a)(iv)(Negative
Covenants-Restrictions on Indebtedness);

		(ix)	purported Liens evidenced by the filing of precautionary UCC financing statements relating solely to operating leases of personal
property entered into in the ordinary course of business and otherwise permitted under this Agreement;

		(x)	cash collateral for Permitted Commodity Hedges; provided that such cash collateral does not exceed the aggregate limits set
forth in the Commodity Hedging Policy;

		(xi)	purchase money security interests in equipment acquired by any Borrower using Indebtedness permitted by Section 7.02(a)(vi)
(Negative Covenants-Restrictions on Indebtedness); provided, that such security interests do not apply to any other
property or assets of any Loan Party or any Subsidiary besides those acquired or leased pursuant to such transaction (it being
agreed that transactions with the same vendor may be cross-collateralized); and

		(xii)	Liens in favor, or for the benefit, of the Senior Collateral Agent pursuant to the Senior Security Documents.

(c)               
Permitted Investments. The Borrowers shall not make any investments, loans or advances (whether by purchase of stocks,
bonds, notes or other securities, loans, extensions of credit, advances or otherwise) except for investments in (i) Cash Equivalents,
(ii) investments received in connection with the bankruptcy of suppliers or customers of the Borrowers (provided that such investments
are subject to a first priority perfected Lien in favor of the Collateral Agent) and (iii) in the case of Pacific Holding, investments
in the other Borrowers. The Borrowers shall select Cash Equivalents having such maturities as shall cause the Project Accounts
to have a cash balance as of any day sufficient to cover the transfers made from the Project Accounts on such day in accordance
with this Agreement, the other Financing Documents, the Project Documents and any Additional Project Documents.

    	47

    	 

    

(d)              
Change in Business. No Borrower shall (i) enter into or engage in any business other than the ownership, operation
(including the Cold Shutdown of the Madera Plant), maintenance, use and financing of the Plants or the Project as contemplated
by the Transaction Documents or (ii) change in any material respect the scope of any Plant or the Project from that which exists
as of the Closing Date.

(e)               
Equity Issuances. No Borrower shall issue any Equity Interests unless such Equity Interests are immediately pledged
to the Collateral Agent (for the benefit of the Senior Secured Parties) on a first priority perfected basis pursuant to the Pledge
Agreements or, if necessary, a supplement thereto or a pledge and security agreement in substantially the form of the Pledge Agreements.

(f)               
Asset Dispositions. No Borrower shall sell, lease, assign, transfer or otherwise dispose of assets (other than Products),
whether now owned or hereafter acquired, except:

		(i)	disposal of assets that are promptly replaced in accordance with the then-current Budget;

		(ii)	to the extent that such assets are uneconomical, obsolete or no longer useful or no longer usable in connection with the operation
or maintenance of the Project;

		(iii)	disposal of assets with a fair market value of, or, if greater, at a disposal price of, less than fifty thousand Dollars ($50,000)
in the aggregate during any Fiscal Year; provided, that such disposal does not, and would not reasonably be expected to,
adversely affect the operation or maintenance of any Plant;

		(iv)	transfers of assets among the Plants; provided, that (A) the aggregate total fair market value of all such transferred assets
does not exceed five hundred thousand Dollars ($500,000) in any Fiscal Year, and (B) each such transfer does not, and would not
reasonably be expected to, adversely affect the operations of the Plant from which such assets are transferred; or

		(v)	as permitted by Section 7.02(c) (Negative Covenants-Permitted Investments).

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(g)              
Consolidation, Merger. No Borrower will (i) directly or indirectly liquidate, wind up, terminate, reorganize or dissolve
itself (or suffer any liquidation, winding up, termination, reorganization or dissolution) or otherwise wind up; or (ii) acquire
(in one transaction or a series of related transactions) all or any substantial part of the assets, property or business of, or
any assets that constitute a division or operating unit of, the business of any Person or otherwise merge or consolidate with or
into any other Person.

(h)              
Transactions with Affiliates. No Borrower shall enter into or cause, suffer or permit to exist any arrangement or
contract with any of its Affiliates or any other Person that owns, directly or indirectly, any Equity Interest in any Borrower
unless such arrangement or contract (i) is fair and reasonable to such Borrower and (ii) is an arrangement or contract that is
on arm’s-length basis and contains terms no less favorable than those that would be entered into by a prudent Person in the
position of such Borrower with a Person that is not one of its Affiliates.

(i)                
Accounts. The Borrowers shall not maintain, establish or use any deposit account, securities account (as each such
term is defined in the UCC) or other banking account other than the Project Accounts and any Local Account identified to the Administrative
Agent in writing, each of which shall be subject to a Blocked Account Agreement. The Borrowers shall not change the name or account
number of any of the Project Accounts or Local Accounts without the prior written consent of the Administrative Agent.

(j)                
Subsidiaries. Pacific Holding shall not create or acquire any Subsidiary other than Madera, Boardman, Stockton or
Burley nor enter into any partnership or joint venture. Each of Madera, Boardman, Stockton and Burley shall not create or acquire
any Subsidiary or enter into any partnership or joint venture.

(k)              
ERISA. No Borrower will engage in any prohibited transactions under Section 406 of ERISA or under Section 4975 of
the Code. No Borrower will incur any obligation or liability in respect of any Plan, Multiemployer Plan or employee welfare benefit
plan providing post-retirement welfare benefits (other than a plan providing continue coverage under Part 6 of Title I of ERISA)
in each such case without the prior written consent of the Administrative Agent (unless the aggregate total obligations or liabilities
of the Borrowers that could reasonably be expected to arise, due to no fault of the Borrowers, in connection therewith would not
exceed five hundred thousand Dollars ($500,000)).

(l)                
Taxes. No Borrower shall make any election to be treated as an association taxable as a corporation for federal,
state or local tax purposes.

(m)            
Project Documents. Other than changes approved in the Existing Pledgor Consent and changes that individually and
in the aggregate could not reasonably be expected to have a Material Adverse Effect, no Borrower shall direct or consent or agree
to (i) any amendment, modification, supplement, waiver to, or extension of the term of, or (ii) any termination, repudiation, cancellation
or rejection of, any Project Document to which it is a party and that is contemplated by the then-current Budget without the prior
written consent of the Required Lenders of the Revolving Loan Class and the Required Lenders of the Tranche A-1 Term Loan Class.
Except for collateral assignments to the Collateral Agent and/or, to, or for the benefit of, the Senior Collateral Agent pursuant
to the Senior Security Documents, no Borrower shall assign any of its rights under any Project Document to which it is a party
to any Person, or consent to the assignment of any obligations under any such Project Document by any other party thereto.

    	49

    	 

    

(n)              
Additional Project Documents; Senior Financing Documents. None of Pacific Holding or any other Borrower shall (i)
enter into any Additional Project Document that is not contemplated by the then-current Budget except with the prior written approval
of the Administrative Agent or (ii) except as permitted under the Intercreditor Agreement, amend any Senior Financing Documents.

(o)              
Suspension or Abandonment. No Borrower owning a Plant shall (i) permit or suffer to exist an Event of Abandonment
relating to such Plant or (ii) order or consent to any suspension of work in excess of sixty (60) days under any Project Document
relating to such Plant (provided that Cold Shutdown shall not constitute a suspension of work), in each such case without the prior
written approval of the Required Lenders of the Revolving Loan Class and the Required Lenders of the Tranche A-1 Term Loan Class.

(p)              
Use of Proceeds; Margin Regulations. No Borrower shall use any proceeds of any Loan other than in accordance with
the provisions of Article II (Commitments and Funding) and Section 7.01(g) (Affirmative Covenants – Use
of Proceeds and Cash Flow). No Borrower shall use any part of the proceeds of any Loan to purchase or carry any Margin
Stock (as defined in Regulation U) or to extend credit to others for the purpose of purchasing or carrying any Margin Stock. No
Borrower shall use the proceeds of any Loan in a manner that could violate or be inconsistent with the provisions of Regulations
T, U or X. Notwithstanding anything to the contrary set forth in this Agreement, following the occurrence of a Stockton Revenue
Event, no proceeds of any Loan shall be used to fund operations at the Stockton Plant if (i) holders of in excess of fifty percent
(50.00%) of the outstanding principal amount of the Revolving Loans (or in excess of fifty percent (50.00%) of the outstanding
principal amount of the Revolving Loans and the undisbursed amount of the Aggregate Revolving Loan Commitment) (excluding the principal
amounts of any Revolving Loans made by, and any Revolving Loan Commitments of, any Non-Voting Lenders) affirmatively vote to, or
the Senior Required Lenders issue a direction to, terminate such use or (ii) such vote does not occur and either the Majority Condition
or the Plurality Condition exists and the Required Minority Lenders affirmatively vote to, or the Senior Required Lenders issue
a direction to, terminate such use.

(q)              
Environmental Matters. Except to the extent not reasonably expected to result in an Environmental Claim and in compliance
with all applicable Laws, the Borrowers shall not permit (i) any underground storage tanks to be located on any property owned
or leased by any Borrower, (ii) any asbestos to be contained in or form part of any building, building component, structure or
office space owned by any Borrower, (iii) any polychlorinated biphenyls (PCBs) to be used or stored at any property owned by any
Borrower, (iv) any other Materials of Environmental Concern to be used, stored or otherwise be present at any property owned by
any Borrower, other than Materials of Environmental Concern necessary for the operation of the Project and used in accordance with
Prudent Ethanol Operating Practice or (v) any other Materials of Environmental Concern to be used, stored or otherwise be present
at any property leased by any Borrower.

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(r)                
Restricted Payments. The Borrowers shall not make any Restricted Payments.

(s)               
Budget. Except as set forth in this Agreement, no Borrower shall make any change in the Budget.

(t)                
Commodity Hedging Arrangements. The Borrowers shall not enter into any Commodity Hedging Arrangements (other than
any Permitted Commodity Hedge) without the prior written consent of the Required Lenders of the Revolving Loan Class and the Required
Lenders of the Tranche A-1 Term Loan Class.

(u)              
Interest Rate Protection Agreements. The Borrowers shall not enter into any Interest Rate Protection Agreement without
the prior written consent of the Required Lenders of the Revolving Loan Class and the Required Lenders of the Tranche A-1 Term
Loan Class.

(v)              
Accounting Changes. No Borrower shall make any change in (i) its accounting policies or reporting practices, except
as required by GAAP or as otherwise notified to the Administrative Agent in writing (provided that the Borrowers shall provide
an historical reconciliation for the prior audited period addressing any such change in accounting practices), or (ii) its Fiscal
Year without the prior written consent of the Administrative Agent.

(w)            
Financial Covenants.

		 	(i)           
The Borrowers shall not permit amounts disbursed pursuant to the category in the Budget entitled “Asset Management
Agreement” (excluding the line item entitled “Asset Management Fee”) in any Budget Period to exceed the amounts
set forth in the line item entitled “Total Asset Management Agreement” (excluding “Asset Management Fee”)
for such Budget Period in the Initial Budget by more than ten percent (10%).

		 	(ii)           
The Borrowers shall not permit amounts disbursed pursuant to the category in the Budget entitled “Operating Disbursements”
(reduced by the amount of any portion of such disbursements made in respect of purchases of corn or natural gas) to exceed the
amount set forth in the line item entitled “Total Operating Disbursements” (reduced by the amount of any portion of
such line item budgeted for purchases of corn or natural gas) for such Budget Period in the then applicable Budget by more than
ten percent (10%).

(x)              
Site Specific Bond. The Borrowers shall not permit the face amount of the Site Specific Bond to exceed $1,000,000.
Upon any release of cash collateral for the Site Specific Bond held pursuant to the Cash Collateral Agreement, such released amounts
shall be trasferred directly to the Administrative Agent in accordance with the Cash Collateral Agreement as in effect on the date
hereof and applied as a repayment of Revolving Loans in accordance with the terms hereof, subject to the Intercreditor Agreement.

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Section
7.03 Reporting Requirements. The Borrowers will furnish to the Administrative Agent, who shall distribute copies
of the following to each Lender:

(a)               
as soon as available and in any event within forty-five (45) days after the end of the first three Fiscal Quarters of each
Fiscal Year, consolidated and consolidating balance sheets of Pacific Holding and consolidated and consolidating statements of
income and cash flows of Pacific Holding for such Fiscal Quarter and for the period commencing at the end of the previous Fiscal
Year and ending with the end of such Fiscal Quarter;

(b)              
as soon as available and in any event within one hundred (100) days after the end of each Fiscal Year, a copy of the annual
audit report for such Fiscal Year for Pacific Holding including therein balance sheets as of the end of such Fiscal Year and statements
of income and cash flows of Pacific Holding (on a consolidated and consolidating basis) for such Fiscal Year, and accompanied by
an unqualified opinion of the Auditors stating that all such financial statements present fairly in all material respects the financial
position of each Borrower (as applicable) for the periods indicated in conformity with GAAP applied on a basis consistent with
prior periods (except as otherwise contemplated by Section 7.02(v) (Negative Covenants – Accounting Changes)),
which report and opinion shall not be subject to any “going concern” or like qualification or exception or any qualification
or exception as to the scope of such audit;

(c)               
concurrently with the delivery of the financial statements referred to in Sections 7.03(a) and (b) a certificate,
executed by an Authorized Officer of the applicable Loan Party stating that:

		(i)	such financial statements fairly present in all material respects the financial condition and results of operations of such
Person on the dates and for the periods indicated in accordance with GAAP subject, in the case of interim financial statements,
to the absence of notes and normally recurring year-end adjustments;

		(ii)	such Authorized Officer has reviewed the terms of the Financing Documents and has made, or caused to be made under his or her
supervision, a review in reasonable detail of the business and financial condition of such Person during the accounting period
covered by such financial statements; and

		(iii)	as a result of such review such Authorized Officer has concluded that no Default or Event of Default has occurred during the
period covered by such financial statements through and including the date of such certificate or, if any Default or Event of Default
has occurred, specifying the nature and extent thereof and, if continuing, the action that the Borrowers have taken and propose
to take in respect thereof;

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(d)              
promptly upon receipt, copies of any detailed audit reports, management letters or recommendations submitted to any Borrower
(or the audit or finance committee of any Borrower) by the Auditors in connection with the accounts or books of any Borrower, or
any audit of any Borrower;

(e)               
as soon as possible and in any event within five (5) days after the occurrence of any Default or Event of Default, including
pursuant to Section 9.01(e) with respect to Indebtedness under the Senior Credit Agreement, a statement of an Authorized
Officer of the Borrowers’ Agent setting forth details of such Default or Event of Default and the action that the Borrowers
have taken and propose to take with respect thereto;

(f)               
within five (5) days after any Borrower obtains knowledge thereof a statement of an Authorized Officer of the Borrowers’
Agent setting forth details of:

		(i)	any litigation or governmental proceeding pending or threatened in writing against any Borrower or the Pledgor;

		(ii)	any litigation or governmental proceeding pending or threatened in writing against any Project Party that has or could reasonably
be expected to have a Material Adverse Effect;

		(iii)	any other event, act or condition that has or could reasonably be expected to have a Material Adverse Effect; or

		(iv)	notification of any event of force majeure or similar event under a Project Document which is expected to continue for more
than five (5) days or, to the knowledge of any Borrower, result in increased costs of at least one hundred thousand Dollars ($100,000);

(g)              
promptly after delivery or receipt thereof, copies of all material notices or documents given or received by any Borrower,
pursuant to any of the Project Documents including:

		(i)	any written notice alleging any breach or default thereunder; and

		(ii)	any written notice regarding, or request for consent to, any assignment, termination, modification, waiver or variation thereof;

(h)              
as soon as possible and in any event within five (5) Business Days after any Borrower knows, or has reason to know, that
any of the events described below have occurred, a duly executed certificate of an Authorized Officer of the Borrowers’ Agent
setting forth the details of each such event and the action that the Borrowers propose to take with respect thereto, together with
a copy of any notice or filing from the PBGC, Internal Revenue Service, Department of Labor or that may be required by the PBGC
or other U.S. Governmental Authority with respect to each such event:

		(i)	any Termination Event with respect to an ERISA Plan or a Multiemployer Plan has occurred or will occur that could reasonably
be expected to result in any material liability to any Borrower;

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		(ii)	any condition exists with respect to a Plan that presents a material risk of termination of a Plan (other than a standard termination
under Section 4041(b) of ERISA) or imposition of an excise tax or other material liability on any Borrower;

		(iii)	an application has been filed for a waiver of the minimum funding standard under Section 412 of the Code or Section 302 of
ERISA under any Plan;

		(iv)	any Borrower or any Plan fiduciary has engaged in a “prohibited transaction,” as defined in Section 4975 of the
Code or as described in Section 406 of ERISA, that is not exempt under Section 4975 of the Code and Section 408 of ERISA that could
reasonably be expected to result in material liability to any Borrower;

		(v)	there exists any Unfunded Benefit Liabilities under any ERISA Plan;

		(vi)	any condition exists with respect to a Multiemployer Plan that presents a risk of a partial or complete withdrawal (as described
in Section 4203 or 4205 of ERISA) from a Multiemployer Plan that could reasonably be expected to result in any liability to any
Borrower;

		(vii)	a “default” (as defined in Section 4219(c)(5) of ERISA) occurs with respect to payments to a Multiemployer Plan
and such default could reasonably be expected to result in any liability to any Borrower;

		(viii)	a Multiemployer Plan is in “reorganization” (as defined in Section 418 of the Code or Section 4241 of ERISA) or
is “insolvent” (as defined in Section 4245 of ERISA);

		(ix)	any Borrower and/or any ERISA Affiliate has incurred any potential withdrawal liability (as defined in accordance with Title
IV of ERISA); or

		(x)	there is an action brought against any Borrower or any ERISA Affiliate under Section 502 of ERISA with respect to its failure
to comply with Section 515 of ERISA;

(i)                
as soon as possible and in any event within five (5) Business Days after the receipt by any Borrower of a demand letter
from the PBGC notifying such Borrower of its final decision finding liability and the date by which such liability must be paid,
a copy of such letter, together with a duly executed certificate of the president or chief financial officer of such Borrower setting
forth the action that such Borrower proposes to take with respect thereto;

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(j)                
promptly and in any event within five (5) Business Days after the existence of any of the following conditions, a duly executed
certificate of an Authorized Officer of the Borrowers’ Agent specifying in detail the nature of such condition and, if applicable,
the Borrowers’ proposed response thereto:

		(i)	receipt by any Borrower of any written communication from a Governmental Authority or any written communication from any other
Person or other source of written information, including (to the extent not privileged) reports prepared by any Borrower, that
alleges or indicates that any Borrower or an Environmental Affiliate is not in compliance in all material respects with applicable
Environmental Laws or Environmental Approvals;

		(ii)	any Borrower obtains knowledge that there exists any Environmental Claim pending or threatened in writing against any Borrower
or an Environmental Affiliate;

		(iii)	any Borrower obtains knowledge of any release, threatened release, emission, discharge or disposal of any Material of Environmental
Concern or obtains knowledge of any material non-compliance with any Environmental Law that, in either such case, could reasonably
be expected to form the basis of an Environmental Claim against any Borrower or any Environmental Affiliate; or

		(iv)	any Removal, Remedial or Response action taken by any Borrower or any other person in response to any Material of Environmental
Concern in, at, on or under, a part of or about the Borrowers’ properties or any other property or any notice, claim or other
information that any of the Borrowers might be subject to an Environmental Claim;

(k)              
the Borrowers will maintain and make available for inspection by the Administrative Agent, the Consultants and, if an Event
of Default has occurred and is continuing, the Lenders, and each of their respective agents and employees, on reasonable notice
during regular business hours, accurate and complete records of all non-privileged correspondence, investigations, studies, sampling
and testing conducted, and any and all remedial actions taken, by any Borrower or, to the best of any Borrower’s knowledge
and to the extent obtained by any Borrower, by any Governmental Authority or other Person in respect of Materials of Environmental
Concern that could reasonably be expected to form the basis of an Environmental Claim on or affecting any Plant or the Project;

(l)                
within twenty-five (25) days after the end of each calendar month, an Operating Statement certified as complete and correct
by an Authorized Officer of the Borrower Agent regarding the operation and performance of each Plant for such month. Such Operating
Statements shall contain (i) line items corresponding to the Budget showing in reasonable detail all actual expenses related to
the operation and maintenance of each Plant compared to the budgeted expenses for such period, (ii) information showing the amount
of ethanol and other Products produced by each Plant during such period and (iii) information showing (A) the amount of ethanol
sold by the Borrowers from each Plant pursuant to the Ethanol Offtake Agreements, (B) the amount of Distillers Grains sold by the
Borrowers from each Plant pursuant to the DG Offtake Agreements, and (C) the amount, if any, of other sales of ethanol and/or Distillers
Grains, together with an explanation of any such sale and identification of the purchaser, and (D) the amount, if any, of other
Products sold by the Borrowers from the Plants, together with an explanation of any such sale and identification of the purchaser;
and

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(m)            
true, correct and complete copies of each Necessary Project Approval requested by the Administrative Agent; and

(n)              
other information reasonably requested by the Administrative Agent or any Lender, through the Administrative Agent.

ARTICLE
VIII

PROJECT ACCOUNTS

Section
8.01 Establishment of Project Accounts. The Accounts Bank has established and maintains, in the name of the Borrowers’
Agent and on the books and records of the Accounts Bank’s offices located in Amarillo, Texas the accounts set forth below:

(a)               
a special, segregated, Dollar-denominated account entitled “Amarillo Control - Pacific Ethanol Holding Co. LLC Revenue
Account”, Account No. 128864 (the “Revenue Account”);

(b)              
a special, segregated, Dollar-denominated account entitled “Amarillo Control - Pacific Ethanol Holding Co. LLC Operating
Account”, Account No. 128872 (the “Operating Account”);

(c)               
a special, segregated, Dollar-denominated account entitled “Amarillo Control - Pacific Ethanol Holding Co. LLC Maintenance
Capital Expense Account”, Account No. 128880 (the “Maintenance Capital Expense Account”);

(d)              
a special, segregated, Dollar-denominated account entitled “Amarillo Control - Pacific Ethanol Holding Co. LLC Debt
Service Reserve Account”, Account No. 129070 (the “Debt Service Reserve Account”);

(e)               
a special, segregated, Dollar-denominated account entitled “Amarillo Control - Pacific Ethanol Holding Co. LLC Madera
Insurance and Condemnation Proceeds Account”, Account No. 129097 (the “Madera Insurance and Condemnation Proceeds
Account”);

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(f)               
a special, segregated, Dollar-denominated account entitled “Amarillo Control - Pacific Ethanol Holding Co. LLC Boardman
Insurance and Condemnation Proceeds Account”, Account No. 129100 (the “Boardman Insurance and Condemnation Proceeds
Account”);

(g)              
a special, segregated, Dollar-denominated account entitled “Amarillo Control - Pacific Ethanol Holding Co. LLC Stockton
Insurance and Condemnation Proceeds Account”, Account No. 129119 (the “Stockton Insurance and Condemnation Proceeds
Account”);

(h)              
a special, segregated, Dollar-denominated account entitled “Amarillo Control - Pacific Ethanol Holding Co. LLC Burley
Insurance and Condemnation Proceeds Account”, Account No. 129135 (the “Burley Insurance and Condemnation Proceeds
Account”); and

(i)                
a special, segregated, Dollar-denominated account entitled “Amarillo Control - Pacific Ethanol Holding Co. LLC Extraordinary
Proceeds Account”, Account No. 129143 (the “Extraordinary Proceeds Account”).

Section
8.02 Deposits into and Withdrawals from Project Accounts. (a) Amounts shall be deposited into and withdrawn from
the Project Accounts in strict accordance with this Article VIII, subject to the Intercreditor Agreement.

(b)              
The Accounts Bank will only be required to transfer funds hereunder on a “same day” basis if it has received
written notice of such proposed transfer, together with all certificates, notices, directions and other documents required under
this Agreement to be delivered to the Accounts Bank relating thereto, not later than 3:00 pm New York City time on the Business
Day of such transfer and, if such notice or any such related document is received by the Accounts Bank after such time, such transfer
will be undertaken prior to 12:00 noon New York City time on the next Business Day succeeding the date of receipt by Accounts Bank
of all such documentation.

(c)               
If any transfer, withdrawal, deposit, investment or payment of any funds by the Accounts Bank or any other action to be
taken by the Accounts Bank under this Agreement is to be made or taken on a day other than a Business Day, such transfer, withdrawal,
deposit, investment, payment or other action will be made or taken on the next succeeding Business Day.

(d)              
Any instruction, direction, notice, certificate, request or requisition given to the Accounts Bank by any Borrower with
respect to the transfer, withdrawal, deposit, investment or payment of any funds under this Agreement or with respect to any other
obligations to be performed by the Accounts Bank under this Agreement (i) must be in writing and signed by an Authorized Officer
of the Borrowers’ Agent, (ii) in referencing any of the Project Accounts, must refer to the specific Project Account name
and number, (iii) shall constitute a representation by the Borrowers that all conditions set forth in this Agreement for such withdrawal
have been satisfied, whether or not those conditions are explicitly stated to be so satisfied and (iv) shall be copied to the Administrative
Agent, the Collateral Agent, the Senior Administrative Agent and the Senior Collateral Agent. Notwithstanding anything contained
in this Agreement or any other Financing Document to the contrary, the Accounts Bank may rely and shall be protected in acting
or refraining from acting upon any instruction, direction, notice, certificate, request or requisition of Borrowers’ Agent,
the Senior Administrative Agent or the Senior Collateral Agent or, from and after the Senior Discharge Date or if and when a payment
to or on behalf of the Senior Secured Parties is permitted hereunder, subject to the Intercreditor Agreement, the Administrative
Agent or Collateral Agent.

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(e)               
None of the Project Accounts shall go into overdraft, and the Accounts Bank shall not comply with any request or direction
to the extent that it would cause any of the Project Accounts to do so.

(f)               
Each Borrower hereby acknowledges that it has irrevocably instructed each Project Party, and agrees that it shall so instruct
each future Project Party, to make all payments due and payable to any Borrower under any Project Document, directly to the Accounts
Bank for deposit in, or to be credited in the manner set forth in this Article VIII. Each Borrower further agrees that it
shall irrevocably instruct each other Person from whom such Borrower is entitled to receive Cash Flow, Insurance Proceeds and Condemnation
Proceeds, to make all payments due and payable to any Borrower from such Person directly to the Accounts Bank for deposit, and
to be credited, in the manner set forth in this Article VIII.

(g)              
The Accounts Bank shall not be charged with knowledge of any Notice of Suspension, Default or Event of Default hereunder
or under the Senior Credit Agreement unless the Accounts Bank has received such Notice of Suspension or other written notice of
such Default or Event of Default from the Senior Administrative Agent or the Senior Collateral Agent (in either case, at the direction
of the Required Senior Lenders) or the Administrative Agent or the Collateral Agent (in either case, at the direction of the Required
Lenders) or an Authorized Officer of the Borrowers’ Agent or any Borrower.

(h)              
The Accounts Bank shall not be charged with the knowledge that any transfer or withdrawal from any Project Account would
result in the occurrence of a Default or Event of Default hereunder or under the Senior Credit Agreement, unless it has received
written notice thereof from the Senior Administrative Agent or the Senior Collateral Agent (with respect to any Default or Event
of Default under the Senior Credit Agreement), the Administrative Agent, the Collateral Agent or an Authorized Officer of the Borrowers’
Agent or any Borrower.

(i)                
Notwithstanding anything contained in this Agreement or any other Financing Document to the contrary, the Accounts Bank
shall have no obligation to (i) make any payment, transfer or withdrawal from any Project Account until it has received written
direction to make such payment, transfer or withdrawal from (x) the Senior Collateral Agent, the Senior Administrative Agent, the
Required Senior Lenders, or (y) from and after the Senior Discharge Date or if and when a payment to or on behalf of the Senior
Secured Parties is permitted by the Intercreditor Agreement, the Administrative Agent, the Collateral Agent or the Required Lenders,
or (z) if this Agreement explicitly provides that any such direction may be made by the Borrowers’ Agent, the Borrowers’
Agent or (ii) determine whether any payment, transfer or withdrawal from any Project Account made in accordance with any written
direction from the Senior Collateral Agent, the Senior Administrative Agent, the Required Senior Lenders, the Administrative Agent,
the Collateral Agent, the Required Lenders or the Borrowers’ Agent complies with the terms of this Agreement. The Accounts
Bank shall have no liability for, nor any responsibility or obligation to confirm, the use or application by any Borrower, Borrowers’
Agent, Administrative Agent, Collateral Agent, the Senior Administrative Agent, the Senior Collateral Agent, the Required Lenders,
the Required Senior Lenders or any other recipient of amounts withdrawn or transferred from any Project Account.

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Section
8.03 Revenue Account. (a) Each Borrower shall cause the following amounts to be paid into the Revenue Account:

		(i)	all Cash Flow;

		(ii)	except as set forth in Section 8.08(a)(i) (Extraordinary Proceeds Account), all proceeds from the sale or disposition
of any assets of any Borrower;

		(iii)	any other income received by or on behalf of any Borrower that is not required to be deposited in or credited to a Project
Account, or applied directly to the Obligations or the Senior Obligations, in accordance with this Agreement or the Senior Credit
Agreement, both as subject to the Intercreditor Agreement; and

		(iv)	amounts transferred to the Revenue Account pursuant to Section 2.05(c) (Funding of Loans), Section 8.06(c)
(Debt Service Reserve Account) and Sections 8.08(b)(i) and (c)(i) (Extraordinary Proceeds Account).

(b)              
Commencing on the Closing Date, unless a Notice of Suspension is in effect or a Default or Event of Default would occur
after giving effect to any application of funds contemplated hereby, upon receipt of a Revenue Account Withdrawal Certificate duly
executed by an Authorized Officer of the Borrowers’ Agent, the Accounts Bank shall, in accordance with the directions set
forth therein, cause funds held in the Revenue Account to be withdrawn or transferred to pay the following amounts on the dates
and at the priorities indicated below, subject to the Intercreditor Agreement:

		(i)	first,

		(a)	no more than three (3) times each calendar week, to the Operating Account, the amount certified by the Borrowers’ Agent
in such Revenue Account Withdrawal Certificate as required to pay Operation and Maintenance Expenses (other than Operation and
Maintenance Expenses related to corn, natural gas, electricity, insurance premiums and/or Borrower Taxes which are addressed in
sub-section (b) below) that, in each such case, are or will become due and payable during the then-current calendar month; provided,
that the aggregate amount of such transfers in such calendar month pursuant to this priority first (a), does not exceed
110% of the amount of such Operation and Maintenance Expenses set forth in the Budget for such calendar month, as certified by
the Borrower in such Revenue Account Withdrawal Certificate; and

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		(b)	no more than seven (7) times each calendar week; provided that it occur on a day which is a Business Day, to the Operating
Account, the amount certified by the Borrower’s Agent in such Revenue Account Withdrawal Certificate as required to pay some
or all of the cost of corn, natural gas, electricity, insurance premiums and/or Borrower Taxes that, in each such case, are or
will become due and payable during the current calendar month;

		(ii)	second, on each Monthly Date, to the Maintenance Capital Expense Account, in the amount certified by the Borrowers’
Agent in such Revenue Account Withdrawal Certificate as necessary to pay Maintenance Capital Expenses that, in each such case,
are or will become due and payable during the immediately succeeding calendar month; provided, that the amount of such transfer
of funds does not exceed 110% of the amount of Maintenance Capital Expenses set forth in the Budget for such immediately succeeding
calendar month;

		(iii)	third, on any date when due and payable, pro rata (on the basis of the aggregate of each such amount then due
and payable) to (A) the Senior Administrative Agent, for the account of the applicable Priority Senior Secured Parties, in the
amount certified by the Borrowers’ Agent in such Revenue Account Withdrawal Certificate or otherwise instructed in writing
to the Accounts Bank by the Senior Administrative Agent and/or the Required Senior Lenders as necessary to pay the Senior Fees,
costs, expenses and other amounts due and payable under the Senior Financing Documents (other than principal and interest on the
Senior Loans) and (B) the Administrative Agent, for the account of the applicable Senior Secured Parties, in the amount certified
by the Borrowers’ Agent in such Revenue Account Withdrawal Certificate or otherwise instructed in writing to the Accounts
Bank by the Administrative Agent and/or the Required Lenders as necessary to pay the Fees, costs, expenses and other amounts due
and payable under the Financing Documents (other than principal and interest on the Loans);

		(iv)	fourth, on any date when due and payable, to the Senior Administrative Agent, in the amount certified by the Borrowers’
Agent in such Revenue Account Withdrawal Certificate or otherwise instructed in writing to the Accounts Bank by the Required Senior
Lenders as necessary to pay any interest then due and payable pursuant to the Senior Credit Agreement (other than to any Defaulting
Lender thereunder);

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		(v)	fifth, on any date when due and payable, to the Administrative Agent, in the amount certified by the Borrowers’
Agent in such Revenue Account Withdrawal Certificate or otherwise instructed in writing to the Accounts Bank by the Required Lenders
as necessary to pay any interest then due and payable on the Revolving Loans and the Tranche A-1 Term Loans pro rata among
the Revolving Lenders (other than any Defaulting Lender) and the Tranche A-1 Lenders based on their respective outstanding principal
amounts on the date of such payment and any fees, expenses or Net Swap Payments owing to any Interest Rate Protection Provider;

		(vi)	sixth, on any date when due and payable, to the Senior Administrative Agent, in the amount certified by the Borrowers’
Agent in such Revenue Account Withdrawal Certificate or otherwise instructed in writing to the Accounts Bank by the Required Senior
Lenders as necessary to pay any interest then due and payable pursuant to the Senior Credit Agreement among the Defaulting Lenders
thereunder;

		(vii)	seventh, on any date when due and payable, to the Administrative Agent, in the amount certified by the Borrowers’
Agent in such Revenue Account Withdrawal Certificate or otherwise instructed in writing to the Accounts Bank by the Required Lenders
as necessary to pay any interest then due and payable on the Revolving Loans pro rata among the Defaulting Lenders based
on their respective outstanding principal amounts on the date of such payment;

		(viii)	eighth, on any date when due and payable, to the Administrative Agent, in the amount certified by the Borrowers’
Agent in such Revenue Account Withdrawal Certificate or otherwise instructed in writing to the Accounts Bank by the Required Lenders
as necessary to pay any interest then due and payable on the Tranche A-2 Term Loans pro rata among the Tranche A-2 Lenders based
on their respective outstanding principal amounts on the date of such payment;

		(ix)	ninth, on the Senior Maturity Date or when applied by the Borrowers’ Agent to an optional prepayment in accordance
with Section 3.07 of the Senior Credit Agreement (unless such payment has been declined in accordance with Section 3.07(b) of the
Senior Credit Agreement), to the Senior Administrative Agent, the amount certified by the Borrowers’ Agent in such Revenue
Account Withdrawal Certificate or otherwise instructed in writing to the Accounts Bank by the Required Senior Lenders as the principal
amounts due and payable on the Senior Loans other than to any Defaulting Lender (as defined in the Senior Credit Agreement);

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		(x)	tenth, on the Senior Maturity Date or when applied by the Borrowers’ Agent to an optional prepayment in accordance
with Section 3.07 of the Senior Credit Agreement (unless such payment has been declined in accordance with Section 3.07(b) of the
Senior Credit Agreement), to the Senior Administrative Agent, the amount certified by the Borrowers’ Agent in such Revenue
Account Withdrawal Certificate or otherwise instructed in writing to the Accounts Bank by the Required Senior Lenders as the principal
amounts due and payable on the Senior Loans among the Defaulting Lenders (as defined in the Senior Credit Agreement) under the
Senior Credit Agreement;

		(xi)	eleventh, on each Monthly Date, to the Administrative Agent, the amount certified by the Borrowers’ Agent in such
Revenue Account Withdrawal Certificate or otherwise instructed in writing to the Accounts Bank by the Required Lenders as the payments
of Swap Termination Value then due and payable by the Borrowers with respect to any Interest Rate Protection Agreements;

		(xii)	twelfth, provided that no Default or Event of Default has occurred and is continuing, on each date on which a re-payment
of principal of a Loan is made, in an amount certified by the Borrowers’ Agent in such Revenue Account Withdrawal Certificate
to the Persons or accounts specified in such Revenue Account Withdrawal Certificate (including, if required to be paid directly
to any taxing authority, to such taxing authority) for payment of any Permitted Tax Distribution;

		(xiii)	thirteenth, on the Maturity Date or when applied by the Borrowers’ Agent to an optional prepayment in accordance
with Section 3.07 (Optional Prepayment), to the Administrative Agent, the amount certified by the Borrowers’
Agent in such Revenue Account Withdrawal Certificate or otherwise instructed in writing to the Accounts Bank by the Required Lenders
as the principal amounts due and payable on the Revolving Loans and the Tranche A-1 Term Loans (accompanied, in the case of the
Tranche A-1 Loans that are held by Extended Lenders, with any prepayment premium required by Section 3.15 (Prepayment Premium))
pro rata among the Revolving Lenders (other than any Defaulting Lender) and the Tranche A-1 Lenders based on their respective
outstanding principal amounts on the date of such payment;

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		(xiv)	fourteenth, on the Maturity Date or when applied by the Borrowers’ Agent to an optional prepayment in accordance
with Section 3.07 (Optional Prepayment), to the Administrative Agent, the amount certified by the Borrowers’
Agent in such Revenue Account Withdrawal Certificate or otherwise instructed in writing to the Accounts Bank by the Required Lenders
as the principal amounts due and payable on the Revolving Loans pro rata among the Defaulting Lenders based on their respective
outstanding principal amounts on the date of such payment;

		(xv)	fifteenth, on the Maturity Date or when applied by the Borrowers’ Agent to an optional prepayment in accordance
with Section 3.07 (Optional Prepayment), to the Administrative Agent, the amount certified by the Borrowers’
Agent in such Revenue Account Withdrawal Certificate or otherwise instructed in writing to the Accounts Bank by the Required Lenders
as the principal amounts due and payable on the Tranche A-2 Term Loans pro rata among the Tranche A-2 Lenders based on their
respective outstanding principal amounts on the date of such payment;

		(xvi)	sixteenth, on each Monthly Date, to the Debt Service Reserve Account, in the amount certified by the Borrowers’
Agent in such Revenue Account Withdrawal Certificate or otherwise instructed in writing to the Accounts Bank by the Required Senior
Lenders or the Required Lenders, as equal to the difference between (A) the Debt Service Reserve Requirement and (B) the funds
on deposit in or standing to the credit of the Debt Service Reserve Account on such Monthly Date;

		(xvii)	seventeenth, on each Monthly Date, to the Senior Administrative Agent in the amount certified by the Borrowers in such
Revenue Account Withdrawal Certificate or otherwise instructed in writing to the Accounts Bank by the Required Senior Lenders,
for application as a prepayment of the Senior Loans in accordance with Section 3.08(a)(v) (Mandatory Prepayment)
of the Senior Credit Agreement in an amount equal to the lesser of (x) one hundred percent (100%) of the cash remaining in the
Revenue Account after the transfer required pursuant to priority sixteenth, if any and (y) the outstanding Senior Loans;

		(xviii)	eighteenth, on each Monthly Date, to the Administrative Agent in the amount certified by the Borrowers in such Revenue
Account Withdrawal Certificate or otherwise instructed in writing to the Accounts Bank by the Required Lenders, for application
as a prepayment of the Term Loans in accordance with Section 3.08(a)(v) (Mandatory Prepayment) in an amount
equal to the lesser of (x) one hundred percent (100%) of the cash remaining in the Revenue Account after the transfer required
pursuant to priority seventeenth, if any and (y) the outstanding Term Loans; and

		(xix)	nineteenth, reasonably promptly following payment and performance in full of the Senior Obligations and the Obligations,
to the Pledgor in the amount certified by the Borrowers’ Agent in such Revenue Account Withdrawal Certificate.

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Section
8.04 Operating Account. (a) Funds shall be deposited into
the Operating Account pursuant to Section 8.03(b)(i) (Revenue Account).

(b)              
Unless a Notice of Suspension is in effect or a Default or Event of Default would occur after giving effect to any application
of funds contemplated hereby, and so long as adequate funds are then available in the Operating Account, the Borrowers:

		(i)	may, by written instruction to the Accounts Bank (with a copy to the Collateral Agent), withdraw or transfer funds from the
Operating Account from time to time as may be necessary to pay directly any amounts owed by the Borrowers for Operation and Maintenance
Expenses; and

		(ii)	may direct the transfer of funds to the Local Accounts from time to time, by delivery of an Operating Account Withdrawal Certificate
to the Accounts Bank; provided, that the funds on deposit in and standing to the credit of all Local Accounts with respect
to which a Blocked Account Agreement has been executed and is in full force and effect do not exceed, in the aggregate at any one
time, two hundred thousand Dollars ($200,000), as certified by the Borrowers’ Agent in such Operating Account Withdrawal
Certificate.

Section
8.05 Maintenance Capital Expense Account. (a) Funds shall be deposited into the Maintenance Capital Expense Account
pursuant to Section 8.03(b)(ii) (Revenue Account).

(b)              
Unless a Notice of Suspension is in effect or a Default or Event of Default would occur after giving effect to any application
of funds contemplated hereby, and so long as adequate funds are then available in the Maintenance Capital Expense Account, the
Borrowers may, by written instruction to the Accounts Bank (with a copy to the Collateral Agent), withdraw or transfer funds from
the Maintenance Capital Expense Account from time to time as may be necessary to pay directly any amounts owed by the Borrowers
for Maintenance Capital Expenses in accordance with the most recent Revenue Account Withdrawal Certificate.

Section
8.06 Debt Service Reserve Account. (a) Funds shall
be deposited into the Debt Service Reserve Account pursuant to Section 8.03(b)(xvii) (Revenue Account).

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(b)              
On any date when the amounts available at priorities third through eleventh and thirteenth through
fifteenth as set forth in Section 8.03(b) (Revenue Account) are insufficient to pay Debt Service then due and
owing, the Accounts Bank shall (upon written notification from the Borrowers’ Agent or the Required Senior Lenders, or from
and after the Senior Discharge Date, the Required Lenders, setting forth the amount of such shortfall) withdraw funds from the
Debt Service Reserve Account to pay to the Administrative Agent, for the account of the Senior Secured Parties, the amount of such
shortfall of the Debt Service then due and payable, which funds shall be applied in the order of priority set forth in priorities
third through eleventh and thirteenth through fifteenth of Section 8.03(b) (Revenue Account).
The Accounts Bank shall promptly notify the Senior Administrative Agent, the Administrative Agent, the Senior Collateral Agent
and the Collateral Agent if, at any time, there are insufficient funds standing to the credit of the Debt Service Reserve Account
to make the payments required under this Section 8.06(b).

(c)               
If, on any Monthly Date, the funds on deposit in or standing to the credit of the Debt Service Reserve Account are in excess
of the Debt Service Reserve Requirement, unless a Notice of Suspension is in effect or a Default or Event of Default would occur
after giving effect to such transfer, the Borrowers may direct, by delivery of a Debt Service Reserve Release Certificate to the
Accounts Bank (with a copy to the Senior Administrative Agent and the Administrative Agent) at least ten (10) Business Days prior
to the requested transfer date, the transfer to the Revenue Account of an amount equal to the difference between (x) the aggregate
total amount of all funds on deposit in or standing to the credit of the Debt Service Reserve Account and (y) the Debt Service
Reserve Requirement, as certified by the Borrowers’ Agent in such Debt Service Reserve Release Certificate; provided, that
no such transfer shall occur if the Required Senior Lenders or the Required Lenders have given written notice to the Borrowers,
the Administrative Agent and the Accounts Bank of a dispute of the calculations set forth in any Debt Service Reserve Release Certificate
at least two (2) Business Days prior to the requested transfer date (which written notice shall include a reasonably detailed description
of the basis of such dispute), until such time as the Required Senior Lenders or the Required Lenders, as applicable, provide written
notice to the Borrowers, the Senior Administrative Agent and the Administrative Agent and the Accounts Bank that such dispute has
been resolved.

Section
8.07 Insurance and Condemnation Proceeds Accounts. (a) From and after the Closing Date, in the case of Pacific Holding
and each other Borrower and such Borrower’s Plant, the applicable Borrowers shall cause all Insurance Proceeds and all Condemnation
Proceeds payable to each such Borrower, or otherwise relating to such Plant, to be deposited in or credited to the Insurance and
Condemnation Proceeds Account for such Plant.

(b)              
The Borrowers shall not make, direct, or request the Accounts Bank to make, any withdrawals from any Insurance and Condemnation
Proceeds Account except as permitted by this Section 8.07 and the Intercreditor Agreement, and provided that no Notice of
Suspension has been delivered that has not been withdrawn and no Default or Event of Default would occur as a result of such transfer
or withdrawal.

(c)               
The Borrowers may apply any Insurance Proceeds and Condemnation Proceeds deposited into any Insurance and Condemnation Proceeds
Account in amounts less than or equal to one million Dollars ($1,000,000) arising from any one claim or any series of claims relating
to the same occurrence with respect to a Plant not in Cold Shutdown on the date of such occurrence directly for the replacement
or repair of damaged assets to which such Insurance Proceeds or Condemnation Proceeds, as the case may be, relate; provided,
that the Borrowers deliver to the Senior Administrative Agent, the Administrative Agent and the Accounts Bank, no fewer than three
(3) Business Days in advance of any such proposed transfers or withdrawals from such Insurance and Condemnation Proceeds Account,
an Insurance and Condemnation Proceeds Request Certificate setting forth proposed instructions for such withdrawals or transfers.
An Authorized Officer of the Borrowers’ Agent shall certify that each Insurance and Condemnation Proceeds Request Certificate
is being delivered, and the withdrawals specified therein are being directed, in accordance with this Agreement and the other Transaction
Documents, and shall also certify that the directed withdrawals or transfers will be used exclusively for repair or replacement
of damaged assets to which such Insurance Proceeds or Condemnation Proceeds, as the case may be, relate.

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(d)              
Any Insurance Proceeds and Condemnation Proceeds deposited into any Insurance and Condemnation Proceeds Account in amounts
greater than one million Dollars ($1,000,000) but less than or equal to two million five hundred thousand Dollars ($2,500,000)
arising from any one claim or any series of claims relating to the same occurrence with respect to a Plant not in Cold Shutdown
on the date of such occurrence shall:

		(i)	be applied for repair or replacement of damaged assets to which such Insurance Proceeds or Condemnation Proceeds, as the case
may be, relate in accordance with the Borrowers’ direction in an Insurance and Condemnation Proceeds Request Certificate
delivered to the Senior Administrative Agent, the Administrative Agent and the Accounts Bank if, within sixty (60) days after the
occurrence of the Casualty Event or Event of Taking giving rise to such proceeds, the Borrowers deliver a Restoration or Replacement
Plan to the Senior Administrative Agent, the Administrative Agent and the Independent Engineer with respect to such Casualty Event
or Event of Taking that is based upon, and accompanied by, each of the following:

		(A)	a description of the nature and extent of such Casualty Event or Event of Taking, as the case may be;

		(B)	a bona fide assessment (from a contractor reasonably acceptable to the Independent Engineer) of the estimated cost and time
needed to restore or replace the relevant Plant to substantially the same value and general performance capability as prior to
such event;

		(C)	reasonably satisfactory evidence that such Insurance Proceeds or Condemnation Proceeds, as the case may be, are sufficient
to make the necessary restorations or replacements;

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		(D)	a certificate of an Authorized Officer of the Borrowers’ Agent certifying that (1) all work contemplated to be done under
the Restoration or Replacement Plan can be done within the time periods, if any, required under any Project Document relating to
the relevant Plant; (2) all Governmental Approvals necessary to perform the work have been obtained (or are reasonably expected
to be obtained without undue delay); and (3) the relevant Plant once repaired/restored will continue to perform at the levels set
forth in the then-current Budget for such Plant with respect to production volume, yield and utility consumption (or other levels
approved by the Required Senior Lenders or, after the Senior Discharge Date, the Required Lenders of the Revolving Loan Class);

		(E)	the Casualty Event or Event of Taking, as the case may be (including the non-operation of such Plant during any period of repair
or restoration) has not resulted or would not reasonably be expected to result in a default giving rise to a termination of, or
a materially adverse modification of, one or more of the Governmental Approvals or Project Documents;

		(F)	after taking into consideration the availability of such Insurance Proceeds or Condemnation Proceeds, as applicable, and Business
Interruption Insurance Proceeds and any additional documented voluntary equity contributions for the purpose of covering such costs,
there will be adequate amounts available to pay all ongoing expenses including Debt Service during the period of repair or restoration;

		(G)	construction contractors and vendors of recognized skill, reputation and creditworthiness and reasonably acceptable to the
Senior Administrative Agent or, from and after the Senior Discharge Date, the Administrative Agent have executed reconstruction
contracts, purchase orders or similar arrangements for the repair, rebuilding or restoration on terms and conditions reasonably
acceptable to the Senior Administrative Agent or, from and after the Senior Discharge Date, the Administrative Agent; and

		(H)	a confirmation by the Independent Engineer of its agreement with the matters set forth in Section 8.07(d)(i)(A)-(G)
and its approval of such Restoration or Replacement Plan; or

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		(ii)	if (A) the Borrowers do not deliver such Restoration or Replacement Plan and the accompanying deliveries referred to in Section
8.07(d)(i) within such sixty (60) day period or (B) after the completion of such Restoration or Replacement Plan, there are
excess Insurance Proceeds or Condemnation Proceeds, as the case may be, on deposit in or standing to the credit of the Insurance
and Condemnation Proceeds Account, the Accounts Bank shall on the next succeeding Monthly Date thereafter, upon the written instruction
of the Borrowers’ Agent or the Required Senior Lenders or from and after the Senior Discharge Date, the Required Lenders,
transfer to the Senior Administrative Agent or the Administrative Agent, for the account of the Senior Lenders or the Lenders (in
each case as applicable), an amount equal to such Insurance Proceeds or Condemnation Proceeds, as the case may be, subject to the
Intercreditor Agreement, first, for mandatory prepayment of the Senior Loans in accordance with Section 3.08 (Mandatory Prepayment)
of the Senior Credit Agreement and thereafter, for mandatory prepayment of Loans in accordance with Section 3.08 (Mandatory
Prepayment).

(e)               
Any Insurance Proceeds or Condemnation Proceeds deposited into any Insurance and Condemnation Proceeds Account (i) in amounts
greater than two million five hundred thousand Dollars ($2,500,000) arising from any one claim or any series of claims relating
to the same occurrence with respect to a Plant not in Cold Shutdown on the date of such occurrence or (ii) arising from any one
claim or any series of claims relating to the same occurrence with respect to a Plant in Cold Shutdown on the date of such occurrence
shall, in each case, be applied, subject to the Intercreditor Agreement, first, for mandatory prepayment of the Senior Loans in
accordance with Section 3.08 (Mandatory Prepayment) of the Senior Credit Agreement and thereafter, for mandatory
prepayment of Loans in accordance with Section 3.08 (Mandatory Prepayment).

Section
8.08 Extraordinary Proceeds Account. (a) From and
after the Closing Date, each Borrower shall cause (i) all proceeds of asset disposals (other than proceeds from the sale of Products)
that will not be used for replacement in accordance with Section 7.02(f)(i) (Negative Covenants - Asset Dispositions)
and (ii) all Project Document Termination Payments to be deposited into the Extraordinary Proceeds Account.

(b)              
If at any time proceeds of an asset disposal are deposited into the Extraordinary Proceeds Account, then on any Monthly
Date:

		(i)	if such proceeds are in an amount in the aggregate of less than one million Dollars ($1,000,000) (taken together with any other
proceeds of asset disposals deposited in the Extraordinary Proceeds Account during the then-current Fiscal Year) the Borrowers
may submit an Extraordinary Proceeds Release Notice to the Accounts Bank, certified by an Authorized Officer of the Borrowers’
Agent, directing the transfer of such funds to the Revenue Account; and

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		(ii)	if such proceeds are in an amount equal to or greater than one million Dollars ($1,000,000) (taken together with any other
proceeds of asset disposals deposited in the Extraordinary Proceeds Account during the then-current Fiscal Year), such amounts
shall be transferred, upon the written instruction of the Borrowers’ Agent, the Required Senior Lenders or, from and after
the Senior Discharge Date, the Required Lenders, to the Senior Administrative Agent or the Administrative Agent, as applicable,
for application, subject to the Intercreditor Agreement, first, for mandatory prepayment of the Senior Loans in accordance with
Section 3.08 (Mandatory Prepayment) of the Senior Credit Agreement and thereafter, for mandatory prepayment of Loans
in accordance with Section 3.08 (Mandatory Prepayment).

(c)               
If at any time Project Document Termination Payments are deposited into the Extraordinary Proceeds Account, then on any
Monthly Date:

		(i)	if such Project Document Termination Payments are in an amount in the aggregate of less than one million Dollars ($1,000,000)
(taken together with any other Project Document Termination Payments received during the then-current Fiscal Year), the Borrowers
may submit an Extraordinary Proceeds Release Notice to the Accounts Bank, certified by an Authorized Officer of the Borrowers’
Agent, directing the transfer of such Project Document Termination Payments to the Revenue Account; and

		(ii)	if such Project Document Termination Payments are in an amount equal to or greater than one million Dollars ($1,000,000) (taken
together with any other Project Document Termination Proceeds received during the then-current Fiscal Year), such amounts shall
be transferred, upon the written instruction of the Borrowers’ Agent, the Required Senior Lenders or, from and after the
Senior Discharge Date, the Required Lenders, to the Senior Administrative Agent or the Administrative Agent, as applicable, for
application, subject to the Intercreditor Agreement, first, for mandatory prepayment of the Senior Loans in accordance with Section
3.08 (Mandatory Prepayment) of the Senior Credit Agreement and thereafter, for mandatory prepayment of Loans in accordance
with Section 3.08 (Mandatory Prepayment).

Section
8.09 Representations, Warranties and Covenants of Accounts Bank. The Accounts Bank hereby represents and warrants,
covenants and agrees with the Lenders, the Agents and the Borrowers (and the other parties hereto agree, to the extent set forth
below) as follows:

(a)               
it has all times acted and will act as depositary agent, as “securities intermediary” (within the meaning of
Section 8-102(a)(14) of the UCC) with respect to each of the Project Accounts that is a “securities account” (within
the meaning of Section 8-501 of the UCC) and the Financial Assets credited to such Project Accounts, and as “bank”
(within the meaning of 9-102(a)(8) of the UCC) with respect to each of the Project Accounts as described in Section 8.11 (Project
Accounts as Deposit Accounts) and credit balances not constituting Financial Assets credited thereto and to accept all
cash, payments, other amounts and Cash Equivalents to be delivered to or held by the Accounts Bank pursuant to the terms of this
Agreement. The Borrowers, the Senior Secured Parties and the Accounts Bank agree that, for purposes of Articles 8 and 9 of the
UCC, notwithstanding anything to the contrary contained in any other agreement relating to the establishment and operation of the
Project Accounts, the jurisdiction of the Accounts Bank (in its capacity as the securities intermediary and bank) is the State
of New York;

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(b)              
the Accounts Bank hereby agrees and confirms that it has established and maintains the Project Accounts as set forth and
defined in this Agreement. The Accounts Bank agrees that (i) each such Project Account established by the Accounts Bank has at
all times been and will be maintained as a “securities account” (within the meaning of Section 8501 of the UCC); (ii)
the Borrowers’ Agent is the “entitlement holder” (within the meaning of Section 8102(a)(7) of the UCC) in respect
of the “financial assets” (within the meaning of Section 8102(a)(9) of the UCC, the “Financial Assets”)
credited to such Project Accounts that are “securities accounts”; (iii) all Financial Assets in registered form or
payable to or to the order of and credited to any such Project Account have at all times been and are registered in the name of,
payable to or to the order of, or specially endorsed to, the Accounts Bank or in blank, or credited to another securities account
maintained in the name of the Accounts Bank; and (iv) in no case will any Financial Asset credited to any such Project Account
be registered in the name of, payable to or to the order of, or endorsed to, the Borrowers’ Agent, Pacific Holding or any
other Borrower except to the extent the foregoing have been subsequently endorsed by such Person to the Accounts Bank or in blank.
Each item of property (including a security, security entitlement, investment property, instrument or obligation, share, participation,
interest or other property whatsoever) credited to any Project Account has at all times been and shall be, in each case to the
fullest extent permitted by law be treated as a Financial Asset. Until the Discharge Date, with respect to the Collateral Agent,
and until the Senior Discharge Date with respect to the Senior Collateral Agent, this Agreement is intended to provide both the
Senior Collateral Agent and the Collateral Agent with “control” (within the meaning of Section 8106(d)(2) or Section
9-104(a) (as applicable) of the UCC) of the Project Accounts and each Borrower’s “security entitlements” (within
the meaning of Section 8102(a)(17) of the UCC) with respect to the Financial Assets credited to the Project Accounts. The parties’
intention is that the security interest of the Collateral Agent in the Project Accounts remain perfected while allowing the Senior
Collateral Agent to perfect, as of the Closing Date under (and as defined in) the Senior Credit Agreement, its security interest
in the Project Accounts, and thereafter that the security interest of both the Collateral Agent and the Senior Collateral Agent
in the Project Accounts be and remain perfected. The Borrowers’ Agent hereby irrevocably directs, and the Accounts Bank (in
its capacity as securities intermediary) hereby agrees, that the Accounts Bank will comply with all instructions and orders (including
entitlement orders within the meaning of Section 8-102(a)(8) of the UCC) regarding each Project Account and any Financial Asset
therein originated by the Senior Collateral Agent or the Collateral Agent, in each case without the further consent of the Borrowers’
Agent or any other Person; provided that the Collateral Agent agrees that it will only originate and deliver to the Accounts Bank
such instructions, orders and entitlement orders as are permitted in accordance with the terms of this Agreement and the Intercreditor
Agreement. In the case of a conflict between any instruction or order originated by the Senior Collateral Agent or the Collateral
Agent and any instruction or order originated by the Borrowers’ Agent or any other Person other than a court of competent
jurisdiction, the instruction or order originated by the Senior Collateral Agent or the Collateral Agent, as applicable, shall
prevail. In the case of a conflict between any instruction or order originated by the Senior Collateral Agent and any instruction
or order originated by the Collateral Agent, the instruction or order originated by the Senior Collateral Agent shall prevail until
the Senior Discharge Date (unless payment to or on behalf of the Senior Secured Parties is permitted by the Intercreditor Agreement)
and thereafter the instruction or order originated by the Collateral Agent shall prevail. The Accounts Bank shall not change the
name or account number of any Project Account without the prior written consent of the Senior Collateral Agent and the Collateral
Agent and at least five (5) Business Days’ prior notice to the Borrowers’ Agent, and shall not change the entitlement
holder;

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(c)               
the Accounts Bank shall promptly perform all duties imposed upon a securities intermediary and a bank under the UCC and
this Agreement. In this regard, (i) if the Accounts Bank has knowledge that an issuer of any Financial Asset is required to make
a payment or distribution in respect of such Financial Asset, the Accounts Bank shall have fulfilled its duty under applicable
Law to take action to obtain such payment or distribution if (A) it credits such payment or distribution to the Project Accounts
in accordance with this Agreement if such payment or distribution is made or (B) it notifies the Borrowers’ Agent, the Senior
Collateral Agent, the Collateral Agent, the Senior Administrative Agent and the Administrative Agent that such payment or distribution
has not been made, and (ii) if the Accounts Bank is required by applicable Law or this Agreement to credit to any Project Account
any Financial Asset purported to be transferred or credited to the Accounts Bank pursuant to applicable Law, the Accounts Bank
shall have fulfilled its duty to so credit any Project Account if it credits as a security entitlement to the applicable party
whatever rights the Accounts Bank purportedly has, in its capacity as Accounts Bank, in the Financial Asset transferred or credited
to the Accounts Bank, in its capacity as Accounts Bank, and the Accounts Bank shall have no duty to ensure that applicable Law
has been complied with in respect of the transfer of the Financial Asset or to create a security interest in or Lien on any Financial
Asset purported to be transferred or credited to the Accounts Bank and subsequently credited to any Project Account;

(d)              
all Financial Assets acquired by or delivered to the Accounts Bank shall be held by the Accounts Bank and credited by book
entry to the relevant Project Account or otherwise accepted by the Accounts Bank for credit to the relevant Project Account;

(e)               
each item of property (including any cash, security, general intangible, document, instrument or obligation, share, participation,
interest or other property whatsoever) deposited in or credited to any Project Account shall be treated as a Financial Asset for
the purposes of Section 8-102(a)(9)(iii) of the UCC. Notwithstanding any provision herein contained to the contrary, any property
contained in the Project Accounts that is not deemed to be a Financial Asset under applicable Law, to the extent permitted by applicable
Law, will be deemed to be deposited in a deposit account and subject to Section 8.11 (Project Accounts as Deposit Account);

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(f)               
the Collateral Agent shall have control of the security entitlements carried in the Project Accounts and of the Financial
Assets carried in the Project Accounts, and each Borrower hereby disclaims any entitlement to claim control of such security entitlements;

(g)              
all property delivered to the Accounts Bank pursuant to this Agreement or the other Financing Documents will be promptly
deposited in or credited to a Project Account by an appropriate entry in its records in accordance with this Agreement;

(h)              
if any Person (other than the Senior Collateral Agent, on behalf and for the benefit of the Priority Senior Secured Parties,
or the Collateral Agent, on behalf and for the benefit of the Senior Secured Parties) asserts any lien, encumbrance or adverse
claim (including any writ, garnishment, judgment, warrant of attachment, execution or similar process) against any Project Account
or in any Financial Asset or other property deposited therein or credited thereto of which the Accounts Bank has actual knowledge,
the Accounts Bank will promptly notify the Senior Collateral Agent, the Collateral Agent, the Senior Administrative Agent, the
Administrative Agent and the Borrowers’ Agent in writing thereof; and

(i)                
the Accounts Bank has not entered into and will not enter into any agreement with respect to the Project Accounts or any
Financial Assets or other property deposited in or credited to any Project Account other than this Agreement, the Senior Credit
Agreement and its Fee Letters hereunder and thereunder. The Accounts Bank has not entered into and will not enter into any agreement
with any Borrower or any other Person purporting to limit or condition the obligation of the Accounts Bank to comply with entitlement
orders or any other order originated by the Senior Collateral Agent or Collateral Agent in accordance with Section 8.09(b) (Representations,
Warranties and Covenants of Accounts Bank) or Sections 8.11(b) or (c) (Project Accounts as Deposit Account).

Section
8.10 Project Accounts. (a) The Accounts Property will
not constitute repayment of the Obligations until so applied as payments in accordance with the terms of this Agreement and the
other Financing Documents.

(b)              
The Accounts Bank shall not have title to the funds on deposit in the Project Accounts, and shall credit the Project Accounts
with all receipts of interest, dividends and other income received on the property held in the Project Accounts. The Accounts Bank
shall administer and manage the Project Accounts in strict compliance with its duties with respect to the Project Accounts pursuant
to this Agreement, and shall be subject to and comply with all of the obligations that the Accounts Bank owes to the Borrowers’
Agent, the Senior Collateral Agent on behalf of the Priority Senior Secured Parties and the Collateral Agent, on behalf of the
Senior Secured Parties, with respect to the Project Accounts, including all subordination obligations set forth in Section 8.13
(Subordination) with respect to the Accounts Bank’s right of set-off or recoupment or right to obtain a Lien,
pursuant to the terms of this Agreement and the Senior Credit Agreement. The Accounts Bank hereby agrees to comply with any and
all instructions originated by the Senior Collateral Agent and the Collateral Agent directing the disbursement, deposit and/or
transfer of any funds and all other property held in the Project Accounts without any further consent of any Borrower or any other
Person (provided that the Collateral Agent agrees that it will only originate and deliver to the Accounts Bank such instructions,
orders and entitlement orders as are permitted in accordance with the terms of this Agreement and the Intercreditor Agreement)
and to comply with any and all instructions originated by the Borrowers’ Agent directing the disbursement, deposit and/or
transfer of any funds and all other property held in the Project Accounts subject to the terms of this Agreement and the Senior
Credit Agreement.

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Section
8.11 Project Accounts as Deposit Account. (a) To the
extent that the Project Accounts are not considered securities accounts, the Project Accounts shall be deemed to be deposit accounts
in respect of any property deposited in or credited to the Project Accounts that is not deemed to be a Financial Asset under applicable
Law. Such deposit accounts and such property shall be maintained with the Accounts Bank acting not as a securities intermediary,
but as a bank.

(b)              
The Borrowers’ Agent shall be deemed the customer of the Accounts Bank for purposes of the Project Accounts and, as
such, shall be entitled to all of the rights that customers of banks have under applicable Law with respect to deposit accounts,
including the right to withdraw funds from, or close, the Project Accounts, in each such case subject to, and in accordance with,
the terms of this Agreement and the Senior Credit Agreement.

(c)               
The parties hereto agree that, to the extent that the Project Accounts are not considered “securities accounts”
(within the meaning of Section 8-501(a) of the UCC), the Project Accounts shall be deemed to be “deposit accounts”
(as defined in Section 9-102(a)(29) of the UCC) to the extent a security interest can be granted and perfected under the UCC in
the Project Accounts as deposit accounts, which the Borrowers shall maintain with the Accounts Bank acting not as a securities
intermediary but as a “bank” (within the meaning of Section 9-102(a)(8) of the UCC).

Section
8.12 Duties of Accounts Bank. (a) The Accounts Bank
will also have those duties and responsibilities expressly set forth in this Agreement and the Senior Credit Agreement, and no
additional duties, responsibilities, obligations or liabilities shall be inferred from the provisions of this Agreement or imposed
on the Accounts Bank. The Accounts Bank will act at the written direction of (x) the Senior Collateral Agent and the Collateral
Agent (provided that the Collateral Agent agrees that it will only originate and deliver to the Accounts Bank such instructions,
orders and entitlement orders as are permitted in accordance with the terms of this Agreement and the Intercreditor Agreement),
(y) the Senior Administrative Agent and the Administrative Agent (provided that the Administrative Agent agrees that it will only
originate and deliver to the Accounts Bank such instructions, orders and entitlement orders as are permitted in accordance with
the terms of this Agreement and the Intercreditor Agreement) and (z) as expressly provided in this Agreement or the Senior Credit
Agreement, Borrowers’ Agent, but will not be required to take any action that is contrary to this Agreement, the Senior
Credit Agreement or applicable Law or that, in its reasonable judgment, would involve it in expense or liability, unless it has
been furnished with adequate indemnity against such expense or liability. The Accounts Bank will have no responsibility to ensure
the performance by any other party of its duties and obligations hereunder. The Accounts Bank will use the same care with respect
to the safekeeping and handling of property held in the Project Accounts as the Accounts Bank uses in respect of property held
for its own sole benefit.

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(b)              
In performing its functions and duties under this Agreement and the Senior Credit Agreement, the Accounts Bank will act
solely as the depository agent and as securities intermediary or as a bank, as the case may be, with respect to the Project Accounts.
None of the Senior Secured Parties or any Borrower will have any rights against the Accounts Bank hereunder, other than for the
Accounts Bank’s gross negligence or willful misconduct as determined by a court of competent jurisdiction by final and Non-Appealable
judgment. Except as otherwise expressly provided in this Agreement, the Senior Credit Agreement and the Intercreditor Agreement,
the Borrowers will not have any right to direct the Accounts Bank to distribute or allocate any funds, instruments, securities,
Financial Assets or other assets in the Project Accounts or to withdraw or transfer any funds, instruments, securities, Financial
Assets or other assets from the Project Accounts. Except as otherwise expressly provided in this Agreement, the Senior Credit Agreement
and the Intercreditor Agreement, the Senior Collateral Agent and the Collateral Agent will have the sole right to issue directions
and instructions to the Accounts Bank, acting as securities intermediary or bank, as the case may be, in accordance with this Agreement,
and to issue entitlement orders with respect to the Project Accounts; provided that the Collateral Agent agrees that it will only
originate and deliver to the Accounts Bank such instructions, orders and entitlement orders as are permitted in accordance with
the terms of this Agreement and the Intercreditor Agreement. It is expressly understood and agreed that any investment made with
funds held in the Project Accounts may be made only in accordance with the express provisions of Section 8.16 (Interest and
Investments). The Accounts Bank shall not in any way whatsoever be liable for any loss or depreciation in the value of
the investments made pursuant to the terms of this Agreement.

Section
8.13 Subordination. (a) The Accounts Bank hereby acknowledges
(i) the security interest granted hereby by the Borrowers to the Collateral Agent, on behalf and for the benefit of the Senior
Secured Parties, (ii) the security interest granted by the Borrowers to the Senior Collateral Agent under the Senior Credit Agreement
on behalf and for the benefit of the Priority Senior Secured Parties, (iii) the security interest granted by the Borrowers under
the Financing Documents to the Collateral Agent, on behalf of and for the benefit of the Senior Secured Parties, and (iv) the
security interest granted by the Borrowers under the Senior Financing Documents to the Senior Collateral Agent, on behalf of and
for the benefit of the Priority Senior Secured Parties. In the event that the Accounts Bank has or subsequently obtains by agreement,
operation of applicable Law or otherwise a right of recoupment or set-off or any Lien in any of the Project Accounts or any Financial
Asset or other property deposited therein or credited thereto or any security entitlement related thereto, the Accounts Bank hereby
agrees that such right of recoupment or set-off and/or any such Lien shall be subordinate to the security interest of (x) the
Collateral Agent, on behalf of and for the benefit of the Senior Secured Parties and (y) the Senior Collateral Agent, on behalf
of and for the benefit of the Priority Senior Secured Parties. The Accounts Bank agrees that it shall not assert or enforce any
such right of recoupment or set-off and/or any Lien until the Discharge Date.

(b)              
The Financial Assets and other items deposited in or credited to the Project Accounts and the Accounts Property will not
be subject to deduction, set-off, banker’s lien or any other right in favor of any Person other than (x) the Collateral Agent,
on behalf and for the benefit of the Senior Secured Parties and (y) the Senior Collateral Agent, on behalf of and for the benefit
of the Priority Senior Secured Parties.

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Section
8.14 Borrower Acknowledgments. (a) Each Borrower acknowledges
that neither any insufficiency of funds in the Project Accounts (or any of them), nor any inability to apply any funds in the
Project Accounts (or any of them) against any or all amounts owing under any Financing Document, shall at any time limit, reduce
or otherwise affect the Borrowers’ obligations under any Financing Document.

(b)              
Each party to this Agreement acknowledges that the Accounts Bank shall not incur any obligation or liability in circumstances
where there are insufficient funds deposited in or credited to any Project Account to make a payment in full that would otherwise
have been made pursuant to the terms of this Agreement, except to the extent that the loss arises directly from the Accounts Bank’s
gross negligence or willful misconduct as determined by a court of competent jurisdiction by final and Non-Appealable judgment.

Section
8.15 Agreement to Hold In Trust. All payments received directly by any Borrower that are required to be deposited
into the Project Accounts in accordance with the terms of this Agreement or any other Financing Document shall be held by such
Borrower in trust for (x) the Collateral Agent, on behalf and for the benefit of the Senior Secured Parties and (y) the Senior
Collateral Agent, on behalf of and for the benefit of the Priority Senior Secured Parties, and shall be segregated from other
funds of such Borrower and shall, forthwith upon receipt by such Borrower, be turned over to the Senior Collateral Agent or the
Collateral Agent, as applicable or its designee in the same form as received by such Borrower (duly endorsed by such Borrower
to the Senior Collateral Agent or the Collateral Agent, as applicable or the Accounts Bank, if requested) for deposit and disbursement
in accordance with this Agreement, the Senior Credit Agreement and the Intercreditor Agreement.

Section
8.16 Interest and Investments. (a) Each amount deposited in or credited to a Project Account from time to time shall,
from the time it is so deposited or credited until the time it is withdrawn from that Project Account (whether for the purpose
of making an investment in Cash Equivalents or otherwise applied in accordance with the terms of this Agreement, the Senior Credit
Agreement and the Intercreditor Agreement), earn interest at such rates as may be agreed from time to time by Borrowers’
Agent and the Accounts Bank.

(b)              
Prior to the receipt by the Accounts Bank of a Notice of Suspension, any amounts held by the Accounts Bank in the Project
Accounts shall be invested by the Accounts Bank from time to time, at the risk and expense of the Borrowers, solely in such Cash
Equivalents as the Borrowers’ Agent shall direct in writing. The Borrowers shall select Cash Equivalents having such maturities
as shall cause the Project Accounts to have a cash balance as of any day sufficient to cover the transfers to be made from the
Project Accounts on such day in accordance with this Agreement, the Senior Credit Agreement, the other Financing Documents and
the Project Documents. Upon delivery by the Senior Collateral Agent or the Collateral Agent, to the Accounts Bank of a Notice of
Suspension and until written revocation of such Notice of Suspension is delivered to the Accounts Bank by the Senior Collateral
Agent or the Collateral Agent, as applicable, any amounts held by the Accounts Bank in the Project Accounts shall be invested by
the Accounts Bank from time to time, solely in such Cash Equivalents as the Required Senior Lenders or the Required Lenders, as
applicable, may direct. The Collateral Agent agrees that it will only deliver a Notice of Suspension to the Accounts Bank as permitted
in accordance with the terms of this Agreement and the Intercreditor Agreement.

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(c)               
In the event that the cash balance in any of the Project Accounts is as of any day insufficient to cover the transfers to
be made from such Project Account on such day, the Required Senior Lenders or, from and after the Senior Discharge Date, the Required
Lenders may direct the Accounts Bank to sell or liquidate the Cash Equivalents standing to the credit of such Project Account (without
regard to maturity date) in such manner as the Required Senior Lenders or, from and after the Senior Discharge Date, the Required
Lenders may deem necessary in order to obtain cash at least sufficient to make such transfers and to pay any expenses and charges
incurred in connection with effecting any such sale or liquidation, which expenses and charges the Accounts Bank shall be authorized
to pay with cash on deposit in such Project Account. Neither the Accounts Bank nor any Senior Secured Party or Priority Senior
Secured Party shall be liable to any Person for any loss suffered because of any such sale or liquidation.

(d)              
All interest and other investment income earned from Cash Equivalents made from amounts in any Project Account shall remain
in such Project Account until transferred from such Project Account in accordance with the terms of this Article VIII.

(e)               
It is acknowledged by the parties hereto that all investment income earned on amounts on deposit in or credited to the Project
Accounts for all Tax purposes shall be attributed to and be income of Pacific Holding. Pacific Holding shall be responsible for
determining any requirements for paying Taxes or reporting or withholding any payments for Tax purposes hereunder. Pacific Holding
shall prepare and file all Tax information required with respect to the Project Accounts. Each Borrower agrees to indemnify and
hold each Senior Secured Party harmless against all liability for Tax withholding and/or reporting for any investment income earned
on the Project Accounts and payments in respect thereof. Such indemnities shall survive the termination or discharge of this Agreement
or resignation of the Accounts Bank. No Senior Secured Party shall have any obligation with respect to the making of or the reporting
of any payments for Tax purposes. From time to time, and as reasonably requested by the Accounts Bank, Pacific Holding or any other
Borrower shall provide to the Accounts Bank a United States Department of the Treasury Internal Revenue Service tax form W-9 or
W-8 or other appropriate form required with respect to the withholding or exemption from withholding of income tax on any investment
income earned on the Project Accounts.

Section
8.17 Accounts Bank Information. (a) The Accounts Bank
will:

		(i)	within five (5) Business Days after the end of the month in which the first deposit is made into any Project Account and within
five (5) Business Days after the end of each month thereafter, provide the Borrowers’ Agent, the Senior Collateral Agent,
the Collateral Agent, the Senior Administrative Agent and the Administrative Agent a report with respect to the Project Accounts,
setting forth in reasonable detail all deposits to and disbursements from each of the Project Accounts during such month, including
the date on which made, and the balances of and any investments in each of the Project Accounts at the end of such month, including
information regarding categories, amounts, maturities and issuers of Cash Equivalents; and

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		(ii)	within three (3) Business Days after receipt of any written request by the Borrowers’ Agent, the Senior Collateral Agent,
the Collateral Agent, the Senior Administrative Agent or the Administrative Agent, provide to such Person such other information
as such Person may specify regarding all Cash Equivalents and any other investments made by the Accounts Bank pursuant hereto and
regarding amounts available in the Project Accounts.

Notwithstanding the foregoing, the Accounts Bank will
provide the Borrowers’ Agent, the Senior Collateral Agent, the Collateral Agent, the Senior Administrative Agent and the
Administrative Agent such additional information regarding the Project Accounts and the balances and Cash Equivalents therein as
any of them may reasonably request from time to time.

(b)              
The Accounts Bank will maintain all of the Project Accounts and all books and records with respect thereto as may be necessary
to record properly all transactions carried out by it under this Agreement.

(c)               
If any Cash Equivalent ceases to be a Cash Equivalent, the Accounts Bank will, as soon as reasonably practicable after becoming
aware of such cessation, notify the Senior Collateral Agent, the Collateral Agent and the Borrowers’ Agent in writing of
such cessation and, upon the written direction of (i) the Borrowers’ Agent or (ii) the Required Senior Lenders or, from and
after the Senior Discharge Date, the Required Lenders, will cause the relevant investment to be replaced by a Cash Equivalent or
by cash; provided that this Section 8.17(c) will not oblige the Accounts Bank to liquidate any investment earlier than
its normal maturity date unless:

		(i)	directed to do so under Section 8.16 (Interest and Investments); or

		(ii)	the maturity date of the relevant investment exceeds the maturity date that would enable it to continue to qualify as a Cash
Equivalent.

Section
8.18 Notices of Suspension of Accounts. (a) The Senior Collateral Agent and the Collateral Agent may, but shall
not be required to, suspend the right of the Accounts Bank and the Borrowers’ Agent to withdraw or otherwise deal with any
funds deposited in or credited to the Project Accounts at any time during the occurrence and continuance of an Event of Default
by delivering a notice to the Accounts Bank (with a copy to the Borrowers’ Agent and the Administrative Agent) (a “Notice
of Suspension”); provided that the Collateral Agent agrees that it will only deliver to the Accounts Bank a Notice of
Suspension as permitted in accordance with the terms of this Agreement and the Intercreditor Agreement.

(b)              
Notwithstanding any other provision of the Financing Documents, after the issuance by the Senior Collateral Agent or the
Collateral Agent of a Notice of Suspension in accordance with Section 8.18(a) and until such time as the Person who
delivered the Notice of Suspension advises the Accounts Bank and the Borrowers’ Agent (with a copy to the Administrative
Agent and Senior Administrative Agent) that it has withdrawn such Notice of Suspension, (which it shall do if such Event of Default
is no longer continuing) no amount may be withdrawn by the Accounts Bank from any Project Account, including for investment in
Cash Equivalents, without the express prior written consent of the Person who delivered the Notice of Suspension.

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(c)               
Notwithstanding any other provision of the Financing Documents (but without limitation of Sections 8.02(g) or (h) (Deposits
into and Withdrawals from Project Accounts), without the express prior written consent of the Required Senior Lenders or,
from and after the Senior Discharge Date, the Required Lenders of the Revolving Loan Class and the Required Lenders of the Tranche
A-1 Term Loan Class, no amount may be withdrawn from any Project Account if a Default or Event of Default would occur as a result
of such withdrawal.

(d)              
On the date of each withdrawal by the Accounts Bank from a Project Account, the Borrowers’ Agent shall be deemed to
represent and warrant that no Notice of Suspension is in effect and that that no Default or Event of Default would occur as a result
of such withdrawal, unless the Required Senior Lenders or, from and after the Senior Discharge Date, the Required Lenders of the
Revolving Loan Class and the Required Lenders of the Tranche A-1 Term Loan Class have previously consented in writing to such withdrawal,
notwithstanding that a Notice of Suspension is in effect or that a Default or Event of Default would occur as a result of such
withdrawal.

ARTICLE
IX

DEFAULT AND ENFORCEMENT

Section
9.01 Events of Default. Each of the following events or occurrences described in this Section 9.01 shall
constitute an Event of Default.

(a)               
Nonpayment. Any Borrower fails to pay (i) any amount of principal of any Loan when the same becomes due and payable
or (ii) any interest on any Loan or any fee or other Obligation or amount payable hereunder or under any other Financing Document
within three (3) Business Days after the same becomes due and payable.

(b)              
Breach of Warranty. Any representation or warranty of any Loan Party or any Major Project Party made or deemed to
be restated or remade in any Financing Document is or shall be incorrect or misleading in any material respect when made or deemed
made; provided that (i) if such Loan Party or Major Project Party, as the case may be, was not aware that such representation or
warranty was incorrect or misleading at the time such representation or warranty was made or deemed repeated, (ii) the fact, event
or circumstance resulting in such incorrect or misleading representation or warranty is capable of being cured, corrected or otherwise
remedied, (iii) such fact, event or circumstance resulting in such incorrect or misleading representation or warranty is cured,
corrected or otherwise remedied within thirty (30) days from the date any Loan Party obtains, or should have obtained, knowledge
thereof, and (iv) no Material Adverse Effect shall have occurred as a result of such representation or warranty being incorrect
or misleading, then such incorrect representation or warranty shall not constitute an Event of Default.

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(c)               
Non-Performance of Certain Covenants and Obligations. Any Borrower defaults in the due performance and observance
of any of its obligations under any of Sections 7.01(d)(i), (ii) and (iii)(A) (Affirmative Covenants – Maintenance
of Properties), 7.01(g) (Affirmative Covenants – Use of Proceeds and Cash Flow), 7.01(h) (Affirmative
Covenants – Insurance), 7.01(r) (Affirmative Covenants – First Priority Ranking), 7.02 (Negative
Covenants) and 7.03(e) (Reporting Requirements) of this Agreement, Sections 5.02 (Limitation of Liens)
or 5.06 (Name; Jurisdiction of Organization) of any Security Agreement, any Borrower or the Pledgor defaults in the
due performance and observance of any of its obligations under Sections 5.02 (Limitation of Liens), 5.03 (No
Sale of Collateral), 5.04 (No Impairment of Security), 5.05 (Filing of Bankruptcy Proceedings)
or 5.08 (Name; Jurisdiction of Organization) of any Pledge Agreement or Pacific Ethanol defaults in the due performance
and observance of any of its obligations under the Sponsor Support Agreement, if any.

(d)              
Non-Performance of Other Covenants and Obligations. Any Loan Party or any Major Project Party defaults in the due
performance and observance of any covenant or agreement (other than covenants and agreements referred to in Sections 9.01(a)
or 9.01(c)) contained in any Financing Document, and such default shall continue unremedied for a period of thirty (30)
days after any Borrower obtains, or should have obtained, knowledge thereof.

(e)               
Cross Defaults. Any one of the following occurs with respect to any Loan Party or any Major Project Party with respect
to Indebtedness (other than the Obligations) (provided that if any such event has been cured in accordance with the terms of such
Indebtedness, it shall serve as a cure of this Event of Default):

		(i)	a default occurs in the payment when due (subject to any applicable grace period and notice requirements), whether by acceleration
or otherwise, of such Indebtedness; or

		(ii)	such Person fails to observe or perform (subject to any applicable grace periods and notice requirements) any other agreement
or condition relating to any such Indebtedness or contained in any instrument or agreement evidencing, securing or relating thereto,
or any other event occurs, the effect of which default or other event is to cause, or to permit the holder or holders of such Indebtedness
or the beneficiary or beneficiaries of any Guarantee (or a trustee or agent on behalf of such holder or holders or beneficiary
or beneficiaries) to cause, with the giving of notice if required, such Indebtedness to be demanded or to become due or to be repurchased,
prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness
to be made, prior to its stated maturity, or such Guarantee to become payable or cash collateral in respect thereof to be demanded;

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		(A)	in the case of the Borrowers, with respect to Indebtedness under the Senior Credit Agreement or in an amount greater than or
equal to one hundred thousand Dollars ($100,000) in the aggregate;

		(B)	in the case of the Pledgor, Pacific Ag Products or Kinergy with respect to Indebtedness in an amount greater than or equal
to one million Dollars ($1,000,000) in the aggregate;

		(C)	in the case of Pacific Ethanol, with respect to Indebtedness in an amount in excess of two million Dollars ($2,000,000) in
the aggregate and an Exercise of Remedies in respect of such Indebtedness has occurred; and

		(D)	in the case of any other Major Project Party only, has or could reasonably be expected to result in a Material Adverse Effect;

provided, that such occurrence shall not constitute
an Event of Default with respect to any Major Project Party if an agreement replacing each Project Document to which such Major
Project Party is a party, in form and substance reasonably satisfactory to the Administrative Agent, is entered into (together
will all applicable Ancillary Documents) within forty-five (45) days thereof.

(f)               
Judgments. (i) Any judgment or order that has or could reasonably be expected to have a Material Adverse Effect is
rendered against any Loan Party or any Major Project Party, or (ii) any judgment or order is rendered against (A) any or all of
the Borrowers, in an amount in excess of one hundred thousand Dollars ($100,000) in the aggregate, (B) the Pledgor, Pacific Ag
Products (as long as Pacific Ag Products is a Major Project Party) or Kinergy (as long as Kinergy is a Major Project Party) in
an amount in excess of one million Dollars ($1,000,000) in the aggregate or (C) Pacific Ethanol (as long as Pacific Ethanol is
a Major Project Party or a Loan Party) in an amount in excess of two million Dollars ($2,000,000) in the aggregate and, in any
such case, (x) enforcement proceedings are commenced by any creditor upon such judgment or order or (y) there is a period of sixty
(60) consecutive days during which a stay of enforcement of such judgment is not in effect; provided, that such occurrence
shall not constitute an Event of Default with respect to any Major Project Party if an agreement replacing each Project Document
to which such Major Project Party is a party, in form and substance reasonably satisfactory to the Administrative Agent, is entered
into (together will all applicable Ancillary Documents) within forty-five (45) days thereof.

(g)              
ERISA Events. (i) Any Termination Event occurs, (ii) any Plan incurs an “accumulated funding deficiency”
(as defined in Section 412 of the Code or Section 302 of ERISA), (iii) any Borrower or member of any Borrower’s ERISA Controlled
Group engages in a transaction that is prohibited under Section 4975 of the Code or Section 406 of ERISA, (iv) any Borrower or
any ERISA Affiliate fails to pay when due any amount it has become liable to pay to the PBGC, any Plan or a trust established under
Title IV of ERISA, (v) a condition exists by reason of which the PBGC would be entitled to obtain a decree adjudicating that an
ERISA Plan must be terminated or have a trustee appointed to administer it, (vi) any Borrower or any ERISA Affiliate suffers a
partial or complete withdrawal from a Multiemployer Plan or is in “default” (as defined in Section 4219(c)(5) of ERISA)
with respect to payments to a Multiemployer Plan, (vii) a proceeding is instituted against any Borrower to enforce Section 515
of ERISA, (viii) the aggregate amount of the then “current liability” (as defined in Section 412(l)(7) of the Code,
as amended) of all accrued benefits under such Plan or Plans exceeds the then current value of the assets allocable to such benefits
by more than two million Dollars ($2,000,000) at such time, or (ix) any other event or condition occurs or exists with respect
to any Plan that would subject any Borrower to any tax, penalty or other liability.

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(h)              
Bankruptcy, Insolvency. Any Loan Party or any Major Project Party:

		(i)	generally fails to pay, or admits in writing its inability or unwillingness to pay, debts as they become due and in the case
of Pacific Ethanol an Exercise of Remedies has occurred;

		(ii)	applies for, consents to, or acquiesces in, the appointment of a trustee, receiver, sequestrator or other custodian for such
Person or a substantial portion of its property, or makes a general assignment for the benefit of creditors;

		(iii)	in the absence of such application, consent or acquiescence, permits or suffers to exist the appointment of a trustee, receiver,
sequestrator or other custodian for such Person or for a substantial part of its property, and such trustee, receiver, sequestrator
or other custodian is not discharged within sixty (60) days; provided that nothing in the Financing Documents shall prohibit or
restrict any right any Senior Secured Party may have under applicable Law to appear in any court conducting any relevant proceeding
during such sixty (60) day period to preserve, protect and defend its rights under the Financing Documents (and such Person shall
not object to any such appearance);

		(iv)	permits or suffer to exist the commencement of any bankruptcy, reorganization, debt arrangement or other case or proceeding
under any bankruptcy or insolvency law, or any dissolution, winding up or liquidation proceeding, in respect of such Person and,
if any such case or proceeding is not commenced by such Person, such case or proceeding is be consented to or acquiesced in by
such Person or results in the entry of an order for relief or remains for sixty (60) days undismissed; provided that nothing in
the Financing Documents shall prohibit or restrict any right any Senior Secured Party may have under applicable Law to appear in
any court conducting any such case or proceeding during such sixty (60) day period to preserve, protect and defend its rights under
the Financing Documents (and such Person shall not object to any such appearance);

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		(v)	takes any action authorizing, or in furtherance of, any of the foregoing; or

		(vi)	ceases to be Solvent and in the case of Pacific Ethanol an Exercise of Remedies has occurred;

provided, that such occurrence shall not constitute
an Event of Default with respect to any Major Project Party if an agreement replacing each Project Document to which such Major
Project Party is a party, in form and substance reasonably satisfactory to the Administrative Agent, is entered into (together
will all applicable Ancillary Documents) within forty-five (45) days thereof (or, if such bankruptcy or insolvency could not reasonably
be expected to result in a Material Adverse Effect, sixty (60) days).

(i)                
Project Document Defaults; Termination.

		(i)	Any Borrower or any other Major Project Party shall be in material breach of or otherwise in material default under any Project
Document and such breach or default has continued beyond any applicable grace period expressly provided for in such Project Document
(or, if no such cure period is provided, thirty (30) days), as the same may be extended pursuant to any Consent; provided,
that any such breach or default by any Major Project Party under any Project Document shall not constitute an Event of Default
if an agreement replacing such Project Document, in form and substance reasonably satisfactory to the Administrative Agent, is
entered into (together will all applicable Ancillary Documents) within forty-five (45) days thereof (or, if such breach or default
could not reasonably be expected to result in a Material Adverse Effect, sixty (60) days).

		(ii)	Any Project Document ceases to be in full force and effect prior to its scheduled expiration, is repudiated, or its enforceability
is challenged or disaffirmed by or on behalf of any Borrower or any Major Project Party thereto; provided, that such occurrence
shall not constitute an Event of Default with respect to any Project Document if an agreement replacing such Project Document,
in form and substance reasonably satisfactory to the Administrative Agent, is entered into (together will all applicable Ancillary
Documents) within forty-five (45) days thereof (or, if such occurrence could not reasonably be expected to result in a Material
Adverse Effect, sixty (60) days).

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(j)                
Governmental Approvals. Any Borrower fails to obtain, renew, maintain or comply in all material respects with any
Necessary Project Approval or any Necessary Project Approval is revoked, canceled, terminated, withdrawn or otherwise ceases to
be in full force and effect, or any Necessary Project Approval is modified without the consent of the Required Senior Lenders or,
from and after the Senior Discharge Date, the Required Lenders of the Revolving Loan Class and the Required Lenders of the Tranche
A-1 Term Loan Class in a manner that, in each case, has, or could reasonably be expected to result in, a Material Adverse Effect
on such Borrower or its Plant.

(k)              
Unenforceability of Documentation. At any time after the execution and delivery thereof:

		(i)	any material provision of any Financing Document shall cease to be in full force and effect;

		(ii)	any Financing Document is revoked or terminated, becomes unlawful or is declared null and void by a Governmental Authority
of competent jurisdiction;

		(iii)	any Financing Document becomes unenforceable, is repudiated or the enforceability thereof is contested or disaffirmed by or
on behalf of any party thereto other than the Senior Secured Parties; or

		(iv)	any Liens against any of the Collateral cease to be a first priority, perfected security interest in favor of the Collateral
Agent, or the enforceability thereof is contested by any Loan Party, or any of the Security Documents ceases to provide the security
intended to be created thereby with the priority purported to be created thereby.

(l)                
Environmental Matters. (i) Any Environmental Claim has occurred with respect to any Borrower, any Plant or any Environmental
Affiliate, (ii) any release, emission, discharge or disposal of any Material of Environmental Concern occurs, and such event could
reasonably be expected to form the basis of an Environmental Claim against any Borrower, any Plant or any Environmental Affiliate,
or (iii) any violation or alleged violation of any Environmental Law or Environmental Approval occurs that would reasonably result
in an Environmental Claim against any Borrower or any Plant or, to the extent any Borrower may have liability, any Environmental
Affiliate, that, in the case of any of Sections 9.01(l)(i), (ii) or (iii), could reasonably be expected to
result in liability for any Borrower (or the Borrowers on an aggregate basis) in an amount greater than five hundred thousand Dollars
($500,000) for any single claim or one million Dollars ($1,000,000) for all such claims during any twelve (12) month period or
could otherwise reasonably be expected to result in a Material Adverse Effect.

(m)            
Loss of Collateral. Any portion of the Collateral (other than a portion that is immaterial) is damaged, seized or
appropriated; provided, that such an occurrence shall not constitute an Event of Default if the applicable Borrowers repair,
replace, rebuild or refurbish such damaged, seized or appropriated Collateral (i) in accordance with Section 8.07(d)(i) (Insurance
and Condemnation Proceeds Accounts), or (ii) otherwise (provided that such approval is obtained within sixty (60) days
hereafter) with the approval of the Required Senior Lenders or, from and after the Senior Discharge Date, the Required Lenders
of the Revolving Loan Class and the Required Lenders of the Tranche A-1 Term Loan Class, in consultation with the Independent Engineer.

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(n)              
Event of Abandonment. An Event of Abandonment occurs.

(o)              
Taking or Total Loss. An Event of Taking with respect to all or a material portion of any Plant or any Equity Interests
in any Borrower occurs, or an Event of Total Loss occurs.

(p)              
Asset Management Agreement.  Pacific Ethanol or any Affiliate
of Pacific Ethanol shall challenge the validity or enforceability of any performance guaranty of the obligations of Pacific Ethanol
under the Asset Management Agreement at any time that any such obligation exists.

(q)              
Change of Control. A Change of Control occurs.

Section
9.02 Action Upon Bankruptcy. If any Event of Default described in Section 9.01(h) (Events of Default - Bankruptcy;
Insolvency) occurs with respect to any Borrower, any outstanding Commitments (if not theretofore terminated) shall automatically
terminate. The outstanding principal amount of the outstanding Loans and all other Obligations shall automatically be and become
immediately due and payable, without notice, demand or further act of the Administrative Agent, the Collateral Agent or any other
Senior Secured Party.

Section
9.03 Action Upon Other Event of Default. (a) If any
other Event of Default occurs and is continuing for any reason, whether voluntary or involuntary, and is continuing, the Administrative
Agent shall by written notice to the Borrowers, subject to and in accordance with the Intercreditor Agreement:

		(i)	Upon the direction of the Required Lenders of the Revolving Loan Class, declare all or any portion of the Obligations in respect
of the Revolving Loans to be due and payable and any outstanding Revolving Loan Commitments (if not theretofore reduced or terminated)
to be reduced or terminated, whereupon the full unpaid amount of such Obligations that has been declared due and payable shall
be and become immediately due and payable, without further notice, demand or presentment and any outstanding Revolving Loan Commitments
shall be reduced or terminate; and

		(ii)	Upon the direction of the Required Lenders of the Tranche A-1 Term Loan Class, declare all or any portion of the Obligations
in respect of the Tranche A-1 Term Loans to be due and payable and any outstanding Tranche A-1 Term Loan Commitments (if not theretofore
reduced or terminated) to be reduced or terminated, whereupon the full unpaid amount of such Obligations that has been declared
due and payable shall be and become immediately due and payable, without further notice, demand or presentment and any outstanding
Tranche A-1 Term Loan Commitments shall be reduced or terminate.

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(b)              
During the continuance of an Event of Default, the Administrative Agent, upon the direction of the Required Lenders of the
Revolving Loan Class and the Required Lenders of the Tranche A-1 Term Loan Class, shall instruct the Collateral Agent to exercise
any or all remedies provided for under this Agreement or the other Financing Documents, in each case subject to and in accordance
with the Intercreditor Agreement. Without prejudice to the right of any Tranche A-2 Lender to commence an action against a Borrower
in respect of any unpaid amounts of interest on or principal of its Tranche A-2 Term Loan, no Tranche A-2 Lender or group of Tranche
A-2 Lenders shall have the right to, or shall, instruct the Collateral Agent or the Administrative Agent to exercise any remedy
provided for under this Agreement or the other Financing Documents.

(c)               
Any declaration made pursuant to Section 9.03(a)(i) may, should the Required Lenders of the Revolving Loan Class
in their sole and absolute discretion so elect, be rescinded by written notice to the Borrowers at any time after the principal
of the Revolving Loans has become due and payable, but before any judgment or decree for the payment of the monies so due, or any
part thereof, has been entered; provided that no such rescission or annulment shall extend to or affect any subsequent Event of
Default or impair any right consequent thereon.

(d)              
Any declaration made pursuant to Section 9.03(a)(ii) may, should the Required Lenders of the Tranche A-1 Term Loan
Class in their sole and absolute discretion so elect, be rescinded by written notice to the Borrowers at any time after the principal
of the Tranche A-1 Term Loans has become due and payable, but before any judgment or decree for the payment of the monies so due,
or any part thereof, has been entered; provided that no such rescission or annulment shall extend to or affect any subsequent Event
of Default or impair any right consequent thereon.

Section
9.04 Application of Proceeds. Any moneys received by the Collateral Agent after the occurrence and during the continuance
of an Event of Default may, subject to the Intercreditor Agreement, be held by the Collateral Agent as Collateral and/or, at the
direction of the Administrative Agent, may be applied in full or in part by the Collateral Agent against the Obligations in the
order of priorities third through eleventh and thirteenth through fifteenth as set forth in Section
8.03(b) (Revenue Account) (but without prejudice to the right of the Collateral Agent to recover any shortfall from
the Borrowers) and the balance, if any, after all of the Obligations have been indefeasibly paid in full, shall be paid to the
Borrowers or as otherwise required by Applicable Law.

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ARTICLE
X

THE AGENTS

Section
10.01 Appointment and Authority. (a) Each of the Lenders
(in its capacity as Lender and on behalf of itself and its Affiliates as a potential Interest Rate Protection Provider) hereby
irrevocably appoints, designates and authorizes each Agent to take such action on its behalf under the provisions of this Agreement
and each other Financing Document to which it is a party and to exercise such powers and perform such duties as are expressly
delegated to such Agent by the terms of this Agreement or any other Financing Document to which it is a party. The provisions
of this Article X are solely for the benefit of the Agents and the Lenders, and neither the Borrowers nor any other Person
shall have rights as a third party beneficiary of any of such provisions.

(b)              
Each Lender hereby appoints Wells Fargo as its Administrative Agent under and for purposes of each Financing Document to
which it is a party. Wells Fargo hereby accepts this appointment and agrees to act as the Administrative Agent for the Lenders
in accordance with the terms of this Agreement and the Intercreditor Agreement. Each Lender appoints and authorizes the Administrative
Agent to act on behalf of such Lender under each Financing Document to which it is a party and to exercise such powers hereunder
and thereunder as are specifically delegated to or required of the Administrative Agent by the terms hereof and thereof. Notwithstanding
any provision to the contrary contained elsewhere in any Financing Document, the Administrative Agent shall not have any duties
or responsibilities, except those expressly set forth herein and in the other Financing Documents to which it is a party, nor shall
the Administrative Agent have or be deemed to have any fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into any Financing Document or otherwise exist against the Administrative
Agent. Without limiting the generality of the foregoing sentence, the use of the term “agent” in this Agreement with
reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising
under agency doctrine of any applicable Law. Instead, such term is used merely as a matter of market custom, and is intended to
create or reflect only an administrative relationship between independent contracting parties.

(c)               
Each Lender (in its capacity as Lender and on behalf of itself and its Affiliates as a potential Interest Rate Protection
Provider) and the Administrative Agent and the Accounts Bank each in its capacity as such hereby appoints Wells Fargo as its Collateral
Agent under and for purposes of each Financing Document to which it is a party. Wells Fargo hereby accepts this appointment and
agrees to act as the Collateral Agent for the Senior Secured Parties in accordance with the terms of this Agreement and the Intercreditor
Agreement. Each of the Lenders hereby irrevocably appoints and authorizes the Collateral Agent to act as the agent of such Lender
for purposes of acquiring, holding and enforcing any and all Liens on Collateral granted by any of the Borrowers or the Pledgor
to the Collateral Agent in order to secure any of the Obligations. In this connection the Collateral Agent, and any co-agents,
sub-agents and attorneys-in-fact appointed by the Collateral Agent, as the case may be, pursuant to Section 10.05 (Delegation
of Duties) for purposes of holding or enforcing any Lien on the Collateral (or any portion thereof) granted under the Security
Documents, or for exercising any rights and remedies thereunder at the direction of the Collateral Agent, as the case may be, shall
be entitled to the benefits of all provisions of this Article X and Article XI (Miscellaneous Provisions)
(including Section 11.09 (Indemnification by the Borrowers), as though such co-agents, sub-agents and attorneys-in-fact
were the Collateral Agent under the Financing Documents) as if set forth in full herein with respect thereto. Notwithstanding any
provision to the contrary contained elsewhere in any Financing Document, the Collateral Agent shall not have any duties or responsibilities,
except those expressly set forth herein or in the other Financing Documents to which the Collateral Agent is a party, nor shall
the Collateral Agent have or be deemed to have any fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into any Financing Document or otherwise exist against the Collateral
Agent. Without limiting the generality of the foregoing sentence, the use of the term “agent” in this Agreement with
reference to the Collateral Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under
agency doctrine of any applicable Law. Instead, such term is used merely as a matter of market custom, and is intended to create
or reflect only an administrative relationship between independent contracting parties.

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(d)              
Each Lender hereby appoints and authorizes the Accounts Bank to act as depository for the Collateral Agent, on behalf of
the Senior Secured Parties, and as the securities intermediary or bank with respect to the Project Accounts for the benefit of
the Collateral Agent, on behalf of the Senior Secured Parties, with such powers as are expressly delegated to the Accounts Bank
by the terms of this Agreement, together with such other powers as are reasonably incidental thereto. The Accounts Bank hereby
accepts this appointment and agrees to act as the depository for the Collateral Agent, on behalf of the Senior Secured Parties,
and as the securities intermediary or bank with respect to the Project Accounts, for the benefit of the Collateral Agent, on behalf
of the Senior Secured Parties, in accordance with the terms of this Agreement. The Accounts Bank further agrees to accept and hold,
as securities intermediary or as a bank, in its custody and in accordance with the terms of this Agreement, for the Collateral
Agent, on behalf of the Senior Secured Parties, the Project Accounts and the Accounts Property. Each Lender also appoints and authorizes
the Accounts Bank to act on its behalf for the purpose of the creation and perfection of a security interest in favor of the Collateral
Agent, on behalf of the Senior Secured Parties, in the Project Accounts to the extent that they are deemed under applicable Law
not to constitute securities accounts or deposit accounts and in any Accounts Property that is deemed under applicable Law not
to constitute a Financial Asset. The Accounts Bank accepts this appointment and agrees to act as the Accounts Bank for the Collateral
Agent, on behalf and for the benefit of the Senior Secured Parties, for such purpose and to hold and maintain exclusive dominion
and control over the Project Accounts and any such Accounts Property on behalf of the Collateral Agent, acting on behalf of the
Senior Secured Parties. Each of the Agents and each Lender acknowledges that the Accounts Bank is also (i) acting as the securities
intermediary or bank with respect to the Project Accounts for the benefit of the Senior Collateral Agent, on behalf of the Priority
Senior Secured Parties, (ii) holding, as securities intermediary or as a bank, in its custody and in accordance with the terms
of the Senior Credit Agreement, for the Senior Collateral Agent, on behalf of the Priority Senior Secured Parties, the Project
Accounts and the Accounts Property and (iii) acting on behalf of the Senior Lenders for the purpose of the creation and perfection
of a security interest in favor of the Senior Collateral Agent, on behalf of the Priority Senior Secured Parties, in the Project
Accounts to the extent that they are deemed under applicable Law not to constitute securities accounts or deposit accounts and
in any Accounts Property that is deemed under applicable Law not to constitute a Financial Asset.

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(e)               
Notwithstanding any provision to the contrary contained elsewhere in any Financing Document, the Accounts Bank shall not
have any duties or responsibilities, except those expressly set forth herein or in the Senior Credit Agreement, nor shall the Accounts
Bank have or be deemed to have any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities,
duties, obligations or liabilities shall be read into any Financing Document or otherwise exist against the Accounts Bank. Without
limiting the generality of the foregoing sentence, the use of the term “agent” in this Agreement with reference to
the Accounts Bank is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine
of any applicable Law. Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only
an administrative relationship between independent contracting parties.

(f)               
Each Senior Secured Party hereby acknowledges that Wells Fargo is serving as the Senior Administrative Agent and the Senior
Collateral Agent and that the Administrative Agent and the Collateral Agent shall not have any duties or obligations under the
Senior Credit Agreement. Each Lender hereby instructs each of the Administrative Agent and Collateral Agent to execute and deliver
the Intercreditor Agreement and the other Financing Documents to which it is a party and to exercise its respective rights and
obligations hereunder and under the Intercreditor Agreement solely in accordance with this Agreement, the Financing Documents to
which such Agent is a party and the Intercreditor Agreement. Each Senior Secured Party agrees that it will only originate and deliver
to the Accounts Bank such instructions, orders and entitlement orders as are permitted in accordance with the terms of this Agreement
and the Intercreditor Agreement.

Section
10.02 Rights as a Lender or Interest Rate Protection Provider. Each Person serving as Agent hereunder or under any
other Financing Document shall have the same rights and powers in its capacity as a Lender or Interest Rate Protection Provider,
as the case may be, as any other Lender or Interest Rate Protection Provider, as the case may be, and may exercise the same as
though it were not an Agent. Each such Person and its Affiliates may accept deposits from, lend money to, act as the financial
advisor or in any other advisory capacity for and generally engage in any kind of business with any Borrower or Affiliate thereof
as if such Person were not an Agent hereunder and without any duty to account therefor to the Lenders, any other Agent or the
Interest Rate Protection Provider.

Section
10.03 Exculpatory Provisions. (a) No Agent shall have any duties or obligations except those expressly set forth
herein (and, with respect to the Account Bank, in the Senior Credit Agreement) and in the other Financing Documents to which it
is a party. Without limiting the generality of the foregoing, no Agent shall:

		(i)	be subject to any fiduciary or other implied duties, regardless of whether a Default or Event of Default has occurred and is
continuing;

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		(ii)	have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers
expressly contemplated hereby or by the other Financing Documents (or, with respect to the Accounts Bank, by the Senior Credit
Agreement) that such Agent is required to exercise as directed in writing by the Required Lenders of the Revolving Loan Class and
the Required Lenders of the Tranche A-1 Term Loan Class (or such other number or percentage of the Lenders as shall be expressly
provided for herein or in the other Financing Documents); provided that such Agent shall not be required to take any action that
may expose the Agent to liability or that is contrary to this Agreement, any Financing Document or applicable Law; or

		(iii)	except as expressly set forth herein and in the other Financing Documents to which it is a party (or, with respect to the Accounts
Bank, in the Senior Credit Agreement), have any duty to disclose, nor shall any Agent be liable for any failure to disclose, any
information relating to any Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as an Agent
or any of its Affiliates in any capacity.

(b)              
No Agent shall be liable for any action taken or not taken by it (i) with the prior written consent or at the request of
the Required Lenders of the Revolving Loan Class and/or the Required Lenders of the Tranche A-1 Term Loan Class (or, in the case
of the Accounts Bank, the Required Senior Lenders) (or such other number or percentage of the Lenders as may be necessary, or as
such Agent may believe in good faith to be necessary, under the circumstances as provided in Section 10.01 (Appointment and
Authority)), (ii) in connection with any amendment, consent, approval or waiver which it is permitted under the Financing
Documents to enter into, agree to or grant or (iii) in the absence of its own gross negligence or willful misconduct. Each Agent
may rely on a written statement from the Lenders delivering any written direction, request, consent, or waiver to any Agent, that
such Lenders constitute the Required Lenders and that no consent of any other Lender is required to effect such direction, request,
consent, or waiver. Each Agent shall be deemed not to have knowledge of any Default or Event of Default unless and until notice
describing such Default or Event of Default is given to such Agent in writing by a Borrower or a Lender. Neither the Administrative
Agent nor the Collateral Agent shall be required to give notice of any Default or Event of Default to any Person, including without
limitation the Accounts Bank, absent direction of the Required Lenders.

(c)               
No Agent shall be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation
made in or in connection with this Agreement or any other Financing Document, (ii) the contents of any certificate, report or other
document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of
the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence or continuance of any Default
or Event of Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Financing Document
or any other agreement, instrument or document, or the perfection or priority of any Lien or security interest created or purported
to be created hereby or by any other Security Document, or (v) the satisfaction of any condition set forth in Article VI (Conditions
Precedent) or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to any such Agent.

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(d)               
Notwithstanding any provision of
this Agreement or the other Financing Documents to the contrary, the Administrative Agent and the Collateral Agent (A) shall have
no obligation to exercise discretion under the Financing Documents, and (B) shall not be required to (i) make or give any determination
(including whether a matter is satisfactory to such Agent or whether to deem a matter necessary, desirable, proper or advisable),
agreement, consent, approval, request, notice (including any notice to the Accounts Bank, any notice to tenants, any Notice of
Suspension and any Termination Notice), consultation, designation, appointment, election, judgment or direction, or (ii) file any
UCC financing or continuation statements or similar documents or instruments, or (iii) make any inspection, or (iv) exercise any
rights or remedies of a secured party (including voting rights), in each case, subject to the Intercreditor Agreement, without
the written direction of the Required Lenders of the Revolving Loan Class and the Required Lenders of the Tranche A-1 Term Loan
Class. Notwithstanding any provision of this Agreement or the other Financing Documents to the contrary, before taking or omitting
any action to be taken or omitted by the Administrative Agent and/or the Collateral Agent under the terms of this Agreement and
the other Financing Documents, the Administrative Agent and/or the Collateral Agent, as the case may be, may seek the written direction
of the Required Senior Lenders and/or the Required Lenders of the Revolving Loan Class and the Required Lenders of the Tranche
A-1 Term Loan Class (which written direction may be in the form of an e-mail), and such Agent shall be entitled to rely (and shall
be fully protected in so relying) upon such direction. The Administrative Agent and the Collateral Agent shall have no duty, obligation
or liability to examine, make any investigation or review any notices, requests or other documents or instruments delivered to
it under the terms of the Transaction Documents, except to deliver copies of the same to the Lenders in accordance with the terms
of this Agreement. Any provision of this Agreement or the other Financing Documents authorizing the Administrative Agent and/or
the Collateral Agent to take any action shall not obligate the Administrative Agent or the Collateral Agent to take such action.
In no event shall the Administrative Agent or the Collateral Agent have any duty, responsibility, obligation or liability with
respect to monitoring the Projects or the conditions thereof, or to preserve the Collateral. In acting under the Financing Documents
to which it is a party, each of the Administrative Agent and the Collateral Agent shall be entitled to all of the rights, protections,
immunities and indemnities set forth in this Agreement.

(e)               
Except as expressly set forth in
this Agreement, no Tranche A-2 Lender or group of Tranche A-2 Lenders shall have the right to, or shall, direct the Administrative
Agent or the Collateral Agent to take or refrain from taking any action provided for under this Agreement or the other Financing
Documents. Each Tranche A-2 Lender acknowledges that the Revolving Lenders and the Tranche A-1 Lenders may direct the Administrative
Agent and the Collateral Agent to take or refrain from taking any action provided for under this Agreement or the other Financing
Documents in a manner contrary to the interests of such Tranche A-2 Lender.

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(f)               
Notwithstanding any provision of
this Agreement or the other Financing Documents to the contrary, in no event shall the Administrative Agent or the Collateral Agent
be responsible for, or have any duty or obligation with respect to, the recording, filing, registering, perfection, protection
or maintenance of the security interests or Liens intended to be created hereby or by the Financing Documents (including without
limitation the filing or continuation of any UCC financing or continuation statements or similar documents or instruments), nor
shall the Administrative Agent or the Collateral Agent be responsible for, and neither such Agent makes any representation regarding,
the validity, effectiveness or priority of any of the Financing Documents or the security interests or Liens intended to be created
thereby.

Section
10.04 Reliance by Agents. Each Agent shall be entitled to rely upon, and shall not incur any liability for relying
upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message,
internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise
authenticated by the proper Person. Each Agent also may rely upon any statement made to it orally or by telephone and believed
by it to have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance
with any condition hereunder to the making of a Loan that by its terms must be fulfilled to the satisfaction of a Lender, each
Agent may presume that such condition is satisfactory to such Lender unless such Agent shall have received notice to the contrary
from such Lender prior to the making of such Loan. Each Agent may consult with legal counsel (who may be counsel for the Borrowers),
independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance
with the advice of any such counsel, accountants or experts.

Section
10.05 Delegation of Duties. Each Agent may perform any and all of its duties and exercise any and all its rights
and powers hereunder or under any other Financing Document by or through any one or more sub agents appointed by such Agent. Each
Agent and any such sub agent may perform any and all of its duties and exercise its rights and powers by or through their respective
Related Parties. The exculpatory provisions of this Article X shall apply to any such sub agent and to the Related Parties
of such Agent and any such sub agent, and shall apply to their respective activities in connection with their acting as Agent.

Section
10.06 Resignation or Removal of Agent. (a) Any Agent
may resign from the performance of all its functions and duties hereunder and/or under the other Financing Documents at any time
by giving thirty (30) days’ prior notice to the Borrowers and the Lenders. The Collateral Agent or the Administrative Agent
may be removed at any time by the Required Lenders of the Revolving Loan Class and the Required Lenders of the Tranche A-1 Term
Loan Class. The Accounts Bank may be removed at any time by the Required Lenders of the Revolving Loan Class, the Required Lenders
of the Tranche A-1 Term Loan Class and the Required Senior Lenders. Any such resignation or removal shall take effect upon the
appointment of a successor Agent, in accordance with this Section 10.06.

(b)              
Upon any notice of resignation by any Agent or upon the removal of any Agent by the proper Persons pursuant to Section
10.06(a), the Required Lenders of the Revolving Loan Class and the Required Lenders of the Tranche A-1 Term Loan Class shall
appoint a successor Collateral Agent or Administrative Agent, as applicable, hereunder and under each other Financing Document,
or the Required Lenders of the Revolving Loan Class, the Required Lenders of the Tranche A-1 Term Loan Class and the Required Senior
Lenders shall appoint a successor Accounts Bank, which successor Agent in each case shall be a commercial bank having a combined
capital and surplus of at least two hundred fifty million Dollars ($250,000,000).

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(c)               
If no successor Agent has been appointed by the proper Persons under Section 10.06(b) within thirty (30) days after
the date such notice of resignation was given by such Agent or the proper Persons elected to remove such Agent under Section
10.06(a), and provided that no Default or Event of Default has occurred and is continuing, the Borrowers may appoint a replacement
Agent (who shall be a commercial bank having a combined capital and surplus of at least two hundred fifty million Dollars ($250,000,000))
within the immediately succeeding fifteen (15) days.

(d)              
If no successor Agent has been appointed within forty-five (45) days (or, if a Default or Event of Default has occurred
and is continuing, within thirty (30) days) after the date such notice of resignation was given by such Agent or the proper Persons
elected to remove such Agent under Section 10.06(a), any Senior Secured Party may petition any court of competent jurisdiction
for the appointment of a successor Agent. Such court may thereupon, after such notice, if any, as it may deem proper, appoint a
successor Agent, as applicable, who shall serve as Agent, hereunder and under each other Financing Document until such time, if
any, as the proper Persons appoint a successor Agent, as provided in this Section 10.06.

(e)               
Upon the acceptance of a successor’s appointment as Agent hereunder, such successor shall succeed to and become vested
with all of the rights, powers, privileges and duties of the retiring (or removed) Agent, and the retiring (or removed) Agent shall
be discharged from all of its duties and obligations hereunder or under the other Financing Documents. After the retirement or
removal of any Agent hereunder and under the other Financing Documents, the provisions of this Article X shall continue
in effect for the benefit of such retiring (or removed) Agent, its sub agents and their respective Related Parties in respect of
any actions taken or omitted to be taken by any of them while the retiring Agent was acting as Agent.

(f)               
If a retiring or removed Agent is the Accounts Bank, such Accounts Bank will promptly transfer all of the Project Accounts
and the Accounts Property to the possession or control of the successor Accounts Bank and will execute and deliver such notices,
instructions and assignments as may be reasonably necessary or desirable to transfer the rights of the Accounts Bank with respect
to the Project Accounts and the Accounts Property to the successor Accounts Bank. Notwithstanding the foregoing or anything to
the contrary contained in this Agreement, the parties hereto acknowledge that the Accounts Bank is serving in such capacity under
each of this Agreement and the Senior Credit Agreement concurrently, and any successor Accounts Bank shall not be appointed as
such hereunder until such time as such successor Accounts Bank concurrently assumes all rights and obligations of the Accounts
Bank and is appointed as such under each of this Agreement and the Senior Credit Agreement.

(g)              
If a retiring or removed Agent is the Collateral Agent, such Collateral Agent will promptly transfer any Collateral in the
possession or control of such Collateral Agent to the successor Collateral Agent and will execute and deliver such notices, instructions
and assignments as may be reasonably requested by the Required Lenders to transfer the rights of the Collateral Agent with respect
to such Collateral property to the successor Collateral Agent.

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Section
10.07 No Amendment to Duties of Agent Without Consent. No Agent shall be bound by any waiver, amendment, supplement
or modification of this Agreement or any other Financing Document that affects its rights or duties hereunder or thereunder unless
such Agent shall have given its prior written consent, in its capacity as Agent, thereto.

Section
10.08 Non-Reliance on Agent and Other Lenders. Each Lender acknowledges that it has, independently and without reliance
upon any Agent or any other Lender or any of their respective Related Parties and based on such documents and information as it
has deemed appropriate, made its own credit analysis and decision to enter into this Agreement and make its Loans. Each Lender
also acknowledges that it will, independently and without reliance upon any Agent or any other Lender or any of their respective
Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not taking action under or based upon this Agreement, any other Financing Document or any related agreement
or any document furnished hereunder or thereunder.

Section
10.09 Collateral Agent May File Proofs of Claim. (a) In case of the pendency of any bankruptcy or insolvency proceeding
relative to any Borrower or the Pledgor (including any event described in Section 9.01(h) (Events of Default - Bankruptcy;
Insolvency), the Collateral Agent (irrespective of whether the principal of any Loan shall then be due and payable as
herein expressed or by declaration or otherwise and irrespective of whether the Collateral Agent or any other Senior Secured Party
shall have made any demand on any Borrower) shall be entitled and empowered, but shall not be obligated, by intervention in such
proceeding or otherwise and subject to the terms of the Intercreditor Agreement in all cases:

		(i)	to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and all
other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have
the claims of the Senior Secured Parties (including any claim for the reasonable compensation, expenses, disbursements and advances
of the Senior Secured Parties and their respective agents and counsel and all other amounts due the Senior Secured Parties under
Sections 3.11 (Fees), 11.07 (Costs and Expenses) and 11.09 (Indemnification by the Borrowers))
allowed in such judicial proceeding; and

		(ii)	to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same.

Any custodian, receiver, assignee, trustee, liquidator, sequestrator
or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Senior
Collateral Agent and the Collateral Agent pursuant to the terms of the Intercreditor Agreement and, in the event that the Senior
Collateral Agent or the Collateral Agent, as applicable, consents to the making of such payments directly to the Lenders in accordance
with the Intercreditor Agreement, to pay to the Collateral Agent any amount due for the reasonable compensation, expenses, disbursements
and advances of the Agents and their respective agents and counsel, and any other amounts due the Agents under Sections 3.11
(Fees), 11.07 (Costs and Expenses) and 11.09 (Indemnification by the Borrowers).

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(b)              
Nothing contained herein shall be deemed to authorize the Collateral Agent to authorize or consent to or accept or adopt
on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights
of any Lender or to authorize the Collateral Agent to vote in respect of the claim of any Lender in any such proceeding.

Section
10.10 Collateral Matters. (a) The Lenders irrevocably authorize the Collateral Agent to release any Lien on any
property granted to or held by the Collateral Agent under any Financing Document as required by the Intercreditor Agreement (i)
upon the occurrence of the Discharge Date, (ii) if approved, authorized or ratified in writing in accordance with Section 11.01
(Amendments, Etc.) or (iii) as permitted pursuant to the terms of the Financing Documents (including as contemplated
by Sections 7.02(f) (Negative Covenants-Asset Dispositions)).

(b)              
Upon request by the Collateral Agent at any time, the Required Lenders will confirm in writing the Collateral Agent’s
authority to release its interest in particular types or items of property pursuant to this Section 10.10. In each case
as specified in this Section 10.10, the Collateral Agent will, at the Borrowers’ expense, execute and deliver to the
applicable Borrower or the Pledgor, as the case may be, such documents as such Person may reasonably request to evidence the release
of such item of Collateral from the assignment and security interest granted under the Security Documents in accordance with the
terms of the Financing Documents and this Section 10.10.

Section
10.11 Copies. Each Agent shall give prompt notice to each Lender of each material notice or request required or
permitted to be given to such Agent by the Borrowers pursuant to the terms of this Agreement or any other Financing Document (other
than instructions for the transfer of funds from Project Accounts pursuant to Article VIII (Project Accounts) or
if otherwise concurrently delivered to the Lenders by the Borrowers). Each Agent will distribute to each Lender each document
or instrument (including each document or instrument delivered by any Borrower to such Agent pursuant to Article V (Representations
and Warranties), Article VI (Conditions Precedent) and Article VII (Covenants)) received for
its account and copies of all other communications received by such Agent from the Borrowers for distribution to the Lenders by
such Agent in accordance with the terms of this Agreement or any other Financing Document.

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ARTICLE
XI

MISCELLANEOUS PROVISIONS

Section
11.01 Amendments, Etc.  No amendment or waiver of any provision of this Agreement or any other Financing
Document, and no consent to any departure by any Borrower, Borrowers’ Agent or any other Loan Party therefrom, shall be
effective unless in writing signed by the Required Lenders of the Revolving Loan Class and the Required Lenders of the Tranche
A-1 Term Loan Class (or, if expressly set forth herein, the Required Lenders of the Tranche A-2 Term Loan Class or the Administrative
Agent) and, in the case of an amendment, the Borrowers, Borrowers’ Agent or, as the case may be, the applicable Loan Party,
and in each such case acknowledged by the Administrative Agent, and each such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given; provided that no such amendment, waiver or consent shall:

(a)               
(i) waive any condition set forth in Section 6.01 (Conditions to Closing) without the prior written consent
of all the Lenders (other than any Non-Voting Lender), (ii) waive any condition set forth in Section 6.02 (Conditions to
All Fundings) to the Funding of a Revolving Loan without the prior written consent of each Revolving Lender (other than
any Non-Voting Lender) and (iii) waive any condition set forth in Section 6.02 (Conditions to All Fundings) to the
Funding of the Tranche A-1 Term Loan without the prior consent of each Tranche A-1 Lender;

(b)              
extend or increase the Commitment of any Lender (or reinstate any Commitment terminated pursuant to Section 9.03(a) (Action
Upon Other Event of Default) without the prior written consent of such Lender;

(c)               
postpone any date scheduled for any payment of principal or interest under Sections3.01 (Repayment of Fundings)
or 3.02 (Interest Payment Dates), or any date fixed by the Administrative Agent for the payment of fees or other
amounts due to the Lenders (or any of them) hereunder or under any other Financing Document without the prior written consent of
each Lender affected thereby (other than any Non-Voting Lender);

(d)              
reduce the principal of, or the rate of interest specified herein on, any Loan, or any Fees or other amounts (including
the Required Cash Sweep or any other mandatory prepayments under Section 3.08 (Mandatory Prepayment) payable hereunder
or under any other Financing Document to any Lender without the prior written consent of each Lender directly affected thereby
(other than any Non-Voting Lender); provided that only the prior written consent of the Required Lenders of the Revolving Loan
Class and the Required Lenders of the Tranche A-1 Term Loan Class shall be necessary to amend the definition of Default Rate;

(e)               
change the order of application of any reduction in the Commitments or any prepayment of Loans from the application thereof
set forth in the applicable provisions of Section 2.07 (Termination or Reduction of Commitment), Section 3.07
(Optional Prepayment) or 3.08 (Mandatory Prepayment), respectively, in any manner without the prior written
consent of each Lender affected thereby (other than any Non-Voting Lender);

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(f)               
change any provision of this Section 11.01, the definition of Required Lenders or any other provision of any Financing
Document specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights under any Financing
Document (including any such provision specifying the number or percentage of Lenders required to waive any Event of Default or
forbear from taking any action or pursuing any remedy with respect to any Event of Default), or make any determination or grant
any consent under any Financing Document, without the prior written consent of each Lender (other than any Non-Voting Lender);

(g)              
release (i) any Borrower from all or substantially all of its obligations under any Financing Document, or (ii) all or substantially
all of the Collateral in any transaction or series of related transactions, without the prior written consent of each Lender (other
than any Non-Voting Lender);

(h)              
 increase the Aggregate Revolving Loan Commitment or the Aggregate Term Commitment of the Tranche A-1 Lenders by an amount
in excess of three million five hundred thousand Dollars ($3,500,000) in the aggregate without the prior written consent of the
Required Lenders of the Tranche A-2 Term Loan Class; or

(i)                
increase the interest rate payable by the Borrowers (exclusive of the Default Rate) in respect of the Revolving Loans or
the Tranche A-1 Term Loans by an amount in excess of four percent (4.0%) per annum without the prior written consent of the Required
Lenders of the Tranche A-2 Term Loan Class;

and provided further that (i) no amendment, waiver or consent
shall, unless in writing and signed by an Agent (and in the case of any amendment to Section 2.03 or otherwise that adversely
affects WestLB (in its capacity as issuing bank under the Prior Credit Agreement (prior to the effectiveness of the First Amendment),
WestLB), in addition to the Lenders required above, affect the rights or duties of, or any fees or other amounts payable to, such
Agent under this Agreement or any other Financing Document; and (ii) Section 11.03(h) (Assignments) may not be amended,
waived or otherwise modified without the prior written consent of each Granting Lender all or any part of whose Loan is being funded
by an SPV at the time of such amendment, waiver or other modification. Except as expressly set forth in this Agreement, no Tranche
A-2 Lender or group of Tranche A-2 Lenders shall have the right to, or shall, direct the Administrative Agent to take or refrain
from taking any action provided for under this Agreement or the other Financing Documents. Each Tranche A-2 Lender acknowledges
that the Revolving Lenders and the Tranche A-1 Lenders may direct the Administrative Agent to take or refrain from taking any action
provided for under this Agreement or the other Financing Documents in a manner contrary to the interests of such Tranche A-2 Lender.

Notwithstanding the other provisions of this Section 11.01,
the Borrowers, the Borrowers’ Agent, the Collateral Agent and the Administrative Agent may (but shall have no obligation
to) amend or supplement the Financing Documents without the consent of any Lender: (i) to cure any ambiguity, defect or inconsistency;
(ii) to make any change that would provide any additional rights or benefits to the Lenders; or (iii) to make, complete or confirm
any grant of Collateral permitted or required by this Agreement or any of the Security Documents or any release of any Collateral
that is otherwise permitted under the terms of this Agreement and the Security Documents. Notwithstanding
anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent
hereunder, except that the Commitment of such Lender may not be increased or extended without the consent of such Lender.

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Section
11.02 Applicable Law; Jurisdiction; Etc.  (a) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, UNITED STATES OF AMERICA, WITHOUT REFERENCE TO CONFLICTS
OF LAWS (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

(b)              
SUBMISSION TO JURISDICTION. EACH BORROWER AND THE BORROWERS’ AGENT IRREVOCABLY AND UNCONDITIONALLY SUBMITS,
FOR ITSELF AND ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY
AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER FINANCING DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT
OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION
OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN
SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE
AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT
OR IN ANY OTHER FINANCING DOCUMENT SHALL AFFECT ANY RIGHT THAT ANY SENIOR SECURED PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION
OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER FINANCING DOCUMENT AGAINST ANY BORROWER OR ITS PROPERTIES IN THE COURTS OF
ANY JURISDICTION.

(c)               
WAIVER OF VENUE. EACH BORROWER AND THE BORROWERS’ AGENT IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER FINANCING DOCUMENT IN ANY COURT REFERRED TO IN SECTION 11.02(b).
EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT
FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

(d)              
Appointment of Process Agent and Service of Process. Each of the Borrowers and the Borrowers’ Agent hereby
irrevocably appoints CT Corporation System with an office on the date hereof at 111 Eighth Avenue, New York, New York 10011, as
its agent to receive on behalf of itself services of copies of the summons and complaint and any other process that may be served
in any such action or proceeding in the State of New York. If for any reason the Process Agent shall cease to act as such for any
Person, such Person hereby agrees to designate a new agent in New York City on the terms and for the purposes of this Section
11.02 reasonably satisfactory to the Administrative Agent. Such service may be made by mailing or delivering a copy of such
process to such Person in care of the Process Agent at the Process Agent’s above address, and each of the Borrowers and the
Borrowers’ Agent hereby irrevocably authorizes and directs the Process Agent to accept such service on its behalf. As an
alternative method of service, each of the Borrowers and the Borrowers’ Agent also irrevocably consents to the service of
any and all process in any such action or proceeding by the air mailing of copies of such process to such Person at its then effective
notice addresses pursuant to Section 11.12 (Notices and Other Communications). Nothing in this Agreement shall affect
any right that any party may otherwise have to bring any action or proceeding relating to this Agreement or any other Financing
Document in the courts of any jurisdiction.

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(e)               
Immunity. To the extent that any Borrower or the Borrowers’ Agent has or hereafter may acquire any immunity
from jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment
in aid of execution, execution or otherwise) with respect to itself or its property, each of the Borrowers and the Borrowers’
Agent hereby irrevocably and unconditionally waives such immunity in respect of its obligations under the Financing Documents and,
without limiting the generality of the foregoing, agrees that the waivers set forth in this Section 11.02(e) shall have
the fullest scope permitted under the Foreign Sovereign Immunities Act of 1976 of the United States and are intended to be irrevocable
for purposes of such Act.

(f)               
WAIVER OF JURY TRIAL. 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 PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OTHER FINANCING DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR
ANY OTHER THEORY). EACH PARTY HERETO (i) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(ii) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER FINANCING DOCUMENTS
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 11.02.

Section
11.03 Assignments. (a) The provisions of this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby,
except that neither any Borrower nor the Borrowers’ Agent may assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Agent and Lender, and no Lender may assign or otherwise transfer any of its
rights or obligations hereunder except (i) subject to Section 11.03(i), to an Eligible Assignee in accordance with Section
11.03(b), (ii) subject to Section 11.03(i), by way of participation in accordance with Section 11.03(d), (iii)
by way of pledge or assignment of a security interest subject to the restrictions of Section 11.03(f), or (iv) to an SPV
in accordance with the provisions of Section 11.03(h) (and any other attempted assignment or transfer by any party hereto
shall be null and void). Nothing in this Agreement, express or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in this Section
11.03, any Person to the extent provided by Section 11.04 and, to the extent expressly contemplated hereby, the Related
Parties of each Agent and Lender) any legal or equitable right, remedy or claim under or by reason of this Agreement.

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(b)              
Any Lender may at any time after the Closing Date assign to one or more Eligible Assignees all or a portion of its rights
and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it); provided
that (i) except in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and the
Loans at the time owing to it or in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund with
respect to a Lender, the Commitment (which for this purpose includes the Loans outstanding thereunder) or, if the applicable Commitment
is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment,
determined as of the date the Lender Assignment Agreement with respect to such assignment is delivered to the Administrative Agent
or, if “Trade Date” is specified in the Lender Assignment Agreement, as of the Trade Date, shall not be less
than one million Dollars ($1,000,000) and in integral multiples of one million Dollars ($1,000,000) in excess thereof, unless the
Administrative Agent otherwise consents in writing; (ii) each partial assignment shall be made as an assignment of a proportionate
part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Loan or the Commitment
assigned; (iii) the parties to each assignment shall execute and deliver to the Administrative Agent a Lender Assignment Agreement,
together with a processing and recordation fee of three thousand five hundred Dollars ($3,500); provided that (A) no such fee shall
be payable in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund with respect to a Lender and
(B) in the case of contemporaneous assignments by a Lender to one or more Funds managed by the same investment advisor (which Funds
are not then Lenders hereunder), only a single such three thousand five hundred Dollars ($3,500) fee shall be payable for all such
contemporaneous assignments; (iv) the Eligible Assignee, if it is not a Lender prior to such assignment, shall deliver to the Administrative
Agent an administrative questionnaire and (v) the assignor shall provide notice of such assignment to the Borrowers’ Agent.
Subject to acceptance and recording thereof by the Administrative Agent pursuant to Section 11.03(c), on and after the effective
date specified in each Lender Assignment Agreement, the Eligible Assignee thereunder shall be a party to this Agreement and, to
the extent of the interest assigned by such Lender Assignment Agreement, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Lender Assignment Agreement,
be released from its obligations under this Agreement (and, in the case of a Lender Assignment Agreement covering all of the assigning
Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to
be entitled to the benefits of Sections 4.01 (Eurodollar Rate Lending Unlawful), 4.03 (Increased Eurodollar
Loan Costs), 4.05 (Funding Losses), 11.07 (Costs and Expenses) and 11.09 (Indemnification
by the Borrowers) with respect to facts and circumstances occurring prior to the effective date of such assignment). Upon
request, the Borrowers (at their expense) shall execute and deliver a Note to the assignee Lender. Any assignment or transfer by
a Lender of rights or obligations under this Agreement that does not comply with this Section 11.03(b) shall be treated
for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with Section
11.03(d).

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(c)               
The Administrative Agent, acting solely for this purpose as an agent of the Borrowers, shall maintain at the Administrative
Agent’s office a copy of each Lender Assignment Agreement delivered to it and a register for the recordation of the names
and addresses of the Lenders, and the Commitment of, and principal amount of the Loans owing to, each Lender pursuant to the terms
hereof from time to time (the “Register”). The entries in the Register shall be conclusive, and the Borrowers,
the Agents and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection
by the Borrowers at any reasonable time and from time to time upon reasonable prior notice. In addition, at any time that a request
for a consent for a material or other substantive change to the Financing Documents is pending, any Lender may request and receive
from the Administrative Agent a copy of the Register.

(d)              
Any Lender may at any time, without the consent of, or notice to, the Borrowers, the Borrowers’ Agent or any Agent,
sell participations to any Person (each, a “Participant”) in all or a portion of such Lender’s rights
and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it); provided that
(i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible
to the other parties hereto for the performance of such obligations and (iii) the Borrowers, the Borrowers’ Agent, the Agents
and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights
and obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide
that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of
any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, waiver or other modification described in the first proviso to Section 11.01
(Amendments, Etc.) that directly affects such Participant. Subject to Section 11.03(e), the Borrowers agree that
each Participant shall be entitled to the benefits of Sections 4.01 (Eurodollar Rate Lending Unlawful), 4.03 (Increased
Eurodollar Loan Costs) and 4.05 (Funding Losses), to the same extent as if it were a Lender and had acquired
its interest by assignment pursuant to Section 11.03(b). To the extent permitted by law, each Participant also shall be
entitled to the benefits of Section 11.15 (Right of Setoff) as though it were a Lender; provided such Participant
agrees to be subject to Section 3.13 (Sharing of Payments) as though it were a Lender.

(e)               
A Participant shall not be entitled to receive any greater payment under Section 4.01 (Eurodollar Rate Lending Unlawful)
or 4.03 (Increased Eurodollar Loan Costs) than the applicable Lender would have been entitled to receive with respect
to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the prior
written consent of the Borrowers’ Agent.

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(f)               
Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement
(including under its Notes, if any) to secure obligations of such Lender, including any pledge or assignment to secure obligations
to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder
or substitute any such pledgee or assignee for such Lender as a party hereto.

(g)              
The words “execution,” “signed,” “signature,” and words of like
import in any Lender Assignment Agreement shall be deemed to include electronic signatures 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 or the use of
a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable Law, including the
Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or
any other similar state laws based on the Uniform Electronic Transactions Act.

(h)              
Notwithstanding anything to the contrary contained herein, any Lender (a “Granting Lender”) may grant
to a special purpose funding vehicle identified as such in writing from time to time by the Granting Lender to the Administrative
Agent and the Borrowers (an “SPV”) the option to provide all or any part of any Loan that such Granting Lender
would otherwise be obligated to make pursuant to this Agreement; provided that (i) nothing herein shall constitute a commitment
by any SPV to fund any Loan, and (ii) if an SPV elects not to exercise such option or otherwise fails to make all or any part of
such Loan, the Granting Lender shall be obligated to make such Loan pursuant to the terms hereof or, if it fails to do so, to make
such payment to the Administrative Agent as is required under Section 3.13 (Sharing of Payments). Each party hereto
hereby agrees that (A) neither the grant to any SPV nor the exercise by any SPV of such option shall increase the costs or expenses
or otherwise increase or change the obligations of the Borrowers under this Agreement (including their obligations under Section 4.03
(Increased Eurodollar Loan Costs), (B) no SPV shall be liable for any indemnity or similar payment obligation under
this Agreement for which a Lender would be liable, and (C) the Granting Lender shall for all purposes, including the approval of
any amendment, waiver or other modification of any provision of any Financing Document, remain the lender of record hereunder.
The making of a Loan by an SPV hereunder shall utilize the Commitment of the Granting Lender to the same extent, and as if, such
Loan were made by such Granting Lender. In furtherance of the foregoing, each party hereto hereby agrees (which agreement shall
survive the termination of this Agreement) that, prior to the date that is one (1) year and one (1) day after the payment in full
of all outstanding commercial paper or other senior debt of any SPV, it will not institute against, or join any other Person in
instituting against, such SPV any bankruptcy, reorganization, arrangement, insolvency, or liquidation proceeding under the laws
of the United States or any State thereof. Notwithstanding anything to the contrary contained herein, any SPV may (1) with notice
to, but without prior consent of the Borrowers and the Administrative Agent and without paying any processing fee therefor, assign
all or any portion of its right to receive payment with respect to any Loan to the Granting Lender and (2) disclose on a confidential
basis any non-public information relating to its funding of any Loan to any rating agency, commercial paper dealer or provider
of any surety or Guarantee or credit or liquidity enhancement to such SPV.

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(i)                
Until the ninety-first (91st) day after the Closing Date, no assignment in accordance with Section 11.03(b) nor participation
in accordance with Section 11.03(d) (each a “Transfer”) by a Lender shall be effective unless contemporaneously
with such Transfer such Lender and each Associated Member of such Lender shall also assign, or cause the assignment of, and the
assignee or Participant shall accept, an equivalent proportion of such Lender’s or Associated Member’s rights and obligations
under the PE Newco LLC Agreement (if any are owned by such Lender or Associated Member at such time).

(j)                
Any Lender may, at any time, assign all or a portion of its rights and obligations under this Agreement (including all or
a portion of its Commitment and the Loans at the time owing to it) to Pacific Ethanol or any of its Affiliates (other than the
Borrowers or any of their respective Subsidiaries) subject to the following limitations:

		(i)	neither Pacific Ethanol nor any of its Affiliates that are Lenders (each of Pacific Ethanol and each such Affiliate, an “Affiliated
Lender”) will receive any information provided solely to Lenders by any Agent or any Lender and will not be permitted
to attend or participate in meetings attended;

		(ii)	solely by the Lenders and/or one or more Agents, other than the right to receives notices of borrowings, notices of prepayments
and other administrative notices in respect of its Loans or Commitments required to be delivered to Lenders pursuant to Articles
II, III and IV;

		(iii)	(ii) for purposes of any amendment, waiver or modification of any Financing Document (including such modifications pursuant
to Section 11.01), or, subject to Section 11.03(l), any plan of reorganization pursuant to the Bankruptcy Code, that
in either case does not require the consent of each Lender or each affected Lender (or each Lender or each affected Lender of a
Class) (but, for the avoidance of doubt, not including votes under Sections 11.01 (b) or (d)) or does not
adversely affect such Affiliated Lender in any material respect as compared to other Lenders, Affiliated Lenders will be deemed
to have voted in the same proportion as the Lenders of the same Class that are not Affiliated Lenders voting on such matter; and
each Affiliated Lender hereby acknowledges, agrees and consents that if, for any reason, its vote to accept or reject any plan
pursuant to the Bankruptcy Code is not deemed to have been so voted, then such vote will be (x) deemed not to be in good faith
and (y) “designated” pursuant to Section 1126( e) of the Bankruptcy Code such that the vote is not counted in determining
whether the applicable class has accepted or rejected such plan in accordance with Section 1126(c) of the Bankruptcy Code;

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		(iv)	(iii) Affiliated Lenders may not purchase Revolving Loans or Revolving Loan Commitments by assignment pursuant to this Section
11.03 unless such Revolving Loans are simultaneously cancelled via contribution to the capital of one or more Borrowers or
otherwise and such Revolving Loan Commitments are simultaneously terminated; and

		(v)	(iv) Notwithstanding any provision of this Agreement to the contrary, following the purchase of any Loan or Commitment by an
Affiliated Lender, such Affiliated Lender may (but, except as otherwise provided in the foregoing clause (iii), shall not be obligated
to) cancel such Loan and/or terminate such Commitment via contribution to the capital of one or more Borrowers or otherwise and
such Loans and/or Commitments shall be deemed to be no longer outstanding or available under any provision of the Financing Documents.

(k)              
Notwithstanding anything in Section 11.01 or the definitions of “Majority Condition”, “Majority
of the Minority”, “Plurality Condition”, “Plurality of the Minority”, “Plurality of the Minority
(Stockton Vote)”, “Required Lenders” or “Required Minority Lenders”, to the contrary, for purposes
of determining (i) whether the Required Lenders, Majority of the Minority, Plurality of the Minority, Plurality of the Minority
(Stockton Vote) or Required Minority Lenders have (A) consented (or not consented) to any amendment, modification, waiver, consent
or other action with respect to any of the terms of any Financing Document or any departure by any Borrower therefrom, (B) otherwise
acted on any matter related to any Financing Document, or (C) directed or required the Administrative Agent, Collateral Agent or
any Lender to undertake any action (or refrain from taking any action) with respect to or under any Financing Document or (ii)
whether the Majority Condition or Plurality Condition exists, all Loans and Commitments held by any Affiliated Lenders shall be
deemed to be not outstanding.

(l)                
Notwithstanding anything in this Agreement or the other Financing Documents to the contrary, each Affiliated Lender hereby
agrees that, if a proceeding under the Bankruptcy Code or any other Federal, state or foreign bankruptcy, insolvency, receivership
or similar law shall be commenced by or against any Borrower or any other Loan Party at a time when such Lender is an Affiliated
Lender, such Affiliated Lender shall be deemed a Non-Voting Lender and shall not be entitled to vote with respect to any such matter
(other than those matters for which its specific consent or approval is required as an affected lender under Section 11.01); provided
that such Affiliated Lender shall be entitled to vote in accordance with its sole discretion in connection with any plan of reorganization
to the extent any such plan of reorganization proposes to treat any secured Obligations held by such Affiliated Lender in a manner
that is less favorable in any material respect to such Affiliated Lender than the proposed treatment of similar secured Obligations
held by Lenders that are not Affiliates of the Borrower.

Section
11.04 Benefits of Agreement. Nothing in this Agreement or any other Financing Document, express or implied, shall
give to any Person, other than the parties hereto, and each of their successors and permitted assigns under this Agreement or
any other Financing Document, any benefit or any legal or equitable right or remedy under this Agreement, provided that the Priority
Senior Secured Parties are express third party beneficiaries hereof.

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Section
11.05 Borrowers’ Agent. Each Borrower hereby appoints and authorizes Pacific Holding, and Pacific Holding
hereby accepts such appointment, as such Borrower’s Borrowers’ Agent to act as agent on such Borrower’s behalf
and to make any representations or certifications, deliver and receive any notices or other communications, and otherwise represent
and act on behalf of such Borrower under the Financing Documents, and to comply with all covenants, conditions and other provisions
of the Financing Documents required to be satisfied by the Borrowers’ Agent. Each Borrower hereby acknowledges and agrees
that it will be bound by any action or inaction taken by the Borrowers’ Agent as if such action or inaction had been taken
by such Borrower.

Section
11.06 Consultants. (a) The Required Senior Lenders, and, from and after the Senior Discharge Date, the Required
Lenders of the Revolving Loan Class may, in their sole discretion, appoint any Consultant for the purposes specified herein. If
any of the Consultants is removed or resigns and thereby ceases to act for purposes of this Agreement and the other Financing
Documents, the Required Senior Lenders, and, from and after the Senior Discharge Date, the Required Lenders of the Revolving Loan
Class shall designate a Consultant in replacement.

(b)              
The Borrowers shall reimburse each Consultant appointed hereunder for the reasonable fees and reasonable and documented
out-of-pocket expenses of such Consultant retained on behalf of the Lenders pursuant to this Section 11.06.

(c)               
In all cases in which this Agreement provides for any Consultant to “agree,” “approve,”
“certify” or “confirm” any report or other document or any fact or circumstance, such Consultant
may make the determinations and evaluations required in connection therewith based upon information provided by the Borrowers,
the Borrowers’ Agent or other sources reasonably believed by such Consultant to be knowledgeable and responsible, without
independently verifying such information; provided that, notwithstanding the foregoing, such Consultant shall engage in such independent
investigations or findings as it may from time to time deem necessary in its reasonable discretion to support the determinations
and evaluations required of it.

Section
11.07 Costs and Expenses. Each Borrower shall pay (a) (whether or not the transactions contemplated hereby or thereby
are consummated) all reasonable and documented out of pocket expenses incurred by the Agents, the Lender Committee or any Lender
(including all reasonable fees, costs and expenses of counsel for any Senior Secured Party and the Lender Committee and a financial
advisor for the Administrative Agent), in connection with (i) the preparation, negotiation, syndication, execution and delivery
of this Agreement and the other Financing Documents, (ii) the filing and recordation of the Financing Documents, (iii) any amendments,
modifications or waivers of the provisions of this Agreement and the other Financing Documents and (iv) the administration of
this Agreement and the other Financing Documents and (b) all out-of-pocket expenses incurred by the Agents or any Lender (including
all fees, costs and expenses of counsel for any Senior Secured Party), in connection with the enforcement or protection of its
rights in connection with this Agreement and the other Financing Documents, including its rights under this Section 11.07,
including in connection with any workout, restructuring or negotiations in respect of the Obligations.

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

Section
11.09 Indemnification by the Borrowers. (a) Each Borrower
hereby agrees to indemnify each Agent (and any sub-agent thereof), each Lender, the Lender Committee and each Related Party of
any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee
harmless from, any and all fees, losses, claims, damages, liabilities and related expenses (including all reasonable and documented
fees, costs and out-of-pocket expenses of counsel for any Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee
arising out of, in connection with, or as a result of:

		(i)	the execution or delivery of this Agreement, any other Transaction Document or any agreement or instrument contemplated hereby
or thereby, the performance by the parties hereto or thereto of their respective obligations hereunder or thereunder or the consummation
of the transactions contemplated hereby or thereby;

		(ii)	any Loan or the use or proposed use of the proceeds therefrom;

		(iii)	any actual or alleged presence, release or threatened release of Materials of Environmental Concern on or from any Plant or
any property owned, leased or operated by any Borrower, or any liability pursuant to an Environmental Law related in any way to
any Plant, any Site or the Borrowers;

		(iv)	any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory, and regardless of whether any Indemnitee is a party thereto and whether or not any of the transactions
contemplated hereunder or under any of the other Financing Documents is consummated, in all cases, whether or not caused by or
arising, in whole or in part, out of the comparative, contributory or sole negligence of the Indemnitee; and/or

		(v)	any claim, demand or liability for broker’s or finder’s or placement fees or similar commissions, whether or not
payable by a Borrower, alleged to have been incurred in connection with such transactions, other than any broker’s or finder’s
fees payable to Persons engaged by the Lenders or the Agents without the knowledge of the Borrowers;

    	105

    	 

    
	

provided that such indemnity shall not, as to any Indemnitee,
be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent
jurisdiction by final and Non-Appealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee.

(b)              
To the extent that any of the Borrowers for any reason fails to indefeasibly pay any amount required under Section 11.09(a)
to be paid by it to any Agent (or any sub-agent thereof) or any Related Party of any of the foregoing, each Lender severally agrees
to pay to such Agent (or any such sub-agent), or such Related Party, as the case may be, such Lender’s ratable share (determined
as of the time that the applicable unreimbursed or indemnified payment is sought) of such unpaid amount; provided that the unreimbursed
expense or indemnified fee, loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted
against such Agent (or any sub-agent thereof) in its capacity as such, or against any Related Party of any of the foregoing acting
for such Agent (or any sub-agent thereof) in connection with such capacity. The obligations of the Lenders under this Section
11.09(b) are subject to the provisions of Section 2.05(d) (Funding of Loans). The obligations of the Lenders
to make payments pursuant to this Section 11.09(b) are several and not joint and shall survive the payment in full of the
Obligations and the termination of this Agreement. The failure of any Lender to make payments on any date required hereunder shall
not relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the
failure of any other Lender to do so.

(c)               
Except as otherwise provided in Article VI (Conditions Precedent), all amounts due under this Section 11.09
shall be payable not later than ten (10) Business Days after demand therefor.

Section
11.10 Interest Rate Limitation. Notwithstanding anything to the contrary contained in any Financing Document, the
interest paid or agreed to be paid under the Financing Documents shall not exceed the maximum rate of non-usurious interest permitted
by applicable Law (the “Maximum Rate”). If any Agent or any Lender shall receive interest in an amount that
exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such unpaid principal,
refunded to the Borrowers. In determining whether the interest contracted for, charged, or received by any Senior Secured Party
exceeds the Maximum Rate, such Person may, to the extent permitted by applicable Law, (a) characterize any payment that is not
principal as an expense, fee, or premium rather than interest, (b) exclude prepayments and the effects thereof, and (c) amortize,
prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations
hereunder.

Section
11.11 No Waiver; Cumulative Remedies. No failure by any Senior Secured Party to exercise, and no delay by any such
Person in exercising, any right, remedy, power or privilege hereunder or under any other Financing Document shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges
herein provided, and provided under each other Financing Document, are cumulative and not exclusive of any rights, remedies, powers
and privileges provided by law.

    	106

    	 

    

Section
11.12 Notices and Other Communications. (a) Except in the case of notices and other communications expressly permitted
to be given by telephone (and except as provided in Section 11.12(b)), all notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail
or sent by telecopier or electronic mail as follows, and all notices and other communications expressly permitted hereunder to
be given by telephone shall be made to the applicable telephone number, as follows:

		(i)	if to the Borrowers, the Borrowers’ Agent or any Agent, to the address, telecopier number, electronic mail address or
telephone number specified for such Person on Schedule 11.12;

		(ii)	if to any Lender, to the address, telecopier number, electronic mail address or telephone number specified in its administrative
questionnaire; and

		(iii)	if to any Interest Rate Protection Provider, to the address, telecopier, number, electronic mail address or telephone number
specified on Schedule 11.12.

(b)              
Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been
given when received; notices sent by telecopier shall be deemed to have been given when sent (except that, if not given during
normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next Business Day
for the recipient). Notices delivered through electronic communications to the extent provided in Section 11.12(d) shall
be effective as provided in Section 11.12(d). Any notice sent to the Borrowers’ Agent shall be deemed to have been
given to all Borrowers.

(c)               
Notices and other communications to the Senior Secured Parties hereunder may be delivered or furnished by electronic communication
(including e mail and internet or intranet websites) pursuant to procedures approved by the Administrative Agent; provided that
the foregoing shall not apply to notices to any Lender pursuant to Article II (Commitments and Funding) if such Lender
has notified the Administrative Agent that it is incapable of receiving notices under such Article II (Commitments and Funding)
by electronic communication. Each of the Administrative Agent or the Borrowers may, in its discretion, agree to accept notices
and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval
of such procedures may be limited to particular notices or communications.

(d)              
Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall
be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return
receipt requested” function, as available, return e-mail or other written acknowledgement); provided that if such notice
or other communication is not received during the normal business hours of the recipient, such notice or communication shall be
deemed to have been received at the opening of business on the next Business Day for the recipient, and (ii) notices or communications
posted to an internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail
address as described in Section 11.12(d)(i) of notification that such notice or communication is available and identifying
the website address therefor.

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(e)               
Each of the Borrowers, the Borrowers’ Agent and the Agents may change its address, telecopier or telephone number
for notices and other communications hereunder by notice to the other parties hereto. Each Lender and Interest Rate Protection
Provider may change its address, telecopier or telephone number for notices and other communications hereunder by notice to the
Borrowers, the Borrowers’ Agent and each Agent.

(f)               
The Senior Secured Parties shall be entitled to rely and act upon any written notices purportedly given by or on behalf
of the Borrowers or the Borrowers’ Agent even if (i) such notices were not made in a manner specified herein, were incomplete
or were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the
recipient, varied from any confirmation thereof. The Borrowers shall indemnify each Senior Secured Party and the Related Parties
of each of them from all fees, losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice
purportedly given by or on behalf of the Borrowers or the Borrowers’ Agent (or any one of the Borrowers). All telephonic
notices to and other telephonic communications with any Agent may be recorded by such Agent, and each of the parties hereto hereby
consents to such recording.

(g)              
So long as Wells Fargo is the Administrative Agent, each Borrower and the Borrowers’ Agent hereby agrees that it
will provide to the Administrative Agent all information, documents and other materials that it is obligated to furnish to the
Administrative Agent pursuant to the Financing Agreements, including all notices, requests, financial statements, financial and
other reports, certificates and other information materials, but excluding any such communication that (i) relates to the Funding,
(ii) relates to the payment of any principal or other amount due under this Agreement prior to the scheduled date therefor, (iii)
provides notice of any Default or Event of Default or (iv) is required to be delivered to satisfy any condition precedent to Funding
(all such non-excluded communications being referred to herein collectively as “Communications”), by transmitting
the Communications in an electronic/soft medium in a format acceptable to the Administrative Agent to michael.d.pinzon@wellsfargo.com
and to hui.chen@wellsfargo.com. In addition, each Borrower and the Borrowers’ Agent agrees to continue to provide
the Communications to the Administrative Agent in the manner specified in the Financing Agreements but only to the extent requested
by the Administrative Agent.

(h)              
So long as Wells Fargo is the Administrative Agent, each Borrower and the Borrowers’ Agent further agrees that the
Administrative Agent may make the Communications available to the Lenders by posting the Communications on http: www.intralinks.com
(or any replacement or successor thereto) or a substantially similar electronic transmission systems (the “Platform”).

    	108

    	 

    

(i)                
THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE”. THE AGENTS DO NOT WARRANT THE ACCURACY OR COMPLETENESS
OF THE COMMUNICATIONS, OR THE ADEQUACY OF THE PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE COMMUNICATIONS.
NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE AGENTS IN CONNECTION WITH
THE COMMUNICATIONS OR THE PLATFORM. IN NO EVENT SHALL THE ADMINISTRATIVE AGENT OR ANY OF ITS AFFILIATES OR ANY OF THEIR RESPECTIVE
OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ADVISORS OR REPRESENTATIVES (COLLECTIVELY, “AGENT PARTIES”) HAVE ANY
LIABILITY TO ANY BORROWER, THE BORROWERS’ AGENT, ANY LENDER OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING
DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING
OUT OF THE BORROWER’S, THE BORROWERS’ AGENTS’ OR THE ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS
THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF ANY AGENT PARTY IS FOUND IN A FINAL NON-APPEALABLE JUDGMENT BY A COURT
OF COMPETENT JURISDICTION TO HAVE RESULTED PRIMARILY FROM SUCH AGENT PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

(j)                
The Administrative Agent agrees that the receipt of the Communications by the Administrative Agent at its e-mail address
set forth in Schedule 11.12 shall constitute effective delivery of the Communications to the Administrative Agent for purposes
of the Financing Agreements. Each Lender agrees that notice to it (as provided in the next sentence) specifying that the Communications
have been posted to the Platform shall constitute effective delivery of the Communications to such Lender for purposes of the Financing
Agreements. Each Lender agrees to notify the Administrative Agent in writing (including by electronic communication) from time
to time of such Lender’s e-mail address to which the foregoing notice may be sent by electronic transmission and that the
foregoing notice may be sent to such e-mail address.

(k)              
Notwithstanding clauses (g) to (j) above, nothing herein shall prejudice the right of any Senior Secured Party to
give any notice or other communication pursuant to any Financing Document in any other manner specified in such Financing Document.

(l)              
The distribution of material through
an electronic medium is not necessarily secure and there are confidentiality and other risks associated with such distribution.
The Borrowers and the Lenders agree and assume the risks associated with such electronic distribution. The Administrative Agent
may, but shall not be obligated to, store any electronic communications on Internet or intranet platform in accordance with the
Administrative Agent’s customary document retention procedures and policies.

Section
11.13 Patriot Act Notice. Each Senior Secured Party (for itself and not on behalf of any Lender) hereby notifies
the Borrowers that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that
identifies the Borrowers, which information includes the name and address of the Borrowers and other information that will allow
such Senior Secured Party to identify the Borrowers in accordance with the Patriot Act.

    	109

    	 

    

Section
11.14 Payments Set Aside. To the extent that any payment by or on behalf of any Borrower is made to any Agent or
Lender, or any Agent or Lender exercises its right of setoff (including any payment or setoff in accordance with the Intercreditor
Agreement), and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent
or preferential, set aside or required (including pursuant to any settlement entered into by such Agent or Lender in its discretion)
to be repaid to a trustee, receiver or any other party, in connection with any bankruptcy or insolvency proceeding or otherwise,
then (a) to the extent of such recovery, the Obligation or part thereof originally intended to be satisfied shall be revived and
continued in full force and effect as if such payment had not been made or such setoff had not occurred, and (b) each Lender severally
agrees to pay to each Agent upon demand its applicable share (without duplication) of any amount so recovered from or repaid by
such Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate per annum equal
to the Federal Funds Effective Rate from time to time in effect. The obligations of the Lenders under Section 11.14(b)
shall survive the payment in full of the Obligations and the termination of this Agreement and/or the Intercreditor Agreement.

Section
11.15 Right of Setoff. Each Lender and each of its respective Affiliates is hereby authorized at any time and from
time to time during the continuance of an Event of Default and subject to the Intercreditor Agreement, to the fullest extent permitted
by applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever
currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender or any such Affiliate
to or for the credit or the account of any Borrower against any and all of the obligations of the Borrowers now or hereafter existing
under this Agreement or any other Financing Document to such Lender, irrespective of whether or not such Lender shall have made
any demand under this Agreement or any other Financing Document and although such obligations of the Borrowers may be contingent
or unmatured or are owed to a branch or office of such Lender different from the branch or office holding such deposit or obligated
on such indebtedness. The rights of each Lender and their respective Affiliates under this Section 11.15, subject to the
Intercreditor Agreement, are in addition to other rights and remedies (including other rights of setoff) that such Lender or their
respective Affiliates may have. Each Lender agrees to notify the Borrowers’ Agent and the Administrative Agent promptly
after any such setoff and application; provided that the failure to give such notice shall not affect the validity of such setoff
and application.

Section
11.16 Severability. If any provision of this Agreement or any other Financing Document is held to be illegal, invalid
or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement and the other Financing
Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the
illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to
that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction.

    	110

    	 

    

Section
11.17 Survival. Notwithstanding anything in this Agreement to the contrary, Sections 11.07 (Costs and Expenses)
and 11.09 (Indemnification by the Borrowers) shall survive any termination of this Agreement. In addition, each
representation and warranty made hereunder and in any other Financing Document or other document delivered pursuant hereto or
thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof. Such representations
and warranties have been or will be relied upon by each Senior Secured Party, regardless of any investigation made by any Senior
Secured Party or on their behalf and notwithstanding that any Senior Secured Party may have had notice or knowledge of any Default
or Event of Default at the time of the Funding, and shall continue in full force and effect as long as any Loan or any other Obligation
hereunder or under any other Financing Document shall remain unpaid or unsatisfied.

Section
11.18 Treatment of Certain Information; Confidentiality. Each of the Agents and the Lenders agrees to maintain the
confidentiality of the Information, except that Information may be disclosed (a) to its Affiliates and its and its Affiliates’
respective partners, directors, officers, employees, agents, advisors and representatives (it being understood that the Persons
to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information
confidential); (b) to the extent requested or required by any regulatory authority purporting to have jurisdiction over it; (c)
to the extent required by applicable Law or regulations or by any subpoena or similar legal process; (d) to any other party to
this Agreement; (e) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this
Agreement or the enforcement of rights hereunder (including any actual or prospective purchaser of Collateral); (f) subject to
an agreement containing provisions substantially the same as those of this Section 11.18, to (i) any Eligible Assignee
of or Participant in, or any prospective Eligible Assignee of or Participant in, any of its rights or obligations under this Agreement,
(ii) any direct or indirect contractual counterparty or prospective counterparty (or such contractual counterparty’s or
prospective counterparty’s professional advisor) to any credit derivative transaction relating to the Obligations or (iii)
any Person (and any of its officers, directors, employees, agents or advisors) that may enter into or support, directly or indirectly,
or that may be considering entering into or supporting, directly or indirectly, either (A) contractual arrangements with such
Agent or Lender, or any Affiliates thereof, pursuant to which all or any portion of the risks, rights, benefits or obligations
under or with respect to any Loan or Financing Document is transferred to such Person or (B) an actual or proposed securitization
or collateralization of, or similar transaction relating to, all or a part of any amounts payable to or for the benefit of any
Lender under any Financing Document (including any rating agency); (g) with the consent of any Borrower; (h) to the extent such
Information (i) becomes publicly available other than as a result of a breach of this Section 11.18 or (ii) becomes available
to any Agent, any Lender or any of their respective Affiliates on a nonconfidential basis from a source other than the Borrowers;
(i) to any state, federal or foreign authority or examiner (including the National Association of Insurance Commissioners or any
other similar organization) regulating any Lender; or (j) to any rating agency when required by it (it being understood that,
prior to any such disclosure, such rating agency shall undertake to preserve the confidentiality of any Information relating to
the Borrowers received by it from such Lender). In addition, any Agent and the Lenders may disclose the existence of this Agreement
and information about this Agreement to market data collectors, similar service providers to the lending industry, and service
providers to the Agents and the Lenders in connection with the administration and management of this Agreement, the other Financing
Documents, the Commitments, and the Funding. For the purposes of this Section 11.18, “Information” means
written information that any Borrower furnishes to any Agent or Lender after the Closing Date (and designated at the time of delivery
thereof in writing as confidential) pursuant to or in connection with any Financing Document, relating to the assets and business
of such Borrower, but does not include any such information that (i) is or becomes generally available to the public other than
as a result of a breach by such Agent or Lender of its obligations hereunder, (ii) is or becomes available to such Agent or Lender
from a source other than the Borrowers that is not, to the knowledge of such Agent or Lender, acting in violation of a confidentiality
obligation with such Borrower or (iii) is independently compiled by any Agent or Lender, as evidenced by their records, without
the use of the Information. Any Person required to maintain the confidentiality of Information as provided in this Section
11.18 shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care
to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

    	111

    	 

    

Section
11.19 Waiver of Consequential Damages, Etc.  Except as otherwise provided in Section 11.09
(Indemnification by the Borrowers) for the benefit of any Indemnitee, to the fullest extent permitted by
applicable Law, no party hereto shall assert, and each party hereto hereby waives, any claim against any Indemnitee, on any
theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages)
arising out of, in connection with, or as a result of, this Agreement, any other Financing Document or any agreement or
instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or the use of the proceeds thereof.
No Indemnitee shall be liable for any damages arising from the use by unintended recipients of any information or other
materials distributed by it through telecommunications, electronic or other information transmission systems in connection
with this Agreement or the other Financing Documents or the transactions contemplated hereby or thereby.

Section
11.20 Waiver of Litigation Payments. To the extent that any Borrower or the Borrowers’ Agent may, in any
action, suit or proceeding brought in any of the courts referred to in Section 11.02(b) (Applicable Law; Jurisdiction; Etc.)
or elsewhere arising out of or in connection with this Agreement or any other Financing Document to which it is a party, be
entitled to the benefit of any provision of law requiring any Senior Secured Party in such action, suit or proceeding to post
security for the costs of such Person or to post a bond or to take similar action, each such Person hereby irrevocably waives
such benefit, in each case to the fullest extent now or in the future permitted under the laws of New York or, as the case
may be, the jurisdiction in which such court is located.

Section
11.21 Security Procedure For Funds Transfers. The Administrative Agent shall confirm each funds transfer instruction
received in the name of any Borrower or the Borrowers’ Agent by means of the security procedure selected the Borrowers’
Agent and communicated to the Administrative Agent through a signed certificate in the form of Exhibit 11.21, which upon
receipt by the Administrative Agent shall become a part of this Agreement. Once delivered to the Administrative Agent, Exhibit
11.21 may be revised or rescinded only by a writing signed by an authorized representative of the Borrowers’ Agent.
Such revisions or rescissions shall be effective only after actual receipt and following such period of time as may be necessary
to afford the Administrative Agent a reasonable opportunity to act on it. If a revised certificate in the form of Exhibit 11.21
or a rescission of any such existing certificate is delivered to the Administrative Agent by an entity that is a successor-in-interest
to the Borrowers’ Agent, such document shall be accompanied by additional documentation satisfactory to the Administrative
Agent showing that such entity has succeeded to the rights and responsibilities of the Borrowers’ Agent under this Agreement.
The parties understand that the Administrative Agent’s inability to receive or confirm funds transfer instructions pursuant
to the security procedure selected by the Borrowers’ Agent may result in a delay in accomplishing such funds transfer, and
agree that the Administrative Agent shall not be liable for any loss caused by any such delay.

 

[Remainder of page intentionally blank.
Next page is signature page.]

    	112

    	 

    
 

IN WITNESS WHEREOF, the parties hereto
have caused this Amended and Restated Credit Agreement to be executed by their respective officers as of the day and year first
above written.

	 	
        PACIFIC ETHANOL HOLDING CO. LLC,

        as Borrower

	 	 
	 	By:	/S/ BRYON T. MCGREGOR
	 	 	Name: Bryon T. McGregor
	 	 	Title: Chief Operating Officer

		
        PACIFIC
ETHANOL MADERA LLC,

        as Borrower

	 	 
	 	By:	/S/ BRYON T. MCGREGOR
	 	 	Name: Bryon T. McGregor
	 	 	Title: Chief Operating Officer

	 	
        PACIFIC
ETHANOL COLUMBIA, LLC,

        as Borrower

	 	 
	 	By:	/S/ BRYON T. MCGREGOR
	 	 	Name: Bryon T. McGregor
	 	 	Title: Chief Operating Officer

 

		
        PACIFIC
ETHANOL STOCKTON LLC,

        as Borrower

	 	 
	 	By:	/S/ BRYON T. MCGREGOR
	 	 	Name: Bryon T. McGregor
	 	 	Title: Chief Operating Officer

 

		
        PACIFIC
ETHANOL MAGIC VALLEY, LLC,

        as Borrower

	 	 
	 	By:	/S/ BRYON T. MCGREGOR
	 	 	Name: Bryon T. McGregor
	 	 	Title: Chief Operating Officer

 

 

[AMENDED AND RESTATED
CREDIT AGREEMENT]

  

 

    	113

    	 

    

 

		
        PACIFIC
ETHANOL HOLDING CO. LLC,

as Borrowers’ Agent

	 	 
	 	By:	/S/ BRYON T. MCGREGOR
	 	 	Name: Bryon T. McGregor
	 	 	Title: Chief Operating Officer

 

		
        NEW
PE HOLDCO LLC,

as Pledgor

	 	 
	 	By:	/S/ BRYON T. MCGREGOR
	 	 	Name: Bryon T. McGregor
	 	 	Title: Chief Operating Officer

 

 

[AMENDED AND RESTATED
CREDIT AGREEMENT]

 

    	114

    	 

    
 

		
        CONTINENTAL
CASUALTY COMPANY,

as Lender

	 	 
	 	By:	/S/ EDWARD J. LAVIN
	 	 	Name: Edward J. Lavin
	 	 	Title: Assistant Vice President

 

 

 

 

 

 

 

 

 

 

[AMENDED AND RESTATED
CREDIT AGREEMENT]

 

    	115

    	 

    

 

		
        CANDLEWOOD CREDIT VALUE MASTER FUND II, LP,

as Lender

	 	 
	 	By: Credit Value Partners LP, as investment manager
	 	 
	 	By:	/S/ MICHAEL GEROUX
	 	 	Name: Michael Geroux
	 	 	Title: Partner

 

 

 

 

 

 

 

 

[AMENDED AND RESTATED
CREDIT AGREEMENT]

 

    	116

    	 

    

 

 

 

		
        CANDLEWOOD
SPECIAL SITUATIONS FUND, LP,

as Lender

	 	 
	 	By: Candlewood Investment Group, as investment manager
	 	 
	 	By:	/S/ ILLEGIBLE SIGNATURE
	 	 	Name: Illegible signature
	 	 	Title: 

 

 

 

 

 

 

 

 

 

    	117

    	 

    
 

 

		
        CANDLEWOOD
SPECIAL SITUATIONS MASTER FUND. LTD.

as Lender

	 	 
	 	By: Candlewood Investment Group, as investment manager
	 	 
	 	By:	/S/ ILLEGIBLE SIGNATURE
	 	 	Name: Illegible signature
	 	 	Title: 

 

 

 

 

 

 

 

 

 

 

 

    	118

    	 

    
 

 

		
        CREDIT
SUISSE LOAN FUNDING LLC,

as Lender

	 	 
	 	By:	/S/ ROBERT HEALEY
	 	 	Name: Robert Healey
	 	 	Title: Authorized Signatory
	 	 	 
	 	 	 
	 	By:	/S/ MICHAEL WOTANOWSKI
	 	 	Name: Michael Wotanowski
	 	 	Title: Authorized Signatory

 

 

 

 

 

 

 

    	119

    	 

    

 

 

		
        MARBLEGATE
SPECIAL OPPORTUNITIES MASTER FUND LP,

as Lender

	 	 
	 	By:	/S/ ANDREW MILGRAM
	 	 	Name: Andrew Milgram
	 	 	Title: Managing Partner

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	120

    	 

    
 

 

		
        METROPOLITAN
LIFE INSURANCE COMPANY,

as Lender

	 	 
	 	By:	/S/ DAVID YU
	 	 	Name: David Yu
	 	 	Title: Director

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	121

    	 

    
  

 

		
        NORDKAP
        AG,
 as Lender

	 	 
	 	By:	/S/ JEFFREY P. RIOPELLE
	 	 	Name: Jeffrey P. Riopelle
	 	 	Title: Chief Risk Officer
	 	 	 
	 	 	 
	 	By:	/S/ NIKLAUS HASLER
	 	 	Name: Niklaus Hasler
	 	 	Title: Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

    	122

    	 

    
 

 

 

		
        WEXFORD
SPECTRUM INVESTORS LLC,

as Lender

	 	 
	 	By: Wexford Capital, LP, its manager

By: Wexford GPLLC, its general partner
	 	 
	 	By:	/S/ ARTHUR AMRON
	 	 	Name: Arthur Amron
	 	 	Title: Vice President and Assistant Secretary

 

 

		
        WEXFORD
CATALYST INVESTORS LLC,

as Lender

	 	 
	 	By: Wexford Capital, LP, its manager
	 	By: Wexford GPLLC, its general partner
	 	 
	 	By:	/S/ ARTHUR AMRON
	 	 	Name: Arthur Amron
	 	 	Title: Vice President and Assistant Secretary

 

  

		
        DEBELLO
INVESTORS LLC,

as Lender

	 	 
	 	By: Wexford Capital, LP, its manager
		By: Wexford GPLLC, its general partner
	 	 
	 	By:	/S/ ARTHUR AMRON
	 	 	Name: Arthur Amron
	 	 	Title: Vice President and Assistant Secretary

 

 

    	123

    	 

    
 

		
        WELLS
FARGO BANK, N.A.,

as Administrative Agent

	 	 
	 	By:	/S/ MICHAEL PINZON
	 	 	Name: Michael Pinzon
	 	 	Title: Vice President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	124

    	 

    

 

		
        WELLS
FARGO BANK, N.A.,

as Collateral Agent

	 	 
	 	By:	/S/ MICHAEL PINZON
	 	 	Name: Michael Pinzon
	 	 	Title: Vice President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	125

    	 

    

 

 

		
        AMARILLO
NATIONAL BANK,

as Accounts Bank

	 	 
	 	By:	/S/ CRAIG L. SANDERS
	 	 	Name: Craig L. Sanders
	 	 	Title: Executive Vice President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	126

    	 

    

 

SCHEDULE 1.01(a)

to Exit Credit Agreement

LENDERS, LOAN COMMITMENTS
AND OFFICES

		I.	TRANCHE A-1 TERM LOANS

	TRANCHE A-1 LENDER	TRANCHE A-1 TERM LOAN COMMITMENT	PIK Interest 	TRANCHE A-1 TERM LOAN 	
        Contact

         

	* Candlewood Credit Value Master Fund II, LP	
        $665,841.31

         
	$0.00	$665,841.31	
        Joseph Canbareri

        Phone: 212-493-4469

        Fax:

        646-380-3563

        Email: creditvaluenotices@cvp7.com

         

	* Candlewood Special Situations Fund, LP	$7,924,400.08	$554,042.26	$8,478,442.34	
        PETER DOWLING

        Phone: 212-439-4489

        Fax: 646-380-3565

        Email:

        LOANS@CANDLEWOODGROUP.COM; PDOWLING@CANDLEWOODGROUP.COM;CandlewoodOps@citco.com

         

	* Continental Casualty Company	$2,385,620.00	$180,706.27	$2,566,326.27	
        JOHN TSOKOLAS

        Phone: 312-822-5270

        Fax: 312-822-4175

        Email: JOHN.TSOKOLAS@CNA.COM

	* Credit Suisse Loan Funding LLC	$7,331,659.62	$471,207.14	$7,802,866.76	
        JEANNETTE CRESPO

        Phone: 919-994-6374

        Fax: 866-469-3871

        Email: JEANNETTE.CRESPO@CREDIT-SUISSE.COM

	* Debello Investors LLC	$791,065.20	$60,343.15	$851,408.35	
        DANTE DOMENICHELLI

        Phone: 203-862-7088

        Fax: 203-862-7492

        Email: BANKDEBT@WEXFORD.COM, operations@wexford.com

	Marblegate Special Opportunities Master Fund LP	$1,337,218.02	$0.00	$1,337,218.02	
        MARK E. ZOLDAN

        Phone: 203-413-6902

        Fax: 203-413-6938

        Email: MARK@MARBLEGATE.COM; MARBLE_MA.Notices@globeop.com

	* Metropolitan Life Insurance Company	$1,916,666.67	$0.00	$1,916,666.67	
        NEIL FREDRICKS

        Phone: 813-983-4455

        Fax: 201-215-2328

        Email: NFREDRICKS@METLIFE.COM

	Nordkap AG	$801,710.30	$0.00	$801,710.30	
        ISABELLE SCHERER

        Phone: 011 41 44 306 49 22

        Fax: 011 41 44 306 49 11

        Email: ISABELLE.SCHERER@NORDKAPBANK.COM; MARIBEL.LENZ@NORDKAPBANK.COM;
        LOANADMIN@NORDKAPBANK.COM

	* Wexford Catalyst Investors LLC	$527,376.80	$40,228.60	$567,605.40	
        DANTE DOMENICHELLI

        Phone: 203-862-7088

        Fax: 203-862-7492

        Email: BANKDEBT@WEXFORD.COM, operations@wexford.com

	* Wexford Spectrum Investors LLC	$1,318,442.00	$100,572.24	$1,419,014.24	
        DANTE DOMENICHELLI

        Phone: 203-862-7088

        Fax: 203-862-7492

        Email: BANKDEBT@WEXFORD.COM, operations@wexford.com

 

 

    	1.01(a) 1

    	 

    

		II.	TRANCHE A-2 TERM LOANS

	TRANCHE A-2 

LENDER	TRANCHE A-2 TERM LOAN COMMITMENT	Contact
	Candlewood Special Situations Master Fund, Ltd.	$5,569,707.45	
        PETER DOWLING

        Phone: 212-439-4489

        Fax: 646-380-3565

        Email:

        LOANS@CANDLEWOODGROUP.COM; PDOWLING@CANDLEWOODGROUP.COM;CandlewoodOps@citco.com

         

	Continental Casualty Company	$4,373,000.05	
        JOHN TSOKOLAS

        Phone: 312-822-5270

        Fax: 312-822-4175

        Email: JOHN.TSOKOLAS@CNA.COM

	Credit Suisse Loan Funding LLC	$6,587,794.51	
        JEANNETTE CRESPO

        Phone: 919-994-6374

        Fax: 866-469-3871

        Email: JEANNETTE.CRESPO@CREDIT-SUISSE.COM

	Debello Investors LLC	$831,542.50	
        DANTE DOMENICHELLI

        Phone: 203-862-7088

        Fax: 203-862-7492

        Email: BANKDEBT@WEXFORD.COM, operations@wexford.com

	
        Metropolitan Life

        Insurance Company
	$2,236,286.89	
        Metropolitan Life Insurance Company

        10 Park Avenue

        Morristown, NJ 07962

        Attention: Neil Fredricks

        Telephone: 813-983-4455

        Facsimile: 212-251-1604

	Nordkap Bank AG	$2,104,984.39	
        ISABELLE SCHERER

        Phone: 011 41 44 306 49 22

        Fax: 011 41 44 306 49 11

        Email: ISABELLE.SCHERER@NORDKAPBANK.COM; MARIBEL.LENZ@NORDKAPBANK.COM;
        LOANADMIN@NORDKAPBANK.COM

	Cooperatieve Cenrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland,” New York Branch	$2,635,620.80	
        Swati Wadnerkar

        Phone: 201-499-5320

        Fax: 201-499-5326

        Email: swati.wadnerkar@rabobnak.com

	Wexford Catalyst Investors LLC	$554,361.67	
        DANTE DOMENICHELLI

        Phone: 203-862-7088

        Fax: 203-862-7492

        Email: BANKDEBT@WEXFORD.COM, operations@wexford.com

	Wexford Spectrum Investors LLC	$1,385,904.17	
        DANTE DOMENICHELLI

        Phone: 203-862-7088

        Fax: 203-862-7492

        Email: BANKDEBT@WEXFORD.COM, operations@wexford.com

 

    	1.01(a) 2

    	 

    
 

		III.	REVOLVING LOANS

	Revolving Lender	Original Revolving Loan Commitment	Additional Revolving Loan $5MM	Revolving Loan Total	Contact
	* Candlewood Credit Value Master Fund II, LP	
        $932,177.83

         
	$0.00	$932,177.83	
        Joseph Canbareri

        Phone: 212-493-4469

        Fax:

        646-380-3563

        Email: creditvaluenotices@cvp7.com

         

	* Candlewood Special Situations Fund, LP	$11,094,160.12	$869,670.00	$11,963,830.12	
        PETER DOWLING

        Phone: 212-439-4489

        Fax: 646-380-3565

        Email:

        LOANS@CANDLEWOODGROUP.COM; PDOWLING@CANDLEWOODGROUP.COM;CandlewoodOps@citco.com

         

	* Continental Casualty Company	$3,339,868.00	$1,134,000.00	$4,473,868.00	
        JOHN TSOKOLAS

        Phone: 312-822-5270

        Fax: 312-822-4175

        Email: JOHN.TSOKOLAS@CNA.COM

	* Credit Suisse Loan Funding LLC	$10,264,323.47	$1,654,820.00	$11,919,143.47	
        JEANNETTE CRESPO

        Phone: 919-994-6374

        Fax: 866-469-3871

        Email: JEANNETTE.CRESPO@CREDIT-SUISSE.COM

	* Debello Investors LLC	$1,107,491.28	$402,450.00	$1,509,941.28	
        DANTE DOMENICHELLI

        Phone: 203-862-7088

        Fax: 203-862-7492

        Email: BANKDEBT@WEXFORD.COM, operations@wexford.com

	Marblegate Special Opportunities Master Fund LP	$1,872,105.23	$0.00	$1,872,105.23	
        MARK E. ZOLDAN

        Phone: 203-413-6902

        Fax: 203-413-6938

        Email: MARK@MARBLEGATE.COM; MARBLE_MA.Notices@globeop.com

	* Metropolitan Life Insurance Company	$2,683,333.33	$0.00	$2,683,333.33	
        NEIL FREDRICKS

        Phone: 813-983-4455

        Fax: 201-215-2328

        Email: NFREDRICKS@METLIFE.COM

	Nordkap AG	$1,122,394.42	$0.00	$1,122,394.42	
        ISABELLE SCHERER

        Phone: 011 41 44 306 49 22

        Fax: 011 41 44 306 49 11

        Email: ISABELLE.SCHERER@NORDKAPBANK.COM; MARIBEL.LENZ@NORDKAPBANK.COM;
        LOANADMIN@NORDKAPBANK.COM

	* Wexford Catalyst Investors LLC	$738,327.52	$268,290.00	$1,006,617.52	
        DANTE DOMENICHELLI

        Phone: 203-862-7088

        Fax: 203-862-7492

        Email: BANKDEBT@WEXFORD.COM, operations@wexford.com

	* Wexford Spectrum Investors LLC	$1,845,818.80	$670,770.00	$2,516,588.80	
        DANTE DOMENICHELLI

        Phone: 203-862-7088

        Fax: 203-862-7492

        Email: BANKDEBT@WEXFORD.COM, operations@wexford.com

 

    	1.01(a) 3

    	 

    

 

 

Schedule 5.11(i)

to Credit Agreement

CONTRACTS1

As of June 25, 2010

	Pacific Ethanol Holding Co. LLC
	 	Name of Counterparty	Title
	1.	—	Second Amended and Restated Limited Liability Company Agreement of Pacific Ethanol Holding Co. LLC
	2.	Boardman, Burley, Madera, Stockton, and Pacific Ethanol	* Asset Management Agreement
	3.	Boardman, Burley, Madera, Stockton, and Pacific Ethanol	* Asset Management Agreement Consent
	4.	U.S. Environmental Protection Agency	
        Fuel Additive Registration: Fuel Ethanol Per 40

        CFR 79.23

        Permit No. 249820001

        (New permit number to reflect assignment to Pacific

        Holding)

	5.	U.S. Environmental Protection Agency	
        Renewable Fuel Standard Program

        Company ID: 3697

        (New permit number to reflect assignment to Pacific

        Holding)

	Pacific Ethanol Madera LLC
	 	Name of Counterparty	Title
	1.	—	Fourth Amended and Restated Limited Liability Company Operating Agreement of Pacific Ethanol Madera LLC
	2.	California State Board of Equalization	Seller’s Permit SR KHO 100-910312
	3.	Comerica Bank	Letter Agreement Regarding Interest Rate Cap Ref. No. CAP0230
	4.	Comerica Bank	Letter Agreement Regarding Interest Rate Cap Ref. No. CAP0229
				 

 

1 Each document listed on this Schedule 5.11(i) marked
with an asterisk is an Affiliated Project Document.

 

    	1

    	 

    
 

	5.	Delta-T Corporation	License of Technology Between Delta-T Corporation and Pacific Ethanol Madera LLC
	6.	Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau	Alcohol Fuel Producers Permit AFP-CA-15046
	7.	Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau	
        Distilled Spirits Bond

        (Surety: International Fidelity Insurance Company)

        Bond No.: 0427939

	8.	Design Space Modular Buildings, Inc.	Lease Agreements
	9.	Fred Vance & Associates LLC	Letter Agreement for Real and Business Personal Property Tax Consulting
	10.	IRS	Producer of alcohol 05-CA-2007-004345-AF
	11.	Madera County Department of Agriculture	Pesticide application permit for premises weed control (Note: Employee, Bacilio Ochoa, holds the Private Applicator Certificate as the person authorized to apply pesticides) 27-012339/2090110
	12.	Madera County Environmental Health Department	Domestic Water Supply Permit 2000938
	13.	
        Pacific Ethanol Imperial,

        LLC and 13 Tons, LLC
	*Equipment Lease Agreement
	14.	Pacific Holding, Boardman, Burley, Stockton, and Pacific Ethanol	*Asset Management Agreement
	15.	Pacific Holding, Boardman, Burley, Stockton, and Pacific Ethanol	*Asset Management Agreement Consent
	16.	PPM Energy, Inc. (a.k.a. Iberdrola Renewables)	Base Contract for Sale and Purchase of Natural Gas
	17.	Regional Water Quality Control Board	Industrial Stormwater Discharge 5F201019914
	18.	San Joaquin Valley APCD	
        Air Permit to Operate (PTO)

        C-4261

	19.	San Joaquin Valley APCD	
        Grain Receiving PTO

        C-4261-29-0

	20.	San Joaquin Valley APCD	Scalping PTO C-4261-30-0
	21.	San Joaquin Valley APCD	
        Grain Grinding (Hammermill) PTO

        C-4261-31-0

	22.	San Joaquin Valley APCD	
        Flaked Grain Storage PTO

        C-4261-32-0

 

 

    	2

    	 

    
 

	23.	San Joaquin Valley APCD	
        Flaked Grain Loadout PTO

        C-4261-33-0

	24.	San Joaquin Valley APCD	
        Ethanol Hammermill #1 PTO

        C-4261-34-0

	25.	San Joaquin Valley APCD	
        Ethanol Hammermill #2 PTO

        C-4261-35-0

	26.	San Joaquin Valley APCD	
        Slurry Tank PTO

        C-4261-36-2

	27.	San Joaquin Valley APCD	
        Yeast Prop Tank PTO

        C-4261-37-3

	28.	San Joaquin Valley APCD	
        Dormant Emission Unit PTO (yeast tank)

        C-4261-37-5

	29.	San Joaquin Valley APCD	
        Liquefaction Tank PTO

        C-4261-38-3

	30.	San Joaquin Valley APCD	
        Fermentation Tanks PTO

        C-4261-39-3

	31.	San Joaquin Valley APCD	
        Beerwell PTO

        C-4261-40-3

	32.	San Joaquin Valley APCD	
        Distillation Process PTO

        C-4261-41-2

	33.	San Joaquin Valley APCD	
        Process Condensate Tank PTO

        C-4261-42-2

	34.	San Joaquin Valley APCD	
        Wetcake Process PTO

        C-4261-43-2

	35.	San Joaquin Valley APCD	
        Wetcake Loadout PTO

        C-4261-44-0

	36.	San Joaquin Valley APCD	
        Ethanol day tank #1 PTO

        C-4261-45-1

	37.	San Joaquin Valley APCD	
        Ethanol day tank #2 PTO

        C-4261-46-1

	38.	San Joaquin Valley APCD	
        Final storage tank #1 PTO

        C-4261-47-1

	39.	San Joaquin Valley APCD	
        E85 or Offspec tank PTO

        C-4261-48-1

	40.	San Joaquin Valley APCD	
        Ethanol Loading Rack PTO

        C-4261-49-3

	41.	San Joaquin Valley APCD	
        Dormant Emission Unit PTO (loading rack)

        C-4261-49-4

 

 

    	3

    	 

    

 

 

	42.	San Joaquin Valley APCD	
        Boiler #1 PTO

        C-4261-50-0

	43.	San Joaquin Valley APCD	
        Boiler #2 PTO

        C-4261-51-0

	44.	San Joaquin Valley APCD	
        Emergency fire water pump PTO

        C-4261-53-0

	45.	San Joaquin Valley APCD	
        Cooling tower PTO

        C-4261-54-0

	46.	San Joaquin Valley APCD	
        Denaturant tank (authority to construct)

        C-4261-55-0

	47.	San Joaquin Valley APCD	
        Final storage tank #2 (authority to construct)

        C-4261-56-0

	48.	San Joaquin Valley APCD	
        Ethanol Hammermill #3 PTO

        C-4261-57-0

	49.	San Joaquin Valley APCD	
        Lime silo (authority to construct)

        C-4261-58-0

	50.	State of California Department of Food and Agriculture	
        Commercial Feed License

        15625

	51.	US Environmental Protection Agency	
        Renewable Fuel Standard Program

        Company ID: 3697

        (New permit number assigned to Pacific Holdings.

        Also applies to Madera)

        Facility ID: 70061

	Pacific Ethanol Magic Valley, LLC
	 	Name of Counterparty	Title
	1.	—	Amended and Restated Limited Liability Company Operating Agreement of Pacific Ethanol Magic Valley, LLC
	2.	American Railcar Leasing LLC	Master Service Contract
	3.	American Railcar Leasing LLC	Rider to Master Service Contract
	4.	City of Burley	Municipal Water and Sewer Services Contract
	5.	City of Burley	
        Wastewater permit

        2008-01

 

 

    	4

    	 

    

 

	6.	City of Burley	Wastewater permit addendum #1 
 2008-01-1
	7.	Delta-T Corporation	Engineering, Procurement and Technology License Agreement for Plant No. 5
	8.	Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau	
        Alcohol Fuel Producers Permit

        AFP-ID-15010

	9.	Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau	
        Distilled Spirits Bond

        (Surety: International Fidelity Insurance Company)

        Bond No.: 0427981

	10.	Fred Vance & Associates LLC	Letter Agreement for Real and Business Personal Property Tax Consulting
	11.	Idaho Department of Environmental Quality	Air Quality Permit to Construct P-2009.0124
	12.	Idaho State Department of Agriculture Bureau of Weight and Measures	Device License (1 scale 1160-7500 lb, 2 scales 100,000 or more lbs and 2 petroleum meters > 150 gpm) H0331108--2010-1
	13.	Intermountain Gas Company	Intermountain Gas Company T-4 Natural Gas Service Contract
	14.	IRS	Producer of alcohol 05-CA-2008-005483-AF
	15.	J.D. Heiskell Holdings, LLC	Grain Storage Agreement
	16.	J.D. Heiskell Holdings, LLC and WestLB AG, New York Branch	
        Consent and Agreement

        (re: Pre-petition Credit Agreement)

	17.	J.D. Heiskell Holdings, LLC and WestLB AG, New York Branch	Consent and Agreement (re: DIP Credit Agreement)
	18.	J.D. Heiskell Holdings, LLC and WestLB AG, New York Branch	Consent and Agreement (re: Agreement)
	19.	
        Pacific Ethanol Imperial,

        LLC and

        13 Tons, LLC
	* Equipment Lease Agreement
	20.	Pacific Ethanol, Inc.	*Assignment and Assumption Agreement (re: Delta-T)
	21.	Pacific Holding, Boardman, Madera, Stockton, and Pacific Ethanol	*Asset Management Agreement
	22.	Pacific Holding, Boardman, Madera, Stockton, and Pacific Ethanol	*Asset Management Agreement Consent

 

 

    	5

    	 

    

 

	23.	Pacific Ag. Products, LLC	*Corn Procurement and Handling Agreement (Burley)
	24.	Pacific Ag. Products, LLC	*Corn Procurement and Handling Agreement Consent (Burley)
	25.	Kinergy Marketing LLC	* Ethanol Marketing Agreement (Burley)
	26.	Kinergy Marketing LLC	*Ethanol Marketing Agreement Consent (Burley)
	27.	Pacific Ag. Products, LLC	*Distillers Grains Marketing Agreement (Burley)
	28.	Pacific Ag. Products, LLC	*Distillers Grains Marketing Agreement Consent (Burley)
	29.	PPM Energy, Inc. (a.k.a. Iberdrola Renewables)	Base Contract for Sale and Purchase of Natural Gas
	30.	PPM Energy, Inc. (a.k.a. Iberdrola Renewables)	Special Provisions to the NAESB Base Contract for Sale and Purchase of Natural Gas
	31.	SimplexGrinnell LP	Inspection Plus Proposal, Service Agreement and Modifications
	32.	State of Idaho Department of Agriculture	
        Commercial Feed Registration

        Company Number 10075 Certificate Number 11104

	33.	State of Idaho Motor Fuel Division	
        Motor Fuel Distributor License

        (Application pending. Not required until July 1,

        2010.)

	34.	State of Idaho Tax Policy Dept	Terminal License
	35.	United Electric Co-op, Inc.	Right of Way and Access Easement
	36.	US Environmental Protection Agency	
        Industrial Stormwater Discharge

        IDR05C066

	37.	US Environmental Protection Agency	
        Renewable Fuel Standard Program

        Company ID: 3697

        (New permit number assigned to Pacific Holdings.

        Also applies to Burley.)

        Facility ID: 70291

	Pacific Ethanol Columbia, LLC
	 	Name of Counterparty	Title
	1.	—	Second Amended and Restated Limited Liability Company Agreement of Pacific Ethanol Columbia, LLC

 

 

    	6

    	 

    

 

	2.	Delta-T Corporation	Engineering, Procurement and Technology License Agreement
	3.	Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau	
        Alcohol Fuel Producers Permit

        AFP-OR-15020

	4.	Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau	
        Distilled Spirits Bond

        (Surety: International Fidelity Insurance Company)

        Bond No.: 0427965

	5.	Fred Vance & Associates LLC	Letter Agreement for Real and Business Personal Property Tax Consulting
	6.	IRS	
        Producer of alcohol

        05-CA-2007-004456-AF

	7.	Morrow County, Oregon	Enterprise Zone Abatement Agreement
	8.	Oregon Department of Agriculture	
        Commercial Feed Registration

        AG-R0184937FEED

	9.	Oregon Department of Environmental Quality	
        Air Contaminant Discharge Permit

        25-0006

	10.	Oregon Department of Environmental Quality	
        Industrial Storm water Discharge

        1200-Z

	11.	Oregon Energy Facility Siting Council	Energy Facility Site Certificate
	12.	
        Pacific Ethanol Imperial,

        LLC and

        13 Tons, LLC
	*Equipment Lease Agreement
	13.	Pacific Holding, Burley, Madera, Stockton, and Pacific Ethanol	*Asset Management Agreement
	14.	Pacific Holding, Burley, Madera, Stockton, and Pacific Ethanol	*Asset Management Agreement Consent
	15.	Pacific Ag. Products, LLC	*Corn Procurement and Handling Agreement (Boardman)
	16.	Pacific Ag. Products, LLC	*Corn Procurement and Handling Agreement Consent (Boardman)
	17.	Kinergy Marketing LLC	*Ethanol Marketing Agreement (Boardman)
	18.	Kinergy Marketing LLC	*Ethanol Marketing Agreement Consent (Boardman)
	19.	Pacific Ag. Products, LLC	*Distillers Grains Marketing Agreement (Boardman)

 

    	7

    	 

    

 

 

	20.	Pacific Ag. Products, LLC	*Distillers Grains Marketing Agreement Consent (Boardman)
	21.	Harris Feeding Company	Grain Storage Agreement
	22.	Harris Feeding Company	Grain Storage Agreement Consent
	23.	Port of Morrow	Easement for Roadway Purposes
	24.	Port of Morrow	Pipeline Easement Agreement
	25.	Port of Morrow	Port of Morrow Lease
	26.	PPM Energy, Inc. (a.k.a. Iberdrola Renewables)	Base Contract for Sale and Purchase of Natural Gas
	27.	State of Oregon acting through the Oregon Department of Energy	Agreement
	28.	Tidewater Barge Lines, Inc. and Tidewater Terminal, Co.	Environmental Services Agreement
	29.	Tidewater Barge Lines, Inc. and Tidewater Terminal, Co.	Amended and Restated Transportation and Dock Services Agreement
	30.	Tidewater Barge Lines, Inc., Tidewater Terminal, Co., and U.S. Bank National Association	Deposit Escrow Agreement
	31.	Umatilla Electric Cooperative	Agreement for Electric Service and Purchase of Power
	32.	Union Pacific Railroad Company and Port of Morrow	Agreement and Consent to Joint Use of Track
	33.	US Environmental Protection Agency	
        Renewable Fuel Standard Program

        Company ID: 3697

        (New permit number assigned to Pacific Holdings.

        Also applies to Boardman)

        Facility ID: 70060

	Pacific Ethanol Stockton LLC
	 	Name of Counterparty	Title
	1.	—	Third Amended and Restated Limited Liability Company Operating Agreement of Pacific Ethanol Stockton LLC
	2.	California Department of Food and Agriculture Division of Measurement Standards	Weighmaster License 12403

  

 

    	8

    	 

    

 

	3.	California State Board of Equalization	Seller’s Permit SR KH 101-125910
	4.	City of Stockton	Waste water discharge
	5.	Delta-T Corporation	Engineering, Procurement and Technology License Agreement for Plant No. 3
	6.	Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau	Alcohol Fuel Producers Permit AFP-CA-15084
	7.	Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau	
        Distilled Spirits Bond

        (Surety: Great American Insurance Company)

        Bond No.: 5616288

	8.	Fred Vance & Associates LLC	Letter Agreement for Real and Business Personal Property Tax Consulting
	9.	H.J. Heinz Company, L.P.	Sewer Capacity Credits Purchase Agreement
	10.	Iberdrola Renewables, Inc.	Base Contract for Sale and Purchase of Natural Gas
	11.	IRS	Producer of alcohol 05-CA-2008-006579-AF
	12.	
        Pacific Ethanol Imperial,

        LLC and

        13 Tons, LLC
	*Equipment Lease Agreement
	13.	Pacific Ethanol, Inc.	*Assignment and Assumption Agreement (re: Delta-T)
	14.	Pacific Holding, Boardman, Burley, Madera, and Pacific Ethanol	*Asset Management Agreement
	15.	Pacific Holding, Boardman, Burley, Madera, and Pacific Ethanol	*Asset Management Agreement Consent
	16.	Port of Stockton	First Addendum to Lease (Ordinance No. 218)
	17.	Port of Stockton	Lease by the Stockton Port District to Pacific Ethanol Stockton LLC (Ordinance No. 218)
	18.	Port of Stockton	Letter Agreement (Grading)
	19.	Port of Stockton	Memorandum of Lease
	20.	Port of Stockton	Pipeline Easement Agreement for Term
	21.	Port of Stockton	Rail and Access Easement Agreement and Reservation for Term

 

    	9

    	 

    
 

	22.	Regional Water Quality Control Board	Industrial Stormwater Discharge 5F39I021746
	23.	San Joaquin County Division of Weights and Measures	
        Scales

        By Location: 3028 Navy Drive, Stockton, CA 95206

	24.	San Joaquin Valley APCD	
        Air Permit to Operate (PTO)

        N-7365

	25.	San Joaquin Valley APCD	Grain Receiving PTO N-7365-1-1
	26.	San Joaquin Valley APCD	
        Ethanol Hammermill #1 PTO

        N-7365-2-1

	27.	San Joaquin Valley APCD	
        Ethanol Hammermill #2 PTO

        N-7365-3-1

	28.	San Joaquin Valley APCD	
        Slurry Tank PTO

        N-7365-4-1

	29.	San Joaquin Valley APCD	
        Yeast Prop Tank PTO

        N-7365-5-1

	30.	San Joaquin Valley APCD	
        Dormant Emission Unit PTO (Yeast tank)

        N-7365-5-3

	31.	San Joaquin Valley APCD	
        Liquefaction Tank PTO

        N-7365-6-1

	32.	San Joaquin Valley APCD	
        Fermentation Tanks PTO

        N-7365-7-1

	33.	San Joaquin Valley APCD	
        Beerwell PTO

        N-7365-8-1

	34.	San Joaquin Valley APCD	
        Distillation Process PTO

        N-7365-9-1

	35.	San Joaquin Valley APCD	
        Process Condensate Tank PTO

        N-7365-10-1

	36.	San Joaquin Valley APCD	
        Wetcake Process PTO

        N-7365-11-1

	37.	San Joaquin Valley APCD	
        Wetcake Loadout PTO

        N-7365-12-1

	38.	San Joaquin Valley APCD	
        Offspec tank PTO

        N-7365-13-0

	39.	San Joaquin Valley APCD	
        Ethanol day tank #1 PTO

        N-7365-14-0

	40.	San Joaquin Valley APCD	
        Ethanol day tank #2 PTO

        N-7365-15-0

 

 

    	10

    	 

    
 

	41.	San Joaquin Valley APCD	
        Final storage tank #1 PTO

        N-7365-16-0

	42.	San Joaquin Valley APCD	
        Final storage tank #2

        N-7365-17-0

	43.	San Joaquin Valley APCD	
        Ethanol Loading Rack PTO

        N-7365-19-1

	44.	San Joaquin Valley APCD	
        Dormant Emission Unit PTO (loading rack)

        N-7365-19-2

	45.	San Joaquin Valley APCD	
        Boiler #1 PTO

        N-7365-20-1

	46.	San Joaquin Valley APCD	
        Dormant Emission Unit PTO (Boiler #1)

        N-7365-20-2

	47.	San Joaquin Valley APCD	
        Boiler #2 PTO

        N-7365-21-1

	48.	San Joaquin Valley APCD	
        Dormant Emission Unit PTO (Boiler #2)

        N-7365-21-2

	49.	San Joaquin Valley APCD	
        Boiler #3 PTO

        N-7365-22-1

	50.	San Joaquin Valley APCD	
        Dormant Emission Unit PTO (Boiler #3)

        N-7365-22-2

	51.	San Joaquin Valley APCD	
        Cooling tower PTO

        N-7365-23-1

	52.	San Joaquin Valley APCD	
        Emergency fire water pump #1

        N-7365-29-0

	53.	San Joaquin Valley APCD	
        Emergency fire water pump #2

        N-7365-30-0

	54.	San Joaquin Valley APCD	
        Denaturant tank (authority to construct)

        N-7365-31-0

	55.	State of California Department of Food and Agriculture	Commercial Feed License 15625-1
	56.	US Environmental Protection Agency	
        Renewable Fuel Standard Program

        Company ID: 3697

        (New permit number assigned to Pacific Holdings.

        Also applies to Stockton)

        Facility ID: 70319

 

    	11

    	 

    
 

Schedule 5.11(ii)

to Credit Agreement

CONTRACTS

As of Closing Date

	Counterparty(ies)	PE Contracting Entity	Document Type	Subject Matter / Notes	Title	Date of Execution
	Wells Fargo Bank, N.A., et al	PEHC = Pacific Ethanol Holding Co. LLC (DE)	Corporate Agreement	First Amendment to the Amended and Restated Credit Agreement.	First Amendment to Amended and Restated Credit Agreement	7/13/2012
	International Fidelity Insurance Company	PEHC = Pacific Ethanol Holding Co. LLC (DE)	Escrow Agreement	This agreement is signed solely on behalf of the Boardman plant regarding a bond and cash collateral in the amount of $863,200.00.	Cash Collateral Escrow Agreement	6/13/2012
	Kinergy Marketing, LLC	PEHC = Pacific Ethanol Holding Co. LLC (DE)	Liquidity Agreement	In order to enhance the liquidity available to the plants (Stockton, Columbia and Magic Valley), PAP and Kinergy have offered to make papyments in advance of the dates they are due under their respective Marketing Agreements and Pacific Ethanol Holding Co will receive such accelerated payments in an aggregate amount of approximately $3 million.	Liquidity Agreement	6/7/2012
	Wells Fargo Bank, N.A., et al	PEHC = Pacific Ethanol Holding Co. LLC (DE)	Corporate Agreement	Amends the original Credit Agreement regarding Tranche A-1 Term Loans.	Amended and Restated Credit Agreement	8/1/2011

 

 

 

 

    	12

    	 

    

 

	International Fidelity Insurance Company	PEHC = Pacific Ethanol Holding Co. LLC (DE)	Indemnity Agreement	This general indemnity agreement is made and entered into by Pacific Ethanol Holding Co., LLC; any other entitiy or individual for whom Pacific Ethanol Holding Co., LLC requests a bond or bonds, and New PE Holdco, LLC, and International Fidelity Insurance Company and Allegheny Casualty Company.	Agreement of Indemnity - Commercial Bond (II)	5/18/2011
	WestLB AG, New York Branch, et al	PEHC = Pacific Ethanol Holding Co. LLC (DE)	Finance Agreement	Second Amendment to the original Credit Agreement dated June 25, 2010 and the Amendment to Credit Agreement dated October 15, 2010.  This amendment deletes and replaces certain articles in the original Credit Agreement.	Second Amendment to Credit Agreement	3/30/2011
	WestLB AG, New York Branch, et al	PEHC = Pacific Ethanol Holding Co. LLC (DE)	Finance Agreement	Amendment to Credit Agreement dated June 25, 2010.	Amendment to Credit Agreement	10/15/2010
	WestLB AG, New York Branch, et al	PEHC = Pacific Ethanol Holding Co. LLC (DE)	Finance Agreement	Credit Agreement where Lenders are willing to make the Exit Facility available to the Borrowers subject to certain terms and conditions.  All exhibits and schedules are attached.	Credit Agreement	6/25/2010
	California Alternative Energy and Advanced Transportation Financing Authority	PEM = Pacific Ethanol Madera LLC (DE)	Finance Agreement	The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) will provide financial assistance to PEM for advanced transportation and alternative fuels technologies.	Financial Assistance Agreement	40660

 

 

 

 

    	13

    	 

    
 

	California Energy Commission	PEM = Pacific Ethanol Madera LLC (DE)	Grant Agreement	Alternative & Renewable Fuel & Vehicle Tech-AB 118 (FY 09/10 BCP#2)	Grant Award Number:  ARV-10-029	40592
	ICM, Inc.	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Consent and Waiver	Consent and waiver by Wells Fargo Bank to ICM, Inc.'s Purchase Money Security Interest (PMSI) in ICM equipment and in certain proceeds from PEMV's sale of corn oil produced using the ICM equipment at PEMV.	Consent and Waiver	6/21/2012
	ICM, Inc.	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Purchase Agreement	PEMV to purchase from ICM certain equipment known as the AOS (Advanced Oil System) with patent-pending Selected Solids Separation (SSS) specified in the Plans and Specifications on Exhibit A of this Agreement.  ICM shall install the Equipment at the Burley plant (per Exhibit B).	Advanced Oil System with Patent-Pending Selected Solids Separation Purchase and Installation Agreement	6/20/2012
	ICM, Inc.	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	License Agreement	ICM grants to PEMV limited right and license to use the proprietary property for the separation of corn oil from the emulsion concentrate derived from the thin stillage solely at the PEMV plant.	License Agreement	6/20/2012
	Intermountain Gas Company	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Commodity Agreement	Natural gas contract for a Maximum Daily Firm Quantity (MDFQ) of 50,000 therms per day during the Agreement period.  (See Record No. 743 for previous agreement.)	T-4 Firm Distribution Only Transportation Service	12/29/2011

 

 

 

 

    	14

    	 

    
 

 

	J.D. Heiskell Holdings, LLC	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Amendment	Second amendment to the grain storage agreement.  NOTE:  Amendment originally drafted dated 11/17/11 but then extended to 12/10/11. 	Amendment No. 2 to Grain Storage Agreement	12/10/2011
	J.D. Heiskell Holdings, LLC	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Guarantee Agreement	This Guaranty is signed in conjunction with the Second amendment to the grain storage agreement (see Record No. 1908).	Guaranty of PEMV Obligations to Heiskell	11/2/2011
	Kinergy Marketing, LLC	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Services Agreement	Kinergy to provide marketing services for denatured fuel ethanol production at the Magic Valley facility	Amended and Restated Ethanol Marketing Agreement (Burley Project)	6/30/2011
	Pacific Ag. Products, LLC	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Services Agreement	This amended and restated agreement will allow PAP to provide marketing services for Distillers Grains from the denatured fuel ethanol production facilities at Magic Valley.	Amended and Restated Distillers Grains Marketing Agreement (Burley Project)	6/30/2011
	Pacific Ag. Products, LLC	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Commodity Agreement	This amended and restated agreement will allow PAP to provide procurement and handling of grain services for the denatured fuel ethanol production facility at Burley, Idaho.	Amended and Restated Corn Procurement and Handling Agreement	6/30/2011
	American Railcar Leasing LLC	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Services Agreement	Contract #MSC 4-8875, Rider 1 dated December 7, 2009 is renewed for an additional period of six (6) months at a rental rate of $725 per car per month, commencing July 1, 2011.  (This renewal agreement replaces Record #1730, which commenced on January 1, 2011 and expired June 30, 2011.)	Renewal of Car Service Contract No. MSC 4-8875, Rider 1	6/22/2011

 

 

 

  

    	15

    	 

    

 

  

	American Railcar Leasing LLC	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Services Agreement	Contract #MSC 4-8875, Rider 1 dated December 7, 2009 is renewed for an additional period of six (6) months at a rental rate of $425 per car per month, commencing January 1, 2011.  (This renewal agreement replaces Record #1713, which commenced on July 1, 2010 and expired December 31, 2010.)	Renewal of Car Service Contract No. MSC 4-8875, Rider 1	12/16/2010
	J.D. Heiskell Holdings, LLC	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Amendment	First amendment to the grain storage agreement regarding prepayment by PEMV.	Amendment No. 1 to Grain Storage Agreement	12/10/2010
	American Railcar Leasing LLC	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Services Agreement	Contract #MSC 4-8875, Rider 1 dated December 7, 2009 is renewed for an additional period of six (6) months at a rental rate of $425 per car per month.  (See also Record #1546 for Rider 1.)	Renewal of Car Service Contract	9/14/2010
	Kinergy Marketing, LLC	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Services Agreement	Kinergy to provide marketing services for denatured fuel ethanol.	Ethanol Marketing Agreement (Burley Project)	6/29/2010
	Pacific Ag. Products, LLC	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Commodity Agreement	PAP to provide grain services.	Corn Procurement and Handling Agreement	6/29/2010
	Pacific Ag. Products, LLC	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Services Agreement	PAP to provide marketing services.	Distillers Grains Marketing Agreement (Burley Project)	6/29/2010

 

 

  

 

    	16

    	 

    

 

	International Fidelity Insurance Company	PECOL = Pacific Ethanol Columbia, LLC (DE)	Bond	PECOL (the Principal) and International Fidelity Insurance Company (the Surety) are held and firmly bound unto the State of Oregon, acting by and through the Energy Facility Siting Council (the Obligee) in the penal sum of $863,200.00 (Bond No. 0590288) for the Boardman plant.	Site Certificate Bond No. 0590288	6/14/2012
	Mascoma Corporation	PECOL = Pacific Ethanol Columbia, LLC (DE)	Services Agreement	Mascoma has engaged Lallemand to manufacture, market and distribute its Mascoma Grain Technology yeast product at the Columbia facility.	Supply and Service Agreement	3/9/2012
	CHS, Inc.	PECOL = Pacific Ethanol Columbia, LLC (DE)	Consent and Agreement	CHS, Inc. consents to the assignment to Wells Fargo Bank, N.A., of all of the Borrower's right, title and interest in, to and under the Assigned Agreement pursuant to the Security Agreement.	Consent and Agreement	2/24/2012
	CHS, Inc.	PECOL = Pacific Ethanol Columbia, LLC (DE)	Storage Agreement	CHS to store and maintain corn (grain) at the grain handling and storage facility located at the PECOL ethanol facility located in the Port of Boardman, Oregon.  CHS also agrees to sell grain to PECOL.	Grain Supply Agreement	2/24/2012
	Tidewater Terminal Co.	PECOL = Pacific Ethanol Columbia, LLC (DE)	Requisition	This requisition represents a request for disbursement of funds in the amount of $150,000.00 pursuant to Schedule II of the Deposit Escrow Agreement, dated September 1, 2009.	Requisition of Request for Disbursement of Funds	9/9/2011
	WestLB AG, New York Branch, et al	PECOL = Pacific Ethanol Columbia, LLC (DE)	Amendment	This Amendment No. 2 to Irrevocable Standby Letter of Credit No. 22703101566WLB increases the amount of the LOC by US $8,848.00 to US $844,320.00.	Amendment No. 2 to Irrevocable Standby Letter of Credit No. 22703101566WLB	8/12/2011

 

 

 

 

    	17

    	 

    
 

	Pacific Ag. Products, LLC	PECOL = Pacific Ethanol Columbia, LLC (DE)	Commodity Agreement	PAP to provide grain services for denatured fuel ethanol production facilities.	Amended and Restated Corn Procurement and Handling Agreement	6/30/2011
	Pacific Ag. Products, LLC	PECOL = Pacific Ethanol Columbia, LLC (DE)	Amendment	This is the first amendment to the Distillers Grains Marketing Agreement for the Boardman plant.	Amended and Restated Distillers Grains Marketing Agreement (Boardman Project)	6/30/2011
	Kinergy Marketing, LLC	PECOL = Pacific Ethanol Columbia, LLC (DE)	Amendment	First amendment to the Ethanol Marketing Agreement for the Boardman plant.	Amended and Restated Ethanol Marketing Agreement (Boardman Project)	6/30/2011
	WestLB AG, New York Branch, et al	PECOL = Pacific Ethanol Columbia, LLC (DE)	Amendment	Irrevocable Standby Letter of Credit No. 22703101566WLB extending the LOC validity to June 25, 2012.	Amendment No. 1 to Irrevocable Standby Letter of Credit No. 22703101566WLB	6/22/2011
	Tidewater Barge Lines, Inc.	PECOL = Pacific Ethanol Columbia, LLC (DE)	Rate Schedule	Local rates, rules and regulations governing the transportation of bulk fertilizer and petroleum products via barge.  (Signatures not required.)  See also Exhibit Attachment 1 for letter dated March 1, 2011 of announcement of rate increase.	Rate Schedule No. 800-A	3/14/2011
	Tidewater Terminal Co.	PECOL = Pacific Ethanol Columbia, LLC (DE)	Amendment	This is an amendment and restatement of the Transportation and Dock Services Agreement dated September 1, 2009.  Tidewater waives the Dock Fee due and owing from PE Columbia on January 1, February 1, and March 1, 2011.  PE Columbia will resume paying the Dock Fee on or before April 1, 2011.	Amended and Restated Transportation and Dock Services Agreement	3/7/2011

 

 

 

 

 

 

 

  

    	18

    	 

    

 

 

	Tidewater Terminal Co.	PECOL = Pacific Ethanol Columbia, LLC (DE)	Amendment	This amendment to the Deposit Escrow Agreement (dated February 15, 2007) names John T. MIller as the sole officer entitled to sign or give instructions to the bank on behalf of PECOL.	Amendment to Deposit Escrow Agreement	9/14/2010
	Tidewater Terminal Co.	PECOL = Pacific Ethanol Columbia, LLC (DE)	Requisition	This requisition represents a request for disbursement of funds in the amount of $150,000.00 pursuant to Schedule II of the Deposit Escrow Agreement, dated September 1, 2009.	Requisition of Request for Disbursement of Funds	9/8/2010
	Kinergy Marketing, LLC	PECOL = Pacific Ethanol Columbia, LLC (DE)	Services Agreement	Kinergy to provide marketing services for denatured fuel ethanol.	Ethanol Marketing Agreement (Boardman Project)	6/29/2010
	Pacific Ag. Products, LLC	PECOL = Pacific Ethanol Columbia, LLC (DE)	Commodity Agreement	PAP to provide grain services.	Corn Procurement and Handling Agreement	6/29/2010
	Pacific Ag. Products, LLC	PECOL = Pacific Ethanol Columbia, LLC (DE)	Services Agreement	PAP to provide marketing services for Distillers Grains from the denatured fuel ethanol production facilities at the Boardman plant.	Distillers Grains Marketing Agreement (Boardman Project)	6/29/2010
	WestLB AG, New York Branch, et al	PECOL = Pacific Ethanol Columbia, LLC (DE)	Finance Agreement	Irrevocable Standby Letter of Credit No. 22703101566WLB in the amount of $835,472 in connection with the Site Certificate for the Columbia Ethanol Project, in favor of the State of Oregon, acting by and through The Energy Facility Siting Council, Oregon Department of Energy.	Irrevocable Standby Letter of Credit No. 22703101566WLB	6/28/2010

 

 

 

 

    	19

    	 

    
 

 

	J.D. Heiskell Holdings, LLC	PES = Pacific Ethanol Stockton, LLC (DE)	Storage Agreement	First amendment to the grain storage agreement.  NOTE:  Amendment originally drafted dated 11/17/11 but then extended to 12/10.11.	Amendment No. 1 to Grain Storage Agreement	12/10/2011
	J.D. Heiskell Holdings, LLC	PES = Pacific Ethanol Stockton, LLC (DE)	Guarantee Agreement	This Guaranty is signed in conjunction with the First amendment to the grain storage agreement (see Record No. 1909).	Guaranty of PES Obligations to Heiskell	11/2/2011
	Pacific Ag. Products, LLC	PES = Pacific Ethanol Stockton, LLC (DE)	Services Agreement	Amended and Restated Agreement for PAP to provide grain services for the denatured fuel ethanol production facility located at Stockton, CA.	Amended and Restated Corn Procurement and Handling Agreement	6/30/2011
	Pacific Ag. Products, LLC	PES = Pacific Ethanol Stockton, LLC (DE)	Services Agreement	Amended and Restated Agreement for PAP to provide marketing services for Distillers Grains from the denatured fuel ethanol production facility in Stockton, CA.	Amended and Restated Distillers Grains Marketing Agreement (Stockton Project)	6/30/2011
	Kinergy Marketing, LLC	PES = Pacific Ethanol Stockton, LLC (DE)	Services Agreement	Kinergy to provide marketing services for denatured fuel ethanol production at the Stockton facility	Amended and Restated Ethanol Marketing Agreement (Stockton)	6/30/2011
	J.D. Heiskell Holdings, LLC	PES = Pacific Ethanol Stockton, LLC (DE)	Consent and Agreement	J.D. Heiskell consents to the assignment to WestLB AG, New York Branch, all of PES' right, title and interest in, to and under the Assigned Agreement pursuant to the Security Agreement and acknowledges the right of WestLB in the exercise of their rights and remedies under the Security Agreement.	Consent and Agreement	1/14/2011
	California Energy Commission	PES = Pacific Ethanol Stockton, LLC (DE)	Grant Agreement	Alternative & Renewable Fuel & Vehicle Tech-AB 118 (FY 09/10 BCP#2)	Grant Award Number:  ARV-10-030	12/15/2010

 

 

 

    	20

    	 

    

 

	J.D. Heiskell Holdings, LLC	PES = Pacific Ethanol Stockton, LLC (DE)	Storage Agreement	J.D. Heiskell Holdings, LLC is a California limited liability company doing business as J.D. Heiskell & Company.  Heiskell will store and maintain grain at the grain handling and storage facility located in Stockton, California in order to provide for the purchase and sale of the grain from the facility to third parties and to PES.	Grain Storage Agreement	12/10/2010
	Pacific Gas and Electric Company	PES = Pacific Ethanol Stockton, LLC (DE)	Licenses and Registration	Nomination by PES for BP Energy to be our natural gas scheduling and marketing agent with PG&E for delivery of natural gas to the Stockton plant.  (NOTE:  This replaces Record #1246.)	Authorization to Revise Nominating Marketer on Exhibits C and D of Form 79-756 - Natural Gas Service Agreement	11/18/2010
	Pacific Gas and Electric Company	PES = Pacific Ethanol Stockton, LLC (DE)	Licenses and Registration	Nomination by PES for BP Energy to be our balancing agent with PG&E.  Note that the document labelled "Exhibit B" (last page of this 3-page document) terminates Iberdrola, the former balancing agent, as of November 30, 2010.  See also Record #1711 for the nomination of BP to be our natural gas scheduling and marketing agent with PG&E.	Customer Balancing Agent Service Authorization	11/17/2010
	BP Energy Company	PES = Pacific Ethanol Stockton, LLC (DE)	Confirmation	This Transaction Confirmation #6929691 confirms the terms of the transaction between the parties and is subject to the terms and conditions of the Base Contract dated 11/01/2010.	Physical Gas Transaction Confirmation for Immediate Delivery - BP (NUCLEUS) ID:5542938	11/15/2010

 

 

 

 

    	21

    	 

    

 

	Pacific Ag. Products, LLC	PES = Pacific Ethanol Stockton, LLC (DE)	Services Agreement	PAP to provide services for Distillers Grains from denatured fuel ethanol production facilities.	Distillers Grains Marketing Agreement (Stockton Project)	10/15/2010
	Pacific Ag. Products, LLC	PES = Pacific Ethanol Stockton, LLC (DE)	Services Agreement	PAP to provide grain services for denatured fuel ethanol production facilities.	Corn Procurement and Handling Agreement	10/15/2010
	Pacific Ag. Products, LLC	PES = Pacific Ethanol Stockton, LLC (DE)	Consent and Agreement	Consent and agreement re: PAP Distillers Grains Marketing Agreement.	Consent and Agreement	10/15/2010
	Pacific Ag. Products, LLC	PES = Pacific Ethanol Stockton, LLC (DE)	Consent and Agreement	Consent and agreement to PAP corn agreement.	Consent and Agreement	10/15/2010

 

 

 

 

 

 

    	22

    	 

    

 

Schedule 11.12

to Credit Agreement

NOTICE INFORMATION

I.BORROWERS

PACIFIC ETHANOL HOLDING
CO. LLC

400 Capitol Mall, Suite 2060

Sacramento, CA 95814

Attn: Bryon T. McGregor, CFO

Phone:(916) 403-2710

Email:bmcgregor@pacificethanol.net

and

Attn: Christopher W. Wright,
GC

Phone:(916) 403-2130

Email:cwright@pacificethanol.net

PACIFIC ETHANOL MADERA
LLC

400 Capitol Mall, Suite 2060

Sacramento, CA 95814

Attn: Bryon T. McGregor, CFO

Phone:(916) 403-2710

Email:bmcgregor@pacificethanol.net

and

Attn: Christopher W. Wright,
GC

Phone:(916) 403-2130

Email:cwright@pacificethanol.net

PACIFIC ETHANOL COLUMBIA,
LLC

400 Capitol Mall, Suite 2060

Sacramento, CA 95814

Attn: Bryon T. McGregor, CFO

Phone:(916) 403-2710

Email:bmcgregor@pacificethanol.net

and

Attn: Christopher W. Wright,
GC

Phone:(916) 403-2130

Email:cwright@pacificethanol.net

 

    	23

    	 

    

 

PACIFIC ETHANOL STOCKTON
LLC

400 Capitol Mall, Suite 2060

Sacramento, CA 95814

Attn: Bryon T. McGregor, CFO

Phone:(916) 403-2710

Email:bmcgregor@pacificethanol.net

and

Attn: Christopher W. Wright,
GC

Phone:(916) 403-2130

Email:cwright@pacificethanol.net

PACIFIC ETHANOL MAGIC
VALLEY, LLC

400 Capitol Mall, Suite 2060

Sacramento, CA 95814

Attn: Bryon T. McGregor, CFO

Phone:(916) 403-2710

Email:bmcgregor@pacificethanol.net

and

Attn: Christopher W. Wright,
GC

Phone:(916) 403-2130

Email:cwright@pacificethanol.net

II.BORROWERS’
AGENT

PACIFIC ETHANOL HOLDING CO.
LLC

400 Capitol Mall, Suite 2060

Sacramento, CA 95814

Attn: Bryon T. McGregor, CFO

Phone:(916) 403-2710

Email:bmcgregor@pacificethanol.net

and

Attn: Christopher W. Wright,
GC

Phone:(916) 403-2130

Email:cwright@pacificethanol.net

 

    	24

    	 

    

III.ADMINISTRATIVE
AGENT

        WELLS FARGO BANK, N.A.

         Prior
to November 5, 2012:

45 Broadway, 14th Floor

New York, New York 10006

Attention: Michael Pinzon,
CMES-Pacific Ethanol

Telephone: (212) 515-5264

Facsimile: (212) 515-1576

E-mail Address: michael.d.pinzon@wellsfargo.com
and

                             hui.chen@wellsfargo.com

 

         On
and after November 5, 2012:

150 East 42nd Street,
40th Floor 

New York, New York 10017

Attention: Michael Pinzon,
CMES-Pacific Ethanol

Telephone: 917-260-1537

Facsimile:  917-260-1594

E-mail Address: michael.d.pinzon@wellsfargo.com
and

                             hui.chen@wellsfargo.com

 

IV.COLLATERAL AGENT

          WELLS FARGO BANK, N.A.

         Prior to November
5, 2012:

45 Broadway, 14th Floor

New York, New York 10006

Attention: Michael Pinzon,
CMES-Pacific Ethanol

Telephone: (212) 515-5264

Facsimile: (212) 515-1576

E-mail Address: michael.d.pinzon@wellsfargo.com
and

                             hui.chen@wellsfargo.com

 

         On and after November
5, 2012:

150 East 42nd Street,
40th Floor 

New York, New York 10017

Attention: Michael Pinzon,
CMES-Pacific Ethanol

Telephone: 917-260-1537

Facsimile:  917-260-1594

E-mail Address: michael.d.pinzon@wellsfargo.com
and

                             hui.chen@wellsfargo.com

 

    	25

    	 

    

 

V.ACCOUNTS BANK

 

AMARILLO
NATIONAL BANK

Amarillo
National Bank

P.O.
Box 1

Amarillo,
Texas 79105

Attn:
Craig L. Sanders

Telephone806-378-8244

Facsimile806-345-1663

 

    	26

    	 

    
 

  

Exhibit A

 

 

“2011 CEPIP Projections”
means the projections attached to the Original Credit Agreement as Exhibit C.

“Accounts” means all
“accounts” as that term is defined in Section 9-102 of the UCC, now or hereafter owned by any Borrower.

“Accounts Bank” means
Amarillo National Bank, not in its individual capacity, but solely as depositary bank, bank and securities intermediary hereunder,
and each other Person that may, from time to time, be appointed as successor Accounts Bank pursuant to Section 10.06 (Resignation
or Removal of Agent).

“Accounts Property”
means any funds, instruments, securities, financial assets or other assets from time to time held in any of the Project Accounts
or credited thereto or otherwise in possession or control of the Accounts Bank pursuant to this Agreement.

“Additional Project Document”
means each contract, agreement, letter agreement or other instrument to which any Borrower becomes a party after the date of the
Original Credit Agreement, other than any document (a) under which any Borrower (or, in the case of an agreement to which two or
more Borrowers are party, such Borrowers on an aggregate basis) would not reasonably be expected to have obligations or liabilities
in the aggregate in excess of two million Dollars ($2,000,000), or be entitled to receive revenues in the aggregate in excess of
three million Dollars ($3,000,000), in either case in value in any twelve (12) month period, (b) with respect to the purchase or
lease to finance the purchase or lease of enhancements to the Borrowers' production facilities consisting of bolt-on product yield
enhancement equipment or processing and separation equipment for corn oil and corn syrup to the extent permitted under Section
7.02(a)(vi) and Section 7.02(b)(xi), and (c) a termination of which would not reasonably be expected to result in a
Material Adverse Effect; provided, that for the purposes of this definition, purchase orders under existing Project Documents relating
to the sale of Products or the purchase of corn shall not constitute Additional Project Documents.

“Administrative Agent”
means Wells Fargo, in its capacity as administrative agent for the Lenders hereunder, and includes each other Person that may,
from time to time, be appointed as successor Administrative Agent pursuant to Section 10.06 (Resignation or Removal
of Agent).

“Affiliate” of any Person
means any other Person that, directly or indirectly, controls, is controlled by or is under common control with such Person. A
Person shall be deemed to be “controlled by” any other Person if such other Person (a) possesses, directly or indirectly,
power to direct or cause the direction of the management and policies of such Person whether by contract or otherwise or (b) owns
at least ten percent (10%) of the Equity Interests in such Person; provided that clause (b) shall not be taken into account solely
for purposes of determining whether a Person is an Affiliate of a Lender.

“Affiliated Lender”
has the meaning provided in Section 11.03(j)(i).

“Affiliated Project Documents”
means those Project Documents listed in Schedule 5.11 and identified as Affiliate agreements, the DG Offtake Agreement
between Stockton and Pacific Ag Products (and the related Consent), the Ethanol Offtake Agreement between Stockton and Kinergy
(and the related Consent) and the Grain Supply Agreement between Stockton and Pacific Ag Products (and the related Consent).

    	Exhibit A-1

    	 

    

“Agents” means, collectively,
the Administrative Agent, the Collateral Agent and the Accounts Bank.

“Aggregate Term Commitment”
means, (a) with respect to the Tranche A-1 Lenders, twenty five million Dollars ($25,000,000) (as the same may be increased or
reduced in accordance with Section 2.07 (Termination or Reduction of Commitments) and (b) with respect to the
Tranche A-2 Lenders, twenty six million two hundred seventy nine thousand two hundred and two Dollars and forty three cents ($26,279,202.43)
(as the same may be reduced in accordance with Section 2.07 (Termination or Reduction of Commitments).

“Aggregate Revolving Loan Commitment”
means forty million Dollars ($40,000,000), as the same may be reduced in accordance with Section 2.07 (Termination or
Reduction of Commitments).

“Agreement” has the
meaning set forth in the Preamble.

“Ancillary Documents”
means, with respect to each Additional Project Document, the following, each of which shall be in form and substance reasonably
satisfactory to the Administrative Agent and, in the case of items (i), (ii) and (iv), the Collateral Agent:

		(i)	each security instrument and agreement necessary or desirable to grant to the Collateral Agent a perfected Lien (subject only
to Permitted Liens) in such Additional Project Document and all property interests received by any Borrower in connection therewith;

		(ii)	all recorded UCC financing statements and other filings required to perfect such Lien;

		(iii)	if reasonably requested by the Administrative Agent, opinions of counsel for the Borrowers addressing such matters relating
to such document, each applicable Security Document and Lien as the Administrative Agent may reasonably request;

		(iv)	if reasonably requested by the Administrative Agent, the Borrowers shall use their best efforts to obtain a Consent with respect
to such Additional Project Document from each Project Party thereto, and shall use their best efforts to obtain an opinion of counsel
to such Project Party addressing matters relating to such Additional Project Document and such Consent as the Administrative Agent
may reasonably request; provided, that if such Consent cannot be obtained, the relevant Additional Project Document shall be freely
assignable by the applicable Borrower(s) to the Collateral Agent and to a transferee in foreclosure, in each such case without
any consent or approval of such Project Party; and

		(v)	if reasonably requested by the Administrative Agent, certified evidence of the authorization of such Additional Project Document
by each Borrower that is a party thereto.

    	Exhibit A-2

    	 

    
	

 

“Applicable Margin”
means ten percent (10%) per annum.

“Approved Fund” means,
with respect to any Lender that is a fund that invests in commercial loans, any other fund that invests in commercial loans and
is managed or advised by the same investment advisor as such Lender or by an Affiliate of such investment advisor.

“Asset Management Agreement”
means the Second Amended and Restated Asset Management Agreement dated as of June 30, 2011 among Pacific Ethanol and the Borrowers.

“Associated Member”
means a member under the PE Newco LLC Agreement that is an Affiliate of a Lender.

“Auditors” means those
nationally recognized independent auditors selected by the Borrowers and approved by the Administrative Agent, acting reasonably.

“Authorized Officer”
means (i) with respect to any Person that is a corporation, the president, any vice president, the treasurer or the chief financial
officer of such Person, (ii) with respect to any Person that is a partnership, an Authorized Officer of a general partner of such
Person, (iii) with respect to any Person that is a limited liability company, any manager, the president, any vice president, the
treasurer, the chief financial officer or the chief operating officer of such Person, or an Authorized Officer of the managing
member of such Person, or (iv) with respect to any Person, such other representative of such Person that is approved by the Administrative
Agent in writing who, in each such case, has been named as an Authorized Officer on a certificate of incumbency of such Person
delivered to the Administrative Agent and the Accounts Bank on or after the date of the Original Credit Agreement.

“Bankruptcy Code” means
Title 11 of the United States Code entitled “Bankruptcy” or any successor statute, and all rules promulgated thereunder.

“Base Rate” means, for
any day, a fluctuating rate per annum equal to the highest of (i) the Federal Funds Effective Rate plus one-half of one percent
(0.50%), (ii) the rate of interest in effect for such day as publicly announced from time to time by Wells Fargo as its “prime
rate” and (iii) one month LIBOR plus one percent (1%). The “prime rate” is a rate set by Wells Fargo based upon
various factors including Wells Fargo’s costs and desired return, general economic conditions and other factors, and is used
as a reference point for pricing some loans, which may be priced at, above, or below such announced rate. Any change in such rate
announced by Wells Fargo shall take effect at the opening of business on the day specified in the public announcement of such change.

“Base Rate Loan” means
any Loan bearing interest at a rate determined by reference to the Base Rate and the provisions of Article II (Commitments
and Funding).

    	Exhibit A-3

    	 

    

“Blocked Account Agreement”
means an agreement, in a form reasonably satisfactory to the Administrative Agent, the Senior Collateral Agent and the Collateral
Agent, with respect to a Local Account among the Borrower in whose name such Local Account has been opened, the bank with whom
such Local Account was opened, the Collateral Agent and the Senior Collateral Agent.

“Boardman” has the meaning
set forth in the Preamble.

“Boardman CHS GSA” means
the Grain Supply Agreement dated as of February 24, 2012 between CHS, Inc., a Minnesota cooperative corporation, and Boardman.

“Boardman Deed of Trust”
means the Leasehold Trust Deed, Security Agreement, Financing Agreement, Fixture Filing and Assignment of Leases, Rents and Security
Deposits, in form and substance reasonably satisfactory to the Lenders and the Collateral Agent, dated on or about the date of
the Original Credit Agreement, made by Boardman to Stewart Title Guaranty Company, as trustee, for the benefit of the Collateral
Agent, as beneficiary.

“Boardman Insurance and Condemnation
Proceeds Account” has the meaning provided in Section 8.01(f) (Establishment of Project Accounts).

“Boardman Lease” means
the lease dated April 20, 2006 between the Port of Morrow and Boardman.

“Boardman LLC Agreement”
means the Second Amended and Restated Limited Liability Company Operating Agreement of Boardman dated as of June 29, 2010.

“Boardman Plant” means
the ethanol production facility located at Boardman, Oregon, with a capacity of approximately thirty-five (35) million gallons-per-year
of denatured ethanol, including the Site on which such facility is located, and all buildings, structures, improvements, easements
and other property related thereto.

“Boardman Pledge Agreement”
means the Pledge and Security Agreement, in form and substance reasonably satisfactory to the Lenders and the Collateral Agent,
dated on or about the date of the Original Credit Agreement, among Pacific Holding, Boardman and the Collateral Agent, pursuant
to which Pacific Holding pledges one hundred percent (100%) of the Equity Interests in Boardman to the Collateral Agent.

“Boardman Security Agreement”
means the Assignment and Security Agreement, in form and substance reasonably satisfactory to the Lenders and the Collateral Agent,
dated on or about the date of the Original Credit Agreement, made by Boardman in favor of the Collateral Agent.

“Boardman Subordination Agreement”
means that certain Subordination Agreement, dated as of the Restatement Effective Date, by and among Boardman, the Senior Collateral
Agent, and Collateral Agent.

    	Exhibit A-4

    	 

    

“Borrower LLC Agreements”
means, collectively, the Pacific Holding LLC Agreement, the Madera LLC Agreement, the Boardman LLC Agreement, the Stockton LLC
Agreement and the Burley LLC Agreement.

“Borrowers” has the
meaning set forth in the Preamble.

“Borrowers’ Agent”
means Pacific Holding, in its capacity as agent for the Borrowers in accordance with Section 11.05 (Borrowers’
Agent).

“Budget” has the meaning
set forth in Section 7.01 (k) (Affirmative Covenants- Budget).

“Budget Period” means
the period covered by any Budget.

“Burley” has the meaning
set forth in the Preamble.

“Burley Deed of Trust”
means the Deed of Trust, Security Agreement, Financing Statement, Fixture Filing and Assignment of Leases, Rents and Security Deposits,
in form and substance reasonably satisfactory to the Lenders and the Collateral Agent, dated on or about the date of the Original
Credit Agreement, made by Burley to Fidelity National Title Company, as trustee, for the benefit of the Collateral Agent, as beneficiary.

“Burley Heiskell GSA”
means the Grain Storage Agreement dated as of December 11, 2009 between Heiskell and Burley, as amended by that certain Amendment
No. 1 to Grain Storage Agreement dated December 10, 2010 and that certain Amendment No. 2 to Grain Storage Agreement dated November
17, 2011.

“Burley Insurance and Condemnation
Proceeds Account” has the meaning provided in Section 8.01(h) (Establishment of Project Accounts).

“Burley LLC Agreement”
means the Amended and Restated Limited Liability Company Operating Agreement of Burley dated as of June 29, 2010.

“Burley Plant” means
the ethanol production facility located at Burley, Idaho, with a capacity of approximately fifty (50) million gallons-per-year
of denatured ethanol, including the Site on which such facility is located, and all buildings, structures, improvements, easements
and other property related thereto.

“Burley Pledge Agreement”
means the Pledge and Security Agreement, in form and substance reasonably satisfactory to the Lenders and the Collateral Agent,
dated on or about the date of the Original Credit Agreement, among Pacific Holding, Burley and the Collateral Agent, pursuant to
which Pacific Holding pledges one hundred percent (100%) of the Equity Interests in Burley to the Collateral Agent.

“Burley Security Agreement”
means the Assignment and Security Agreement, in form and substance reasonably satisfactory to the Lenders and the Collateral Agent,
dated on or about the date of the Original Credit Agreement, made by Burley in favor of the Collateral Agent.

    	Exhibit A-5

    	 

    

“Burley Subordination Agreement”
means that certain Subordination Agreement, dated as of the Restatement Effective Date, by and among Burley, the Senior Collateral
Agent, and Collateral Agent.

“Business Day” means:

		(i)	any day that is neither a Saturday or Sunday nor a day on which commercial banks are authorized or required to be closed in
Sacramento, California, New York, New York or Minneapolis, Minnesota; and

		(ii)	relative to the making, continuing, prepaying or repaying of any Eurodollar Loans, any day on which dealings in Dollars are
carried on in the London interbank market.

“Business Interruption Insurance
Proceeds” means all proceeds of any insurance policies required pursuant to this Agreement or otherwise obtained with
respect to any Borrower, any Plant or the Project relating to business interruption or delayed start-up.

“Capitalized Interest”
shall have the meaning given to such term in Section 3.02 (Interest Payment Dates).

“Capitalized Lease Liabilities”
of any Person means all monetary obligations of such Person under any leasing or similar arrangement that, in accordance with GAAP,
would be classified as capitalized leases on a balance sheet of such Person or otherwise disclosed as such in a note to such balance
sheet and, for purposes of the Financing Documents, the amount of such obligations shall be the capitalized amount thereof, determined
in accordance with GAAP. For the avoidance of doubt, “Capitalized Lease Liabilities” shall not include obligations
or liabilities of any Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use)
real or personal property, or a combination thereof, which obligations would be required to be classified and accounted for as
an operating lease under GAAP as existing on the Closing Date.

“Cash Collateral Agreement”
means the Cash Collateral Escrow Agreement, dated as of June 13, 2012, by and among Pacific Holding, International Fidelity Insurance
Company and Allegheny Casualty Company.

“Cash Equivalents” means:

		(a)	readily marketable direct obligations of the government of the United States or any agency or instrumentality thereof, or obligations
unconditionally guaranteed by the full faith and credit of the government of the United States, in each case maturing within one
(1) year from the date of acquisition thereof;

		(b)	securities issued by any state of the United States of America or any political subdivision of any such state or any public
instrumentality thereof having maturities of not more than one (1) year from the date of acquisition thereof and, at the time of
acquisition, having a rating of AA- or higher from S&P or Aa3 or higher from Moody’s (or, if at any time neither S&P
nor Moody’s shall be rating such obligations, an equivalent rating from another nationally recognized rating service); and

    	Exhibit A-6

    	 

    
	

		(c)	investments in certificates of deposit, banker’s acceptances and time deposits maturing within two hundred and seventy
(270) days from the date of acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued
or offered by, the Administrative Agent or any domestic office of any commercial bank organized under the laws of the United States
of America, any State thereof, any country that is a member of the Organisation for Economic Co-Operation and Development or any
political subdivision thereof, that has a combined capital and surplus and undivided profits of not less than five hundred million
Dollars ($500,000,000).

“Cash Flow” means,
for any period, the sum (without duplication) of the following: (i) all cash paid to the Borrowers during such period in connection
with the Ethanol Offtake Agreements, DG Offtake Agreements and any other sales of Products, (ii) all interest and investment earnings
paid to the Borrowers or the Project Accounts during such period on amounts on deposit in the Project Accounts, (iii) all cash
paid to the Borrowers during such period as Business Interruption Insurance Proceeds or liability insurance proceeds (but only
to the extent that such liability insurance proceeds represent reimbursement of third party claims already paid by the Borrowers)
and (iv) all other cash paid to the Borrowers during such period; provided, that Cash Flow shall not include any proceeds of the
Loans or any other Indebtedness incurred by any Borrower; Insurance Proceeds; Condemnation Proceeds; any amounts paid pursuant
to the Sponsor Support Agreement; proceeds from any disposition of assets of any Plant or any Borrower (other than Products);
tax refunds; amounts received, whether by way of a capital contribution or otherwise, from any holders of Equity Interests of
any Borrower (other than payments made under the Affiliated Project Documents when due and payable in accordance with the terms
thereof and the terms of the Financing Documents); and any other extraordinary or non-cash income or receipt of any Borrower under
GAAP.

“Casualty Event” means
an event that causes any Plant, or any material portion thereof, to be damaged, destroyed or rendered unfit for normal use for
any reason whatsoever.

“CERCLA” means the Comprehensive
Environmental Response, Compensation and Liability Act (42 U.S.C. § 9604, et seq.), as amended, and rules, regulations, standards
guidelines and publications issued thereunder.

“Change of Control”
means any transaction or series of related transactions (including any merger or consolidation) consummated without the prior written
consent of the Required Senior Lenders, or, from and after the Senior Discharge Date, the Required Lenders of the Revolving Loan
Class and the Required Lenders of the Tranche A-1 Term Loan Class the result of which is that:

(i)          Pacific Holding fails to maintain,
directly, legally or beneficially, one hundred percent (100%) of the Equity Interests of any of Madera, Boardman, Stockton or Burley;

    	Exhibit A-7

    	 

    

(ii)          the Pledgor fails to maintain,
directly, legally or beneficially, one hundred percent (100%) of the Equity Interests of Pacific Holding;

(iii)          any “person” or “group”
(as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit
plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or
administrator of any such plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities
Exchange Act of 1934, except that a person or group shall be deemed to have “beneficial ownership” of all securities
that such person or group has the right to acquire, whether such right is exercisable immediately or only after the passage of
time (such right, an “option right”)), directly or indirectly, of 662⁄3% or more of the Equity Interests of Pledgor
entitled to vote for members of the board of managers or equivalent governing body of Pledgor on a fully-diluted basis (and taking
into account all such securities that such “person” or “group” has the right to acquire pursuant to any
option right); or

(iv)          any “person” or “group”
(as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit
plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or
administrator of any such plan) not a member of Pledgor on the date of the Original Credit Agreement becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or group shall
be deemed to have “beneficial ownership” of all securities that such person or group has the right to acquire, whether
such right is exercisable immediately or only after the passage of time (such right, an “option right”)), directly
or indirectly, of 50% or more of the Equity Interests of Pledgor entitled to vote for members of the board of managers or equivalent
governing body of Pledgor on a fully-diluted basis (and taking into account all such securities that such “person”
or “group” has the right to acquire pursuant to any option right).

“Class” means the Revolving
Loans, the Tranche A-1 Term Loans or the Tranche A-2 Term Loans.

“Closing Date” means
June 25, 2010.

“Code” means the Internal
Revenue Code of 1986, as amended.

“Cold Shutdown” means,
in respect of a Plant, the maintenance of such Plant in a state in which the Plant facilities are not producing ethanol, ethanol
work in process has been completed, and wherein (i) Plant systems and equipment preservation are being managed in accordance with
manufacturer recommendations and (ii) Plant facilities operate with a reduced headcount. “Cold Shutdown” contemplates
minimized usage of a Plant’s utility systems but does not contemplate any cessation of compliance monitoring with respect
to Necessary Project Approvals.

    	Exhibit A-8

    	 

    

“Collateral” means all
assets of the Loan Parties and Equity Interests in the Borrowers, whether now owned or hereinafter acquired, upon which a Lien
is purported to be created by any Security Document then in effect or contemplated to be in effect.

“Collateral Agent” means
Wells Fargo, in its capacity as collateral agent for the Senior Secured Parties under the Financing Documents, and includes each
other Person that may, from time to time be appointed as successor Collateral Agent pursuant to Section 10.06 (Resignation
or Removal of Agent).

“Commitment Fee” has
the meaning provided in Section 3.11(a) (Fees).

“Commitment Percentage”
means, as to any Lender at any time, such Lender’s Term Loan Commitment Percentage or Revolving Loan Commitment Percentage,
as the context may require.

“Commitments” means,
with respect to each Lender, as applicable, such Lender’s Term Loan Commitment or Revolving Loan Commitment, as the context
may require.

“Commodity Hedging Arrangements”
means any arrangement to hedge the price of corn purchases, ethanol sales, Distillers Grains sales or natural gas purchases.

“Commodity Hedging Policy”
means the Risk Management Policy of the Borrowers in the form attached to the Original Credit Agreement as Exhibit D, as
the same may be updated in a manner reasonably satisfactory to the Administrative Agent.

“Condemnation Proceeds”
means any amounts and proceeds of any kind (including instruments) payable in respect of any Event of Taking.

“Consenting Lender”
means each Lender whose signature appears on the signature pages to this Agreement as of the Restatement Effective Date.

“Consents” means each
Consent and Agreement entered into among a Project Party, the Borrowers, and the Collateral Agent, each in form and substance reasonably
satisfactory to the Collateral Agent.

“Consultants” means
the Financial Advisor, the Independent Engineer, the Insurance Consultant and any other consultants appointed by or on behalf of
the Lenders.

“Contest” means, with
respect to any matter or claim involving any Person, that such Person is contesting such matter or claim in good faith and by appropriate
proceedings timely instituted; provided, that the following conditions are satisfied: (a) such Person has posted a bond or other
security (which may include funds reserved in an appropriate Project Account) reasonably acceptable to the Administrative Agent;
(b) during the period of such contest, the enforcement of any contested item is effectively stayed; (c) none of such Person or
any of its officers, directors or employees, or any Senior Secured Party or its respective officers, directors or employees, is
or could reasonably be expected to become subject to any criminal liability or sanction in connection with such contested items;
and (d) such contest and any resultant failure to pay or discharge the claimed or assessed amount does not, and would not reasonably
be expected to (i) result in a Material Adverse Effect or (ii) involve a material risk of the sale, forfeiture or loss of, or the
creation, existence or imposition of any Lien (other than a Permitted Lien) on, any of the Collateral.

    	Exhibit A-9

    	 

    

“Contingent Liabilities”
means any agreement, undertaking or arrangement by which any Person guarantees, endorses or otherwise becomes or is contingently
liable upon (by direct or indirect agreement, contingent or otherwise, to provide funds for payment, to supply funds to, or otherwise
to invest in, a debtor, or otherwise to assure a creditor against loss) the indebtedness, obligation or any other liability of
any other Person (other than by endorsements of instruments in the course of collection), or guarantees the payment of dividends
or other distributions upon the shares of any other Person. The amount of any Person’s obligation under any contingent liabilities
shall (subject to any limitation set forth therein) be deemed for purposes of this Agreement to be the outstanding principal amount
of the debt, obligation or other liability guaranteed thereby; provided, that if the maximum amount of the debt, obligation or
other liability guaranteed thereby has not been established, the amount of such contingent liability shall be the maximum reasonably
anticipated amount of the debt, obligation or other liability; provided, further, that any agreement to limit the maximum amount
of such Person’s obligation under such contingent liability shall not, of and by itself, be deemed to establish the maximum
reasonably anticipated amount of such debt, obligation or other liability.

“Contractual Obligation”
means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking
to which such Person is a party or by which it or any of its property is bound.

“Corn Supplier” means
Pacific Ag Products or any other counterparty to a Grain Supply Agreement.

“DDG” means dried distillers
grains (if any) produced by the Borrowers at the Project.

“Debt Service” means,
for any period, the sum of (i) all fees (including Fees) scheduled to become due and payable during such period to the Senior Secured
Parties, (ii) interest on the Loans (taking into account any payments received under Interest Rate Protection Agreements) scheduled
to become due and payable during such period to the Senior Secured Parties, (iii) principal payments of the Loans (excluding the
Required Cash Sweep and any other mandatory prepayments) scheduled to become due and payable during such period to the Senior Secured
Parties and (iv) all payments due by the Borrowers pursuant to Section 4.03 (Increased Eurodollar Loan Costs)
and Section 4.07(a) (Taxes) with respect to such scheduled principal, interest and fees.

“Debt Service Reserve Account”
has the meaning set forth in Section 8.01(d) (Establishment of Project Accounts).

“Debt Service Reserve Release
Certificate” means a certificate in substantially the form of Exhibit 8.06 duly executed by an Authorized
Officer of the Borrowers’ Agent, directing the transfer of funds from the Debt Service Reserve Account.

    	Exhibit A-10

    	 

    

“Debt Service Reserve Requirement”
means, as of any date, the amount equal to the projected scheduled Debt Service payable in respect of the succeeding six (6) months.

“Debtor Relief Laws”
means the Bankruptcy Code and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium,
rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable
jurisdictions from time to time in effect and affecting the rights of creditors generally.

“Default” means any
condition, occurrence or event that, after notice or passage of time or both, would be an Event of Default.

“Default Excess” means,
with respect to any Defaulting Lender, the excess, if any, of such Defaulting Lender’s pro rata share of the aggregate outstanding
principal amount of all Tranche A-1 Term Loans, Tranche A-2 Term Loans or Revolving Loans (as the case may be) of all Tranche A-1
Lenders, Tranche A-2 Lenders or Revolving Lenders (as the case may be) (calculated as if all Defaulting Lenders (including such
Defaulting Lender) had funded all of their respective Defaulted Loans) over the aggregate outstanding principal amount of all Tranche
A-1 Term Loans, Tranche A-2 Term Loans or Revolving Loans (as the case may be) of such Defaulting Lender.

“Default Period” means,
with respect to any Defaulting Lender, the period commencing on the date of the applicable Funding Default and ending on the earliest
of the following dates: (i) the date on which all Commitments are cancelled or terminated and/or the Obligations are declared or
become immediately due and payable, (ii) the date on which (a) the Default Excess with respect to such Defaulting Lender shall
have been reduced to zero (whether by the funding by such Defaulting Lender of any Defaulted Loans of such Defaulting Lender or
by the non pro rata application of any voluntary or mandatory prepayments of the Loans pursuant to the terms hereof) and (b) such
Defaulting Lender shall have delivered to the Borrowers and the Administrative Agent a written reaffirmation of its intention to
honor its obligations hereunder with respect to its Commitments, and (iii) the date on which the Borrowers and the Required Lenders
of the Revolving Loan Class waive all Funding Defaults of such Defaulting Lender in writing.

“Default Rate” has the
meaning set forth in Section 3.04(a) (Default Interest Rate).

“Defaulted Loan” has
the meaning provided in Section 2.08 (Defaulting Lenders).

“Defaulting Lender”
has the meaning provided in Section 2.08 (Defaulting Lenders).

“DG Offtake Agreements”
means any agreement relating to the sale of Distillers Grains by any Borrower with a scheduled term in excess of one year and with
payments thereunder expected to be in excess of three million Dollars ($3,000,000) and each agreement between any Borrower and
Pacific Ag Products relating to the sale or marketing of Distillers Grains.

    	Exhibit A-11

    	 

    

“DIP Advance Claims”
has the meaning set forth in the Reorganization Plan.

“Discharge Date” means
the date on which (a) all outstanding Commitments have been terminated and (b) all amounts payable in respect of the Obligations
have been irrevocably paid in full in cash (other than obligations under the Financing Documents that by their terms survive and
with respect to which no claim has been made by the Senior Secured Parties).

“Distillers Grains”
means DDG, WDG, and any other form of distillers grain products (including syrup) marketed by any Borrower from time to time.

“Dollar” and the sign
“$” mean lawful money of the United States.

“Domestic Office” means,
relative to any Lender, the office of such Lender designated on Schedule 1.01(a) or designated in the Lender Assignment
Agreement pursuant to which such Lender became a Lender hereunder or such other office of a Lender (or any successor or assign
of such Lender) within the United States as may be designated from time to time by written notice from such Lender, as the case
may be, to the Borrowers’ Agent and the Administrative Agent.

“Eligible Assignee”
means (a) any Lender, (b) an Affiliate of any Lender, (c) an Approved Fund, (d) a QIB that is not an Affiliate of a Loan Party
and (e) any other Person (other than a natural person) approved by the Administrative Agent and, so long as no Default or Event
of Default has occurred and is continuing, the Borrower’s Agent (each such approval not to be unreasonably withheld or delayed).

“Environmental Affiliate”
means any Person, only to the extent of, and only with respect to matters or actions of such Person for which, any Borrower could
reasonably be expected to have liability as a result of such Borrower retaining, assuming, accepting or otherwise being subject
to liability for Environmental Claims relating to such Person, whether the source of such Borrower’s obligation is by contract
or operation of Law.

“Environmental Approvals”
means any Governmental Approvals required under applicable Environmental Laws.

“Environmental Claim”
means any written notice, claim, demand or similar written communication by any Person alleging potential liability or requiring
or demanding remedial or responsive measures (including potential liability for investigatory costs, cleanup, remediation and mitigation
costs, governmental response costs, natural resources damages, property damages, personal injuries, fines or penalties) in each
such case (x) either (i) with respect to environmental contamination-related liabilities or obligations with respect to which any
of the Borrowers could reasonably be expected to be responsible that are, or could reasonably be expected to be, in excess of two
hundred thousand Dollars ($200,000) in the aggregate, or (ii) that has or could reasonably be expected to result in a Material
Adverse Effect and (y) arising out of, based on or resulting from (i) the presence, release or threatened release into the environment,
of any Materials of Environmental Concern at any location, whether or not owned by such Person; (ii) circumstances forming the
basis of any violation, or alleged violation, of any Environmental Laws or Environmental Approvals; or (iii) exposure to Materials
of Environmental Concern.

    	Exhibit A-12

    	 

    

“Environmental Laws”
means all Laws applicable to the Project relating to pollution or protection of human health, safety or the environment (including
ambient air, surface water, ground water, land surface or subsurface strata), including Laws relating to emissions, discharges,
releases or threatened releases of Materials of Environmental Concern, or otherwise applicable to the Project relating to the manufacture,
processing, distribution, use, treatment, storage, disposal, transport or handling of Materials of Environmental Concern.

“Equity Interests” means,
with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all
of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other
ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock
of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from
such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including
partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options,
rights or other interests are outstanding on any date of determination, in each such case including all voting rights and economic
rights related thereto.

“ERISA” means the Employee
Retirement Income Security Act of 1974, as amended, and any successor statute of similar import, together with the regulations
thereunder, in each case as in effect from time to time. References to sections of ERISA also refer to any successor sections.

“ERISA Affiliate” means
any Person, trade or business that, together with any Borrower, is or was treated as a single employer under Section 414 of
the Code or Section 4001 of ERISA.

“ERISA Plan” means any
Plan that is not a Multiemployer Plan.

“Ethanol Offtake Agreements”
means any agreement relating to the sale of ethanol by any Borrower with a scheduled term in excess of one year and with payments
thereunder expected to be in excess of three million Dollars ($3,000,000), and each agreement between any Borrower and Kinergy
relating to the sale or marketing of ethanol.

“Eurodollar Loan” means
any Loan bearing interest at a rate determined by reference to the Eurodollar Rate and the provisions of Article II (Commitments
and Funding) and Article III (Repayments, Prepayments, Interest and Fees).

“Eurodollar Office”
means, relative to any Lender, the office of such Lender designated as such on Schedule 1.01(a) or designated in the
Lender Assignment Agreement pursuant to which such Lender became a Lender hereunder or such other office of a Lender as designated
from time to time by notice from such Lender to the Borrowers’ Agent and the Administrative Agent pursuant to Section 4.04
(Obligation to Mitigate) that shall be making or maintaining Eurodollar Loans of such Lender hereunder.

“Eurodollar Rate” means,
for any Interest Period with respect to any Eurodollar Loan, an interest rate per annum equal to the rate per annum obtained by
dividing (x) LIBOR for such Interest Period and such Eurodollar Loan, by (y) a percentage equal to (i) 100% minus (ii) the Eurodollar
Reserve Percentage for such Interest Period.

    	Exhibit A-13

    	 

    

“Eurodollar Reserve Percentage”
means, for any day during any Interest Period, the reserve percentage (expressed as a decimal, carried out to five decimal places)
in effect on such day, whether or not applicable to any Lender, under regulations issued from time to time by the F.R.S. Board
for determining the maximum reserve requirement (including any emergency, supplemental or other marginal reserve requirement) with
respect to eurocurrency funding (currently referred to as “Eurocurrency Liabilities”). The Eurodollar Rate for each
outstanding Eurodollar Loan shall be adjusted automatically as of the effective date of any change in the Eurodollar Reserve Percentage.

“Event of Abandonment”
means with respect to any Plant any of the following shall have occurred: (i) the abandonment by the applicable Borrower of the
operation or maintenance of such Plant for a period of more than ten (10) consecutive days (other than as a result of force majeure,
an Event of Taking or a Casualty Event), (ii) the suspension of all or substantially all of any Borrower’s activities with
respect to such Plant, other than as the result of a force majeure, Event of Taking or Casualty Event, for a period of more than
ten (10) consecutive days, or (iii) any written acknowledgement by any Borrower of a final decision to take any of the foregoing
actions; provided that neither Cold Shutdown nor Hot Idle shall constitute an Event of Abandonment under any of clauses (i), (ii)
or (iii).

“Event of Default” means
any one of the events specified in Section 9.01 (Events of Default).

“Event of Taking” means
any taking, exercise of rights of eminent domain, public improvement, inverse condemnation, condemnation or similar action of or
proceeding by any Governmental Authority relating to any material part of any Plant, the Project, any Equity Interests of any Borrower,
or any other assets thereof.

“Event of Total Loss”
means the occurrence of a Casualty Event affecting all or substantially all of any Plant, the Project or the assets of any Borrower.

“Excluded Taxes” means,
with respect to any Agent or any Lender or any other recipient of any payment to be made by or on account of any Obligation of
the Borrowers hereunder, (a) income or franchise Taxes imposed on (or measured by) its net income levied as a result of a present
or former connection between such Agent, such Lender or such other recipient and the jurisdiction of the Governmental Authority
imposing such Tax or any political subdivision or taxing Authority thereof or therein (other than such Agent’s, such Lender’s
or such other recipient’s having executed, delivered or performed its obligations or recovered a payment under, or enforced,
this Agreement or any other Financing Document), (b) any branch profits Tax imposed by the United States, or any similar Tax imposed
by any other jurisdiction described in clause (a) above, or (c) any United States withholding Tax to the extent that is imposed
on amounts payable to such Agent or such Lender at the time such Agent or such Lender becomes a party to this Agreement or such
other Financing Document.

    	Exhibit A-14

    	 

    

“Exercise of Remedies”
means with respect to any Indebtedness the exercise of any remedy (judicially or non-judicially) in respect of such Indebtedness
including an acceleration of such Indebtedness (with or without the taking of any action), the commencement of any action, suit
or proceeding in respect of such Indebtedness or the application of any collateral to such Indebtedness.

“Existing Pledgor Consent”
means the Written Consent in Lieu of Special Meeting of New PE Holdco LLC, dated as of September 14, 2012, among certain of the
equity holders of the Pledgor.

“Extended Loan” means
each Revolving Loan and Tranche A-1 Term Loan held by any Extending Lender.

“Extending Lender” means
(a) each Lender designated with an “*” on Schedule 1.01(a) hereto, (b) any Affiliated Lender or (c) any assignee
of any Lender described in the foregoing clauses (a) and (b).

“Extraordinary Proceeds Account”
has the meaning provided in Section 8.01(i) (Establishment of Project Accounts).

“Extraordinary Proceeds Release
Notice” means a certificate in substantially the form of Exhibit 8.08, duly executed by an Authorized Officer
of the Borrowers’ Agent.

“Federal Funds Effective Rate”
means, for any day, the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) equal to the weighted average
of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers
on such day, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not
so published for any day that is a Business Day, the average of the quotations for such day for such transactions received by the
Administrative Agent from three federal funds brokers of recognized standing selected by the Required Lenders.

“Fee Letters” means
(i) the Fee Letter among the Administrative Agent, the Collateral Agent and the Borrowers, dated June 17, 2011 and (ii) the Fee
Letter among the Administrative Agent, the Accounts Bank and the Borrowers, dated as of June 29, 2010, setting forth certain fees
that will, from time to time, become due and payable with respect to the Loans and to the Agents.

“Fees” means, collectively,
each of the fees payable by the Borrowers for the account of any Lender or Agent pursuant to Section 3.11 (Fees).

“Financial Advisor”
means any financial consultant as may be appointed hereunder from time to time by the Required Senior Lenders or, from and after
the Senior Discharge Date, the Required Lenders of the Revolving Loan Class.

“Financial Asset” has
the meaning provided in Section 8.09(b) (Representations, Warranties and Covenants of Accounts Bank).

    	Exhibit A-15

    	 

    

“Financing Documents”
means: 

		(i)	this Agreement;

		(ii)	the Notes;

		(iii)	the Security Documents;

		(iv)	the Interest Rate Protection Agreements, if any;

		(v)	the Fee Letters;

		(vi)	each Blocked Account Agreement;

		(vii)	the Sponsor Support Agreement;

		(viii)	the other financing and security agreements, documents and instruments delivered in connection with this Agreement; and

		(ix)	each other document designated as a Financing Document by the Borrowers’ Agent and the Administrative Agent.

“First Amendment” means
the First Amendment to the Prior Credit Agreement (prior to giving effect to the First Amendment), dated as of July 13, 2012
by and among the Borrowers, the Borrowers’ Agent, the Administrative Agent, the Collateral Agent and the Lenders party thereto.

“Fiscal Quarter” means
any quarter of a Fiscal Year.

“Fiscal Year” means
any period of twelve (12) consecutive calendar months ending on December 31.

“Floor Price” means
the average of the OPIS daily mean quoted price for Chicago pipeline/ethanol plus .01 U.S. dollars per gallon effective the bill
of lading (BOL) date, the publication immediately prior to the BOL date and the publication day immediately following the BOL date
plus a location differential equal to the average of the OPIS daily mean quoted price for Los Angeles pipeline/ethanol minus Chicago
pipeline/ethanol for the period of January 2010 — December 2010 plus a quality differential of .045 U.S. dollars per gallon.
If the BOL date is a Sunday, then the first publication day prior to and the two (2) publication days immediately following the
BOL date shall apply. If the BOL date is a Saturday or holiday, then the two (2) publication days prior to and the one (1) publication
day immediately following the BOL date shall apply.

“F.R.S. Board” means
the Board of Governors of the Federal Reserve System or any successor thereto.

    	Exhibit A-16

    	 

    

“Funding” means (a)
with respect to the Tranche A-1 Term Loans, the incurrence of each Tranche A-1 Term Loan made by the Tranche A-1 Lenders on the
Closing Date and (b) with respect to the Revolving Loans, the incurrence of each Revolving Loan made by the Revolving Lenders on
a single date, in each case, as the context may require.

“Funding Date” means,
with respect to each Funding, the date on which (a) with respect to the Tranche A-1 Term Loans, funds are disbursed by the Administrative
Agent, on behalf of the Tranche A-1 Lenders, to the Borrowers in accordance with Section 2.05 (Funding of Loans)
and (b) with respect to the Revolving Loans, funds are disbursed by the Administrative Agent, on behalf of the Revolving Lenders,
to the Borrowers in accordance with Section 2.05 (Funding of Loans) in each case, as the context may require.

“Funding Default” has
the meaning specified in Section 2.08 (Defaulting Lenders).

“Funding Notice” means
each request for Funding in the form of Exhibit 2.04-A to this Agreement or Exhibit 2.04-B to the Original
Credit Agreement, as applicable, delivered in accordance with Section 2.04 (Notice of Fundings).

“GAAP” means generally
accepted accounting principles in effect from time to time in the United States, applied on a consistent basis.

“Governmental Approval”
means any authorization, consent, approval, license, lease, ruling, permit, certification, exemption, filing for registration by
or with any Governmental Authority.

“Governmental Authority”
means any nation, state, sovereign, or government, any federal, regional, state, local or political subdivision and any entity
exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.

“Grain Supply Agreements”
means any agreement relating to the purchase or supply of grain to any Borrower with a scheduled term in excess of one year and
with payments thereunder expected to be in excess of two million Dollars ($2,000,000) and each agreement between any Borrower and
Pacific Ag Products relating to the purchase or supply of grain to such Borrower.

“Granting Lender” has
the meaning provided in Section 11.03(h) (Assignments).

“Guarantee” means, as
to any Person, (a) any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing
any Indebtedness or other obligation payable or performable by another Person (the “primary obligor”) in any manner,
whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance
or supply funds for the purchase or payment of) such Indebtedness or other obligation, (ii) to purchase or lease property, securities
or services for the purpose of assuring the obligee in respect of such Indebtedness or other obligation of the payment or performance
of such Indebtedness or other obligation, (iii) to maintain working capital, equity capital or any other financial statement condition
or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness
or other obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness
or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole
or in part), or (b) any Lien on any assets of such Person securing any Indebtedness or other obligation of any other Person, whether
or not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of
such Indebtedness to obtain any such Lien).

    	Exhibit A-17

    	 

    

“Heiskell” means J.D.
Heiskell Holdings, LLC, a California limited liability company.

“Heiskell GSA” means
the Grain Storage Agreement dated as of December 11, 2009 between Heiskell and Burley.

“Hot Idle” in respect
of a Plant, means the maintenance of such Plant in a state in which the Plant facilities are not producing ethanol with the exception
of completing work-in- process inventory, and a range of operations from a state wherein (i) Plant systems including fermentation
tanks are maintained with an amount of work-in-process Product to a state in which such systems have been emptied and cleaned and
the required process water and chemicals have been removed from the Plant facilities and (ii) Plant facilities operate with either
a full complement of head count, or, subject to prior written notice and consultation with the Administrative Agent (in the case
of any reduction in headcount that is not the result of a termination for cause or a voluntary resignation by any person working
at such Plant) a reduced headcount. “Hot Idle” does not include or contemplate a shutdown of such plant’s utility
systems or any cessation of compliance monitoring with respect to Necessary Project Approvals.

“Indebtedness” means,
as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities
in accordance with GAAP:

(a)          all obligations of such Person for
or in respect of moneys borrowed or raised, whether or not for cash by whatever means (including acceptances, deposits, discounting,
letters of credit, factoring, and any other form of financing which is recognized in accordance with GAAP in such Person’s
financial statements as being in the nature of a borrowing or is treated as “off-balance sheet” financing);

(b)          all obligations of such Person evidenced
by bonds, debentures, notes, loan agreements or other similar instruments;

(c)          all obligations of such Person for
the deferred purchase price of property or services;

(d)          all obligations of such Person under
conditional sale or other title retention agreements relating to property or assets acquired by such Person (even though the rights
and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property
or are otherwise limited in recourse);

(e)          the maximum amount of all direct
or contingent obligations of such Person arising under letters of credit (including standby and commercial), bankers’ acceptances,
bank guaranties, surety bonds and similar instruments;

    	Exhibit A-18

    	 

    

(f)          all Capitalized Lease Liabilities;

(g)          net obligations of such Person under
any Swap Contract;

(h)          all obligations of such Person to
purchase, redeem, retire, defease or otherwise make any payment in respect of any Equity Interests in such Person or any other
Person or any warrants, rights or options to acquire such Equity Interests, valued, in the case of redeemable preferred interests,
at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends; and

(i)          all Guarantees of such Person in
respect of any of the foregoing.

For all purposes hereof, the Indebtedness of any Person shall
include the Indebtedness of any partnership or joint venture (other than a joint venture that is itself a corporation or limited
liability company) in which such Person is a general partner or a joint venturer, unless such Indebtedness is expressly made non-recourse
to such Person. The amount of any net obligation under any Swap Contract on any date shall be deemed to be the Swap Termination
Value thereof as of such date.

“Indemnified Taxes”
means Taxes other than Excluded Taxes.

“Indemnitee” has the
meaning provided in Section 11.09 (Indemnification by the Borrowers).

“Independent Engineer”
means Harris Group Inc., or any replacement independent engineer appointed by the Required Senior Lenders or, from and after the
Senior Discharge Date, the Required Lenders and, so long as no Default or Event of Default has occurred and is continuing, reasonably
acceptable to the Borrower’s Agent (which acceptance shall not be unreasonably withheld or delayed).

“Information” has the
meaning provided in Section 11.18 (Treatment of Certain Information; Confidentiality).

“Initial Annual Forecast”
means the initial forecast of the projected requirements for Operation and Maintenance Expenses and Maintenance Capital Expenses
on a monthly basis for each Plant prepared by the Borrowers and attached hereto as Schedule 6.01(m)B.

“Initial Budget” means
the initial budget reflecting projected cash flows, operating disbursements, payroll disbursements, non-operating disbursements
and cash balances of the Borrowers, prepared by the Borrowers and attached to the Original Credit Agreement as Schedule 6.01(m)A.

“Insolvency Proceeding”
means, with respect to any Person:

		(i)	any case commenced by or against such Person under the Bankruptcy Code or any similar federal or state law for the relief of
debtors, any other proceeding for the reorganization, recapitalization or adjustment or marshalling of the assets or liabilities
of such Person, any receivership or assignment for the benefit of creditors relating to such Person or any similar case or proceeding
relative to such Person or its creditors, as such, in each case whether or not voluntary;

    	Exhibit A-19

    	 

    
	

		(ii)	any liquidation, dissolution, marshalling of assets or liabilities or other winding up of or relating to such Person, in each
case whether or not voluntary and whether or not involving bankruptcy or insolvency; or

		(iii)	any other proceeding of any type or nature in which substantially all claims of creditors of such Person are determined and
any payment or distribution is or may be made on account of such claims.

“Insurance and Condemnation Proceeds
Accounts” means, collectively, the Madera Insurance and Condemnation Proceeds Account, the Boardman Insurance and Condemnation
Proceeds Account, the Stockton Insurance and Condemnation Proceeds Account and the Burley Insurance and Condemnation Proceeds Account.

“Insurance and Condemnation Proceeds
Request Certificate” means a certificate, in substantially the form of Exhibit 8.07, executed by an Authorized
Officer of the Borrowers’ Agent and setting forth proposed instructions for the transfer or withdrawal of Insurance Proceeds
or Condemnation Proceeds, as the case may be, from an Insurance and Condemnation Proceeds Account.

“Insurance Consultant”
means any insurance consultant appointed by the Required Senior Lenders or, from and after the Senior Discharge Date, the Required
Lenders and, so long as no Default or Event of Default has occurred and is continuing, reasonably acceptable to the Borrower’s
Agent (which acceptance shall not be unreasonably withheld or delayed).

“Insurance Proceeds”
means all proceeds of any insurance policies required pursuant to this Agreement or otherwise obtained with respect to any Borrower,
any Plant or the Project that are paid or payable to or for the account of any Borrower, or the Collateral Agent as loss payee,
or additional insured (other than Business Interruption Insurance Proceeds and proceeds of insurance policies relating to third
party liability).

“Intercreditor Agreement”
means the Intercreditor Agreement dated as of the Restatement Effective Date, the Collateral Agent, the Administrative Agent, the
Senior Collateral Agent and the Senior Administrative Agent, as acknowledged and, as to certain provisions thereof, agreed by the
Borrowers and Borrowers’ Agent attached as Exhibit B.

“Interest Payment Date”
means, with respect to any Loan without duplication, the last day of each Interest Period applicable to each Funding of which such
Loan is a part.

“Interest Period” means,
with respect to any Eurodollar Loan, the period beginning on (and including) the date on which such Eurodollar Loan is made pursuant
to Section 2.05 (Funding of Loans) or the date on which each successive interest period for each such Eurodollar
Loan is determined pursuant to Section 3.03 (Interest Rates) and ending on (and including) the day that numerically
corresponds to such date one (1) month thereafter; provided, that (i) if such Interest Period would otherwise end on a day that
is not a Business Day, such Interest Period shall end on the next following Business Day (unless such next following Business Day
is in a different a calendar month, in which case such Interest Period shall end on the next preceding Business Day), (ii) any
Interest Period that begins on the last Business Day of a month (or on a day for which there is no numerically corresponding day
in the month at the end of such Interest Period) shall end on the last Business Day of the month at the end of such Interest Period,
(iii) no Interest Period shall end after any Monthly Date unless the aggregate outstanding principal amount of Eurodollar Loans
having Interest Periods which end on or prior to such Monthly Date shall be at least equal to the aggregate principal amount of
Eurodollar Loans due and payable on or prior to such Monthly Date, and (iv) no Interest Period may end later than the Maturity
Date.

    	Exhibit A-20

    	 

    

“Interest Period Notice”
means a notice in substantially the form attached hereto as Exhibit 3.03, executed by an Authorized Officer of the
Borrowers’ Agent.

“Interest Rate Protection Agreement”
means each interest rate swap, collar, put, or cap, or other interest rate protection arrangement, with a Qualified Counterparty,
in each such case that is reasonably satisfactory to the Administrative Agent and is entered into in accordance with Section 7.02(u)
(Negative Covenants - Interest Rate Protection Agreement).

“Interest Rate Protection Provider”
means a Qualified Counterparty that is party to an Interest Rate Protection Agreement.

“Kirby Equipment” means
the equipment leased by Pacific Ag Products pursuant to the Lease Agreement dated as of September 19, 2008 between Pacific Ag Products
and Kirby Manufacturing Inc. (“KMI”) as assigned by KMI to Agricredit Acceptance LLC on September 30, 2008.

“Kinergy” means Kinergy
Marketing, LLC, an Oregon limited liability company.

“Law” means, with respect
to any Governmental Authority, any constitutional provision, law, statute, rule, regulation, ordinance, treaty, order, decree,
judgment, decision, common law, holding, injunction, Governmental Approval or requirement of such Governmental Authority. Unless
the context clearly requires otherwise, the term “Law” shall include each of the foregoing (and each provision
thereof) as in effect at the time in question, including any amendments, supplements, replacements, or other modifications thereto
or thereof, and whether or not in effect as of the date of this Agreement.

“Leased Premises” means,
with respect to the Boardman Plant, the Premises, as defined in the Boardman Lease and, with respect to the Stockton Plant, the
Premises, as defined in the Stockton Lease.

“Leases” means, collectively,
the Boardman Lease and the Stockton Lease.

“Lender Assignment Agreement”
means a Lender Assignment Agreement, substantially in the form of Exhibit 11.03.

    	Exhibit A-21

    	 

    

“Lender Committee” means
“Lender Committee” referred to in the consent and direction letter, dated as of August 1, 2011 and attached hereto
as Schedule A, and any successor committee representing the Lenders (it being understood that there shall be no more than
one Lender Committee entitled to indemnification pursuant to Section 11.09 (Indemnification by the Borrowers) at
any time).

“Lenders” means the
persons identified as “Lenders” on Schedule 1.01(a) and each other Person that acquires the rights and obligations
of a Lender hereunder pursuant to Section 11.03 (Assignments).

“LIBOR” means, for any
Interest Period:

(a)          the rate per annum equal to the
rate determined by the Administrative Agent to be the offered rate that appears on the page of the Telerate screen (or any successor
thereto) that displays an average British Bankers Association Interest Settlement Rate for deposits in Dollars (for delivery on
the first day of such Interest Period) with a term equivalent to such Interest Period, determined as of approximately 11:00 a.m.
(London time) two (2) Business Days prior to the first day of such Interest Period; or

(b)          if the rate referenced in the preceding
clause (a) does not appear on such page or service or such page or service is not available, the rate per annum equal to the rate
determined by the Administrative Agent to be the offered rate on such other page or other service that displays an average British
Bankers Association Interest Settlement Rate for deposits in Dollars (for delivery on the first day of such Interest Period) with
a term equivalent to such Interest Period, determined as of approximately 11:00 a.m. (London time) two (2) Business Days prior
to the first day of such Interest Period; or

(c)          if the rates referenced in the preceding
clauses (a) and (b) are not available, the last available rate for LIBOR pursuant to this definition.

Notwithstanding the foregoing, in no event
shall LIBOR be less than a rate per annum equal to four percent (4%).

“Lien” means any security
interest, mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, bailment, conditional sales or title retention
agreement, lien (statutory or otherwise), charge against or interest in property, in each case of any kind, to secure payment of
a debt or performance of an obligation.

“Liquidity Agreement”
dated as of June 7, 2012 among the Pacific Holdings, Burly, Boardman, Stockton, Kinergy and Pacific Ag Products.

“Loan Parties” means,
collectively, each Borrower and the Pledgor.

“Loans” means, collectively,
the Term Loans and the Revolving Loans.

“Local Account” means
any local bank account (other than the Project Accounts) in the name of any Borrower.

    	Exhibit A-22

    	 

    

“Madera” has the meaning
set forth in the Preamble.

“Madera Deed of Trust”
means the Deed of Trust, Security Agreement, Financing Statement, Fixture Filing and Assignment of Leases, Rents and Security Deposits,
in form and substance reasonably satisfactory to the Lenders and the Collateral Agent, dated on or about the date of the Original
Credit Agreement, made by Madera to Stewart Title Guaranty Company, as trustee, for the benefit of the Collateral Agent, as beneficiary.

“Madera Insurance and Condemnation
Proceeds Account” has the meaning provided in Section 8.01(e) (Establishment of Project Accounts).

“Madera LLC Agreement”
means the Fourth Amended and Restated Limited Liability Company Operating Agreement of Madera dated as of June 29, 2010.

“Madera Plant” means
the ethanol production facility located at Madera, California, with a capacity of approximately forty (40) million gallons-per-year
of denatured ethanol, including the Site on which such facility is located, and all buildings, structures, improvements, easements
and other property related thereto.

“Madera Pledge Agreement”
means the Pledge and Security Agreement, in form and substance reasonably satisfactory to the Lenders and the Collateral Agent,
dated on or about the date of the Original Credit Agreement, among Pacific Holding, Madera and the Collateral Agent, pursuant to
which Pacific Holding pledges one hundred percent (100%) of the Equity Interests in Madera to the Collateral Agent.

“Madera Security Agreement”
means the Assignment and Security Agreement, in form and substance reasonably satisfactory to the Lenders and the Collateral Agent,
dated on or about the date of the Original Credit Agreement, made by Madera in favor of the Collateral Agent.

“Madera Subordination Agreement”
means that certain Subordination Agreement, dated as of the Restatement Effective Date, by and among Madera, the Senior Collateral
Agent, and Collateral Agent.

“Maintenance Capital Expense Account”
has the meaning set forth in Section 8.01(c) (Establishment of Project Accounts).

“Maintenance Capital Expenses”
means all expenditures by the Borrowers for regularly scheduled (or reasonably anticipated) major maintenance of the Project, Prudent
Ethanol Operating Practice and vendor and supplier requirements constituting major maintenance (including teardowns, overhauls,
capital improvements, replacements and/or refurbishments of major components of the Project).

“Major Project Party”
means Pacific Ethanol (until the termination of the Asset Management Agreement), each Offtaker, each Corn Supplier, the landlord
under each Lease, Heiskell, the guarantor under any Project Document Guarantee guarantying the obligations of any other Major Project
Party and any other Project Party designated as a Major Project Party by the Administrative Agent and the Borrowers’ Agent.

    	Exhibit A-23

    	 

    

“Majority Condition”
means that two or fewer Lenders (excluding all Non-Voting Lenders) (each Lender and its Affiliates that are Lenders shall be considered
a single Lender for purposes of this definition) of a Class hold (i) in excess of fifty percent (50.00%) of the outstanding principal
amount of the Loans of such Class (or in the case of the Revolving Loans, in excess of fifty percent (50.00%) of the outstanding
principal amount of the Revolving Loans and the undisbursed amount of the Aggregate Revolving Loan Commitment) (excluding the principal
amounts of any Loans of such Class made by, and any Revolving Loan Commitments of, any Non-Voting Lenders); provided that in each
case the undisbursed Revolving Loan Commitment of, and the portion of the outstanding principal amount of the Loans of a Class
held by, any Defaulting Lender shall be excluded for purposes of this definition and (ii) in excess of fifty percent (50.00%) of
the Equity Interests of Pledgor. In determining the composition of the Majority Condition of a Class, the two Lenders holding the
largest amount of the Loans of such Class shall be included.

“Majority of the Minority”
means Lenders (excluding all Non-Voting Lenders) of a Class holding in excess of fifty percent (50.00%) of the outstanding principal
amount of the Loans of such Class (or in the case of the Revolving Loans, in excess of fifty percent (50.00%) of the outstanding
principal amount of the Revolving Loans and the undisbursed amount of the Aggregate Revolving Loan Commitment) (excluding the principal
amounts of any Loans of such Class made by, and any Revolving Loan Commitments of, any Non-Voting Lenders) excluding the outstanding
principal amount of the Loans and the undisbursed amount of the Revolving Loan Commitment of the Lenders comprising the Majority
Condition in respect of such Class; provided that in each case the undisbursed
Revolving Loan Commitment of, and the portion of the outstanding principal amount of the Loans
of a Class held by, any Defaulting Lender shall be excluded for purposes of this definition.

“Mandatory Prepayment”
means a prepayment in accordance with Section 3.08 (Mandatory Prepayment).

“Material Adverse Effect”
means any event, development or circumstance that has had or could reasonably be expected to have a material adverse effect in
respect of any Plant or the Project on (i) the business, assets, property, condition (financial or otherwise) or operations (as
applicable) of any Borrower, (ii) the ability of any Borrower or any other Loan Party or any Project Party to perform its material
obligations under any Transaction Document to which it is a party, (iii) creation, perfection or priority of the Liens granted,
or purported to be granted, in favor, or for the benefit, of the Collateral Agent or (iv) the rights or remedies of any Senior
Secured Party under any Financing Document; provided that clauses (i) or (ii) of this definition shall not be a Material Adverse
Effect with respect to any Borrower if such event, development or circumstance results from the Cold Shutdown of a Plant.

“Materials of Environmental Concern”
means chemicals, pollutants, contaminants, wastes, toxic substances and hazardous substances, any toxic mold, radon gas or other
naturally occurring toxic or hazardous substance or organism and any material that is regulated in any way, or for which liability
is imposed, pursuant to an Environmental Law.

“Maturity Date” means
(a) with respect to the Extended Loans, June 30, 2016, and (b) with respect to all other Loans, the Original Maturity Date.

    	Exhibit A-24

    	 

    

“Maximum Rate” has the
meaning provided in Section 11.10 (Interest Rate Limitation).

“Monthly Date” means
the last Business Day of each calendar month.

“Monthly Period” means
each one (1) month period beginning on (and including) the day immediately following a Monthly Date and ending on (and including)
the next Monthly Date.

“Moody’s” means
Moody’s Investors Service Inc., and any successor thereto that is a nationally recognized rating agency.

“Mortgaged Property”
means all real property right, title and interest of each Borrower that is subject to the relevant Mortgage in favor of the Collateral
Agent.

“Mortgages” means, together,
the Madera Deed of Trust, the Boardman Deed of Trust, the Stockton Deed of Trust and the Burley Deed of Trust.

“Multiemployer Plan”
means a Plan that is a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA.

“Necessary Project Approvals”
means (i) all material Governmental Approvals that are required under applicable Law to be obtained by any Borrower in connection
with the ownership and operation of a Plant at its full nameplate capacity as contemplated by the Transaction Documents and (ii)
the Governmental Approvals described in Section 5.03(a) (Governmental Approvals).

“Necessary Project Contracts”
means all material contracts, agreements, technology licenses, instruments, letters, understandings, or other documentation that
are required to be obtained by any Borrower in connection with the operation of the applicable Plant as contemplated by the Transaction
Documents.

“Net Swap Payment” means,
with respect to any Interest Rate Protection Agreement and for any period, all scheduled Obligations due and payable by any Borrower
under such Interest Rate Protection Agreement during such period, after giving effect to any netting applicable thereto.

“Non-Appealable” means,
with respect to any specified time period allowing an appeal of any ruling under any constitutional provision, Law, statute, rule,
regulation, ordinance, treaty, order, decree, judgment, decision, certificate, holding or injunction that such specified time period
has elapsed without an appeal having been brought.

“Non-U.S. Lender” has
the meaning set forth in Section 4.07(e) (Taxes - Foreign Lenders).

“Non-Voting Lender”
means any Lender who (a) is a Defaulting Lender, (b) is a Loan Party, a Project Party or any Affiliate or Subsidiary thereof or
(c) has sold a participation in the Loan held by it to any such Person (to the extent of such participation).

    	Exhibit A-25

    	 

    

“Notes” means the Term
Notes and the Revolving Notes, including any promissory notes issued by any Borrower in connection with assignments of any Loan
of a Lender, in each case substantially in the form of Exhibit 2.06, as they may be amended, restated, supplemented
or otherwise modified from time to time.

“Notice of Suspension”
has the meaning provided in Section 8.18 (Notices of Suspension of Accounts).

“Obligations” means
and includes all loans, advances, debts, liabilities, Indebtedness and obligations, howsoever arising, owed to the Agents, the
Lenders or any other Senior Secured Party of every kind and description (whether or not evidenced by any note or instrument and
whether or not for the payment of money), direct or indirect (including those acquired by assumption), absolute or contingent,
due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or
against any Borrower of any Insolvency Proceeding naming such Borrower as the debtor in such proceeding, regardless of whether
such interest and fees are allowed claims in such proceeding, pursuant to the terms of this Agreement or any of the other Financing
Documents, including all principal, interest, fees, charges, expenses, attorneys’ fees, costs and expenses, accountants’
fees and Consultants’ fees payable by the Borrowers hereunder or thereunder.

“Offtaker” means each
counterparty to each DG Offtake Agreement and each Ethanol Offtake Agreement.

“Operating Account”
has the meaning provided in Section 8.01(b) (Establishment of Project Accounts).

“Operating Account Withdrawal
Certificate” means a certificate in substantially the form of Exhibit 8.04, duly executed by an Authorized
Officer of the Borrowers’ Agent, directing the transfer or withdrawal of funds from the Operating Account.

“Operating Statement”
means an operating statement with respect to each Plant, in substantially the form of Exhibit 7.03(l).

“Operation and Maintenance Expenses”
means the sum without duplication of all (i) reasonable and necessary expenses of administering, managing and operating, and generating
Products for sale from, the Project and maintaining it in good repair and operating condition, (ii) costs associated with the supply
and transportation of all corn, natural gas, electricity and other supplies and raw materials to the Project and distribution and
sale of Products from the Project that any Borrower is obligated to pay, (iii) all reasonable and necessary insurance costs, (iv)
property, sales and franchise taxes to the extent that any Borrower is liable to pay such taxes to the taxing authority (other
than taxes imposed on or measured by income or receipts) to which the Project, may be subject (or payment in lieu of such taxes
to which the Project may be subject), (v) reasonable and necessary costs and fees incurred in connection with obtaining and maintaining
in effect Necessary Project Approvals, (vi) reasonable and arm’s-length legal, accounting and other professional fees attendant
to any of the foregoing items and, (vii) the reasonable costs of administration and enforcement of the Transaction Documents. In
no event shall Maintenance Capital Expenses be considered Operation and Maintenance Expenses.

    	Exhibit A-26

    	 

    

“Organic Documents”
means, with respect to any Person that is a corporation, its certificate of incorporation, its by-laws and all shareholder agreements,
voting trusts and similar arrangements applicable to any of its authorized shares of capital stock and, with respect to any Person
that is a limited liability company, its certificate of formation or articles of organization and its limited liability agreement.

“Original Credit Agreement”
means the Credit Agreement, dated as of June 25, 2010, by and among the Borrowers, the Borrowers’ Agent, each of the Lenders
from time to time party thereto, WestLB, as administrative agent for the Lenders, collateral agent for the Senior Secured Parties
and issuing bank thereunder, and the Accounts Bank, as accounts bank, as amended, supplemented or otherwise modified prior to both
its amendment and restatement as the Prior Credit Agreement and the First Amendment.

“Original Maturity Date”
means the date that occurs three (3) years after the Closing Date.

“Pacific Ag Products”
means Pacific Ag. Products, LLC, a California limited liability company.

“Pacific Ethanol” means
Pacific Ethanol, Inc., a Delaware corporation.

“Pacific Ethanol Guarantees”
means each guaranty to be made by Pacific Ethanol, guaranteeing the performance and payment of the obligations of Kinergy or Pacific
Ag Products, as the case may be, under each of the Ethanol Offtake Agreements, DG Offtake Agreements, and Grain Supply Agreements
to which Kinergy or Pacific Ag Products are party.

“Pacific Holding” has
the meaning set forth in the Preamble.

“Pacific Holding LLC Agreement”
means the Second Amended and Restated Limited Liability Company Agreement of Pacific Holding dated as of June 29, 2010.

“Pacific Holding Pledge Agreement”
means the Pledge and Security Agreement, in form and substance reasonably satisfactory to the Lenders and the Collateral Agent,
dated on or about the date of the Original Credit Agreement, among Pacific Holding, Pledgor and the Collateral Agent, pursuant
to which Pledgor pledges one hundred percent (100%) of the Equity Interests in Pacific Holding to the Collateral Agent.

“Pacific Holding Security Agreement”
means the Assignment and Security Agreement, in form and substance reasonably satisfactory to the Lenders and the Collateral Agent,
dated on or about the date of the Original Credit Agreement, made by Pacific Holding in favor of the Collateral Agent.

“Participant” has the
meaning provided in Section 11.03(d) (Assignments).

“Patriot Act” means
United States Public Law 107-56, Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism (USA PATRIOT ACT) of 2001, and the rules and regulations promulgated thereunder from time to time in effect.

    	Exhibit A-27

    	 

    

“PBGC” means the Pension
Benefit Guaranty Corporation and any entity succeeding to any or all of its functions under ERISA.

“PE Newco LLC Agreement”
means the Limited Liability Company Agreement of New PE Holdco LLC dated as of June 29, 2010.

“Permitted Commodity Hedge”
means any non-speculative Swap Contract in respect of certain commodities entered into in accordance with the Commodity Hedging
Policy.

“Permitted Indebtedness”
means Indebtedness identified in Section 7.02(a) (Negative Covenants - Restrictions on Indebtedness of the Borrowers).

“Permitted Liens” means
Liens identified in Section 7.02(b) (Negative Covenants - Liens).

“Permitted Tax Distribution”
means, with respect to any distributee that is required to pay tax as a result of its direct or indirect ownership of the Borrowers,
an amount equal to (a) the Effective Tax Rate multiplied by (b) such distributee’s estimated share of the taxable income
of Pacific Holding and the other Borrowers (after netting or otherwise taking account of a distributee’s shares of the income,
loss, deduction and credit associated with the distributee’s interest in the Borrowers) that the distributee is reasonably
expected to have to report for income tax purposes for the month distributed to the extent necessary to fund a distributee’s
timely payment to a Governmental Authority of tax liability (including estimated payments thereof) and subject to correction as
described below. “Effective Tax Rate” means the highest combined federal and state tax rate on corporations,
applicable to any distributee, after giving effect to the maximum amount of state income tax deductible for federal income tax
purposes. Permitted Tax Distributions as estimated for purposes of a Monthly Date shall be subject to later correction to reflect
amounts as actually reported on an income tax return by a distributee for federal and state income tax purposes. Thus, on any Monthly
Date, the Permitted Tax Distribution means the amount calculated as the product of (a) and (b), above, adjusted by the difference,
if any, between the Permitted Tax Distribution for the preceding Monthly Date as estimated for such date and the Permitted Tax
Distribution for that preceding Monthly Date as finally determined.

“Permitted Variance”
means, for each Budget Period, the product of (x) the aggregate amount of the Budget for such Budget Period and (y) 10%.

“Person” means any natural
person, corporation, partnership, limited liability company, firm, association, trust, government, governmental agency or any other
entity, whether acting in an individual, fiduciary or other capacity.

“Plan” means an employee
pension benefit plan (as defined in Section 3(3) of ERISA) subject to Title IV of ERISA or Section 412 of the Code that
is sponsored or maintained by any Borrower or any ERISA Affiliate, or in respect of which any Borrower or any ERISA Affiliate has
any obligation to contribute or liability.

“Plants” means, collectively,
the Madera Plant, the Boardman Plant, the Stockton Plant and the Burley Plant.

    	Exhibit A-28

    	 

    

“Pledge Agreements”
means, collectively, the Madera Pledge Agreement, the Boardman Pledge Agreement, the Stockton Pledge Agreement, the Burley Pledge
Agreement and the Pacific Holding Pledge Agreement.

“Pledgor” means New
PE Holdco LLC, a Delaware limited liability company.

“Plurality Condition”
means that two or fewer Lenders (excluding all Non-Voting Lenders) (each Lender and its Affiliates that are Lenders shall be considered
a single Lender for purposes of this definition) of a Class hold (i) in excess of fifty percent (50.00%) of the outstanding principal
amount of the Loans of such Class (or in the case of the Revolving Loans, in excess of fifty percent (50.00%) of the outstanding
principal amount of the Revolving Loans and the undisbursed amount of the Aggregate Revolving Loan Commitment) (excluding the principal
amounts of any Loans of such Class made by, and any Revolving Loan Commitments of, any Non-Voting Lenders); provided that in each
case the undisbursed Revolving Loan Commitment of, and the portion of the outstanding principal amount of the Loans of a Class
held by, any Defaulting Lender shall be excluded for purposes of this definition and (ii) fifty percent (50.00%) or less of the
Equity Interests of Pledgor. In determining the composition of the Plurality Condition of a Class, the two Lenders holding the
largest amount of the Loans of such Class shall be included.

“Plurality of the Minority”
means Lenders (excluding all Non-Voting Lenders) of a Class holding in excess of thirty three and one-third percent (331⁄3%)
of the outstanding principal amount of the Loans of such Class (or in the case of the Revolving Loans, in excess of thirty three
and one-third percent (331⁄3%) of the outstanding principal amount of the Revolving Loans and the undisbursed amount of the
Aggregate Revolving Loan Commitment) (excluding the principal amounts of any Loans of such Class made by, and any Revolving Loan
Commitments of, any Non-Voting Lenders) excluding the outstanding principal amount of the Loans and the undisbursed amount of the
Revolving Loan Commitment of the Lenders comprising the Plurality Condition in respect of such Class;
provided that in each case the undisbursed Revolving Loan Commitment of, and the portion of the
outstanding principal amount of the Loans of a Class held by, any Defaulting Lender shall be
excluded for purposes of this definition.

“Plurality of the Minority (Stockton
Vote)” means Revolving Lenders (excluding all Non-Voting Lenders) holding in excess of sixty six and two-thirds percent
(662⁄3%) of the outstanding principal amount of the Revolving Loans (or in excess of sixty six and two-thirds percent (662⁄3%)
of the outstanding principal amount of the Revolving Loans and the undisbursed amount of the Aggregate Revolving Loan Commitment)
(excluding the principal amounts of any Revolving Loans made by, and any Revolving Loan Commitments of, any Non-Voting Lenders)
excluding the outstanding principal amount of the Revolving Loans and the undisbursed amount of the Revolving Loan Commitment of
the Lenders comprising the Plurality Condition with respect to the Revolving Loans; provided that in each case the undisbursed
Revolving Loan Commitment of, and the portion of the outstanding principal amount of the Revolving Loans held by, any Defaulting
Lender shall be excluded for purposes of this definition.

    	Exhibit A-29

    	 

    

“Primary Swap Obligations”
means, with respect to any Interest Rate Protection Agreement, all scheduled obligations due and payable by any Person party to
such Interest Rate Protection Agreement (after giving effect to any netting applicable thereto) and all payments of Swap Termination
Value due and payable by any Person party to such Interest Rate Protection Agreement, but excluding any amounts owed in respect
of Taxes, expenses and indemnification obligation which do not constitute payments of Swap Termination Value.

“Prior Credit Agreement”
means the Amended and Restated Credit Agreement, dated as of August 1, 2011, by and among the Borrowers, the Borrowers’ Agent,
each of the Lenders from time to time party thereto, the Agents and WestLB, as issuing bank thereunder (prior to the effectiveness
of the First Amendment), as amended by the First Amendment.

“Priority Senior Secured Parties”
means the “Senior Secured Parties” as defined in the Senior Credit Agreement.

“Process Agent” means
any Person appointed as agent by any Borrower or any Project Party, as required under the Financing Documents, to receive on behalf
of itself and its property services of copies of summons and complaint or any other process which may be served in connection with
any action or proceeding before any court arising out of or relating to this Agreement or any other Financing Document to which
it is a party, including CT Corporation System.

“Products” means ethanol,
Distillers Grains, carbon dioxide, and any other co product or by-product produced in connection with the production of ethanol
at the Plants.

“Project” means each
Plant and all auxiliary and other facilities constructed or to be constructed by or on behalf of the applicable Borrowers pursuant
to the Project Documents relating to each such Plant or otherwise, together with all fixtures and improvements thereto and each
Site and all other real property, easements and rights-of-way held by or on behalf of the applicable Borrowers and all rights to
use easements and rights-of-way of others.

“Project Accounts” means
the Revenue Account, the Operating Account, the Maintenance Capital Expense Account, the Debt Service Reserve Account, the Insurance
and Condemnation Proceeds Accounts and the Extraordinary Proceeds Account, including any sub-account within such accounts.

“Project Document Guarantees”
means each guarantee (by an Affiliate or otherwise) of the performance of any Project Party’s obligations under a Project
Document, including the Pacific Ethanol Guarantees and any other such guarantee required as a condition to approval of any Project
Document in accordance with this Agreement.

“Project Documents”
means:

		(i)	the Asset Management Agreement;

		(ii)	the Leases;

		(iii)	the Grain Supply Agreements;

		(iv)	the Ethanol Offtake Agreements;

    	Exhibit A-30

    	 

    
	

		(v)	the DG Offtake Agreements;

		(vi)	the Burley Heiskell GSA;

		(vii)	the Stockton Heiskell GSA;

		(viii)	the Boardman CHS GSA;

		(ix)	the Borrower LLC Agreements;

		(x)	the Project Document Guarantees;

		(xi)	the Liquidity Agreement;

		(xii)	any other documents designated as a Project Document by the Borrowers’ Agent and the Administrative Agent;

		(xiii)	each Additional Project Document; and

		(xiv)	any replacement agreement for any of such agreements.

“Project Document Termination
Payments” means all payments that are required to be paid to or for the account of any Borrower as a result of the termination
of any Project Document.

“Project Party” means
each Person (other than the Borrowers) who is a party to a Project Document.

“Prudent Ethanol Operating Practice”
means those reasonable practices, methods and acts that (i) are commonly used in the regions where the Plants are located to manage,
operate and maintain ethanol production, distribution, equipment and associated facilities of the size and type that comprise the
Project safely, reliably, and efficiently and in compliance with applicable Laws, manufacturers’ warranties and manufacturers’
and licensor’s recommendations and guidelines, and (ii) in the exercise of reasonable judgment, skill, diligence, foresight
and care are expected of an ethanol plant operator, in order to efficiently accomplish the desired result consistent with safety
standards, applicable Laws, manufacturers’ warranties, manufacturers’ recommendations and, in the case of the Project,
the Project Documents. Prudent Ethanol Operating Practice does not necessarily mean one particular practice, method, equipment
specifications or standard in all cases, but is instead intended to encompass a broad range of acceptable practices, methods, equipment
specifications and standards.

“QIB” means a Qualified
Institutional Buyer as such term is defined in Rule 144A promulgated pursuant to the Securities Act
of 1933.

“Qualified Counterparty”
means any of the following: (i) any Person who is a Lender, the Administrative Agent, or the Collateral Agent on the date the relevant
Interest Rate Protection Agreement is entered into or (ii) any Affiliate of any Person listed in clause (i).

    	Exhibit A-31

    	 

    

“RCRA” means the Resource
Conservation and Recovery Act (42 U.S.C. § 6901 et seq.), as amended, and all rules, regulations, standards, guidelines, and
publications issued thereunder.

“Register” has the meaning
set forth in Section 11.03(c) (Assignments).

“Related Parties” means,
with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents and advisors
of such Person and of such Person’s Affiliates.

“Removal,” “Remedial”
and “Response” actions shall include the types of activities covered by CERCLA, RCRA, and other comparable Environmental
Laws, and whether the activities are those which might be taken by a Governmental Authority or those which a Governmental Authority
or any other Person might seek to require of waste generators, handlers, distributors, processors, users, storers, treaters, owners,
operators, transporters, recyclers, reusers, disposers, or other Persons under “removal,” “remedial,” or
other “response” actions.

“Reorganization Plan”
has the meaning set forth in the Recitals.

“Reportable Event” means
a “reportable event” within the meaning of Section 4043(c) of ERISA.

“Required Cash Sweep”
means each mandatory prepayment of the Loans made pursuant to Section 3.08(a)(v) (Mandatory Prepayment).

“Required Lenders” means, in
respect of any Class of Loan, (i) if the Majority Condition exists, Lenders (excluding all Non-Voting Lenders) holding in excess
of fifty percent (50.00%) of the outstanding principal amount of the Loans of such Class (or in the case of the Revolving Loans,
holding in excess of fifty percent (50.00%) of the outstanding principal amount of the Revolving Loans and the undisbursed amount
of the Aggregate Revolving Loan Commitment) (excluding the principal amounts of any Loans of such Class made by, and any Revolving
Loan Commitments of, any Non-Voting Lenders) including the Majority of the Minority of such Class, (ii) if the Plurality Condition
exists, Lenders (excluding all Non-Voting Lenders) holding in excess of fifty percent (50.00%) of the outstanding principal amount
of the Loans of such Class (or in the case of the Revolving Loans, holding in excess of fifty percent (50.00%) of the outstanding
principal amount of the Revolving Loans and the undisbursed amount of the Aggregate Revolving Loan Commitment) (excluding the principal
amounts of any Loans of such Class made by, and any Revolving Loan Commitments of, any Non-Voting Lenders) including the Plurality
of the Minority of such Class and (iii) if neither the Majority Condition nor the Plurality Condition exists, Lenders (excluding
all Non-Voting Lenders) holding in excess of fifty percent (50.00%) of the outstanding principal amount of the Loans of such Class
(or in the case of the Revolving Loans, holding in excess of fifty percent (50.00%) of the outstanding principal amount of the
Revolving Loans and the undisbursed amount of the Aggregate Revolving Loan Commitment) (excluding the principal amounts of any
Loans of such Class made by, and any Revolving Loan Commitments of, any Non-Voting Lenders); provided
that in each case the undisbursed Revolving Loan Commitment of, and the portion of the outstanding
principal amount of the Loans of a Class held by, any Defaulting Lender shall be excluded for purposes
of making a determination of Required Lenders.

 

    	Exhibit A-32

    	 

    

 

“Required Minority Lenders”
means (i) if the Majority Condition with respect to the Revolving Loans exists, Revolving Lenders (excluding all Non-Voting Lenders)
holding in excess of fifty percent (50.00%) of the outstanding principal amount of the Revolving Loans and the undisbursed amount
of the Aggregate Revolving Loan Commitment (excluding the principal amounts of any Revolving Loans made by, and any Revolving Loan
Commitments of, any Non-Voting Lenders) including the Majority of the Minority with respect to the Revolving Loans and (ii) if
the Plurality Condition with respect to the Revolving Loans exists, Revolving Lenders (excluding all Non-Voting Lenders) holding
in excess of fifty percent (50.00%) of the outstanding principal amount of the Revolving Loans and the undisbursed amount of the
Aggregate Revolving Loan Commitment (excluding the principal amounts of any Revolving Loans made by, and any Revolving Loan Commitments
of, any Non-Voting Lenders) including the Plurality of the Minority (Stockton Vote); provided that in
each case the undisbursed Revolving Loan Commitment of, and the portion of the outstanding
principal amount of the Revolving Loans held by, any Defaulting Lender shall be excluded for purposes
of making a determination of Required Minority Lenders.

“Required Senior Lenders”
means the “Required Lenders” as defined in the Senior Credit Agreement.

“Restatement Effective Date”
means the date on which all the conditions set forth in Section 6.01 (Conditions to Closing) have been satisfied
or waived.

“Restoration or Replacement Plan”
means a plan and time schedule, reasonably satisfactory to (x) the Required Senior Lenders or, from and after the Senior Discharge
Date, the Required Lenders of the Revolving Loan Class and (y) the Independent Engineer, for the application of Insurance
Proceeds or Condemnation Proceeds arising from any Casualty Event or Event of Taking, as the case may be, and any other funds available
to the Borrowers with which to restore or replace any Plant (or any portion thereof) affected by such Casualty Event or Event of
Taking, as the case may be.

“Restricted Payments”
means any (a) dividend or other distribution (whether in cash, securities or other property), or any payment (whether in cash,
securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement,
defeasance, acquisition, cancellation or termination of any Equity Interests of any Borrower, or on account of any return of capital
to any holder of any such Equity Interest in, or any other Affiliate of, any Borrower, or any option, warrant or other right to
acquire any such dividend or other distribution or payment and (b) any payment of any management, consultancy, administrative,
services, or other similar payments to any Person who owns, directly or indirectly, any Equity Interest in any Borrower, or any
Affiliate of any such Person (provided that (i) payments made under the Affiliated Project Documents when due and payable in accordance
with the terms thereof and the terms of the Financing Documents, (ii) any Permitted Tax Distributions, and (iii) payments of operating
expenses of the Pledgor set forth in the then- current Budget shall in each case not constitute Restricted Payments).

    	Exhibit A-33

    	 

    

“Revenue Account” has
the meaning set forth in Section 8.01(a) (Establishment of Project Accounts).

“Revenue Account Withdrawal Certificate”
means a certificate in substantially the form of Exhibit 8.03 duly executed by an Authorized Officer of the Borrowers’
Agent, directing the transfer or withdrawal of funds from the Revenue Account.

“Revolving Funding Notice”
means each request for Funding of Revolving Loans in the form of Exhibit 2.04-A delivered in accordance with Section 2.04
(Notice of Fundings).

“Revolving Lenders”
means those Lenders of Revolving Loans, as identified on Schedule 1.01(a), and each other Person that acquires the
rights and obligations of any such Lender pursuant to Section 11.03 (Assignments).

“Revolving Loan” has
the meaning provided in Section 2.02 (Revolving Loans).

“Revolving Loan Commitment Availability”
of any Revolving Lender, means the amount by which (x) the Revolving Commitment of such Lender exceeds (y) the outstanding principal
balance of the Revolving Loans of such Lender.

“Revolving Loan Commitment”
means, with respect to each Revolving Lender, the commitment of such Revolving Lender to make Revolving Loans, as set forth opposite
the name of such Revolving Lender in Schedule 1.01(a), as the same may be reduced in accordance with Section 2.07
(Termination or Reduction of Commitments).

“Revolving Loan Commitment Availability
Percentage” means, as to any Lender at any time, the percentage that such Lender’s Revolving Loan Commitment Availability
then constitutes of the aggregate amount of the Revolving Loan Commitment Availability of all Lenders.

“Revolving Loan Commitment Percentage”
means, as to any Revolving Lender at any time, the percentage that such Revolving Lender’s Revolving Loan Commitment then
constitutes of the Aggregate Revolving Loan Commitment.

“Revolving Notes” means
the promissory notes of the Borrower, substantially in the form of Exhibit 2.06, evidencing Revolving Loans.

“Roll-Up Claims” has
the meaning set forth in the Reorganization Plan.

“S&P” means Standard
& Poor’s Ratings Services, a division of The McGraw Hill Companies, Inc., and any successor thereto that is a nationally
recognized rating agency.

“Security” means the
security created in favor of the Collateral Agent pursuant to the Security Documents.

“Security Agreements”
means, collectively, the Madera Security Agreement, the Boardman Security Agreement, the Stockton Security Agreement, the Burley
Security Agreement and the Pacific Holding Security Agreement.

    	Exhibit A-34

    	 

    

“Security Documents”
means:

		(i)	each Mortgage and each Subordination Agreement;

		(ii)	this Agreement (to the extent that it relates to the Project Accounts);

		(iii)	the Intercreditor Agreement;

		(iv)	the Consents;

		(v)	the Pledge Agreements;

		(vi)	the Security Agreements;

		(vii)	any other document designated as a Security Document by the Borrowers’ Agent and the Administrative Agent; and

		(viii)	any fixture filings, financing statements, notices, authorization letters, or other certificates filed, recorded or delivered
in connection with the foregoing.

“Senior Administrative Agent”
means the “Administrative Agent” as defined in the Senior Credit Agreement.

“Senior Collateral Agent”
means the “Collateral Agent” as defined in the Senior Credit Agreement.

“Senior Credit Agreement”
means the revolving Credit Agreement, dated as of the date of this Agreement by and among the Borrowers, the Borrowers’ Agent,
each of the financial institutions from time to time party thereto as lenders, the Senior Administrative Agent and the Senior Collateral
Agent and the Accounts Bank.

“Senior Discharge Date”
means the “Discharge Date” as defined in the Senior Credit Agreement.

“Senior Fees” means
the “Fees” as defined in the Senior Credit Agreement.

“Senior Financing Documents”
means the “Financing Documents” as defined in the Senior Credit Agreement.

“Senior Lender” means
a “Lender” as defined in the Senior Credit Agreement.

“Senior Loans” means
the “Loans” as defined in the Senior Credit Agreement.

“Senior Maturity Date”
means the “Maturity Date” as defined in the Senior Credit Agreement.

    	Exhibit A-35

    	 

    

“Senior Obligations”
means the “Obligations” as defined in the Senior Credit Agreement.

“Senior Secured Parties”
means the Lenders, the Agents, any Interest Rate Protection Provider, and each of their respective successors, transferees and
assigns.

“Senior Security Documents”
means the “Security Documents” as defined in the Senior Credit Agreement.

“Senior Transaction Documents”
means the “Transaction Documents” as defined in the Senior Credit Agreement.

“Site” means, with respect
to each Plant, those certain parcels described on Schedule 5.13(a) with respect to such Plant.

“Site Specific Bond”
means Site Certificate Bond, Bond No. 0590288, in the amount of $863,200 issued by Fidelity Insurance Company in favor of the State
of Oregon, acting by and through the Energy Facility Sitting Council, as the amount of such bond may be increased from time to
time as permitted by this Agreement.

“Solvent” means, with
respect to any Person, that as of the date of determination both (i) (A) the then fair saleable value of the property of such Person
is (y) greater than the total amount of liabilities (including Contingent Liabilities but excluding amounts payable under intercompany
loans or promissory notes) of such Person and (z) not less than the amount that will be required to pay the probable liabilities
on such Person’s then existing debts as they become absolute and matured considering all financing alternatives and potential
asset sales reasonably available to such Person; (B) such Person’s capital is not unreasonably small in relation to its business
or any contemplated or undertaken transaction; and (C) such Person does not intend to incur, or reasonably believe that it will
incur, debts beyond its ability to pay such debts as they become due; and (ii) such Person is “solvent” within the
meaning given that term and similar terms under applicable Laws relating to fraudulent transfers and conveyances. For purposes
of this definition, the amount of any Contingent Liability at any time shall be computed as the amount that, in light of all of
the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or
matured liability.

“Sponsor Support Agreement”
means the Amended and Restated Sponsor Support Agreement, dated as of October 22, 2008, among Pacific Holding, Pacific Ethanol
and the Administrative Agent.

“SPV” has the meaning
provided in Section 11.03(h) (Assignments).

“SSA Assignment and Assumption
Agreement” means the Assignment and Assumption Agreement, dated as of June 25, 2010, among Pacific Holding, Pacific Ethanol,
WestLB as administrative agent under the Pre-Petition Credit Agreement and the Administrative Agent regarding the Sponsor Support
Agreement.

“Stockton” has the meaning
set forth in the Preamble.

    	Exhibit A-36

    	 

    

“Stockton Deed of Trust”
means the Deed of Trust, Security Agreement, Financing Statement, Fixture Filing and Assignment of Leases, Rents and Security Deposits,
in form and substance reasonably satisfactory to the Lenders and the Collateral Agent, dated on or about the date of the Original
Credit Agreement, made by Stockton to Stewart Title Guaranty Company, as trustee, for the benefit of the Collateral Agent, as beneficiary.

“Stockton Heiskell GSA”
means the Grain Storage Agreement dated as of December 10, 2010 between Heiskell and Stockton, as amended by that certain Amendment
No. 1 to Grain Storage Agreement dated November 17, 2011.

“Stockton Insurance and Condemnation
Proceeds Account” has the meaning provided in Section 8.01(g) (Establishment of Project Accounts).

“Stockton Lease” means
the lease between the Stockton Port District and Stockton.

“Stockton LLC Agreement”
means the Third Amended and Restated Limited Liability Company Operating Agreement of Stockton dated as of June 29, 2010.

“Stockton Plant” means
the ethanol production facility located at Stockton, California, with a capacity of approximately fifty (50) million gallons-per-year
of denatured ethanol, including the Site on which such facility is located, and all buildings, structures, improvements, easements
and other property related thereto.

“Stockton Pledge Agreement”
means the Pledge and Security Agreement, in form and substance reasonably satisfactory to the Lenders and the Collateral Agent,
dated on or about the date of the Original Credit Agreement, among Pacific Holding, Stockton and the Collateral Agent, pursuant
to which Pacific Holding pledges one hundred percent (100%) of the Equity Interests in Stockton to the Collateral Agent.

“Stockton Revenue Event”
means the occurrence of both (i) the failure of Kinergy to have in full force and effect contracts to sell at least sixty percent
(60%) of the ethanol production capacity of the Stockton Plant at prices equal to or greater than the Floor Price and (ii) after
January 1, 2011, any event reasonably likely to result in Stockton failing to receive in cash at least ninety percent (90%) of
the revenue from the proposed California Ethanol Producer Incentive Program (“CEPIP”) set forth in the 2011
CEPIP Projections except receipt by Stockton of revenue from other sources sufficient to disqualify Stockton from CEPIP.

“Stockton Security Agreement”
means the Assignment and Security Agreement, in form and substance reasonably satisfactory to the Lenders and the Collateral Agent,
dated on or about the date of the Original Credit Agreement, made by Stockton in favor of the Collateral Agent.

“Stockton Subordination Agreement”
means that certain Subordination Agreement, dated as of the Restatement Effective Date, by and among Stockton, the Senior Collateral
Agent, and Collateral Agent.

    	Exhibit A-37

    	 

    

“Subordination Agreements”
means, collectively, the Madera Subordination Agreement, the Boardman Subordination Agreement, the Stockton Subordination Agreement
and the Burley Subordination Agreement.

“Subsidiary” of any
Person means a corporation, partnership, joint venture, limited liability company or other business entity of which a majority
of the shares of securities or other Equity Interests having ordinary voting power for the election of directors or other governing
body (other than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially
owned, or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both,
by such Person.

“Swap Contract” means
(a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps,
commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps
or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange
transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions,
currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options
to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, (b)
any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed
by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign
Exchange Master Agreement, or any other master agreement, including any such obligations or liabilities under any such master agreement
and (c) for the avoidance of doubt, includes any Interest Rate Protection Agreements and excludes any contract for the physical
sale or purchase of any commodity.

“Swap Termination Value”
means, in respect of any one or more Swap Contracts (including any Interest Rate Protection Agreements), after taking into account
the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date
such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s),
and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such
Swap Contracts, in accordance with the terms of the applicable Swap Contract, or, if no provision is made therein, as determined
based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts
(which may include a Lender or any Affiliate of a Lender).

“Tax” or “Taxes”
means any present or future taxes (including income, gross receipts, license, payroll, employment, excise, severance, stamp, documentary,
occupation, premium, windfall profits, environmental, capital stock, franchise, profits, withholding, social security (or similar),
unemployment, disability, real property, personal property, sales, use, transfer, registration, value-added, ad valorem, alternative
or add-on minimum, estimated, or other tax of any kind whatsoever), levies, imposts, duties, fees or charges (including any interest,
penalty, or addition thereof) imposed by any government or any governmental agency or instrumentality or any international or multinational
agency or commission.

    	Exhibit A-38

    	 

    

“Tax Return” means all
returns, declarations, reports, claims for refund and information returns and statements of any Person required to be filed with
respect to, or in respect of, any Taxes, including any schedule or attachment thereto and any amendment thereof.

“Term Funding Notice”
means a request for Funding of Term Loans in the form of Exhibit 2.04-A delivered in accordance with Section 2.04
(Notice of Fundings).

“Term Lenders” means,
collectively, the Tranche A-1 Lenders and the Tranche A-2 Lenders.

“Term Loan Commitment”
means the Tranche A-1 Term Loan Commitment and the Tranche A-2 Term Loan Commitment, as the context requires.

“Term Loan Commitment Percentage”
means, as to any Lender at any time, the percentage that such Lender’s Term Loan Commitment then constitutes of the relevant
Aggregate Term Commitment.

“Term Loans” means,
collectively, the Tranche A-1 Term Loans and the Tranche A-2 Term Loans.

“Term Notes” means the
promissory notes of each Borrower, substantially in the form of Exhibit 2.06, evidencing Term Loans.

“Termination Event”
means (i) a Reportable Event with respect to any ERISA Plan, (ii) the initiation of any action by any Borrower, any ERISA Affiliate
or any ERISA Plan fiduciary to terminate an ERISA Plan (other than a standard termination under Section 4041(b) of ERISA)
or the treatment of an amendment to an ERISA Plan as a termination under Section 4041(e) of ERISA, (iii) the institution of
proceedings by the PBGC under Section 4042 of ERISA to terminate an ERISA Plan or to appoint a trustee to administer any ERISA
Plan, (iv) the withdrawal of any Borrower or any ERISA Affiliate from a Multiemployer Plan during a plan year in which such Borrower
or such ERISA Affiliate was a “substantial employer” as defined in Section 4001(a)(2) of ERISA or the cessation
of operations which results in the termination of employment of twenty percent (20%) of Multiemployer Plan participants who are
employees of any Borrower or any ERISA Affiliate, (v) the partial or complete withdrawal of any Borrower or any ERISA Affiliate
from a Multiemployer Plan, or (vi) any Borrower or any ERISA Affiliate is in default (as defined in Section 4219(c)(5) of
ERISA) with respect to payments to a Multiemployer Plan.

“Title Insurance Company”
means Stewart Title Guaranty Company or such other title insurance company or companies reasonably satisfactory to the Required
Lenders.

“Title Insurance Policy”
has the meaning provided in Section 6.01(n) (Conditions to Closing - Title Insurance).

“Tranche” means, as
the case may be, the Tranche A-1 Term Loans or the Tranche A-2 Term Loans.

    	Exhibit A-39

    	 

    

“Tranche A-1 Lenders”
means those Lenders of Tranche A-1 Term Loans, as identified on Schedule 1.01(a) and each other Person that acquires
the rights and obligations of any such Lender pursuant to Section 11.03 (Assignments).

“Tranche A-1 Term Loan”
has the meaning provided in Section 2.01(a) (Term Loans).

“Tranche A-1 Term Loan Commitment”
means, with respect to each Tranche A-1 Lender, the commitment of such Tranche A-1 Lender to make Tranche A-1 Term Loans, as set
forth opposite the name of such Tranche A-1 Lender in Schedule 1.01(a), as the same may be reduced in accordance with
Section 2.07 (Termination or Reduction of Commitments).

“Tranche A-2 Lenders”
means those Lenders of Tranche A-2 Term Loans, as identified on Schedule 1.01(a) and each other Person that acquires
the rights and obligations of any such Lender pursuant to Section 11.03 (Assignments).

“Tranche A-2 Term Loan”
has the meaning provided in Section 2.01(b) (Term Loans).

“Tranche A-2 Term Loan Commitment”
means, with respect to each Tranche A-2 Lender, the commitment of such Tranche A-2 Lender to make Tranche A-2 Term Loans, as set
forth opposite the name of such Tranche A-2 Lender in Schedule 1.01(a), as the same may be reduced or increased in
accordance with Section 2.07 (Termination or Reduction of Commitments).

“Transaction Documents”
means, collectively, the Financing Documents and the Project Documents.

“Unfunded Benefit Liabilities”
means, with respect to any ERISA Plan at any time, the amount (if any) by which (i) the present value of all accrued benefits calculated
on an accumulated benefit obligation basis and based upon the actuarial assumptions used for accounting purposes (i.e.,
those determined in accordance with FASB statement No. 35 and used in preparing the ERISA Plan’s financial statements) exceeds
(ii) the fair market value of all ERISA Plan assets allocable to such benefits, determined as of the then most recent actuarial
valuation report for such ERISA Plan.

“Uniform Commercial Code”
or “UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York; provided,
in the event that, by reason of mandatory provisions of law, any or all of the perfection or priority of the security interest
in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, the
term “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of provisions
relating to such perfection or priority and for purposes of definitions related to such provisions.

“United States” or “U.S.”
means the United States of America, its fifty States and the District of Columbia.

    	Exhibit A-40

    	 

    

“United States Person”
means a “United States person” as defined in Section 7701(a)(30) of the Code.

“Voluntary Permanent Reduction
Payment” means any voluntary prepayment of principal which would be applied to reduce the outstanding principal balance
of the Revolving Loans or the Tranche A-1 Loans under either clause fourth or clause sixth of Section
3.07(d) with respect to which Borrowers' Agent has provided written notice to Administrative Agent and Extending Lenders at least
two (2) Business Days prior to the making of such prepayment that it intends such prepayment to constitute a Voluntary Permanent
Reduction Payment.

“WDG” means wet distillers
grains produced by the Borrowers at the Plants.

“Wells Fargo” means
Wells Fargo Bank, N.A.

“WestLB” means WestLB
AG, New York Branch.

 

 

    	Exhibit A-41

    	 

    

 

EXHIBIT B

to Credit Agreement

 

 

 

 

Intercreditor Agreement

 

 

Filed as Exhibit
10.8 to Pacific Ethanol, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012, filed with the
Securities Exchange Commission on November 14, 2012.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	Exhibit B-1

    	 	 

    
  

EXHIBIT 2.04-A

to Credit Agreement

[FORM OF]

REVOLVING FUNDING NOTICE

This Revolving Funding Notice (this
“Funding Notice”), dated as of [________], 20[__], is delivered to WELLS FARGO BANK,
N.A., as administrative agent (the “Administrative Agent”), pursuant to Section 2.04 of the Second Amended and
Restated Credit Agreement, dated as of October 29, 2012 (as amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”) among Pacific Ethanol Holding Co. LLC, a Delaware limited liability company (“Pacific
Holding”), Pacific Ethanol Madera LLC, a Delaware limited liability company (“Madera”), Pacific Ethanol
Columbia, LLC, a Delaware limited liability company (“Boardman”), Pacific Ethanol Stockton LLC, a Delaware limited
liability company (“Stockton”), and Pacific Ethanol Magic Valley, LLC, a Delaware limited liability company
(“Burley” and, together with Pacific Holding, Madera, Boardman and Stockton, each a
“Borrower” and collectively the “Borrowers”), as borrowers, Pacific Holding, as Borrowers’
Agent, each of the Lenders from time to time party thereto, Wells Fargo Bank, N.A., as Administrative Agent and Collateral Agent,
and Amarillo National Bank, as accounts bank. This Funding Notice sets forth certain undertakings of the Borrowers with respect
to the transactions contemplated by the Credit Agreement. Capitalized terms used herein but not otherwise defined herein shall
have the respective meanings set forth in the Credit Agreement.

WHEREAS, the Borrowers wish to propose
a Funding of Revolving Loans under the Credit Agreement in accordance with Section 2.04 of the Credit Agreement and on the terms
and conditions set forth therein and herein.

WHEREAS, to induce the Lenders to extend
credit under the Credit Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Borrowers hereby agree as follows:

Section
1. Funding Request. The Borrowers hereby irrevocably propose a Funding (the “Proposed Funding”)
of Revolving Loans in the amounts set forth below: [Note: each Funding Notice should only include those provisions applicable
to the requested Funding.]

[_____]
Dollars ($[_____])
requested to be funded as [Eurodollar Loans][and
[_____]
Dollars ($[______])
requested to be funded as][Base Rate Loans]
for application in accordance with the Budget.

The
Funding Date proposed for the Proposed Funding is [_______],
20[__]
(the “Proposed Funding Date”). The Borrowers hereby certify that this Funding Notice is being delivered to the
Administrative Agent not later than 12:00 Noon New York City time five (5) Business Days prior to the Proposed Funding Date, and
that the Proposed Funding Date is a Business Day.

    	Exhibit 2.04 - A-1

    	 

    

 

 The
Borrowers hereby request that on the Proposed Funding Date the Administrative Agent deliver by wire transfer to the Revenue Account1, in immediately available funds,
the proceeds of such Proposed Funding in the amount of [_____]
Dollars ($[_____]),
which is subject to the limits set forth in Section 2.02(a) and Section 2.02(b) of the Credit Agreement.

Section
2. Certifications. The Borrowers certify that as of the Proposed Funding Date:

(i)
each of the conditions to the Proposed Funding set forth in Article VI of the Credit Agreement have been satisfied;

(ii)
the Borrowers are in compliance with all applicable conditions set forth in Article VI of the Credit Agreement, on and as
of the Proposed Funding Date, before and after giving effect to such Proposed Funding and to the application of the proceeds therefrom;

(iii)
each of the representations and warranties made by each of the Borrowers and the Pledgor in the Financing Documents is true
and correct in all material respects (except with respect to representations and warranties that expressly refer to an earlier
date), before and after giving effect to the Proposed Funding and to the application of the proceeds therefrom;

(iv)
no Default or Event of Default has occurred and is continuing or would occur as a result of the Proposed Funding;

(v)
since April 16, 2010, no Material Adverse Effect has occurred and is continuing;

(vi)
after giving effect to the Revolving Loans requested hereunder, the aggregate principal amount of the Revolving Loans will
not exceed the Aggregate Revolving Loan Commitment as of the Proposed Funding Date;

(vii)
each Borrower has all Necessary Project Approvals required under the Credit Agreement as of
the date of this Funding Notice, and the same are (i) in full force and effect and (ii) final
and Non-Appealable, except as a result of the Cold Shutdown of the Madera Plant;2 and

(viii)
all and each of the statements contained in this Funding Notice are true and correct.

Section
3. Governing Law. This Funding Notice, and the rights and obligations of the parties hereunder shall be governed
by, and construed and interpreted in accordance with, the laws of the State of New York.

Section
4. Execution in Counterparts. This Funding Notice may be executed by the parties hereto in counterparts (and by different
parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall
constitute a single document.

The undersigned are executing this Funding
Notice not in their individual capacities but in their respective capacities as Authorized Officers of the Borrowers.

 

1 Or if otherwise agreed to
by the Administrative Agent, specify account wire instructions.

2 List any other Plants that
are in Cold Shutdown as approved in accordance with the Credit Agreement.

 

[The
remainder of this page is intentionally blank. The next page is the signature page.]

    	Exhibit 2.04 - A-2

    	 

    

IN
WITNESS WHEREOF, the undersigned have caused this Funding Notice to be duly executed and delivered as of the day and
year first written above.

	 	
        PACIFIC ETHANOL HOLDING CO. LLC

        

	 	 
	 	By:	  
	 	 	Name:
	 	 	Title:

 

	 	
        PACIFIC ETHANOL MADERA LLC

        

	 	 
	 	By:	  
	 	 	Name:
	 	 	Title:

 

	 	
        PACIFIC ETHANOL COLUMBIA, LLC

        

	 	 
	 	By:	  
	 	 	Name:
	 	 	Title:

 

	 	
        PACIFIC ETHANOL STOCKTON LLC

        

	 	 
	 	By:	  
	 	 	Name:
	 	 	Title:

 

	 	
        PACIFIC ETHANOL MAGIC VALLEY, LLC

        

	 	 
	 	By:	  
	 	 	Name:
	 	 	Title:

 

    	Exhibit 2.04 - A-3

    	 

    

 

EXHIBIT 8.03

to Credit Agreement

[FORM OF]

REVENUE ACCOUNT WITHDRAWAL CERTIFICATE

Date: [_____ __,____]

[ACCOUNTS BANK]

[ADDRESS]

Reference is made to (x) Section 8.03(b)
of the Second Amended and Restated Credit Agreement, dated as of October 29, 2012 (as amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”) among Pacific Ethanol Holding Co. LLC, a Delaware limited
liability company (“Pacific Holding”), Pacific Ethanol Madera LLC, a Delaware limited liability company (“Madera”),
Pacific Ethanol Columbia, LLC, a Delaware limited liability company (“Boardman”), Pacific Ethanol Stockton,
LLC, a Delaware limited liability company (“Stockton”), and Pacific Ethanol Magic Valley, LLC, a Delaware limited
liability company (“Burley” and, together with Pacific Holding, Madera, Boardman and Stockton, each a
“Borrower” and collectively the “Borrowers”), as borrowers, Pacific Holding, as Borrowers’
Agent, each of the Lenders from time to time party thereto, Wells Fargo Bank, N.A., as Administrative Agent (in such capacity,
the “Administrative Agent”) and Collateral Agent and Amarillo National Bank, as accounts bank (the “Accounts
Bank”) and (y) Section 8.03 of the Credit Agreement, dated as of October 29, 2012 (as amended, amended and restated,
supplemented or otherwise modified from time to time, the “Senior Credit Agreement”) among the Borrowers, Pacific
Holding, as the borrowers’ agent, each of the lenders from time to time party thereto, Wells Fargo Bank, N.A., as administrative
agent and collateral agent, Credit Suisse Loan Funding LLC, as syndication agent, and Amarillo National Bank, as accounts bank.
Capitalized terms used herein but not otherwise defined herein shall have the respective meanings set forth in the Credit Agreement.

The Borrowers hereby direct the Accounts
Bank to withdraw and transfer, from the account entitled [_____], No. [_____] (the “Revenue
Account”), on [_____], 20[__] (the “Revenue Account Withdrawal Date”),
the following amounts: [Note: each Revenue Account Withdrawal Certificate should only include those priorities relevant
on the given withdrawal date.] 

(i)                
[in accordance with Section 8.03(b)(i)(a) of the Credit Agreement, [_____] Dollars ($[____])
to the Operating Account]1 [in accordance with Section 8.03(b)(i)(b) of the Credit Agreement, [_____]
Dollars ($[____]) to the Operating Account]2;

 

1 To be included no more than 3 times per calendar week,
in respect of amounts required to pay operating expenses (other than for the cost of corn, natural gas, electricity, insurance
premiums and/or Borrower Taxes) that, in each such case, are or will become due and payable during the current calendar month
in accordance with the Budget.

2 To be included no more than 7 times per calendar week,
in respect of amounts required to pay some or all of the cost of corn, natural gas, electricity, insurance premiums and/or Borrower
Taxes that, in each such case, are or will become due and payable during the current calendar month.

 

    	Exhibit 8.03 - 1

    	 

    

(ii)              
in accordance with Section 8.03(b)(ii) of the Credit Agreement, [_____] Dollars ($[
____]) to the Maintenance Capital Expense Account;3

(iii)            
in accordance with Section 8.03(b)(iii) of the Credit Agreement (A) [_____] Dollars ($[____])
to the Senior Administrative Agent, for the account of the Priority Senior Secured Parties, for payment of Senior Fees, costs
and expenses due and payable under the Senior Financing Documents (other than principal and interest on the Senior Loans) and
(B) in accordance with Section 8.03(b)(iv) of the Credit Agreement, [_____] Dollars ($[____]) to the
Administrative Agent, for the account of the Senior Secured Parties, for payment of Fees, costs and expenses due and payable under
the Financing Documents (other than principal and interest on the Loans);4

(iv)            
in accordance with Section 8.03(b)(iv) of the Credit Agreement, to the Senior Administrative Agent, [_____]
Dollars ($[____]) for payment of interest due and payable on the Senior Loans (other than any Defaulting Lender
under the Senior Credit Agreement) based on the respective outstanding principal amounts on the date of such payment;5

(v)              
in accordance with Section 8.03(b)(v) of the Credit Agreement, to the Administrative Agent, (A) [_____]
Dollars ($[____]) for payment of interest due and payable on the Revolving Loans and the Tranche A-1 Term Loans
pro rata among the Revolving Lenders (other than any Defaulting Lender) and the Tranche A-1 Lenders based on their respective
outstanding principal amounts on the date of such payment and (B) [_____] Dollars ($[____]) for
payment of fees, expenses or Net Swap Payments owing to the Interest Rate Protection Providers;6

(vi)            
in accordance with Section 8.03(b)(vi) of the Credit Agreement, [_____] Dollars ($[____])
to the Senior Administrative Agent, for payment of any interest then due and payable on the Senior Loans pro rata among the Defaulting
Lenders under the Senior Credit Agreement based on their respective outstanding principal amounts on the date of such payment;7 

 

3 To be included in certificates for each Monthly Date
when such amounts are due and payable.

4 To be included in certificates for any date on which
such amounts are due and payable.

5 To be included in certificates for any date on which
such amounts are due and payable.

6 To be included in certificates for any date on which
such amounts are due and payable.

7 To be included in certificates for any date on which
such amounts are due and payable.

 

    	Exhibit 8.03 - 2

    	 

    

(vii)          
in accordance with Section 8.03(b)(vii) of the Credit Agreement, [_____] Dollars ($[____])
to the Administrative Agent, for payment of any interest then due and payable on the Revolving Loans pro rata among the Defaulting
Lenders based on their respective outstanding principal amounts on the date of such payment;8

(viii)        
in accordance with Section 8.03(b)(viii) of the Credit Agreement, [_____] Dollars ($[____])
to the Administrative Agent, for payment of any interest then due and payable on the Tranche A-2 Term Loans pro rata among the
Tranche A-2 Lenders based on their respective outstanding principal amounts on the date of such payment;9

(ix)            
in accordance with Section 8.03(b)(ix) of the Credit Agreement, [_____] Dollars ($[____])
to the Senior Administrative Agent, for payment of the principal amounts due and payable on the Senior Loans pro rata among the
Senior Lenders (other than any Defaulting Lender under the Senior Credit Agreement) based on their respective outstanding principal
amounts on the date of such payment;10

(x)              
in accordance with Section 8.03(b)(x) of the Credit Agreement, [_____] Dollars ($[____])
to the Senior Administrative Agent, for payment of the principal amounts due and payable on the Senior Loans pro rata among the
Senior Lenders that are Defaulting Lenders under the Senior Credit Agreement based on their respective outstanding principal amounts
on the date of such payment;11

(xi)            
in accordance with Section 8.03(b)(xi) of the Credit Agreement, [_____] Dollars ($[____])
to the Administrative Agent, for payment of Swap Termination Value due and payable with respect to the Interest Rate Protection
Agreements;12

(xii)          
in accordance with Section 8.03(b)(xii) of the Credit Agreement, [_____] Dollars [($[____]),[_____]
Dollars ($[____]) to [___________________]]13 for payment of [a] Permitted Tax Distribution[s]];14

(xiii)        
in accordance with Section 8.03(b)(xiii) of the Credit Agreement, [_____] Dollars ($[____])to
the Administrative Agent, for payment of the principal amounts due and payable on the Revolving Loans and the Tranche A-1 Term
Loans (accompanied, in the case of the Tranche A-1 Term Loans that are held by Extended Lenders, with any prepayment premium required
by Section 3.15 of the Credit Agreement) pro rata among the Revolving Lenders (other than any Defaulting Lender) and the
Tranche A-1 Lenders based on their respective outstanding principal amounts on the date of such payment;15

 

8 To be included in
certificates for any date on which such amounts are due and payable.

9 To be included in certificates for any date on which
such amounts are due and payable.

10 To be included in certificates on the Senior Maturity
Date or the date of any optional prepayment.

11 To be included in certificates on the Senior Maturity
Date or the date of any optional prepayment.

12 To be included in certificates for each Monthly Date
when such amounts are due and payable.

13 Repeat as necessary.

14 To be included provided that no Default or Event
of Default has occurred and is continuing, on each date on which a re-payment of principal of a Loan or Senior Loan is made.

15 To be included in certificates on the Maturity Date
or the date of any optional prepayment.

 

    	Exhibit 8.03 - 3

    	 

    
 

(xiv)        
in accordance with Section 8.03(b)(xiv) of the Credit Agreement, [_____] Dollars ($[____])
to the Administrative Agent, for payment of the principal amounts due and payable on the Revolving Loans pro rata among the Defaulting
Lenders based on their respective outstanding principal amounts on the date of such payment; 16

(xv)          
in accordance with Section 8.03(b)(xv) of the Credit Agreement, [_____] Dollars ($[____])
to the Administrative Agent, for payment of the principal amounts due and payable on the Tranche A-2 Term Loans pro rata among
the Tranche A-2 Lenders based on their respective outstanding principal amounts on the date of such payment;17

(xvi)        
in accordance with Section 8.03(b)(xvi) of the Credit Agreement, [_____] Dollars ($[____])
to Debt Service Reserve Account;18

(xvii)      
in accordance with Section 8.03(b)(xvii) of the Credit Agreement, [_____] Dollars ($[____])
to the Senior Administrative Agent, for the account of the Senior Lenders, for a Mandatory Prepayment of the Senior Loans in an
amount equal to one hundred percent (100%) of the cash remaining in the Revenue Account after the transfer, if any, required pursuant
to priority sixteenth of Section 8.03(b) of the Credit Agreement;19 and

(xviii)    
in accordance with Section 8.03(b)(xviii) of the Credit Agreement, [_____] Dollars ($[____])
to the Administrative Agent, for the account of the Lenders, for a Mandatory Prepayment of the Loans in an amount equal to one
hundred percent (100%) of the cash remaining in the Revenue Account after the transfer, if any, required pursuant to priority
seventeenth of Section 8.03(b) of the Credit Agreement;20 and

(xix)        
in accordance with Section 8.03(b)(xix) of the Credit Agreement, [_____] Dollars ($[____])
to the Pledgor.21

In support of such direction, the undersigned,
on behalf of the Borrowers, hereby represents and certifies, as of the date hereof and as of the Revenue Account Withdrawal Date,
as follows:

(a)               
the undersigned is an Authorized Officer of the Borrowers’ Agent;

(b)              
this Revenue Account Withdrawal Certificate is being delivered to the Accounts Bank not later than 3:00 p.m. New
York City time on the Revenue Account Withdrawal Date, and the Revenue Account Withdrawal Date is [a][the] [Business Day][Monthly
Date][Maturity Date][ date on which a re-payment of principal of a Loan is made][date of the payment and
performance in full of the Obligations];

 

16 To be included in certificates on the Maturity Date
or the date of any optional prepayment.

17 To be included in certificates on the Maturity Date
or the date of any optional prepayment.

18 To be included in certificates on each Monthly Date.

19 To be included in certificates on each Monthly Date.

20 To be included in certificates on each Monthly Date.

21 To be included in certificate following payment
and performance in full of the Obligations and Senior Obligations.

    	Exhibit 8.03 - 4

    	 

    
 

(c)               
all conditions set forth in the Credit Agreement, the Senior Credit Agreement and the Intercreditor Agreement for
the withdrawals requested hereby have been satisfied; and

(d)              
on the date hereof, no Notice of Suspension is in effect and no Default or Event of Default would occur after giving
effect to any application of funds contemplated hereby.

The undersigned is executing this Revenue
Account Withdrawal Certificate not in an individual capacity but as an Authorized Officer of the Borrowers’ Agent.

[The remainder of this page is
intentionally blank. The next page is the signature page.]

CC: ADMINISTRATIVE AGENT

SENIOR ADMINISTRATIVE AGENT

 

    	Exhibit 8.03 - 5

    	 

    

IN WITNESS WHEREOF, the undersigned has
caused this Revenue Account Withdrawal Certificate to be executed and delivered as of the day and year first above written. 

	 	
        PACIFIC ETHANOL HOLDING CO. LLC,

as Borrowers’ Agent

        

	 	 
	 	By:	  
	 	 	Name:
	 	 	Title:

 

    	Exhibit 8.03 - 6

    	 

    
 

EXHIBIT 8.04

to Credit Agreement

 

[FORM OF]

OPERATING ACCOUNT WITHDRAWAL CERTIFICATE

Date: [_____ __, ____]

[ACCOUNTS BANK]

[ADDRESS]

Reference is made
to (x) Section 8.04(b) of the Second Amended and Restated Credit Agreement, dated as of October 29, 2012 (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”) among Pacific Ethanol Holding
Co. LLC, a Delaware limited liability company (“Pacific Holding”), Pacific Ethanol Madera LLC, a Delaware limited
liability company (“Madera”), Pacific Ethanol Columbia, LLC, a Delaware limited liability company (“Boardman”),
Pacific Ethanol Stockton LLC, a Delaware limited liability company (“Stockton”), and Pacific Ethanol Magic Valley,
LLC, a Delaware limited liability company (“Burley” and, together with Pacific Holding, Madera, Boardman and
Stockton, each a “Borrower” and collectively the “Borrowers”),
as borrowers, Pacific Holding, as Borrowers’ Agent, each of the Lenders from time to time party thereto, Wells Fargo
Bank, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”) and Collateral Agent, and
Amarillo National Bank, as accounts bank (the “Accounts Bank”) and (y) Section 8.04 of the Credit Agreement,
dated as of October 29, 2012 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Senior
Credit Agreement”) among the Borrowers, Pacific Holding, as the borrowers’ agent, each of the lenders from time
to time party thereto, Wells Fargo Bank, N.A., as administrative agent and collateral agent, Credit Suisse Loan Funding LLC, as
syndication agent and Amarillo National Bank, as accounts bank. Capitalized terms used herein but not otherwise defined herein
shall have the respective meanings set forth in the Credit Agreement.

The Borrowers hereby direct the Accounts
Bank to withdraw and transfer from the account entitled [_____], No. [_____] (the “Operating
Account”), on [_____], 20[__] (the “Operating Account Withdrawal Date”),
the amounts and to the account[s], in each case as set forth on Schedule 1 attached hereto.

In support of such direction, the undersigned,
on behalf of the Borrowers, hereby represents and certifies, as of the date hereof and as of the Operating Account Withdrawal Date,
as follows:

(a)               
The undersigned is an Authorized Officer of the Borrowers’ Agent.

(b)              
This Operating Account Withdrawal Certificate is being delivered to the Accounts Bank not later than 3:00 p.m. New York
City time on the Operating Account Withdrawal Date, and the Operating Account Withdrawal Date is a Business Day.

    	Exhibit 8.04 - 1

    	 

    
 

(c)               
All conditions set forth in the Credit Agreement, the Senior Credit Agreement and the Intercreditor Agreement for the withdrawal
requested hereby have been satisfied.

(d)              
The funds to be withdrawn from the Operating Account pursuant to this Operating Account Withdrawal Certificate will be transferred
to the Local Account(s) identified on Schedule 1 hereto, for further application to the payment of amounts due and owing
by the Borrowers for Operation and Maintenance Expenses.

(e)               
A Blocked Account Agreement with respect to each Local Account identified on Schedule 1 hereto has been executed
and delivered and is in full force and effect.

(f)               
After giving effect to the transfers requested hereby, the amounts on deposit in and standing to the credit of any Local
Accounts permitted pursuant to Section 7.02(i) of the Credit Agreement will not exceed, in the aggregate, two hundred thousand
Dollars ($200,000).

(g)              
No Notice of Suspension is in effect and no Default or Event of Default would occur after giving effect to the application
of funds contemplated hereby.

The undersigned officer is executing this
Operating Account Withdrawal Certificate not in an individual capacity but as an Authorized Officer of the Borrowers’ Agent.

[The remainder of this page is
intentionally blank. The next page is the signature page.]

CC: ADMINISTRATIVE AGENT

        SENIOR ADMINISTRATIVE AGENT

 

    	Exhibit 8.04 - 2

    	 

    
 

 

IN WITNESS WHEREOF, the undersigned has
caused this Operating Account Withdrawal Certificate to be executed and delivered as of the day and year first above written.

	 	
        PACIFIC ETHANOL HOLDING CO. LLC,

as Borrowers’ Agent

        

	 	 
	 	By:	  
	 	 	Name:
	 	 	Title:

 

    	Exhibit 8.04 - 3

    	 

    

Schedule 1 to

Operating Account

Withdrawal Certificate

WITHDRAWALS FROM OPERATING ACCOUNT

[details to be attached]

I.     Withdrawals from Operating Account to permitted Local
Account(s).

	Local Account:	Amount	Wire Instructions
	 	 	 
	 	$	 

 

 

    	Exhibit 8.04 - 4

    	 

    
 

EXHIBIT 8.06

to Credit Agreement

[FORM OF]

DEBT SERVICE RESERVE RELEASE CERTIFICATE

Date: [_____ __, ____]

[ACCOUNTS BANK]

[ADDRESS]

Reference is made to (x) Section 8.06(c)
of the Second Amended and Restated Credit Agreement, dated as of October 29, 2012 (as amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”) among Pacific Ethanol Holding Co. LLC, a Delaware limited
liability company (“Pacific Holding”), Pacific Ethanol Madera LLC, a Delaware limited liability company (“Madera”),
Pacific Ethanol Columbia, LLC, a Delaware limited liability company (“Boardman”), Pacific Ethanol Stockton LLC,
a Delaware limited liability company (“Stockton”), and Pacific Ethanol Magic Valley, LLC, a Delaware limited
liability company (“Burley” and, together with Pacific Holding, Madera, Boardman and Stockton, each a
“Borrower” and collectively the “Borrowers”), as borrowers, Pacific Holding, as Borrowers’
Agent, each of the Lenders from time to time party thereto, Wells Fargo Bank, N.A., as Administrative Agent (in such capacity,
the “Administrative Agent”) and Collateral Agent, and Amarillo National Bank, as accounts bank (the “Accounts
Bank”) and (y) Section 8.06 of the Credit Agreement, dated as of October 29, 2012 (as amended, amended and restated,
supplemented or otherwise modified from time to time, the “Senior Credit Agreement”) among the Borrowers, Pacific
Holding, as the borrowers’ agent, each of the lenders from time to time party thereto, Wells Fargo Bank, N.A., as administrative
agent and collateral agent, Credit Suisse Loan Funding LLC, as syndication agent, and Amarillo National Bank, as accounts bank.
Capitalized terms used herein but not otherwise defined herein shall have the respective meanings set forth in the Credit Agreement.

The Borrowers hereby direct the Accounts
Bank to transfer [$_________] (the “Released Amount”) from the account entitled [_____], No. [_____]
(the “Debt Service Reserve Account”) to the account entitled [_____], No. [_____]
(the “Revenue Account”), on [_____], 20[__] (the “Debt Service Release
Date”).

In support of such direction, the undersigned,
on behalf of the Borrowers, hereby represents and certifies, as of the date hereof and as of the Debt Service Release Date, as
follows:

(a)               
The undersigned is an Authorized Officer of the Borrowers’ Agent.

(b)              
This Debt Service Reserve Release Certificate is being delivered to the Accounts Bank not later than 3:00 p.m. New York
City time at least 10 Business Days prior to the Debt Service Release Date, and the Debt Service Release Date is a Business Day
and a Monthly Date.

    	Exhibit 8.06 - 1

    	 

    

(c)               
All conditions set forth in the Credit Agreement, the Senior Credit Agreement and the Intercreditor Agreement for the withdrawal
requested hereby have been satisfied.

(d)              
The Released Amount is the difference between (x) [$________], which is the aggregate total amount of all funds on deposit
in or standing to the credit of the Debt Service Reserve Account and (y) [$_________], which is the Debt Service Reserve Requirement,
in each case as of the Debt Service Release Date and prior to giving effect to the application of funds contemplated hereby.

(e)               
No Notice of Suspension is in effect and no Default or Event of Default would occur after giving effect to the application
of funds contemplated hereby.

The undersigned officer is executing this
Debt Service Reserve Release Certificate not in an individual capacity but as an Authorized Officer of the Borrowers’ Agent.

[The remainder of this page is
intentionally blank. The next page is the signature page.]

CC: ADMINISTRATIVE AGENT

        SENIOR ADMINISTRATIVE AGENT

 

    	Exhibit 8.06 - 2

    	 

    
 

 

IN WITNESS WHEREOF, the undersigned has
caused this Debt Service Reserve Release Certificate to be executed and delivered as of the day and year first above written.

	 	
        PACIFIC ETHANOL HOLDING CO. LLC,

as Borrowers’ Agent

        

	 	 
	 	By:	  
	 	 	Name:
	 	 	Title:

 

    	Exhibit 8.06 - 3

    	 

    

EXHIBIT 8.07

to Credit Agreement

[FORM OF]

INSURANCE AND CONDEMNATION PROCEEDS REQUEST CERTIFICATE

Date: [_____ __, ____]

[ACCOUNTS BANK]

[ADDRESS]

[Administrative Agent]

[Senior Administrative Agent]

 

Reference is made
to (x) Section 8.07[(c)][(d)] of the Second Amended and Restated Credit Agreement, dated as of October
29, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”)
among Pacific Ethanol Holding Co. LLC, a Delaware limited liability company (“Pacific Holding”), Pacific Ethanol
Madera LLC, a Delaware limited liability company (“Madera”), Pacific Ethanol Columbia, LLC, a Delaware limited
liability company (“Boardman”), Pacific Ethanol Stockton LLC, a Delaware limited liability company (“Stockton”),
and Pacific Ethanol Magic Valley, LLC, a Delaware limited liability company (“Burley” and, together with Pacific
Holding, Madera, Boardman and Stockton, each a “Borrower” and collectively the “Borrowers”),
as borrowers, Pacific Holding, as Borrowers’ Agent, each of the Lenders from time to time party thereto, Wells Fargo
Bank, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”) and Collateral Agent, and
Amarillo National Bank, as accounts bank and (y) Section 8.07 of the Credit Agreement, dated as of October 29, 2012 (as amended,
amended and restated, supplemented or otherwise modified from time to time, the “Senior Credit Agreement”) among
the Borrowers, Pacific Holding, as the borrowers’ agent, each of the lenders from time to time party thereto, Wells Fargo
Bank, N.A., as administrative agent and collateral agent, Credit Suisse Loan Funding LLC, as syndication agent, and Amarillo National
Bank, as accounts bank. Capitalized terms used herein but not otherwise defined herein shall have the respective meanings set forth
in the Credit Agreement.

The Borrowers hereby
direct the Accounts Bank to withdraw and pay from the account entitled [_____], No. [_____] (the “[Madera][Boardman][Stockton][Burley]
Insurance and Condemnation Proceeds Account”), on [_____], 20[___] (the “Insurance
and Condemnation Proceeds Withdrawal Date”), the amounts and to the payees, in each case as set forth on Schedule
1 attached hereto.

In support of such
direction, the undersigned, on behalf of the Borrowers, hereby represents and certifies, as of the date hereof and as of the Insurance
and Condemnation Proceeds Withdrawal Date, as follows:

(a)               
the undersigned is an Authorized Officer of the Borrowers’ Agent;

    	Exhibit 8.07 - 1

    	 

    

(b)              
this Insurance and Condemnation Proceeds Request Certificate is being delivered to the Accounts Bank, the Senior
Administrative Agent and the Administrative Agent [in connection with a transfer or withdrawal of funds pursuant to Section 8.07(c)
of the Credit Agreement and/or Section 8.07 of the Senior Credit Agreement, no fewer than three (3) Business Days in advance
of][in connection with a transfer or withdrawal of funds pursuant to Section 8.07(d) of the Credit Agreement and/or
Section 8.07 of the Senior Credit Agreement, not later than 12:00 Noon New York City time on] the Insurance and Condemnation
Proceeds Withdrawal Date and the Insurance and Condemnation Proceeds Withdrawal Date is a Business Day;

(c)               
all conditions set forth in the Credit Agreement, the Senior Credit Agreement and the Intercreditor Agreement for
the withdrawals requested hereby have been satisfied;

(d)              
the funds to be withdrawn from the [Madera][Boardman][Stockton][Burley] Insurance
and Condemnation Proceeds Account pursuant to this Insurance and Condemnation Proceeds Request Certificate will be applied directly
for the replacement or repair of damaged assets relating to the [Madera][Boardman][Stockton][Burley]
Plant to which such [Insurance Proceeds] [Condemnation Proceeds] relate, in accordance with [Section 8.07(c)
of the Credit Agreement and/or Section 8.07 of the Senior Credit Agreement][Section 8.07(d) of the Credit Agreement
and/or Section 8.07 of the Senior Credit Agreement and the Restoration or Replacement Plan attached hereto which has been approved
by the Required Senior Lenders or, after the Senior Discharge Date, the Required Lenders of the Revolving Loan Class and by the
Independent Engineer in accordance with Section 8.07(d)(i) of the Credit Agreement and/or Section 8.07 of the Senior
Credit Agreement];

(e)               
no withdrawal has been made from any other Project Account to pay the amounts requested hereby;

(f)               
this Insurance and Condemnation Proceeds Request Certificate is being delivered, and the withdrawals specified herein
are being requested, in accordance with the Credit Agreement, the Senior Credit Agreement, the Intercreditor Agreement and the
other Transaction Documents; and

(g)              
no Notice of Suspension has been delivered that has not been withdrawn and no Default or Event of Default would occur
as a result of the transfers or withdrawals requested hereby.

The undersigned officer
is executing this Insurance Proceeds Request Certificate not in an individual capacity but as an Authorized Officer of the Borrowers’
Agent.

[The remainder
of this page is intentionally blank. The next page is the signature page.]

    	Exhibit 8.07 - 2

    	 

    

IN WITNESS WHEREOF, the undersigned has
caused this Insurance and Condemnation Proceeds Request Certificate to be executed and delivered as of the day and year first above
written.

	 	
        PACIFIC ETHANOL HOLDING CO. LLC,

as Borrowers’ Agent

        

	 	 
	 	By:	  
	 	 	Name:
	 	 	Title:

 

 

 

 

    	Exhibit 8.07 - 3

    	 

    

 

Schedule 1 to

Insurance and Condemnation Proceeds Request Certificate

WITHDRAWALS FROM [MADERA] [BOARDMAN]
[STOCKTON] [BURLEY]

INSURANCE AND CONDEMNATION PROCEEDS
ACCOUNT

[details to be attached]

I.                  
Withdrawals from [Madera][Boardman][Stockton][Burley] Insurance and Condemnation
Proceeds Account for the replacement or repair of damaged assets.

	Payee	Amount	Wire Instructions
	 	 	 
	 	$	 

 

 

 

 

    	Exhibit 8.07 - 4

    	 

    

 

 

 

EXHIBIT 8.08

to Credit Agreement

[FORM OF]

EXTRAORDINARY PROCEEDS RELEASE NOTICE

Date: [_____ __, ____]

[ACCOUNTS BANK]

[ADDRESS]

Reference is made to (x) Section 8.08
[(b)][(c)](i) of the Second Amended and Restated Credit Agreement, dated as of October 29, 2012 (as amended,
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) among Pacific Ethanol
Holding Co. LLC, a Delaware limited liability company (“Pacific Holding”), Pacific Ethanol Madera LLC, a Delaware
limited liability company (“Madera”), Pacific Ethanol Columbia, LLC, a Delaware limited liability company (“Boardman”),
Pacific Ethanol Stockton LLC, a Delaware limited liability company (“Stockton”), and Pacific Ethanol Magic Valley,
LLC, a Delaware limited liability company (“Burley” and, together with Pacific Holding, Madera, Boardman and
Stockton, each a “Borrower” and collectively the “Borrowers”),
as borrowers, Pacific Holding, as Borrowers’ Agent, each of the Lenders from time to time party thereto, Wells Fargo
Bank, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”) and Collateral Agent, and
Amarillo National Bank, as accounts bank and (y) Section 8.08 of the Credit Agreement, dated as of October 29, 2012 (as amended,
amended and restated, supplemented or otherwise modified from time to time, the “Senior Credit Agreement”) among
the Borrowers, Pacific Holding, as the borrowers’ agent, each of the lenders from time to time party thereto, Wells Fargo
Bank, N.A., as administrative agent and collateral agent, Credit Suisse Loan Funding LLC, as syndication agent, and Amarillo National
Bank, as accounts bank. Capitalized terms used herein but not otherwise defined herein shall have the respective meanings set forth
in the Credit Agreement.

The Borrowers hereby direct the Accounts
Bank to withdraw and transfer, from the account entitled [_____], No. [_____] (the “Extraordinary
Proceeds Account”), on [_____], 20[__] (the “Extraordinary Proceeds Release Date”),
[_____] Dollars ([$_____]) for deposit into the Revenue Account.

In support of such direction, the undersigned,
on behalf of the Borrowers, hereby represents and certifies, as of the date hereof and as of the Extraordinary Proceeds Release
Date, as follows:

(a)               
The undersigned is an Authorized Officer of the Borrowers’ Agent.

(b)              
This Extraordinary Proceeds Release Notice is being delivered to the Accounts Bank not later than 12:00 Noon New
York City time on the Extraordinary Proceeds Release Date, and the Extraordinary Proceeds Release Date is a Business Day.

    	Exhibit 8.08 - 5

    	 

    

(c)               
All conditions set forth in the Credit Agreement, the Senior Credit Agreement and the Intercreditor Agreement for
the transfer requested hereby have been satisfied.

[(d)In the case of transfers
requested pursuant to Section 8.08(b)(i) of the Credit Agreement and/or Section 8.08 of the Senior Credit Agreement,
the aggregate total amount of all proceeds of asset disposals deposited in or credited to the Extraordinary Proceeds Account during
the Fiscal Year in which this request is being made is less than one million Dollars ($1,000,000) (including any amounts previously
withdrawn from the Extraordinary Proceeds Account during this Fiscal Year in accordance with Section 8.08(b)(i) of the
Credit Agreement and/or Section 8.08 of the Senior Credit Agreement pursuant to any previous Extraordinary Proceeds Release Notice).]

[(d)In the case of transfers
requested pursuant to Section 8.08(c)(i) of the Credit Agreement and/or Section 8.08 of the Senior Credit Agreement,
the aggregate total amount of all Project Document Termination Payments deposited in or credited to the Extraordinary Proceeds
Account during the Fiscal Year in which this request is being made is less than one million Dollars ($1,000,000) (including any
amounts previously withdrawn from the Extraordinary Proceeds Account during this Fiscal Year in accordance with Section 8.08(c)(i) of
the Credit Agreement and/or Section 8.08 of the Senior Credit Agreement pursuant to any previous Extraordinary Proceeds Release
Notice).]

(e)No Notice of Suspension is in effect
and no Default or Event of Default would occur after giving effect to any application of funds contemplated hereby.

The undersigned officer is executing this
Extraordinary Proceeds Release Notice not in an individual capacity but as an Authorized Officer of the Borrower’s Agent.

[The remainder of this page is
intentionally blank. The next page is the signature page.]

CC: SENIOR ADMINISTRATIVE AGENT AND ADMINISTRATIVE AGENT

    	Exhibit 8.08 - 6

    	 

    

IN WITNESS WHEREOF, the undersigned has
caused this Extraordinary Proceeds Release Notice to be executed and delivered as of the day and year first above written.

	 	
        PACIFIC ETHANOL HOLDING CO. LLC,

as Borrowers’ Agent

        

	 	 
	 	By:	  
	 	 	Name:
	 	 	Title:

 

 

 

 

    	Exhibit 8.08 - 7

    	 

    
 

EXHIBIT 11.03

to Credit Agreement

 

[FORM OF]

LENDER ASSIGNMENT AGREEMENT

This LENDER ASSIGNMENT AGREEMENT (this “Agreement”),
dated as of [_________], is by and between [____________] (the “Assignor”) and [____________]
(the “Assignee”).

RECITALS

WHEREAS, the Assignor is party to the
Second Amended and Restated Credit Agreement, dated as of October 29, 2012 (as amended, restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”) among Pacific Ethanol Holding Co. LLC, a Delaware limited liability
company (“Pacific Holding”), Pacific Ethanol Madera LLC, a Delaware limited liability company (“Madera”),
Pacific Ethanol Columbia, LLC, a Delaware limited liability company (“Boardman”), Pacific Ethanol Stockton LLC,
a Delaware limited liability company (“Stockton”), and Pacific Ethanol Magic Valley, LLC, a Delaware limited
liability company (“Burley” and, together with Pacific Holding, Madera, Boardman and Stockton, each a
“Borrower” and collectively the “Borrowers”), as borrowers, Pacific Holding, as Borrowers’
Agent, each of the Lenders from time to time party thereto, Wells Fargo Bank, N.A., as Administrative Agent (in such capacity,
the “Administrative Agent”) and Collateral Agent, and Amarillo National Bank, as accounts bank;

WHEREAS, Assignor desires to assign certain
of its interests under the Credit Agreement to Assignee in accordance with Section 11.03(b) thereof;

WHEREAS, as provided under the Credit
Agreement, Assignor is a Lender of [Tranche A-1 Term Loans][Tranche A-2 Term Loans][Revolving Loans] that
are [not]1 Extended Loans and, as such, as of the date hereof has the outstanding Commitments and has
disbursed the outstanding Loans as set forth in Annex A hereto;

WHEREAS, Assignee is [not]
an Affiliated Lender;

WHEREAS, Assignor proposes to sell, assign
and transfer to the Assignee, and the Assignee proposes to accept and assume from the Assignor, a [___] percent ([__]%)
interest in all of the rights and obligations of the Assignor under the Credit Agreement and the other Financing Documents (which
includes the outstanding Loans disbursed by and owing to, and the undisbursed Commitments of, Assignor), all on the terms and subject
to the conditions of this Agreement (such interest in such rights and obligations being hereinafter referred to as the “Assigned
Interest”); and

WHEREAS, after giving effect to the assignment
and assumption under this agreement, the respective Loans and Commitments of Assignor and Assignee shall be in the amounts set
forth on Annex A.

NOW, THEREFORE, in consideration of
the foregoing and the mutual agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

 

1 Delete for Extended Loans.

    	Exhibit 11.03 - 1

    	 

    

Section
1. Definitions. All capitalized terms not otherwise defined herein shall have the respective meanings set forth in
the Credit Agreement.

Section
2. Assignment.

(a)
As of the effective date set forth on the signature page to this Agreement (the “Effective Date”), subject
to and in accordance with the Credit Agreement, the Assignor irrevocably sells, transfers, conveys and assigns, without recourse,
representation or warranty (except as expressly set forth herein), to Assignee, and the Assignee irrevocably purchases from the
Assignor, the Assigned Interest, which shall include (i) all of Assignor’s rights and obligations in its capacity as a Lender
with respect to the Assigned Interest under the Credit Agreement, each other Financing Document, and any other documents or instruments
delivered pursuant thereto or in connection therewith to the extent related to the Assigned Interest and (ii) to the extent
permitted to be assigned under applicable Law, all claims, suits, causes of action and any other right of the Assignor (in its
capacity as a Lender), to the extent related to the Assigned Interest, against any Person, whether known or unknown, arising under
or in connection with the Credit Agreement, each other Financing Document, and any other documents or instruments delivered pursuant
thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not
limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity (the foregoing
rights, obligations and interests, collectively, the “Assigned Rights”).

(b)
Upon acceptance and recording of the assignment and assumption made pursuant to this Agreement by the Administrative Agent,
from and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest and the
Assigned Rights (including all payments of principal, interest, fees and other amounts) to the Assignee. The Assignor and the
Assignee shall make all appropriate adjustments in payments by the Administrative Agent for periods prior to the Effective Date
or with respect to the making of this assignment directly between themselves. Each of the Assignor and the Assignee agrees that
if it receives any amount under the Credit Agreement or any other Financing Document that is for the account of the other, it
shall hold the same for the other to the extent of the other’s interest therein and shall pay promptly the same to the other.2

Section
3. [Payments. As a condition to the Effective Date, Assignee shall pay to the Administrative Agent
in the lawful currency of the United States and in immediately available funds the processing and recordation fee of three thousand
five hundred Dollars ($3,500), without set-off, counterclaim or deduction of any kind.]

Section
4. Representations, Warranties and Undertakings.

(a)
The Assignor (i) represents and warrants that (A) it is the legal and beneficial owner of the Assigned Interest and such
Assigned Interest is free and clear of any Lien or adverse claim and (B) it has full power and authority, and has taken all action
necessary, to execute and deliver this Agreement and to consummate the transactions contemplated hereby; and (ii) makes no representation
or warranty and assumes no responsibility with respect to (A) any statements, warranties or representations made in or in
connection with the Credit Agreement or the other Financing Documents or the execution, legality, validity, enforceability or genuineness,
or sufficiency of value of the Credit Agreement, the other Financing Documents, or any other instrument or document furnished pursuant
thereto or in connection therewith or (B) the financial condition of any Borrower, any other Loan Party or any Project Party
or the performance or observance by any Borrower or any other Person of any of its obligations under the Credit Agreement, any
other Financing Document, or any other instrument or document furnished pursuant thereto or in connection therewith.

 

 

2 Assignor and Assignee to agree to treatment of Capitalized
Interest, if any.

    	Exhibit 11.03 - 2

    	 

    

(b)
The Assignee (i) represents and warrants that it (A) has full power and authority, and has taken all action necessary, to
execute and deliver this Agreement and to consummate the transactions contemplated hereby and to become a Lender under the Credit
Agreement and the other Financing Documents, and (B) meets all requirements of an Eligible Assignee, (ii) acknowledges and confirms
that it has received a copy of the Credit Agreement, each other Financing Document and such other documents and information as
it has deemed appropriate to make its own credit analysis and decision to enter into this Agreement and to purchase the Assigned
Interest and assume the Assigned Rights, on the basis of which it has made such analysis and decision independently and without
reliance on the Administrative Agent or any other Senior Secured Party, (iii) agrees that it will, independently and without reliance
upon the Administrative Agent, any Borrower, or any other Senior Secured Party and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement
or any other Financing Document, (iv) appoints and authorizes each Agent to take such action as agent on its behalf and to exercise
such powers under the Credit Agreement or the other Financing Documents as are delegated to such Agent by the terms thereof and
(v) will perform in accordance with their terms all of the obligations that by the terms of the Financing Documents are required
to be performed by it as a Lender. The Assignee further confirms and agrees that in becoming a Lender and in making its Loans under
the Credit Agreement, such actions have and will be made without recourse to, or representation or warranty by, any Senior Secured
Party.

(c)
The Assignee further agrees to furnish the tax form required by Section 4.07(e) (if so required) of the Credit Agreement
no later than the Effective Date.

Section
5. Effectiveness.

(a)
The effectiveness of the sale, assignment and transfer hereunder is subject to (i) the due execution and delivery of this
Agreement by the Assignor and the Assignee, (ii) the receipt by the Assignor of the payment made as consideration for the sale,
assignment and transfer contemplated in Section 2 hereof, (iii) consent by the Administrative Agent to this Agreement and the assignment
contemplated hereby[, (iv) the receipt by the Administrative Agent of the processing and recordation fee provided for in
Section 3 hereof] and [(v)] the registration of such assignment by the Administrative Agent in the Register
in accordance with Section 11.03 of the Credit Agreement.

    	Exhibit 11.03 - 3

    	 

    

(b)
Simultaneously with the execution and delivery by the parties hereto of this Agreement to the Administrative Agent for its
recording in the Register, the Assignor shall deliver its Note (if any) to the Administrative Agent and may request that new Notes
be executed and delivered to [the Assignor and] the Assignee and reflecting [the respective amounts of the reduced
undisbursed Commitment and outstanding principal of Assignor and] the assigned and assumed outstanding principal and undisbursed
Commitment of the Assignee (plus, if the Assignee is already a Lender, the amount of its outstanding principal and undisbursed
Commitment immediately prior to the assignment effected hereby). Any such new Note shall carry the rights to unpaid accrued interest
that were carried by any applicable superseded Note(s) such that no loss of interest shall result therefrom. Any applicable new
Note executed and delivered in accordance with the foregoing shall have set forth thereon a legend substantially in the following
form:

“This Note is issued in replacement of [describe
replaced note] and, notwithstanding the date of this Note, this Note carries all of the rights to unpaid interest that were
carried by such replaced Note, such that no loss of interest shall result from any such replacement.”

If the Assignee is already a Lender, it
shall (promptly following its receipt of such new Note payable to it) return to the Borrower the prior Note, if any, held by it.

(c)
Except as otherwise provided in the Credit Agreement, effective as of the Effective Date:

(i)
the Assignee shall be deemed automatically to have become a party to, and the Assignee agrees that it will be bound by the
terms and conditions set forth in, the Credit Agreement, and shall have all the rights and obligations of a “Lender”
under the Credit Agreement and the other Financing Documents as if it were an original signatory thereto or an original Lender
thereunder with respect to the Assigned Interest and the Assigned Rights; and

(ii)
the Assignor shall relinquish its rights (but shall continue to be entitled to the benefits of Sections 11.07 (Costs
and Expenses) and 11.09 (Indemnification by the Borrowers) of the Credit Agreement) and be released from its obligations
under the Credit Agreement and the other Financing Documents to the extent specified herein.

Section
6. Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of
New York, United States of America.

Section
7. Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together
shall constitute one and the same agreement. Delivery of an executed counterpart of this Agreement by telecopy or portable document
format (“pdf”) shall be effective as delivery of a manually executed counterpart of this Agreement.

Section
8. Further Assurances. The Assignor and the Assignee hereby agree to execute and deliver such other instruments,
and take such other action, as either party or the Administrative Agent may reasonably request in connection with the transactions
contemplated by this Agreement including, without limitation, the delivery of any notices to the Borrowers or the Agents that may
be required in connection with the assignment contemplated hereby.

    	Exhibit 11.03 - 4

    	 

    

Section
9. Binding Effect; Amendment. This Agreement shall be binding upon and inure to the benefit of the parties and their
respective successors and assigns, subject, however, to the provisions of the Credit Agreement. No provision of this Agreement
may be amended, waived or otherwise modified except by an instrument in writing signed by each party hereto and by the Administrative
Agent.

Section
10. Administrative Agent Enforcement. The Administrative Agent shall be entitled to rely upon and enforce this Agreement
against the Assignor and the Assignee in all respects.

[The
remainder of this page is intentionally blank. The next page is the signature page.]

 

 

 

 

    	Exhibit 11.03 - 5

    	 

    

IN WITNESS WHEREOF, the Assignor and the Assignee have caused
this Lender Assignment Agreement to be executed by their duly authorized officers.

The effective date for this Agreement is [the date
this Agreement is acknowledged and accepted by the Administrative Agent [and the Borrowers’ Agent3]]
[____________, 20[__] (the “Trade Date”)].

	 	
        [ASSIGNOR]

        

	 	 
	 	By:	  
	 	 	Name:
	 	 	Title:

	 	
        [ASSIGNEE]

        

	 	 
	 	By:	  
	 	 	Name:
	 	 	Title:

 

 

Accepted and Acknowledged

this ___ day of _______, 20___

 

WELLS FARGO BANK, N.A.,

as Administrative Agent

 

By: __________________________________

Name:

Title:

 

[4Accepted and Acknowledged

this ___ day of _______, 20___

 

PACIFIC ETHANOL HOLDING CO. LLC,

as Borrowers’ Agent

 

By: __________________________________

Name:

Title:]

 

 

 

3 Only if required pursuant to definition of Eligible
Assignee.

4 Only if required pursuant to definition of Eligible
Assignee.

 

    	Exhibit 11.03 - 6

    	 

    

 

 

Annex A

to Lender Assignment Agreement

[Note: Include only those Loans that Assignor has an
interest in.]

	Loan5	Assignor’s

Undisbursed

Commitment

Pre-Assignment	Assignor’s

Outstanding

Loans

Pre-

Assignment	Percentage

(of

Assignor’s

interests)

Assigned	Assignor’s

Undisbursed

Commitment

Post-

Assignment	Assignor’s

Outstanding

Loans

Post-

Assignment	Assignee’s

Undisbursed

Commitment

Post-

Assignment*	Assignee’s

Outstanding

Loans

Post-

Assignment*
	Tranche A-1 Term Loans 	$ 	$ 	%	$ 	$ 	$ 	$ 
	Tranche A-2 Term Loans 	N/A	$ 	%	N/A 	$ 	N/A 	$ 
	Revolving Loans 	$ 	$ 	%	$ 	$ 	$ 	$ 

 

 

 

 

* If
Assignee is already a Lender, this number should be calculated taking into account only the Commitments and Loans assumed by Assignee
pursuant to this Agreement.

 

 

 

 

 

5 [The Loans are [not]† Extended
Loans. †Delete for Extended Loans.][Assignment to specify treatment of Capitalized Interest, if any.]

 

    	Exhibit 11.03 - 7

    	 

    
 

Exhibit 11.21

To

The SECOND AMENDED AND RESTATED
CREDIT AGREEMENT (the “Agreement”), dated as of October 29, 2012, by and among PACIFIC ETHANOL HOLDING CO. LLC, a Delaware
limited liability company (“Pacific Holding”), PACIFIC ETHANOL MADERA LLC, a Delaware limited liability company (“Madera”),
PACIFIC ETHANOL COLUMBIA, LLC, a Delaware limited liability company (“Boardman”), PACIFIC ETHANOL STOCKTON LLC, a Delaware
limited liability company (“Stockton”), and PACIFIC ETHANOL MAGIC VALLEY, LLC, a Delaware limited liability company
(“Burley” and, together with Pacific Holding, Madera, Boardman and Stockton, the “Borrowers”), Pacific
Holding, as Borrowers’ Agent (the “Borrowers’ Agent”), each of the Lenders from time to time party thereto,
WELLS FARGO BANK, N.A., as administrative agent for the Lenders (the “Bank”), WELLS FARGO BANK, N.A., as collateral
agent for the Senior Secured Parties and AMARILLO NATIONAL BANK, as accounts bank. Capitalized terms used but not defined herein
have the meanings given to such terms in the Agreement.

 

 

I hereby certify
that I am authorized to deliver this Exhibit 11.21 on behalf of the Borrowers and the Borrowers’ Agent (collectively, the
“Organization”), and hereby further certify that the names, titles, telephone numbers, email addresses and specimen
signatures set forth below identify the persons authorized to provide direction and initiate or confirm transactions, including
funds transfer instructions, on behalf of the Organization, and that the option checked in Part C of this Exhibit 11.21 is the
security procedure selected by the Organization for use in verifying that a funds transfer instruction received by the Bank is
that of the Organization.

The Organization
has reviewed each of these security procedures and has determined that the option checked in Part C of this Exhibit 11.21 best
meets its requirements; given the size, type and frequency of the instructions it will issue to the Bank. By selecting the security
procedure specified in Part C of this Exhibit 11.21, the Organization acknowledges that it has elected to not use the other security
procedures described below and agrees to be bound by any funds transfer instruction, whether or not authorized, issued in its name
and accepted by the Bank in compliance with the particular security procedure chosen by the Organization.

NOTICE: The
security procedure selected by the Organization will not be used to detect errors in the funds transfer instructions given by the
Organization. If a funds transfer instruction describes the beneficiary of the payment inconsistently by name and account number,
payment may be made on the basis of the account number even if it identifies a person different from the named beneficiary. If
a funds transfer instruction describes a participating financial institution inconsistently by name and identification number,
the identification number may be relied upon as the proper identification of the financial institution. Therefore, it is important
that the Organization take such steps as it deems prudent to ensure that there are no such inconsistencies in the funds transfer
instructions it sends to the Bank.

    	Exhibit 11.21 - 1

    	 

    

Part A

Name, Title, Telephone
Number, Email Address and Specimen Signature

for
person(s) designated to provide direction, including but not limited to funds transfer instructions, and
to otherwise act on behalf of the Organization

 

	Name	Title	Telephone Number	Email Address	Specimen Signature
	 	 	 	 	 
	Neil M. Koehler	President	916-403-2126	neilk@pacificethanol.net	/s/ Neil M. Koehler
	Bryon T. McGregor	CFO	916-403-2710	bmcgregor@pacificethanol.net	/s/ Bryon T. McGregor
	 	 	 	 	  
	 	 	 	 	 
	_________________	________________	________________	_____________	  ________________

 

[list more if desired]

 

 

Part B

 

Name,
Title, Telephone Number and Email Address for

person(s)
designated to confirm funds transfer instructions

 

	Name	Title	Telephone Number	Email Address
	 	 	 	 
	Michael Kramer	Treasurer	916-403-2738	mkramer@pacificethanol.net
	Rebecca Lane	Staff Accountant-Finance	916-403-2725	rlane@pacificethanol.net
	 	 	 	 
	 	 	 	 
	___________________	____________________	________________	_________________

 

[list more if desired]

 

    	Exhibit 11.21 - 2

    	 

    

 

 

Part C

 

Means
for delivery of instructions and/or confirmations 

 

The security procedure to be used
with respect to funds transfer instructions is checked below:

 

SOption
1. Confirmation by telephone call-back. The Bank shall confirm funds transfer instructions by telephone call-back
to a person at the telephone number designated on Part B above. The person confirming the funds transfer instruction shall be a
person other than the person from whom the funds transfer instruction was received, unless only one person is designated in both
Parts A and B of this Exhibit 11.21.

SCHECK
box, if applicable:

			If the Bank is unable to obtain confirmation by telephone call-back, the Bank may, at its discretion,
confirm by email, as described in Option 2.

 

£Option
2. Confirmation by email. The Bank shall confirm funds transfer instructions by email
to a person at the email address specified for such person in Part B of this Schedule. The person confirming the funds transfer
instruction shall be a person other than the person from whom the funds transfer instruction was received, unless only one person
is designated in both Parts A and B of this Exhibit 11.21. The Organization understands the risks associated with communicating
sensitive matters, including time sensitive matters, by email. The Organization further acknowledges that instructions and data
sent by email may be less confidential or secure than instructions or data transmitted by other methods. The Bank shall not be
liable for any loss of the confidentiality of instructions and data prior to receipt by the Bank. 

£CHECK
box, if applicable:

If the Bank is unable to obtain
confirmation by email, the Bank may, at its discretion, confirm by telephone call-back, as described in Option 1.

 

£Option
3. Delivery of funds transfer instructions by password protected file transfer system only - no confirmation. The Bank
offers the option to deliver funds transfer instructions through a password protected file transfer system. If the Organization
wishes to use the password protected file transfer system, further instructions will be provided by the Bank. If the Organization
chooses this Option 3, it agrees that no further confirmation of funds transfer instructions will be performed by the Bank. 

 

£Option
4. Delivery of funds transfer instructions by password protected file transfer system with confirmation. Same as Option
3 above, but the Bank shall confirm funds transfer instructions by £ telephone call-back
or £ email (must check at least one, may check both) to
a person at the telephone number or email address designated on Part B above. By checking a box in the prior sentence, the party
shall be deemed to have agreed to the terms of such confirmation option as more fully described in Option 1 and Option 2 above.

 

Dated this 29th day of October, 2012.

 

 

By /s/ BRYON T. MCGREGOR                                 

Name: Bryon T. McGregor

Title: Chief Operating Officer

 

    	Exhibit 11-21 - 3Exhibit 10.7

 

 

 

 

 

 

CREDIT AGREEMENT

dated as of October 29, 2012

among

PACIFIC ETHANOL HOLDING CO. LLC,

PACIFIC ETHANOL MADERA LLC,

PACIFIC ETHANOL COLUMBIA, LLC,

PACIFIC ETHANOL STOCKTON LLC, and

PACIFIC ETHANOL MAGIC VALLEY, LLC,

as Borrowers,

PACIFIC ETHANOL HOLDING CO. LLC,

as Borrowers’ Agent,

THE LENDERS REFERRED TO HEREIN,

WELLS FARGO BANK, N.A.,

as Administrative Agent for the Lenders,

WELLS FARGO BANK, N.A.,

as Collateral Agent for the Senior Secured Parties,

CREDIT SUISSE LOAN FUNDING LLC,

as Syndication Agent

 

and

AMARILLO NATIONAL BANK,

as Accounts Bank

 

 

    	 

    	 

    
 

 

TABLE OF CONTENTS

 

 

	 	Page
	 	 
	ARTICLE I DEFINITIONS AND INTERPRETATION	2
	Section 1.01 Defined Terms	2
	Section 1.02 Principles of Interpretation	2
	Section 1.03 UCC Terms	3
	Section 1.04 Accounting and Financial Determinations	3
	Section 1.05 Joint and Several	3
	 	 
	ARTICLE II COMMITMENTS AND BORROWING	3
	Section 2.01 Loans	3
	Section 2.02 Notice of Fundings	4
	Section 2.03 Funding of Loans	4
	Section 2.04 Evidence of Indebtedness	6
	Section 2.05 Termination or Reduction of Commitments	6
	Section 2.06 Defaulting Lenders	6
	 	 
	ARTICLE III REPAYMENTS, PREPAYMENTS, INTEREST AND FEES	7
	Section 3.01 Repayment of Loan Fundings	7
	Section 3.02 Interest Payment Dates	7
	Section 3.03 Interest Rates	8
	Section 3.04 Default Interest Rate	9
	Section 3.05 Interest Rate Determination	9
	Section 3.06 Computation of Interest and Fees	9
	Section 3.07 Optional Prepayment	9
	Section 3.08 Mandatory Prepayment	11
	Section 3.09 Time and Place of Payments	13
	Section 3.10 Fundings and Payments Generally	13
	Section 3.11 Fees	14
	Section 3.12 Pro rata Treatment	14
	Section 3.13 Sharing of Payments	15
	Section 3.14 Commitment Increase	15
	 	 
	ARTICLE IV EURODOLLAR RATE AND TAX PROVISIONS	17
	Section 4.01 Eurodollar Rate Lending Unlawful	17
	Section 4.02 Inability to Determine Eurodollar Rates	17
	Section 4.03 Increased Eurodollar Loan Costs	18
	Section 4.04 Obligation to Mitigate	18
	Section 4.05 Funding Losses	19
	Section 4.06 Increased Capital Costs	19
	Section 4.07 Taxes	19

 

    	i

    	 

    
 

 

	ARTICLE V REPRESENTATIONS AND WARRANTIES	21
	Section 5.01 Organization; Power and Compliance with Law	21
	Section 5.02 Due Authorization; Non-Contravention	21
	Section 5.03 Governmental Approvals	22
	Section 5.04 Investment Company Act	22
	Section 5.05 Validity of Financing Documents	22
	Section 5.06 Financial Information	23
	Section 5.07 No Material Adverse Effect	23
	Section 5.08 Project Compliance	23
	Section 5.09 Litigation	23
	Section 5.10 Sole Purpose Nature; Business	23
	Section 5.11 Contracts	23
	Section 5.12 Collateral	24
	Section 5.13 Ownership of Properties	25
	Section 5.14 Taxes	26
	Section 5.15 Patents, Trademarks, Etc.	26
	Section 5.16 ERISA Plans	26
	Section 5.17 Property Rights, Utilities, Supplies Etc.	26
	Section 5.18 No Defaults	27
	Section 5.19 Environmental Warranties	27
	Section 5.20 Regulations T, U and X	28
	Section 5.21 Accuracy of Information	28
	Section 5.22 Indebtedness	28
	Section 5.23 Separateness	28
	Section 5.24 Subsidiaries	29
	Section 5.25 Foreign Assets Control Regulations, Etc.	29
	Section 5.26 Employment Matters	29
	Section 5.27 Solvency	29
	Section 5.28 Legal Name and Place of Business	29
	Section 5.29 No Brokers	30
	Section 5.30 Insurance	30
	Section 5.31 Accounts	30
	Section 5.32 Interest Rate Protection Agreements	30
	 	 
	ARTICLE VI CONDITIONS PRECEDENT	30
	Section 6.01 Conditions to Closing	30
	Section 6.02 Conditions to All Fundings	35
	 	 
	ARTICLE VII COVENANTS	37
	Section 7.01 Affirmative Covenants	37
	Section 7.02 Negative Covenants	42
	Section 7.03 Reporting Requirements	49
	 	 
	ARTICLE VIII PROJECT ACCOUNTS	53
	Section 8.01 Existence of Project Accounts	53
	Section 8.02 Deposits into and Withdrawals from Project Accounts	54
	Section 8.03 Revenue Account	56
	Section 8.04 Operating Account	56
	Section 8.05 Maintenance Capital Expense Account	56
	Section 8.06 Debt Service Reserve Account	56

 

    	ii

    	 

    
 

	Section 8.07 Insurance and Condemnation Proceeds Accounts	56
	Section 8.08 Extraordinary Proceeds Account	57
	Section 8.09 Representations, Warranties and Covenants of Accounts Bank	57
	Section 8.10 Project Accounts	60
	Section 8.11 Project Accounts as Deposit Account	60
	Section 8.12 Duties of Accounts Bank	61
	Section 8.13 Subordination	62
	Section 8.14 Borrower Acknowledgments	62
	Section 8.15 Agreement to Hold In Trust	62
	Section 8.16 Interest and Investments	63
	Section 8.17 Accounts Bank Information	64
	Section 8.18 Notices of Suspension of Accounts	65
	 	 
	ARTICLE IX DEFAULT AND ENFORCEMENT	66
	Section 9.01 Events of Default	66
	Section 9.02 Action Upon Bankruptcy	71
	Section 9.03 Action Upon Other Event of Default	72
	Section 9.04 Application of Proceeds	72
	 	 
	ARTICLE X THE AGENTS	72
	Section 10.01 Appointment and Authority	72
	Section 10.02 Rights as a Lender or Interest Rate Protection Provider	75
	Section 10.03 Exculpatory Provisions	75
	Section 10.04 Reliance by Agents	77
	Section 10.05 Delegation of Duties	78
	Section 10.06 Resignation or Removal of Agent	78
	Section 10.07 No Amendment to Duties of Agent Without Consent	79
	Section 10.08 Non-Reliance on Agent and Other Lenders	79
	Section 10.09 Collateral Agent May File Proofs of Claim	79
	Section 10.10 Collateral Matters	80
	Section 10.11 Copies	81
	Section 10.12 Syndication Agent	81
	 	 
	ARTICLE XI MISCELLANEOUS PROVISIONS	81
	Section 11.01 Amendments, Etc.	81
	Section 11.02 Applicable Law; Jurisdiction; Etc.	83
	Section 11.03 Assignments	85
	Section 11.04 Benefits of Agreement	88
	Section 11.05 Borrowers’ Agent	88
	Section 11.06 Consultants	89
	Section 11.07 Costs and Expenses	89
	Section 11.08 Counterparts; Effectiveness	89
	Section 11.09 Indemnification by the Borrowers	90
	Section 11.10 Interest Rate Limitation	91
	Section 11.11 No Waiver; Cumulative Remedies	91
	Section 11.12 Notices and Other Communications	91
	Section 11.13 Patriot Act Notice	94

 

    	iii

    	 

    
 

 

	Section 11.14 Payments Set Aside	94
	Section 11.15 Right of Setoff	95
	Section 11.16 Severability	95
	Section 11.17 Survival	95
	Section 11.18 Treatment of Certain Information; Confidentiality	96
	Section 11.19 Waiver of Consequential Damages, Etc.	97
	Section 11.20 Waiver of Litigation Payments	97
	Section 11.21 Security Procedure For Funds Transfers	97

 

 

SCHEDULES

Schedule 1.01(a) – Commitments

Schedule 5.11 – Contracts

Schedule 5.12 – UCC Filing
Offices

Schedule 5.13(a) – Site Descriptions

Schedule 5.19(a)(i) – Environmental
Warranties

Schedule 5.19(d)(ii) – Underground
Storage Tanks

Schedule 5.23 – Separateness
Provisions

Schedule 5.28 – Legal Names
and Places of Business

Schedule 5.29 – Broker Fees

Schedule 6.01(a)(ix) – Project
Document Consents

Schedule 6.01(m)A – Initial
Budget

Schedule 6.01(m)B – Initial
Annual Forecast

Schedule 7.01(h) – Insurance

Schedule 7.02(a) – Bonds

Schedule 11.12 – Notice Information

EXHIBITS

Exhibit A – Defined Terms

Exhibit B – Intercreditor Agreement

Exhibit C – Amended Credit
Agreement

Exhibit 2.02 – Form of Funding
Notice

Exhibit 2.04 – Form of Note

Exhibit 3.03 – Form of Interest
Period Notice

Exhibit 4.07 – Form of Non-U.S.
Lender Statement

Exhibit 6.01(k) – Form of Insurance
Certificate

Exhibit 7.01(t)A – Form of
Estoppel Certificate (Stockton)

Exhibit 7.01(t)B – Form of
Estoppel Certificate (Boardman)

Exhibit 7.03(l) – Form of Operating
Statement

Exhibit 11.03 – Form of Lender
Assignment Agreement

Exhibit 11.21 – Security Procedures

 

    	iv

    	 

    
  

This CREDIT AGREEMENT (this “Agreement”),
dated as of October 29, 2012, is by and among Pacific Ethanol Holding Co. LLC, a Delaware limited liability company (“Pacific
Holding”), Pacific Ethanol Madera LLC, a Delaware limited liability company (“Madera”), Pacific Ethanol
Columbia, LLC, a Delaware limited liability company (“Boardman”), Pacific Ethanol Stockton LLC, a Delaware limited
liability company (“Stockton”), and Pacific Ethanol Magic Valley, LLC, a Delaware limited liability company
(“Burley” and, together with Pacific Holding, Madera, Boardman and Stockton, the “Borrowers”),
Pacific Holding, as Borrowers’ Agent, each of the Lenders from time to time party hereto, WELLS FARGO BANK, N.A., as administrative
agent for the Lenders, WELLS FARGO BANK, N.A., as collateral agent for the Senior Secured Parties, CREDIT SUISSE LOAN FUNDING LLC,
as Syndication Agent and AMARILLO NATIONAL BANK, as accounts bank.

RECITALS

WHEREAS,
the undersigned Lenders are parties to the Amended and Restated Credit Agreement, dated as of August 1, 2011, by and among
the Borrowers, the Borrowers’ Agent, each of the lenders from time to time party thereto, Wells Fargo, as administrative
agent for the Lenders (as defined therein) and collateral agent for the Senior Secured Parties (as defined therein), WestLB, as
issuing bank thereunder, and the Accounts Bank, as accounts bank, as amended by the First Amendment thereto, dated as of July 13,
2012 (as so amended, and as further amended, supplemented or otherwise modified prior to giving effect to the Existing Credit Agreement
Amendment referred to below, the “Existing Credit Agreement”);

WHEREAS,
the Borrowers have requested, and the Lenders have agreed, pursuant to the term of this Agreement, to enter into a priming first
priority secured credit facility whereby the Lenders shall extend credit and make certain financial accommodations to the Borrowers,
which facility shall be senior in right of payment and lien priority to the credit facility provided pursuant to the Existing Credit
Agreement, in each case subject to the terms set forth herein, in the Intercreditor Agreement and in the other Financing Documents;

WHEREAS,
as a condition to the extension of credit hereunder, the Borrowers in their capacity as Borrowers under the Existing Credit Agreement,
certain Lenders (as defined in the Existing Credit Agreement) and the Existing Agents shall enter into a second amendment and restatement
to the Existing Credit Agreement, dated as of the date hereof (the “Existing Credit Agreement Amendment”; the
Existing Credit Agreement as amended by the Existing Credit Agreement Amendment, as attached hereto as Exhibit C, the “Amended
Credit Agreement”); and

WHEREAS,
in connection with the foregoing agreements and concurrently herewith, the Loan Parties, the Existing Agents and the Agents are
entering into the Intercreditor Agreement, to set forth the respective rights and obligations with respect to payment and lien
priority under the credit facilities established pursuant to the Amended Credit Agreement and this Agreement, respectively.

NOW,
THEREFORE, the parties hereto agree as follows:

    	1

    	 

    

ARTICLE
I

DEFINITIONS AND INTERPRETATION

Section
1.01 Defined Terms. Capitalized terms used in this Agreement, including its preamble and recitals, shall, except
as otherwise defined herein or where the context otherwise requires, have the meanings provided in Exhibit A.

Section
1.02 Principles of Interpretation. (a) Unless otherwise defined or the context otherwise requires, terms for which
meanings are provided in this Agreement shall have the same meanings when used in each Financing Document, notice and other communication
delivered from time to time in connection with any Financing Document.

(b)              
Unless the context requires otherwise, any reference in this Agreement to any Transaction Document shall mean such Transaction
Document and all schedules, exhibits and attachments thereto.

(c)               
All the agreements, contracts or documents defined or referred to herein shall mean such agreements, contracts or documents
as the same may from time to time be supplemented or amended or the terms thereof waived or modified to the extent permitted by,
and in accordance with, the terms thereof and this Agreement, and shall disregard any supplement, amendment or waiver made in breach
of this Agreement.

(d)              
Any reference in any Financing Document relating to a Default or an Event of Default that has occurred and is continuing
(or words of similar effect) shall be understood to mean that (i) in the case of a Default only, such Default has not been cured
or remedied, or has not been waived in the manner set forth herein, before becoming an Event of Default and (ii) in the case of
an Event of Default, such Event of Default has not been waived in the manner set forth herein.

(e)               
The term “knowledge” in relation to the Borrowers, and any other similar expressions, shall mean knowledge of
each of the Borrowers after due inquiry.

(f)               
Defined terms in this Agreement shall include in the singular number the plural and in the plural number the singular.

(g)              
The words “herein,” “hereof” and “hereunder” and words of similar import when used in
this Agreement shall, unless otherwise expressly specified, refer to this Agreement as a whole and not to any particular provision
of this Agreement and all references to Articles, Sections, Exhibits and Schedules shall be references to Articles, Sections, Exhibits
and Schedules of this Agreement, unless otherwise specified.

(h)              
The words “include,” “includes” and “including” are not limiting.

(i)                
The word “or” is not exclusive.

    	2

    	 

    

(j)                
Any reference to any Person shall include its permitted successors and permitted assigns in the capacity indicated, and
in the case of any Governmental Authority, any Person succeeding to its functions and capacities.

Section
1.03 UCC Terms. Unless otherwise defined herein, terms used herein that are defined in the UCC shall have the respective
meanings given to those terms in the UCC.

Section
1.04 Accounting and Financial Determinations. Unless otherwise specified, all accounting terms used in any Financing
Document shall be interpreted, all accounting determinations and computations hereunder or thereunder shall be made, and all financial
statements required to be delivered hereunder or thereunder shall be prepared, in accordance with GAAP.

Section
1.05 Joint and Several. Subject to Section 1.05(b), the Obligations of each Borrower under this Agreement
and each other Financing Document to which any Borrower is a party shall constitute the joint and several obligations of all Borrowers.
All representations, warranties, undertakings, agreements and obligations of each Borrower expressed or implied in this Agreement
or any other Financing Document shall, unless the context requires otherwise, be deemed to be made, given or assumed by the Borrowers
jointly and severally.

(a)               
Each of the Borrowers, the Administrative Agent and the Lenders hereby confirms that it is the intention of all such Persons
that this Agreement and the other Financing Documents and the Obligations of each Borrower hereunder and thereunder not constitute
a fraudulent transfer or conveyance for purposes of any Debtor Relief Laws, the Uniform Fraudulent Conveyance Act, the Uniform
Fraudulent Transfer Act or any similar foreign, federal or state law, to the extent applicable to this Agreement or such other
Financing Document and the Obligations of each Borrower hereunder and thereunder. To effectuate the foregoing intention, the Administrative
Agent, the Lenders and the Borrowers hereby irrevocably agree that the Obligations of each Borrower at any time shall be limited
to the maximum amount as will result in the Obligations of such Borrower not constituting a fraudulent transfer or conveyance.

ARTICLE
II

COMMITMENTS AND BORROWING

On the terms, subject to the conditions
and relying upon the representations and warranties herein set forth:

Section
2.01 Loans. (a) Each Lender agrees, severally and not jointly, on the terms and conditions of this Agreement, to
make loans (each such loan, a “Loan”) to the Borrowers, from time to time but not more frequently than six
(6) times each calendar month, until the last Business Day immediately preceding the Maturity Date, in an aggregate principal
amount from time to time outstanding not in excess of the Commitment of such Lender; provided, that the aggregate principal
amount of the Funded Loans of any Lender at any one time outstanding shall not exceed such Lender’s Commitment. For the
avoidance of doubt, the aggregate principal balance of the outstanding Loans of any Lender may exceed such Lender’s Commitment,
and the aggregate principal balance of the outstanding Loans of all Lenders may exceed the Aggregate Commitments, in each case
solely as the result of the payment of Capitalized Interest in accordance with Section 3.02(a) (Interest Payment Dates).

    	3

    	 

    

(b)              
Each Funding of Loans shall be in the minimum amount of one hundred thousand Dollars ($100,000).

(c)               
Proceeds of each Loan shall be deposited into the Revenue Account (or as otherwise agreed by Borrowers’ Agent and
the Administrative Agent, at the direction of the Required Lenders, and specified in the relevant Funding Notice) and applied solely
in accordance with this Agreement and shall be used solely in accordance with the then-current Budget.

(d)              
Within the limits set forth in Sections 2.01(a) and 3.08(d), the Borrowers may pay or prepay Loans in accordance
with Section 3.07 and reborrow Funded Loans that have been so repaid.

Section
2.02 Notice of Fundings. (a) From time to time, but not more frequently than six times per calendar month, the Borrowers
may propose a Funding by delivering to the Administrative Agent a properly completed Funding Notice not later than 12:00 noon,
New York City time, five (5) Business Days prior to the proposed Funding Date; provided that in the case of the Loans to be made
on the Closing Date such five (5) Business Days period is hereby waived. Each Funding Notice delivered pursuant to this Section
2.02 shall be irrevocable and shall refer to this Agreement and specify (i) whether such Funding is requested to be of Eurodollar
Loans and/or Base Rate Loans, (ii) the requested Funding Date (which shall be a Business Day) and (iii) the amount of such requested
Funding.

(b)              
The Administrative Agent shall promptly advise each Lender of any Funding Notice given pursuant to this Section 2.02,
and of each such Lender’s portion of the requested Funding.

Section
2.03 Funding of Loans. (a) Subject to Section 2.03(d),
each Funding shall consist of Loans made by the Lenders ratably in accordance with their respective applicable Commitment Availability
Percentages and shall consist of Eurodollar Loans or Base Rate Loans as the Borrowers may request pursuant to Section 2.02
(Notice of Fundings); provided, that the failure of any Lender to make any Loan shall not in itself relieve
any other Lender of its obligation to lend hereunder (it being understood, however, that no Lender shall be responsible for the
failure of any other Lender to make any Loan required to be made by such other Lender).

(b)              
Subject to Section 4.04 (Obligation to Mitigate), each Lender may (without relieving any Borrower of its obligation
to repay a Loan in accordance with the terms of this Agreement and the Notes) at its option fulfill its Commitment with respect
to any such Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that the use
of such domestic or foreign branch does not result in any increased costs payable by any of the Borrowers hereunder.

    	4

    	 

    

(c)               
Subject to Section 2.03(d), each Lender shall make a Loan in the amount of its applicable Commitment Availability
Percentage of each Funding of Loans hereunder on the proposed Funding Date by wire transfer of immediately available funds to the
Administrative Agent, not later than 11:00 a.m. New York City time, and the Administrative Agent shall transfer the amounts so
received to the Accounts Bank for deposit into the Revenue Account in the amount set forth in the Funding Notice (or as otherwise
agreed by the Administrative Agent, at the direction of the Required Lenders, and specified in the relevant Funding Notice); provided,
that if a Funding does not occur on the proposed Funding Date because any condition precedent to such requested Funding herein
specified has not been met and not all Lenders have made their respective Loans on such date, the Administrative Agent shall return
any amounts so received to the respective Lenders without interest.

(d)              
Unless the Administrative Agent has been notified in writing by any Lender prior to a proposed Funding Date that such Lender
will not make available to the Administrative Agent its portion of the Funding proposed to be made on such date, the Administrative
Agent may assume that such Lender has made such amounts available to the Administrative Agent on such date and the Administrative
Agent in its sole discretion may, in reliance upon such assumption, make available to the Borrowers a corresponding amount. If
such corresponding amount is not in fact made available to the Administrative Agent by such Lender and the Administrative Agent
has made such amount available to the Borrowers, the Administrative Agent shall be entitled to recover such corresponding amount
on demand from such Lender and, if such Lender pays such amount (together with the interest noted below), then the amount so paid
shall constitute such Lender’s Loan included in such Funding. If such Lender does not pay such corresponding amount forthwith
upon the Administrative Agent’s demand, the Administrative Agent shall promptly notify the Borrowers and the Borrowers shall
immediately repay such corresponding amount to the Administrative Agent. The Administrative Agent shall also be entitled to recover
from such Lender or the Borrowers, as the case may be, interest on such corresponding amount in respect of each day from the date
such corresponding amount was made available by the Administrative Agent to the Borrowers to the date such corresponding amount
is recovered by the Administrative Agent, at an interest rate per annum equal to (i) in the case of a payment made by such
Lender, the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation and (ii) in the case of a payment made by the Borrowers, the Base Rate plus the Applicable
Margin. Nothing herein shall be deemed to relieve any Lender from its obligation to fulfill its commitment hereunder. Notwithstanding
anything to the contrary in this Agreement or any other Financing Document, the Administrative Agent may, subject to the Intercreditor
Agreement and the rights of the other Senior Secured Parties under the Security Documents and with prior notice to the Borrowers,
apply all funds and proceeds of Collateral available for the payment of any Obligation to repay any amount owing by any Lender
to the Administrative Agent as a result of such Lender’s failure to fund its applicable share of any Funding hereunder. A
notice of the Administrative Agent to any Lender or the Borrowers with respect to any amounts owing under this Section 2.03(d)
shall be conclusive, absent manifest error.

    	5

    	 

    

Section
2.04 Evidence of Indebtedness. (a) Each Loan made
by each Lender shall be evidenced by one or more accounts or records maintained by such Lender and by the Administrative Agent
in the ordinary course of business, including the Register for the recordation of the Loans maintained by the Administrative Agent
in accordance with the provisions of Section 11.03(c) (Assignments). The accounts or records maintained by the Administrative
Agent and each Lender shall be conclusive evidence, absent manifest error, of the amount of the Loans made by the Lenders to the
Borrowers and the interest and payments thereon. Any failure to so record or any error in doing so shall not, however, limit or
otherwise affect the obligation of the Borrowers hereunder to pay any amount owing with respect to the Obligations. In the event
of any conflict between the accounts and records maintained by any Lender and the accounts and records of the Administrative Agent
in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error.

(b)              
The Borrowers agree that in addition to the Register and any other accounts and records maintained pursuant to Section
2.04(a), the Loans made by each Lender shall be evidenced, in each case when requested by a Lender, by a Note or Notes duly
executed on behalf of each Borrower, dated the Closing Date (or, if later, the date of any such request), payable to the order
of such Lender in a principal amount equal to such Lender’s Commitment. Each Lender may attach schedules to its Note and
endorse thereon the date, amount and maturity of its Loan and payments with respect thereto.

Section
2.05 Termination or Reduction of Commitments. (a)
Any unused Commitments shall be automatically and permanently terminated on the Maturity Date.

(b)              
If any prepayment of Loans is required by Section 3.08 (Mandatory Prepayment), the Commitments shall be automatically
and permanently reduced in an amount equal to such required prepayment, without regard to whether any Loans are outstanding as
of the date of such prepayment (unless such Commitment reduction is waived pursuant to Section 3.08(a) (Mandatory Prepayment)).

(c)               
Any unused Commitments shall be terminated upon the occurrence of an Event of Default if and to the extent required pursuant
to Section 9.02 (Action upon Bankruptcy) or Section 9.03 (Action Upon Other Event of Default) in accordance
with the terms thereof.

Section
2.06 Defaulting Lenders. Anything contained herein to the contrary notwithstanding, in the event that any Lender,
other than at the direction or request of any regulatory agency or authority or due to a temporary disruption in the financial
markets generally, defaults (such Lender, and each Affiliate of such Lender that is a Lender, a “Defaulting Lender”)
in its obligation to fund (a “Funding Default”) any Loan (in each case, a “Defaulted Loan”),
then (i) during any Default Period with respect to such Defaulting Lender, such Defaulting Lender shall be a Non-Voting Lender;
and (ii) to the extent permitted by applicable law, during any Default Period and until such time as the Default Excess with respect
to such Defaulting Lender shall have been reduced to zero, (A) any voluntary prepayment of the Loans shall be applied to the outstanding
Loans of Lenders other than Defaulting Lenders prior to the outstanding Loans of the Defaulting Lenders, (B) any mandatory prepayment
of the Loans shall be applied to the outstanding Loans of Lenders other than Defaulting Lenders prior to the outstanding Loans
of the Defaulting Lenders, (C) such Defaulting Lender shall not be entitled to receive any Commitment Fee pursuant to Section
3.11 (Fees) with respect to such Defaulting Lender’s Commitment; and (D) availability of Loans pursuant to Section
2.01(a) (Loans) shall, as at any date of determination, be calculated as if such Defaulting Lender had funded all Defaulted
Loans of such Defaulting Lender. No Commitment of any Lender shall be increased or otherwise affected, and, except as otherwise
expressly provided in this Section 2.06, performance by the Borrowers of their obligations hereunder and the other Financing
Documents shall not be excused or otherwise modified as a result of any Funding Default or the operation of this Section 2.06.
The rights and remedies against a Defaulting Lender under this Section 2.06 are in addition to other rights and remedies
which the Borrowers may have against such Defaulting Lender with respect to any Funding Default and which the Administrative Agent
or any Lender may have against such Defaulting Lender with respect to any Funding Default.

    	6

    	 

    

ARTICLE
III

REPAYMENTS, PREPAYMENTS, INTEREST AND FEES

Section
3.01 Repayment of Loan Fundings. The Borrowers unconditionally and irrevocably promise to pay in full to the Administrative
Agent, for the ratable account of each Lender, the aggregate outstanding principal amount of the Loans on the Maturity Date.

Section
3.02 Interest Payment Dates. (a) Interest accrued on each Loan shall be payable, without duplication:

		(i)	on the Maturity Date;

		(ii)	with respect to Eurodollar Loans, the last day of each applicable Interest Period or, if applicable, any date on which such
Eurodollar Loan is converted to a Base Rate Loan;

		(iii)	with respect to Base Rate Loans, on each Monthly Date or, if applicable, any date on which such Base Rate Loan is converted
to a Eurodollar Loan; and

		(iv)	with respect to any Loan, on any date when such Loan is prepaid hereunder;

provided, that in the case of the foregoing
clauses (ii) and (iii), as applicable, so long as no Default or Event of Default has occurred and is continuing, if, not later
than two (2) Business Days prior to the date on which such payment is due, the Borrowers’ Agent notifies the Administrative
Agent and the Lenders in writing that the Borrowers’ shall not pay all interest due on such date in cash, on the date such
interest would, but for the application of this proviso, be payable, the amount of such interest (as adjusted in accordance with
the definition of “Applicable Margin”) shall (x) automatically be deemed to be added to the outstanding principal amount
of the Loans (but not, for the avoidance of doubt, an additional amount of Funded Loans) as of such date, (y) be treated as an
additional principal amount of Loans (but not, for the avoidance of doubt, an additional amount of Funded Loans) due under, and
evidenced by, this Agreement and the Notes, and (z) shall bear interest, from such date until paid in full, at the rate per annum
otherwise applicable to Loans (such amounts being referred to herein as “Capitalized Interest”).

(b)              
Interest accrued on the Loans or other monetary Obligations after the date such amount is due and payable (whether on the
Maturity Date, any Monthly Date, any Interest Payment Date, upon acceleration or otherwise) shall be payable, subject to the Intercreditor
Agreement, upon demand.

    	7

    	 

    

(c)               
Interest hereunder shall be due and payable in accordance with the terms hereof, before and after judgment, regardless of
whether an Insolvency Proceeding exists in respect of any Borrower, and to the fullest extent permitted by law, the Lenders shall
be entitled to receive post-petition interest during the pendency of an Insolvency Proceeding.

Section
3.03 Interest Rates. (a) Pursuant to each properly
delivered Funding Notice and Interest Period Notice, (i) the Eurodollar Loans shall accrue interest at a rate per annum
during each Interest Period applicable thereto equal to the sum of the Eurodollar Rate for such Interest Period plus the Applicable
Margin and (ii) each Base Rate Loan shall accrue interest at a rate per annum during each Monthly Period equal to the sum
of the Base Rate for such Monthly Period plus the Applicable Margin. Any Loan made within thirty (30) days of the Maturity Date
shall be a Base Rate Loan.

(b)              
On or before 12:00 noon, New York City time, at least four (4) Business Days prior to the end of each Interest Period for
each Eurodollar Loan, the Borrowers shall, and at least four (4) Business Days prior to the end of any Monthly Period for any Base
Rate Loans, the Borrowers may, deliver to the Administrative Agent an Interest Period Notice setting forth the Borrowers’
election (i) to continue any such Eurodollar Loan as (or convert any such Base Rate Loan to) a Eurodollar Loan or (ii) to convert
any such Eurodollar Loan to a Base Rate Loan at the end of the then-current Interest Period; provided, that if an Event
of Default has occurred and is continuing, all Eurodollar Loans shall automatically convert into Base Rate Loans at the end of
the then-current Interest Periods. Upon the waiver or cure of such Event of Default, the Borrowers shall have the option to continue
such Loans as Base Rate Loans and/or to convert such Loans to Eurodollar Loans (by delivery of an Interest Period Notice), subject
to the notice periods set forth above. Notwithstanding anything to the contrary, any portion of the Loans maturing in less than
one month may not be continued as, or converted to, Eurodollar Loans and will automatically convert to Base Rate Loans at the end
of the then-current Interest Period.

(c)               
If the Borrowers fail to deliver an Interest Period Notice in accordance with Section 3.03(b) with respect to any
Eurodollar Loan, such Eurodollar Loan shall automatically continue as a Eurodollar Loan.

(d)              
All Eurodollar Loans shall bear interest from and including the first day of the applicable Interest Period to (and excluding)
the last day of such Interest Period at the interest rate determined as applicable to such Eurodollar Loan.

(e)               
Notwithstanding anything to the contrary, the Borrowers shall have, in the aggregate, no more than eight (8) separate Eurodollar
Loans outstanding at any one time. For purposes of the foregoing, all Eurodollar Loans commencing on the same day of a month (notwithstanding
that such Eurodollar Loans commence in different months) shall be considered a single Eurodollar Loan.

(f)               
All Base Rate Loans shall bear interest from and including the first day of each Monthly Period (or the day on which Eurodollar
Loans are converted to Base Rate Loans as required under Section 3.03(b) or under Article IV (Eurodollar Rate and
Tax Provisions)) to (and including) the next succeeding Monthly Date at the interest rate determined as applicable to such
Base Rate Loan.

    	8

    	 

    

Section
3.04 Default Interest Rate.

(a)               
If all or a portion of (i) the principal amount of any Loan is not paid when due (whether on the Maturity Date, by acceleration
or otherwise), at the election of the Required Lenders (which election may be rescinded by the Required Lenders) such overdue amount
shall bear interest at a rate per annum equal to the rate that would otherwise be applicable thereto plus two percent
(2%) or (ii) any Obligation (other than principal on the Loans) is not paid when due (whether on the Maturity Date, by acceleration
or otherwise), at the election of the Required Lenders (which election may be rescinded by the Required Lenders) such overdue amount
shall bear interest at a rate per annum equal to the rate then applicable to Base Rate Loans plus two percent (2%)
(the rate in effect as described in the foregoing clauses (i) or (ii), as applicable, plus such two percent (2%) per annum,
the “Default Rate”), in each case, with respect to clauses (i) and (ii) above, from the date of such non-payment
until such amount is paid in full (after as well as before judgment).

(b)              
Upon the occurrence and during the continuance of any Event of Default (other than an Event of Default addressed by Section
3.04(a)), at the election of the Required Lenders (which election may be rescinded by the Required Lenders) the Borrowers shall
pay interest (after as well as before judgment) on the Loans at a rate per annum equal to the rate then applicable to Base
Rate Loans plus two percent (2%) until such Event of Default is cured or waived.

Section
3.05 Interest Rate Determination. The Administrative Agent shall determine the interest rate applicable to the Loans
in accordance with the terms of this Agreement, and shall give prompt notice to the Borrowers and the Lenders of such determination,
and its determination thereof shall be conclusive in the absence of manifest error.

Section
3.06 Computation of Interest and Fees. (a) All computations of interest for Base Rate Loans when the Base Rate is
determined by Wells Fargo’s “prime rate” shall be made on the basis of a year of 365 or 366 days, as the case
may be, and actual days elapsed. All computations of interest for Eurodollar Loans and for Base Rate Loans when the Base Rate
is determined by the Federal Funds Effective Rate shall be made on the basis of a 360-day year and actual days elapsed.

(b)              
Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion
thereof, for the day on which the Loan or such portion is paid; provided, that any Loan that is repaid on the same day on
which it is made shall bear interest for one (1) day.

(c)               
Each determination by the Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for
all purposes, absent manifest error.

Section
3.07 Optional Prepayment. (a) Subject to the Intercreditor Agreement, the Borrowers shall have the right at any
time, and from time to time, to prepay the Loans, in whole or in part, upon not fewer than three (3) Business Days’ prior
written notice from the Borrowers’ Agent to the Administrative Agent.

    	9

    	 

    

(b)              
Any partial prepayment of such Loans shall be in a minimum amount of five hundred thousand Dollars ($500,000) and in integral
multiples of one hundred thousand Dollars ($100,000) in excess thereof.

(c)               
Each notice of prepayment given by the Borrowers’ Agent under this Section 3.07 shall specify the prepayment
date and the portion of the principal amount of such Loans to be prepaid. All prepayments under this Section 3.07 shall
be made by the Borrowers to the Administrative Agent for the account of the applicable Lenders and shall be accompanied by accrued
interest on the principal amount being prepaid to but excluding the date of payment and by any additional amounts required to be
paid under Section 4.05 (Funding Losses).

(d)              
Amounts of principal prepaid under this Section 3.07 shall be allocated by the Administrative Agent as follows, subject
to the terms of the Intercreditor Agreement:

first,
to the payment of all fees then due and payable to the Agents;

second,
to the payment of all costs, fees, expenses and indemnities then due and payable to the Senior Secured Parties, including fees
and expenses of attorneys and Consultants reimbursable hereunder;

third,
subject only to Section 3.02(a), to the payment of all accrued and unpaid interest then due and payable in cash (excluding,
for the avoidance of doubt, any previously Capitalized Interest) on the Loans pro rata among the Lenders (other than any
Defaulting Lender) based on their respective outstanding principal amounts on the date of such prepayment;

fourth,
to the payment first, of principal of the Funded Loans (excluding, for the avoidance of doubt, any previously Capitalized
Interest) pro rata among the Lenders (other than any Defaulting Lender) based on their respective outstanding principal
amounts of Funded Loans on the date of such prepayment and second, of principal of any Loans resulting from any Capitalized
Interest pro rata among the Lenders (other than any Defaulting Lender) based on their respective outstanding principal amounts
of such Loans on the date of such prepayment;

fifth,
to the payment of all accrued and unpaid interest then due and payable in cash (excluding, for the avoidance of doubt, any previously
Capitalized Interest) on the Loans pro rata among the Defaulting Lenders based on their respective outstanding principal
amounts on the date of such prepayment;

    	10

    	 

    

sixth,
to the payment first, of principal of the Funded Loans (excluding, for the avoidance of doubt, any previously Capitalized
Interest) pro rata among the Defaulting Lenders based on their respective outstanding principal amounts of Funded Loans
on the date of such prepayment and a corresponding reduction in the Commitments of such Defaulting Lenders and second, of
principal of any Loans resulting from any Capitalized Interest pro rata among the Defaulting Lenders based on their respective
outstanding principal amounts of such Loans on the date of such prepayment; and

seventh,
to the Existing Administrative Agent for application under the Amended Credit Agreement, subject to the terms of the Intercreditor
Agreement;

provided, that unless the notice of such
prepayment delivered by the Borrowers’ Agent in accordance with Section 3.07(a) expressly provides otherwise, (i)
any Lender may in its sole discretion advise the Administrative Agent in writing by 12:00 p.m., New York City time, at least two
(2) Business Days prior to the prepayment date specified in the Borrowers’ notice of any such prepayment, that such Lender
elects to decline such prepayment, and (ii) the aggregate amount of payments declined pursuant to this proviso shall not be applied
as a prepayment pursuant to this Section 3.07 and shall instead be applied by the Borrowers as a prepayment pursuant to
Section 3.07 of the Amended Credit Agreement, as soon as practicable after giving effect to the notice requirements set
forth therein. After giving effect to any such prepayments that have been applied to one or more Lenders and such prepayments that
have been waived by one or more Lenders, the pro rata allocations among the Lenders shall be adjusted accordingly and the
Administrative Agent shall give notice of the new outstanding balance of the Loans to each Lender.

(e)               
Amounts prepaid, and not declined, pursuant to this Section 3.07 may be reborrowed within the limits of Section
2.01(a).

Section
3.08 Mandatory Prepayment. (a) Subject to the Intercreditor
Agreement, the Borrowers shall be required to prepay the Loans:

		(i)	upon receipt by any of the Borrowers of Insurance Proceeds, as required pursuant to clauses (y) or (z) of Section 8.07 (Insurance
and Condemnation Proceeds Accounts);

		(ii)	upon receipt by any of the Borrowers of Condemnation Proceeds, as required pursuant to clauses (y) or (z) of Section 8.07
(Insurance and Condemnation Proceeds Accounts);

		(iii)	upon receipt of any Project Document Termination Payments, as required pursuant to clause (y) of Section 8.08 (Extraordinary
Proceeds Account);

		(iv)	upon receipt of proceeds of any asset disposal (other than proceeds received from the sale of Products) that are not used for
replacement in accordance with Section 7.02(f)(i) (Negative Covenants – Asset Dispositions), as required pursuant
to clause (x) of Section 8.08 (Extraordinary Proceeds Account); and

		(v)	on each Monthly Date, as required pursuant to Section 8.03 (Revenue Account);

    	11

    	 

    
	

 

provided, that (i) the Borrowers’
Agent shall provide not fewer than four (4) Business Days’ prior written notice to the Administrative Agent of any prepayment
in accordance with this Section 3.08 specifying the prepayment date and the amount thereof, (ii) any Lender may in its
sole discretion advise the Administrative Agent in writing by 12:00 noon, New York City time, at least two (2) Business Days prior
to the prepayment date specified in the Borrowers’ notice of any prepayment, that such Lender, with respect to such prepayment,
(y) elects to decline such prepayment or (z) if such Lender does not have any Loans outstanding as of the date of such prepayment
(or the amount of such Lender’s outstanding Loans at such time is less than such Lender’s pro rata share of such prepayment),
elects for its Commitment not to be reduced in connection with such prepayment (and any such notice of election delivered by any
Lender hereunder shall include the amount of the prepayment such Lender is declining and/or the amount by which its Commitment
shall not be reduced, as applicable), and (iii) the aggregate amount of payments declined pursuant to this proviso shall not be
applied as a mandatory prepayment pursuant to this Section 3.08 and shall instead be applied by the Borrowers as a mandatory
prepayment pursuant to Section 3.08 of the Amended Credit Agreement, as soon as practicable after giving effect to the
notice requirements set forth therein. After giving effect to any such prepayments that have been applied to one or more Lenders
and such prepayments that have been waived by one or more Lenders, the pro rata allocations among the Lenders shall be
adjusted accordingly and the Administrative Agent shall give notice of the new outstanding balance of the Loans to each Lender.

(b)              
All prepayments under this Section 3.08 shall be made by the Borrowers to the Administrative Agent for the account
of the applicable Lenders and shall be accompanied by accrued cash interest on the principal amount being prepaid to but excluding
the date of payment and by any additional amounts required to be paid under Section 4.05 (Funding Losses).

(c)               
Amounts of principal required to be prepaid under this Section 3.08 shall be allocated by the Administrative Agent,
subject to the terms of the Intercreditor Agreement, in accordance with the priorities set forth in Section 3.07(d); provided
that any mandatory prepayment under this Section 3.08 which results in the prepayment of principal of the Loans in accordance
with clause fourth or sixth of Section 3.07(d) shall, notwithstanding anything to the contrary
set forth elsewhere in this Agreement (other than each Lender’s right to waive a reduction of its Commitments pursuant to
this Section 3.08), result in a corresponding reduction in the Commitments of the Lenders. If any Lender has no Loans outstanding
at any time at which a prepayment under this Section 3.08 would otherwise be required or the amount of any Lender’s
outstanding Loans at such time is less than such Lender’s pro rata share of such prepayment, the Commitments of the Lenders
shall be reduced (i) in the instance of no Loans outstanding, in an amount equal to the amount of such Lender’s pro rata
share of such prepayment or (ii) in the instance of a Lender’s pro rata share of such prepayment exceeding the amount of
such Lender’s then outstanding Loans, in an amount equal to such excess, unless such Lender declines (in whole or in part)
such reduction of Commitments in accordance with this Section 3.08.

    	12

    	 

    

(d)              
Amounts prepaid pursuant to this Section 3.08 that reduce Commitments may not be reborrowed.

Section
3.09 Time and Place of Payments. (a) The Borrowers shall make each payment (including any payment of principal of
or interest on any Loan or any Fees or other Obligations) hereunder and under any other Financing Document without setoff, deduction
or counterclaim not later than 12:00 noon New York City time on the date when due in Dollars in immediately available funds to
the Administrative Agent at the account as may from time to time be specified by the Administrative Agent to the Borrowers. Funds
received after 12:00 noon New York City time shall be deemed to have been received by the Administrative Agent on the next succeeding
Business Day.

(b)              
The Administrative Agent shall promptly remit in immediately available funds to each Senior Secured Party its share, if
any, of any payments received by the Administrative Agent for the account of such Senior Secured Party, in accordance with the
terms hereof and subject to the terms of the Intercreditor Agreement.

(c)               
Whenever any payment (including any payment of principal of or interest on any Loan or any Fees or other Obligations) hereunder
or under any other Financing Document shall become due, or otherwise would occur, on a day that is not a Business Day, such payment
shall (except as otherwise required by the proviso to the definition of “Interest Period” with respect to Eurodollar
Loans) be made on the immediately succeeding Business Day, and such increase of time shall in such case be included in the computation
of interest or Fees, if applicable.

Section
3.10 Fundings and Payments Generally. (a) Unless the Administrative Agent has received notice from the Borrowers
prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders hereunder that the Borrowers
will not make such payment, the Administrative Agent may assume that the Borrowers have made such payment on such date in accordance
with this Agreement and may, in reliance upon such assumption, distribute to the Lenders the amount due. If the Borrowers have
not in fact made such payment, then each of the Lenders severally agrees to repay to the Administrative Agent forthwith on demand
the amount so distributed to such Lender in immediately available funds with interest thereon, for each day from and including
the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of
(i) the Federal Funds Effective Rate and (ii) a rate determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation. A notice of the Administrative Agent to any Lender with respect to any amount owing under this
Section 3.10(a) shall be conclusive, absent manifest error.

(b)              
Nothing herein shall be deemed to obligate any Lender to obtain funds for any Loan in any particular place or manner or
to constitute a representation by any Lender that it has obtained or will obtain funds for any Loan in any particular place or
manner.

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(c)               
The Borrowers hereby authorize each Lender, if and to the extent payment owed to such Lender is not made when due under
this Agreement or under the Notes held by such Lender, to charge from time to time against any or all of any Borrower’s accounts
with such Lender (other than, in the event that the Account Bank is also a Lender, any Project Account) any amount so due.

Section
3.11 Fees. (a) From and including the Closing Date
until the Maturity Date, the Borrowers agree to pay to the Administrative Agent, for the account of the Lenders, on each Monthly
Date, a commitment fee (a “Commitment Fee”) equal to two percent (2.0%) per annum on the average daily
amount by which the Aggregate Commitment exceeds the outstanding amount of all Loans during the calendar month then ended. All
Commitment Fees shall be computed on the basis of the actual number of days elapsed in a year of 365 or 366 days, as pro-rated
for any partial quarter, as applicable.

(b)              
Each Borrower agrees to pay to the Administrative Agent, for the account of the Agents, additional fees in the amounts and
at the times from time and time agreed to in writing by the Borrowers and the respective Agent, including pursuant to the Fee Letters.

(c)               
All Fees shall be paid on the dates due, in immediately available funds, subject to the Intercreditor Agreement. Once paid,
none of the Fees shall be refundable under any circumstances.

Section
3.12 Pro rata Treatment. (a) Except as otherwise expressly
provided herein (including Section 4.01 (Eurodollar Rate Lending Unlawful), Section 2.05 (Termination or Reduction
of Commitments), Section 2.06 (Defaulting Lenders), Section 3.07 (Optional Prepayment) and
Section 3.08 (Mandatory Prepayment)), each Funding of Loans shall be allocated by the Administrative Agent pro
rata among the Lenders in accordance with their respective Commitment Availability Percentages and each reduction of Commitments
shall be allocated by the Administrative Agent pro rata among the Lenders in accordance with their respective Commitments.

(b)              
Except as required under Section 2.06 (Defaulting Lenders), Section 3.07 (Optional Prepayment),
Section 3.08 (Mandatory Prepayment) or Article IV (Eurodollar Rate and Tax Provisions), each payment
or prepayment of principal of the Loans shall be allocated by the Administrative Agent pro rata among the Lenders in accordance
with the respective principal amounts of their outstanding Loans, each payment of interest on the Loans shall be allocated by the
Administrative Agent pro rata among the Lenders in accordance with the respective interest amounts outstanding on their
outstanding Loans, and each payment of fees on the Commitments shall be allocated by the Administrative Agent pro rata among
the Lenders in accordance with their respective Commitment Availability.

(c)               
Each Lender agrees that in computing such Lender’s portion of any Funding to be made hereunder, the Administrative
Agent may, in its discretion, round each Lender’s percentage of such Funding to the next higher or lower whole Dollar amount.

    	14

    	 

    

Section
3.13 Sharing of Payments. (a) If any Lender shall obtain any payment or other recovery (whether voluntary, involuntary,
by application of setoff or otherwise) on account of any Loan (other than pursuant to the terms of Article IV (Eurodollar
Rate and Tax Provisions)) in excess of its pro rata share of payments then or therewith obtained by all Lenders
(other than as a result of the waiver by any Lender of its right to receive payment pursuant to Section 3.07 or Section
3.08), such Lender shall purchase from the other Lenders such participations in Loans made by them as shall be necessary to
cause such purchasing Lender to share the excess payment or other recovery ratably with each of them; provided, that if all or
any portion of the excess payment or other recovery is thereafter recovered from such purchasing Lender, the purchase shall be
rescinded and each Lender that has sold a participation to the purchasing Lender shall repay to the purchasing Lender the purchase
price to the ratable extent of such recovery together with an amount equal to such selling Lender’s ratable share (according
to the proportion of (x) the amount of such selling Lender’s required repayment to the purchasing Lender to (y) the total
amount so recovered from the purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in respect
of the total amount so recovered. Each Borrower agrees that any Lender so purchasing a participation from another Lender pursuant
to this Section 3.13 may, to the fullest extent permitted by law, exercise all its rights of payment (including pursuant
to Section 11.15 (Rights of Setoff)) with respect to such participation as fully as if such Lender were the direct
creditor of the Borrowers in the amount of such participation.

(b)              
If under any applicable bankruptcy, insolvency or other similar law, any Lender receives a secured claim in lieu of a setoff
to which this Section 3.13 applies, such Lender shall, to the extent practicable, exercise its rights in respect of such
secured claim in a manner consistent with the rights of the Lenders entitled under this Section 3.13 to share in the benefits
of any recovery on such secured claim.

Section
3.14 Commitment Increase.

(a)               
Request for Increase. Provided there exists no Default or Event of Default, upon notice to the Administrative Agent,
the Borrowers’ Agent may from time to time, request from all Lenders an increase in the Commitments by an amount in the aggregate
(for all such increases) not exceeding $5,000,000; provided that (i) any such increase shall be in a minimum amount of $1,000,000,
and (ii) the Borrowers’ Agent may make a maximum of five such requests. At the time of sending such notice, the Borrowers’
Agent shall specify the time period within which each such Lender is requested to respond (which shall in no event be less than
ten (10) Business Days or more than fifteen (15) Business Days, in each case as measured from the date of delivery of such notice
to the Lenders).

(b)              
Lender Election to Increase. Each Lender shall notify the Administrative Agent within such time period whether or
not it agrees to increase its Commitment and, if so, whether by an amount, equal to or less than its Commitment Percentage of such
requested increase. Any Lender not responding within such time period shall be deemed to have declined to increase its Commitment.

(c)               
Notification by Administrative Agent; Additional Lenders. The Administrative Agent shall notify the Borrowers and
each Lender of the Lenders’ responses to each request for a Commitment Increase made hereunder. If the Lenders have not agreed
to increase their collective Commitments by an amount equal to one-hundred percent (100%) of the requested Commitment Increase,
then, the Borrowers may invite Eligible Assignees to participate in the remaining amount of such requested increase (the “Shortfall”)
and become Lenders pursuant to a joinder agreement to this Agreement delivered to the Administrative Agent in form and substance
satisfactory to the Required Lenders. If the invited Eligible Assignees do not collectively commit to participate in an aggregate
amount equal to the Shortfall, then the Borrowers’ Agent shall offer to those Lenders that have increased their respective
Commitments in connection with such requested increase pursuant to this Section 3.14 their respective pro rata share
of the remaining amount of the Shortfall, and each such Lender shall respond within five (5) Business Days after the date such
offer is made to such Lender. Any such Lender not responding within such time period shall be deemed to have declined to further
increase its Commitment.

    	15

    	 

    

(d)              
Effective Date and Allocations. If the Commitments are increased in accordance with this Section 3.14 (each
such increase, a “Commitment Increase”), the Administrative Agent (at the direction of the Lenders holding in
excess of 50% of the Commitments provided pursuant to the applicable Commitment Increase) and the Borrowers shall determine the
effective date (the “Increase Effective Date”) and the final amount and allocation of such increase, it being
understood that if Lenders and invited Eligible Assignees, if any, elect to participate in such Commitment Increase in an amount
less than the full amount requested by the Borrowers, such Commitment Increase shall be in such lesser amount. The Borrowers shall
promptly notify the Administrative Agent and the Lenders of the final allocation of each Commitment Increase and the applicable
Increase Effective Date.

(e)               
Conditions to Effectiveness of Increase. As a condition precedent to each Commitment Increase, on the applicable
Increase Effective Date the Borrowers shall deliver to the Administrative Agent (x) a certificate of each Loan Party dated as of
such Increase Effective Date (in sufficient copies for each Lender) signed by an Authorized Officer of such Loan Party (i) certifying
and attaching the resolutions adopted by such Loan Party approving or consenting to such Commitment Increase, and (ii) in the case
of the Borrowers’ Agent, certifying that, before and after giving effect to such Commitment Increase, (A) all representations
and warranties made by any Borrower or the Pledgor in this Agreement and each other Financing Document to which any Borrower or
the Pledgor is a party are true and correct in all material respects on and as of the applicable Increase Effective Date, except
to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct
as of such earlier date, and (B) no Default or Event of Default exists, (y) such opinions of counsel, certificates, documents or
other requirements as may be requested by any Lender participating in such Commitment Increase and (z) (1) the joinder agreement
referenced in Section 3.14(c), duly executed by the Person becoming a Party hereto pursuant to the terms thereof (other
than for any Lender already a party to this Agreement) and (2) an amendment to Schedule 1.01(a) setting forth the Commitments
of each Lender after giving effect to the Commitment Increase. For the avoidance of doubt, after giving effect to any Commitment
Increase, the pro rata allocations among the Lenders shall be adjusted and the Administrative Agent shall provide each Lender with
a copy of the amendment to Schedule 1.01(a) delivered by the Borrowers. Other than the foregoing requirements to execute and deliver
a joinder to this Agreement, if applicable, any conditions to the Funding of Loans made available pursuant to a Commitment Increase
on the applicable Increase Effective Date may, notwithstanding anything to the contrary contained in this Agreement, be waived,
unless a Default or Event of Default has occurred and is continuing, solely by the Lenders providing such Commitment Increase if
immediately prior to giving effect to any Commitment Increase, the Commitment Availability of all Lenders is zero. Except as set
forth in this Section 3.14, each Funding of Loans made available pursuant to this Section 3.14 shall otherwise comply
with the requirements for each Funding set forth in this Agreement and shall require the delivery of a Funding Notice.

(f)               
No Amendment. Notwithstanding anything to the contrary contained in Section 11.01 (Amendments, Etc.)
or otherwise, any Commitment Increase in accordance with this Section 3.14 may be effected with the consent of the Borrowers
and the Lenders participating in such Commitment Increase, shall not require the consent of any other Lender or any Agent, and
is permitted by the terms of the Intercreditor Agreement.

 

    	16

    	 

    
 

ARTICLE
IV

EURODOLLAR RATE AND TAX PROVISIONS

Section
4.01 Eurodollar Rate Lending Unlawful. (a) If any Lender reasonably determines (which determination shall, upon
notice thereof to the Borrowers and the Administrative Agent, be conclusive and binding on the Borrowers absent manifest error)
that the introduction of or any change in or in the interpretation of any Law after the Closing Date makes it unlawful, or any
central bank or other Governmental Authority asserts after the Closing Date that it is unlawful, for such Lender to make, maintain
or fund any Loan as a Eurodollar Loan, the obligations of such Lender to make, maintain or fund any Loan as a Eurodollar Loan
shall, upon such determination, forthwith be suspended until such Lender shall notify the Borrowers and the Administrative Agent
that the circumstances causing such suspension no longer exist, and all Eurodollar Loans of such Lender shall automatically convert
into Base Rate Loans at the end of the then-current Interest Periods with respect thereto or sooner, if required by such Law or
assertion. Upon any such conversion the Borrowers shall pay any accrued interest on the amount so converted and, if such conversion
occurs on a day other than the last day of the then-current Interest Period for such affected Eurodollar Loans, such Lender shall
be entitled to make a request for, and the Borrowers shall pay, compensation for breakage costs under Section 4.05 (Funding
Losses).

(b)              
If such Lender notifies the Borrowers and the Administrative Agent that the circumstances giving rise to the suspension
described in Section 4.01(a) no longer apply, the Borrowers may elect (by delivering an Interest Period Notice) to convert
the principal amount of any such Base Rate Loan to a Eurodollar Loans in accordance with this Agreement.

Section
4.02 Inability to Determine Eurodollar Rates. (a)
In the event, and on each occasion, that on or before the day that is three (3) Business Days prior to the commencement of any
Interest Period for any Eurodollar Loan, (A) the Administrative Agent shall have determined in good faith that adequate and reasonable
means do not exist for ascertaining LIBOR or (B) the Required Lenders shall have determined in good faith and notified the Administrative
Agent in writing that (i) Dollar deposits in the amount of such Loan and with an Interest Period similar to such Interest Period
are not generally available in the London interbank market, or (ii) the rate at which such Dollar deposits are being offered will
not adequately and fairly reflect the cost to any Lender of making, maintaining or funding the principal amount of such Loan during
such Interest Period, then in either case the Administrative Agent shall forthwith notify the Borrowers and the Lenders of such
determination, whereupon each such Eurodollar Loan will automatically, on the last day of the then-existing Interest Period for
such Eurodollar Loan, convert into a Base Rate Loan. In the event of any such determination pursuant to Section 4.02(a)(A)
or (B)(i), any Funding Notice delivered by the Borrowers shall be deemed to be a request for a Base Rate Loan until the Administrative
Agent or the Required Lenders, as the case may be, determines that the circumstances giving rise to such notice no longer exist.
In the event of any determination pursuant to Section 4.02(a)(B)(ii), each affected Lender shall, and is hereby authorized
by the Borrowers to, fund its portion of the Loans as a Base Rate Loan. Each determination by the Administrative Agent or the
Required Lenders, as the case may be, hereunder shall be conclusive absent manifest error.

    	17

    	 

    

(b)              
Upon the Administrative Agent’s or the Required Lenders’ determination, as the case may be, that the condition
that was the subject of a notice under Section 4.02(a) has ceased, the Administrative Agent shall forthwith notify the Borrower
and the Lenders of such determination, whereupon the Borrowers may elect (by delivering an Interest Period Notice) to convert any
such Base Rate Loan to a Eurodollar Loan on the last day of the then-current Monthly Period in accordance with this Agreement.

Section
4.03 Increased Eurodollar Loan Costs. If after the Closing Date, the adoption of any applicable Law or any change
therein, or any change in the interpretation or administration thereof by any Governmental Authority charged with the interpretation
or administration thereof, or compliance by any Lender (or its Eurodollar Office) with any request or directive (whether or not
having the force of law) of any Governmental Authority would increase the cost (other than with respect to Taxes, which are addressed
in Section 4.07 (Taxes)) to such Lender of, or result in any reduction in the amount of any sum receivable by such
Lender (whether of principal, interest or any other amount) in respect of, making, maintaining or funding (or of its obligation
to make, maintain or fund) the Loans as Eurodollar Loans, then the Borrowers agree to pay directly to such Lender the amount of
any such increase or reduction. Such Lender shall promptly notify the Administrative Agent and the Borrowers in writing of the
occurrence of any such event, such notice to state in reasonable detail the reasons (including the basis for determination) therefor
and the additional amount required to compensate fully such Lender for such increased cost or reduced amount. Such additional
amounts shall be payable by the Borrowers directly to such Lender within thirty (30) days of delivery of such notice, and such
notice shall be binding on the Borrowers absent manifest error.

Section
4.04 Obligation to Mitigate. (a) Each Lender agrees
after it becomes aware of the occurrence of an event that would entitle it to give notice pursuant to Sections 4.01 (Eurodollar
Rate Lending Unlawful), 4.03 (Increased Eurodollar Loan Costs), or 4.06 (Increased Capital Costs)
or to receive additional amounts pursuant to Section 4.07 (Taxes), such Lender shall use reasonable efforts
to make, fund or maintain its affected Loan through another lending office if as a result thereof the increased costs would be
avoided or materially reduced or the illegality would thereby cease to exist and if, in the opinion of such Lender, the making,
funding or maintaining of such Loan through such other lending office would not be disadvantageous to such Lender, contrary to
such Lender’s normal banking practices or violate any applicable Law.

    	18

    	 

    

(b)              
No change by a Lender in its Domestic Office or Eurodollar Office made for such Lender’s convenience shall result
in any increased cost to the Borrowers.

(c)               
If any Lender demands compensation pursuant to Sections 4.03 (Increased Eurodollar Loan Costs) or 4.06
(Increased Capital Costs) with respect to any Eurodollar Loan, the Borrowers may, at any time upon at least three (3)
Business Day’s prior notice to such Lender through the Administrative Agent, elect to convert such Loan into a Base Rate
Loan. Thereafter, unless and until such Lender notifies the Borrowers that the circumstances giving rise to such notice no longer
apply, all such Eurodollar Loans by such Lender shall bear interest as Base Rate Loans. If such Lender notifies the Borrowers that
the circumstances giving rise to such notice no longer apply, the Borrowers may elect (by delivering an Interest Period Notice)
to convert the principal amount of each such Base Rate Loan to a Eurodollar Loans in accordance with this Agreement.

Section
4.05 Funding Losses. In the event that any Lender incurs any loss or expense (including any loss or expense incurred
by reason of the liquidation or redeployment of deposits or other funds acquired by such Lender to make, continue or maintain
any portion of the principal amount of any Loan as a Eurodollar Loan, and any customary administrative fees charged by such Lender
in connection with the foregoing, but excluding any lost profits) as a result of (a) any conversion or repayment or prepayment
of the principal amount of any Loans on a date other than the scheduled last day of the Interest Period applicable thereto, whether
pursuant to Section 3.07 (Optional Prepayment), 3.08 (Mandatory Prepayment), 4.01(a) (Eurodollar
Rate Lending Unlawful) or otherwise or (b) the Borrowers failing to make a Funding in accordance with any Funding Notice;
then, upon the written notice (including the basis for determination) of such Lender to the Borrowers (with a copy to the Administrative
Agent), the Borrowers shall, within thirty (30) days of receipt thereof, pay to the Administrative Agent for the account of such
Lender such amount as will (in the reasonable determination of such Lender) reimburse such Lender for such loss or expense. Such
written notice shall be binding on the Borrowers absent manifest error.

Section
4.06 Increased Capital Costs. If after the Closing Date any change in, or the introduction, adoption, effectiveness,
interpretation, reinterpretation or phase-in of, any applicable Law or guideline, or request (whether or not having the force
of law) of any Governmental Authority affects the amount of capital required to be maintained by any Lender, and such Lender reasonably
determines that the rate of return on its capital as a consequence of its Loan is reduced to a level below that which such Lender
could have achieved but for the occurrence of any such circumstance then, in any such case upon notice from time to time by such
Lender to the Borrowers, the Borrowers shall pay within thirty (30) days after such demand directly to such Lender additional
amounts sufficient to compensate such Lender for such reduction in rate of return. A statement of such Lender as to any such additional
amount or amounts (including the basis for determination) shall be binding on the Borrowers absent manifest error.

Section
4.07 Taxes.

(a)               
Payments Free of Taxes. Any and all payments by or on account of any Obligations shall be made free and clear of,
and without deduction for, any Taxes, unless required by Law; provided, that if any Borrower shall be required to deduct any Indemnified
Taxes from any such payment, then (i) the sum payable shall be increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section 4.07) the Agent or Lender (as the case may
be) receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrowers shall make
such deductions and (iii) the Borrowers shall pay the full amount deducted to the relevant Governmental Authority in accordance
with applicable Law.

    	19

    	 

    

(b)              
Payment of Other Taxes by the Borrowers. In addition, the Borrowers shall timely pay any Indemnified Taxes arising
from any payment made under any Financing Document or from the execution, delivery or enforcement of, or otherwise with respect
to, any Financing Document and not collected by withholding at the source as contemplated by Section 4.07(a) to the
relevant Governmental Authority in accordance with applicable Law.

(c)               
Indemnification by the Borrowers. The Borrowers shall indemnify each Agent and each Lender, within thirty (30) days
after written demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on
or attributable to amounts payable under this Section 4.07) paid by such Agent or Lender, as the case may be, and any penalties,
interest, additions to tax and reasonable expenses arising therefrom or with respect thereto (other than those resulting from the
gross negligence or willful misconduct of such Agent or Lender), whether or not such Indemnified Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability (including
the basis of determination) delivered to the Borrowers by a Lender or Agent, as the case may be, shall be conclusive absent manifest
error.

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

(e)               
Foreign Lenders. Each Lender (including any Participant and any other Person to which any Lender transfers its interests
in this Agreement as provided under Section 11.03 (Assignments)) that is not a United States Person (a “Non-U.S.
Lender”) shall deliver to the Borrowers and the Administrative Agent two (2) copies of U.S. Internal Revenue Service
Form W-8ECI, Form W-8BEN, Form W-8EXP or Form W-8IMY (with supporting documentation), or any subsequent versions thereof or successors
thereto, properly completed and duly executed by such Non-U.S. Lender and claiming, to the extent applicable, complete exemption
from, or a reduced rate of, U.S. federal withholding tax on all payments of interest by the Borrowers under the Financing Documents,
together with, in the case of a Non-U.S. Lender that is relying on an exemption pursuant to Section 871(h) or 881(c) of the Code,
a statement substantially in the form of Exhibit 4.07. Such forms shall be delivered by each Non-U.S. Lender on or before
the date it becomes a party to this Agreement. In addition, each Non-U.S. Lender shall deliver such forms promptly upon the obsolescence
or invalidity of any form previously delivered by such Non-U.S. Lender. Each Non-U.S. Lender shall promptly notify the Borrowers
and the Administrative Agent at any time it determines that it is no longer in a position to provide any previously delivered certificate
to the Borrowers (or any other form of certification adopted by U.S. taxing authorities for such purpose). The Borrowers shall
not be obligated to pay any additional amounts in respect of U.S. federal income taxes pursuant to this Section 4.07 (or
make an indemnification payment pursuant to this Section 4.07) to any Lender (or any Participant or other Person to which
any Lender transfers its interests in this Agreement as provided under Section 11.03 (Assignments)) if the obligation
to pay such additional amounts (or such indemnification) would not have arisen but for a failure by such Lender to comply with
this Section 4.07(e).

    	20

    	 

    

(f)               
In no event shall the Administrative
Agent or the Collateral Agent have any duty, obligation or liability with respect to the payment of any Taxes.

ARTICLE
V

REPRESENTATIONS AND WARRANTIES

In order to induce each Agent, each Lender
and each other party hereto (other than the Borrowers and the Borrowers’ Agent) to enter into this Agreement and to induce
each Lender to make the Loans hereunder, each Borrower represents and warrants to each Agent and each Lender as set forth in this
Article V on the date hereof, on the Closing Date, on the date of each Funding Notice and on each Funding Date (in each
case, except to the extent such representations and warranties expressly relate to a future date or as otherwise provided in Article
VI (Conditions Precedent)).

Section
5.01 Organization; Power and Compliance with Law. Each of the Borrowers (a) is a limited liability company duly
formed, validly existing and in good standing under the laws of the State of Delaware, (b) is duly qualified to do business as
is now being conducted and as is proposed to be conducted by such Borrower and is in good standing as a foreign limited liability
company in each jurisdiction where the nature of its business requires such qualification (other than any such failure to be so
qualified or in good standing that could not reasonably be expected to have a Material Adverse Effect) and (c) has all requisite
limited liability company power and authority required as of the date this representation is made or deemed repeated to enter
into and perform its obligations under each Transaction Document to which it is a party and to conduct its business as currently
conducted by it.

Section
5.02 Due Authorization; Non-Contravention. The execution, delivery and performance by each of the Borrowers of each
Transaction Document to which it is a party are within such Borrower’s limited liability company powers, have been duly
authorized by all necessary limited liability company action, and do not:

(a)               
contravene such Borrower’s Organic Documents (including its Borrower LLC Agreement);

(b)              
contravene in any material respect any Law binding on or affecting such Borrower;

(c)               
(i) in the case of any Financing Document, contravene any Contractual Obligation binding on or affecting such Borrower or
(ii) in the case of any Project Document, contravene any Contractual Obligation binding on or affecting such Borrower (other than
in the case of this Section 5.02(c)(ii) any contravention which could not reasonably be expected to have a Material Adverse
Effect);

    	21

    	 

    

(d)              
require any consent or approval under such Borrower’s Organic Documents that has not been obtained;

(e)               
require any consent or approval under any Contractual Obligations binding on or affecting such Borrower other than any approvals
or consents which have been obtained (and, in the case only of the execution, delivery and performance of the Project Documents,
any other approvals or consents the failure of which to obtain could not reasonably be expected to have a Material Adverse Effect);
or

(f)               
result in, or require the creation or imposition of, any Lien on any of such Borrower’s properties other than Permitted
Liens.

Section
5.03 Governmental Approvals.

(a)               
All Governmental Approvals that are required to be obtained by any Borrower in connection with (i) the due execution, delivery
and performance by such Borrower of the Financing Documents to which it is a party and (ii) the grant by the Borrowers and the
Pledgor of the Liens granted under the Security Documents and the validity, perfection and enforceability thereof have been obtained,
are in full force and effect, are properly in the name of the appropriate Person, and are final and Non-Appealable.

(b)              
All Necessary Project Approvals are in full force and effect, are properly in the name of the appropriate Person, and are
final and Non-Appealable except as a result of the Cold Shutdown of the Madera Plant.  There is no action, suit, investigation
or proceeding pending or to the knowledge of each Borrower, threatened that could reasonably be expected to result in the modification,
rescission, termination or suspension of any Necessary Project Approval that could reasonably be expected to have
a Material Adverse Effect.

(c)               
The information set forth in each application (including any updates or supplements thereto) submitted by or on behalf of
any Borrower in connection with each Necessary Project Approval was accurate and complete in all material respects at the time
of submission and continues to be accurate in all material respects and complete in all respects to the extent required for the
continued effectiveness of such Necessary Project Approval.

Section
5.04 Investment Company Act. None of the Borrowers is, and after giving effect to the Loans and the application
of the proceeds of the Loans as described herein none of the Borrowers will be, an “investment company” or a company
“controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as
amended.

Section
5.05 Validity of Financing Documents. Each Financing Document to which any Borrower is a party has been duly authorized,
validly executed and delivered, and constitutes the legal, valid and binding obligations of such Borrower enforceable in accordance
with its respective terms, except as the enforceability hereof or thereof may be limited by (a) bankruptcy, insolvency, reorganization,
or other similar laws affecting the enforcement of creditors’ rights generally and (b) general equitable principles (whether
considered in a proceeding in equity or at law).

    	22

    	 

    

Section
5.06 Financial Information. Each of the financial statements delivered pursuant to Section 6.01(h) (Conditions
to Closing – Financial Statements) and Section 7.03 (Reporting Requirements) has been prepared in
accordance with GAAP, and fairly presents in all material respects the consolidated financial condition of the Borrowers as at
the dates thereof and the results of their operations for the period then ended (subject, in the case of unaudited financial statements,
to changes resulting from audit and normal year-end adjustments and the absence of footnotes).

Section
5.07 No Material Adverse Effect. Since April 16, 2010 no Material Adverse Effect has occurred and is continuing.

Section
5.08 Project Compliance. (a) Each Plant is owned and maintained in material compliance with all applicable Laws
and the requirements of all Necessary Project Approvals.

(b)              
Each Plant is owned and maintained in compliance in all material respects with all of the Borrowers’ Contractual Obligations
(including the Project Documents applicable to such Plant, taking into account any cure or grace periods thereunder and the Borrower’s
right to replace Project Documents as set forth in Section 9.01(i) (Events of Default – Project Document Defaults;
Termination)) (except, (i) in the case of Contractual Obligations other than Project Documents, to the extent such failure
to comply could not reasonably be expected to result in a Material Adverse Effect with respect to such Plant or Borrower and (ii)
the cessation of operations and Cold Shutdown of the Madera Plant).

Section
5.09 Litigation. (a) No action, suit, proceeding or investigation has been instituted or threatened against any
of Pacific Holding, the Pledgor, or any Plant or Borrower (including in connection with any Necessary Project Approval) that,
individually or in the aggregate, has had or could reasonably be expected to have a Material Adverse Effect on any Plant or Borrower;
and

(b)              
no action, suit, proceeding or investigation has been instituted or threatened against any Major Project Party that is party
to any Project Document with Pacific Holding or that relates to any Borrower or Plant that, individually or in the aggregate, has
had or could reasonably be expected to have a Material Adverse Effect.

Section
5.10 Sole Purpose Nature; Business. None of the Borrowers has conducted nor is conducting any business or activities
other than businesses and activities relating to the ownership, development, testing, financing, construction, operation and maintenance
of the Project as contemplated by the Transaction Documents.

Section
5.11 Contracts.

 

(a)               
All contracts, agreements, instruments, letters, understandings, or other documentation to which any Borrower is a party
or by which it or any of its properties is bound as of June 25, 2010 (other than the Existing Financing Documents), including the
Project Documents (including all documents amending, supplementing, interpreting or otherwise modifying or clarifying such agreements
and instruments) are listed in Schedule 5.11(i). All material contracts, agreements, instruments, letters, understandings,
or other documentation to which any Borrower entered into after June 25, 2010 (other than the Financing Documents and the Existing
Financing Documents), including any such Project Documents (including all documents amending, supplementing, interpreting or otherwise
modifying or clarifying such agreements and instruments), are listed in Schedule 5.11(ii), provided, that for the purposes
of this Section 5.11(a), any such contract, agreement, instrument, letter, understanding, or other document that would reasonably
be expected to provide for aggregate payments to or from, or aggregate liabilities of, the Loan Parties, equal to or in excess
of five hundred thousand Dollars ($500,000) and each Project Document entered into since June 25, 2010 shall be deemed to be material.

    	23

    	 

    

(b)              
All Necessary Project Contracts are in full force and effect except such Necessary Projects Contracts the invalidity of
which could not reasonably be expected to have a Material Adverse Effect.

(c)               
As of any date (after the Closing Date) on which this representation is made or deemed repeated, there are no material contracts,
agreements, instruments, or documents between any Borrower and any other Person relating to any Borrower or the Project other than
(i) the Transaction Documents, (ii) the agreements listed in Schedule 5.11, and (iii) any other agreements permitted by
this Agreement.

Section
5.12 Collateral. (a) The Collateral includes all of the Equity Interests in and all of the tangible and intangible
assets of each Borrower (except, with respect to any asset the assignment of which is not permitted, as otherwise expressly provided
in the applicable Security Agreement).

(b)              
The respective Liens and security interests granted to the Collateral Agent (for the benefit of the Senior Secured Parties)
pursuant to the Security Documents in effect on each date this representation is made or deemed repeated (i) constitute, as to
personal property included in the Collateral, a valid first-priority security interest in such personal property and (ii) constitute,
as to the Mortgaged Property included in the Collateral, a valid first-priority Lien of record in the Mortgaged Property, in each
case subject only to Permitted Liens.

(c)               
The security interests granted to the Collateral Agent (for the benefit of the Senior Secured Parties) pursuant to the Security
Documents in the Collateral consisting of personal property will be perfected, as specified in the Intercreditor Agreement, (i)
with respect to any property that can be perfected by filing, upon the filing of UCC financing statements in the filing offices
identified in Schedule 5.12, (ii) with respect to any Project Account or Local Account Collateral that can be perfected
solely by control, upon execution of this Agreement and the Blocked Account Agreements, respectively and (iii) with respect to
any property (if any) that can be perfected solely by possession, pursuant to the Intercreditor Agreement, upon the Existing Collateral
Agent receiving possession thereof, for purposes of perfecting the First Priority Liens (as defined in the Intercreditor Agreement),
as gratuitous bailee for the Collateral Agent, and in each case such security interest will be, as to Collateral perfected under
the UCC or otherwise as aforesaid, superior and prior to the rights of all third Persons now existing or hereafter arising whether
by way of mortgage, lien, security interests, encumbrance, assignment or otherwise, in each case subject only to Permitted Liens.
All such action as is necessary has been taken to establish and perfect the Collateral Agent’s rights in and to the Collateral
covered by the Security Documents on the date this representation is made or deemed repeated to the extent the Collateral Agent’s
security interest can be perfected by filing, including any recordation, filing, registration, giving of notice or other similar
action. No filing, recordation, re-filing or re-recording other than those listed on Schedule 5.12 (as the same may be updated
at the written request of the Borrowers’ Agent, with the written agreement of the Administrative Agent, following any change
in applicable law) is necessary to perfect (or maintain the perfection of) the interest, title or Liens of the Security Documents
(to the extent the Collateral Agent’s security interest can be perfected by filing or recording), and on and as of each relevant
date which this representation and warranty is made or deemed repeated, all such filings or recordings have been made with respect
to each Security Document then in effect. The Borrowers and the Pledgor have properly delivered or caused to be delivered to the
Existing Collateral Agent, or provided the Existing Collateral Agent control of (in each case for purposes of perfecting the First
Priority Liens (as defined in the Intercreditor Agreement), as gratuitous bailee for the Collateral Agent), all Collateral that
requires perfection of the Liens and security interests described above by possession or control, in each case in accordance with
the Intercreditor Agreement. All or substantially all of the Collateral (other than the Project Account Collateral, the Local Account
Collateral, certificates, securities, investments, chattel paper, books and records and general intangibles), including the Mortgaged
Property, is or will (when acquired) be located on the Sites.

    	24

    	 

    

Section
5.13 Ownership of Properties. (a) Madera has a good
and valid fee ownership interest in the Site for the Madera Plant (except as contemplated by Section 7.02(f) (Negative Covenants
– Asset Dispositions)). Boardman has a good and valid leasehold interest or valid fee ownership in the Site for
the Boardman Plant (except as contemplated by Section 7.02(f) (Negative Covenants – Asset Dispositions)).
Burley has a good and valid fee ownership interest in the Site for the Burley Plant (except as contemplated by Section 7.02(f)
(Negative Covenants – Asset Dispositions)). Stockton has a good and valid leasehold interest or valid fee ownership
in the Site for the Stockton Plant (except as contemplated by Section 7.02(f) (Negative Covenants – Asset Dispositions)).
Each such Site is described on Schedule 5.13(a).

(b)              
Except as contemplated by Section 7.02(f) (Negative Covenants – Asset Dispositions), the Borrowers
have a good and valid ownership interest, leasehold interest, license interest or other right of use in all other property and
assets (tangible and intangible) included in the Collateral (other than the collateral pledged pursuant to the Pacific Holding
Pledge Agreement). Such ownership interests, leasehold interest, license interest or other rights of use are and will be sufficient
(along with the Kirby Equipment) to permit operation of the Plants substantially in accordance with the Project Documents applicable
to each such Plant. None of said properties or assets are subject to any Liens or, to the knowledge of each Borrower, any other
claims of any Person, including any easements, rights of way or similar agreements affecting the use or occupancy of the Project,
any Plant or any Site, other than Permitted Liens and, with respect to claims, to the extent permitted by Section 5.09 (Litigation).

(c)               
All Equity Interests in each of Madera, Boardman, Stockton and Burley are owned by Pacific Holding.

(d)              
All Equity Interests in Pacific Holding are owned by the Pledgor.

(e)               
The properties and assets of each of the Borrowers are separately identifiable and are not commingled with the properties
and assets of any other Person (other than any Borrower) and are readily distinguishable from one another (except to the extent
otherwise contemplated by the Transaction Documents).

(f)               
None of the Borrowers has any leasehold interest in, and none of the Borrowers is lessee of, any real property other than
the Leased Premises.

    	25

    	 

    

Section
5.14 Taxes. (a) Each Borrower has (i) filed all Tax Returns required by law to have been filed by it and (ii) has
paid all Taxes thereby shown to be owing, as and when the same are due and payable, other than in the case of this Section
5.14(a)(ii), (A) Taxes that are subject to a Contest or (B) the nonpayment of immaterial Taxes in an aggregate amount not
in excess of twenty-five thousand Dollars ($25,000) at any one time outstanding (taking into account any interest and penalties
that could accrue or be applicable to such past-due Taxes), and provided that such Taxes are no more than forty-five (45) days
past due.

(b)              
None of the Borrowers is or will be taxable as a corporation for federal, state or local tax purposes.

(c)               
No Borrower is a party to any tax sharing agreement with any Person.

Section
5.15 Patents, Trademarks, Etc. Pacific Holding and each other Borrower has obtained and holds in full force
and effect all material patents, trademarks, copyrights and other such material rights or adequate licenses therein
(including on the Closing Date the license with respect to the use of the Pacific Ethanol name granted pursuant to the Asset
Management Agreement), free from unduly burdensome restrictions, that are necessary for the ownership, construction,
operation and maintenance of the Project.

Section
5.16 ERISA Plans. None of the Borrowers nor any ERISA Affiliate has (or within the five year period immediately
preceding the Closing Date had) any liability in respect of any Plan or Multiemployer Plan. None of the Borrowers has any contingent
liability with respect to any post-retirement benefit under any “welfare plan” (as defined in Section 3(1) of ERISA),
other than liability for continuation coverage under Part 6 of Title I of ERISA.

Section
5.17 Property Rights, Utilities, Supplies Etc. (a)  All material property interests, utility services, means of transportation, facilities and other materials necessary for the
use and operation of the Project (including, as necessary, gas, roads, rail transport, electrical, water and sewage services
and facilities) are available to each Plant.

(b)              
There are no material materials, supplies or equipment necessary for operation or maintenance of each Plant that are not
available at the relevant Site on commercially reasonable terms consistent with the Budget.

    	26

    	 

    

Section
5.18 No Defaults. (a) No Event of Default has occurred
and is continuing.

(b)              
None of Pacific Holding or any other Borrower is in any breach of, or in any default under, any of such Borrower’s
Contractual Obligations that has had or could reasonably be expected to have a Material Adverse Effect with respect to such Borrower.

Section
5.19 Environmental Warranties.

(a)               
Except as set forth on Schedule 5.19(a)(i), (i) Each Borrower is in compliance in all material respects with all
applicable Environmental Laws, (ii) each Borrower has all Environmental Approvals required to operate its business as presently
conducted or as reasonably anticipated to be conducted and is in compliance in all material respects with the terms and conditions
thereof, (iii) no Borrower nor any of its Environmental Affiliates has received any written communication (other than any such
communication that the Administrative Agent has agreed in writing is not materially adverse) from a Governmental Authority that
alleges that any Borrower or any Environmental Affiliate is not in compliance in all material respects with all Environmental Laws
and Environmental Approvals, and (iv) there are no circumstances that may prevent or interfere in the future with any Borrower’s
compliance in all material respects with all applicable Environmental Laws and Environmental Approvals.

(b)              
There is no Environmental Claim pending, or to the knowledge of each Borrower, threatened against any Borrower. No Environmental
Affiliate has taken any action or violated any Environmental Law that to the knowledge of a Borrower could reasonably be expected
to result in an Environmental Claim.

(c)               
There are no present or past actions, activities, circumstances, conditions, events or incidents, including the release,
emission, discharge, presence or disposal of any Material of Environmental Concern, that could reasonably be expected to form the
basis of any Environmental Claim against any Borrower or any Environmental Affiliate.

(d)              
Without in any way limiting the generality of the foregoing, (i) there are no on-site or off-site locations in which any
Borrower or, to the knowledge of each Borrower, any Environmental Affiliate has stored, disposed or arranged for the disposal of
Materials of Environmental Concern that could reasonably be expected to form the basis of an Environmental Claim, (ii) none of
the Borrowers knows of any underground storage tanks located or to be located on property owned or leased by any Borrower except
as identified on Schedule 5.19(d)(ii) (as the same may be updated in writing by the Borrowers’ Agent with the
written approval of the Administrative Agent), (iii) there is no asbestos or lead paint contained in or forming part of any building,
building component, structure or office space owned or leased by any Borrower except in such form, condition and quantity as could
not reasonably be expected to result in an Environmental Claim, and (iv) no polychlorinated biphenyls (PCBs) are or will be used
or stored at any property owned or leased by any Borrower, except in such form, condition and quantity as could not reasonably
be expected to result in an Environmental Claim.

    	27

    	 

    

(e)               
None of the Borrowers has received any letter or request for information under Section 104 of the CERCLA, or comparable
state laws, and to the knowledge of the Borrowers, none of the operations of the Borrowers is the subject of any investigation
by a Governmental Authority evaluating whether any remedial action is needed to respond to a release or threatened release of any
Material of Environmental Concern at any Plant or Site or at any other location, including any location to which any Borrower has
transported, or arranged for the transportation of, any Material of Environmental Concern with respect to the Project.

Section
5.20 Regulations T, U and X. None of the Borrowers is engaged in the business of extending credit for the purpose
of purchasing or carrying margin stock, and no proceeds of any Loan will be used for any purpose that violates, or would be inconsistent
with, F.R.S. Board Regulation T, U or X. Terms for which meanings are provided in F.R.S. Board Regulation T, U or X or any regulations
substituted therefore, as from time to time in effect, are used in this Section 5.20 with such meanings.

Section
5.21 Accuracy of Information. (a) All factual information heretofore or contemporaneously furnished by or on behalf
of any Borrower in this Agreement, in any other Transaction Document or otherwise in writing to any Senior Secured Party, any
Consultant, or counsel for purposes of or in connection with this Agreement and the other Financing Documents or any transaction
contemplated hereby or thereby (other than projections, budgets and other “forward-looking” information all of which
has been prepared on a reasonable basis and in good faith) was, as of the date furnished, when taken as a whole (and after giving
effect to any supplement of such information) (i) true and accurate in every material respect and (ii) not incomplete by omitting
to state any material fact necessary to make such information not misleading in any material respect.

(b)              
The assumptions constituting the basis on which the Borrowers prepared the Budget that is in effect on each date this representation
is made or deemed repeated and the numbers set forth therein were developed and consistently utilized in good faith and are reasonable
and represent each Borrower’s best judgment as of the date prepared as to the matters contained therein, based on all information
known to the Borrowers.

(c)               
The Borrowers reasonably believe that the use, ownership, operation and maintenance of the Project are technically feasible
and, except for factors effecting the ethanol industry in general and not relating specifically to the Plants or the Project, economically
feasible.

Section
5.22 Indebtedness. The Obligations are, after giving effect to the Financing Documents and the transactions contemplated
thereby, the only outstanding Indebtedness of the Borrowers other than Permitted Indebtedness. The Obligations rank at least pari
passu with all other Indebtedness of any Borrower.

Section
5.23 Separateness. (a) Each Borrower maintains separate bank accounts and separate books of account from each other
Borrower and from the Pledgor (other than the Project Accounts maintained in accordance with this Agreement). The separate liabilities
of each Borrower are readily distinguishable from the liabilities of each Affiliate of the Borrowers, including the Pledgor (except
to the extent otherwise contemplated by the Transaction Documents).

    	28

    	 

    

(b)              
Each Borrower conducts its business solely in its own name in a manner not misleading to other Persons as to its identity.

(c)               
Each Borrower is in compliance with the provisions set forth on Schedule 5.23.

Section
5.24 Subsidiaries. Madera, Boardman, Stockton and Burley have no Subsidiaries. Pacific Holding has no Subsidiaries
other than Madera, Boardman, Stockton and Burley.

Section
5.25 Foreign Assets Control Regulations, Etc.  (a) The use of the proceeds of the Loan by the Borrowers
will not violate the Trading with the Enemy Act, as amended, or any of the foreign assets control regulations of the United States
Treasury Department (31 C.F.R., Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto.

(b)              
None of the Borrowers:

		(i)	is or will become a Person or entity described by section 1 of Executive Order 13224 of September 24, 2001 Blocking Property
and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (12 C.F.R. 595), and none of the
Borrowers engages in dealings or transactions with any such Persons or entities; or

		(ii)	is in violation of the Patriot Act.

Section
5.26 Employment Matters. None of the Borrowers has or has had any employees or former employees.

Section
5.27 Solvency. Each of the Borrowers is and, upon the incurrence of any Obligations by the Borrowers and after giving
effect to the transactions contemplated hereby, will be, Solvent.

Section
5.28 Legal Name and Place of Business. (a) The exact
legal name and jurisdiction of formation of each Borrower is as set forth below, and none of the Borrowers has had any other legal
names in the previous five (5) years except as set forth on Schedule 5.28:

		(i)	Pacific Holding: Pacific Ethanol Holding Co. LLC, a limited liability company organized and existing under the laws of the
State of Delaware;

		(ii)	Madera: Pacific Ethanol Madera LLC, a limited liability company organized and existing under the laws of the State of Delaware;

		(iii)	Boardman: Pacific Ethanol Columbia, LLC, a limited liability company organized and existing under the laws of the State of
Delaware

    	29

    	 

    
	

		(iv)	Stockton: Pacific Ethanol Stockton LLC, a limited liability company organized and existing under the laws of the State of Delaware;
and

		(v)	Burley: Pacific Ethanol Magic Valley, LLC, a limited liability company organized and existing under the laws of the State of
Delaware.

(b)              
The sole place of business and chief executive office of each Borrower is as set forth on Schedule 5.28.

The information set forth in Sections
5.28(a) and (b) and on Schedule 5.28 may be changed from time to time by the Borrowers upon thirty (30) days’
prior written notice to the Administrative Agent and the Collateral Agent, subject in each case to the Borrowers’ obligations
hereunder to provide the Collateral Agent with a perfected first-priority Lien on the Collateral (subject to Permitted Liens).

Section
5.29 No Brokers. None of the Borrowers has any obligation to pay any finder’s, advisory, brokers or investment
banking fee, except for the fees payable pursuant to Section 3.11 (Fees) and those identified on Schedule 5.29.

Section
5.30 Insurance. All insurance required to be obtained and maintained pursuant to the Transaction Documents by Pacific
Holding and each other Borrower is in full force and effect as of each date this representation is made or deemed repeated and
complies with the insurance requirements set forth on Schedule 7.01(h). All premiums then due and payable on all such insurance
have been paid. To the knowledge of each Borrower, all insurance required to be obtained and maintained by any Major Project Party
to protect, directly or indirectly, against loss or liability to any Borrower, any Plant or any Senior Secured Party, as of the
date this representation is made or deemed repeated, pursuant to any Project Document relating to any such Plant has been obtained,
is in full force and effect and complies with the insurance requirements set forth on Schedule 7.01(h) (where applicable)
and is otherwise in all material respects in accordance with such Project Document.

Section
5.31 Accounts. The Project Accounts exist at the Accounts Bank in accordance and in compliance with the terms of
the Existing Credit Agreement. No Borrower has, nor is the beneficiary of, any bank account other than the Project Accounts. As
of the Closing Date no Borrower has any Local Accounts.

Section
5.32 Interest Rate Protection Agreements. As of the date hereof, there are no Interest Rate Protection Agreements.

ARTICLE
VI

CONDITIONS PRECEDENT

Section
6.01 Conditions to Closing. The occurrence of the Closing
Date shall be subject to the satisfaction of each of the following conditions precedent (satisfaction of which may be effected,
as applicable and unless otherwise requested by the Required Lenders, by reliance on documents heretofore delivered to any Existing
Agents pursuant to the Existing Credit Agreement, as applicable), as certified by the Borrowers’ Agent to the Administrative
Agent:

    	30

    	 

    

(a)               
Delivery of Financing Documents. The Administrative Agent shall have received each of the following fully executed
documents, each of which shall be originals, portable document format (“pdf”) or facsimiles, duly executed and
delivered by each party thereto:

		(i)	this Agreement;

		(ii)	the Intercreditor Agreement;

		(iii)	the original Notes, duly executed and delivered by an Authorized Officer of each Borrower in favor of each requesting Lender;

		(iv)	each Mortgage;

		(v)	each Subordination Agreement;

		(vi)	each Pledge Agreement;

		(vii)	each Security Agreement;

		(viii)	the Amended Credit Agreement;

		(ix)	each Closing Date Consent; and

		(x)	the Fee Letters.

(b)              
Delivery of Documents. The Administrative Agent shall have received a true, correct and complete copy of each agreement
identified on Schedule 5.11 dated as of a date on or after June 26, 2010 that is reasonably requested by any Lender.

(c)               
Officer’s Certificates. The Administrative Agent shall have received the following certificates, dated as of
the Closing Date, upon which the Administrative Agent and each Lender may conclusively rely:

		(i)	a duly executed certificate of an Authorized Officer of the Borrowers’ Agent certifying that (A) all conditions set forth
in this Section 6.01 have been satisfied on and as of the Closing Date and (B) all representations and warranties made by
any Borrower or the Pledgor in this Agreement and each other Financing Document to which any Borrower or the Pledgor is a party
are true and correct in all material respects on and as of the Closing Date; and

    	31

    	 

    
	

		(ii)	a duly executed certificate of an Authorized Officer of the Borrowers’ Agent certifying that (A) the copies of each document
delivered pursuant to Section 6.01(b) are true, correct and complete copies of such documents, (B) such documents are in
full force and effect and no term or condition of any such Project Document has been amended from the form thereof delivered to
the Administrative Agent, and (C) no material breach, material default or material violation by any Borrower, or to the knowledge
of each Borrower, any Project Party under any Project Document has occurred and is continuing.

(d)              
Resolutions, Incumbency, LLC Agreements. The Administrative Agent shall have received from each of the Borrowers
and the Pledgor a certificate of an Authorized Officer dated as of the Closing Date, upon which the Administrative Agent and each
Lender may conclusively rely, as to:

		(i)	reasonably satisfactory resolutions of its members, managers or directors, as the case may be, then in full force and effect
authorizing the execution, delivery and performance of each Transaction Document to which it is party and the consummation of the
transactions contemplated therein (including, in the case of each Borrower, the appointment of the Borrowers’ Agent);

		(ii)	the incumbency and signatures of those of its officers and representatives duly authorized to execute and otherwise act with
respect to each Financing Document to which it is party; and

		(iii)	such Person’s Organic Documents which, in the case of each Borrower, shall be in form and substance reasonably satisfactory
to the Required Lenders, and in every case certifying that (A) such documents are in full force and effect and no term or condition
thereof has been amended from the form thereof delivered to the Administrative Agent and (B) no material breach, material default
or material violation thereunder has occurred and is continuing.

(e)               
Authority to Conduct Business. The Administrative Agent shall have received evidence, including certificates of good
standing from the Secretaries of State of each relevant jurisdiction, dated no more than eight (8) days (or such other time period
reasonably acceptable to the Required Lenders) prior to the Closing Date, that:

		(i)	each Borrower is duly authorized as a limited liability company to carry on its business, and is duly formed, validly existing
and in good standing in each jurisdiction (including, in the case of Madera and Stockton, the State of California, in the case
of Boardman, the State of Oregon, and in the case of Burley, the State of Idaho) in which it is required to be so authorized; and

    	32

    	 

    
	

		(ii)	the Pledgor is duly authorized as a limited liability company to carry on its business, and is duly organized, validly existing
and in good standing in each jurisdiction in which it is required to be so authorized.

(f)               
Opinions of Counsel. The Administrative Agent shall have received the following legal opinions, addressed to the
Senior Secured Parties, and each in form and substance reasonably satisfactory to the Required Lenders:

		(i)	the opinion of Snell & Wilmer LLP, New York and California counsel to the Loan Parties (and covering customary matters
under Delaware law);

		(ii)	the opinion of Tonkon Torp LLP, Oregon counsel to the Loan Parties; and

		(iii)	the opinion of Holland & Hart LLP, Idaho counsel to the Loan Parties.

(g)              
Lien Search; Perfection of Security. The Collateral Agent shall have been granted a first priority perfected security
interest in all Collateral, and the Administrative Agent shall have received copies or evidence, as the case may be, of the following
actions in connection with the perfection of the Security:

		(i)	completed requests for information or lien search reports, dated no more than eight (8) days (or such other time period reasonably
acceptable to the Required Lenders) before the Closing Date, listing all effective UCC financing statements, fixture filings or
other filings evidencing a security interest filed in Delaware, California, Oregon, Idaho, and any other jurisdictions reasonably
requested by the Required Lenders that name any Borrower or the Pledgor as a debtor, together with copies of each such UCC financing
statement, fixture filing or other filings, which shall show no Liens other than Permitted Liens;

		(ii)	UCC financing statements and other filings and recordations (other than fixture filings or recordation of any Mortgage), in
proper form for filing in all jurisdictions that the Required Lenders may deem necessary or desirable in order to perfect and protect
the first priority Liens and security interests created under the Security Documents and each such UCC financing statement and
other filing or recordation shall be duly filed on behalf of the Senior Secured Parties on the Closing Date;

		(iii)	the original certificates representing all Equity Interests in each Borrower shall have been delivered to the Existing Collateral
Agent, in each case together with a duly executed transfer power in the form attached to the Pledge Agreement relating to such
Equity Interests; and

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		(iv)	evidence of the making (which may be on the Closing Date) of all other actions, recordings and filings of or with respect to
the Security Documents delivered pursuant to Section 6.01(a) (Conditions to Closing – Delivery of Financing Documents)
that the Required Lenders may deem necessary or desirable in order to perfect and protect the first priority Liens created thereunder.

(h)              
Financial Statements. The Administrative Agent shall have received accurate and complete copies of the most recent
financial statements of the Borrowers available on the Closing Date.

(i)                
Third Party Approvals. The Administrative Agent shall have received documentation reasonably satisfactory to the
Required Lenders of any approval by any Person required in connection with any transaction contemplated by this Agreement or any
other Financing Document that any Lender has reasonably requested in connection herewith.

(j)                
Existence of Project Accounts. Each of the Project Accounts shall be in existence with the Accounts Bank in accordance
and in compliance with the terms of the Existing Credit Agreement, to the satisfaction of the Lenders.

(k)              
Insurance. The Administrative Agent shall have received evidence reasonably satisfactory to the Lenders that the
insurance requirements set forth on Schedule 7.01(h) with respect to the Borrowers and the Plants have been satisfied, including
binders or certificates evidencing the commitment of insurers to provide each insurance policy required by Schedule 7.01(h),
evidence of the payment of all premiums then due and owing in respect of such insurance policies and a certificate of the Borrowers’
insurance broker (or insurance carrier) certifying that all such insurance policies are in full force and effect.

(l)                
Governmental Approvals. Each Borrower that owns a Plant shall have all Necessary Project Approvals required as of
the Closing Date to operate such Plant (in Cold Shutdown in the case of the Madera Plant), and the Administrative Agent shall have
received a duly executed certificate of an Authorized Officer of the Borrowers’ Agent certifying that (i) attached to such
certificate are true, correct and complete copies of each such Necessary Project Approval dated as of a date on or after June 26,
2010 and reasonably requested by the Required Lenders and (ii) each Necessary Project Approval is in full force and effect and
is final and Non-Appealable.

(m)            
Budgets; Forecast. The Administrative Agent shall have received the Initial Budget, accompanied by a certificate
of an Authorized Officer of the Borrowers’ Agent, dated as of the Closing Date, certifying as to the reasonableness of the
underlying assumptions and the conclusions on which the Initial Budget is based, each in form and substance reasonably satisfactory
to the Required Lenders. The Administrative Agent shall have received the Initial Annual Forecast.

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(n)              
Title Insurance.

		(i)	The Administrative Agent shall have received a paid policy or policies of mortgage title insurance (the “Title Insurance
Policy”) with respect to each Site on a Form 2006 extended coverage lender’s policy, containing such endorsements
as the Required Lenders may request and otherwise in form and substance reasonably satisfactory to the Required Lenders, from the
Title Insurance Company, containing no exception for mechanics’ or materialmen’s Liens and no other exceptions (printed
or otherwise) other than those approved by the Required Lenders, and insuring that the Collateral Agent has a good, valid and enforceable
first Lien of record on the corresponding Mortgaged Property free and clear of all defects and encumbrances (other than Permitted
Liens).

		(ii)	The Title Insurance Policy shall confirm that (A) Madera has good, marketable title to the Madera Site subject to no Liens
(other than Liens in favor of the Collateral Agent or other Permitted Liens), (B) Boardman has a valid and subsisting leasehold
estate in and to the Boardman Leased Premises subject to no Liens (other than Liens in favor of the Collateral Agent or other Permitted
Liens), (C) Burley has good, marketable title to the Burley Site subject to no Liens (other than Permitted Liens) and (D) Stockton
has a valid and subsisting leasehold estate in and to the Stockton Leased Premises subject to no Liens (other than Permitted Liens).

(o)              
Bank Regulatory Requirements. The Administrative Agent shall have received at least one (1) Business Day prior to
the Closing Date all documentation and other information required by bank regulatory authorities under applicable “know your
customer” and anti-money-laundering rules and regulations, including the Patriot Act.

(p)              
Closing Fees; Expenses. The Administrative Agent shall have received for its own account, all fees due and payable
pursuant to Section 3.11 (Fees) and all reasonable costs and expenses (including reasonable and documented legal
fees and expenses) for which invoices have been presented, in each case, required to be paid on or before the Closing Date. Each
other party hereto shall have received for its own account, all fees due and payable pursuant to Section 3.11 (Fees)
and all reasonable costs and expenses (including reasonable and documented legal fees and expenses) required to be paid by the
Borrowers hereunder and for which invoices have been presented.

(q)              
The concurrent occurrence of the “Restatement Effective Date” as defined in the Amended Credit Agreement.

Section
6.02 Conditions to All Fundings. The obligation of each Lender to make available each Funding of its Loans, shall
be subject to the fulfillment of the following conditions precedent.

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(a)               
Funding Notice. The Administrative Agent shall have received a duly executed Funding Notice, as required by and in
accordance with Section 2.02 (Notice of Fundings), which shall certify that:

		(i)	the Borrowers are in compliance with all conditions set forth in this Section 6.02, and each other applicable Section
of this Article VI, on and as of the proposed Funding Date, before and after giving effect to such Funding and to the
application of the proceeds therefrom;

		(ii)	all representations and warranties made by each of the Borrowers and the Pledgor in this Agreement and each of the Financing
Documents to which it is a party are true and correct in all material respects on and as of such Funding Date (except with respect
to representations and warranties that expressly refer to an earlier date), before and after giving effect to such Funding and
to the application of the proceeds therefrom; and

		(iii)	since April 16, 2010, no Material Adverse Effect has occurred and is continuing.

(b)              
Government Approvals. Each Borrower that owns a Plant shall have all Necessary Project Approvals required as of the
date of such requested Funding to operate such Plant (in Cold Shutdown in the case of the Madera Plant), and the Administrative
Agent shall have received a duly executed certificate of an Authorized Officer of the relevant Borrowers certifying that each such
Necessary Project Approval is in full force and effect and is final and Non-Appealable.

(c)               
No Default or Event of Default. No Default or Event of Default has occurred and is continuing, or would result from
such Funding.

(d)              
Representations and Warranties. All representations and warranties made by each of the Borrowers and the Pledgor
in this Agreement and each of the Financing Documents to which it is a party shall be true and correct in all material respects
on and as of such Funding Date (except with respect to representations and warranties that expressly refer to an earlier date),
before and after giving effect to such Funding and to the application of the proceeds therefrom.

(e)               
No Litigation.

		(i)	No action, suit, proceeding or investigation shall have been instituted or threatened against any of Pacific Holding, the Pledgor,
or any Plant or Borrower that, individually or in the aggregate, has had or could reasonably be expected to have a Material Adverse
Effect; and

		(ii)	no action, suit, proceeding or investigation shall have been instituted or threatened against any Project Party that is party
to any Project Document with Pacific Holding or that relates to any Borrower or Plant that, individually or in the aggregate, has
had or could reasonably be expected to have a Material Adverse Effect.

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(f)               
Abandonment, Taking, Total Loss. (i) No Event of Abandonment or Event of Total Loss shall have occurred and be continuing
with respect to any Plant, (ii) no Event of Taking relating to any Equity Interests in Pacific Holding or any other Borrower shall
have occurred and be continuing, or (iii) no Event of Taking with respect to a material part of any Plant shall have occurred.

(g)              
Closing Date. The Closing Date shall have occurred.

(h)              
Fees; Expenses. The Administrative Agent shall have received for its own account, or for the account of each Lender
and Agent entitled thereto, all fees due and payable as of the date of such Funding pursuant to Section 3.11 (Fees),
and all costs and expenses (including reasonable and documented costs, fees and expenses of legal counsel) for which invoices have
been presented.

ARTICLE
VII

COVENANTS

Section
7.01 Affirmative Covenants. Each Borrower agrees with each Agent and each Lender that, until the Discharge Date,
each of the Borrowers will perform the obligations set forth in this Section 7.01 applicable to it.

(a)               
Compliance with Laws. Each Borrower shall comply in all material respects with all Laws (other than Environmental
Laws) applicable to it or to its business or property.

(b)              
Environmental Matters.

		(i)	The Borrowers shall (A) comply in all material respects with all Environmental Laws, (B) keep the Project free of any Lien
imposed pursuant to any Environmental Law, (C) pay or cause to be paid when due and payable by any Borrower any and all costs required
in connection with any Environmental Laws, including the cost of identifying the nature and extent of the presence of any Materials
of Environmental Concern in, on or about the Project or on any real property owned or leased by any Borrower or on the Mortgaged
Property, and the cost of delineation, management, remediation, removal, treatment and disposal of any such Materials of Environmental
Concern, and (D) use their best efforts to ensure that no Environmental Affiliate takes any action or violates any Environmental
Law that could reasonably be expected to result in an Environmental Claim.

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		(ii)	The Borrowers shall not use or allow the Project to generate, manufacture, refine, produce, treat, store, handle, dispose of,
transfer, process or transport Materials of Environmental Concern other than in compliance in all material respects with Environmental
Laws.

(c)               
Operations and Maintenance; Operating Status. Each Borrower owning a Plant shall own, operate and maintain (or cause
to be operated and maintained) such Plant in all material respects in accordance with (A) the terms and provisions of the Transaction
Documents except as a result of the Cold Shutdown of the Madera Plant, (B) all applicable Governmental Approvals and Laws and (C)
Prudent Ethanol Operating Practice. Pacific Holding shall conduct its business in all material respects in accordance with all
applicable Governmental Approvals and Laws.

(d)              
Maintenance of Properties.

		(i)	Each Borrower shall keep, or cause to be kept, in good working order and condition, ordinary wear and tear excepted, all of
its material properties and equipment that are necessary or useful in the proper conduct of its business.

		(ii)	The Borrowers shall not permit any Plant or any material portion thereof to be removed, demolished or materially altered, unless
such material portion that has been removed, demolished or materially altered has been replaced or repaired as permitted under
this Agreement.

		(iii)	Each Borrower shall do or cause to be done all things necessary to preserve and keep in full force and effect (A) its limited
liability company existence and (B) its material patents, trademarks, trade names, copyrights, franchises and similar rights.

(e)               
Payment of Obligations. Each Borrower shall pay and discharge as the same shall become due and payable (i) all tax
liabilities, assessments and governmental charges or levies upon it or its properties or assets, (A) unless the same are subject
to a Contest or (B) other than the nonpayment of immaterial Taxes in an aggregate amount not in excess of twenty-five thousand
Dollars ($25,000) at any one time outstanding (taking into account any interest and penalties that could accrue or be applicable
to such past-due Taxes), and provided that such Taxes are no more than forty-five (45) days past due, (ii) all of its obligations
and liabilities under its Contractual Obligations (other than any such failure that could not reasonably be expected to have a
Material Adverse Effect and that would not otherwise result in an Event of Default) and (iii) all lawful claims that, if unpaid,
would by law become a Lien upon its properties (other than Permitted Liens), unless the same are subject to a Contest.

(f)               
Governmental Approvals. Pacific Holding and each other Borrower shall maintain in full force and effect, in the name
of the relevant Borrower, all Necessary Project Approvals (other than any such failure to maintain or obtain that could not reasonably
be expected to have a Material Adverse Effect on the relevant Borrower or Plant).

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(g)              
Use of Proceeds and Cash Flow.

		(i)	All proceeds of the Loans shall be used solely to fund the amounts set forth in the Budget and, in each case only to the extent
specified in the Budget (subject to the Permitted Variance), (a) operating expenses, limited capital expenditures and other amounts
for general and ordinary course purposes of the Borrowers, (b) current interest and fees payable pursuant to the Financing Documents
and (c) such other administrative payments, including the cumulative budgeted professional fees, as may be authorized and approved
by the Required Lenders.

		(ii)	The Borrowers shall cause all Cash Flow, Insurance Proceeds and Condemnation Proceeds to be applied in accordance with Article VIII
(Project Accounts).

(h)              
Insurance. Without cost to any Senior Secured Party, the applicable Borrower shall at all times obtain and maintain,
or cause to be obtained and maintained, the types and amounts of insurance listed and described on Schedule 7.01(h), in
accordance with the terms and provisions set forth therein for each Plant and the applicable Borrower, and shall obtain and maintain
in all material respects such other insurance as may be required pursuant to the terms of any Transaction Document. In the event
the Borrowers fail to take out or maintain the full insurance coverage required by this Section 7.01(h), the Administrative
Agent may (but shall not be obligated to) take out the required policies of insurance and pay the premiums on the same. All amounts
so advanced by the Administrative Agent shall become an Obligation and the Borrowers shall forthwith pay such amounts to the Administrative
Agent, together with interest from the date of payment by the Administrative Agent at the Default Rate.

(i)                
Books and Records; Inspections. Each Borrower shall keep proper books of record and account in which complete, true
and accurate entries in conformity with GAAP and all requirements of Law shall be made of all financial transactions and matters
involving the assets and business of such Borrower, and shall maintain such books of record and account in material conformity
with applicable requirements of any Governmental Authority having regulatory jurisdiction over such Borrower. Each Borrower shall
keep books and records separate from the books and records of any other Person (including any Affiliates of the Borrowers) that
accurately reflect all of its business affairs, transactions and the documents and other instruments that underlie or authorize
all of its limited liability company actions. Each Borrower shall permit officers and designated representatives of the Administrative
Agent or any Consultant to visit and inspect any of the properties of such Borrower (including the respective Plant), to examine
its limited liability company, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss
its affairs, finances and accounts with its members, managers, directors, officers and independent public accountants, all at the
expense of the Borrowers and at such reasonable times during normal business hours and as often as may be reasonably desired, upon
reasonable advance notice to such Borrower; provided that if a Default or Event of Default has occurred and is continuing, any
Agent, or Consultant (or, in the case of any Event of Default, any Lender) (or any of their respective officers or designated representatives)
may do any of the foregoing at the expense of the Borrowers at any time during normal business hours and without advance notice.

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(j)                
Maintenance of Existence. Each Borrower will continue to preserve, renew and keep in full force and effect its entity
status in the jurisdiction of its formation and take all actions to maintain its rights, privileges and franchises necessary or
desirable in the normal course of its business.

(k)              
Budgets.

		(i)	The Borrowers, not later than seven (7) days before the date that is the first day of the Fiscal Quarter commencing January
1, 2013 and each date falling every ninety (90) days thereafter (each such date, a “Period Start Date”), shall
adopt a budget containing, among other things, rolling cash flow forecast, setting forth in reasonable detail the projected cash
flow for each Plant and on an aggregate basis for the Project for the period starting on the then current Period Start Date and
ending on the earlier of (A) thirteen (13) weeks after the then current Period Start Date and (B) the Maturity Date, and provide
a copy of such forecast at such time to the Administrative Agent. Each such forecast shall become effective upon approval of the
Required Lenders (acting in consultation with the Financial Advisor, if any) (each such approved forecast, and the Initial Budget,
a “Budget”).

		(ii)	Each Budget delivered to the Administrative Agent pursuant to this Section 7.01(k) shall be accompanied by a memorandum
or worksheet detailing all changes in material assumptions used in the preparation of such Budget, shall contain a line item for
each expense category reasonably requested by the Required Lenders and shall specify for each Fiscal Quarter and for each such
expense category the amount budgeted for such category for such Fiscal Quarter.

		(iii)	Subject to Section 7.02(w), the Borrowers shall comply with the Budget subject to the Permitted Variance.

		(iv)	No later than forty-five (45) days in advance of the beginning of each calendar year, the Borrowers shall prepare a document
substantially in the form of the Initial Annual Forecast setting forth in reasonable detail the projected requirements for Operation
and Maintenance Expenses and Maintenance Capital Expenses for such calendar year on a monthly basis for each Plant and provide
a copy of such document to the Administrative Agent.

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(l)                
Project Documents. Each Borrower shall use its reasonable best efforts to preserve, protect and defend its rights
under each Project Document to which it is a party except where the failure to do so could not reasonably be expected to have a
Material Adverse Effect. Each Borrower shall use its reasonable best efforts to exercise all material rights, discretion and remedies
under each Project Document in accordance with its terms and in a manner consistent with and subject to such Borrower’s obligations
under the Financing Documents.

(m)            
Preservation of Title; Acquisition of Additional Property.

		(i)	The Borrowers shall preserve and maintain (A) good, marketable and insurable fee interest in each Site (excluding the Leased
Premises) and valid easement interest to its easement interest in each Site (excluding the Leased Premises), (B) a good, legal
and valid leasehold interest in each Leased Premises, and (C) good, legal and valid title to all of its other respective material
properties and assets, in each case free and clear of all Liens other than Permitted Liens.

		(ii)	No Borrower shall acquire or commence to lease any real property interests without the prior written consent of the Required
Lenders.

(n)              
Maintenance of Liens; Creation of Liens.

		(i)	The Borrowers shall take or cause to be taken all action necessary or desirable to maintain and preserve the Lien of the Security
Documents and the first ranking priority thereof, in each case in accordance with the Intercreditor Agreement.

		(ii)	The Borrowers shall take all actions required to cause each Additional Project Document to be or become subject to the Lien
of the Security Documents (whether by amendment to any Security Agreement or otherwise).

		(iii)	Simultaneously with the making of any investment in Cash Equivalents, each Borrower shall take or cause to be taken all actions
to require such Cash Equivalent in the Project Accounts or any Local Account with respect to which a Blocked Account Agreement
has been entered into to be or become subject to a first priority perfected Lien in favor of the Senior Secured Parties, in each
case in accordance with the Intercreditor Agreement.

(o)              
Certificate of Formation. Each Borrower shall observe in all material respects all of the separateness and other
provisions and procedures of its certificate of formation and Borrower LLC Agreement.

(p)              
Separateness. Each Borrower shall comply at all times with the separateness provisions set forth on Schedule 5.23.

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(q)              
Further Assurances. Upon written request of the Administrative Agent, the Borrowers shall promptly perform or cause
to be performed any and all acts and execute or cause to be executed any and all documents (including UCC financing statements
and UCC continuation statements):

		(i)	that are necessary or advisable for compliance with Section 7.01(n)(i) (Affirmative Covenants – Maintenance
of Liens; Creation of Liens);

		(ii)	for the purposes of ensuring the validity and legality of this Agreement or any other Financing Document and the rights of
the Lenders and the Agents hereunder or thereunder; and

		(iii)	for the purposes of facilitating the proper exercise of rights and powers granted to the Lenders or the Agents under this Agreement
or any other Financing Document.

(r)                
First Priority Ranking. The Borrowers shall cause their payment obligations with respect to the Loans to constitute
direct senior secured obligations of each Borrower and to rank no less than pari passu in priority of payment, in right
of security and in all other respects to all other Indebtedness (other than as contemplated by Section 8.03(b) (Revenue
Account) with respect to payment priorities) of the Borrowers, in each case subject to the Intercreditor Agreement.

(s)               
Quarterly Meetings. At least once per calendar quarter, upon request of the Required Lenders, at mutually acceptable
times (and with telephonic conferences being acceptable), the Borrowers’ Agent shall, and shall procure that representatives
of the Borrower’s professionals (including any counsel and financial advisors) as may be requested by the Required Lenders,
meet together with the Lenders to update the Lenders on the status of the Borrowers and to discuss any other issues in connection
therewith as may be requested by the Required Lenders.

(t)                
Post Closing Obligations. Borrowers shall, within thirty (30) days after the Closing Date, deliver to the Administrative
Agent (x) a Consent, in form and substance reasonably satisfactory to the Lenders, with respect to each Project Document identified
on Part B of Schedule 6.01(a)(ix), (y) fully executed estoppel certificate substantially in the form attached hereto as
Exhibits 7.01(t)A and B, respectively and (z) a certificate of the insurance broker of the Borrowers certifying that
the insurance requirements set forth on Schedule 7.01(h) with respect to the Borrowers and the Plants have been satisfied,
in the form of Exhibit 6.01(k).

Section
7.02 Negative Covenants. Each Borrower agrees with each Agent and each Lender that, until the Discharge Date, each
of the Borrowers will perform the obligations set forth in this Section 7.02 applicable to it.

(a)               
Restrictions on Indebtedness of the Borrowers. The Borrowers will not create, incur, assume or suffer to exist any
Indebtedness except:

		(i)	the Obligations;

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		(ii)	to the extent constituting Indebtedness, contingent obligations under or in respect of performance bonds, bid bonds, appeal
bonds, indemnification obligations, obligations to pay insurance premiums, take or pay obligations and similar obligations in each
case incurred in the ordinary course of business and otherwise permitted under this Agreement and not in connection with Indebtedness
for borrowed money, with respect to bonds, (a) bonds existing on the Closing Date and set forth on Schedule 7.02(a) and
replacements or extensions thereof that do not increase the face amount thereof (except to the extent a bond in the amount of such
increase would be permitted pursuant to the following clause (b), and (b) other bonds in an aggregate amount not to exceed two
hundred thousand Dollars ($200,000) at any one time outstanding;

		(iii)	to the extent constituting Indebtedness, Indebtedness arising from the honoring by a bank or other financial institution of
a check, draft or similar instrument drawn against insufficient funds in the ordinary course of business or other cash management
services in the ordinary course of business; provided that such Indebtedness is extinguished within ten (10) Business Days of its
incurrence and the aggregate amount of all such Indebtedness does not exceed, at any time, one hundred thousand Dollars ($100,000);

		(iv)	Capitalized Lease Liabilities with payments in any Fiscal Year, taken in the aggregate for the Project, in an amount not to
exceed two million Dollars ($2,000,000);

		(v)	Permitted Commodity Hedges;

		(vi)	Indebtedness (which may include Capitalized Lease Liabilities without reduction of the basket in the foregoing clause (a)(iv))
incurred at the time of such purchase or lease to finance the purchase or lease of enhancements to the Borrowers’ production
facilities consisting of bolt-on product yield enhancement equipment or processing and separation equipment for corn oil and corn
syrup in an aggregate principal amount not to exceed fourteen million Dollars ($14,000,000); and

		(vii)	Indebtedness under the Existing Financing Documents.

(b)              
Liens. No Borrower shall create, incur, assume or suffer to exist any Lien upon any of its property, revenues or
assets (including its Equity Interests), whether now owned or hereafter acquired, except:

		(i)	Liens in favor, or for the benefit, of the Collateral Agent pursuant to the Security Documents;

    	43

    	 

    
	

		(ii)	Liens for taxes, assessments and other governmental charges that are not yet due or the payment of which is the subject of
a Contest;

		(iii)	Liens of carriers, warehousemen, mechanics and materialmen incurred in the ordinary course of business for sums not yet due
or the payment of which is the subject of a Contest;

		(iv)	minor defects or irregularities in title and similar matters if the same do not materially detract from the operation or use
of such property in the ordinary conduct of the business of the applicable Borrower, including any such exceptions and encumbrances
which are approved by the Administrative Agent;

		(v)	cash collateral for bonds permitted under Section 7.02(a)(ii) (Negative Covenants – Restrictions on Indebtedness
of the Borrowers) or otherwise; provided that such cash collateral does not exceed an amount equal to the sum of (A) the
amount of cash collateral for bonds on deposit on the Closing Date and set forth on Schedule 7.02(a) and (B) two hundred
thousand Dollars ($200,000);

		(vi)	Liens arising with respect to a Local Account for which a Blocked Account Agreement has been entered into or otherwise arising
by virtue of any statutory or common law provisions relating to banker’s liens, rights of set-off or similar rights; provided
that such Liens either (A) are subordinated to the Liens of the Senior Secured Parties or (B) with respect only to Local Accounts
for which a Blocked Account Agreement has been entered into, are in an aggregate total amount not in excess of one hundred thousand
Dollars ($100,000);

		(vii)	easements granted by any Borrower to any utility serving such Borrower’s Plant as required for the operation of such
Plant; provided, that in each such case:

		(1)	such easement will not adversely affect the costs under any Budget;

		(2)	such easement will not adversely affect the operations of any Plant; and

		(3)	such easement has been approved by the Administrative Agent;

		(viii)	Liens in respect of Capitalized Lease Liabilities with respect to office equipment permitted by Section 7.02(a)(iv)(Negative
Covenants-Restrictions on Indebtedness);

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		(ix)	purported Liens evidenced by the filing of precautionary UCC financing statements relating solely to operating leases of personal
property entered into in the ordinary course of business and otherwise permitted under this Agreement;

		(x)	cash collateral for Permitted Commodity Hedges; provided that such cash collateral does not exceed the aggregate limits set
forth in the Commodity Hedging Policy;

		(xi)	purchase money security interests in equipment acquired by any Borrower using Indebtedness permitted by Section 7.02(a)(vi)
(Negative Covenants-Restrictions on Indebtedness); provided, that such security interests do not apply to any other
property or assets of any Loan Party or any Subsidiary besides those acquired or leased pursuant to such transaction (it being
agreed that transactions with the same vendor may be cross-collateralized); and

		(xii)	Liens in favor, or for the benefit, of the Existing Collateral Agent pursuant to the Existing Security Documents.

(c)               
Permitted Investments. The Borrowers shall not make any investments, loans or advances (whether by purchase of stocks,
bonds, notes or other securities, loans, extensions of credit, advances or otherwise) except for investments in (i) Cash Equivalents,
(ii) investments received in connection with the bankruptcy of suppliers or customers of the Borrowers (provided that such investments
are subject to a first priority perfected Lien in favor of the Collateral Agent) and (iii) in the case of Pacific Holding, investments
in the other Borrowers. The Borrowers shall select Cash Equivalents having such maturities as shall cause the Project Accounts
to have a cash balance as of any day sufficient to cover the transfers made from the Project Accounts on such day in accordance
with this Agreement, the other Financing Documents, the Project Documents and any Additional Project Documents.

(d)              
Change in Business. No Borrower shall (i) enter into or engage in any business other than the ownership, operation
(including the Cold Shutdown of the Madera Plant), maintenance, use and financing of the Plants or the Project as contemplated
by the Transaction Documents or (ii) change in any material respect the scope of any Plant or the Project from that which exists
as of the Closing Date.

(e)               
Equity Issuances. No Borrower shall issue any Equity Interests unless such Equity Interests are immediately pledged
to the Collateral Agent (for the benefit of the Senior Secured Parties) on a first priority perfected basis pursuant to the Pledge
Agreements or, if necessary, a supplement thereto or a pledge and security agreement in substantially the form of the Pledge Agreements.

    	45

    	 

    

(f)               
Asset Dispositions. No Borrower shall sell, lease, assign, transfer or otherwise dispose of assets (other than Products),
whether now owned or hereafter acquired, except:

		(i)	disposal of assets that are promptly replaced in accordance with the then-current Budget;

		(ii)	to the extent that such assets are uneconomical, obsolete or no longer useful or no longer usable in connection with the operation
or maintenance of the Project;

		(iii)	disposal of assets with a fair market value of, or, if greater, at a disposal price of, less than fifty thousand Dollars ($50,000)
in the aggregate during any Fiscal Year; provided, that such disposal does not, and would not reasonably be expected to,
adversely affect the operation or maintenance of any Plant;

		(iv)	transfers of assets among the Plants; provided, that (A) the aggregate total fair market value of all such transferred assets
does not exceed five hundred thousand Dollars ($500,000) in any Fiscal Year, and (B) each such transfer does not, and would not
reasonably be expected to, adversely affect the operations of the Plant from which such assets are transferred; or

		(v)	as permitted by Section 7.02(c) (Negative Covenants-Permitted Investments).

(g)              
Consolidation, Merger. No Borrower will (i) directly or indirectly liquidate, wind up, terminate, reorganize or dissolve
itself (or suffer any liquidation, winding up, termination, reorganization or dissolution) or otherwise wind up; or (ii) acquire
(in one transaction or a series of related transactions) all or any substantial part of the assets, property or business of, or
any assets that constitute a division or operating unit of, the business of any Person or otherwise merge or consolidate with or
into any other Person.

(h)              
Transactions with Affiliates. No Borrower shall enter into or cause, suffer or permit to exist any arrangement or
contract with any of its Affiliates or any other Person that owns, directly or indirectly, any Equity Interest in any Borrower
unless such arrangement or contract (i) is fair and reasonable to such Borrower and (ii) is an arrangement or contract that is
on arm’s-length basis and contains terms no less favorable than those that would be entered into by a prudent Person in the
position of such Borrower with a Person that is not one of its Affiliates.

(i)                
Accounts. The Borrowers shall not maintain, establish or use any deposit account, securities account (as each such
term is defined in the UCC) or other banking account other than the Project Accounts and any Local Account identified in writing
to the Administrative Agent, each of which shall be subject to a Blocked Account Agreement. The Borrowers shall not change the
name or account number of any of the Project Accounts or Local Accounts without the prior written consent of the Administrative
Agent.

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(j)                
Subsidiaries. Pacific Holding shall not create or acquire any Subsidiary other than Madera, Boardman, Stockton or
Burley nor enter into any partnership or joint venture. Each of Madera, Boardman, Stockton and Burley shall not create or acquire
any Subsidiary or enter into any partnership or joint venture.

(k)              
ERISA. No Borrower will engage in any prohibited transactions under Section 406 of ERISA or under Section 4975 of
the Code. No Borrower will incur any obligation or liability in respect of any Plan, Multiemployer Plan or employee welfare benefit
plan providing post-retirement welfare benefits (other than a plan providing continue coverage under Part 6 of Title I of ERISA)
in each such case without the prior written consent of the Administrative Agent (unless the aggregate total obligations or liabilities
of the Borrowers that could reasonably be expected to arise, due to no fault of the Borrowers, in connection therewith would not
exceed five hundred thousand Dollars ($500,000)).

(l)                
Taxes. No Borrower shall make any election to be treated as an association taxable as a corporation for federal,
state or local tax purposes.

(m)            
Project Documents. Other than changes approved in the Existing Pledgor Consent and changes that individually and
in the aggregate could not reasonably be expected to have a Material Adverse Effect, no Borrower shall direct or consent or agree
to (i) any amendment, modification, supplement, waiver to, or extension of the term of, or (ii) any termination, repudiation, cancellation
or rejection of, any Project Document to which it is a party and that is contemplated by the then-current Budget without the prior
written consent of the Required Lenders. Except for collateral assignments to the Collateral Agent and/or to the Existing Collateral
Agent pursuant to the Existing Security Documents, no Borrower shall assign any of its rights under any Project Document to which
it is a party to any Person, or consent to the assignment of any obligations under any such Project Document by any other party
thereto.

(n)              
Additional Project Documents; Existing Financing Documents. None of Pacific Holding or any other Borrower shall (i)
enter into any Additional Project Document that is not contemplated by the then-current Budget except with the prior written approval
of the Administrative Agent or (ii) except as permitted under the Intercreditor Agreement, amend any Existing Financing Document.

(o)              
Suspension or Abandonment. No Borrower owning a Plant shall (i) permit or suffer to exist an Event of Abandonment
relating to such Plant or (ii) order or consent to any suspension of work in excess of sixty (60) days under any Project Document
relating to such Plant (provided that Cold Shutdown shall not constitute a suspension of work), in each such case without the prior
written approval of the Required Lenders.

(p)              
Use of Proceeds; Margin Regulations. No Borrower shall use any proceeds of any Loan other than in accordance with
the provisions of Article II (Commitments and Funding) and Section 7.01(g) (Affirmative Covenants – Use
of Proceeds and Cash Flow). No Borrower shall use any part of the proceeds of any Loan to purchase or carry any Margin
Stock (as defined in Regulation U) or to extend credit to others for the purpose of purchasing or carrying any Margin Stock. No
Borrower shall use the proceeds of any Loan in a manner that could violate or be inconsistent with the provisions of Regulations
T, U or X. Notwithstanding anything to the contrary set forth in this Agreement, following the occurrence of a Stockton Revenue
Event, no proceeds of any Loan shall be used to fund operations at the Stockton Plant if the Required Lenders affirmatively vote
to terminate such use.

    	47

    	 

    

(q)              
Environmental Matters. Except to the extent not reasonably expected to result in an Environmental Claim and in compliance
with all applicable Laws, the Borrowers shall not permit (i) any underground storage tanks to be located on any property owned
or leased by any Borrower, (ii) any asbestos to be contained in or form part of any building, building component, structure or
office space owned by any Borrower, (iii) any polychlorinated biphenyls (PCBs) to be used or stored at any property owned by any
Borrower, (iv) any other Materials of Environmental Concern to be used, stored or otherwise be present at any property owned by
any Borrower, other than Materials of Environmental Concern necessary for the operation of the Project and used in accordance with
Prudent Ethanol Operating Practice or (v) any other Materials of Environmental Concern to be used, stored or otherwise be present
at any property leased by any Borrower.

(r)                
Restricted Payments. The Borrowers shall not make any Restricted Payments.

(s)               
Budget. Except as set forth in this Agreement, no Borrower shall make any change in the Budget.

(t)                
Commodity Hedging Arrangements. The Borrowers shall not enter into any Commodity Hedging Arrangements (other than
any Permitted Commodity Hedge) without the prior written consent of the Required Lenders.

(u)              
Interest Rate Protection Agreements. The Borrowers shall not enter into any Interest Rate Protection Agreement without
the prior written consent of the Required Lenders. The Borrower shall not enter into any Interest Rate Protection Agreement in
respect of the Loans.

(v)              
Accounting Changes. No Borrower shall make any change in (i) its accounting policies or reporting practices, except
as required by GAAP or as otherwise notified to the Administrative Agent in writing (provided that the Borrowers shall provide
an historical reconciliation for the prior audited period addressing any such change in accounting practices), or (ii) its Fiscal
Year without the prior written consent of the Administrative Agent.

(w)            
Financial Covenants.

		 	(i)           
The Borrowers shall not permit amounts disbursed pursuant to the category in the Budget entitled “Asset Management
Agreement” (excluding the line item entitled “Asset Management Fee”) in any Budget Period to exceed the amounts
set forth in the line item entitled “Total Asset Management Agreement” (excluding “Asset Management Fee”)
for such Budget Period in the “Initial Budget” as defined in the Original Credit Agreement by more than ten percent
(10%).

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		 	(ii)           
The Borrowers shall not permit amounts disbursed pursuant to the category in the Budget entitled “Operating Disbursements”
(reduced by the amount of any portion of such disbursements made in respect of purchases of corn or natural gas) to exceed the
amount set forth in the line item entitled “Total Operating Disbursements” (reduced by the amount of any portion of
such line item budgeted for purchases of corn or natural gas) for such Budget Period in the then applicable Budget by more than
ten percent (10%).

(x)              
Site Specific Bond. The Borrowers shall not permit the face amount of the Site Specific Bond to exceed $1,000,000.
Upon any release of cash collateral for the Site Specific Bond held pursuant to the Cash Collateral Agreement, such released amounts
shall be transferred directly to the Administrative Agent in accordance with the Cash Collateral Agreement as in effect on the
date hereof and applied as a repayment of Loans in accordance with the terms hereof, subject to the Intercreditor Agreement.

(y)              
Existing Transaction Documents. No Borrower shall enter into any amendment of any Existing Transaction Document except
as permitted in accordance with the terms of the Intercreditor Agreement or otherwise with the written consent of the Required
Lenders.

Section
7.03 Reporting Requirements. The Borrowers will furnish to the Administrative Agent, who shall distribute copies
of the following to each Lender:

(a)               
as soon as available and in any event within forty-five (45) days after the end of the first three Fiscal Quarters of each
Fiscal Year, consolidated and consolidating balance sheets of Pacific Holding and consolidated and consolidating statements of
income and cash flows of Pacific Holding for such Fiscal Quarter and for the period commencing at the end of the previous Fiscal
Year and ending with the end of such Fiscal Quarter;

(b)              
as soon as available and in any event within one hundred (100) days after the end of each Fiscal Year, a copy of the annual
audit report for such Fiscal Year for Pacific Holding including therein balance sheets as of the end of such Fiscal Year and statements
of income and cash flows of Pacific Holding (on a consolidated and consolidating basis) for such Fiscal Year, and accompanied by
an unqualified opinion of the Auditors stating that all such financial statements present fairly in all material respects the financial
position of each Borrower (as applicable) for the periods indicated in conformity with GAAP applied on a basis consistent with
prior periods (except as otherwise contemplated by Section 7.02(v) (Negative Covenants – Accounting Changes)),
which report and opinion shall not be subject to any “going concern” or like qualification or exception or any qualification
or exception as to the scope of such audit;

(c)               
concurrently with the delivery of the financial statements referred to in Sections 7.03(a) and (b) a certificate,
executed by an Authorized Officer of the applicable Loan Party stating that:

    	49

    	 

    

		(i)	such financial statements fairly present in all material respects the financial condition and results of operations of such
Person on the dates and for the periods indicated in accordance with GAAP subject, in the case of interim financial statements,
to the absence of notes and normally recurring year-end adjustments;

		(ii)	such Authorized Officer has reviewed the terms of the Financing Documents and has made, or caused to be made under his or her
supervision, a review in reasonable detail of the business and financial condition of such Person during the accounting period
covered by such financial statements; and

		(iii)	as a result of such review such Authorized Officer has concluded that no Default or Event of Default has occurred during the
period covered by such financial statements through and including the date of such certificate or, if any Default or Event of Default
has occurred, specifying the nature and extent thereof and, if continuing, the action that the Borrowers have taken and propose
to take in respect thereof;

(d)              
promptly upon receipt, copies of any detailed audit reports, management letters or recommendations submitted to any Borrower
(or the audit or finance committee of any Borrower) by the Auditors in connection with the accounts or books of any Borrower, or
any audit of any Borrower;

(e)               
as soon as possible and in any event within five (5) days after the occurrence of any Default or Event of Default, including
pursuant to Section 9.01(e) with respect to Indebtedness under the Amended Credit Agreement, a statement of an Authorized
Officer of the Borrowers’ Agent setting forth details of such Default or Event of Default and the action that the Borrowers
have taken and propose to take with respect thereto;

(f)               
within five (5) days after any Borrower obtains knowledge thereof a statement of an Authorized Officer of the Borrowers’
Agent setting forth details of:

		(i)	any litigation or governmental proceeding pending or threatened in writing against any Borrower or the Pledgor;

		(ii)	any litigation or governmental proceeding pending or threatened in writing against any Project Party that has or could reasonably
be expected to have a Material Adverse Effect;

		(iii)	any other event, act or condition that has or could reasonably be expected to have a Material Adverse Effect; or

		(iv)	notification of any event of force majeure or similar event under a Project Document which is expected to continue for more
than five (5) days or, to the knowledge of any Borrower, result in increased costs of at least one hundred thousand Dollars ($100,000);

    	50

    	 

    
	

(g)              
promptly after delivery or receipt thereof, copies of all material notices or documents given or received by any Borrower,
pursuant to any of the Project Documents including:

		(i)	any written notice alleging any breach or default thereunder; and

		(ii)	any written notice regarding, or request for consent to, any assignment, termination, modification, waiver or variation thereof;

(h)              
as soon as possible and in any event within five (5) Business Days after any Borrower knows, or has reason to know, that
any of the events described below have occurred, a duly executed certificate of an Authorized Officer of the Borrowers’ Agent
setting forth the details of each such event and the action that the Borrowers propose to take with respect thereto, together with
a copy of any notice or filing from the PBGC, Internal Revenue Service, Department of Labor or that may be required by the PBGC
or other U.S. Governmental Authority with respect to each such event:

		(i)	any Termination Event with respect to an ERISA Plan or a Multiemployer Plan has occurred or will occur that could reasonably
be expected to result in any material liability to any Borrower;

		(ii)	any condition exists with respect to a Plan that presents a material risk of termination of a Plan (other than a standard termination
under Section 4041(b) of ERISA) or imposition of an excise tax or other material liability on any Borrower;

		(iii)	an application has been filed for a waiver of the minimum funding standard under Section 412 of the Code or Section 302 of
ERISA under any Plan;

		(iv)	any Borrower or any Plan fiduciary has engaged in a “prohibited transaction,” as defined in Section 4975 of the
Code or as described in Section 406 of ERISA, that is not exempt under Section 4975 of the Code and Section 408 of ERISA that could
reasonably be expected to result in material liability to any Borrower;

		(v)	there exists any Unfunded Benefit Liabilities under any ERISA Plan;

		(vi)	any condition exists with respect to a Multiemployer Plan that presents a risk of a partial or complete withdrawal (as described
in Section 4203 or 4205 of ERISA) from a Multiemployer Plan that could reasonably be expected to result in any liability to any
Borrower;

    	51

    	 

    
	

		(vii)	a “default” (as defined in Section 4219(c)(5) of ERISA) occurs with respect to payments to a Multiemployer Plan
and such default could reasonably be expected to result in any liability to any Borrower;

		(viii)	a Multiemployer Plan is in “reorganization” (as defined in Section 418 of the Code or Section 4241 of ERISA) or
is “insolvent” (as defined in Section 4245 of ERISA);

		(ix)	any Borrower and/or any ERISA Affiliate has incurred any potential withdrawal liability (as defined in accordance with Title
IV of ERISA); or

		(x)	there is an action brought against any Borrower or any ERISA Affiliate under Section 502 of ERISA with respect to its failure
to comply with Section 515 of ERISA;

(i)                
as soon as possible and in any event within five (5) Business Days after the receipt by any Borrower of a demand letter
from the PBGC notifying such Borrower of its final decision finding liability and the date by which such liability must be paid,
a copy of such letter, together with a duly executed certificate of the president or chief financial officer of such Borrower setting
forth the action that such Borrower proposes to take with respect thereto;

(j)                
promptly and in any event within five (5) Business Days after the existence of any of the following conditions, a duly executed
certificate of an Authorized Officer of the Borrowers’ Agent specifying in detail the nature of such condition and, if applicable,
the Borrowers’ proposed response thereto:

		(i)	receipt by any Borrower of any written communication from a Governmental Authority or any written communication from any other
Person or other source of written information, including (to the extent not privileged) reports prepared by any Borrower, that
alleges or indicates that any Borrower or an Environmental Affiliate is not in compliance in all material respects with applicable
Environmental Laws or Environmental Approvals;

		(ii)	any Borrower obtains knowledge that there exists any Environmental Claim pending or threatened in writing against any Borrower
or an Environmental Affiliate;

		(iii)	any Borrower obtains knowledge of any release, threatened release, emission, discharge or disposal of any Material of Environmental
Concern or obtains knowledge of any material non-compliance with any Environmental Law that, in either such case, could reasonably
be expected to form the basis of an Environmental Claim against any Borrower or any Environmental Affiliate; or

    	52

    	 

    
	

		(iv)	any Removal, Remedial or Response action taken by any Borrower or any other person in response to any Material of Environmental
Concern in, at, on or under, a part of or about the Borrowers’ properties or any other property or any notice, claim or other
information that any of the Borrowers might be subject to an Environmental Claim;

(k)              
the Borrowers will maintain and make available for inspection by the Administrative Agent, the Consultants and, if an Event
of Default has occurred and is continuing, the Lenders, and each of their respective agents and employees, on reasonable notice
during regular business hours, accurate and complete records of all non-privileged correspondence, investigations, studies, sampling
and testing conducted, and any and all remedial actions taken, by any Borrower or, to the best of any Borrower’s knowledge
and to the extent obtained by any Borrower, by any Governmental Authority or other Person in respect of Materials of Environmental
Concern that could reasonably be expected to form the basis of an Environmental Claim on or affecting any Plant or the Project;

(l)                
within twenty-five (25) days after the end of each calendar month, an Operating Statement certified as complete and correct
by an Authorized Officer of the Borrower Agent regarding the operation and performance of each Plant for such month. Such Operating
Statements shall contain (i) line items corresponding to the Budget showing in reasonable detail all actual expenses related to
the operation and maintenance of each Plant compared to the budgeted expenses for such period, (ii) information showing the amount
of ethanol and other Products produced by each Plant during such period and (iii) information showing (A) the amount of ethanol
sold by the Borrowers from each Plant pursuant to the Ethanol Offtake Agreements, (B) the amount of Distillers Grains sold by the
Borrowers from each Plant pursuant to the DG Offtake Agreements, and (C) the amount, if any, of other sales of ethanol and/or Distillers
Grains, together with an explanation of any such sale and identification of the purchaser, and (D) the amount, if any, of other
Products sold by the Borrowers from the Plants, together with an explanation of any such sale and identification of the purchaser;
and

(m)            
true, correct and complete copies of each Necessary Project Approval requested by the Administrative Agent;

(n)              
other information reasonably requested by the Administrative Agent or any Lender, through the Administrative Agent.

ARTICLE
VIII

PROJECT ACCOUNTS

Section
8.01 Existence of Project Accounts. As of the date hereof, the Accounts Bank confirms that each Project Account
is in existence with the Accounts Bank in accordance and in compliance with the terms of the Existing Credit Agreement.

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Section
8.02 Deposits into and Withdrawals from Project Accounts. (a) Amounts shall be deposited into and withdrawn from
the Project Accounts in strict accordance with this Article VIII, subject to the Intercreditor Agreement.

(b)              
The Accounts Bank will only be required to transfer funds hereunder on a “same day” basis if it has received
written notice of such proposed transfer, together with all certificates, notices, directions and other documents required under
this Agreement to be delivered to the Accounts Bank relating thereto, not later than 3:00 pm New York City time on the Business
Day of such transfer and, if such notice or any such related document is received by the Accounts Bank after such time, such transfer
will be undertaken prior to 12:00 noon New York City time on the next Business Day succeeding the date of receipt by Accounts Bank
of all such documentation.

(c)               
If any transfer, withdrawal, deposit, investment or payment of any funds by the Accounts Bank or any other action to be
taken by the Accounts Bank under this Agreement is to be made or taken on a day other than a Business Day, such transfer, withdrawal,
deposit, investment, payment or other action will be made or taken on the next succeeding Business Day.

(d)              
Any instruction, direction, notice, certificate, request or requisition given to the Accounts Bank by any Borrower with
respect to the transfer, withdrawal, deposit, investment or payment of any funds under this Agreement or with respect to any other
obligations to be performed by the Accounts Bank under this Agreement (i) must be in writing and signed by an Authorized Officer
of the Borrowers’ Agent, (ii) in referencing any of the Project Accounts, must refer to the specific Project Account name
and number, (iii) shall constitute a representation by the Borrowers that all conditions set forth in this Agreement for such withdrawal
have been satisfied, whether or not those conditions are explicitly stated to be so satisfied and (iv) shall be copied to the Administrative
Agent, the Existing Administrative Agent, the Collateral Agent and the Existing Collateral Agent. Notwithstanding anything contained
in this Agreement or any other Financing Document to the contrary, the Accounts Bank may rely and shall be protected in acting
or refraining from acting upon any instruction, direction, notice, certificate, request or requisition of Borrowers’ Agent,
the Administrative Agent or the Collateral Agent or, from and after the Discharge Date or if and when a payment to or on behalf
of the Existing Senior Secured Parties is permitted hereunder, subject to the Intercreditor Agreement, the Existing Administrative
Agent or the Existing Collateral Agent.

(e)               
None of the Project Accounts shall go into overdraft, and the Accounts Bank shall not comply with any request or direction
to the extent that it would cause any of the Project Accounts to do so.

(f)               
Each Borrower hereby acknowledges that it has irrevocably instructed each Project Party, and agrees that it shall so instruct
each future Project Party, to make all payments due and payable to any Borrower under any Project Document, directly to the Accounts
Bank for deposit in, or to be credited in the manner set forth in this Article VIII (and as specified herein, Article VIII
of the Amended Credit Agreement). Each Borrower further agrees that it shall irrevocably instruct each other Person from whom such
Borrower is entitled to receive Cash Flow, Insurance Proceeds and Condemnation Proceeds, to make all payments due and payable to
any Borrower from such Person directly to the Accounts Bank for deposit, and to be credited, in the manner set forth in this Article
VIII (and as specified herein, Article VIII of the Amended Credit Agreement).

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(g)              
The Accounts Bank shall not be charged with knowledge of any Notice of Suspension, Default or Event of Default hereunder
or under the Amended Credit Agreement unless the Accounts Bank has received such Notice of Suspension or other written notice of
such Default or Event of Default from the Administrative Agent or the Collateral Agent (in either case, at the direction of the
Required Lenders), the Existing Administrative Agent or Existing Collateral Agent (in either case at the direction of the Required
Existing Lenders) with respect to Defaults and Events of Default under the Amended Credit Agreement, or an Authorized Officer of
the Borrowers’ Agent or any Borrower.

(h)              
The Accounts Bank shall not be charged with the knowledge that any transfer or withdrawal from any Project Account would
result in the occurrence of a Default or Event of Default hereunder or under the Amended Credit Agreement, unless it has received
written notice thereof from the Administrative Agent, the Collateral Agent, the Existing Administrative Agent or Existing Collateral
Agent with respect to Defaults and Events of Default under the Amended Credit Agreement or an Authorized Officer of the Borrowers’
Agent or any Borrower.

(i)                
Notwithstanding anything contained in this Agreement or any other Financing Document to the contrary, the Accounts Bank
shall have no obligation to (i) make any payment, transfer or withdrawal from any Project Account until it has received written
direction to make such payment, transfer or withdrawal from (x) the Collateral Agent, the Administrative Agent, or the Required
Lenders, (y) from and after the Discharge Date or if and when a payment to or on behalf of the Existing Senior Secured Parties
is permitted by the Intercreditor Agreement, the Existing Administrative Agent, Existing Collateral Agent or the Required Existing
Lenders, or (z) if this Agreement explicitly provides that any such direction may be made by the Borrowers’ Agent, the Borrowers’
Agent or (ii) determine whether any payment, transfer or withdrawal from any Project Account made in accordance with any written
direction from the Collateral Agent, the Administrative Agent, the Required Lenders or the Borrowers’ Agent complies with
the terms of this Agreement. The Accounts Bank shall have no liability for, nor any responsibility or obligation to confirm, the
use or application by any Borrower, Borrowers’ Agent, Administrative Agent, Collateral Agent, the Required Lenders or any
other recipient of amounts withdrawn or transferred from any Project Account.

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Section
8.03 Revenue Account. Each Borrower and the Accounts Bank shall comply with the provisions governing deposits to
and withdrawals from the Revenue Account as set forth in Section 8.03 of the Amended Credit Agreement. On each Monthly Date, the
lesser of (x) one hundred percent (100%) of the cash remaining in the Revenue Account after the transfer required pursuant to
priority sixteenth of Section 8.03(b) of the Amended Credit Agreement and (y) the outstanding principal balance of the
Loans, as certified by the Borrowers in the applicable Revenue Account Withdrawal Certificate or otherwise instructed in writing
to the Accounts Bank by the Required Lenders, shall be transferred to the Administrative Agent for application as a prepayment
of the Loans in accordance with Section 3.08(a)(v) (Mandatory Prepayment).

Section
8.04 Operating Account. Each Borrower and the Accounts Bank
shall comply with the provisions governing deposits to and withdrawals from the Operating Account as set forth in Section 8.04
of the Amended Credit Agreement.

Section
8.05 Maintenance Capital Expense Account. Each Borrower and the Accounts Bank shall comply with the provisions governing
deposits to and withdrawals from the Maintenance Capital Expense Account as set forth in Section 8.05 of the Amended Credit Agreement.

Section
8.06 Debt Service Reserve Account. Each Borrower and the
Accounts Bank shall comply with the provisions governing deposits to and withdrawals from the Debt Service Reserve Account as
set forth in Section 8.06 of the Amended Credit Agreement. No transfer from the Debt Service Reserve Account pursuant to
Section 8.06(c) of the Amended Credit Agreement shall occur if the Required Lenders have given written notice to the Borrowers,
the Administrative Agent, the Existing Administrative Agent and the Accounts Bank of a dispute of the calculations set forth in
any Debt Service Reserve Release Certificate at least two (2) Business Days prior to the requested transfer date (which written
notice shall include a reasonably detailed description of the basis of such dispute), until such time as the Required Lenders
provide written notice to the Borrowers, the Administrative Agent, the Existing Administrative Agent and the Accounts Bank that
such dispute has been resolved.

Section
8.07 Insurance and Condemnation Proceeds Accounts. Each Borrower and the Accounts Bank shall comply with the provisions
governing deposits to and withdrawals from the Insurance and Condemnation Proceeds Accounts as set forth in Section 8.07 of the
Amended Credit Agreement. Prior to the Discharge Date, the Required Lenders shall have the sole and exclusive authority to approve
any alternative levels at which any applicable Plant will perform pursuant to the parenthetical in subclause (3) of Section 8.07(d)(i)(D)
of the Amended Credit Agreement. If (A) the Borrowers do not deliver the Restoration or Replacement Plan and the accompanying
deliveries referred to in Section 8.07(d)(i) of the Amended Credit Agreement within the sixty (60) day period referred
to therein or (B) after the completion of such Restoration or Replacement Plan, there are excess Insurance Proceeds or Condemnation
Proceeds, as the case may be, on deposit in or standing to the credit of the Insurance and Condemnation Proceeds Account, the
Accounts Bank shall on the next succeeding Monthly Date thereafter, upon the written instruction of the Borrowers’ Agent
or the Required Lenders or from and after the Discharge Date or if and when a payment to or on behalf of the Existing Senior Secured
Parties is permitted hereunder, subject to the Intercreditor Agreement, the Required Existing Lenders, transfer to the Administrative
Agent, for the account of the Lenders, an amount equal to such Insurance Proceeds or Condemnation Proceeds, as the case may be,
for mandatory prepayment of the Loans in accordance with Section 3.08 (Mandatory Prepayments). Any Insurance Proceeds
or Condemnation Proceeds deposited into any Insurance and Condemnation Proceeds Account (i) in amounts greater than two million
five hundred thousand Dollars ($2,500,000) arising from any one claim or any series of claims relating to the same occurrence
with respect to a Plant not in Cold Shutdown on the date of such occurrence or (ii) arising from any one claim or any series
of claims relating to the same occurrence with respect to a Plant in Cold Shutdown on the date of such occurrence shall, in each
case, be applied to prepay the Loans in accordance with Section 3.08 (Mandatory Prepayments).

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Section
8.08 Extraordinary Proceeds Account. Each Borrower and the
Accounts Bank shall comply with the provisions governing deposits to and withdrawals from the Extraordinary Proceeds Account as
set forth in Section 8.08 of the Amended Credit Agreement.  If at any time, proceeds of an asset disposal are deposited
into the Extraordinary Proceeds Account in an amount equal to or greater than one million Dollars ($1,000,000) (taken together
with any other proceeds of asset disposals deposited in the Extraordinary Proceeds Account during the then-current Fiscal Year),
then on the next Monthly Date, such amounts shall be transferred, upon the written instruction of the Borrowers’ Agent or
the Required Lenders, to the Administrative Agent for application as a prepayment of the Loans in accordance with Section 3.08
(Mandatory Prepayment). If at any time, Project Document Termination Payments are deposited into the Extraordinary
Proceeds Account in an amount equal to or greater than one million Dollars ($1,000,000) (taken together with any other Project
Document Termination Proceeds received during the then-current Fiscal Year), then on the next Monthly Date, such amounts shall
be transferred, upon the written instruction of the Borrowers’ Agent or the Required Lenders, to the Administrative Agent
for application as a prepayment of the Loans in accordance with Section 3.08 (Mandatory Prepayment).

Section
8.09 Representations, Warranties and Covenants of Accounts Bank. The Accounts Bank hereby represents and warrants,
covenants and agrees with the Lenders, the Agents and the Borrowers (and the other parties hereto agree, to the extent set forth
below) as follows:

(a)               
it will act as depositary agent, as “securities intermediary” (within the meaning of Section 8-102(a)(14) of
the UCC) with respect to each of the Project Accounts that is a “securities account” (within the meaning of Section
8-501 of the UCC) and the Financial Assets credited to such Project Accounts, and as “bank” (within the meaning of
9-102(a)(8) of the UCC) with respect to each of the Project Accounts as described in Section 8.11 (Project Accounts as Deposit
Accounts) and credit balances not constituting Financial Assets credited thereto and to accept all cash, payments, other
amounts and Cash Equivalents to be delivered to or held by the Accounts Bank pursuant to the terms of this Agreement. The Borrowers,
the Senior Secured Parties and the Accounts Bank agree that, for purposes of Articles 8 and 9 of the UCC, notwithstanding anything
to the contrary contained in any other agreement relating to the establishment and operation of the Project Accounts, the jurisdiction
of the Accounts Bank (in its capacity as the securities intermediary and bank) is the State of New York;

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(b)              
the Accounts Bank hereby agrees and confirms that it has established and maintains the Project Accounts as set forth and
defined in this Agreement (and the Amended Credit Agreement). The Accounts Bank agrees that (i) each such Project Account established
by the Accounts Bank has at all times been and will be maintained as a “securities account” (within the meaning of
Section 8501 of the UCC); (ii) the Borrowers’ Agent has at all times been and is the “entitlement holder” (within
the meaning of Section 8102(a)(7) of the UCC) in respect of the “financial assets” (within the meaning of Section 8102(a)(9)
of the UCC, the “Financial Assets”) credited to such Project Accounts that are “securities accounts”;
(iii) all Financial Assets in registered form or payable to or to the order of and credited to any such Project Account have at
all times been and are registered in the name of, payable to or to the order of, or specially endorsed to, the Accounts Bank or
in blank, or credited to another securities account maintained in the name of the Accounts Bank; and (iv) in no case will any Financial
Asset credited to any such Project Account be registered in the name of, payable to or to the order of, or endorsed to, the Borrowers’
Agent, Pacific Holding or any other Borrower except to the extent the foregoing have been subsequently endorsed by such Person
to the Accounts Bank or in blank. Each item of property (including a security, security entitlement, investment property, instrument
or obligation, share, participation, interest or other property whatsoever) credited to any Project Account in each case shall,
to the fullest extent permitted by law, be treated as a Financial Asset. Until the Discharge Date, with respect to the Collateral
Agent, and until the Existing Discharge Date, with respect to the Existing Collateral Agent, this Agreement is intended to provide
both the Collateral Agent and the Existing Collateral Agent with “control” (within the meaning of Section 8106(d)(2)
or Section 9-104(a) (as applicable) of the UCC) of the Project Accounts and each Borrower’s “security entitlements”
(within the meaning of Section 8102(a)(17) of the UCC) with respect to the Financial Assets credited to the Project Accounts. The
parties’ intention is that the security interest of the Existing Collateral Agent in the Project Accounts remain perfected
while allowing the Collateral Agent to perfect, as of the Closing Date, its security interest in the Project Accounts, and thereafter
that the security interest of both the Existing Collateral Agent and the Collateral Agent in the Project Accounts be and remain
perfected. The Borrowers’ Agent hereby irrevocably directs, and the Accounts Bank (in its capacity as securities intermediary)
hereby agrees, that the Accounts Bank will comply with all instructions and orders (including entitlement orders within the meaning
of Section 8-102(a)(8) of the UCC) regarding each Project Account and any Financial Asset therein originated by the Existing Collateral
Agent or the Collateral Agent, in each case without the further consent of the Borrowers’ Agent or any other Person; provided
that the Collateral Agent agrees that it will only originate and deliver to the Accounts Bank such instructions, orders and entitlement
orders as are permitted in accordance with the terms of this Agreement and the Intercreditor Agreement. In the case of a conflict
between any instruction or order originated by the Existing Collateral Agent or the Collateral Agent and any instruction or order
originated by the Borrowers’ Agent or any other Person other than a court of competent jurisdiction, the instruction or order
originated by the Existing Collateral Agent or the Collateral Agent, as applicable, shall prevail. In the case of a conflict between
any instruction or order originated by the Existing Collateral Agent and any instruction or order originated by the Collateral
Agent, the instruction or order originated by the Collateral Agent shall prevail until the Discharge Date (unless payment to or
on behalf of the Existing Senior Secured Parties is otherwise permitted by the Intercreditor Agreement) and thereafter the instruction
or order originated by the Existing Collateral Agent shall prevail. The Accounts Bank shall not change the name or account number
of any Project Account without the prior written consent of the Collateral Agent and at least five (5) Business Days’ prior
notice to the Borrowers’ Agent, and shall not change the entitlement holder;

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(c)               
the Accounts Bank shall promptly perform all duties imposed upon a securities intermediary and a bank under the UCC and
this Agreement. In this regard, (i) if the Accounts Bank has knowledge that an issuer of any Financial Asset is required to make
a payment or distribution in respect of such Financial Asset, the Accounts Bank shall have fulfilled its duty under applicable
Law to take action to obtain such payment or distribution if (A) it credits such payment or distribution to the Project Accounts
in accordance with this Agreement if such payment or distribution is made or (B) it notifies the Borrowers’ Agent, the Collateral
Agent, the Administrative Agent, the Existing Collateral Agent and the Existing Administrative Agent that such payment or distribution
has not been made, and (ii) if the Accounts Bank is required by applicable Law or this Agreement to credit to any Project Account
any Financial Asset purported to be transferred or credited to the Accounts Bank pursuant to applicable Law, the Accounts Bank
shall have fulfilled its duty to so credit any Project Account if it credits as a security entitlement to the applicable party
whatever rights the Accounts Bank purportedly has, in its capacity as Accounts Bank, in the Financial Asset transferred or credited
to the Accounts Bank, in its capacity as Accounts Bank, and the Accounts Bank shall have no duty to ensure that applicable Law
has been complied with in respect of the transfer of the Financial Asset or to create a security interest in or Lien on any Financial
Asset purported to be transferred or credited to the Accounts Bank and subsequently credited to any Project Account;

(d)              
all Financial Assets acquired by or delivered to the Accounts Bank shall be held by the Accounts Bank and credited by book
entry to the relevant Project Account or otherwise accepted by the Accounts Bank for credit to the relevant Project Account;

(e)               
each item of property (including any cash, security, general intangible, document, instrument or obligation, share, participation,
interest or other property whatsoever) deposited in or credited to any Project Account shall be treated as a Financial Asset for
the purposes of Section 8-102(a)(9)(iii) of the UCC. Notwithstanding any provision herein contained to the contrary, any property
contained in the Project Accounts that is not deemed to be a Financial Asset under applicable Law, to the extent permitted by applicable
Law, will be deemed to be deposited in a deposit account and subject to Section 8.11 (Project Accounts as Deposit Account);

(f)               
the Collateral Agent shall have control of the security entitlements carried in the Project Accounts and of the Financial
Assets carried in the Project Accounts, and each Borrower hereby disclaims any entitlement to claim control of such security entitlements;

(g)              
all property delivered to the Accounts Bank pursuant to this Agreement or the other Financing Documents will be promptly
deposited in or credited to a Project Account by an appropriate entry in its records in accordance with this Agreement;

(h)              
if any Person (other than the Existing Collateral Agent, on behalf and for the benefit of the Existing Senior Secured Parties
or the Collateral Agent, on behalf and for the benefit of the Senior Secured Parties) asserts any lien, encumbrance or adverse
claim (including any writ, garnishment, judgment, warrant of attachment, execution or similar process), against any Project Account
or in any Financial Asset or other property deposited therein or credited thereto of which the Accounts Bank has actual knowledge,
the Accounts Bank will promptly notify the Borrowers’ Agent, the Collateral Agent, the Administrative Agent, the Existing
Collateral Agent and the Existing Administrative Agent in writing thereof; and

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(i)                
the Accounts Bank has not entered into and will not enter into any agreement with respect to the Project Accounts or any
Financial Assets or other property deposited in or credited to any Project Account other than this Agreement, the Amended Credit
Agreement and its Fee Letters hereunder and thereunder. The Accounts Bank has not entered into and will not enter into any agreement
with any Borrower or any other Person purporting to limit or condition the obligation of the Accounts Bank to comply with entitlement
orders or any other order originated by the Existing Collateral Agent or the Collateral Agent in accordance with Sections 8.09(b)
(Representations, Warranties and Covenants of Accounts Bank) or Sections 8.11(b) or (c) (Project Accounts
as Deposit Account).

Section
8.10 Project Accounts. (a) The Accounts Property will not constitute repayment of the Obligations until so applied
as payments in accordance with the terms of this Agreement and the other Financing Documents.

(b)              
The Accounts Bank shall not have title to the funds on deposit in the Project Accounts, and shall credit the Project Accounts
with all receipts of interest, dividends and other income received on the property held in the Project Accounts. The Accounts Bank
shall administer and manage the Project Accounts in strict compliance with its duties with respect to the Project Accounts pursuant
to this Agreement, and shall be subject to and comply with all of the obligations that the Accounts Bank owes to the Borrowers’
Agent, the Existing Collateral Agent, on behalf of the Existing Senior Secured Parties and the Collateral Agent, on behalf of the
Senior Secured Parties, with respect to the Project Accounts, including all subordination obligations set forth in Section 8.13
(Subordination) with respect to the Accounts Bank’s right of set-off or recoupment or right to obtain a Lien,
pursuant to the terms of this Agreement and the Amended Credit Agreement. The Accounts Bank hereby agrees to comply with any and
all instructions originated by the Existing Collateral Agent and the Collateral Agent directing the disbursement, deposit and/or
transfer of any funds and all other property held in the Project Accounts without any further consent of any Borrower or any other
Person (provided that the Collateral Agent agrees that it will only originate and deliver to the Accounts Bank such instructions,
orders and entitlement orders as are permitted in accordance with the terms of this Agreement and the Intercreditor Agreement)
and to comply with any and all instructions originated by the Borrowers’ Agent directing the disbursement, deposit and/or
transfer of any funds and all other property held in the Project Accounts subject to the terms of this Agreement and the Amended
Credit Agreement.

Section
8.11 Project Accounts as Deposit Account. (a) To the extent that the Project Accounts are not considered securities
accounts, the Project Accounts shall be deemed to be deposit accounts in respect of any property deposited in or credited to the
Project Accounts that is not deemed to be a Financial Asset under applicable Law. Such deposit accounts and such property shall
be maintained with the Accounts Bank acting not as a securities intermediary, but as a bank.

(b)              
The Borrowers’ Agent shall be deemed the customer of the Accounts Bank for purposes of the Project Accounts and, as
such, shall be entitled to all of the rights that customers of banks have under applicable Law with respect to deposit accounts,
including the right to withdraw funds from, or close, the Project Accounts, in each such case subject to, and in accordance with,
the terms of this Agreement and the Amended Credit Agreement.

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(c)               
The parties hereto agree that, to the extent that the Project Accounts are not considered “securities accounts”
(within the meaning of Section 8-501(a) of the UCC), the Project Accounts shall be deemed to be “deposit accounts”
(as defined in Section 9-102(a)(29) of the UCC) to the extent a security interest can be granted and perfected under the UCC in
the Project Accounts as deposit accounts, which the Borrowers shall maintain with the Accounts Bank acting not as a securities
intermediary but as a “bank” (within the meaning of Section 9-102(a)(8) of the UCC).

Section
8.12 Duties of Accounts Bank. (a) The Accounts Bank will also have those duties and responsibilities expressly set
forth in this Agreement and the Amended Credit Agreement and no additional duties, responsibilities, obligations or liabilities
shall be inferred from the provisions of this Agreement or imposed on the Accounts Bank. The Accounts Bank will act at the written
direction of (x) the Existing Collateral Agent and the Collateral Agent (provided that the Collateral Agent agrees that it will
only originate and deliver to the Accounts Bank such instructions, orders and entitlement orders as are permitted in accordance
with the terms of this Agreement and the Intercreditor Agreement), (y) the Existing Administrative Agent and the Administrative
Agent (provided that the Administrative Agent agrees that it will only originate and deliver to the Accounts Bank such instructions,
orders and entitlement orders as are permitted in accordance with the terms of this Agreement and the Intercreditor Agreement)
and (z) as expressly provided in this Agreement or the Amended Credit Agreement, Borrowers’ Agent, but will not be required
to take any action that is contrary to this Agreement, the Amended Credit Agreement or applicable Law or that, in its reasonable
judgment, would involve it in expense or liability, unless it has been furnished with adequate indemnity against such expense
or liability. The Accounts Bank will have no responsibility to ensure the performance by any other party of its duties and obligations
hereunder. The Accounts Bank will use the same care with respect to the safekeeping and handling of property held in the Project
Accounts as the Accounts Bank uses in respect of property held for its own sole benefit.

(b)              
In performing its functions and duties under this Agreement and the Amended Credit Agreement, the Accounts Bank will act
solely as the depository agent and as securities intermediary or as a bank, as the case may be, with respect to the Project Accounts.
None of the Senior Secured Parties or any Borrower will have any rights against the Accounts Bank hereunder, other than for the
Accounts Bank’s gross negligence or willful misconduct as determined by a court of competent jurisdiction by final and Non-Appealable
judgment. Except as otherwise expressly provided in this Agreement, the Amended Credit Agreement and the Intercreditor Agreement,
the Borrowers will not have any right to direct the Accounts Bank to distribute or allocate any funds, instruments, securities,
Financial Assets or other assets in the Project Accounts or to withdraw or transfer any funds, instruments, securities, Financial
Assets or other assets from the Project Accounts. Except as otherwise expressly provided in this Agreement, the Amended Credit
Agreement and the Intercreditor Agreement, the Collateral Agent and Existing Collateral Agent will have the sole right to issue
directions and instructions to the Accounts Bank, acting as securities intermediary or bank, as the case may be, in accordance
with this Agreement, and to issue entitlement orders with respect to the Project Accounts; provided that the Collateral Agent agrees
that it will only originate and deliver to the Accounts Bank such instructions, orders and entitlement orders as are permitted
in accordance with the terms of this Agreement and the Intercreditor Agreement. It is expressly understood and agreed that any
investment made with funds held in the Project Accounts may be made only in accordance with the express provisions of Section
8.16 (Interest and Investments). The Accounts Bank shall not in any way whatsoever be liable for any loss or depreciation
in the value of the investments made pursuant to the terms of this Agreement.

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Section
8.13 Subordination. (a) The Accounts Bank hereby acknowledges
(i) the security interest granted hereby by the Borrowers to the Collateral Agent, on behalf and for the benefit of the Senior
Secured Parties, (ii) the security interest granted by the Borrowers to the Existing Collateral Agent under the Amended Credit
Agreement on behalf and for the benefit of the Existing Senior Secured Parties, (iii) the security interest granted by the Borrowers
under the Financing Documents to the Collateral Agent, on behalf of and for the benefit of the Senior Secured Parties, and (iv)
the security interest granted by the Borrowers under the Existing Financing Documents to the Existing Collateral Agent, on behalf
of and for the benefit of the Existing Senior Secured Parties. In the event that the Accounts Bank has or subsequently obtains
by agreement, operation of applicable Law or otherwise a right of recoupment or set-off or any Lien in any of the Project Accounts
or any Financial Asset or other property deposited therein or credited thereto or any security entitlement related thereto, the
Accounts Bank hereby agrees that such right of recoupment or set-off and/or any such Lien shall be subordinate to the security
interest of (x) the Collateral Agent, on behalf of and for the benefit of the Senior Secured Parties and (y) the Existing Collateral
Agent, on behalf of and for the benefit of the Existing Senior Secured Parties. The Accounts Bank agrees that it shall not assert
or enforce any such right of recoupment or set-off and/or any Lien until the Discharge Date.

(b)              
The Financial Assets and other items deposited in or credited to the Project Accounts and the Accounts Property will not
be subject to deduction, set-off, banker’s lien or any other right in favor of any Person other than (x) the Collateral Agent,
on behalf and for the benefit of the Senior Secured Parties and (y) the Existing Collateral Agent, on behalf of and for the benefit
of the Existing Senior Secured Parties.

Section
8.14 Borrower Acknowledgments. (a) Each Borrower acknowledges
that neither any insufficiency of funds in the Project Accounts (or any of them), nor any inability to apply any funds in the
Project Accounts (or any of them) against any or all amounts owing under any Financing Document, shall at any time limit, reduce
or otherwise affect the Borrowers’ obligations under any Financing Document.

(b)              
Each party to this Agreement acknowledges that the Accounts Bank shall not incur any obligation or liability in circumstances
where there are insufficient funds deposited in or credited to any Project Account to make a payment in full that would otherwise
have been made pursuant to the terms of this Agreement, except to the extent that the loss arises directly from the Accounts Bank’s
gross negligence or willful misconduct as determined by a court of competent jurisdiction by final and Non-Appealable judgment.

Section
8.15 Agreement to Hold In Trust. All payments received
directly by any Borrower that are required to be deposited into the Project Accounts in accordance with the terms of this Agreement
or any other Financing Document shall be held by such Borrower in trust for (x) the Collateral Agent, on behalf and for the benefit
of the Senior Secured Parties and (y) the Existing Collateral Agent, on behalf of and for the benefit of the Existing Senior Secured
Parties, and shall be segregated from other funds of such Borrower and shall, forthwith upon receipt by such Borrower, be turned
over to the Collateral Agent or the Existing Collateral Agent, as applicable or its designee in the same form as received by such
Borrower (duly endorsed by such Borrower to the Existing Collateral Agent or the Collateral Agent, as applicable or the Accounts
Bank, if requested) for deposit and disbursement in accordance with this Agreement, the Amended Credit Agreement and the Intercreditor
Agreement.

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Section
8.16 Interest and Investments. (a) Each amount deposited in or credited to a Project Account from time to time shall,
from the time it is so deposited or credited until the time it is withdrawn from that Project Account (whether for the purpose
of making an investment in Cash Equivalents or otherwise applied in accordance with the terms of this Agreement, the Amended Credit
Agreement and the Intercreditor Agreement), earn interest at such rates as may be agreed from time to time by Borrowers’
Agent and the Accounts Bank.

(b)              
Prior to the receipt by the Accounts Bank of a Notice of Suspension, any amounts held by the Accounts Bank in the Project
Accounts shall be invested by the Accounts Bank from time to time, at the risk and expense of the Borrowers, solely in such Cash
Equivalents as the Borrowers’ Agent shall direct in writing. The Borrowers shall select Cash Equivalents having such maturities
as shall cause the Project Accounts to have a cash balance as of any day sufficient to cover the transfers to be made from the
Project Accounts on such day in accordance with this Agreement, the Amended Credit Agreement, the other Financing Documents and
the Project Documents. Upon delivery by the Collateral Agent or the Existing Collateral Agent, to the Accounts Bank of a Notice
of Suspension and until written revocation of such Notice of Suspension is delivered to the Accounts Bank by the Collateral Agent
or the Existing Collateral Agent, as applicable, any amounts held by the Accounts Bank in the Project Accounts shall be invested
by the Accounts Bank from time to time, solely in such Cash Equivalents as the Required Lenders or the Required Existing Lenders,
as applicable, may direct. The Collateral Agent agrees that it will only deliver a Notice of Suspension to the Accounts Bank as
permitted in accordance with the terms of this Agreement and the Intercreditor Agreement.

(c)               
In the event that the cash balance in any of the Project Accounts is as of any day insufficient to cover the transfers to
be made from such Project Account on such day, the Required Lenders or, from and after the Discharge Date, the Required Existing
Lenders, may direct the Accounts Bank to sell or liquidate the Cash Equivalents standing to the credit of such Project Account
(without regard to maturity date) in such manner as the Required Lenders or, from and after the Discharge Date, the Required Existing
Lenders, may deem necessary in order to obtain cash at least sufficient to make such transfers and to pay any expenses and charges
incurred in connection with effecting any such sale or liquidation, which expenses and charges the Accounts Bank shall be authorized
to pay with cash on deposit in such Project Account. Neither the Accounts Bank nor any Senior Secured Party or Existing Senior
Secured Party shall be liable to any Person for any loss suffered because of any such sale or liquidation.

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(d)              
All interest and other investment income earned from Cash Equivalents made from amounts in any Project Account shall remain
in such Project Account until transferred from such Project Account in accordance with the terms of this Article VIII.

(e)               
It is acknowledged by the parties hereto that all investment income earned on amounts on deposit in or credited to the Project
Accounts for all Tax purposes shall be attributed to and be income of Pacific Holding. Pacific Holding shall be responsible for
determining any requirements for paying Taxes or reporting or withholding any payments for Tax purposes hereunder. Pacific Holding
shall prepare and file all Tax information required with respect to the Project Accounts. Each Borrower agrees to indemnify and
hold each Senior Secured Party harmless against all liability for Tax withholding and/or reporting for any investment income earned
on the Project Accounts and payments in respect thereof. Such indemnities shall survive the termination or discharge of this Agreement
or resignation of the Accounts Bank. No Senior Secured Party shall have any obligation with respect to the making of or the reporting
of any payments for Tax purposes. From time to time, and as reasonably requested by the Accounts Bank, Pacific Holding or any other
Borrower shall provide to the Accounts Bank a United States Department of the Treasury Internal Revenue Service tax form W-9 or
W-8 or other appropriate form required with respect to the withholding or exemption from withholding of income tax on any investment
income earned on the Project Accounts.

Section
8.17 Accounts Bank Information. (a) The Accounts Bank will:

		(i)	within five (5) Business Days after the end of the month in which the first deposit is made into any Project Account and within
five (5) Business Days after the end of each month thereafter, provide the Borrowers’ Agent, the Collateral Agent, the Administrative
Agent, the Existing Collateral Agent and the Existing Administrative Agent a report with respect to the Project Accounts, setting
forth in reasonable detail all deposits to and disbursements from each of the Project Accounts during such month, including the
date on which made, and the balances of and any investments in each of the Project Accounts at the end of such month, including
information regarding categories, amounts, maturities and issuers of Cash Equivalents; and

		(ii)	within three (3) Business Days after receipt of any written request by the Borrowers’ Agent, the Collateral Agent, the
Administrative Agent, the Existing Collateral Agent and/or the Existing Administrative Agent, provide to such Person such other
information as such Person may specify regarding all Cash Equivalents and any other investments made by the Accounts Bank pursuant
hereto and regarding amounts available in the Project Accounts.

Notwithstanding the foregoing, the Accounts Bank will
provide the Borrowers’ Agent, the Collateral Agent, the Administrative Agent, the Existing Collateral Agent and the Existing
Administrative Agent such additional information regarding the Project Accounts and the balances and Cash Equivalents therein as
any of them may reasonably request from time to time.

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(b)              
The Accounts Bank will maintain all of the Project Accounts and all books and records with respect thereto as may be necessary
to record properly all transactions carried out by it under this Agreement.

(c)               
If any Cash Equivalent ceases to be a Cash Equivalent, the Accounts Bank will, as soon as reasonably practicable after becoming
aware of such cessation, notify the Collateral Agent, the Existing Collateral Agent and the Borrowers’ Agent in writing of
such cessation and, upon the written direction of (i) the Borrowers’ Agent, (ii) the Required Lenders or (iii) from and after
the Discharge Date, the Required Existing Lenders will cause the relevant investment to be replaced by a Cash Equivalent or by
cash; provided that this Section 8.17(c) will not oblige the Accounts Bank to liquidate any investment earlier than
its normal maturity date unless:

		(i)	directed to do so under Section 8.16 (Interest and Investments); or

		(ii)	the maturity date of the relevant investment exceeds the maturity date that would enable it to continue to qualify as a Cash
Equivalent.

Section
8.18 Notices of Suspension of Accounts. (a) The Existing Collateral Agent and the Collateral Agent may, but shall
not be required to, suspend the right of the Accounts Bank and the Borrowers’ Agent to withdraw or otherwise deal with any
funds deposited in or credited to the Project Accounts at any time during the occurrence and continuance of an Event of Default
by delivering a notice to the Accounts Bank (with a copy to the Borrowers’ Agent and the Administrative Agent) (a “Notice
of Suspension”); provided that the Collateral Agent agrees that it will only deliver to the Accounts Bank a Notice of
Suspension as permitted in accordance with the terms of this Agreement and the Intercreditor Agreement.

(b)              
Notwithstanding any other provision of the Financing Documents, after the issuance by the Existing Collateral Agent or the
Collateral Agent of a Notice of Suspension in accordance with Section 8.18(a) and until such time as the Person who
delivered the Notice of Suspension advises the Accounts Bank and the Borrowers’ Agent (with a copy to the Administrative
Agent and the Existing Administrative Agent) that it has withdrawn such Notice of Suspension, (which it shall do if such Event
of Default is no longer continuing) no amount may be withdrawn by the Accounts Bank from any Project Account, including for investment
in Cash Equivalents, without the express prior written consent of the Person who delivered the Notice of Suspension.

(c)               
Notwithstanding any other provision of the Financing Documents (but without limitation of Sections 8.02(g) or (h) (Deposits
into and Withdrawals from Project Accounts), without the express prior written consent of the Required Lenders or, from
and after the Discharge Date, the Required Existing Lenders, no amount may be withdrawn from any Project Account if a Default or
Event of Default would occur as a result of such withdrawal.

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(d)              
On the date of each withdrawal by the Accounts Bank from a Project Account, the Borrowers’ Agent shall be deemed to
represent and warrant that no Notice of Suspension is in effect and that that no Default or Event of Default would occur as a result
of such withdrawal, unless the Required Lenders or, from and after the Discharge Date, the Required Existing Lenders, have previously
consented in writing to such withdrawal, notwithstanding that a Notice of Suspension is in effect or that a Default or Event of
Default would occur as a result of such withdrawal.

ARTICLE
IX

DEFAULT AND ENFORCEMENT

Section
9.01 Events of Default. Each of the following events or occurrences described in this Section 9.01 shall
constitute an Event of Default.

(a)               
Nonpayment. Any Borrower fails to pay (i) any amount of principal of any Loan when the same becomes due and payable
or (ii) any interest on any Loan or any fee or other Obligation or amount payable hereunder or under any other Financing Document
within three (3) Business Days after the same becomes due and payable.

(b)              
Breach of Warranty. Any representation or warranty of any Loan Party or any Major Project Party made or deemed to
be restated or remade in any Financing Document is or shall be incorrect or misleading in any material respect when made or deemed
made; provided that (i) if such Loan Party or Major Project Party, as the case may be, was not aware that such representation or
warranty was incorrect or misleading at the time such representation or warranty was made or deemed repeated, (ii) the fact, event
or circumstance resulting in such incorrect or misleading representation or warranty is capable of being cured, corrected or otherwise
remedied, (iii) such fact, event or circumstance resulting in such incorrect or misleading representation or warranty is cured,
corrected or otherwise remedied within thirty (30) days from the date any Loan Party obtains, or should have obtained, knowledge
thereof, and (iv) no Material Adverse Effect shall have occurred as a result of such representation or warranty being incorrect
or misleading, then such incorrect representation or warranty shall not constitute an Event of Default.

(c)               
Non-Performance of Certain Covenants and Obligations. Any Borrower defaults in the due performance and observance
of any of its obligations under any of Sections 7.01(d)(i), (ii) and (iii)(A) (Affirmative Covenants – Maintenance
of Properties), 7.01(g) (Affirmative Covenants – Use of Proceeds and Cash Flow), 7.01(h) (Affirmative
Covenants – Insurance), 7.01(r) (Affirmative Covenants – First Priority Ranking), 7.02 (Negative
Covenants) and 7.03(e) (Reporting Requirements) of this Agreement, Sections 5.02 (Limitation of Liens)
or 5.06 (Name; Jurisdiction of Organization) of any Security Agreement, any Borrower or the Pledgor defaults in the
due performance and observance of any of its obligations under Sections 5.02 (Limitation of Liens), 5.03 (No
Sale of Collateral), 5.04 (No Impairment of Security), 5.05 (Filing of Bankruptcy Proceedings)
or 5.08 (Name; Jurisdiction of Organization) of any Pledge Agreement or Pacific Ethanol defaults in the due performance
and observance of any of its obligations under the Sponsor Support Agreement, if any.

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(d)              
Non-Performance of Other Covenants and Obligations. Any Loan Party or any Major Project Party defaults in the due
performance and observance of any covenant or agreement (other than covenants and agreements referred to in Section 9.01(a)
or 9.01(c)) contained in any Financing Document, and such default shall continue unremedied for a period of thirty (30)
days after any Borrower obtains, or should have obtained, knowledge thereof.

(e)               
Cross Defaults. Any one of the following occurs with respect to any Loan Party or any Major Project Party with respect
to Indebtedness (other than the Obligations) (provided that if any such event has been cured in accordance with the terms of such
Indebtedness, it shall serve as a cure of this Event of Default):

		(i)	a default occurs in the payment when due (subject to any applicable grace period and notice requirements), whether by acceleration
or otherwise, of such Indebtedness; or

		(ii)	such Person fails to observe or perform (subject to any applicable grace periods and notice requirements) any other agreement
or condition relating to any such Indebtedness or contained in any instrument or agreement evidencing, securing or relating thereto,
or any other event occurs, the effect of which default or other event is to cause, or to permit the holder or holders of such Indebtedness
or the beneficiary or beneficiaries of any Guarantee (or a trustee or agent on behalf of such holder or holders or beneficiary
or beneficiaries) to cause, with the giving of notice if required, such Indebtedness to be demanded or to become due or to be repurchased,
prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness
to be made, prior to its stated maturity, or such Guarantee to become payable or cash collateral in respect thereof to be demanded:

		(A)	in the case of the Borrowers, with respect to Indebtedness under the Amended Credit Agreement or in an amount greater than
or equal to one hundred thousand Dollars ($100,000) in the aggregate;

		(B)	in the case of the Pledgor, Pacific Ag Products or Kinergy with respect to Indebtedness in an amount greater than or equal
to one million Dollars ($1,000,000) in the aggregate;

		(C)	in the case of Pacific Ethanol, with respect to Indebtedness in an amount in excess of two million Dollars ($2,000,000) in
the aggregate and an Exercise of Remedies in respect of such Indebtedness has occurred; and

		(D)	in the case of any other Major Project Party only, has or could reasonably be expected to result in a Material Adverse Effect;

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provided, that such occurrence shall not constitute
an Event of Default with respect to any Major Project Party if an agreement replacing each Project Document to which such Major
Project Party is a party, in form and substance reasonably satisfactory to the Administrative Agent, is entered into (together
will all applicable Ancillary Documents) within forty-five (45) days thereof.

(f)               
Judgments. (i) Any judgment or order that has or could reasonably be expected to have a Material Adverse Effect is
rendered against any Loan Party or any Major Project Party, or (ii) any judgment or order is rendered against (A) any or all of
the Borrowers, in an amount in excess of one hundred thousand Dollars ($100,000) in the aggregate, (B) the Pledgor, Pacific Ag
Products (as long as Pacific Ag Products is a Major Project Party) or Kinergy (as long as Kinergy is a Major Project Party) in
an amount in excess of one million Dollars ($1,000,000) in the aggregate or (C) Pacific Ethanol (as long as Pacific Ethanol is
a Major Project Party or a Loan Party) in an amount in excess of two million Dollars ($2,000,000) in the aggregate and, in any
such case, (x) enforcement proceedings are commenced by any creditor upon such judgment or order or (y) there is a period of sixty
(60) consecutive days during which a stay of enforcement of such judgment is not in effect; provided, that such occurrence
shall not constitute an Event of Default with respect to any Major Project Party if an agreement replacing each Project Document
to which such Major Project Party is a party, in form and substance reasonably satisfactory to the Administrative Agent, is entered
into (together will all applicable Ancillary Documents) within forty-five (45) days thereof.

(g)              
ERISA Events. (i) Any Termination Event occurs, (ii) any Plan incurs an “accumulated funding deficiency”
(as defined in Section 412 of the Code or Section 302 of ERISA), (iii) any Borrower or member of any Borrower’s ERISA Controlled
Group engages in a transaction that is prohibited under Section 4975 of the Code or Section 406 of ERISA, (iv) any Borrower or
any ERISA Affiliate fails to pay when due any amount it has become liable to pay to the PBGC, any Plan or a trust established under
Title IV of ERISA, (v) a condition exists by reason of which the PBGC would be entitled to obtain a decree adjudicating that an
ERISA Plan must be terminated or have a trustee appointed to administer it, (vi) any Borrower or any ERISA Affiliate suffers a
partial or complete withdrawal from a Multiemployer Plan or is in “default” (as defined in Section 4219(c)(5) of ERISA)
with respect to payments to a Multiemployer Plan, (vii) a proceeding is instituted against any Borrower to enforce Section 515
of ERISA, (viii) the aggregate amount of the then “current liability” (as defined in Section 412(l)(7) of the Code,
as amended) of all accrued benefits under such Plan or Plans exceeds the then current value of the assets allocable to such benefits
by more than two million Dollars ($2,000,000) at such time, or (ix) any other event or condition occurs or exists with respect
to any Plan that would subject any Borrower to any tax, penalty or other liability.

(h)              
Bankruptcy, Insolvency. Any Loan Party or any Major Project Party:

		(i)	generally fails to pay, or admits in writing its inability or unwillingness to pay, debts as they become due and in the case
of Pacific Ethanol an Exercise of Remedies has occurred;

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		(ii)	applies for, consents to, or acquiesces in, the appointment of a trustee, receiver, sequestrator or other custodian for such
Person or a substantial portion of its property, or makes a general assignment for the benefit of creditors;

		(iii)	in the absence of such application, consent or acquiescence, permits or suffers to exist the appointment of a trustee, receiver,
sequestrator or other custodian for such Person or for a substantial part of its property, and such trustee, receiver, sequestrator
or other custodian is not discharged within sixty (60) days; provided that nothing in the Financing Documents shall prohibit or
restrict any right any Senior Secured Party may have under applicable Law to appear in any court conducting any relevant proceeding
during such sixty (60) day period to preserve, protect and defend its rights under the Financing Documents (and such Person shall
not object to any such appearance);

		(iv)	permits or suffer to exist the commencement of any bankruptcy, reorganization, debt arrangement or other case or proceeding
under any bankruptcy or insolvency law, or any dissolution, winding up or liquidation proceeding, in respect of such Person and,
if any such case or proceeding is not commenced by such Person, such case or proceeding is be consented to or acquiesced in by
such Person or results in the entry of an order for relief or remains for sixty (60) days undismissed; provided that nothing in
the Financing Documents shall prohibit or restrict any right any Senior Secured Party may have under applicable Law to appear in
any court conducting any such case or proceeding during such sixty (60) day period to preserve, protect and defend its rights under
the Financing Documents (and such Person shall not object to any such appearance);

		(v)	takes any action authorizing, or in furtherance of, any of the foregoing; or

		(vi)	ceases to be Solvent and in the case of Pacific Ethanol an Exercise of Remedies has occurred;

provided, that such occurrence shall not constitute
an Event of Default with respect to any Major Project Party if an agreement replacing each Project Document to which such Major
Project Party is a party, in form and substance reasonably satisfactory to the Administrative Agent, is entered into (together
will all applicable Ancillary Documents) within forty-five (45) days thereof (or, if such bankruptcy or insolvency could not reasonably
be expected to result in a Material Adverse Effect, sixty (60) days).

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(i)                
Project Document Defaults; Termination.

		(i)	Any Borrower or any other Major Project Party shall be in material breach of or otherwise in material default under any Project
Document and such breach or default has continued beyond any applicable grace period expressly provided for in such Project Document
(or, if no such cure period is provided, thirty (30) days), as the same may be extended pursuant to any Consent; provided,
that any such breach or default by any Major Project Party under any Project Document shall not constitute an Event of Default
if an agreement replacing such Project Document, in form and substance reasonably satisfactory to the Administrative Agent, is
entered into (together will all applicable Ancillary Documents) within forty-five (45) days thereof (or, if such breach or default
could not reasonably be expected to result in a Material Adverse Effect, sixty (60) days).

		(ii)	Any Project Document ceases to be in full force and effect prior to its scheduled expiration, is repudiated, or its enforceability
is challenged or disaffirmed by or on behalf of any Borrower or any Major Project Party thereto; provided, that such occurrence
shall not constitute an Event of Default with respect to any Project Document if an agreement replacing such Project Document,
in form and substance reasonably satisfactory to the Administrative Agent, is entered into (together will all applicable Ancillary
Documents) within forty-five (45) days thereof (or, if such occurrence could not reasonably be expected to result in a Material
Adverse Effect, sixty (60) days).

(j)                
Governmental Approvals. Any Borrower fails to obtain, renew, maintain or comply in all material respects with any
Necessary Project Approval or any Necessary Project Approval is revoked, canceled, terminated, withdrawn or otherwise ceases to
be in full force and effect, or any Necessary Project Approval is modified without the consent of the Required Lenders in a manner
that, in each case, has, or could reasonably be expected to result in, a Material Adverse Effect on such Borrower or its Plant.

(k)              
Unenforceability of Documentation. At any time after the execution and delivery thereof:

		(i)	any material provision of any Financing Document shall cease to be in full force and effect;

		(ii)	any Financing Document is revoked or terminated, becomes unlawful or is declared null and void by a Governmental Authority
of competent jurisdiction;

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		(iii)	any Financing Document becomes unenforceable, is repudiated or the enforceability thereof is contested or disaffirmed by or
on behalf of any party thereto other than the Senior Secured Parties; or

		(iv)	any Liens against any of the Collateral cease to be a first priority, perfected security interest in favor of the Collateral
Agent, or the enforceability thereof is contested by any Loan Party, or any of the Security Documents ceases to provide the security
intended to be created thereby with the priority purported to be created thereby.

(l)                
Environmental Matters. (i) Any Environmental Claim has occurred with respect to any Borrower, any Plant or any Environmental
Affiliate, (ii) any release, emission, discharge or disposal of any Material of Environmental Concern occurs, and such event could
reasonably be expected to form the basis of an Environmental Claim against any Borrower, any Plant or any Environmental Affiliate,
or (iii) any violation or alleged violation of any Environmental Law or Environmental Approval occurs that would reasonably result
in an Environmental Claim against any Borrower or any Plant or, to the extent any Borrower may have liability, any Environmental
Affiliate, that, in the case of any of Sections 9.01(l)(i), (ii) or (iii), could reasonably be expected to
result in liability for any Borrower (or the Borrowers on an aggregate basis) in an amount greater than five hundred thousand Dollars
($500,000) for any single claim or one million Dollars ($1,000,000) for all such claims during any twelve (12) month period or
could otherwise reasonably be expected to result in a Material Adverse Effect.

(m)            
Loss of Collateral. Any portion of the Collateral (other than a portion that is immaterial) is damaged, seized or
appropriated; provided, that such an occurrence shall not constitute an Event of Default if the applicable Borrowers repair,
replace, rebuild or refurbish such damaged, seized or appropriated Collateral (i) in accordance with Section 8.07 (Insurance
and Condemnation Proceeds Accounts), or (ii) otherwise (provided that such approval is obtained within sixty (60) days
hereafter) with the approval of the Required Lenders, in consultation with the Independent Engineer.

(n)              
Event of Abandonment. An Event of Abandonment occurs.

(o)              
Taking or Total Loss. An Event of Taking with respect to all or a material portion of any Plant or any Equity Interests
in any Borrower occurs, or an Event of Total Loss occurs.

(p)              
Asset Management Agreement. Pacific Ethanol or any Affiliate of
Pacific Ethanol shall challenge the validity or enforceability of any performance guaranty of the obligations of Pacific Ethanol
under the Asset Management Agreement at any time that any such obligation exists.

(q)              
Change of Control. A Change of Control occurs.

Section
9.02 Action Upon Bankruptcy. If any Event of Default described in Section 9.01(h) (Events of Default - Bankruptcy;
Insolvency) occurs with respect to any Borrower, any outstanding Commitments (if not theretofore terminated) shall automatically
terminate. The outstanding principal amount of the outstanding Loans and all other Obligations shall automatically be and become
immediately due and payable, without notice, demand or further act of the Administrative Agent, the Collateral Agent or any other
Senior Secured Party.

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Section
9.03 Action Upon Other Event of Default.

(a)               
If any other Event of Default occurs and is continuing for any reason, whether voluntary or involuntary, and is continuing,
the Administrative Agent shall by written notice to the Borrowers, upon the direction of the Required Lenders, but subject to and
in accordance with the Intercreditor Agreement, declare all or any portion of the Obligations to be due and payable and any outstanding
Commitments (if not theretofore reduced or terminated) to be reduced or terminated, whereupon the full unpaid amount of such Obligations
that has been declared due and payable shall be and become immediately due and payable, without further notice, demand or presentment
and any outstanding Commitments shall be reduced or terminate.

(b)              
During the continuance of an Event of Default, the Administrative Agent, upon the direction of the Required Lenders, shall
instruct the Collateral Agent to exercise any or all remedies provided for under this Agreement or the other Financing Documents,
in each case subject to and in accordance with the Intercreditor Agreement.

(c)               
Any declaration made pursuant to Section 9.03(a) may, should the Required Lenders in their sole and absolute discretion
so elect, be rescinded by written notice to the Borrowers at any time after the principal of the Loans has become due and payable,
but before any judgment or decree for the payment of the monies so due, or any part thereof, has been entered; provided that no
such rescission or annulment shall extend to or affect any subsequent Event of Default or impair any right consequent thereon.

Section
9.04 Application of Proceeds. Any moneys received by the Collateral Agent after the occurrence and during the continuance
of an Event of Default may, subject to the Intercreditor Agreement, be held by the Collateral Agent as Collateral and/or, at the
direction of the Administrative Agent, may be applied in full or in part by the Collateral Agent against the Obligations in the
order of priorities third through eleventh and thirteenth through fifteenth as set forth in Section
8.03(b) (Revenue Account) of the Amended Credit Agreement (but without prejudice to the right of the Collateral Agent
to recover any shortfall from the Borrowers) and the balance, if any, after all of the Obligations have been indefeasibly paid
in full, shall be paid to the Borrowers or as otherwise required by Applicable Law.

ARTICLE
X

THE AGENTS

Section
10.01 Appointment and Authority. (a) Each of the Lenders (in its capacity as Lender and on behalf of itself and
its Affiliates as a potential Interest Rate Protection Provider) hereby irrevocably appoints, designates and authorizes each Agent
to take such action on its behalf under the provisions of this Agreement and each other Financing Document to which it is a party
and to exercise such powers and perform such duties as are expressly delegated to such Agent by the terms of this Agreement or
any other Financing Document to which it is a party. The provisions of this Article X are solely for the benefit of the
Agents and the Lenders, and neither the Borrowers nor any other Person shall have rights as a third party beneficiary of any of
such provisions.

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(b)              
Each Lender hereby appoints Wells Fargo as its Administrative Agent under and for purposes of each Financing Document to
which it is a party. Wells Fargo hereby accepts this appointment and agrees to act as the Administrative Agent for the Lenders
in accordance with the terms of this Agreement and the Intercreditor Agreement. Each Lender appoints and authorizes the Administrative
Agent to act on behalf of such Lender under each Financing Document to which it is a party and to exercise such powers hereunder
and thereunder as are specifically delegated to or required of the Administrative Agent by the terms hereof and thereof. Notwithstanding
any provision to the contrary contained elsewhere in any Financing Document, the Administrative Agent shall not have any duties
or responsibilities, except those expressly set forth herein and in the other Financing Documents to which it is a party, nor shall
the Administrative Agent have or be deemed to have any fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into any Financing Document or otherwise exist against the Administrative
Agent. Without limiting the generality of the foregoing sentence, the use of the term “agent” in this Agreement with
reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising
under agency doctrine of any applicable Law. Instead, such term is used merely as a matter of market custom, and is intended to
create or reflect only an administrative relationship between independent contracting parties.

(c)               
Each Lender (in its capacity as Lender and on behalf of itself and its Affiliates as a potential Interest Rate Protection
Provider) and the Administrative Agent and the Accounts Bank each in its capacity as such hereby appoints Wells Fargo as its Collateral
Agent under and for purposes of each Financing Document to which it is a party. Wells Fargo hereby accepts this appointment and
agrees to act as the Collateral Agent for the Senior Secured Parties in accordance with the terms of this Agreement and the Intercreditor
Agreement. Each of the Lenders hereby irrevocably appoints and authorizes the Collateral Agent to act as the agent of such Lender
for purposes of acquiring, holding and enforcing any and all Liens on Collateral granted by any of the Borrowers or the Pledgor
to the Collateral Agent in order to secure any of the Obligations. In this connection the Collateral Agent, and any co-agents,
sub-agents and attorneys-in-fact appointed by the Collateral Agent, as the case may be, pursuant to Section 10.05 (Delegation
of Duties) for purposes of holding or enforcing any Lien on the Collateral (or any portion thereof) granted under the Security
Documents, or for exercising any rights and remedies thereunder at the direction of the Collateral Agent, as the case may be, shall
be entitled to the benefits of all provisions of this Article X and Article XI (Miscellaneous Provisions)
(including Section 11.09 (Indemnification by the Borrowers), as though such co-agents, sub-agents and attorneys-in-fact
were the Collateral Agent under the Financing Documents) as if set forth in full herein with respect thereto. Notwithstanding any
provision to the contrary contained elsewhere in any Financing Document, the Collateral Agent shall not have any duties or responsibilities,
except those expressly set forth herein or in the other Financing Documents to which the Collateral Agent is a party, nor shall
the Collateral Agent have or be deemed to have any fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into any Financing Document or otherwise exist against the Collateral
Agent. Without limiting the generality of the foregoing sentence, the use of the term “agent” in this Agreement with
reference to the Collateral Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under
agency doctrine of any applicable Law. Instead, such term is used merely as a matter of market custom, and is intended to create
or reflect only an administrative relationship between independent contracting parties.

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(d)              
Each Lender hereby appoints and authorizes the Accounts Bank to act as depository for the Collateral Agent, on behalf of
the Senior Secured Parties, and as the securities intermediary or bank with respect to the Project Accounts for the benefit of
the Collateral Agent, on behalf of the Senior Secured Parties, with such powers as are expressly delegated to the Accounts Bank
by the terms of this Agreement, together with such other powers as are reasonably incidental thereto. The Accounts Bank hereby
accepts this appointment and agrees to act as the depository for the Collateral Agent, on behalf of the Senior Secured Parties,
and as the securities intermediary or bank with respect to the Project Accounts, for the benefit of the Collateral Agent, on behalf
of the Senior Secured Parties, in accordance with the terms of this Agreement. The Accounts Bank further agrees to accept and hold,
as securities intermediary or as a bank, in its custody and in accordance with the terms of this Agreement, for the Collateral
Agent, on behalf of the Senior Secured Parties, the Project Accounts and the Accounts Property. Each Lender also appoints and authorizes
the Accounts Bank to act on its behalf for the purpose of the creation and perfection of a first priority security interest in
favor of the Collateral Agent, on behalf of the Senior Secured Parties, in the Project Accounts to the extent that they are deemed
under applicable Law not to constitute securities accounts or deposit accounts and in any Accounts Property that is deemed under
applicable Law not to constitute a Financial Asset. The Accounts Bank accepts this appointment and agrees to act as the Accounts
Bank for the Collateral Agent, on behalf and for the benefit of the Senior Secured Parties, for such purpose and to hold and maintain
exclusive dominion and control over the Project Accounts and any such Accounts Property on behalf of the Collateral Agent, acting
on behalf of the Senior Secured Parties. Each of the Agents and each Lender acknowledges that the Accounts Bank is also (i) acting
as the securities intermediary or bank with respect to the Project Accounts for the benefit of the Existing Collateral Agent, on
behalf of the Existing Senior Secured Parties, (ii) holding, as securities intermediary or as a bank, in its custody and in accordance
with the terms of the Amended Credit Agreement, for the Existing Collateral Agent, on behalf of the Existing Senior Secured Parties,
the Project Accounts and the Accounts Property and (iii) acting on behalf of the Existing Lenders for the purpose of the creation
and perfection of a security interest in favor of the Existing Collateral Agent, on behalf of the Existing Senior Secured Parties,
in the Project Accounts to the extent that they are deemed under applicable Law not to constitute securities accounts or deposit
accounts and in any Accounts Property that is deemed under applicable Law not to constitute a Financial Asset.

(e)               
Notwithstanding any provision to the contrary contained elsewhere in any Financing Document, the Accounts Bank shall not
have any duties or responsibilities, except those expressly set forth herein or in the Amended Credit Agreement, nor shall the
Accounts Bank have or be deemed to have any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities,
duties, obligations or liabilities shall be read into any Financing Document or otherwise exist against the Accounts Bank. Without
limiting the generality of the foregoing sentence, the use of the term “agent” in this Agreement with reference to
the Accounts Bank is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine
of any applicable Law. Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only
an administrative relationship between independent contracting parties.

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(f)               
Each Senior Secured Party hereby acknowledges that Wells Fargo is serving as the Existing Administrative Agent and the Existing
Collateral Agent and that the Administrative Agent and the Collateral Agent shall not have any duties or obligations under the
Amended Credit Agreement. Each Lender hereby instructs each of the Administrative Agent and Collateral Agent to execute and deliver
the Intercreditor Agreement and the other Financing Documents to which it is a party and to exercise its respective rights and
obligations hereunder and under the Intercreditor Agreement solely in accordance with this Agreement, the Financing Documents to
which such Agent is a party and the Intercreditor Agreement. Each Senior Secured Party agrees that it will only originate and deliver
to the Accounts Bank such instructions, orders and entitlement orders as are permitted in accordance with the terms of this Agreement
and the Intercreditor Agreement.

Section
10.02 Rights as a Lender or Interest Rate Protection Provider. Each Person serving as Agent hereunder or under any
other Financing Document shall have the same rights and powers in its capacity as a Lender or Interest Rate Protection Provider,
as the case may be, as any other Lender or Interest Rate Protection Provider, as the case may be, and may exercise the same as
though it were not an Agent. Each such Person and its Affiliates may accept deposits from, lend money to, act as the financial
advisor or in any other advisory capacity for and generally engage in any kind of business with any Borrower or Affiliate thereof
as if such Person were not an Agent hereunder and without any duty to account therefor to the Lenders, any other Agent or the
Interest Rate Protection Provider.

Section
10.03 Exculpatory Provisions. (a) Neither the Syndication
Agent nor any Agent shall have any duties or obligations except those expressly set forth herein (and, with respect to the Accounts
Bank, in the Amended Credit Agreement) and in the other Financing Documents to which it is a party. Without limiting the generality
of the foregoing, no Agent shall:

		(i)	be subject to any fiduciary or other implied duties, regardless of whether a Default or Event of Default has occurred and is
continuing;

		(ii)	have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers
expressly contemplated hereby or by the other Financing Documents (or, with respect to the Accounts Bank, by the Amended Credit
Agreement) that such Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage
of the Lenders as shall be expressly provided for herein or in the other Financing Documents); provided that such Agent shall not
be required to take any action that may expose the Agent to liability or that is contrary to this Agreement, any Financing Document
or applicable Law; or

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		(iii)	except as expressly set forth herein and in the other Financing Documents to which it is a party (or, with respect to the Accounts
Bank, in the Amended Credit Agreement), have any duty to disclose, nor shall any Agent be liable for any failure to disclose, any
information relating to any Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as an Agent
or any of its Affiliates in any capacity.

(b)              
No Agent shall be liable for any action taken or not taken by it (i) with the prior written consent or at the request
of the Required Lenders (or, in the case of the Accounts Bank, also the Required Existing Lenders) (or such other number or percentage
of the Lenders as may be necessary, or as such Agent may believe in good faith to be necessary, under the circumstances as provided
in Section 10.01 (Appointment and Authority)), (ii) in connection with any amendment, consent, approval or waiver
which it is permitted under the Financing Documents to enter into, agree to or grant or (iii) in the absence of its own gross negligence
or willful misconduct. Each Agent may rely on a written statement from the Lenders delivering any written direction, request, consent,
or waiver to any Agent, that such Lenders constitute the Required Lenders and that no consent of any other Lender is required to
effect such direction, request, consent, or waiver. Each Agent shall be deemed not to have knowledge of any Default or Event of
Default unless and until notice describing such Default or Event of Default is given to such Agent in writing by a Borrower or
a Lender. Neither the Administrative Agent nor the Collateral Agent shall be required to give notice of any Default or Event of
Default to any Person, including without limitation the Accounts Bank, absent direction of the Required Lenders.

(c)               
Neither the Syndication Agent nor any Agent shall be responsible for or have any duty to ascertain or inquire into (i) any
statement, warranty or representation made in or in connection with this Agreement or any other Financing Document, (ii) the contents
of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the
performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence
or continuance of any Default or Event of Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement,
any other Financing Document or any other agreement, instrument or document, or the perfection or priority of any Lien or security
interest created or purported to be created hereby or by any other Security Document, or (v) the satisfaction of any condition
set forth in Article VI (Conditions Precedent) or elsewhere herein, other than to confirm receipt of items expressly
required to be delivered to any such Agent.

(d)              
Notwithstanding any provision of this Agreement or the other Financing Documents to the contrary, the Administrative Agent
and the Collateral Agent (A) shall have no obligation to exercise discretion under the Financing Documents, and (B) shall
not be required to (i) make or give any determination (including whether a matter is satisfactory to such Agent or whether
to deem a matter necessary, desirable, proper or advisable), agreement, consent, approval, request, notice (including any notice
to the Accounts Bank, any notice to tenants, any Notice of Suspension and any Termination Notice), consultation, designation, appointment,
election, judgment or direction, or (ii) file any UCC financing or continuation statements or similar documents or instruments,
or (iii) make any inspection, or (iv) exercise any rights or remedies of a secured party (including voting rights), in
each case, subject to the Intercreditor Agreement, without the written direction of the Required Lenders. Notwithstanding any provision
of this Agreement or the other Financing Documents to the contrary, before taking or omitting any action to be taken or omitted
by the Administrative Agent and/or the Collateral Agent under the terms of this Agreement and the other Financing Documents, the
Administrative Agent and/or the Collateral Agent, as the case may be, may seek the written direction of the Required Lenders (which
written direction may be in the form of an e-mail), and such Agent shall be entitled to rely (and shall be fully protected in so
relying) upon such direction. The Administrative Agent and the Collateral Agent shall have no duty, obligation or liability to
examine, make any investigation or review any notices, requests or other documents or instruments delivered to it under the terms
of the Transaction Documents, except to deliver copies of the same to the Lenders in accordance with the terms of this Agreement.
Any provision of this Agreement or the other Financing Documents authorizing the Administrative Agent and/or the Collateral Agent
to take any action shall not obligate the Administrative Agent or the Collateral Agent to take such action. In no event shall the
Administrative Agent or the Collateral Agent have any duty, responsibility, obligation or liability with respect to monitoring
the Projects or the conditions thereof, or to preserve the Collateral. In acting under the Financing Documents to which it is a
party, each of the Administrative Agent and the Collateral Agent shall be entitled to all of the rights, protections, immunities
and indemnities set forth in this Agreement.

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(e)               
Notwithstanding any provision of this Agreement or the other Financing Documents to the contrary, in no event shall the
Administrative Agent or the Collateral Agent be responsible for, or have any duty or obligation with respect to, the recording,
filing, registering, perfection, protection or maintenance of the security interests or Liens intended to be created hereby or
by the Financing Documents (including without limitation the filing or continuation of any UCC financing or continuation statements
or similar documents or instruments), nor shall the Administrative Agent or the Collateral Agent be responsible for, and neither
such Agent makes any representation regarding, the validity, effectiveness or priority of any of the Financing Documents or the
security interests or Liens intended to be created thereby.

Section
10.04 Reliance by Agents. Each Agent shall be entitled to rely upon, and shall not incur any liability for relying
upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message,
internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise
authenticated by the proper Person. Each Agent also may rely upon any statement made to it orally or by telephone and believed
by it to have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance
with any condition hereunder to the making of a Loan that by its terms must be fulfilled to the satisfaction of a Lender, each
Agent may presume that such condition is satisfactory to such Lender unless such Agent shall have received notice to the contrary
from such Lender prior to the making of such Loan. Each Agent may consult with legal counsel (who may be counsel for the Borrowers),
independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance
with the advice of any such counsel, accountants or experts.

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Section
10.05 Delegation of Duties. Each Agent may perform any and all of its duties and exercise any and all its rights
and powers hereunder or under any other Financing Document by or through any one or more sub agents appointed by such Agent. Each
Agent and any such sub agent may perform any and all of its duties and exercise its rights and powers by or through their respective
Related Parties. The exculpatory provisions of this Article X shall apply to any such sub agent and to the Related Parties
of such Agent and any such sub agent, and shall apply to their respective activities in connection with their acting as Agent.

Section
10.06 Resignation or Removal of Agent. (a) Any Agent
may resign from the performance of all its functions and duties hereunder and/or under the other Financing Documents at any time
by giving thirty (30) days’ prior notice to the Borrowers and the Lenders. The Collateral Agent or the Administrative Agent
may be removed at any time by the Required Lenders. The Accounts Bank may be removed at any time by the Required Lenders and the
Required Existing Lenders. Any such resignation or removal shall take effect upon the appointment of a successor Agent, in accordance
with this Section 10.06.

(b)              
Upon any notice of resignation by any Agent or upon the removal of any Agent by the proper Persons pursuant to Section
10.06(a), the Required Lenders shall appoint a successor Collateral Agent or Administrative Agent, as applicable, hereunder
and under each other Financing Document, or the Required Lenders and the Required Existing Lenders shall appoint a successor Accounts
Bank, which successor Agent in each case shall be a commercial bank having a combined capital and surplus of at least two hundred
fifty million Dollars ($250,000,000).

(c)               
If no successor Agent has been appointed by the proper Persons under Section 10.06(b) within thirty (30) days after
the date such notice of resignation was given by such Agent or the proper Persons elected to remove such Agent under Section
10.06(a), and provided that no Default or Event of Default has occurred and is continuing, the Borrowers may appoint a replacement
Agent (who shall be a commercial bank having a combined capital and surplus of at least two hundred fifty million Dollars ($250,000,000))
within the immediately succeeding fifteen (15) days.

(d)              
If no successor Agent has been appointed within forty-five (45) days (or, if a Default or Event of Default has occurred
and is continuing, within thirty (30) days) after the date such notice of resignation was given by such Agent or the proper Persons
elected to remove such Agent under Section 10.06(a), any Senior Secured Party may petition any court of competent jurisdiction
for the appointment of a successor Agent. Such court may thereupon, after such notice, if any, as it may deem proper, appoint a
successor Agent, as applicable, who shall serve as Agent, hereunder and under each other Financing Document until such time, if
any, as the proper Persons appoint a successor Agent, as provided in this Section 10.06.

(e)               
Upon the acceptance of a successor’s appointment as Agent hereunder, such successor shall succeed to and become vested
with all of the rights, powers, privileges and duties of the retiring (or removed) Agent, and the retiring (or removed) Agent shall
be discharged from all of its duties and obligations hereunder or under the other Financing Documents. After the retirement or
removal of any Agent hereunder and under the other Financing Documents, the provisions of this Article X shall continue
in effect for the benefit of such retiring (or removed) Agent, its sub agents and their respective Related Parties in respect of
any actions taken or omitted to be taken by any of them while the retiring Agent was acting as Agent.

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(f)               
If a retiring or removed Agent is the Accounts Bank, such Accounts Bank will promptly transfer all of the Project Accounts
and the Accounts Property to the possession or control of the successor Accounts Bank and will execute and deliver such notices,
instructions and assignments as may be reasonably necessary or desirable to transfer the rights of the Accounts Bank with respect
to the Project Accounts and the Accounts Property to the successor Accounts Bank. Notwithstanding the foregoing or anything to
the contrary contained in this Agreement, the parties hereto acknowledge that the Accounts Bank is serving in such capacity under
each of this Agreement and the Amended Credit Agreement concurrently, and any successor Accounts Bank shall not be appointed as
such hereunder until such time as such successor Accounts Bank concurrently assumes all rights and obligations of the Accounts
Bank and is appointed as such under each of this Agreement and the Amended Credit Agreement.

(g)              
If a retiring or removed Agent is the Collateral Agent, such Collateral Agent will promptly transfer any Collateral in the
possession or control of such Collateral Agent to the successor Collateral Agent and will execute and deliver such notices, instructions
and assignments as may be reasonably requested by the Required Lenders to transfer the rights of the Collateral Agent with respect
to such Collateral property to the successor Collateral Agent.

Section
10.07 No Amendment to Duties of Agent Without Consent. No Agent shall be bound by any waiver, amendment, supplement
or modification of this Agreement or any other Financing Document that affects its rights or duties hereunder or thereunder unless
such Agent shall have given its prior written consent, in its capacity as Agent, thereto.

Section
10.08 Non-Reliance on Agent and Other Lenders. Each Lender acknowledges that it has, independently and without reliance
upon the Syndication Agent, any Agent or any other Lender or any of their respective Related Parties and based on such documents
and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement and make
its Loans. Each Lender also acknowledges that it will, independently and without reliance upon the Syndication Agent, any Agent
or any other Lender or any of their respective Related Parties and based on such documents and information as it shall from time
to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement,
any other Financing Document or any related agreement or any document furnished hereunder or thereunder.

Section
10.09 Collateral Agent May File Proofs of Claim. (a)
In case of the pendency of any bankruptcy or insolvency proceeding relative to any Borrower or the Pledgor (including any event
described in Section 9.01(h) (Events of Default - Bankruptcy; Insolvency), the Collateral Agent (irrespective of
whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or otherwise and irrespective
of whether the Collateral Agent or any other Senior Secured Party shall have made any demand on any Borrower) shall be entitled
and empowered, but shall not be obligated, by intervention in such proceeding or otherwise, and subject to the terms of the Intercreditor
Agreement in all cases:

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		(i)	to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and all
other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have
the claims of the Senior Secured Parties (including any claim for the reasonable compensation, expenses, disbursements and advances
of the Senior Secured Parties and their respective agents and counsel and all other amounts due the Senior Secured Parties under
Sections 3.11 (Fees), 11.07 (Costs and Expenses) and 11.09 (Indemnification by the Borrowers))
allowed in such judicial proceeding; and

		(ii)	to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same.

Any custodian, receiver, assignee, trustee, liquidator, sequestrator
or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Collateral
Agent and the Existing Collateral Agent pursuant to the terms of the Intercreditor Agreement and, in the event that the Collateral
Agent or the Existing Collateral Agent, as applicable, consents to the making of such payments directly to the Lenders in accordance
with the Intercreditor Agreement, to pay to the Collateral Agent any amount due for the reasonable compensation, expenses, disbursements
and advances of the Agents and their respective agents and counsel, and any other amounts due the Agents under Sections 3.11
(Fees), 11.07 (Costs and Expenses) and 11.09 (Indemnification by the Borrowers).

(b)              
Nothing contained herein shall be deemed to authorize the Collateral Agent to authorize or consent to or accept or adopt
on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights
of any Lender or to authorize the Collateral Agent to vote in respect of the claim of any Lender in any such proceeding.

Section
10.10 Collateral Matters. (a) The Lenders irrevocably authorize the Collateral Agent to release any Lien on any
property granted to or held by the Collateral Agent under any Financing Document as required by the Intercreditor Agreement (i)
upon the occurrence of the Discharge Date, (ii) if approved, authorized or ratified in writing in accordance with Section 11.01
(Amendments, Etc.) or (iii) as permitted pursuant to the terms of the Financing Documents (including as contemplated
by Sections 7.02(f) (Negative Covenants-Asset Dispositions)).

(b)              
Upon request by the Collateral Agent at any time, the Required Lenders will confirm in writing the Collateral Agent’s
authority to release its interest in particular types or items of property pursuant to this Section 10.10. In each case
as specified in this Section 10.10, the Collateral Agent will, at the Borrowers’ expense, execute and deliver to the
applicable Borrower or the Pledgor, as the case may be, such documents as such Person may reasonably request to evidence the release
of such item of Collateral from the assignment and security interest granted under the Security Documents in accordance with the
terms of the Financing Documents and this Section 10.10.

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Section
10.11 Copies. Each Agent shall give prompt notice to each Lender of each material notice or request required or
permitted to be given to such Agent by the Borrowers pursuant to the terms of this Agreement or any other Financing Document (other
than instructions for the transfer of funds from Project Accounts pursuant to Article VIII (Project Accounts) or
if otherwise concurrently delivered to the Lenders by the Borrowers). Each Agent will distribute to each Lender each document
or instrument (including each document or instrument delivered by any Borrower to such Agent pursuant to Article V (Representations
and Warranties), Article VI (Conditions Precedent) and Article VII (Covenants)) received for
its account and copies of all other communications received by such Agent from the Borrowers for distribution to the Lenders by
such Agent in accordance with the terms of this Agreement or any other Financing Document.

Section
10.12 Syndication Agent. The Syndication Agent shall not have any obligation, liability,
responsibility or duty under this Agreement other than those applicable to it in its capacity as a Lender.

ARTICLE
XI

MISCELLANEOUS PROVISIONS

Section
11.01 Amendments, Etc.  No amendment or waiver of any provision of this Agreement or any other Financing
Document, and no consent to any departure by any Borrower, Borrowers’ Agent or any other Loan Party therefrom, shall be
effective unless in writing signed by the Required Lenders (or, if expressly set forth herein, the Administrative Agent) and,
in the case of an amendment, the Borrowers, Borrowers’ Agent or, as the case may be, the applicable Loan Party, and in each
such case acknowledged by the Administrative Agent, and each such waiver or consent shall be effective only in the specific instance
and for the specific purpose for which given; provided that no such amendment, waiver or consent shall:

(a)               
(i) waive any condition set forth in Section 6.01 (Conditions to Closing) or Section 6.02 (Conditions
to All Fundings) without the prior written consent of each Lender (other than any Non-Voting Lender);

(b)              
extend or increase the Commitment of any Lender (or reinstate any Commitment terminated pursuant to Section 9.03(a) (Action
Upon Other Event of Default) without the prior written consent of such Lender;

(c)               
postpone any date scheduled for any payment of principal or interest under Section 3.01 (Repayment of Fundings)
or 3.02 (Interest Payment Dates), or any date fixed by the Administrative Agent for the payment of fees or other
amounts due to the Lenders (or any of them) hereunder or under any other Financing Document without the prior written consent of
each Lender directly affected thereby (other than any Non-Voting Lender), provided, that the Required Lenders may agree to extend
the Maturity Date solely as among each Lender that so agrees, the Loan Parties and the Agents, from time to time in increments
of one (1) calendar year (each such extension, a “Maturity Date Extension”) to a date no later than June 25,
2016, and, in the event of any such proposed Maturity Date Extension, (x) the Borrowers’ Agent shall give each Lender no
less than five (5) Business Days’ notice of such proposed Maturity Date Extension and (y) each Lender hereby agrees that
if it does not, upon such notice, agree to such proposed Maturity Date Extension, it shall, if requested by the Administrative
Agent acting at the direction of the Required Lenders, assign all of its Loans and Commitments to an assignee in accordance with,
and otherwise comply with the obligations under, the terms of this Section 11.01 applicable to Non-Consenting Lenders;

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(d)              
reduce the principal of, or the rate of interest specified herein on, any Loan, or any Fees or other amounts (including
the Required Cash Sweep or any other mandatory prepayments under Section 3.08 (Mandatory Prepayment) payable hereunder
or under any other Financing Document to any Lender without the prior written consent of each Lender directly affected thereby
(other than any Non-Voting Lender); provided that only the prior written consent of the Required Lenders shall be necessary to
amend the definition of Default Rate;

(e)               
change the order of application of any reduction in the Commitments or any prepayment of Loans from the application thereof
set forth in the applicable provisions of Section 2.05 (Termination or Reduction of Commitments), Section 3.07
(Optional Prepayment) or 3.08 (Mandatory Prepayment), respectively (it being understood that the election
by any Lender to decline any prepayments under Section 3.07 (Optional Prepayment) or Section 3.08 (Mandatory
Prepayment), as applicable, shall not be construed as such a change for purposes of this clause (e)), in any manner without
the prior written consent of each Lender directly affected thereby (other than any Non-Voting Lender);

(f)               
change any provision of this Section 11.01, the definition of Required Lenders or any other provision of any Financing
Document specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights under any such
Financing Document (including any such provision specifying the number or percentage of Lenders required to waive any Event of
Default or forbear from taking any action or pursuing any remedy with respect to any Event of Default), or make any determination
or grant any consent under any Financing Document, without the prior written consent of each Lender (other than any Non-Voting
Lender); or

(g)              
release (i) any Borrower from all or substantially all of its obligations under any Financing Document, or (ii) all or substantially
all of the Collateral in any transaction or series of related transactions, without the prior written consent of each Lender (other
than any Non-Voting Lender);

and provided further that (i) no amendment, waiver or consent
shall, unless in writing and signed by an Agent, in addition to the Lenders required above, affect the rights or duties of, or
any fees or other amounts payable to, such Agent under this Agreement or any other Financing Document; and (ii) Section 11.03(h)
(Assignments) may not be amended, waived or otherwise modified without the prior written consent of each Granting Lender
all or any part of whose Loan is being funded by an SPV at the time of such amendment, waiver or other modification.

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(1)              
Notwithstanding the other provisions of this Section 11.01, if, in connection with any proposed amendment, modification
(including any Maturity Date Extension), consent or waiver (each, a “Proposed Change”) requiring the consent
more than the Required Lenders, the consent of the Required Lenders is obtained but the consent of the other Lenders is not obtained
(any such Lender whose consent is not obtained as described in this paragraph being referred to as a “Non-Consenting Lender”),
then any Eligible Assignee reasonably acceptable to the Required Lenders shall have the right (but shall have no obligation) to
purchase from such Non-Consenting Lender, and such Non-Consenting Lender agrees that it shall, upon the Required Lenders’
request, sell and assign to an Eligible Assignee, all of the Commitments and Loans of such Non-Consenting Lender for an amount
equal to (i) the principal balance of all Loans held by the Non-Consenting Lender; plus (ii) all accrued and unpaid interest and
fees with respect thereto through the date of sale; minus (iii) all amounts owed by such Non-Consenting Lender under this Agreement
to the Administrative Agent, for itself or on behalf of the other Senior Secured Parties (which amounts shall be paid over by the
Eligible Assignee to the Administrative Agent to hold or distribute in accordance with the terms of this Agreement); provided,
however, that such purchase and sale shall not be effective until (x) the Administrative Agent shall have received from
such Eligible Assignee an agreement in form and substance reasonably satisfactory to the Required Lenders whereby such Eligible
Assignee shall agree to be bound by the terms hereof, (y) such Non-Consenting Lender shall have received payments of all Loans
held by it and all accrued and unpaid interest and fees with respect thereto through the date of the sale and (z) such purchase
and sale shall have been recorded in the Register maintained by the Administrative Agent in accordance with Section 11.03(c).
Each Lender agrees that, if it becomes a Non-Consenting Lender, it shall execute and deliver to the Administrative Agent an Assignment
Agreement to evidence such sale and purchase and shall deliver to the Administrative Agent any Note (if the assigning Lender’s
Loans are evidenced by a Note) subject to such Assignment Agreement; provided, however, that the failure of any Non-Consenting
Lender to execute an Assignment Agreement and/or deliver any such Note shall not render such sale and purchase (and the corresponding
assignment) invalid, provided further, that in case of such failure (i) the assignee shall deliver to the Administrative Agent
an Assignment Agreement duly executed by the assignee and (ii) the Administrative Agent is hereby authorized and directed to update
the Register to reflect such assignment upon receipt of an Assignment Agreement executed by such assignee.

(2)              
Notwithstanding the other provisions of this Section 11.01, the Borrowers, the Borrowers’ Agent, the Collateral
Agent and the Administrative Agent may (but shall have no obligation to) amend or supplement the Financing Documents without the
consent of any Lender: (i) to cure any ambiguity, defect or inconsistency; (ii) to make any change that would provide any additional
rights or benefits to the Lenders; or (iii) to make, complete or confirm any grant of Collateral permitted or required by this
Agreement or any of the Security Documents or any release of any Collateral that is otherwise permitted under the terms of this
Agreement and the Security Documents. Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right
to approve or disapprove any amendment, waiver or consent hereunder, except that the Commitment of such Lender may not be increased
or extended without the consent of such Lender.

Section
11.02 Applicable Law; Jurisdiction; Etc.  (a) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, UNITED STATES OF AMERICA, WITHOUT REFERENCE TO CONFLICTS
OF LAWS (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

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(b)              
SUBMISSION TO JURISDICTION. EACH BORROWER AND THE BORROWERS’ AGENT IRREVOCABLY AND UNCONDITIONALLY SUBMITS,
FOR ITSELF AND ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY
AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER FINANCING DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT
OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION
OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN
SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE
AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT
OR IN ANY OTHER FINANCING DOCUMENT SHALL AFFECT ANY RIGHT THAT ANY SENIOR SECURED PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION
OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER FINANCING DOCUMENT AGAINST ANY BORROWER OR ITS PROPERTIES IN THE COURTS OF
ANY JURISDICTION.

(c)               
WAIVER OF VENUE. EACH BORROWER AND THE BORROWERS’ AGENT IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER FINANCING DOCUMENT IN ANY COURT REFERRED TO IN SECTION 11.02(b).
EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT
FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

(d)              
Appointment of Process Agent and Service of Process. Each of the Borrowers and the Borrowers’ Agent hereby
irrevocably appoints CT Corporation System with an office on the date hereof at 111 Eighth Avenue, New York, New York 10011, as
its agent to receive on behalf of itself services of copies of the summons and complaint and any other process that may be served
in any such action or proceeding in the State of New York. If for any reason the Process Agent shall cease to act as such for any
Person, such Person hereby agrees to designate a new agent in New York City on the terms and for the purposes of this Section
11.02 reasonably satisfactory to the Administrative Agent. Such service may be made by mailing or delivering a copy of such
process to such Person in care of the Process Agent at the Process Agent’s above address, and each of the Borrowers and the
Borrowers’ Agent hereby irrevocably authorizes and directs the Process Agent to accept such service on its behalf. As an
alternative method of service, each of the Borrowers and the Borrowers’ Agent also irrevocably consents to the service of
any and all process in any such action or proceeding by the air mailing of copies of such process to such Person at its then effective
notice addresses pursuant to Section 11.12 (Notices and Other Communications). Nothing in this Agreement shall affect
any right that any party may otherwise have to bring any action or proceeding relating to this Agreement or any other Financing
Document in the courts of any jurisdiction.

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(e)               
Immunity. To the extent that any Borrower or the Borrowers’ Agent has or hereafter may acquire any immunity
from jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment
in aid of execution, execution or otherwise) with respect to itself or its property, each of the Borrowers and the Borrowers’
Agent hereby irrevocably and unconditionally waives such immunity in respect of its obligations under the Financing Documents and,
without limiting the generality of the foregoing, agrees that the waivers set forth in this Section 11.02(e) shall have
the fullest scope permitted under the Foreign Sovereign Immunities Act of 1976 of the United States and are intended to be irrevocable
for purposes of such Act.

(f)               
WAIVER OF JURY TRIAL. 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 PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OTHER FINANCING DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR
ANY OTHER THEORY). EACH PARTY HERETO (i) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(ii) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER FINANCING DOCUMENTS
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 11.02.

Section
11.03 Assignments. (a) The provisions of this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby,
except that neither any Borrower nor the Borrowers’ Agent may assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Agent and Lender, and no Lender may assign or otherwise transfer any of its
rights or obligations hereunder except (i) subject to Section 11.03(i), to an Eligible Assignee in accordance with Section
11.03(b), (ii) subject to Section 11.03(i), by way of participation in accordance with Section 11.03(d), (iii)
by way of pledge or assignment of a security interest subject to the restrictions of Section 11.03(f), or (iv) to an SPV
in accordance with the provisions of Section 11.03(h) (and any other attempted assignment or transfer by any party hereto
shall be null and void). Nothing in this Agreement, express or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in this Section
11.03, any Person to the extent provided by Section 11.04, and, to the extent expressly contemplated hereby, the Related
Parties of each Agent and Lender) any legal or equitable right, remedy or claim under or by reason of this Agreement.

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(b)              
Any Lender may at any time after the Closing Date assign to one or more Eligible Assignees all or a portion of its rights
and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it); provided
that (i) except in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and the
Loans at the time owing to it or in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund with
respect to a Lender, the Commitment (which for this purpose includes the Loans outstanding thereunder) or, if the applicable Commitment
is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment,
determined as of the date the Lender Assignment Agreement with respect to such assignment is delivered to the Administrative Agent
or, if “Trade Date” is specified in the Lender Assignment Agreement, as of the Trade Date, shall not be less
than one million Dollars ($1,000,000) and in integral multiples of one million Dollars ($1,000,000) in excess thereof, unless the
Administrative Agent otherwise consents in writing; (ii) each partial assignment shall be made as an assignment of a proportionate
part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Loan or the Commitment
assigned; (iii) the parties to each assignment shall execute and deliver to the Administrative Agent a Lender Assignment Agreement,
together with a processing and recordation fee of three thousand five hundred Dollars ($3,500); provided that (A) no such fee shall
be payable in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund with respect to a Lender and
(B) in the case of contemporaneous assignments by a Lender to one or more Funds managed by the same investment advisor (which Funds
are not then Lenders hereunder), only a single such three thousand five hundred Dollars ($3,500) fee shall be payable for all such
contemporaneous assignments; (iv) the Eligible Assignee, if it is not a Lender prior to such assignment, shall deliver to the Administrative
Agent an administrative questionnaire and (v) the assignor shall provide notice of such assignment to the Borrowers’ Agent.
Subject to acceptance and recording thereof by the Administrative Agent pursuant to Section 11.03(c), on and after the effective
date specified in each Lender Assignment Agreement, the Eligible Assignee thereunder shall be a party to this Agreement and, to
the extent of the interest assigned by such Lender Assignment Agreement, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Lender Assignment Agreement,
be released from its obligations under this Agreement (and, in the case of a Lender Assignment Agreement covering all of the assigning
Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to
be entitled to the benefits of Sections 4.01 (Eurodollar Rate Lending Unlawful), 4.03 (Increased Eurodollar
Loan Costs), 4.05 (Funding Losses), 11.07 (Costs and Expenses) and 11.09 (Indemnification
by the Borrowers) with respect to facts and circumstances occurring prior to the effective date of such assignment). Upon
request, the Borrowers (at their expense) shall execute and deliver a Note to the assignee Lender. Any assignment or transfer by
a Lender of rights or obligations under this Agreement that does not comply with this Section 11.03(b) shall be treated
for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with Section
11.03(d).

(c)               
The Administrative Agent, acting solely for this purpose as an agent of the Borrowers, shall maintain at the Administrative
Agent’s office a copy of each Lender Assignment Agreement delivered to it and a register for the recordation of the names
and addresses of the Lenders, and the Commitment of, and principal amount of the Loans owing to, each Lender pursuant to the terms
hereof from time to time (the “Register”). The entries in the Register shall be conclusive, and the Borrowers,
the Agents and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection
by the Borrowers at any reasonable time and from time to time upon reasonable prior notice. In addition, at any time that a request
for a consent for a material or other substantive change to the Financing Documents is pending, any Lender may request and receive
from the Administrative Agent a copy of the Register.

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(d)              
Any Lender may at any time, without the consent of, or notice to, the Borrowers, the Borrowers’ Agent or any Agent,
sell participations to any Person (each, a “Participant”) in all or a portion of such Lender’s rights
and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it); provided that
(i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible
to the other parties hereto for the performance of such obligations and (iii) the Borrowers, the Borrowers’ Agent, the Agents
and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights
and obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide
that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of
any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, waiver or other modification described in the first proviso to Section 11.01
(Amendments, Etc.) that directly affects such Participant. Subject to Section 11.03(e), the Borrowers agree that
each Participant shall be entitled to the benefits of Sections 4.01 (Eurodollar Rate Lending Unlawful), 4.03 (Increased
Eurodollar Loan Costs) and 4.05 (Funding Losses), to the same extent as if it were a Lender and had acquired
its interest by assignment pursuant to Section 11.03(b). To the extent permitted by law, each Participant also shall be
entitled to the benefits of Section 11.15 (Right of Setoff) as though it were a Lender; provided such Participant
agrees to be subject to Section 3.13 (Sharing of Payments) as though it were a Lender.

(e)               
A Participant shall not be entitled to receive any greater payment under Section 4.01 (Eurodollar Rate Lending Unlawful)
or 4.03 (Increased Eurodollar Loan Costs) than the applicable Lender would have been entitled to receive with respect
to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the prior
written consent of the Borrowers’ Agent.

(f)               
Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement
(including under its Notes, if any) to secure obligations of such Lender, including any pledge or assignment to secure obligations
to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder
or substitute any such pledgee or assignee for such Lender as a party hereto.

(g)              
The words “execution,” “signed,” “signature,” and words of like
import in any Lender Assignment Agreement shall be deemed to include electronic signatures 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 or the use of
a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable Law, including the
Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or
any other similar state laws based on the Uniform Electronic Transactions Act.

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(h)              
Notwithstanding anything to the contrary contained herein, any Lender (a “Granting Lender”) may grant
to a special purpose funding vehicle identified as such in writing from time to time by the Granting Lender to the Administrative
Agent and the Borrowers (an “SPV”) the option to provide all or any part of any Loan that such Granting Lender
would otherwise be obligated to make pursuant to this Agreement; provided that (i) nothing herein shall constitute a commitment
by any SPV to fund any Loan, and (ii) if an SPV elects not to exercise such option or otherwise fails to make all or any part of
such Loan, the Granting Lender shall be obligated to make such Loan pursuant to the terms hereof or, if it fails to do so, to make
such payment to the Administrative Agent as is required under Section 3.13 (Sharing of Payments). Each party hereto
hereby agrees that (A) neither the grant to any SPV nor the exercise by any SPV of such option shall increase the costs or expenses
or otherwise increase or change the obligations of the Borrowers under this Agreement (including their obligations under Section 4.03
(Increased Eurodollar Loan Costs), (B) no SPV shall be liable for any indemnity or similar payment obligation under
this Agreement for which a Lender would be liable, and (C) the Granting Lender shall for all purposes, including the approval of
any amendment, waiver or other modification of any provision of any Financing Document, remain the lender of record hereunder.
The making of a Loan by an SPV hereunder shall utilize the Commitment of the Granting Lender to the same extent, and as if, such
Loan were made by such Granting Lender. In furtherance of the foregoing, each party hereto hereby agrees (which agreement shall
survive the termination of this Agreement) that, prior to the date that is one (1) year and one (1) day after the payment in full
of all outstanding commercial paper or other senior debt of any SPV, it will not institute against, or join any other Person in
instituting against, such SPV any bankruptcy, reorganization, arrangement, insolvency, or liquidation proceeding under the laws
of the United States or any State thereof. Notwithstanding anything to the contrary contained herein, any SPV may (1) with notice
to, but without prior consent of the Borrowers and the Administrative Agent and without paying any processing fee therefor, assign
all or any portion of its right to receive payment with respect to any Loan to the Granting Lender and (2) disclose on a confidential
basis any non-public information relating to its funding of any Loan to any rating agency, commercial paper dealer or provider
of any surety or Guarantee or credit or liquidity enhancement to such SPV.

Section
11.04 Benefits of Agreement. Nothing in this Agreement or any other Financing Document, express or implied, shall
give to any Person, other than the parties hereto, and each of their successors and permitted assigns under this Agreement or
any other Financing Document, any benefit or any legal or equitable right or remedy under this Agreement.

Section
11.05 Borrowers’ Agent. Each Borrower hereby appoints and authorizes Pacific Holding, and Pacific Holding
hereby accepts such appointment, as such Borrower’s Borrowers’ Agent to act as agent on such Borrower’s behalf
and to make any representations or certifications, deliver and receive any notices or other communications, and otherwise represent
and act on behalf of such Borrower under the Financing Documents, and to comply with all covenants, conditions and other provisions
of the Financing Documents required to be satisfied by the Borrowers’ Agent. Each Borrower hereby acknowledges and agrees
that it will be bound by any action or inaction taken by the Borrowers’ Agent as if such action or inaction had been taken
by such Borrower.

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Section
11.06 Consultants. (a) The Required Lenders may, in
their sole discretion, appoint any Consultant for the purposes specified herein. If any of the Consultants is removed or resigns
and thereby ceases to act for purposes of this Agreement and the other Financing Documents, the Required Lenders shall designate
a Consultant in replacement.

(b)              
The Borrowers shall reimburse each Consultant appointed hereunder for the reasonable fees and reasonable and documented
out-of-pocket expenses of such Consultant retained on behalf of the Lenders pursuant to this Section 11.06.

(c)               
In all cases in which this Agreement provides for any Consultant to “agree,” “approve,”
“certify” or “confirm” any report or other document or any fact or circumstance, such Consultant
may make the determinations and evaluations required in connection therewith based upon information provided by the Borrowers,
the Borrowers’ Agent or other sources reasonably believed by such Consultant to be knowledgeable and responsible, without
independently verifying such information; provided that, notwithstanding the foregoing, such Consultant shall engage in such independent
investigations or findings as it may from time to time deem necessary in its reasonable discretion to support the determinations
and evaluations required of it.

Section
11.07 Costs and Expenses. Each Borrower shall pay (a) (whether or not the transactions contemplated hereby or thereby
are consummated) all reasonable and documented out of pocket expenses incurred by the Syndication Agent, the Agents or any Lender
(including all reasonable fees, costs and expenses of counsel for any Senior Secured Party and a financial advisor for the Administrative
Agent), in connection with (i) the preparation, negotiation, syndication, execution and delivery of this Agreement and the other
Financing Documents, (ii) the filing and recordation of the Financing Documents, (iii) any amendments, modifications or waivers
of the provisions of this Agreement and the other Financing Documents and (iv) the administration of this Agreement and the other
Financing Documents and (b) all out-of-pocket expenses incurred by the Agents or any Lender (including all fees, costs and expenses
of counsel for any Senior Secured Party), in connection with the enforcement or protection of its rights in connection with this
Agreement and the other Financing Documents, including its rights under this Section 11.07, including in connection with
any workout, restructuring or negotiations in respect of the Obligations.

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

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Section
11.09 Indemnification by the Borrowers. (a) Each Borrower
hereby agrees to indemnify each Agent (and any sub-agent thereof), the Syndication Agent, each Lender and each Related Party of
any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee
harmless from, any and all fees, losses, claims, damages, liabilities and related expenses (including all reasonable and documented
fees, costs and out-of-pocket expenses of counsel for any Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee
arising out of, in connection with, or as a result of:

		(i)	The preparation, negotiation, syndication, execution and delivery of this Agreement, any other Transaction Document or any
agreement or instrument contemplated hereby or thereby, the performance by the parties hereto or thereto of their respective obligations
hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby;

		(ii)	any Loan or the use or proposed use of the proceeds therefrom;

		(iii)	any actual or alleged presence, release or threatened release of Materials of Environmental Concern on or from any Plant or
any property owned, leased or operated by any Borrower, or any liability pursuant to an Environmental Law related in any way to
any Plant, any Site or the Borrowers;

		(iv)	any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory, and regardless of whether any Indemnitee is a party thereto and whether or not any of the transactions
contemplated hereunder or under any of the other Financing Documents is consummated, in all cases, whether or not caused by or
arising, in whole or in part, out of the comparative, contributory or sole negligence of the Indemnitee; and/or

		(v)	any claim, demand or liability for broker’s or finder’s or placement fees or similar commissions, whether or not
payable by a Borrower, alleged to have been incurred in connection with such transactions, other than any broker’s or finder’s
fees payable to Persons engaged by the Lenders or the Agents without the knowledge of the Borrowers;

provided that such indemnity shall not, as to any Indemnitee,
be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent
jurisdiction by final and Non-Appealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee.

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(b)              
To the extent that any of the Borrowers for any reason fails to indefeasibly pay any amount required under Section 11.09(a)
to be paid by it to any Agent (or any sub-agent thereof) or the Syndication Agent or any Related Party of any of the foregoing,
each Lender severally agrees to pay to such Agent (or any such sub-agent),the Syndication Agent or such Related Party, as the case
may be, such Lender’s ratable share (determined as of the time that the applicable unreimbursed or indemnified payment is
sought) of such unpaid amount; provided that the unreimbursed expense or indemnified fee, loss, claim, damage, liability or related
expense, as the case may be, was incurred by or asserted against such Agent (or any sub-agent thereof) or the Syndication Agent
in its capacity as such, or against any Related Party of any of the foregoing acting for such Agent (or any sub-agent thereof)
in connection with such capacity. The obligations of the Lenders under this Section 11.09(b) are subject to the provisions
of Section 2.03(d) (Funding of Loans). The obligations of the Lenders to make payments pursuant to this Section
11.09(b) are several and not joint and shall survive the payment in full of the Obligations and the termination of this Agreement.
The failure of any Lender to make payments on any date required hereunder shall not relieve any other Lender of its corresponding
obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to do so.

(c)               
Except as otherwise provided in Article VI (Conditions Precedent), all amounts due under this Section 11.09
shall be payable not later than ten (10) Business Days after demand therefor.

Section
11.10 Interest Rate Limitation. Notwithstanding anything to the contrary contained in any Financing Document, the
interest paid or agreed to be paid under the Financing Documents shall not exceed the maximum rate of non-usurious interest permitted
by applicable Law (the “Maximum Rate”). If any Agent or any Lender shall receive interest in an amount that
exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such unpaid principal,
refunded to the Borrowers. In determining whether the interest contracted for, charged, or received by any Senior Secured Party
exceeds the Maximum Rate, such Person may, to the extent permitted by applicable Law, (a) characterize any payment that is not
principal as an expense, fee, or premium rather than interest, (b) exclude prepayments and the effects thereof, and (c) amortize,
prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations
hereunder.

Section
11.11 No Waiver; Cumulative Remedies. No failure by any Senior Secured Party to exercise, and no delay by any such
Person in exercising, any right, remedy, power or privilege hereunder or under any other Financing Document shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges
herein provided, and provided under each other Financing Document, are cumulative and not exclusive of any rights, remedies, powers
and privileges provided by law.

Section
11.12 Notices and Other Communications. (a) Except
in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in Section
11.12(b)), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by telecopier or electronic mail as follows, and all
notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone
number, as follows:

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		(i)	if to the Borrowers, the Borrowers’ Agent or any Agent, to the address, telecopier number, electronic mail address or
telephone number specified for such Person on Schedule 11.12;

		(ii)	if to any Lender, to the address, telecopier number, electronic mail address or telephone number specified in its administrative
questionnaire; and

		(iii)	if to any Interest Rate Protection Provider, to the address, telecopier, number, electronic mail address or telephone number
specified on Schedule 11.12.

(b)              
Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been
given when received; notices sent by telecopier shall be deemed to have been given when sent (except that, if not given during
normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next Business Day
for the recipient). Notices delivered through electronic communications to the extent provided in Section 11.12(d) shall
be effective as provided in Section 11.12(d). Any notice sent to the Borrowers’ Agent shall be deemed to have been
given to all Borrowers.

(c)               
Notices and other communications to the Senior Secured Parties hereunder may be delivered or furnished by electronic communication
(including e mail and internet or intranet websites) pursuant to procedures approved by the Administrative Agent; provided that
the foregoing shall not apply to notices to any Lender pursuant to Article II (Commitments and Funding) if such Lender
has notified the Administrative Agent that it is incapable of receiving notices under such Article II (Commitments and Funding)
by electronic communication. Each of the Administrative Agent or the Borrowers may, in its discretion, agree to accept notices
and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval
of such procedures may be limited to particular notices or communications.

(d)              
Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall
be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return
receipt requested” function, as available, return e-mail or other written acknowledgement); provided that if such notice
or other communication is not received during the normal business hours of the recipient, such notice or communication shall be
deemed to have been received at the opening of business on the next Business Day for the recipient, and (ii) notices or communications
posted to an internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail
address as described in Section 11.12(d)(i) of notification that such notice or communication is available and identifying
the website address therefor.

(e)               
Each of the Borrowers, the Borrowers’ Agent, the Syndication Agent and the Agents may change its address, telecopier
or telephone number for notices and other communications hereunder by notice to the other parties hereto. Each Lender and Interest
Rate Protection Provider may change its address, telecopier or telephone number for notices and other communications hereunder
by notice to the Borrowers, the Borrowers’ Agent and each Agent.

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(f)               
The Senior Secured Parties shall be entitled to rely and act upon any written notices purportedly given by or on behalf
of the Borrowers or the Borrowers’ Agent even if (i) such notices were not made in a manner specified herein, were incomplete
or were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the
recipient, varied from any confirmation thereof. The Borrowers shall indemnify each Senior Secured Party and the Related Parties
of each of them from all fees, losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice
purportedly given by or on behalf of the Borrowers or the Borrowers’ Agent (or any one of the Borrowers). All telephonic
notices to and other telephonic communications with any Agent may be recorded by such Agent, and each of the parties hereto hereby
consents to such recording.

(g)              
So long as Wells Fargo is the Administrative Agent, each Borrower and the Borrowers’ Agent hereby agrees that it
will provide to the Administrative Agent all information, documents and other materials that it is obligated to furnish to the
Administrative Agent pursuant to the Financing Agreements, including all notices, requests, financial statements, financial and
other reports, certificates and other information materials, but excluding any such communication that (i) relates to the Funding,
(ii) relates to the payment of any principal or other amount due under this Agreement prior to the scheduled date therefor, (iii)
provides notice of any Default or Event of Default or (iv) is required to be delivered to satisfy any condition precedent to Funding
(all such non-excluded communications being referred to herein collectively as “Communications”), by transmitting
the Communications in an electronic/soft medium in a format acceptable to the Administrative Agent to michael.d.pinzon@wellsfargo.com
and to hui.chen@wellsfargo.com. In addition, each Borrower and the Borrowers’ Agent agrees to continue to provide
the Communications to the Administrative Agent in the manner specified in the Financing Agreements but only to the extent requested
by the Administrative Agent.

(h)              
So long as Wells Fargo is the Administrative Agent, each Borrower and the Borrowers’ Agent further agrees that the
Administrative Agent may make the Communications available to the Lenders by posting the Communications on http: www.intralinks.com
(or any replacement or successor thereto) or a substantially similar electronic transmission systems (the “Platform”).

(i)                
THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE”. THE AGENTS DO NOT WARRANT THE ACCURACY OR COMPLETENESS
OF THE COMMUNICATIONS, OR THE ADEQUACY OF THE PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE COMMUNICATIONS.
NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE AGENTS IN CONNECTION WITH
THE COMMUNICATIONS OR THE PLATFORM. IN NO EVENT SHALL THE ADMINISTRATIVE AGENT OR ANY OF ITS AFFILIATES OR ANY OF THEIR RESPECTIVE
OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ADVISORS OR REPRESENTATIVES (COLLECTIVELY, “AGENT PARTIES”) HAVE ANY
LIABILITY TO ANY BORROWER, THE BORROWERS’ AGENT, ANY LENDER OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING
DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING
OUT OF THE BORROWER’S, THE BORROWERS’ AGENTS’ OR THE ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS
THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF ANY AGENT PARTY IS FOUND IN A FINAL NON-APPEALABLE JUDGMENT BY A COURT
OF COMPETENT JURISDICTION TO HAVE RESULTED PRIMARILY FROM SUCH AGENT PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

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(j)                
The Administrative Agent agrees that the receipt of the Communications by the Administrative Agent at its e-mail address
set forth in Schedule 11.12 shall constitute effective delivery of the Communications to the Administrative Agent for purposes
of the Financing Agreements. Each Lender agrees that notice to it (as provided in the next sentence) specifying that the Communications
have been posted to the Platform shall constitute effective delivery of the Communications to such Lender for purposes of the Financing
Agreements. Each Lender agrees to notify the Administrative Agent in writing (including by electronic communication) from time
to time of such Lender’s e-mail address to which the foregoing notice may be sent by electronic transmission and that the
foregoing notice may be sent to such e-mail address.

(k)              
Notwithstanding clauses (g) to (j) above, nothing herein shall prejudice the right of any Senior Secured Party to
give any notice or other communication pursuant to any Financing Document in any other manner specified in such Financing Document.

(l)The distribution of material through
an electronic medium is not necessarily secure and there are confidentiality and other risks associated with such distribution.
The Borrowers and the Lenders agree and assume the risks associated with such electronic distribution. The Administrative Agent
may, but shall not be obligated to, store any electronic communications on Internet or intranet platform in accordance with the
Administrative Agent’s customary document retention procedures and policies.

Section
11.13 Patriot Act Notice. Each Senior Secured Party (for itself and not on behalf of any Lender) hereby notifies
the Borrowers that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that
identifies the Borrowers, which information includes the name and address of the Borrowers and other information that will allow
such Senior Secured Party to identify the Borrowers in accordance with the Patriot Act.

Section
11.14 Payments Set Aside. To the extent that any payment by or on behalf of any Borrower is made to any Agent or
Lender, or any Agent or Lender exercises its right of setoff (including any payment or setoff in accordance with the Intercreditor
Agreement), and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent
or preferential, set aside or required (including pursuant to any settlement entered into by such Agent or Lender in its discretion)
to be repaid to a trustee, receiver or any other party, in connection with any bankruptcy or insolvency proceeding or otherwise,
then (a) to the extent of such recovery, the Obligation or part thereof originally intended to be satisfied shall be revived and
continued in full force and effect as if such payment had not been made or such setoff had not occurred, and (b) each Lender severally
agrees to pay to each Agent upon demand its applicable share (without duplication) of any amount so recovered from or repaid by
such Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate per annum equal
to the Federal Funds Effective Rate from time to time in effect. The obligations of the Lenders under Section 11.14(b)
shall survive the payment in full of the Obligations and the termination of this Agreement and/or the Intercreditor Agreement.

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Section
11.15 Right of Setoff. Each Lender and each of its respective Affiliates is hereby authorized at any time and from
time to time during the continuance of an Event of Default and subject to the Intercreditor Agreement, to the fullest extent permitted
by applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever
currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender or any such Affiliate
to or for the credit or the account of any Borrower against any and all of the obligations of the Borrowers now or hereafter existing
under this Agreement or any other Financing Document to such Lender, irrespective of whether or not such Lender shall have made
any demand under this Agreement or any other Financing Document and although such obligations of the Borrowers may be contingent
or unmatured or are owed to a branch or office of such Lender different from the branch or office holding such deposit or obligated
on such indebtedness. The rights of each Lender and their respective Affiliates under this Section 11.15 are, subject to
the Intercreditor Agreement, in addition to other rights and remedies (including other rights of setoff) that such Lender or their
respective Affiliates may have. Each Lender agrees to notify the Borrowers’ Agent and the Administrative Agent promptly
after any such setoff and application; provided that the failure to give such notice shall not affect the validity of such setoff
and application.

Section
11.16 Severability. If any provision of this Agreement or any other Financing Document is held to be illegal, invalid
or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement and the other Financing
Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the
illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to
that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction.

Section
11.17 Survival. Notwithstanding anything in this Agreement to the contrary, Sections 11.07 (Costs and Expenses)
and 11.09 (Indemnification by the Borrowers) shall survive any termination of this Agreement. In addition, each
representation and warranty made hereunder and in any other Financing Document or other document delivered pursuant hereto or
thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof. Such representations
and warranties have been or will be relied upon by each Senior Secured Party, regardless of any investigation made by any Senior
Secured Party or on their behalf and notwithstanding that any Senior Secured Party may have had notice or knowledge of any Default
or Event of Default at the time of the Funding, and shall continue in full force and effect as long as any Loan or any other Obligation
hereunder or under any other Financing Document shall remain unpaid or unsatisfied.

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Section
11.18 Treatment of Certain Information; Confidentiality. The Syndication Agent and each of the Agents and the Lenders
agrees to maintain the confidentiality of the Information, except that Information may be disclosed (a) to its Affiliates and
to its and its Affiliates’ respective partners, directors, officers, employees, agents, advisors and representatives (it
being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information
and instructed to keep such Information confidential); (b) to the extent requested or required by any regulatory authority purporting
to have jurisdiction over it; (c) to the extent required by applicable Law or regulations or by any subpoena or similar legal
process; (d) to any other party to this Agreement; (e) in connection with the exercise of any remedies hereunder or any suit,
action or proceeding relating to this Agreement or the enforcement of rights hereunder (including any actual or prospective purchaser
of Collateral); (f) subject to an agreement containing provisions substantially the same as those of this Section 11.18,
to (i) any Eligible Assignee of or Participant in, or any prospective Eligible Assignee of or Participant in, any of its rights
or obligations under this Agreement, (ii) any direct or indirect contractual counterparty or prospective counterparty (or such
contractual counterparty’s or prospective counterparty’s professional advisor) to any credit derivative transaction
relating to the Obligations or (iii) any Person (and any of its officers, directors, employees, agents or advisors) that may enter
into or support, directly or indirectly, or that may be considering entering into or supporting, directly or indirectly, either
(A) contractual arrangements with such Agent or Lender, or any Affiliates thereof, pursuant to which all or any portion of the
risks, rights, benefits or obligations under or with respect to any Loan or Financing Document is transferred to such Person or
(B) an actual or proposed securitization or collateralization of, or similar transaction relating to, all or a part of any amounts
payable to or for the benefit of any Lender under any Financing Document (including any rating agency); (g) with the consent of
any Borrower; (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section
11.18 or (ii) becomes available to the Syndication Agent, any Agent, any Lender or any of their respective Affiliates on a
nonconfidential basis from a source other than the Borrowers; (i) to any state, federal or foreign authority or examiner (including
the National Association of Insurance Commissioners or any other similar organization) regulating any Lender; or (j) to any rating
agency when required by it (it being understood that, prior to any such disclosure, such rating agency shall undertake to preserve
the confidentiality of any Information relating to the Borrowers received by it from such Lender). In addition, the Syndication
Agent, any Agent and the Lenders may disclose the existence of this Agreement and information about this Agreement to market data
collectors, similar service providers to the lending industry, and service providers to the Syndication Agent, the Agents and
the Lenders in connection with the administration and management of this Agreement, the other Financing Documents, the Commitments,
and the Funding. For the purposes of this Section 11.18, “Information” means written information that
any Borrower furnishes to the Syndication Agent, any Agent or Lender after the Closing Date (and designated at the time of delivery
thereof in writing as confidential) pursuant to or in connection with any Financing Document, relating to the assets and business
of such Borrower, but does not include any such information that (i) is or becomes generally available to the public other than
as a result of a breach by the Syndication Agent, such Agent or Lender of its obligations hereunder, (ii) is or becomes available
to the Syndication Agent, such Agent or Lender from a source other than the Borrowers that is not, to the knowledge of the Syndication
Agent, such Agent or Lender, as applicable, acting in violation of a confidentiality obligation with such Borrower or (iii) is
independently compiled by the Syndication Agent, any Agent or Lender, as evidenced by their records, without the use of the Information.
Any Person required to maintain the confidentiality of Information as provided in this Section 11.18 shall be considered
to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality
of such Information as such Person would accord to its own confidential information.

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Section
11.19 Waiver of Consequential Damages, Etc.  Except
as otherwise provided in Section 11.09 (Indemnification by the Borrowers) for the benefit of any
Indemnitee, to the fullest extent permitted by applicable Law, no party hereto shall assert, and each party hereto hereby
waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive
damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any
other Financing Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby,
any Loan or the use of the proceeds thereof. No Indemnitee shall be liable for any damages arising from the use by unintended
recipients of any information or other materials distributed by it through telecommunications, electronic or other
information transmission systems in connection with this Agreement or the other Financing Documents or the transactions
contemplated hereby or thereby.

Section
11.20 Waiver of Litigation Payments. To the extent that any Borrower or the Borrowers’ Agent may, in any
action, suit or proceeding brought in any of the courts referred to in Section 11.02(b) (Applicable Law; Jurisdiction; Etc,)
or elsewhere arising out of or in connection with this Agreement or any other Financing Document to which it is a party, be
entitled to the benefit of any provision of law requiring any Senior Secured Party in such action, suit or proceeding to post
security for the costs of such Person or to post a bond or to take similar action, each such Person hereby irrevocably waives
such benefit, in each case to the fullest extent now or in the future permitted under the laws of New York or, as the case
may be, the jurisdiction in which such court is located.

Section
11.21 Security Procedure For Funds Transfers. The Administrative Agent shall confirm each funds transfer instruction
received in the name of any Borrower or the Borrowers’ Agent by means of the security procedure selected by the Borrowers’
Agent and communicated to the Administrative Agent through a signed certificate in the form of Exhibit 11.21, which upon
receipt by the Administrative Agent shall become a part of this Agreement. Once delivered to the Administrative Agent, Exhibit
11.21 may be revised or rescinded only by a writing signed by an authorized representative of the Borrowers’ Agent.
Such revisions or rescissions shall be effective only after actual receipt and following such period of time as may be necessary
to afford the Administrative Agent a reasonable opportunity to act on it. If a revised certificate in the form of Exhibit 11.21
or a rescission of any such existing certificate is delivered to the Administrative Agent by an entity that is a successor-in-interest
to the Borrowers’ Agent, such document shall be accompanied by additional documentation satisfactory to the Administrative
Agent showing that such entity has succeeded to the rights and responsibilities of the Borrowers’ Agent under this Agreement.
The parties understand that the Administrative Agent’s inability to receive or confirm funds transfer instructions pursuant
to the security procedure selected by the Borrowers’ Agent may result in a delay in accomplishing such funds transfer, and
agree that the Administrative Agent shall not be liable for any loss caused by any such delay.

[Remainder of page intentionally blank.
Next page is signature page.]

    	97

    	 

    
 

IN WITNESS WHEREOF, the parties hereto
have caused this Amended and Restated Credit Agreement to be executed by their respective officers as of the day and year first
above written.

	 	
        PACIFIC ETHANOL HOLDING CO. LLC,

        as Borrower

	 	 
	 	By:	/S/ BRYON T. MCGREGOR
	 	 	Name: Bryon T. McGregor
	 	 	Title: Chief Operating Officer

		
        PACIFIC
ETHANOL MADERA LLC,

        as Borrower

	 	 
	 	By:	/S/ BRYON T. MCGREGOR
	 	 	Name: Bryon T. McGregor
	 	 	Title: Chief Operating Officer

	 	
        PACIFIC
ETHANOL COLUMBIA, LLC,

        as Borrower

	 	 
	 	By:	/S/ BRYON T. MCGREGOR
	 	 	Name: Bryon T. McGregor
	 	 	Title: Chief Operating Officer

 

		
        PACIFIC
ETHANOL STOCKTON LLC,

        as Borrower

	 	 
	 	By:	/S/ BRYON T. MCGREGOR
	 	 	Name: Bryon T. McGregor
	 	 	Title: Chief Operating Officer

 

 

[Signature Page to
Credit Agreement]

 

    	98

    	 

    

 

 

		
        PACIFIC
ETHANOL MAGIC VALLEY, LLC,

        as Borrower

	 	 
	 	By:	/S/ BRYON T. MCGREGOR
	 	 	Name: Bryon T. McGregor
	 	 	Title: Chief Operating Officer

 

		
        PACIFIC
ETHANOL HOLDING CO. LLC,

as Borrowers’ Agent

	 	 
	 	By:	/S/ BRYON T. MCGREGOR
	 	 	Name: Bryon T. McGregor
	 	 	Title: Chief Operating Officer

 

 

 

[Signature Page to
Credit Agreement]

 

    	99

    	 

    

 

 

		
        WELLS
FARGO BANK, N.A.,

as Administrative Agent

	 	 
	 	By:	/S/ MICHAEL PINZON
	 	 	Name: Michael Pinzon
	 	 	Title: Vice President

 

 

 

 

 

[Signature Page to
Credit Agreement]

 

    	100

    	 

    

 

		
        WELLS
FARGO BANK, N.A.,

as Collateral Agent

	 	 
	 	By:	/S/ MICHAEL PINZON
	 	 	Name: Michael Pinzon
	 	 	Title: Vice President

 

 

 

 

 

 

[Signature Page to
Credit Agreement]

 

    	101

    	 

    

 

		
        CREDIT
SUISSE LOAN FUNDING LLC,

as Initial Lender

	 	 
	 	By:	/S/ ROBERT HEALEY
	 	 	Name: Robert Healey
	 	 	Title: Authorized Signatory
	 	 	 
	 	 	 
	 	By:	/S/ MICHAEL WOTANOWSKI
	 	 	Name: Michael Wotanowski
	 	 	Title: Authorized Signatory

 

    	102

    	 

    
 

 

		
        CREDIT
SUISSE LOAN FUNDING LLC,

as Syndication Agent

	 	 
	 	By:	/S/ ROBERT HEALEY
	 	 	Name: Robert Healey
	 	 	Title: Authorized Signatory
	 	 	 
	 	 	 
	 	By:	/S/ MICHAEL WOTANOWSKI
	 	 	Name: Michael Wotanowski
	 	 	Title: Authorized Signatory

 

 

[Signature Page to
Credit Agreement]

    	103

    	 

    

 

 

		
        AMARILLO
NATIONAL BANK,

as Accounts Bank

	 	 
	 	By:	/S/ CRAIG L. SANDERS
	 	 	Name: Craig L. Sanders
	 	 	Title: Executive Vice President

 

 

 

 

[Signature Page to
Credit Agreement]

 

    	104

    	 

    
 

SCHEDULE 1.01(a)

to Credit Agreement

LENDERS, LOAN COMMITMENTS AND
OFFICES1

		I.	LOANS

	LENDER	COMMITMENT	DOMESTIC OFFICE	EURODOLLAR OFFICE
	Credit Suisse Loan Funding LLC	$10,000,000	
        Credit Suisse Loan Funding LLC

        7033 Louis Stephens Drive

        PO Box 110047

        Research Triangle Park, NC 27709

        Attention: Joe Primiano

        Telephone: 919-994-4788

        Facsimile: 866-469-3871
	 

 

 

1
All Lender information to be completed/confirmed.

 

 

SCHEDULE 1.01(a)

    	105

    	 	

    
 

Schedule 5.11(i)

to Credit Agreement

CONTRACTS 1

As of June 25, 2010

	Pacific Ethanol Holding Co. LLC
	 	Name of Counterparty	Title
	1.	—	Second Amended and Restated Limited Liability Company Agreement of Pacific Ethanol Holding Co. LLC
	2.	Boardman, Burley, Madera, Stockton, and Pacific Ethanol	* Asset Management Agreement
	3.	Boardman, Burley, Madera, Stockton, and Pacific Ethanol	* Asset Management Agreement Consent
	4.	U.S. Environmental Protection Agency	
        Fuel Additive Registration: Fuel Ethanol Per 40

        CFR 79.23

        Permit No. 249820001

        (New permit number to reflect assignment to Pacific

        Holding)

__________

1 Each document listed on this Schedule 5.11(i) marked with an asterisk is an Affiliated Project Document.

SCHEDULE 5.11(i)

    	1

    	 

    

 

	5.	U.S. Environmental Protection Agency	
        Renewable Fuel Standard Program

        Company ID: 3697

        (New permit number to reflect assignment to Pacific

        Holding)

	Pacific Ethanol Madera LLC
	 	Name of Counterparty	Title
	1.	—	Fourth Amended and Restated Limited Liability Company Operating Agreement of Pacific Ethanol Madera LLC
	2.	California State Board of Equalization	Seller’s Permit SR KHO 100-910312
	3.	Comerica Bank	Letter Agreement Regarding Interest Rate Cap Ref. No. CAP0230
	4.	Comerica Bank	Letter Agreement Regarding Interest Rate Cap Ref. No. CAP0229
	5.	Delta-T Corporation	License of Technology Between Delta-T Corporation and Pacific Ethanol Madera LLC
	6.	Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau	Alcohol Fuel Producers Permit AFP-CA-15046
	7.	Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau	Distilled Spirits Bond

(Surety: International Fidelity Insurance Company)

Bond No.: 0427939

	8.	Design Space Modular Buildings, Inc.	Lease Agreements
	9.	Fred Vance & Associates LLC	Letter Agreement for Real and Business Personal Property Tax Consulting
	10.	IRS	Producer of alcohol 05-CA-2007-004345-AF
	11.	Madera County Department of Agriculture	Pesticide application permit for premises weed control (Note: Employee, Bacilio Ochoa, holds the Private Applicator Certificate as the person authorized to apply pesticides) 27-012339/2090110
	12.	Madera County Environmental Health Department	Domestic Water Supply Permit 2000938
	13.	
        Pacific Ethanol Imperial,

        LLC and 13 Tons, LLC
	*Equipment Lease Agreement
	14.	Pacific Holding, Boardman, Burley, Stockton, and Pacific Ethanol	*Asset Management Agreement
	15.	Pacific Holding, Boardman, Burley, Stockton, and Pacific Ethanol	*Asset Management Agreement Consent
	16.	PPM Energy, Inc. (a.k.a. Iberdrola Renewables)	Base Contract for Sale and Purchase of Natural Gas
	17.	Regional Water Quality Control Board	Industrial Stormwater Discharge 5F201019914
	18.	San Joaquin Valley APCD	Air Permit to Operate (PTO)

C-4261

	19.	San Joaquin Valley APCD	Grain Receiving PTO

C-4261-29-0

	20.	San Joaquin Valley APCD	Scalping PTO C-4261-30-0
	21.	San Joaquin Valley APCD	Grain
    Grinding (Hammerimill) PTO

C-4261-31-0
			
        
	 

 

 

SCHEDULE 5.11(i)

    	2

    	 

    

 

	22.	San Joaquin Valley APCD	
        Flaked Grain Storage PTO

        C-4261-32-0

	23.	San Joaquin Valley APCD	
        Flaked Grain Loadout PTO

        C-4261-33-0

	24.	San Joaquin Valley APCD	
        Ethanol Hammermill #1 PTO

        C-4261-34-0

	25.	San Joaquin Valley APCD	
        Ethanol Hammermill #2 PTO

        C-4261-35-0

	26.	San Joaquin Valley APCD	
        Slurry Tank PTO

        C-4261-36-2

	27.	San Joaquin Valley APCD	
        Yeast Prop Tank PTO

        C-4261-37-3

	28.	San Joaquin Valley APCD	
        Dormant Emission Unit PTO (yeast tank)

        C-4261-37-5

	29.	San Joaquin Valley APCD	
        Liquefaction Tank PTO

        C-4261-38-3

	30.	San Joaquin Valley APCD	
        Fermentation Tanks PTO

        C-4261-39-3

	31.	San Joaquin Valley APCD	
        Beerwell PTO

        C-4261-40-3

	32.	San Joaquin Valley APCD	
        Distillation Process PTO

        C-4261-41-2

	33.	San Joaquin Valley APCD	
        Process Condensate Tank PTO

        C-4261-42-2

	34.	San Joaquin Valley APCD	
        Wetcake Process PTO

        C-4261-43-2

	35.	San Joaquin Valley APCD	
        Wetcake Loadout PTO

        C-4261-44-0

	36.	San Joaquin Valley APCD	
        Ethanol day tank #1 PTO

        C-4261-45-1

	37.	San Joaquin Valley APCD	
        Ethanol day tank #2 PTO

        C-4261-46-1

	38.	San Joaquin Valley APCD	
        Final storage tank #1 PTO

        C-4261-47-1

	39.	San Joaquin Valley APCD	
        E85 or Offspec tank PTO

        C-4261-48-1

	40.	San Joaquin Valley APCD	
        Ethanol Loading Rack PTO

        C-4261-49-3

	41.	San Joaquin Valley APCD	
        Dormant Emission Unit PTO (loading rack)

        C-4261-49-4

 

SCHEDULE 5.11(i)

    	3

    	 

    

 

	42.	San Joaquin Valley APCD	
        Boiler #1 PTO

        C-4261-50-0

	43.	San Joaquin Valley APCD	
        Boiler #2 PTO

        C-4261-51-0

	44.	San Joaquin Valley APCD	
        Emergency fire water pump PTO

        C-4261-53-0

	45.	San Joaquin Valley APCD	
        Cooling tower PTO

        C-4261-54-0

	46.	San Joaquin Valley APCD	
        Denaturant tank (authority to construct)

        C-4261-55-0

	47.	San Joaquin Valley APCD	
        Final storage tank #2 (authority to construct)

        C-4261-56-0

	48.	San Joaquin Valley APCD	
        Ethanol Hammermill #3 PTO

        C-4261-57-0

	49.	San Joaquin Valley APCD	
        Lime silo (authority to construct)

        C-4261-58-0

	50.	State of California Department of Food and Agriculture	
        Commercial Feed License

        15625

	51.	US Environmental Protection Agency	
        Renewable Fuel Standard Program

        Company ID: 3697

        (New permit number assigned to Pacific Holdings.

        Also applies to Madera)

        Facility ID: 70061

	Pacific Ethanol Magic Valley, LLC
	 	Name of Counterparty	Title
	1.	—	Amended and Restated Limited Liability Company Operating Agreement of Pacific Ethanol Magic Valley, LLC
	2.	American Railcar Leasing LLC	Master Service Contract
	3.	American Railcar Leasing LLC	Rider to Master Service Contract
	4.	City of Burley	Municipal Water and Sewer Services Contract
	5.	City of Burley	
        Wastewater permit

        2008-01

	6.	City of Burley	Wastewater permit addendum #1 
 2008-01-1

 

SCHEDULE 5.11(i)

    	4

    	 

    

 

	7.	Delta-T Corporation	Engineering, Procurement and Technology License Agreement for Plant No. 5
	8.	Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau	
        Alcohol Fuel Producers Permit

        AFP-ID-15010

	9.	Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau	
        Distilled Spirits Bond

        (Surety: International Fidelity Insurance Company)

        Bond No.: 0427981

	10.	Fred Vance & Associates LLC	Letter Agreement for Real and Business Personal Property Tax Consulting
	11.	Idaho Department of Environmental Quality	Air Quality Permit to Construct P-2009.0124
	12.	Idaho State Department of Agriculture Bureau of Weight and Measures	Device License (1 scale 1160-7500 lb, 2 scales 100,000 or more lbs and 2 petroleum meters > 150 gpm) H0331108--2010-1
	13.	Intermountain Gas Company	Intermountain Gas Company T-4 Natural Gas Service Contract
	14.	IRS	Producer of alcohol 05-CA-2008-005483-AF
	15.	J.D. Heiskell Holdings, LLC	Grain Storage Agreement
	16.	J.D. Heiskell Holdings, LLC and WestLB AG, New York Branch	
        Consent and Agreement

        (re: Pre-petition Credit Agreement)

	17.	J.D. Heiskell Holdings, LLC and WestLB AG, New York Branch	Consent and Agreement (re: DIP Credit Agreement)
	18.	J.D. Heiskell Holdings, LLC and WestLB AG, New York Branch	Consent and Agreement (re: Agreement)
	19.	
        Pacific Ethanol Imperial,

        LLC and

        13 Tons, LLC
	* Equipment Lease Agreement
	20.	Pacific Ethanol, Inc.	*Assignment and Assumption Agreement (re: Delta-T)
	21.	Pacific Holding, Boardman, Madera, Stockton, and Pacific Ethanol	*Asset Management Agreement
	22.	Pacific Holding, Boardman, Madera, Stockton, and Pacific Ethanol	*Asset Management Agreement Consent

 

SCHEDULE 5.11(i)

    	5

    	 

    

 

	23.	Pacific Ag. Products, LLC	*Corn Procurement and Handling Agreement (Burley)
	24.	Pacific Ag. Products, LLC	*Corn Procurement and Handling Agreement Consent (Burley)
	25.	Kinergy Marketing LLC	* Ethanol Marketing Agreement (Burley)
	26.	Kinergy Marketing LLC	*Ethanol Marketing Agreement Consent (Burley)
	27.	Pacific Ag. Products, LLC	*Distillers Grains Marketing Agreement (Burley)
	28.	Pacific Ag. Products, LLC	*Distillers Grains Marketing Agreement Consent (Burley)
	29.	PPM Energy, Inc. (a.k.a. Iberdrola Renewables)	Base Contract for Sale and Purchase of Natural Gas
	30.	PPM Energy, Inc. (a.k.a. Iberdrola Renewables)	Special Provisions to the NAESB Base Contract for Sale and Purchase of Natural Gas
	31.	SimplexGrinnell LP	Inspection Plus Proposal, Service Agreement and Modifications
	32.	State of Idaho Department of Agriculture	
        Commercial Feed Registration

        Company Number 10075 Certificate Number 11104

	33.	State of Idaho Motor Fuel Division	
        Motor Fuel Distributor License

        (Application pending. Not required until July 1,

        2010.)

	34.	State of Idaho Tax Policy Dept	Terminal License
	35.	United Electric Co-op, Inc.	Right of Way and Access Easement
	36.	US Environmental Protection Agency	
        Industrial Stormwater Discharge

        IDR05C066

	37.	US Environmental Protection Agency	
        Renewable Fuel Standard Program

        Company ID: 3697

        (New permit number assigned to Pacific Holdings.

        Also applies to Burley.)

        Facility ID: 70291

	Pacific Ethanol Columbia, LLC
	 	Name of Counterparty	Title
	1.	—	Second Amended and Restated Limited Liability Company Agreement of Pacific Ethanol Columbia, LLC
	2.	Delta-T Corporation	Engineering, Procurement and Technology License Agreement

 

SCHEDULE 5.11(i)

    	6

    	 

    

 

	3.	Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau	
        Alcohol Fuel Producers Permit

        AFP-OR-15020

	4.	Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau	
        Distilled Spirits Bond

        (Surety: International Fidelity Insurance Company)

        Bond No.: 0427965

	5.	Fred Vance & Associates LLC	Letter Agreement for Real and Business Personal Property Tax Consulting
	6.	IRS	
        Producer of alcohol

        05-CA-2007-004456-AF

	7.	Morrow County, Oregon	Enterprise Zone Abatement Agreement
	8.	Oregon Department of Agriculture	
        Commercial Feed Registration

        AG-R0184937FEED

	9.	Oregon Department of Environmental Quality	
        Air Contaminant Discharge Permit

        25-0006

	10.	Oregon Department of Environmental Quality	
        Industrial Storm water Discharge

        1200-Z

	11.	Oregon Energy Facility Siting Council	Energy Facility Site Certificate
	12.	
        Pacific Ethanol Imperial,

        LLC and

        13 Tons, LLC
	*Equipment Lease Agreement
	13.	Pacific Holding, Burley, Madera, Stockton, and Pacific Ethanol	*Asset Management Agreement
	14.	Pacific Holding, Burley, Madera, Stockton, and Pacific Ethanol	*Asset Management Agreement Consent
	15.	Pacific Ag. Products, LLC	*Corn Procurement and Handling Agreement (Boardman)
	16.	Pacific Ag. Products, LLC	*Corn Procurement and Handling Agreement Consent (Boardman)
	17.	Kinergy Marketing LLC	*Ethanol Marketing Agreement (Boardman)
	18.	Kinergy Marketing LLC	*Ethanol Marketing Agreement Consent (Boardman)
	19.	Pacific Ag. Products, LLC	*Distillers Grains Marketing Agreement (Boardman)
	20.	Pacific Ag. Products, LLC	*Distillers Grains Marketing Agreement Consent (Boardman)

 

SCHEDULE 5.11(i)

    	7

    	 

    

 

	21.	Harris Feeding Company	Grain Storage Agreement
	22.	Harris Feeding Company	Grain Storage Agreement Consent
	23.	Port of Morrow	Easement for Roadway Purposes
	24.	Port of Morrow	Pipeline Easement Agreement
	25.	Port of Morrow	Port of Morrow Lease
	26.	PPM Energy, Inc. (a.k.a. Iberdrola Renewables)	Base Contract for Sale and Purchase of Natural Gas
	27.	State of Oregon acting through the Oregon Department of Energy	Agreement
	28.	Tidewater Barge Lines, Inc. and Tidewater Terminal, Co.	Environmental Services Agreement
	29.	Tidewater Barge Lines, Inc. and Tidewater Terminal, Co.	Amended and Restated Transportation and Dock Services Agreement
	30.	Tidewater Barge Lines, Inc., Tidewater Terminal, Co., and U.S. Bank National Association	Deposit Escrow Agreement
	31.	Umatilla Electric Cooperative	Agreement for Electric Service and Purchase of Power
	32.	Union Pacific Railroad Company and Port of Morrow	Agreement and Consent to Joint Use of Track
	33.	US Environmental Protection Agency	
        Renewable Fuel Standard Program

        Company ID: 3697

        (New permit number assigned to Pacific Holdings.

        Also applies to Boardman)

        Facility ID: 70060

	Pacific Ethanol Stockton LLC
	 	Name of Counterparty	Title
	1.	—	Third Amended and Restated Limited Liability Company Operating Agreement of Pacific Ethanol Stockton LLC
	2.	California Department of Food and Agriculture Division of Measurement Standards	Weighmaster License 12403
	 	 	 	 

SCHEDULE 5.11(i)

    	8

    	 

    

 

	3.	California State Board of Equalization	Seller’s Permit SR KH 101-125910
	4.	City of Stockton	Waste water discharge
	5.	Delta-T Corporation	Engineering, Procurement and Technology License Agreement for Plant No. 3
	6.	Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau	Alcohol Fuel Producers Permit AFP-CA-15084
	7.	Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau	
        Distilled Spirits Bond

        (Surety: Great American Insurance Company)

        Bond No.: 5616288

	8.	Fred Vance & Associates LLC	Letter Agreement for Real and Business Personal Property Tax Consulting
	9.	H.J. Heinz Company, L.P.	Sewer Capacity Credits Purchase Agreement
	10.	Iberdrola Renewables, Inc.	Base Contract for Sale and Purchase of Natural Gas
	11.	IRS	Producer of alcohol 05-CA-2008-006579-AF
	12.	
        Pacific Ethanol Imperial,

        LLC and

        13 Tons, LLC
	*Equipment Lease Agreement
	13.	Pacific Ethanol, Inc.	*Assignment and Assumption Agreement (re: Delta-T)
	14.	Pacific Holding, Boardman, Burley, Madera, and Pacific Ethanol	*Asset Management Agreement
	15.	Pacific Holding, Boardman, Burley, Madera, and Pacific Ethanol	*Asset Management Agreement Consent
	16.	Port of Stockton	First Addendum to Lease (Ordinance No. 218)
	17.	Port of Stockton	Lease by the Stockton Port District to Pacific Ethanol Stockton LLC (Ordinance No. 218)
	18.	Port of Stockton	Letter Agreement (Grading)
	19.	Port of Stockton	Memorandum of Lease
	20.	Port of Stockton	Pipeline Easement Agreement for Term
	21.	Port of Stockton	Rail and Access Easement Agreement and Reservation for Term
	22.	Regional Water Quality Control Board	Industrial Stormwater Discharge 5F39I021746

 

SCHEDULE 5.11(i)

    	9

    	 

    

 

	23.	San Joaquin County Division of Weights and Measures	
        Scales

        By Location: 3028 Navy Drive, Stockton, CA 95206

	24.	San Joaquin Valley APCD	
        Air Permit to Operate (PTO)

        N-7365

	25.	San Joaquin Valley APCD	Grain Receiving PTO N-7365-1-1
	26.	San Joaquin Valley APCD	
        Ethanol Hammermill #1 PTO

        N-7365-2-1

	27.	San Joaquin Valley APCD	
        Ethanol Hammermill #2 PTO

        N-7365-3-1

	28.	San Joaquin Valley APCD	
        Slurry Tank PTO

        N-7365-4-1

	29.	San Joaquin Valley APCD	
        Yeast Prop Tank PTO

        N-7365-5-1

	30.	San Joaquin Valley APCD	
        Dormant Emission Unit PTO (Yeast tank)

        N-7365-5-3

	31.	San Joaquin Valley APCD	
        Liquefaction Tank PTO

        N-7365-6-1

	32.	San Joaquin Valley APCD	
        Fermentation Tanks PTO

        N-7365-7-1

	33.	San Joaquin Valley APCD	
        Beerwell PTO

        N-7365-8-1

	34.	San Joaquin Valley APCD	
        Distillation Process PTO

        N-7365-9-1

	35.	San Joaquin Valley APCD	
        Process Condensate Tank PTO

        N-7365-10-1

	36.	San Joaquin Valley APCD	
        Wetcake Process PTO

        N-7365-11-1

	37.	San Joaquin Valley APCD	
        Wetcake Loadout PTO

        N-7365-12-1

	38.	San Joaquin Valley APCD	
        Offspec tank PTO

        N-7365-13-0

	39.	San Joaquin Valley APCD	
        Ethanol day tank #1 PTO

        N-7365-14-0

	40.	San Joaquin Valley APCD	
        Ethanol day tank #2 PTO

        N-7365-15-0

	41.	San Joaquin Valley APCD	
        Final storage tank #1 PTO

        N-7365-16-0

	42.	San Joaquin Valley APCD	
        Final storage tank #2

        N-7365-17-0

	 	 	 	 

SCHEDULE 5.11(i)

    	10

    	 

    

 

	43.	San Joaquin Valley APCD	
        Ethanol Loading Rack PTO

        N-7365-19-1

	44.	San Joaquin Valley APCD	
        Dormant Emission Unit PTO (loading rack)

        N-7365-19-2

	45.	San Joaquin Valley APCD	
        Boiler #1 PTO

        N-7365-20-1

	46.	San Joaquin Valley APCD	
        Dormant Emission Unit PTO (Boiler #1)

        N-7365-20-2

	47.	San Joaquin Valley APCD	
        Boiler #2 PTO

        N-7365-21-1

	48.	San Joaquin Valley APCD	
        Dormant Emission Unit PTO (Boiler #2)

        N-7365-21-2

	49.	San Joaquin Valley APCD	
        Boiler #3 PTO

        N-7365-22-1

	50.	San Joaquin Valley APCD	
        Dormant Emission Unit PTO (Boiler #3)

        N-7365-22-2

	51.	San Joaquin Valley APCD	
        Cooling tower PTO

        N-7365-23-1

	52.	San Joaquin Valley APCD	
        Emergency fire water pump #1

        N-7365-29-0

	53.	San Joaquin Valley APCD	
        Emergency fire water pump #2

        N-7365-30-0

	54.	San Joaquin Valley APCD	
        Denaturant tank (authority to construct)

        N-7365-31-0

	55.	State of California Department of Food and Agriculture	Commercial Feed License 15625-1
	56.	US Environmental Protection Agency	
        Renewable Fuel Standard Program

        Company ID: 3697

        (New permit number assigned to Pacific Holdings.

        Also applies to Stockton)

        Facility ID: 70319

 

SCHEDULE 5.11(i)

    	11

    	 

    

 

 

 

 

Schedule 5.11(ii)

to Credit Agreement

CONTRACTS

 

As of Closing Date

 

	Counterparty(ies)	PE Contracting Entity	Document Type	Subject Matter / Notes	Title	Date of Execution
	Wells Fargo Bank, N.A., et al	PEHC = Pacific Ethanol Holding Co. LLC (DE)	Corporate Agreement	First Amendment to the Amended and Restated Credit Agreement.	First Amendment to Amended and Restated Credit Agreement	7/13/2012
	International Fidelity Insurance Company	PEHC = Pacific Ethanol Holding Co. LLC (DE)	Escrow Agreement	This agreement is signed solely on behalf of the Boardman plant regarding a bond and cash collateral in the amount of $863,200.00.	Cash Collateral Escrow Agreement	6/13/2012
	Kinergy Marketing, LLC	PEHC = Pacific Ethanol Holding Co. LLC (DE)	Liquidity Agreement	In order to enhance the liquidity available to the plants (Stockton, Columbia and Magic Valley), PAP and Kinergy have offered to make papyments in advance of the dates they are due under their respective Marketing Agreements and Pacific Ethanol Holding Co will receive such accelerated payments in an aggregate amount of approximately $3 million.	Liquidity Agreement	6/7/2012
	Wells Fargo Bank, N.A., et al	PEHC = Pacific Ethanol Holding Co. LLC (DE)	Corporate Agreement	Amends the original Credit Agreement regarding Tranche A-1 Term Loans.	Amended and Restated Credit Agreement	8/1/2011

 

SCHEDULE 5.11(ii)

    	12

    	 

    

 

	International Fidelity Insurance Company	PEHC = Pacific Ethanol Holding Co. LLC (DE)	Indemnity Agreement	This general indemnity agreement is made and entered into by Pacific Ethanol Holding Co., LLC; any other entitiy or individual for whom Pacific Ethanol Holding Co., LLC requests a bond or bonds, and New PE Holdco, LLC, and International Fidelity Insurance Company and Allegheny Casualty Company.	Agreement of Indemnity - Commercial Bond (II)	5/18/2011
	WestLB AG, New York Branch, et al	PEHC = Pacific Ethanol Holding Co. LLC (DE)	Finance Agreement	Second Amendment to the original Credit Agreement dated June 25, 2010 and the Amendment to Credit Agreement dated October 15, 2010.  This amendment deletes and replaces certain articles in the original Credit Agreement.	Second Amendment to Credit Agreement	3/30/2011
	WestLB AG, New York Branch, et al	PEHC = Pacific Ethanol Holding Co. LLC (DE)	Finance Agreement	Amendment to Credit Agreement dated June 25, 2010.	Amendment to Credit Agreement	10/15/2010
	WestLB AG, New York Branch, et al	PEHC = Pacific Ethanol Holding Co. LLC (DE)	Finance Agreement	Credit
    Agreement where Lenders are willing to make the Exit Facility available to the Borrowers subject to certain terms and
    conditions. All exhibits and schedules are attached.	Credit Agreement	6/25/2010
	California Alternative Energy and Advanced Transportation Financing Authority	PEM = Pacific Ethanol Madera LLC (DE)	Finance Agreement	The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) will provide financial assistance to PEM for advanced transportation and alternative fuels technologies.	Financial Assistance Agreement	40660
	 	 	 	 	 	 	 

 

 

SCHEDULE 5.11(ii)

    	13

    	 

    

 

	California Energy Commission	PEM = Pacific Ethanol Madera LLC (DE)	Grant Agreement	Alternative & Renewable Fuel & Vehicle Tech-AB 118 (FY 09/10 BCP#2)	Grant Award Number:  ARV-10-029	40592	 
	ICM, Inc.	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Consent and Waiver	Consent and waiver by Wells Fargo Bank to ICM, Inc.'s Purchase Money Security Interest (PMSI) in ICM equipment and in certain proceeds from PEMV's sale of corn oil produced using the ICM equipment at PEMV.	Consent and Waiver	6/21/2012
	ICM, Inc.	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Purchase Agreement	PEMV to purchase from ICM certain equipment known as the AOS (Advanced Oil System) with patent-pending Selected Solids Separation (SSS) specified in the Plans and Specifications on Exhibit A of this Agreement.  ICM shall install the Equipment at the Burley plant (per Exhibit B).	Advanced Oil System with Patent-Pending Selected Solids Separation Purchase and Installation Agreement	6/20/2012
	ICM, Inc.	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	License Agreement	ICM grants to PEMV limited right and license to use the proprietary property for the separation of corn oil from the emulsion concentrate derived from the thin stillage solely at the PEMV plant.	License Agreement	6/20/2012
	Intermountain Gas Company	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Commodity Agreement	Natural gas contract for a Maximum Daily Firm Quantity (MDFQ) of 50,000 therms per day during the Agreement period.  (See Record No. 743 for previous agreement.)	T-4 Firm Distribution Only Transportation Service	12/29/2011
	 	 	 	 	 	 	 	 	 	 

SCHEDULE 5.11(ii)

    	14

    	 

    

 

	J.D. Heiskell Holdings, LLC	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Amendment	Second amendment to the grain storage agreement.  NOTE:  Amendment originally drafted dated 11/17/11 but then extended to 12/10/11. 	Amendment No. 2 to Grain Storage Agreement	12/10/2011
	J.D. Heiskell Holdings, LLC	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Guarantee Agreement	This Guaranty is signed in conjunction with the Second amendment to the grain storage agreement (see Record No. 1908).	Guaranty of PEMV Obligations to Heiskell	11/2/2011
	Kinergy Marketing, LLC	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Services Agreement	Kinergy to provide marketing services for denatured fuel ethanol production at the Magic Valley facility	Amended and Restated Ethanol Marketing Agreement (Burley Project)	6/30/2011
	Pacific Ag. Products, LLC	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Services Agreement	This amended and restated agreement will allow PAP to provide marketing services for Distillers Grains from the denatured fuel ethanol production facilities at Magic Valley.	Amended and Restated Distillers Grains Marketing Agreement (Burley Project)	6/30/2011
	Pacific Ag. Products, LLC	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Commodity Agreement	This amended and restated agreement will allow PAP to provide procurement and handling of grain services for the denatured fuel ethanol production facility at Burley, Idaho.	Amended and Restated Corn Procurement and Handling Agreement	6/30/2011
	American Railcar Leasing LLC	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Services Agreement	Contract #MSC 4-8875, Rider 1 dated December 7, 2009 is renewed for an additional period of six (6) months at a rental rate of $725 per car per month, commencing July 1, 2011.  (This renewal agreement replaces Record #1730, which commenced on January 1, 2011 and expired June 30, 2011.)	Renewal of Car Service Contract No. MSC 4-8875, Rider 1	6/22/2011

 

SCHEDULE 5.11(ii)

    	15

    	 

    

 

	American Railcar Leasing LLC	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Services Agreement	Contract #MSC 4-8875, Rider 1 dated December 7, 2009 is renewed for an additional period of six (6) months at a rental rate of $425 per car per month, commencing January 1, 2011.  (This renewal agreement replaces Record #1713, which commenced on July 1, 2010 and expired December 31, 2010.)	Renewal of Car Service Contract No. MSC 4-8875, Rider 1	12/16/2010
	J.D. Heiskell Holdings, LLC	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Amendment	First amendment to the grain storage agreement regarding prepayment by PEMV.	Amendment No. 1 to Grain Storage Agreement	12/10/2010
	American Railcar Leasing LLC	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Services Agreement	Contract #MSC 4-8875, Rider 1 dated December 7, 2009 is renewed for an additional period of six (6) months at a rental rate of $425 per car per month.  (See also Record #1546 for Rider 1.)	Renewal of Car Service Contract	9/14/2010
	Kinergy Marketing, LLC	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Services Agreement	Kinergy to provide marketing services for denatured fuel ethanol.	Ethanol Marketing Agreement (Burley Project)	6/29/2010
	Pacific Ag. Products, LLC	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Commodity Agreement	PAP to provide grain services.	Corn Procurement and Handling Agreement	6/29/2010
	Pacific Ag. Products, LLC	PEMV = Pacific Ethanol Magic Valley, LLC (DE)	Services Agreement	PAP to provide marketing services.	Distillers Grains Marketing Agreement (Burley Project)	6/29/2010

 

SCHEDULE 5.11(ii)

    	16

    	 

    

 

	International Fidelity Insurance Company	PECOL = Pacific Ethanol Columbia, LLC (DE)	Bond	PECOL (the Principal) and International Fidelity Insurance Company (the Surety) are held and firmly bound unto the State of Oregon, acting by and through the Energy Facility Siting Council (the Obligee) in the penal sum of $863,200.00 (Bond No. 0590288) for the Boardman plant.	Site Certificate Bond No. 0590288	6/14/2012
	Mascoma Corporation	PECOL = Pacific Ethanol Columbia, LLC (DE)	Services Agreement	Mascoma has engaged Lallemand to manufacture, market and distribute its Mascoma Grain Technology yeast product at the Columbia facility.	Supply and Service Agreement	3/9/2012
	CHS, Inc.	PECOL = Pacific Ethanol Columbia, LLC (DE)	Consent and Agreement	CHS, Inc. consents to the assignment to Wells Fargo Bank, N.A., of all of the Borrower's right, title and interest in, to and under the Assigned Agreement pursuant to the Security Agreement.	Consent and Agreement	2/24/2012
	CHS, Inc.	PECOL = Pacific Ethanol Columbia, LLC (DE)	Storage Agreement	CHS to store and maintain corn (grain) at the grain handling and storage facility located at the PECOL ethanol facility located in the Port of Boardman, Oregon.  CHS also agrees to sell grain to PECOL.	Grain Supply Agreement	2/24/2012
	Tidewater Terminal Co.	PECOL = Pacific Ethanol Columbia, LLC (DE)	Requisition	This requisition represents a request for disbursement of funds in the amount of $150,000.00 pursuant to Schedule II of the Deposit Escrow Agreement, dated September 1, 2009.	Requisition of Request for Disbursement of Funds	9/9/2011
	WestLB AG, New York Branch, et al	PECOL = Pacific Ethanol Columbia, LLC (DE)	Amendment	This Amendment No. 2 to Irrevocable Standby Letter of Credit No. 22703101566WLB increases the amount of the LOC by US $8,848.00 to US $844,320.00.	Amendment No. 2 to Irrevocable Standby Letter of Credit No. 22703101566WLB	8/12/2011

 

SCHEDULE 5.11(ii)

    	17

    	 

    

 

	Pacific Ag. Products, LLC	PECOL = Pacific Ethanol Columbia, LLC (DE)	Commodity Agreement	PAP to provide grain services for denatured fuel ethanol production facilities.	Amended and Restated Corn Procurement and Handling Agreement	6/30/2011
	Pacific Ag. Products, LLC	PECOL = Pacific Ethanol Columbia, LLC (DE)	Amendment	This is the first amendment to the Distillers Grains Marketing Agreement for the Boardman plant.	Amended and Restated Distillers Grains Marketing Agreement (Boardman Project)	6/30/2011
	Kinergy Marketing, LLC	PECOL = Pacific Ethanol Columbia, LLC (DE)	Amendment	First amendment to the Ethanol Marketing Agreement for the Boardman plant.	Amended and Restated Ethanol Marketing Agreement (Boardman Project)	6/30/2011
	WestLB AG, New York Branch, et al	PECOL = Pacific Ethanol Columbia, LLC (DE)	Amendment	Irrevocable Standby Letter of Credit No. 22703101566WLB extending the LOC validity to June 25, 2012.	Amendment No. 1 to Irrevocable Standby Letter of Credit No. 22703101566WLB	6/22/2011
	Tidewater Barge Lines, Inc.	PECOL = Pacific Ethanol Columbia, LLC (DE)	Rate Schedule	Local rates, rules and regulations governing the transportation of bulk fertilizer and petroleum products via barge.  (Signatures not required.)  See also Exhibit Attachment 1 for letter dated March 1, 2011 of announcement of rate increase.	Rate Schedule No. 800-A	3/14/2011
	Tidewater Terminal Co.	PECOL = Pacific Ethanol Columbia, LLC (DE)	Amendment	This is an amendment and restatement of the Transportation and Dock Services Agreement dated September 1, 2009.  Tidewater waives the Dock Fee due and owing from PE Columbia on January 1, February 1, and March 1, 2011.  PE Columbia will resume paying the Dock Fee on or before April 1, 2011.	Amended and Restated Transportation and Dock Services Agreement	3/7/2011

 

SCHEDULE 5.11(ii)

    	18

    	 

    

 

	Tidewater Terminal Co.	PECOL = Pacific Ethanol Columbia, LLC (DE)	Amendment	This amendment to the Deposit Escrow Agreement (dated February 15, 2007) names John T. MIller as the sole officer entitled to sign or give instructions to the bank on behalf of PECOL.	Amendment to Deposit Escrow Agreement	9/14/2010
	Tidewater Terminal Co.	PECOL = Pacific Ethanol Columbia, LLC (DE)	Requisition	This requisition represents a request for disbursement of funds in the amount of $150,000.00 pursuant to Schedule II of the Deposit Escrow Agreement, dated September 1, 2009.	Requisition of Request for Disbursement of Funds	9/8/2010
	Kinergy Marketing, LLC	PECOL = Pacific Ethanol Columbia, LLC (DE)	Services Agreement	Kinergy to provide marketing services for denatured fuel ethanol.	Ethanol Marketing Agreement (Boardman Project)	6/29/2010
	Pacific Ag. Products, LLC	PECOL = Pacific Ethanol Columbia, LLC (DE)	Commodity Agreement	PAP to provide grain services.	Corn Procurement and Handling Agreement	6/29/2010
	Pacific Ag. Products, LLC	PECOL = Pacific Ethanol Columbia, LLC (DE)	Services Agreement	PAP to provide marketing services for Distillers Grains from the denatured fuel ethanol production facilities at the Boardman plant.	Distillers Grains Marketing Agreement (Boardman Project)	6/29/2010
	WestLB AG, New York Branch, et al	PECOL = Pacific Ethanol Columbia, LLC (DE)	Finance Agreement	Irrevocable Standby Letter of Credit No. 22703101566WLB in the amount of $835,472 in connection with the Site Certificate for the Columbia Ethanol Project, in favor of the State of Oregon, acting by and through The Energy Facility Siting Council, Oregon Department of Energy.	Irrevocable Standby Letter of Credit No. 22703101566WLB	6/28/2010

 

SCHEDULE 5.11(ii)

    	19

    	 

    

 

	J.D. Heiskell Holdings, LLC	PES = Pacific Ethanol Stockton, LLC (DE)	Storage Agreement	First amendment to the grain storage agreement.  NOTE:  Amendment originally drafted dated 11/17/11 but then extended to 12/10.11.	Amendment No. 1 to Grain Storage Agreement	12/10/2011
	J.D. Heiskell Holdings, LLC	PES = Pacific Ethanol Stockton, LLC (DE)	Guarantee Agreement	This Guaranty is signed in conjunction with the First amendment to the grain storage agreement (see Record No. 1909).	Guaranty of PES Obligations to Heiskell	11/2/2011
	Pacific Ag. Products, LLC	PES = Pacific Ethanol Stockton, LLC (DE)	Services Agreement	Amended and Restated Agreement for PAP to provide grain services for the denatured fuel ethanol production facility located at Stockton, CA.	Amended and Restated Corn Procurement and Handling Agreement	6/30/2011
	Pacific Ag. Products, LLC	PES = Pacific Ethanol Stockton, LLC (DE)	Services Agreement	Amended and Restated Agreement for PAP to provide marketing services for Distillers Grains from the denatured fuel ethanol production facility in Stockton, CA.	Amended and Restated Distillers Grains Marketing Agreement (Stockton Project)	6/30/2011
	Kinergy Marketing, LLC	PES = Pacific Ethanol Stockton, LLC (DE)	Services Agreement	Kinergy to provide marketing services for denatured fuel ethanol production at the Stockton facility	Amended and Restated Ethanol Marketing Agreement (Stockton)	6/30/2011
	J.D. Heiskell Holdings, LLC	PES = Pacific Ethanol Stockton, LLC (DE)	Consent and Agreement	J.D. Heiskell consents to the assignment to WestLB AG, New York Branch, all of PES' right, title and interest in, to and under the Assigned Agreement pursuant to the Security Agreement and acknowledges the right of WestLB in the exercise of their rights and remedies under the Security Agreement.	Consent and Agreement	1/14/2011
	California Energy Commission	PES = Pacific Ethanol Stockton, LLC (DE)	Grant Agreement	Alternative & Renewable Fuel & Vehicle Tech-AB 118 (FY 09/10 BCP#2)	Grant Award Number:  ARV-10-030	12/15/2010

 

SCHEDULE 5.11(ii)

    	20

    	 

    

 

	J.D. Heiskell Holdings, LLC	PES = Pacific Ethanol Stockton, LLC (DE)	Storage Agreement	J.D. Heiskell Holdings, LLC is a California limited liability company doing business as J.D. Heiskell & Company.  Heiskell will store and maintain grain at the grain handling and storage facility located in Stockton, California in order to provide for the purchase and sale of the grain from the facility to third parties and to PES.	Grain Storage Agreement	12/10/2010
	Pacific Gas and Electric Company	PES = Pacific Ethanol Stockton, LLC (DE)	Licenses and Registration	Nomination by PES for BP Energy to be our natural gas scheduling and marketing agent with PG&E for delivery of natural gas to the Stockton plant.  (NOTE:  This replaces Record #1246.)	Authorization to Revise Nominating Marketer on Exhibits C and D of Form 79-756 - Natural Gas Service Agreement	11/18/2010
	Pacific Gas and Electric Company	PES = Pacific Ethanol Stockton, LLC (DE)	Licenses and Registration	Nomination by PES for BP Energy to be our balancing agent with PG&E.  Note that the document labelled "Exhibit B" (last page of this 3-page document) terminates Iberdrola, the former balancing agent, as of November 30, 2010.  See also Record #1711 for the nomination of BP to be our natural gas scheduling and marketing agent with PG&E.	Customer Balancing Agent Service Authorization	11/17/2010
	BP Energy Company	PES = Pacific Ethanol Stockton, LLC (DE)	Confirmation	This Transaction Confirmation #6929691 confirms the terms of the transaction between the parties and is subject to the terms and conditions of the Base Contract dated 11/01/2010.	Physical Gas Transaction Confirmation for Immediate Delivery - BP (NUCLEUS) ID:5542938	11/15/2010

 

SCHEDULE 5.11(ii)

    	21

    	 

    

 

	Pacific Ag. Products, LLC	PES = Pacific Ethanol Stockton, LLC (DE)	Services Agreement	PAP to provide services for Distillers Grains from denatured fuel ethanol production facilities.	Distillers Grains Marketing Agreement (Stockton Project)	10/15/2010
	Pacific Ag. Products, LLC	PES = Pacific Ethanol Stockton, LLC (DE)	Services Agreement	PAP to provide grain services for denatured fuel ethanol production facilities.	Corn Procurement and Handling Agreement	10/15/2010
	Pacific Ag. Products, LLC	PES = Pacific Ethanol Stockton, LLC (DE)	Consent and Agreement	Consent and agreement re: PAP Distillers Grains Marketing Agreement.	Consent and Agreement	10/15/2010
	Pacific Ag. Products, LLC	PES = Pacific Ethanol Stockton, LLC (DE)	Consent and Agreement	Consent and agreement to PAP corn agreement.	Consent and Agreement	10/15/2010

 

SCHEDULE 5.11(ii)

    	22

    	 

    

 

 

SCHEDULE 5.12

to Credit Agreement

 

UCC FILING OFFICES

 

UCC Filing Offices

 

New PE Holdco LLC

Office of the Secretary of State of the State
of Delaware

 

Pacific Ethanol Holding Co. LLC

Office of the Secretary of State of the State
of Delaware

 

Pacific Ethanol Madera LLC

Office of the Secretary of State of the State of Delaware

 

Pacific Ethanol Columbia, LLC

Office of the Secretary of State of the State of Delaware

 

Pacific Ethanol Stockton LLC

Office of the Secretary of State of the State of Delaware

 

Pacific Ethanol Magic Valley, LLC

Office of the Secretary of State of the State of Delaware

 

Mortgage Recording Offices

 

Pacific Ethanol Madera LLC

County Recorder’s Office for the County of Madera (California)

 

Pacific Ethanol Columbia, LLC

Morrow County Recorder’s Office (Oregon)

 

Pacific Ethanol Stockton LLC

County of San Joaquin Office of the Assessor-Recorder-County
Clerk (California)

 

Pacific Ethanol Magic Valley, LLC 

Cassia County Recorder’s Office (Idaho)

 

**With respect to the filings to be made in the Office of the
Secretary of State of the State of Delaware pursuant to Section 9-515 of the Uniform Commercial Code as now in effect in the
State of Delaware, the effectiveness of a filed financing statement lapses on the expiration of the date that is five years after
the date of filing, unless before the lapse a continuation statement is filed in accordance with Section 9-515(d) within the
six-month period prior to the expiration of the applicable five-year period.

 

SCHEDULE
5.12

 

    	23

    	 

    

 

 

SCHEDULE 5.13(a)

to Credit Agreement

SITE
DESCRIPTIONS

 

BOARDMAN

 

Boardman Leased Premises

 

A LEASEHOLD ESTATE, FOR THE TERM AND UPON
THE TERMS, CONDITIONS AND PROVISIONS AS CONTAINED IN THAT CERTAIN MEMORANDUM OF GROUND LEASE, INCLUDING THE TERMS AND PROVISIONS
THEREOF, BY AND BETWEEN THE PORT OF MORROW, A MUNICIPAL CORPORATION OF THE STATE OF OREGON, AS LESSOR, AND PACIFIC ETHANOL COLUMBIA,
LLC, A DELAWARE LIMITED LIABILITY COMPANY, AS LESSEE, RECORDED OCTOBER 5, 2006 AS 2006-17758, MORROW COUNTY MICROFILM RECORDS,
ON THE FOLLOWING DESCRIBED PROPERTY:

 

A PARCEL OF LAND LOCATED IN SECTION 2, TOWNSHIP
4 NORTH, RANGE 25 EAST OF THE WILLAMETTE MERIDIAN, IN THE COUNTY OF MORROW, STATE OF OREGON, DESCRIBED AS FOLLOWS:

 

BEGINNING AT A POINT ON THE NORTH RIGHT
OF WAY LINE OF CENTER LOOP DRIVE BEING NORTH 04°45’10” WEST A DISTANCE OF 1,666.80 FEET FROM THE SOUTH QUARTER
CORNER OF SECTION 2, IN TOWNSHIP 4 NORTH, RANGE 25 EWM;

 

THENCE NORTHWESTERLY ALONG THE NORTH RIGHT
OF WAY OF SAID CENTER LOOP DRIVE, ALONG A 530.26 FOOT CURVE TO THE LEFT, SAID CURVE HAVING A RADIUS OF 470.00 FEET, AN INTERNAL
ANGLE OF 64°38’29” AND A CHORD WHICH BEARS NORTH 80°21’18” WEST A DISTANCE OF 502.58 FEET;

 

THENCE CONTINUING ALONG THE NORTH RIGHT
OF WAY LINE OF CENTER LOOP DRIVE SOUTH 67°19’28” WEST A DISTANCE OF 80.00 FEET;

 

THENCE NORTH 22°40’32” WEST
A DISTANCE OF 10.00 FEET;

 

THENCE NORTHWESTERLY ALONG A 419.11 FOOT
CURVE TO THE LEFT, SAID CURVE HAVING A RADIUS OF 595.00 FEET, AN INTERNAL ANGLE OF 40°21’ 19” AND A CHORD WHICH
BEARS NORTH 42°51 ‘17” WEST A DISTANCE OF 410.50 FEET;

 

THENCE NORTH 38°56’09” EAST
A DISTANCE OF 1,258.00 FEET;

 

THENCE SOUTH 51°03’51” EAST
A DISTANCE OF 970.00 FEET;

 

SCHEDULE
5.13(a)

    	24

    	 

    

 

THENCE SOUTH 43°24’17” WEST
A DISTANCE OF 1,008.18 FEET TO THE NORTH RIGHT OF WAY LINE OF CENTER LOOP DRIVE AND THE POINT OF BEGINNING.

 

Boardman Easement Premises

 

PIPELINE EASEMENT

 

A TWENTY (20.00) FOOT WIDE EASEMENT FOR
THE ADDITION/EXPANSION OF ETHANOL AND BIO-FUELS PIPELINES TO THE TIDEWATER BIO-FUELS BARGE LOADING SITE. SAID 20.00 FOOT WIDE EASEMENT
BEING 10.00 FEET ON EACH SIDE OF A CENTER LINE THAT IS DESCRIBED AS FOLLOWS:

 

BEGINNING AT A POINT LOCATED ON THE NORTHEAST
LINE OF THE PACIFIC ETHANOL COLUMBIA, LLC LEASED LANDS AND THE SOUTHWEST RIGHT OF WAY OF DEWEY WEST LANE, SAID POINT BEING NORTH
01° 39’ 11” WEST A DISTANCE OF 2,910.70 FEET FROM THE SOUTH QUARTER CORNER OF SECTION 2, OF TOWNSHIP 4 NORTH, RANGE
25 EWM; THENCE NORTH 38° 56’ 09” EAST A DISTANCE OF 40.00 FEET TO A POINT 10.00 FEET FROM THE CENTERLINE OF DEWEY
WEST LANE; THENCE PARALLEL WITH THE CENTERLINE OF SAID DEWEY WEST LANE, NORTH 51° 03’ 51” WEST A DISTANCE OF 966.00
FEET; THENCE SOUTH 38° 56’ 09” EAST A DISTANCE OF 10.00 FEET, THENCE NORTH 50° 05’ 33” WEST A DISTANCE
OF 168.00 FEET TO A POINT LOCATED ON THE PROJECTED NORTH RIGHT OF WAY LINE OF LEWIS & CLARK DRIVE; THENCE PARALLEL TO THE CENTERLINE
AND ALONG THE SAID NORTH RIGHT OF WAY OF LEWIS & CLARK DRIVE, SOUTH 38° 56’ 09” WEST A DISTANCE OF 86.00 FEET
TO A POINT ON THE SOUTHEAST BOUNDARY OF LEASED LANDS OF TIDEWATER BARGE LINES BIO-FUELS BARGE LOADING FACILITY; THENCE NORTH 48°
02’ 43” WEST A DISTANCE OF 15.00 FEET TO THE PIPELINE MANIFOLD CONNECTION TO TIDEWATER BARGE LINES BIO-FUELS BARGE
LOADING FACILITY AND TERMINUS OF EASEMENT DESCRIPTION.

 

PIPELINE, ACCESS/EGRESS & FACILITIES
EASEMENT

 

A SIXTY (60.00) FOOT WIDE PIPELINE &
ACCESS/EGRESS EASEMENT FOR THE ADDITION/EXPANSION OF ETHANOL AND BIO-FUELS PIPELINES TO A RAIL CAR BIO-FUELS LOADING SITE IN ADDITION
TO AN EASEMENT FOR THE SITTING OF A RAIL CAR BIO-FUELS LOAD-OUT FACILITY ON AND ADJACENT TO THE PORT OF MORROW EAST BEACH RAIL
SPUR FACILITY.

 

SAID 60.00 FOOT WIDE EASEMENT BEING 30.00
FEET ON EACH SIDE OF A CENTER LINE THAT IS DESCRIBED AS FOLLOWS:

 

BEGINNING AT A POINT LOCATED ON THE NORTHEAST
LINE OF THE PACIFIC ETHANOL COLUMBIA, LLC LEASED LANDS AND THE SOUTHWEST RIGHT OF WAY OF DEWEY WEST LANE, SAID POINT BEING NORTH
01° 39’ 11” WEST A DISTANCE OF 2,910.70 FEET FROM THE SOUTH QUARTER CORNER OF SECTION 2, OF TOWNSHIP 4 NORTH, RANGE
25 EWM; THENCE NORTH 38° 56’ 09” EAST A DISTANCE OF 505.95 FEET TO A POINT 110.00 FEET FROM AND AT RIGHT ANGLES
TO THE CENTERLINE OF TRACK THREE OF THE PORT OF MORROW EAST BEACH RAIL SPUR AND TERMINUS OF PIPELINE
& ACCESS/EGRESS EASEMENT.

 

SCHEDULE
5.13(a)

    	25

    	 

    

 

SAID RAIL CAR BIO-FUELS LOAD-OUT FACILITY
EASEMENT BEING A 140.00 FEET BY 117.50 FEET TRACT OF LAND MORE PARTICULARLY DESCRIBED AS FOLLOWS:

 

BEGINNING AT THE TERMINUS OF THE ABOVE DESCRIBED
CENTERLINE OF THE PIPELINE AND ACCESS/EGRESS EASEMENT: THENCE SOUTH 56° 29’ 29” EAST, PARALLEL TO THE CENTERLINES
OF THE PORT OF MORROW EAST BEACH RAIL SPURS, A DISTANCE OF 56.94 FEET; THENCE NORTH 33° 30’ 31” EAST, AT RIGHT
ANGLES TO THE CENTERLINES OF THE PORT OF MORROW EAST BEACH RAIL SPURS, A DISTANCE OF 117.50 FEET TO A POINT 7.50 FEET OFFSET FROM
THE CENTER OF TRACK THREE OF THE PORT OF MORROW EAST BEACH RAIL SPUR; THENCE NORTH 56° 29’ 29” WEST, PARALLEL TO
THE CENTERLINES OF THE PORT OF MORROW EAST BEACH RAIL SPURS, A DISTANCE OF 140.00 FEET; THENCE SOUTH 33° 30’ 31”
WEST, AT RIGHT ANGLES TO THE CENTERLINES OF THE PORT OF MORROW EAST BEACH RAIL SPURS, A DISTANCE OF 117.50 FEET; THENCE SOUTH 56°
29’ 29” EAST, PARALLEL TO THE CENTERLINES OF THE PORT OF MORROW EAST BEACH RAIL SPURS, A DISTANCE OF 83.06 FEET AND
THE POINT OF BEGINNING OF THE RAIL CAR BIO-FUELS LOAD-OUT FACILITY EASEMENT.

 

BURLEY

 

PARCEL NO. 1:

 

TOWNSHIP 10 SOUTH, RANGE 22 EAST OF THE
BOISE MERIDIAN, CASSIA COUNTY, IDAHO.

 

Section 25: That part of the SW1⁄4
SW1⁄4 lying South of the “G” Canal.

 

PARCEL NO. 2:

 

TOWNSHIP 10 SOUTH, RANGE 22 EAST OF THE
BOISE MERIDIAN, CASSIA COUNTY, IDAHO.

 

Section 25: That part of the SE1⁄4
SW1⁄4 lying South of the “G” Canal.

 

PARCEL NO. 3:

 

TOWNSHIP 10 SOUTH, RANGE 22 EAST OF THE
BOISE MERIDIAN, CASSIA COUNTY, IDAHO.

 

Section 25: That part of the SW1⁄4
SE1⁄4 lying South of the “G” Canal.

 

PARCEL NO. 4:

 

SCHEDULE
5.13(a)

 

    	26

    	 

    

 

TOWNSHIP 10 SOUTH, RANGE 22 EAST OF THE
BOISE MERIDIAN, CASSIA COUNTY, IDAHO.

 

Section 25: SE1⁄4 SE1⁄4 EXCEPTING
the railroad right-of-way and EXCEPTING the following described tracts:

 

Tract No. 1:

 

That part of said SE1⁄4
SE1⁄4 lying South and East of the railroad right-of-way as deeded to the United States of
America by Warranty Deed recorded March 29, 1950 as Instrument No. 168821 in Book 54 of Deeds, page 158, records of Cassia County,
Idaho.

 

Tract No. 2:

 

Commencing at the Southeast corner of said
Section 25, marked by an aluminum cap on a 5/8 rebar and running thence along the South line thereof South 89°29’41”
West 598.21 feet; Thence North 0°30’19” West 144.76 feet to the True Point of Beginning;

 

Thence continuing North 0°30’19”
West 189.80 feet;

 

Thence North 89°29’41” East
400.46 feet;

 

Thence continuing South 0°30’19”
East 102.13 feet;

 

Thence continuing South 52°21’15”
West 55.21 feet;

 

Thence continuing South 62°40’38”
West 120.42 feet;

 

Thence continuing South 89°29’41”
West 248.97 feet to the True Point of Beginning.

 

SAVE AND EXCEPT, that portion from
Parcel Nos. 1 through 4, more particularly described in the Deed of Dedication, by and between Pacific Ethanol Magic Valley LLC,
Grantor, to the City of Burley, dated August 28, 2008 and recorded September 17, 2008 as Instrument No. 2008-005248, records of
Cassia County, Idaho.

 

PARCEL NO. 5:

 

TOWNSHIP 10 SOUTH, RANGE 22 EAST OF THE
BOISE MERIDIAN, CASSIA COUNTY, IDAHO.

 

Section 25: That part of the NE1⁄4
SE1⁄4 lying South of the “G” Canal.

 

PARCEL NO. 6:

 

TOWNSHIP 10 SOUTH, RANGE 22 EAST OF THE
BOISE MERIDIAN, CASSIA COUNTY, IDAHO.

 

Section 25: That part of the NW1⁄4
SE1⁄4 lying South of the “G” Canal.

 

SCHEDULE
5.13(a)

    	27

    	 

    

 

MADERA

 

The land referred to in this Deed of Trust
is situated in the State of California, County of Madera, and described as follows:

 

PARCEL A:

 

A parcel of land lying in the North 1⁄2
of Section 2, Township 12 South, Range 18 East, Mount Diablo Base and Meridian according to the official plat thereof, being
also a portion of Parcel 1 of Parcel Map No. 1121, recorded in Book 23 of Maps Page 11, Madera County records, more particularly
described as follows:

 

BEGINNING at the Southwest corner
of said Parcel 1; thence North 00°31’16” East along the West line of said Parcel 1 a distance of 2,412.82 feet
to the Northwest corner of said Parcel 1; thence South 89°16’26” East along the North line of said Parcel 1 a distance
of 874.08 feet to a point on the Southwesterly line of the Atcheson Topeka and Santa Fe Railroad Company’s right-of-way;
thence South 35°19’16” East along said railroad right-of-way line a distance of 2,457.39 feet; thence South 89°55’38”
West and parallel with the South line of said Parcel 1 a distance of 855.09 feet; thence South 00°27’17” West a
distance of 393.68 feet to a point on the South line of said Parcel 1, said point being also the Northwest corner of Parcel 1 of
Parcel Map No. 2031, recorded in Book 27 of Maps, Page 140, Madera County Records; thence South 89°55’38” West
along the South line of Parcel 1 of said Parcel Map No. 1121 a distance of 643.46 feet to the center of said Section 2; thence
continuing South 89°55’38” West along the South line of last said Parcel 1 a distance of 815.04 to the point of
beginning.

 

APN: 047-130-020 (portion of)

 

PARCEL B:

 

A parcel of land in Section 2, Township
12 South, Range 18 East, Mount Diablo Base and Meridian according to the official plat thereof, more particularly described as
follows:

 

BEGINNING at the Northwest corner
of Parcel 1 of Parcel Map No. 2031, according to the map thereof recorded in Book 27 Page 140 of Maps, Madera County Records; thence
South 89°55’38” West along the Northerly boundary line of Parcel 2 of Parcel Map No. 2031 a distance of 643.46
feet to the center of said Section 2; thence continuing South 89°55’38” West a distance of 815.04 feet; thence
South 00°31’16” West a distance of 653.00 feet; thence North 89°55’38” East a distance of 1,459.26
feet to a point on the West line of said Parcel 1; thence continuing North 89°55’38” East parallel to the North
line of said Parcel 1 a distance of 1,342.48 feet to a point on the East line of said Parcel 1; thence North 00°28’16”
East along the East line of said Parcel 1 a distance of 365.46 feet to a point on the Southwesterly line of the Atcheson Topeka
and Santa Fe Railroad Company’s right-of-way; thence North 35°25’56” West along the said railroad right-of-way
line a distance of 352.56 feet to the Northeasterly corner thence North 35°19’16” West continuing along said railroad
right-of-way line a distance of 482.04 feet; thence South 89°55’38” West, parallel to the North line of said Parcel
1 a distance of 855.09 feet to a point on the Northerly extension of this West line of said Parcel 1; thence South 00°27’17”
West, a distance of 393.68 feet to the point of beginning.

 

SCHEDULE
5.13(a)

 

    	28

    	 

    

 

APN 047-130-020 (portion of)

STOCKTON

 

STOCKTON LEASED PREMISES

 

ALL THAT REAL PROPERTY SITUATE IN THE STATE OF CALIFORNIA, COUNTY
OF SAN JOAQUIN, CITY OF STOCKTON, DESCRIBED AS FOLLOWS:

 

A PARCEL OF LAND BEING A PORTION OF SECTION 8, TOWNSHIP 1 NORTH,
RANGE 6 EAST, MOUNT DIABLO BASE AND MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

 

COMMENCING AT GPS OCCUPIED POINT 306 AS SHOWN ON THAT CERTAIN
MAP FILED FOR RECORD ON AUGUST 30, 1994 IN BOOK 33 OF SURVEYS AT PAGE 20, SAN JOAQUIN COUNTY RECORDS, SAID POINT HAVING COORDINATES
OF NORTHING 2167315.376 AND EASTING 6320382.066; THENCE SOUTH 11°23’12” WEST 609.05 FEET TO THE TRUE POINT OF BEGINNING;
THENCE SOUTH 02°49’08” EAST 809.96 FEET; THENCE SOUTH 87°07’38” WEST 1303.28 FEET; THENCE ALONG
A NON TANGENT CURVE TO THE RIGHT HAVING A RADIUS OF 491.67 FEET, A CENTRAL ANGLE OF 86°39’29”, A CHORD BEARING
AND A DISTANCE OF NORTH 42°45’42” WEST 674.76 FEET AND AN ARC LENGTH OF 743.64 FEET; THENCE NORTH 47°00’55”
EAST 455.58 FEET; THENCE NORTH 87°10’52” EAST 1388.34 FEET TO THE TRUE POINT OF BEGINNING, CONTAINING 30.00 ACRES,
MORE OR LESS.

 

STOCKTON RAIL EASEMENT

 

ALL THAT REAL PROPERTY SITUATE IN THE STATE OF CALIFORNIA, COUNTY
OF SAN JOAQUIN, CITY OF STOCKTON, DESCRIBED AS FOLLOWS:

 

A PARCEL OF LAND BEING A PORTION OF SECTION 8, TOWNSHIP 1 NORTH,
RANGE 6 EAST, MOUNT DIABLO BASE AND MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

 

COMMENCING AT GPS OCCUPIED POINT 306 AS SHOWN ON THAT CERTAIN
MAP FILED FOR RECORD ON AUGUST 30, 1994 IN BOOK 33 OF SURVEYS AT PAGE 20, SAN JOAQUIN COUNTY RECORDS, SAID POINT HAVING COORDINATES
OF NORTHING 2167315.376 AND EASTING 6320382.066; THENCE NORTH 83°59’39” WEST 21.09 FEET TO THE WEST RIGHT-OF-WAY
LINE OF NAVY DRIVE AND BEING THE TRUE POINT OF BEGINNING; THENCE ALONG SAID WEST RIGHT-OF-WAY LINE SOUTH 39°59’30”
EAST 118.12 FEET; THENCE LEAVING SAID WEST RIGHT-OF-WAY LINE SOUTH 86°21’48” WEST 59.81 FEET; THENCE ALONG A NON
TANGENT CURVE TO THE RIGHT HAVING A RADIUS OF 586.44 FEET, A CENTRAL ANGLE OF 24°23’40”, A CHORD BEARING AND DISTANCE
OF NORTH 81°38’17” WEST 247.80 FEET, AND AN ARC LENGTH OF 249.68 FEET; THENCE NORTH 69°40’31” WEST
77 52 FEET; THENCE SOUTH 57°22’04” EAST 539.60 FEET; THENCE ALONG A TANGENT CURVE TO THE LEFT HAVING A RADIUS OF
75.00 FEET, A CENTRAL ANGLE OF 72°47’46” AND AN ARC LENGTH OF 95.29 FEET; THENCE NORTH 49°50’10”
EAST 18.52 FEET TO SAID WEST RIGHT-OF-WAY LINE; THENCE ALONG SAID WEST RIGHT-OF-WAY LINE SOUTH 40”10’45” EAST
100.00 FEET; THENCE LEAVING SAID WEST RIGHT-OF-WAY LINE SOUTH 49°50’10” WEST 104.32 FEET; THENCE SOUTH 58°45’51”
EAST 104.18 FEET; THENCE ALONG A TANGENT CURVE TO THE RIGHT HAVING A RADIUS OF 539.06 FEET, A CENTRAL ANGLE OF 145°53’30”
AND AN ARC LENGTH OF 1372.60 FEET; THENCE SOUTH 87°07’38” WEST 1434.97 FEET; THENCE NORTH 02°52’22”
WEST 100.00 FEET; THENCE NORTH 87°07’38” EAST 1303.28 FEET; THENCE NORTH 02°49’08” WEST 10.00 FEET;
THENCE NORTH 87°07’38” EAST 69.52 FEET; THENCE ALONG A TANGENT CURVE TO THE LEFT HAVING A RADIUS OF 450.00 FEET,
A CENTRAL ANGLE OF 146°23’42” AND AN ARC LENGTH OF 1149.78 FEET; THENCE NORTH 59°16’03” WEST 758.03
FEET; THENCE NORTH 11°01’59” WEST 318.92 FEET; THENCE SOUTH 69°40’31” EAST 318.87 FEET; THENCE
ALONG A TANGENT CURVE TO THE LEFT HAVING A RADIUS OF 506.44 FEET, A CENTRAL ANGLE OF 22°40’31” AND AN ARC LENGTH
OF 200.43 FEET TO THE TRUE POINT OF BEGINNING CONTAINING 12.00 ACRES MORE OR LESS.

 

SCHEDULE
5.13(a)

    	29

    	 

    
 

 

TOGETHER WITH THE FOLLOWING:

 

ALL THAT REAL PROPERTY SITUATE IN THE STATE OF CALIFORNIA, COUNTY
OF SAN JOAQUIN, CITY OF STOCKTON, DESCRIBED AS FOLLOWS:

 

A PARCEL OF LAND BEING A PORTION OF SECTION 8, TOWNSHIP 1 NORTH,
RANGE 6 EAST, MOUNT DIABLO BASE AND MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

 

COMMENCING AT GPS OCCUPIED POINT 306 AS SHOWN ON THAT CERTAIN
MAP FILED FOR RECORD ON AUGUST 30, 1994 IN BOOK 33 OF SURVEYS AT PAGE 20, SAN JOAQUIN COUNTY RECORDS, SAID POINT HAVING COORDINATES
OF NORTHING 2167315.376 AND EASTING 6320382.066; THENCE SOUTH 41°13’53” WEST 2089.26 FEET TO THE TRUE POINT OF
BEGINNING; THENCE ALONG A NON TANGENT CURVE TO THE RIGHT HAVING A RADIUS OF 561.67 FEET, A CENTRAL ANGLE OF 139°53’17”,
A CHORD BEARING AND DISTANCE OF NORTH 22°55’43” WEST 1055.22 FEET, AND AN ARC LENGTH OF 1371.32 FEET; THENCE NORTH
47°00’55” EAST 913.06 FEET; THENCE ALONG A TANGENT CURVE TO THE RIGHT HAVING A RADIUS OF 586.44 FEET, A CENTRAL
ANGLE OF 63°18’34” AND AN ARC LENGTH OF 647.99 FEET; THENCE SOUTH 11°01’59” EAST 318.92 FEET; THENCE
ALONG A NON TANGENT CURVE TO THE LEFT HAVING A RADIUS OF 450.00 FEET, A CENTRAL ANGLE OF 73°43’01”, A CHORD BEARING
AND DISTANCE OF SOUTH 83°52’26” WEST 539.86 FEET, AND AN ARC LENGTH OF 578.97 FEET; THENCE SOUTH 47°00’55”
WEST 640.22 FEET; THENCE SOUTH 87°10’52” WEST 46.21 FEET; THENCE SOUTH 47°00’55” WEST 455.58 FEET;
THENCE ALONG A NON TANGENT CURVE TO THE LEFT HAVING A RADIUS OF 491.67 FEET, A CENTRAL ANGLE OF 86°39’29”, A CHORD
BEARING AND DISTANCE OF SOUTH 42°45’42” EAST 674.76 FEET, AND AN ARC LENGTH OF 743.64 FEET; THENCE SOUTH 02°52’22”
EAST 100.00 FEET TO THE TRUE POINT OF BEGINNING CONTAINING 13.28 ACRES MORE OR LESS.

 

EXCEPT THEREFROM THE FOLLOWING:

 

SCHEDULE
5.13(a)

 

    	30

    	 

    

 

ALL THAT REAL PROPERTY SITUATE IN THE STATE OF CALIFORNIA, COUNTY
OF SAN JOAQUIN, CITY OF STOCKTON, DESCRIBED AS FOLLOWS:

 

A PARCEL OF LAND BEING A PORTION OF SECTION 8, TOWNSHIP 1 NORTH,
RANGE 6 EAST, MOUNT DIABLO BASE AND MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

 

COMMENCING AT GPS OCCUPIED POINT 306 AS SHOWN ON THAT CERTAIN
MAP FILED FOR RECORD ON AUGUST 30, 1994 IN BOOK 33 OF SURVEYS AT PAGE 20, SAN JOAQUIN COUNTY RECORDS, SAID POINT HAVING COORDINATES
OF NORTHING 2167315.376 AND EASTING 6320382.066; THENCE SOUTH 37°50’04” EAST 382.77 FEET TO THE WEST RIGHT-OF-WAY
LINE OF NAVY DRIVE AND BEING THE TRUE POINT OF BEGINNING; THENCE LEAVING SAID WEST RIGHT-OF-WAY LINE SOUTH 49°50’ 10”
WEST 18.52 FEET; THENCE ALONG A TANGENT CURVE TO THE RIGHT HAVING A RADIUS OF 75.00 FEET, A CENTRAL ANGLE OF 72°47’46”
AND AN ARC LENGTH OF 95.29 FEET; THENCE NORTH 57°22’04” WEST 539.60 FEET; THENCE NORTH 61°29’20”
WEST 158.40 FEET; THENCE ALONG A TANGENT CURVE TO THE LEFT HAVING A RADIUS OF 534.44 FEET, A CENTRAL ANGLE OF 71°29’44”
AND AN ARC LENGTH OF 666.89 FEET; THENCE SOUTH 47°00’55” WEST 843.28 FEET; THENCE ALONG A TANGENT CURVE TO THE
LEFT HAVING A RADIUS OF 381.00 FEET, A CENTRAL ANGLE OF 3°11’34” AND AN ARC LENGTH OF 21.23 FEET; THENCE SOUTH
45°25’09” WEST 55.02 FEET; THENCE ALONG A NON TANGENT CURVE TO THE LEFT HAVING A RADIUS OF 150.00 FEET, A CENTRAL
ANGLE OF 15°52’13”, A CHORD BEARING AND DISTANCE OF SOUTH 37°29’02” WEST 41.42 FEET, AND AN ARC
LENGTH OF 41.55 FEET; THENCE ALONG A NON TANGENT CURVE TO THE LEFT HAVING A RADIUS OF 390.00 FEET, A CENTRAL ANGLE OF 40°18’09”,
A CHORD BEARING AND DISTANCE OF SOUTH 09°23’52” WEST 268.71 FEET AND AN ARC LENGTH OF 274.33 FEET; THENCE NORTH
47°00’55” EAST 62.21 FEET; THENCE ALONG A NON TANGENT CURVE TO THE RIGHT HAVING A RADIUS OF 339.00 FEET, A CENTRAL
ANGLE OF 52°09’07”, A CHORD BEARING AND DISTANCE OF NORTH 20°56’22” EAST 298.02 FEET, AND AN ARC
LENGTH OF 308.56 FEET; THENCE NORTH 47°00’55” EAST 843.28 FEET; THENCE ALONG A TANGENT CURVE TO THE RIGHT HAVING
A RADIUS OF 492.44 FEET, A CENTRAL ANGLE OF 75°37’01” AND AN ARC LENGTH OF 649.90 FEET; THENCE SOUTH 57°22’04”
EAST 803.05 FEET; THENCE NORTH 49°50’10” EAST 97.31 FEET TO SAID WEST RIGHT-OF-WAY LINE; THENCE ALONG SAID RIGHT-OF-WAY
LINE NORTH 40°10’45” WEST 100.00 FEET TO THE TRUE POINT OF BEGINNING CONTAINING 2.97 ACRES MORE OR LESS.

 

STOCKTON ACCESS EASEMENT

 

ALL THAT REAL PROPERTY SITUATE
IN THE STATE OF CALIFORNIA, COUNTY OF SAN JOAQUIN, CITY OF STOCKTON, DESCRIBED AS FOLLOWS:

 

A PARCEL OF LAND BEING
A PORTION OF SECTION 8, TOWNSHIP 1 NORTH, RANGE 6 EAST, MOUNT DIABLO BASE AND MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

 

SCHEDULE
5.13(a)

    	31

    	 

    

 

COMMENCING AT GPS OCCUPIED POINT 306 AS SHOWN ON THAT CERTAIN
MAP FILED FOR RECORD ON AUGUST 30, 1994 IN BOOK 33 OF SURVEYS AT PAGE 20, SAN JOAQUIN COUNTY RECORDS, SAID POINT HAVING COORDINATES
OF NORTHING 2167315.376 AND EASTING 6320382.066; THENCE SOUTH 37°50’04” EAST 382.77 FEET TO THE WEST RIGHT-OF-WAY
LINE OF NAVY DRIVE AND BEING THE TRUE POINT OF BEGINNING; THENCE LEAVING SAID WEST RIGHT-OF-WAY LINE SOUTH 49°50’10”
WEST 18.52 FEET; THENCE ALONG A TANGENT CURVE TO THE RIGHT HAVING A RADIUS OF 75.00 FEET, A CENTRAL ANGLE OF 72°47’46”
AND AN ARC LENGTH OF 95.29 FEET; THENCE NORTH 57°22’04” WEST 539.60 FEET; THENCE NORTH 61°29’20”
WEST 158.40 FEET; THENCE ALONG A TANGENT CURVE TO THE LEFT HAVING A RADIUS OF 534.44 FEET, A CENTRAL ANGLE OF 71°29’44”
AND AN ARC LENGTH OF 666.89 FEET; THENCE SOUTH 47°00’55” WEST 843.28 FEET; THENCE ALONG A TANGENT CURVE TO THE
LEFT HAVING A RADIUS OF 381.00 FEET, A CENTRAL ANGLE OF 3°11’34” AND AN ARC LENGTH OF 21.23 FEET; THENCE SOUTH
45°25’09” WEST 55.02 FEET; THENCE ALONG A NON TANGENT CURVE TO THE LEFT HAVING A RADIUS OF 150.00 FEET, A CENTRAL
ANGLE OF 15°52’13”, A CHORD BEARING AND DISTANCE OF SOUTH 37°29’02” WEST 41.42 FEET, AND AN ARC
LENGTH OF 41.55 FEET; THENCE ALONG A NON TANGENT CURVE TO THE LEFT HAVING A RADIUS OF 390.00 FEET, A CENTRAL ANGLE OF 40°18’09”,
A CHORD BEARING AND DISTANCE OF SOUTH 09°23’52” WEST 268.71 FEET AND AN ARC LENGTH OF 274.33 FEET; THENCE NORTH
47°00’55” EAST 62.21 FEET; THENCE ALONG A NON TANGENT CURVE TO THE RIGHT HAVING A RADIUS OF 339.00 FEET, A CENTRAL
ANGLE OF 52°09’07”, A CHORD BEARING AND DISTANCE OF NORTH 20°56’22” EAST 298.02 FEET, AND AN ARC
LENGTH OF 308.56 FEET; THENCE NORTH 47°00’55” EAST 843.28 FEET; THENCE ALONG A TANGENT CURVE TO THE RIGHT HAVING
A RADIUS OF 492.44 FEET, A CENTRAL ANGLE OF 75°37’01” AND AN ARC LENGTH OF 649.90 FEET; THENCE SOUTH 57°22’04”
EAST 803.05 FEET; THENCE NORTH 49°50’10” EAST 97.31 FEET TO SAID WEST RIGHT-OF-WAY LINE; THENCE ALONG SAID RIGHT-OF-WAY
LINE NORTH 40°10’45” WEST 100.00 FEET TO THE TRUE POINT OF BEGINNING CONTAINING 2.97 ACRES MORE OR LESS.

 

STOCKTON PIPELINE EASEMENT

 

ALL THAT REAL PROPERTY SITUATE IN THE STATE OF CALIFORNIA, COUNTY
OF SAN JOAQUIN, CITY OF STOCKTON, DESCRIBED AS FOLLOWS:

 

A PARCEL OF LAND BEING A PORTION OF SECTION 8, TOWNSHIP 1 NORTH,
RANGE 6 EAST, MOUNT DIABLO BASE AND MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

 

COMMENCING AT GPS OCCUPIED POINT 306 AS SHOWN ON THAT CERTAIN
MAP FILED FOR RECORD ON AUGUST 30, 1994 IN BOOK 33 OF SURVEYS AT PAGE 20, SAN JOAQUIN COUNTY RECORDS, SAID POINT HAVING COORDINATES
OF NORTHING 2167315.376 AND EASTING 6320382.066; THENCE SOUTH 10°57’33” WEST 627.57 FEET TO THE TRUE POINT OF BEGINNING;
THENCE NORTH 86°59’47” EAST 593.64 FEET TO THE WEST RIGHT-OF-WAY LINE OF NAVY DRIVE; THENCE CONTINUING ALONG SAID
WEST RIGHT-OF-WAY LINE SOUTH 40°10’45” EAST 188.26 FEET; THENCE LEAVING SAID WEST RIGHT-OF-WAY LINE SOUTH 86°59’47”
WEST 77.51 FEET; THENCE ALONG A NON TANGENT CURVE TO THE LEFT HAVING A RADIUS OF 539.06 FEET, A CENTRAL ANGLE OF 10°47’32”,
A CHORD BEARING AND DISTANCE OF NORTH 30°25’13” WEST 101.39 FEET, AND AN ARC LENGTH OF 101.54 FEET; THENCE SOUTH
86°59’47” WEST 583.40 FEET; THENCE NORTH 02°49’08” WEST 60.00 FEET TO
THE TRUE POINT OF BEGINNING CONTAINING 0.98 ACRES MORE OR LESS.

 

SCHEDULE
5.13(a)

 

    	32

    	 

    

 

 

SCHEDULE
5.19(a)(i)

to Exit Credit Agreement

 

ENVIRONMENTAL WARRANTIES

 

Madera:

 

Pacific Ethanol Madera, LLC elected to place certain air permits
on a “Dormant” status, thus eliminating the unnecessary expense associated with periodic air quality testing. Reactivation
of the permits is an administrative matter, requiring only seven days’ written notice to the air district. In addition, all
testing requirements will be required to be updated within 60 days of restart.

 

 

 

 

 

 

 

 

 

SCHEDULE
5.19(a)(i)

 

    	33

    	 

    

 

 

SCHEDULE 5.19(d)(ii)

to Amended and Restated DIP Credit Agreement

 

 

UNDERGROUND STORAGE TANKS

 

 

None.

 

 

 

 

 

 

 

 

 

 

SCHEDULE 5.19(d)(ii)

    	34

    	 

    

 

 

SCHEDULE 5.23

to Credit Agreement

 

 

SEPARATENESS PROVISIONS

 

 

A.       In
the case of Pacific Holding:

 

(1)       Pacific
Holding shall do or cause to be done all things necessary to preserve and keep in full force and effect its existence, rights (charter
and statutory) and franchises; provided, however, that Pacific Holding shall not be required to preserve any such right or franchise
if the member of Pacific Holding shall determine that the preservation thereof is no longer desirable for the conduct of its business
and that the loss thereof is not disadvantageous in any material respect to Pacific Holding. For so long as any Obligation remains
outstanding, Pacific Holding shall:

 

(a)       maintain
its own separate books and records and bank accounts (other than the Project Accounts);

 

(b)       at
all times conduct its business solely in its own name in a manner not misleading to other Persons as to its identity;

 

(c)       file
its own tax returns, if any, as may be required under applicable law, to the extent (1) not part of a consolidated group filing
a consolidated return or returns or (2) not treated as a division for tax purposes of another taxpayer, and pay any taxes so required
to be paid under applicable law;

 

(d)       not
commingle its assets with assets of any other Persons and hold all of its assets in its own name (except to the extent otherwise
provided in the Financing Documents );

 

(e)       strictly
comply with all organizational formalities to maintain its separate existence;

 

(f)       maintain
separate financial statements, showing its assets and liabilities separate and apart from those of any other Person (other than
any of Pacific Holding’s subsidiaries), and not have its assets listed on any financial statement of any other Person; provided,
however, that Pacific Holding’s assets may be included in consolidated financial statements of one of its Affiliates, provided
that (i) appropriate disclosure within the consolidated financial statements or footnotes thereto shall be made to indicate the
separateness of Pacific Holding from such Affiliate and to indicate that Pacific Holding’s assets and credit are not available
to satisfy the debts and other obligations of such Affiliate or any other Person and (ii) such assets shall also be listed on Pacific
Holding’s own separate balance sheet;

 

(g)       pay
its own liabilities only out of its own funds or from the Project Accounts; provided, however, the foregoing shall not require
the member of Pacific Holding to make any additional capital contributions to Pacific Holding;

 

SCHEDULE 5.23

    	35

    	 

    

 

(h)       maintain
an arm’s-length relationship with its Affiliates and the member of Pacific Holding and enter into transactions with Affiliates
and any such member only on a commercially reasonable basis and on terms similar to those of an arm’s-length transaction
(except to the extent it may (i) guarantee the obligations of another Borrower as permitted under the Financing Documents or (ii)
enter into any contract or any other Affiliate transaction permitted under the Credit Agreement);

 

(i)       correct
any known misunderstanding regarding its separate identity and not identify itself as a division of any other Person;

 

(j)       maintain
adequate capital in light of its contemplated business purpose, transactions and liabilities; provided, however, the foregoing
shall not require the member of Pacific Holding to make any additional capital contributions to Pacific Holding; and

 

(k)       cause
any directors, officers, agents and other representatives of Pacific Holding to act at all times with respect to Pacific Holding
consistently and in furtherance of the foregoing and in the best interests of Pacific Holding.

 

B.       In
the case of each other Borrower:

 

(1)       Such
Borrower shall maintain separate bank accounts and separate books of account from each other Borrower and the Pledgor (other than
the Project Accounts maintained in accordance with the Credit Agreement). The separate liabilities of such Borrower shall be readily
distinguishable from the liabilities of each of its Affiliates, including the Pledgor (except to the extent otherwise contemplated
by the Transaction Documents). Such Borrower shall conduct its business solely in its own name in a manner not misleading to other
Persons as to its identity.

 

(2)       Such
Borrower shall not, so long as any Obligation is outstanding and to the extent restricted by the Financing Documents, amend, alter
or change the terms of its limited liability company agreement in any material respect unless the Administrative Agent consents.

 

(3)       For
so long as any Obligation remains outstanding, such Borrower shall:

 

(a)       maintain
its own separate books and records and bank accounts (other than the Project Accounts);

 

(b)       file
its own tax returns, if any, as may be required under applicable law, to the extent (1) not part of a consolidated group filing
a consolidated return or returns or (2) not treated as a division for tax purposes of another taxpayer, and pay any taxes so required
to be paid under applicable law;

 

(c)       not
commingle its assets with assets of any other Persons and hold all of its assets in its own name (except to the extent otherwise
provided in the Financing Documents);

 

(d)       strictly
comply with all organizational formalities to maintain its separate existence;

 

SCHEDULE 5.23

 

    	36

    	 

    

 

(e)       pay
its own liabilities only out of its own funds or from the Project Accounts, provided, however, the foregoing shall not require
the member of such Borrower to make any additional capital contributions to such Borrower;

 

(f)       maintain
an arm’s-length relationship with its Affiliates and the member of such Borrower and enter into transactions with Affiliates
and the member of such Borrower only on a commercially reasonable basis and on terms similar to those of an arm’s-length
transaction (except to the extent it may (1) guarantee the obligations of another Borrower as permitted under the Financing Documents
or (2) enter into any contract or any other Affiliate transaction permitted under the Credit Agreement);

 

(g)       correct
any known misunderstanding regarding its separate identity and not identify itself as a division of any other Person;

 

(h)       maintain
adequate capital in light of its contemplated business purpose, transactions and liabilities; provided, however, the foregoing
shall not require the member of such Borrower to make any additional capital contributions to such Borrower; and

 

(i)       cause
any directors, officers, agents and other representatives of such Borrower to act at all times with respect to such Borrower consistently
and in furtherance of the foregoing and in the best interests of such Borrower.

 

SCHEDULE 5.23

    	37

    	 

    

 

 

SCHEDULE 5.28

to Credit Agreement

 

LEGAL NAMES AND PLACE OF BUSINESS

 

Legal Names

 

Pacific Holding: Pacific Ethanol
Holding Co. LLC, a Delaware limited liability company.

 

Madera: Pacific Ethanol Madera
LLC, a Delaware limited liability company.

 

	Boardman:	Pacific Ethanol Columbia, LLC, a Delaware limited liability company. This entity was known as PE Columbia Ethanol, LLC from its
formation until March 2006.

 

	Stockton:	Pacific Ethanol Stockton LLC, a Delaware limited liability company. This entity was known as Pacific Ethanol Visalia LLC from
its formation until June 2006.

 

Burley: Pacific Ethanol Magic
Valley, LLC, a Delaware limited liability company.

 

Sole Place of Business and Chief Executive Office of Each
Borrower

 

400 Capitol Mall, Suite 2060

Sacramento, California 95814

 

SCHEDULE 5.28

    	38

    	 

    

 

 

SCHEDULE 5.29

to Credit Agreement

BROKER FEES

 

None.

 

 

 

 

 

SCHEDULE 5.29

 

    	39

    	 

    

 

 

SCHEDULE 6.01(a)(ix)

to Credit Agreement

 

PART A – Closing Date Consents

 

1.       The
Asset Management Agreement.

 

2.       The
Grain Supply Agreements.

 

3.       The
Ethanol Offtake Agreements.

 

4.       The
DG Offtake Agreements.

 

PART B – Post Closing Consents

 

1.       The
Burley Heiskell GSA.

 

2.       The
Stockton Heiskell GSA.

 

3.       The
Boardman CHS GSA.

 

 

 

 

 

 

 

SCHEDULE 6.01(a)(ix)

 

    	40

    	 

    

 

 

SCHEDULE 6.01(m)A

to Credit Agreement

 

Initial Budget

 

See attached.

 

 

 

 

 

 

SCHEDULE 6.01(m)A 

 

    	41

    	 	

    
  

	
 PEHC Q4'12 QUARTERLY BUDGET	September 28, 2012

 

PEHC Q4'12 quarterly budget ("Q412 Budget") was developed
from the PEHC 2012 annual budget ("Prior Budget") with updated commodity prices and cost reduction.

Commodity and Operation Assumptions

Commodity price assumptions are based on recent market moves,
with

	Corn price: assuming futures of $7.50/bu based on September
ten days trading average.
	Commodity margin: assumes an increase from 10 cpg in Week
1 to 25 cpg in Week 4 and then holding steady through the remainder of the quarter.
	Ethanol, WDG/Syrup, natural gas prices are also updated based
on traders' estimates and current market information/existing positions. Please note the risks associated with commodity given
the market volatility.
	For Stockton facility, the model assumes Milo as 50% of feedstock
throughout the fourth quarter.
	The budget assumes production rate to be 75% for Columbia,
100% for Magic Valley and 90% for Stockton. Blend ratio is 2.25%.

Other Cash Budget Items

	Working Capital Assumptions: The budget assumes Kinergy
to pay plants earlier by maximum $9M from the end of Q3. On average, Kinergy is to pay plants earlier by 5-7 days.
	Beginning week of new quarterly budget: The Q412 Budget
begins on Oct 1st and ends on Dec 30th; beginning cash is based/reconciled based on estimated ending cash
balance based on latest weekly forecasts.
	Capital Expenditures: Capital expenditure budget was
revised given the current tight cash situation, with 2012 totaling at $1.5M, compared to original budget of $4M and prior forecasts
of $2.9M. For Q42012, we expect to incur $0.5M, compared to $1.5M in the original annual budget. Please see Appendix III for schedule.

13 Week Weekly Cash Flow Scenario Analysis

We also provide a scenario analysis to evaluate the impact on
cash flow:

	Assume sales of Madera to Pitman to be completed in November,
with proceeds totaling $10M received by month end. $5M is to pay down term loan and the other $5M is to pay down revolver facility.
Revolver usage increases to $42.4M by Week 8 consistent with the Base Case but is then reduced to $36M with 1/2 the proceeds from
the asset sale is used to reduce revolver balance and service liquidity needs.
	Assume Targa project is to be in effective in December. Proceeds
total $3M with $0.1M deposits In the middle of October and $2.9 coming in the beginning of December.

 

SCHEDULE 6.01(m) A 

    	42

    	 	

    

	PEHC
    Q4'12 QUARTERLY BUDGET	September 28, 2012

 

Table 1: Comparison of Annual Budget and Quarterly Budget

 

		 	 	Annual Budget 	 	Quarterly Budget	 	Quarterly Actuals
	 	 	 	Q112	 	 	 	Q212	 	 	 	Q312	 	 	 	Q412	 	 	 	Q112	 	 	 	Q212	 	 	 	Q312	 	 	 	Q412	 	 	 	Q112 	 	 	 	Q212	 	 	 	Jul-Aug	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Commodity Prices	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ethanol (OPIS LA) $/gal	 	$	2.70	 	 	$	2.77	 	 	$	2.79	 	 	$	2.66	 	 	$	2.49	 	 	$	2.59	 	 	$	2.62	 	 	$	2.57	 	 	$	2.32	 	 	$	2.29	 	 	$	2.74	 
	Corn (futures) $/bu	 	$	6.78	 	 	$	6.87	 	 	$	6.56	 	 	$	6.07	 	 	$	6.33	 	 	$	6.55	 	 	$	6.20	 	 	$	7.50	 	 	$	6.41	 	 	$	6.13	 	 	$	7.81	 
	Commodity Margin S/gal	 	$	0.45	 	 	$	0.50	 	 	$	0.60	 	 	$	0.60	 	 	$	0.35	 	 	$	0.40	 	 	$	0.50	 	 	$	0.23	 	 	$	0.22	 	 	$	0.24	 	 	$	0.23	 
	Total sales gallons - mm	 	 	39.1	 	 	 	39.5	 	 	 	40.4	 	 	 	40.0	 	 	 	39.1	 	 	 	37.8	 	 	 	40.0	 	 	 	35.5	 	 	 	35.3	 	 	 	37.2	 	 	 	n/a	 
	Income Statements	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sales $mm	 	$	131.3	 	 	$	135.9	 	 	$	138.4	 	 	$	129.8	 	 	$	122.2	 	 	$	122.9	 	 	$	132.2	 	 	$	124.0	 	 	$	105.9	 	 	$	112.7	 	 	 	n/a	 
	Cost of Goods Sold	 	 	132.6	 	 	 	135.1	 	 	 	133.5	 	 	 	125.4	 	 	 	127.9	 	 	 	125.3	 	 	 	130.9	 	 	 	130.8	 	 	 	115.3	 	 	 	119.3	 	 	 	n/a	 
	Gross profit	 	 	(1.3	)	 	 	0.8	 	 	 	4.9	 	 	 	4.4	 	 	 	(5.7	)	 	 	(2.4	)	 	 	1.3	 	 	 	(6.8	)	 	 	(9.4	)	 	 	(6.6	)	 	 	n/a	 
	SG&A Expenses	 	 	1.2	 	 	 	1.2	 	 	 	1.2	 	 	 	1.2	 	 	 	1.2	 	 	 	1.1	 	 	 	1.1	 	 	 	1.0	 	 	 	1.0	 	 	 	1.0	 	 	 	n/a	 
	PEHC Board Level SG&A	 	 	0.3	 	 	 	0.3	 	 	 	0.3	 	 	 	0.3	 	 	 	0.3	 	 	 	0.3	 	 	 	0.3	 	 	 	0.1	 	 	 	0.4	 	 	 	0.4	 	 	 	n/a	 
	Depreciation/Amortization	 	 	0.3	 	 	 	0.3	 	 	 	0.2	 	 	 	0.2	 	 	 	0.3	 	 	 	0.3	 	 	 	0.2	 	 	 	0.2	 	 	 	0.3	 	 	 	0.3	 	 	 	n/a	 
	Interest Expense (Income)	 	 	2.6	 	 	 	2.7	 	 	 	2.8	 	 	 	2.7	 	 	 	2.5	 	 	 	2.7	 	 	 	2.8	 	 	 	2.9	 	 	 	2.6	 	 	 	2.9	 	 	 	n/a	 
	Net income (loss)	 	$	(5.6	)	 	$	(3.6	)	 	$	0.6	 	 	$	0.1	 	 	$	(9.8	)	 	$	(6.7	)	 	$	(3.1	)	 	$	(11.0	)	 	$	(13.6	)	 	$	(11.2	)	 	 	n/a	 
	Consol EBITDA	 	$	0.1	 	 	$	2.2	 	 	$	6.3	 	 	$	5.7	 	 	$	(4.4	)	 	$	(1.1	)	 	$	2.7	 	 	$	(5.2	)	 	$	(8.1	)	 	$	(5.4	)	 	 	n/a	 
	Consol EBITDA $/gal	 	$	0.00	 	 	$	0.05	 	 	$	0.15	 	 	$	0.14	 	 	$	(0.11	)	 	$	(0.03	)	 	$	0.07	 	 	$	(0.15	)	 	$	(0.23	)	 	$	(0.15	)	 	 	n/a	 

 

 

Table 2: Capital Expenditure Budget Summary

 

	 		 	 	Annual Budget	 	 	Actuals & Forecasts	 
	 	 	 	 	Q112	 	 	Q212	 	 	Q312	 	 	Q412	 	 	TOTAL	 	 	Q112 A	 	 	Q212 A	 	 	Q312 A	 	 	Q412	 	 	TOTAL	 
	 	PECOL	 	 	$	200,000	 	 	$	352,500	 	 	$	65,000	 	 	$	700,000	 	 	$	1,317,500	 	 	$	–	 	 	$	9,200	 	 	$	210,800	 	 	$	-	 	 	$	220,000	 
	 	PEMV	 	 	 	132,000	 	 	 	273,000	 	 	 	276,250	 	 	 	78,750	 	 	 	760,000	 	 	 	125,952	 	 	$	37,163	 	 	$	134,214	 	 	$	191,684	 	 	 	489,013	 
	 	PES	 	 	 	245,000	 	 	 	305,000	 	 	 	665,000	 	 	 	700,000	 	 	 	1,915,000	 	 	 	21,795	 	 	$	138.031	 	 	$	282,500	 	 	$	355,000	 	 	 	797,326	 
	 	Total	 	 	$	577,000	 	 	$	930,500	 	 	$	1,006,250	 	 	$	1,478,750	 	 	$	3,992,500	 	 	$	147,747	 	 	$	184,394	 	 	$	627,514	 	 	$	546,684	 	 	$	1,506,339	 

 

 

Appendix I: Quarterly Budget - Mthly P&L Budget

 

Appendix II: Quarterly Budget - 13-wk Weekly Cash Flow

 

Appendix III: Capital Expenditure Schedule 2012

 

Appendix IV: Quarterly Budget - 13-wk Weekly Cash Flow Scenario
Analysis

 

SCHEDULE 6.01(m)A 

 

    	43

    	 	

    

Appendix I - 2012Q4 Budget Financial Statements

New PEHoldco LLC Consolidated

Income Statement/Balance
Sheet/Cash Flow Statements Forecast

Q4'12 Quarterly Budget

 

	 	 	Oct-12	 	Nov-12	 	Dec-12	 	Total
    Q412
	 	 	 	 	 	 	 	 	 
	Production Gallons	 	12,068,580 	 	11,419,373

         
	 	12,001,994 	 	35,489,947 
	OPIS LA

        Corn

         
	$

    $	2.528

        7.500

         
	$	2.598

        7.500

         
	$	2.598

        7.500

         
	$	2.575

        7.500

         

	 	$	$

        $

	Commodity
        Crush Margin

         
	$	0.180 	$	0.250 	$	0.250 	$	0.227 
	Income
        Statement Forecast

         
	 	 	 	 	 	 	 	 
	Sales	 	 	 	 	 	 	 	 
	Ethanol

        Co-products

        Other/CEPIP
	$	30,826,456

        11,030,300

        -    
	$	29,844,789

        10,430,216

        -    
	$	30,939,316

        10,967,000

        -    
	$	91,610,561

        32,427,516

        -    

	Total sales	 	41,856,757 	 	40,275,005 	 	41,906,316 	 	124,038,078 
	 	 	 	 	 	 	 	 	 
	Cost of Goods Sold	 	 	 	 	 	 	 	 
	Raw materials and Ingredients	 	41,220,907 	 	38,836,788 	 	40,336,273 	 	120,393,967 
	Labor	 	1,167,453 	 	1,045,066 	 	1,153,455 	 	3,365,974 
	Maintenance, supplies	 	 	 	 	 	 	 	-    
	Production overhead	 	565,430 	 	556,381 	 	555,295 	 	1,677,106 
	Depreciation expense - PPE	 	927,810 	 	925,727 	 	929,070 	 	2,782,607 
	Ethanol maliceting fee	 	274,603 	 	258,565 	 	269,202 	 	802,370 
	WDG marketing fee	 	380,815 	 	360,324 	 	378,607 	 	1,119,746 
	Com procurement fee	 	195,848 	 	185,310 	 	194,712 	 	575,869 
	Non-cash compensation	 	25,083 	 	25,083 	 	25,083 	 	75,250 
	Derivative (gain) loss	 	-	 	-	 	-	 	 
	Total cost of goods
    sold	 	44,757,950 	 	42,193,244 	 	43,841,697 	 	130,792,890 
	 	 	 	 	 	 	 	 	 
	Gross profit	 	(2,901,193)	 	(1,918,239)	 	(1,935,381)	 	(6,754,813)
	 	 	 	 	 	 	 	 	 
	SG&A Expenses	 	 	 	 	 	 	 	 
	O&M fee	 	273,000 	 	273,000 	 	273,000 	 	819,000 
	Other 508,A at ethanol plants	 	33,083 	 	33,083 	 	33,083 	 	99,250 
	PEHC Professional
    Fee (audit/ property tax/license	 	41,967 	 	41.967 	 	41,967 	 	125,900 
	Total SG&A expenses	 	348,050 	 	348,050 	 	348,050 	 	1,044,150 
	 	 	 	 	 	 	 	 	 
	Operating
    Income (loss) before special items	 	(3,249,243)	 	(2,266,289)	 	(2,283,431)	 	(7,798,963)
	 	 	 	 	 	 	 	 	 
	PEHC Board Level SG&A	 	 	 	 	 	 	 	 
	Board	 	 	 	 	 	 	 	 
	Officer	 	 	 	 	 	 	 	 
	Advisor	 	15,000 	 	15,000 	 	15,000 	 	45,000 
	Bank Advisor	 	10,000 	 	10,000 	 	10,000 	 	30,000 
	Other SG&A	 	15,000 	 	15,000 	 	15,000 	 	45,000 
	D&O insurance	 	6,667 	 	6,667 	 	6.667 	 	20,000 
	Total
    PEHC Board Level SG&A	 	46,667 	 	46,667 	 	46,667 	 	140,000 
	 	 	 	 	 	 	 	 	 
	Depreciation/Amortization	 	 	 	 	 	 	 	 
	Depreciation expense - non-plant	 	2,822 	 	2,822 	 	2,822 	 	8,467 
	Amortization expense- intangible assets	 	 -	 	-	 	-	 	 
	Amortixation expense- financing costs	 	52,036 	 	50,358 	 	52,036 	 	154.431 
	Total depreciation/amortization	 	54,859 	 	53,180 	 	54,859 	 	162,897 
	 	 	 	 	 	 	 	 	 
	Interest Expense (Income)	 	 	 	 	 	 	 	 
	Term Loan A	 	585,081 	 	566,208 	 	585,081 	 	1,736,371 
	Exit Fanny Revolver	 	353,345 	 	395,027 	 	413,619 	 	1,161,992 
	Bank fee	 	6,500 	 	6,500 	 	36,500 	 	49,500 
	Interest Income	 	-	 	- 	 	-	 	- 
	Total Interest expense
    (income)	 	944,927 	 	967,735 	 	1,035,201 	 	2,947,863 
	 	 	 	 	 	 	 	 	 
	Net Income (loss)	$	(4,295,695)	$	(3,333,871)	$	(3,420,157)	$	(11,049,723)
	 	 	 	 	 	 	 	 	 
	Plants EBITDA $	$	(2,279,466)	 	(1,298,585)	 	(1,312,394	 	(4,890,456)
	Consol EBITDA $	$	(2,368,100)	$	(1,387,229)	$	(1,401,028)	$	(5,156,356 
	Consol EBITDA $/gal	 	 	 	 	 	 	 	(0.15)

 

SCHEDULE 6.01(m) A 

    	44

    	 	

    

 

CONFIDENTIAL

Pacific Ethanol Holding Company, LLC

Income Statement Forecast

Years Ending December 31, 2012

 

	 	 	Oct-12	 	Nov-12	 	Dec-12	 	Total Q412
	 	 	 	 	 	 	 	 	 
	Sales	 	 	 	 	 	 	 	 
	 	Ethanol	$	-    	$	-    	$	-    	$	-    
	 	Co-products	 	-    	 	-    	 	-    	 	-    
	 	Other/CEPIP	 	-    	 	-    	 	-    	 	-    
	 	Total sales	 	-    	 	-    	 	-    	 	-    
	 	 	 	 	 	 	 	 	 	 
	Cost of Goods Sold	 	 	 	 	 	 	 	 
	 	Raw materials and ingredients	 	-    	 	-    	 	-    	 	-    
	 	Labor, maintenance, supplies	 	-    	 	-    	 	-    	 	-    
	 	Production overhead	 	-    	 	-    	 	-    	 	-    
	 	Depreciation expense - PPE	 	-    	 	-    	 	-    	 	-    
	 	Ethanol marketing fee	 	-    	 	-    	 	-    	 	-    
	 	WDG marketing fee	 	-    	 	-    	 	-    	 	-    
	 	Corn procurement fee	 	-    	 	-    	 	-    	 	-    
	 	Non-cash compensation	 	5,833 	 	5,833 	 	5,833 	 	17,500 
	 	Derivative (gain) loss	 	-    	 	-    	 	-    	 	-    
	 	Total cost of goods sold	 	5,833 	 	5,833 	 	5,833 	 	17,500 
	 	 	 	 	 	 	 	 	 	 
	Gross profit	 	(5,833)	 	(5,833)	 	(5,833)	 	(17,500)
	 	 	 	 	 	 	 	 	 	 
	SG&A Expenses	 	 	 	 	 	 	 	 
	 	Other SG&A at ethanol plants	 	-    	 	-    	 	-    	 	-    
	 	O&M fee	 	-    	 	-    	 	-    	 	-    
	 	PEHC Professional Fee (audit/property tax/license fee	 	41,967 	 	41,967 	 	41,967 	 	125,900 
	 	Total SG&A expenses	 	41,967 	 	41,967 	 	41,967 	 	125,900 
	 	 	 	 	 	 	 	 	 	 
	Operating income (loss) before special items	 	(47,800)	 	(47,800)	 	(47,800)	 	(143,400)
	 	 	 	 	 	 	 	 	 	 
	PEHC Board Level SG&A	 	 	 	 	 	 	 	 
	 	Board	 	-    	 	-    	 	-    	 	-    
	 	Officer	 	-    	 	-    	 	-    	 	-    
	 	Advisor	 	15,000 	 	15,000 	 	15,000 	 	45,000 
	 	Bank Advisor	 	10,000 	 	10,000 	 	10,000 	 	30,000 
	 	Other SG&A	 	15,000 	 	15,000 	 	15,000 	 	45,000 
	 	D&O Insurance	 	6,667 	 	6,667 	 	6,667 	 	20,000 
	 	Total PEHC Board Level SG&A	 	46,667 	 	46,667 	 	46,667 	 	140,000 
	 	 	 	 	 	 	 	 	 	 
	Depreciation/Amortization	 	 	 	 	 	 	 	 
	 	Depreciation expense - non-plant	 	-    	 	-    	 	-    	 	-    
	 	Amortization expense - intangible assets	 	-    	 	-    	 	-    	 	-    
	 	Amortization expense - financing costs	 	52,036 	 	50,358 	 	52,036 	 	154,431 
	 	Total depreciation/amortization	 	52,036 	 	50,358 	 	52,036 	 	154,431 
	 	 	 	 	 	 	 	 	 	 
	Interest Expense (Income)	 	 	 	 	 	 	 	 
	 	Term Loan A	 	585,081 	 	566,208 	 	585,081 	 	1,736,371 
	 	Exit Facility Revolver	 	353,345 	 	395,027 	 	413,619 	 	1,161,992 
	 	Bank fee (bank analysis fee + WF agency fee)	 	6,500 	 	6,500 	 	36,500 	 	49,500 
	 	Interest income	 	-    	 	-    	 	-    	 	-    
	 	Total interest expense (income)	 	944,927 	 	967,735 	 	1,035,201 	 	2,947,863 
	 	 	 	 	 	 	 	 	 	 
	Net income (loss)	$	(1,091,430)	$	(1,112,560)	$	(1,181,704)	$	(3,385,693)
	 	 	 	 	 	 	 	 	 	 
	EBITDA $	$	(94,467)	$	(94,467)	$	(94,467)	$	(283,400)
	 	 	 	 	 	 	 	 	 	 	 

SCHEDULE 6.01(m)A

    	45

    	 	

    

CONFIDENTIAL

Pacific Ethanol Columbia, LLC

Income Statement Forecast

Years Ending December 31, 2012

 

 

	 	 	Oct-12	 	Nov-12	 	Dec-12	 	Total Q412
	 	 	 	 	 	 	 	 	 
	Sales	 	 	 	 	 	 	 	 
	 	Ethanol	$	6,721,980 	$	5,952,357 	$	6,372,904 	$	19,047,241 
	 	Co-products	 	2,428,527 	 	2,115,169 	 	2,350,188 	 	6,893,884 
	 	Other/CEPIP	 	-    	 	-    	 	-    	 	-    
	 	Total sales	 	9,150,507 	 	8,067,526 	 	8,723,092 	 	25,941,126 
	 	 	 	 	 	 	 	 	 	 
	Cost of Goods Sold	 	 	 	 	 	 	 	 
	 	Raw materials and ingredients	 	9,128,524 	 	7,875,216 	 	8,460,075 	 	25,463,814 
	 	Labor, maintenance, supplies	 	400,898 	 	288,189 	 	290,898 	 	979,984 
	 	Production overhead	 	133,997 	 	131,997 	 	127,997 	 	393,992 
	 	Depreciation expense - PPE	 	208,476 	 	206,400 	 	208,546 	 	623,422 
	 	Ethanol marketing fee	 	59,990 	 	51,687 	 	55,339 	 	167,016 
	 	WDG marketing fee	 	81,475 	 	70,962 	 	78,847 	 	231,284 
	 	Corn procurement fee	 	41,902 	 	36,495 	 	40,550 	 	118,946 
	 	Non-cash compensation	 	5,833 	 	5,833 	 	5,833 	 	17,500 
	 	Derivative (gain) loss	 	-    	 	-    	 	-    	 	-    
	 	Total cost of goods sold	 	10,061,095 	 	8,666,779 	 	9,268,084 	 	27,995,959 
	 	 	 	 	 	 	 	 	 	 
	Gross profit	 	(910,588)	 	(599,253)	 	(544,992)	 	(2,054,833)
	 	 	 	 	 	 	 	 	 	 
	SG&A Expenses	 	 	 	 	 	 	 	 
	 	O&M fee	 	77,000 	 	77,000 	 	77,000 	 	231,000 
	 	Other SG&A at ethanol plants	 	6,167 	 	6,167 	 	6,167 	 	18,500 
	 	PEHC Professional Fee (audit/property tax/license fee	 	-    	 	-    	 	-    	 	-    
	 	Total SG&A expenses	 	83,167 	 	83,167 	 	83,167 	 	249,500 
	 	 	 	 	 	 	 	 	 	 
	Operating income (loss) before special items	 	(993,755)	 	(682,420)	 	(628,159)	 	(2,304,333)
	 	 	 	 	 	 	 	 	 	 
	PEHC Board Level SG&A	 	 	 	 	 	 	 	 
	 	Board	 	-    	 	-    	 	-    	 	-    
	 	Officer	 	-    	 	-    	 	-    	 	-    
	 	Advisor	 	-    	 	-    	 	-    	 	-    
	 	Bank Advisor	 	-    	 	-    	 	-    	 	-    
	 	Other SG&A	 	-    	 	-    	 	-    	 	-    
	 	D&O Insurance	 	-    	 	-    	 	-    	 	-    
	 	Total PEHC Board Level SG&A	 	-    	 	-    	 	-    	 	-    
	 	 	 	 	 	 	 	 	 	 
	Depreciation/Amortization	 	 	 	 	 	 	 	 
	 	Depreciation expense - non-plant	 	1,140 	 	1,140 	 	1,140 	 	3,419
	 	Amortization expense	 	-    	 	-    	 	-    	 	-    
	 	Total depreciation/amortization	 	1,140 	 	1,140 	 	1,140 	 	3,419
	 	 	 	 	 	 	 	 	 	 
	Interest Expense (Income)	 	 	 	 	 	 	 	 
	 	Term Loan A	 	-    	 	-    	 	-    	 	-    
	 	Exit Facility Revolver	 	-    	 	-    	 	-    	 	-    
	 	Bank fee	 	-    	 	-    	 	-    	 	-    
	 	Interest income	 	-    	 	-    	 	-    	 	-    
	 	Total interest expense (income)	 	-    	 	-    	 	-    	 	-    
	 	 	 	 	 	 	 	 	 	 
	Net income (loss)	$	(994,895)	$	(683,559)	$	(629,299) 	$	(2,307,753)
	 	 	 	 	 	 	 	 	 	 
	EBITDA $ before special Items	$	(785,276)	$	$        (476,020)	$	419,613 	$	(1,680,911)
	 	 	 	 	 	 	 	 	 	 	 	 

SCHEDULE 6.01(m) A 

    	46

    	 	

    

CONFIDENTIAL

Pacific Ethanol Magic Valley,
LLC

Income Statement Forecast

Years Ending December 31, 2012

 

	 	 	Oct-12	 	Nov-12	 	Dec-12	 	Total Q412
	 	 	 	 	 	 	 	 	 
	Sales	 	 	 	 	 	 	 	 
	 	Ethanol	$	12,606,372 	$	12,537,178 	$	13,269,590 	$	38,413,140 
	 	Co-products	 	4,526,477 	 	4,375,594 	 	4,677,359 	 	13,579,430 
	 	Other/CEPIP	 	-    	 	-    	 	-    	 	-    
	 	Total sales	 	17,132,849 	 	16,912,772 	 	17,946,950 	 	51,992,571 
	 	 	 	 	 	 	 	 	 	 
	Cost of Goods Sold	 	 	 	 	 	 	 	 
	 	Raw materials and ingredients	 	17,148,713 	 	16,592,103 	 	17,574,505 	 	51,315,323 
	 	Labor, maintenance, supplies	 	324,578 	 	320,784 	 	370,578 	 	1,015,940 
	 	Production overhead	 	144,765 	 	144,551 	 	144,980 	 	434,296 
	 	Depreciation expense - PPE	 	256,679 	 	257,284 	 	256,807 	 	770,769 
	 	Ethanol marketing fee	 	112,363 	 	108,617 	 	116,108 	 	337,088 
	 	WDG marketing fee	 	155,967 	 	150,768 	 	161,166 	 	467,902 
	 	Corn procurement fee	 	80,212 	 	77,538 	 	82,885 	 	240,635 
	 	Non-cash compensation	 	5,833 	 	5,833 	 	5,833 	 	17,500 
	 	Derivative (gain) loss	 	-    	 	-    	 	-    	 	-    
	 	Total cost of goods sold	 	18,229,111 	 	17,657,480 	 	18,712,863 	 	54,599,454 
	 	 	 	 	 	 	 	 	 	 
	Gross profit	 	(1,096,262)	 	(744,708)	 	(765,914)	 	(2,606,884)
	 	 	 	 	 	 	 	 	 	 
	SG&A Expenses	 	 	 	 	 	 	 	 
	 	O&M fee	 	77,000 	 	77,000 	 	77,000 	 	231,000 
	 	Other SG&A at ethanol plants	 	12,000 	 	12,000 	 	12,000 	 	36,000 
	 	PEHC Professional Fee (audit/property tax/license fee	 	-    	 	-    	 	-    	 	-    
	 	Total SG&A expenses	 	89,000 	 	89,000 	 	89,000 	 	267,000 
	 	 	 	 	 	 	 	 	 	 
	Operating income (loss) before special items	 	(1,185,262)	 	(833,708)	 	(854,914)	 	(2,873,884)
	 	 	 	 	 	 	 	 	 	 
	PEHC Board Level SG&A	 	 	 	 	 	 	 	 
	 	Board	 	-    	 	-    	 	-    	 	-    
	 	Officer	 	-    	 	-    	 	-    	 	-    
	 	Advisor	 	-    	 	-    	 	-    	 	-    
	 	Bank Advisor	 	-    	 	-    	 	-    	 	-    
	 	Other SG&A	 	-    	 	-    	 	-    	 	-    
	 	D&O Insurance	 	-    	 	-    	 	-    	 	-    
	 	Total PEHC Board Level SG&A	 	-    	 	-    	 	-    	 	-    
	 	 	 	 	 	 	 	 	 	 
	Depreciation/Amortization	 	 	 	 	 	 	 	 
	 	Depreciation expense - non-plant	 	370 	 	370 	 	370 	 	1,111 
	 	Amortization expense	 	-    	 	-    	 	-    	 	-    
	 	Total depreciation/amortization	 	370 	 	370 	 	370 	 	1,111 
	 	 	 	 	 	 	 	 	 	 
	Interest Expense (Income)	 	 	 	 	 	 	 	 
	 	Term Loan A	 	-    	 	-    	 	-    	 	-    
	 	Exit Facility Revolver	 	-    	 	-    	 	-    	 	-    
	 	Bank fee	 	-    	 	-    	 	-    	 	-    
	 	Interest income	 	-    	 	-    	 	-    	 	-    
	 	Total interest expense (income)	 	-    	 	-    	 	-    	 	-    
	 	 	 	 	 	 	 	 	 	 
	Net income (loss)	$	(1,185,632)	$	(834,079)	$	(855,284)	$	(2,874,995)
	 	 	 	 	 	 	 	 	 	 
	EBITDA $ before special Items	$	(928,583)	$	(576,425)	$	(598,107)	$	(2,103,114)
	 	 	 	 	 	 	 	 	 	 	 	 

 

SCHEDULE 6.01(m)A 

 

    	47

    	 	

    

CONFIDENTIAL

Pacific Ethanol Stockton, LLC

Income Statement Forecast

Years Ending December 31, 2012

 

	 	 	Oct-12	 	Nov-12	 	Dec-12	 	
         

        Total Q412

	 	 	 	 	 	 	 	 	 
	Sales	 	 	 	 	 	 	 	 
	 	Ethanol	$	11,498,105 	$	11,355,253 	$	11,296,822 	$	34,150,180 
	 	Co-products	 	4,075,296 	 	3,939,453 	 	3,939,453 	 	11,954,202 
	 	Other/CEPIP	 	-    	 	-    	 	-    	 	-    
	 	Total sales	 	15,573,401 	 	15,294,706 	 	15,236,274 	 	46,104,381 
	 	 	 	 	 	 	 	 	 	 
	Cost of Goods Sold	 	 	 	 	 	 	 	 
	 	Raw materials and ingredients	 	14,933,006 	 	14,358,802 	 	14,291,028 	 	43,582,835 
	 	Labor, maintenance, supplies	 	352,742 	 	348,333 	 	402,742 	 	1,103,817 
	 	Production overhead	 	203,506 	 	196,671 	 	196,597 	 	596,775 
	 	Depreciation expense - PPE	 	282,873 	 	282,261 	 	283,935 	 	849,069 
	 	Ethanol marketing fee	 	102,250 	 	98,261 	 	95,755 	 	298,267 
	 	WDG marketing fee	 	143,373 	 	138,594 	 	138,594 	 	420,560 
	 	Corn procurement fee	 	73,735 	 	71,277 	 	71,277 	 	216,288 
	 	Non-cash compensation	 	5,833 	 	5,833 	 	5,833 	 	17,500 
	 	Derivative (gain) loss	 	-    	 	-    	 	-    	 	-    
	 	Total cost of goods sold	 	16,097,317 	 	15,500,032 	 	15,487,761 	 	47,085,111 
	 	 	 	 	 	 	 	 	 	 
	Gross profit	 	(523,917)	 	(205,326)	 	(251,487)	 	(980,730)
	 	 	 	 	 	 	 	 	 	 
	SG&A Expenses	 	 	 	 	 	 	 	 
	 	O&M fee	 	77,000 	 	77,000 	 	77,000 	 	231,000 
	 	Other SG&A at ethanol plants	 	12,000 	 	12,000 	 	12,000 	 	36,000 
	 	PEHC Professional Fee (audit/property tax/license fee	 	-    	 	-    	 	-    	 	-    
	 	Total SG&A expenses	 	89,000 	 	89,000 	 	89,000 	 	267,000 
	 	 	 	 	 	 	 	 	 	 
	Operating income (loss) before special items	 	(612,917)	 	(294,326)	 	(340,487)	 	(1,247,730)
	 	 	 	 	 	 	 	 	 	 
	PEHC Board Level SG&A	 	 	 	 	 	 	 	 
	 	Board	 	-    	 	-    	 	-    	 	-    
	 	Officer	 	-    	 	-    	 	-    	 	-    
	 	Advisor	 	-    	 	-    	 	-    	 	-    
	 	Bank Advisor	 	-    	 	-    	 	-    	 	-    
	 	Other SG&A	 	-    	 	-    	 	-    	 	-    
	 	D&O Insurance	 	-    	 	-    	 	-    	 	-    
	 	Total PEHC Board Level SG&A	 	-    	 	-    	 	-    	 	-    
	 	 	 	 	 	 	 	 	 	 
	Depreciation/Amortization	 	 	 	 	 	 	 	 
	 	Depreciation expense - non-plant	 	959 	 	959 	 	959 	 	2,877 
	 	Amortization expense	 	-    	 	-    	 	-    	 	-    
	 	Total depreciation/amortization	 	959 	 	959 	 	959 	 	2,877 
	 	 	 	 	 	 	 	 	 	 
	Interest Expense (Income)	 	 	 	 	 	 	 	 
	 	Term Loan A	 	-    	 	-    	 	-    	 	-    
	 	Exit Facility Revolver	 	-    	 	-    	 	-    	 	-    
	 	Bank fee	 	-    	 	-    	 	-    	 	-    
	 	Interest income	 	-    	 	-    	 	-    	 	-    
	 	Total interest expense (income)	 	-    	 	-    	 	-    	 	-    
	 	 	 	 	 	 	 	 	 	 
	Net income (loss)	$	(613,876)	$	(295,285)	$	(341,446)	$	(1,250,607)
	 	 	 	 	 	 	 	 	 	 
	EBITDA $ before special Items	$	(330,044)	$	(12,065)	$	(56,552)	$	(398,661)
	 	 	 	 	 	 	 	 	 	 	 	 

SCHEDULE 6.01(m)A 

    	48

    	 	

    

CONFIDENTIAL

Pacific Ethanol Madera, LLC

Income Statement Forecast

Years Ending December 31, 2012

 

	 	 	Oct-12	 	Nov-12	 	Dec-12	 
	 	 	 	 	 	 	 	 
	Sales	 	 	 	 	 	 	 
	 	Ethanol	$	-    	$	-    	$	-    	
	 	Co-products	 	-    	 	-    	 	-    	 
	 	Other/CEPIP	 	-    	 	-    	 	-    	 
	 	Total sales	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Cost of Goods Sold	 	 	 	 	 	 	 
	 	Raw materials and ingredients	 	10,665 	 	10,665 	 	10,665 	 
	 	Labor, maintenance, supplies	 	89,235 	 	87,760 	 	89,237 	 
	 	Production overhead	 	83,161 	 	83,161 	 	85,721 	 
	 	Depreciation expense - PPE	 	179,783 	 	179,783 	 	179,783 	 
	 	Ethanol marketing fee	 	-    	 	-    	 	-    	 
	 	WDG marketing fee	 	-    	 	-    	 	-    	 
	 	Corn procurement fee	 	-    	 	-    	 	-    	 
	 	Non-cash compensation	 	1,750 	 	1,750 	 	1,750 	 
	 	Derivative (gain) loss	 	-    	 	-    	 	-    	 
	 	Total cost of goods sold	 	364,593 	 	363,119 	 	367,155 	 
	 	 	 	 	 	 	 	 	 
	Gross profit	 	(364,593)	 	(363,119)	 	(367,155)	 
	 	 	 	 	 	 	 	 	 
	SG&A Expenses	 	 	 	 	 	 	 
	 	O&M fee	 	42,000 	 	42,000 	 	42,000 	 
	 	Other SG&A at ethanol plants	 	2,917 	 	2,917 	 	2,917 	 
	 	PEHC Professional Fee (audit/property tax/license fee	 	-    	 	-    	 	-    	 
	 	Total SG&A expenses	 	44,917 	 	44,917 	 	44,917 	 
	 	 	 	 	 	 	 	 	 
	Operating income (loss) before special items	 	(409,510)	 	(408,035)	 	(412,072)	 
	 	 	 	 	 	 	 	 	 
	PEHC Board Level SG&A	 	 	 	 	 	 	 
	 	Board	 	-    	 	-    	 	-    	 
	 	Officer	 	-    	 	-    	 	-    	 
	 	Advisor	 	-    	 	-    	 	-    	 
	 	Bank Advisor	 	-    	 	-    	 	-    	 
	 	Other SG&A	 	-    	 	-    	 	-    	 
	 	D&O Insurance	 	-    	 	-    	 	-    	 
	 	Total PEHC Board Level SG&A	 	-    	 	-    	 	-    	 
	 	 	 	 	 	 	 	 	 
	Depreciation/Amortization	 	 	 	 	 	 	 
	 	Depreciation expense - non-plant	 	353 	 	353 	 	353 	 
	 	Amortization expense	 	-    	 	-    	 	-    	 
	 	Total depreciation/amortization	 	353 	 	353 	 	353 	 
	 	 	 	 	 	 	 	 	 
	Interest Expense (Income)	 	 	 	 	 	 	 
	 	Term Loan A	 	-    	 	-    	 	-    	 
	 	Exit Facility Revolver	 	-    	 	-    	 	-    	 
	 	Bank fee	 	-    	 	-    	 	-    	 
	 	Interest income	 	-    	 	-    	 	-    	 
	 	Total interest expense (income)	 	-    	 	-    	 	-    	 
	 	 	 	 	 	 	 	 	 
	Net income (loss)	$	(409,863)	$	(408,388)	$	(412,425)	 
	 	 	 	 	 	 	 	 	 
	EBITDA $ before special Items	$	(229,727)	$	(228,253)	$	(232,289)	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

SCHEDULE 6.01(m)A 

    	49

    	 	

    

Appendix II: Quarterly Budget
– 13-wk Weekly Cash Flow

Pacific Ethanol Holding Co.
LLC

As of September 27, 2012

 

	 	 	OCTOBER	 	 	NOVEMBER	 	 	DECEMBER	 
	 	 	 	wk
                                                                                                                              1

                                                                                                                              10/01-10/07	 	 	 	wk
                                                                                                                              2

                                                                                                                              10/08-10/14	 	 	 	wk
                                                                                                                              3

                                                                                                                              10/15-10/21	 	 	 	wk
                                                                                                                              4

                                                                                                                              10/22-10/28	 	 	 	wk
                                                                                                                              5

                                                                                                                              10/29-11/4	 	 	 	wk
                                                                                                                              6

                                                                                                                              11/5-11/11	 	 	 	wk
                                                                                                                              7

                                                                                                                              11/12-11/18	 	 	 	wk
                                                                                                                              8

                                                                                                                              11/19-11/25	 	 	 	wk
                                                                                                                              9

                                                                                                                              11/26-12/02	 	 	 	wk
                                                                                                                              10

                                                                                                                              12/03-12/09	 	 	 	wk
                                                                                                                              11

                                                                                                                              12/10-12/16	 	 	 	wk
                                                                                                                              12

                                                                                                                              12/17-12/23	 	 	 	wk
                                                                                                                              13

                                                                                                                              12/24-12/30	 
	Commodity
    Margin $/gal	 	$	0.10	 	 	$	0.15	 	 	$	0.20	 	 	$	0.18	 	 	$	0.25	 	 	$	0.25	 	 	$	0.25	 	 	$	0.25	 	 	$	0.25	 	 	$	0.25	 	 	$	0.25	 	 	$	0.25	 	 	$	0.25	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenue,
    Operating & Plan Admin Accts	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Beginning Cash Balance	 	 	1,454,889	 	 	$	1,294,906	 	 	$	737,502	 	 	$	964,332	 	 	$	804,920	 	 	$	(148,237	)	 	$	193,349	 	 	$	168,524	 	 	$	126,539	 	 	$	288,028	 	 	$	(198,211	)	 	$	(103,364	)	 	$	(448,295	)
	Cash Inflows	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenue - Ethanol (Kinergy)	 	 	7,109,459	 	 	 	6,683,883	 	 	 	6,629,297	 	 	 	6,557,746	 	 	 	6,595,861	 	 	 	6,868,034	 	 	 	6,676,417	 	 	 	6,676,417	 	 	 	6,962,830	 	 	 	6,751,898	 	 	 	6,751,898	 	 	 	6,962,830	 	 	 	6,962,830	 
	Revenue - WDG (PAP) and others	 	 	2,474,019	 	 	 	2,369,675	 	 	 	2,382,444	 	 	 	2,310,646	 	 	 	2,310,646	 	 	 	2,382,444	 	 	 	2,284,067	 	 	 	2,284,067	 	 	 	2,382,444	 	 	 	2,310,646	 	 	 	2,310,646	 	 	 	2,382,444	 	 	 	2,382,444	 
	Revenue - CEPIP	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Others	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total Cash Inflows	 	 	9,583,478	 	 	 	9,053,558	 	 	 	9,011,741	 	 	 	8,868,392	 	 	 	8,906,507	 	 	 	9,250,478	 	 	 	8,960,485	 	 	 	8,960,485	 	 	 	9,345,274	 	 	 	9,062,544	 	 	 	9,062,544	 	 	 	9,345,274	 	 	 	9,345,274	 
	Disbursements	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Operating Disbursements	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Corn	 	 	(8,200,067	)	 	 	(8,200,067	)	 	 	(7,693,909	)	 	 	(8,200,067	)	 	 	(8,200,067	)	 	 	(7,534,787	)	 	 	(8,200,067	)	 	 	(8,200,067	)	 	 	(7,693,909	)	 	 	(8,200,067	)	 	 	(8,200,067	)	 	 	(8,200,067	)	 	 	(8,200,067	)
	Natural Gas	 	 	(186,908	)	 	 	(186,908	)	 	 	(176,194	)	 	 	(186,908	)	 	 	(181,913	)	 	 	(176,580	)	 	 	(187,573	)	 	 	(186,908	)	 	 	(175,529	)	 	 	(186,908	)	 	 	(187,573	)	 	 	(186,908	)	 	 	(151,946	)
	Electricity	 	 	–	 	 	 	–	 	 	 	(118,267	)	 	 	(268,873	)	 	 	(128,815	)	 	 	–	 	 	 	(10,000	)	 	 	(336,630	)	 	 	(125,714	)	 	 	–	 	 	 	(10,000	)	 	 	(75,165	)	 	 	(363,509	)
	Insurance	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(45,408	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(45,408	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Property Tax and other Taxes	 	 	–	 	 	 	–	 	 	 	220,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(571,000	)	 	 	–	 	 	 	380,000	 	 	 	–	 	 	 	(604,186	)	 	 	–	 	 	 	–	 
	Ethanol freight	 	 	(143,088	)	 	 	(143,088	)	 	 	(131,578	)	 	 	(143,088	)	 	 	6,912	 	 	 	(134,157	)	 	 	(143,088	)	 	 	(143,088	)	 	 	(131,578	)	 	 	(143,088	)	 	 	(143,088	)	 	 	(143,088	)	 	 	(143,088	)
	Co-product freight	 	 	(43,042	)	 	 	(43,042	)	 	 	(43,042	)	 	 	(43,042	)	 	 	(43,042	)	 	 	(36,894	)	 	 	(43,042	)	 	 	(43,042	)	 	 	(43,042	)	 	 	(43,042	)	 	 	(43,042	)	 	 	(43,042	)	 	 	(43,042	)
	Lease Payments	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(34,239	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(34,239	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(33,557	)
	Grain procurement and handling w/ PAP	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(80,212	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(77,538	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(82,885	)
	Plant Supplies & Maintenance	 	 	(621,437	)	 	 	(621,437	)	 	 	(621,437	)	 	 	(621,437	)	 	 	(610,056	)	 	 	(610,056	)	 	 	(610,056	)	 	 	(610,056	)	 	 	(610,056	)	 	 	(559,257	)	 	 	(559,257	)	 	 	(559,257	)	 	 	(559,257	)
	Capital Expenditures	 	 	(42,053	)	 	 	(42,053	)	 	 	(42,053	)	 	 	(42,053	)	 	 	(42,053	)	 	 	(42,053	)	 	 	(42,053	)	 	 	(42,053	)	 	 	(42,053	)	 	 	(42,053	)	 	 	(42,053	)	 	 	(42,053	)	 	 	(42,053	)
	Other PEHC costs	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Professional fee	 	 	(9,767	)	 	 	(9,767	)	 	 	(9,767	)	 	 	(9,767	)	 	 	(9,767	)	 	 	(9,767	)	 	 	(9,767	)	 	 	(9,767	)	 	 	(9,767	)	 	 	(9,767	)	 	 	(9,767	)	 	 	(9,767	)	 	 	(9,767	)
	Bank fee	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(1,500	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(1,500	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(1,500	)
	Contingency	 	 	(25,000	)	 	 	(25,000	)	 	 	(25,000	)	 	 	(25,000	)	 	 	(25,000	)	 	 	(25,000	)	 	 	(25,000	)	 	 	(25,000	)	 	 	(25,000	)	 	 	(25,000	)	 	 	(25,000	)	 	 	(25,000	)	 	 	(25,000	)
	Total Operating Disbursements	 	 	(9,271,363	)	 	 	(9,271,363	)	 	 	(8,641,248	)	 	 	(9,621,947	)	 	 	(9,313,450	)	 	 	(8,569,294	)	 	 	(9,841,647	)	 	 	(9,596,612	)	 	 	(8,635,335	)	 	 	(9,209,183	)	 	 	(9,824,034	)	 	 	(9,284,348	)	 	 	(9,655,673	)
	Asset Management Agreement	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Direct Reimbursable Items
    under AMA	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Payroll & Benefits - Plants & Plant
    Operations	 	 	(328,436	)	 	 	(328,436	)	 	 	–	 	 	 	(328,436	)	 	 	–	 	 	 	(328,436	)	 	 	–	 	 	 	(328,436	)	 	 	–	 	 	 	(328,436	)	 	 	–	 	 	 	(328,436	)	 	 	–	 
	Other Direct Expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Insurance	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(59,341	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(59,341	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(59,341	)	 	 	–	 
	Professional fee	 	 	(1,860	)	 	 	(1,860	)	 	 	(1,860	)	 	 	(1,860	)	 	 	(1,860	)	 	 	(1,860	)	 	 	(1,860	)	 	 	(1,860	)	 	 	(1,860	)	 	 	(1,860	)	 	 	(1,860	)	 	 	(1,860	)	 	 	(1,860	)
	Total Direct Reimbursable
    Items under AMA	 	 	(330,296	)	 	 	(330,296	)	 	 	(1,860	)	 	 	(389,637	)	 	 	(1,860	)	 	 	(330,296	)	 	 	(1,860	)	 	 	(389,637	)	 	 	(1,860	)	 	 	(330,296	)	 	 	(1,860	)	 	 	(389,637	)	 	 	(1,860	)
	Asset Management Fee	 	 	(132,500	)	 	 	–	 	 	 	(132,500	)	 	 	–	 	 	 	(132,500	)	 	 	–	 	 	 	(132,500	)	 	 	–	 	 	 	(132,500	)	 	 	–	 	 	 	(132,500	)	 	 	–	 	 	 	(132,500	)
	Total Asset Management
    Agreement	 	 	(462,796	)	 	 	(330,296	)	 	 	(134,360	)	 	 	(389,637	)	 	 	(134,360	)	 	 	(330,296	)	 	 	(134,360	)	 	 	(389,637	)	 	 	(134,360	)	 	 	(330,296	)	 	 	(134,360	)	 	 	(389,637	)	 	 	(134,360	)
	Plan Administration Related
    Cash Flow	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Board fee/Professional
    Fee	 	 	(9,302	)	 	 	(9,302	)	 	 	(9,302	)	 	 	(16,219	)	 	 	(9,302	)	 	 	(9,302	)	 	 	(9,302	)	 	 	(16,219	)	 	 	(9,302	)	 	 	(9,302	)	 	 	(9,302	)	 	 	(16,219	)	 	 	(9,302	)
	Interest
    & Fees	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(402,551	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(404,788	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total Disbursements	 	 	(9,743,461	)	 	 	(9,610,961	)	 	 	(8,784,911	)	 	 	(10,027,804	)	 	 	(9,859,663	)	 	 	(8,908,893	)	 	 	(9,985,310	)	 	 	(10,002,469	)	 	 	(9,183,786	)	 	 	(9,548,782	)	 	 	(9,967,697	)	 	 	(9,690,205	)	 	 	(9,799,336	)
	Exit
    Facility Funding	 	 	–	 	 	 	–	 	 	 	–	 	 	 	1,000,000	 	 	 	–	 	 	 	–	 	 	 	1,000,000	 	 	 	1,000,000	 	 	 	–	 	 	 	–	 	 	 	1,000,000	 	 	 	–	 	 	 	1,000,000	 
	Ending Cash Balance	 	$	1,294,906	 	 	$	737,502	 	 	$	964,332	 	 	$	804,920	 	 	$	(148,237	)	 	$	193,349	 	 	$	168,524	 	 	$	126,539	 	 	$	288,028	 	 	$	(198,211	)	 	$	(103,364	)	 	$	(448,295	)	 	$	97,644	 
	Cumulative funding	 	$	39,363,200	 	 	$	39,363,200	 	 	$	39,363,200	 	 	$	40,363,200	 	 	$	40,363,200	 	 	$	40,363,200	 	 	$	41,363,200	 	 	$	42,363,200	 	 	$	42,363,200	 	 	$	42,363,200	 	 	$	43,363,200	 	 	$	43,363,200	 	 	$	44,363,200	 
	Net funding	 	 	38,068,294	 	 	 	38,625,698	 	 	 	38,398,868	 	 	 	39,558,280	 	 	 	40,511,437	 	 	 	40,169,851	 	 	 	41,194,676	 	 	 	42,236,661	 	 	 	42,075,172	 	 	 	42,561,411	 	 	 	43,466,564	 	 	 	43,811,495	 	 	 	44,265,556	 

SCHEDULE 6.01(m)A 

    	50

    	 	

    

Appendix III _ 2012 Capital Expenditure Plan: Q412 Forecasts

	 	 	2012
	Capital Projects	Actual +
 Forecast	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
	PEMV	 	 	 	 	 	 	 	 	 	 	 	 	 
	2011 Capital Budget Carryover Items	 	 	 	 	 	 	 	 	 	 	 	 	 
	Variable speed drive for PC-4504*	22,011	 	 	22,011	 	 	 	 	 	 	 	 	 
	Live steam to Beer Column control (Delayed to 2013)	-	 	 	 	 	 	 	 	 	 	 	 	 
	Purchase Demister	43,500	 	 	43,500	 	 	 	 	 	 	 	 	 
	Install Demister	49,491	 	 	 	 	 	49,491	 	 	 	 	 	 
	Demister Installation Added Scope (Working Thru Building)	33,663	 	 	 	 	 	33,663	 	 	 	 	 	 
	Replace media in RTO	-	 	 	 	 	 	 	 	 	 	 	 	 
	Purchase and install Slurry Density Meter	12,000	 	 	 	 	 	 	12,000	 	 	 	 	 
	Slurry Tank replacement	139,152	 	 	125,952	 	 	 	 	 	 	13,200	 	 
	Replace 930 front end loader	-	 	 	-	 	-	-	 	-	-	-	-	-
	Replace air compressor at corn train load-out	-	 	 	-	-	-	-	-	 	-	-	-	-
	Build office space for Commodities (delayed to 2013)	-	 	 	-	-	-	-	-	-	-	-	-	-
	Build office space for Utility Operators (delayed to 2013)	-	 	 	 	 	 	 	 	 	-	 	 	 
	Seal up or replace Whole Stillage screens	-	 	 	 	 	 	-	 	 	 	 	 	 
	Plant triage	-	 	 	 	 	 	 	-	 	 	 	 	 
	Liquid Yeast Cooler Installations (Replaced with Storage agreement	 -	 	 	 	 	 	 	-	 	 	 	 	 
	Beer Column Tray Redesign (Forecast reduced to $72.5k)	72,228	 	 	 	 	 	 	 	21,913	50,315	 	 	 
	Corn Oil Project	 	-	-	-	-	-	-	-	-	-	-	-	50,000
	Purchase and install Flare (Move to 2012)	82,971	 	 	 	 	 	 	 	39,486	 	43,485	-	 
	Capital spares	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pogo' for corn train load-out (delayed to 2013)	-	 	-	-	-	-	-	-	-	-	-	-	-
	Gearboxes for corn delivery conveyors	14,000	 	 	 	 	 	3,500	3,500	3,500	3,500	-	 	 
	Other Capital spares	84,999	 	 	 	 	 	 	 	 	-	28,333	28,333	28,333
	Items Moved to 2013	-	 	 	 	 	 	 	 	 	 	 	 	 
	Refrigeration system for cream yeast	-	 	 	 	 	 	 	 	 	 	 	 	 
	Replace Urea Tank	-	 	 	 	 	 	 	 	 	 	 	-	-
	Condenser for PC Tank vapor	-	 	 	 	 	 	 	 	 	 	 	 	 
	Add catwalks around tops of boilers	-	 	 	 	 	 	 	 	 	 	 	 	 
	Install water treatment system for back-end water recovery	-	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PEMV Totals	$    439,013	$      -	$     -	$  125,952	$  -	$    -	$  37,163	$   15,500	$  64,899	$  53,815	$  85,018	$ 28,333	$  78,333
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PECOL	 	 	 	 	 	 	 	 	 	 	 	 	 
	2011 Capital Budget Carryover Items	 	 	 	 	 	 	 	 	 	 	 	 	 
	Install Slurry Density Meter*	14,243	 	4,295	 	 	 	 	 	 	 	 	 	 
	Replace Beer Column Trays*	75,277	 	 	45,000	 	 	 	 	 	 	 	 	 
	Expansion joints & Piping Upgrade	80,000	 	 	-	-	-	-	40,000	40,000	 	-	-	-
	Replace telescoping boom lift (interim as needed rental at $300/wk)	-	-	-	-	-	-	-	-	-	 	-	-	-
	Corn truck loading upgrades	75,000	-	-	-	-	 	-	-	-	75,000	-	-	-
	Plant Triage (delayed to 2013)	-	-	 	 	-	-	-	 	 	-	-	-	-
	Syrup solids density meter (delayed to 2013)	-	-	-	 	-	-	-	-	-	-	 	-	-
	Inductive Automation (delayed to 2013)	-	-	 	 	-	-	-	 	-	-	-	-	-
	Replace Kawasaki Mule (delayed to 2013)	-	-	 	-	-	-	-	-	-	 	-	 	-
	Reconfigure evaporators	-	-	-	-	-	-	-	 	 	 	 	 	-
	Capital Spares - Plates for Mash Cooler (reduced from 25k to 8k	8,000	-	-	 	-	-	 	 	8,000	 	-	-	 
	Capital Spares - Belts and Buckets for BE-240 (delayed to 2013)	-	 	 	 	 	 	 	 	 	 	 	 	 
	Capital Spares - Motor for Hammermill moved up to Sep	25,000	 	 	 	 	 	 	 	 	25,000	 	 	 
	Centrifuge crane extension (delayed to 2013)	-	-	-	-	 	-	 	-	-	-	 	-	-
	Burden carrier (delayed to 2013)	-	-	 	-	-	 	 	-	-	 	-	-	-
	PPE & Clock In Building (delayed to 2013)	-	-	 	-	-	 	-	 	-	 	-	 	-
	Corn bin laser level system (delayed to 2013)	-	-	-	-	-	 	-	-	 	-	-	 	-
	Storage unit for safety/file storage (delayed to 2013)	-	-	-	-	-	-	 	-	 	 	 	 	 
	Liquid Yeast Cooler Installations	12,000	 	 	 	 	 	9200	2,800	 	 	 	 	 
	Upgrade Laterals in both Moecular Sieves (delayed to 2013)	-	 	 	 	 	 	 	 	 	 	 	 	 
	Replace Rectifier Column Trays Reduced to 20k and 55k in 2013	20,000	 	 	 	 	 	 	 	 	20,000	 	 	 
	Items Moved to 2013	-	 	 	 	 	 	 	 	 	 	 	 	 
	Beer column burp tank	-	-	-	-	-	-	-	-	-	-	 	-	-
	Pump suction knock out pots	-	-	 	-	 	-	-	-	-	-	-	-	-
	Pump suction knock out pots	-	-	 	-	-	 	-	-	-	-	-	-	-
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PECOL Totals	$  220,000	$   -	$      -	$    -	$        -	$    -	$    9,200	$  42,800	$   48,000	$  120,000	$  -	$       -	$      -

 

SCHEDULE 6.01(m)A 

    	51

    	 	

    

Appendix III _ 2012 Capital Expenditure Plan: Q412 Forecasts

 

	 	 	 	 	 	2012	 
	Capital Projects	 	Actual +
 Forecast	 	 	Jan	 	 	Feb	 	 	Mar	 	 	Apr	 	 	May	 	 	Jun	 	 	Jul	 	 	Aug	 	 	Sep	 	 	Oct	 	 	Nov	 	 	Dec	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2011 Capital Budget Carryover Items	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PES C201 1 00X Bin sweeps CO2011*	 	 	178,206	 	 	 	–	 	 	 	 	 	 	 	109,538	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Replacement Handrail around loadout Sump CO2011*	 	 	5,507	 	 	 	–	 	 	 	5,507	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PES C2012 001 Slurry density meter - CO 2011*	 	 	10,715	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	8,946	 	 	 	1,769	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Add Plate Packs to Final Product Heat Exchanger CO2011	 	 	–	 	 	 	–	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Paint Fiberglass Double Wall Pipe - Regulatory	 	 	23,352	 	 	 	 	 	 	 	18,352	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	–	 	 	 	5,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Plant Triage	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Inductive Automation	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	RTO Upgrades	 	 	92,033	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	–	 	 	 	92,033	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CO2 Scrubber Distributor Spray Header	 	 	39,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	10,000	 	 	 	29,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CO2 Scrubber Long Term Solution (increased to 150k)	 	 	160,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	25,000	 	 	 	100,000	 	 	 	35,000	 	 	 	 	 
	Expansion joints & Piping Upgrade (delayed to 2013)	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	 	 	 	 	–	 	 	 	 	 
	Piping support upgrades (delayed to 2013)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	–	 	 	 	–	 
	catwalk above boiler for steam valve isolation	 	 	30,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	30,000	 	 	 	–	 	 	 	–	 
	Syrup solids density meter	 	 	–	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 
	Density control for final ethanol moisture control	 	 	–	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Isolate rectifier from beer column for CIP (delayed to 2013)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	–	 
	cooling tower louvers (delayed to 2013)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 
	Fire Pump House Construction Completion Regulatory	 	 	15,998	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	6,998	 	 	 	9,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Evaporator process conversion	 	 	349,943	 	 	 	–	 	 	 	 	 	 	 	3,443	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	46,500	 	 	 	75,000	 	 	 	50,000	 	 	 	175,000	 	 	 	–	 	 	 	–	 
	catwalk in DDE for Steam valve isolation	 	 	5,000	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	5,000	 	 	 	–	 	 	 	–	 	 	 	–	 
	Assorted Capital Spares (Pending Plant Input)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	–	 	 	 	 	 
	Outdoor storage/cover for parts and consumables (delayed to	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	–	 
	FM Global recommendations for water flow improvements on fire system (delayed to 2013)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	 	 	 	 	–	 	 	 	–	 
	reclaim line to beer well to accept offspec wine	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Liquid Yeast Cooler Installations	 	 	12,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	–	 	 	 	 	 	 	 	12,000	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grain MCC Room AC Unit add 15k	 	 	25,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	25,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Beer Column Tray Redesign	 	 	–	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	–	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fermentation Pump Energy Efficiency Project	 	 	45,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	30,000	 	 	 	15,000	 	 	 	 	 	 	 	 	 
	Items Moved to 2013	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Spare Centrifuge	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	–	 
	Corn bin laser level system	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Pump suction knock out pots	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Beer column burp tank	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	CIP recovery system to discharge solids and recover caustic	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	–	 
	PES Totals	 	$	797,326	 	 	$	–	 	 	$	18,352	 	 	$	3,443	 	 	$	–	 	 	$	10,000	 	 	 	128,031	 	 	$	60,500	 	 	$	100,000	 	 	$	122,000	 	 	$	320,000	 	 	$	35,000	 	 	$	–	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PEM	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PEM startup related	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	PEM capex after startup	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	PEM Totals	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	GRAND TOTAL	 	$	1,456,339	 	 	$	–	 	 	$	18,352	 	 	$	129,395	 	 	$	–	 	 	$	10,000	 	 	$	174,394	 	 	$	118,800	 	 	$	212,899	 	 	$	295,815	 	 	$	405,018	 	 	$	63,333	 	 	$	78,333	 

 

SCHEDULE 6.01(m)A 

    	52

    	 	

    

Appendix IV: Quarterly Budget
– 13-wk Weekly Cash Flow Scenario Analysis

Pacific Ethanol Holding Co.
LLC

As of September 27, 2012

 

	 	 	OCTOBER	 	 	NOVEMBER	 	 	DECEMBER	 
	 	 	 	wk
                                                                                                        1
 10/01-10/07	 	 	 	wk
                                                                                                        2
 10/08-10/14	 	 	 	wk
                                                                                                        3
 10/15-10/21	 	 	 	wk
                                                                                                        4
 10/22-10/28	 	 	 	wk
                                                                                                        5
 10/29-11/4	 	 	 	wk
                                                                                                        6
 11/5-11/11	 	 	 	wk
                                                                                                        7
 11/12-11/18	 	 	 	wk
                                                                                                        8
 11/19-11/25	 	 	 	wk
                                                                                                        9
 11/26-12/02	 	 	 	wk
                                                                                                        10
 12/03-12/09	 	 	 	wk
                                                                                                        11
 12/10-12/16	 	 	 	wk
                                                                                                        12
 12/17-12/23	 	 	 	wk
                                                                                                        13
 12/24-12/30	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Commodity
    Margin $/gal	 	$	0.10	 	 	$	0.15	 	 	$	0.20	 	 	$	0.18	 	 	$	0.25	 	 	$	0.25	 	 	$	0.25	 	 	$	0.25	 	 	$	0.25	 	 	$	0.25	 	 	$	0.25	 	 	$	0.25	 	 	$	0.25	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenue,
    Operating & Plan Admin Accts	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Beginning Cash Balance	 	 	1,454,889	 	 	$	1,294,906	 	 	$	837,502	 	 	$	1,064,332	 	 	$	(95,080	)	 	$	(48,193	)	 	$	293,392	 	 	$	268,567	 	 	$	226,583	 	 	$	388,077	 	 	$	(98,161	)	 	$	396,685	 	 	$	51,755	 
	Cash Inflows	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenue - Ethanol (Kinergy)	 	 	7,109,459	 	 	 	6,683,883	 	 	 	6,629,297	 	 	 	6,557,746	 	 	 	6,595,861	 	 	 	6,868,034	 	 	 	6,676,417	 	 	 	6,676,417	 	 	 	6,962,830	 	 	 	6,751,898	 	 	 	6,751,898	 	 	 	6,962,830	 	 	 	6,962,830	 
	Revenue - WDG (PAP) and others	 	 	2,474,019	 	 	 	2,369,675	 	 	 	2,382,444	 	 	 	2,310,646	 	 	 	2,310,646	 	 	 	2,382,444	 	 	 	2,284,067	 	 	 	2,284,067	 	 	 	2,382,444	 	 	 	2,310,646	 	 	 	2,310,646	 	 	 	2,382,444	 	 	 	2,382,444	 
	Revenue - CEPIP	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Others	 	 	–	 	 	 	100,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	5,000,000	 	 	 	–	 	 	 	2,900,000	 	 	 	–	 	 	 	–	 
	Total Cash Inflows	 	 	9,583,478	 	 	 	9,153,558	 	 	 	9,011,741	 	 	 	8,868,392	 	 	 	8,906,507	 	 	 	9,250,478	 	 	 	8,960,485	 	 	 	8,960,485	 	 	 	14,345,274	 	 	 	9,062,544	 	 	 	11,962,544	 	 	 	9,345,274	 	 	 	9,345,274	 
	Disbursements	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Operating Disbursements	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Corn	 	 	(8,200,067	)	 	 	(8,200,067	)	 	 	(7,693,909	)	 	 	(8,200,067	)	 	 	(8,200,067	)	 	 	(7,534,787	)	 	 	(8,200,067	)	 	 	(8,200,067	)	 	 	(7,693,909	)	 	 	(8,200,067	)	 	 	(8,200,067	)	 	 	(8,200,067	)	 	 	(8,200,067	)
	Natural Gas	 	 	(186,908	)	 	 	(186,908	)	 	 	(176,194	)	 	 	(186,908	)	 	 	(181,913	)	 	 	(176,580	)	 	 	(187,573	)	 	 	(186,908	)	 	 	(175,529	)	 	 	(186,908	)	 	 	(187,573	)	 	 	(186,908	)	 	 	(151,946	)
	Electricity	 	 	–	 	 	 	–	 	 	 	(118,267	)	 	 	(268,873	)	 	 	(128,815	)	 	 	–	 	 	 	(10,000	)	 	 	(336,630	)	 	 	(125,714	)	 	 	–	 	 	 	(10,000	)	 	 	(75,165	)	 	 	(363,509	)
	Insurance	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(45,408	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(45,408	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Property Tax and other Taxes	 	 	–	 	 	 	–	 	 	 	220,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(571,000	)	 	 	–	 	 	 	380,000	 	 	 	–	 	 	 	(604,186	)	 	 	–	 	 	 	–	 
	Ethanol freight	 	 	(143,088	)	 	 	(143,088	)	 	 	(131,578	)	 	 	(143,088	)	 	 	6,912	 	 	 	(134,157	)	 	 	(143,088	)	 	 	(143,088	)	 	 	(131,578	)	 	 	(143,088	)	 	 	(143,088	)	 	 	(143,088	)	 	 	(143,088	)
	Co-product freight	 	 	(43,042	)	 	 	(43,042	)	 	 	(43,042	)	 	 	(43,042	)	 	 	(43,042	)	 	 	(36,894	)	 	 	(43,042	)	 	 	(43,042	)	 	 	(43,042	)	 	 	(43,042	)	 	 	(43,042	)	 	 	(43,042	)	 	 	(43,042	)
	Lease Payments	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(34,239	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(34,239	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(33,557	)
	Grain procurement and handling w/ PAP	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(80,212	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(77,538	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(82,885	)
	Plant Supplies & Maintenance	 	 	(621,437	)	 	 	(621,437	)	 	 	(621,437	)	 	 	(621,437	)	 	 	(610,056	)	 	 	(610,056	)	 	 	(610,056	)	 	 	(610,056	)	 	 	(610,056	)	 	 	(559,257	)	 	 	(559,257	)	 	 	(559,257	)	 	 	(559,257	)
	Capital Expenditures	 	 	(42,053	)	 	 	(42,053	)	 	 	(42,053	)	 	 	(42,053	)	 	 	(42,053	)	 	 	(42,053	)	 	 	(42,053	)	 	 	(42,053	)	 	 	(42,053	)	 	 	(42,053	)	 	 	(42,053	)	 	 	(42,053	)	 	 	(42,053	)
	Other PEHC costs	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Professional fee	 	 	(9,767	)	 	 	(9,767	)	 	 	(9,767	)	 	 	(9,767	)	 	 	(9,767	)	 	 	(9,767	)	 	 	(9,767	)	 	 	(9,767	)	 	 	(9,767	)	 	 	(9,767	)	 	 	(9,767	)	 	 	(9,767	)	 	 	(9,767	)
	Bank fee	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(1,500	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(1,500	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(1,500	)
	Contingency	 	 	(25,000	)	 	 	(25,000	)	 	 	(25,000	)	 	 	(25,000	)	 	 	(25,000	)	 	 	(25,000	)	 	 	(25,000	)	 	 	(25,000	)	 	 	(25,000	)	 	 	(25,000	)	 	 	(25,000	)	 	 	(25,000	)	 	 	(25,000	)
	Total Operating Disbursements	 	 	(9,271,363	)	 	 	(9,271,363	)	 	 	(8,641,248	)	 	 	(9,621,947	)	 	 	(9,313,450	)	 	 	(8,569,294	)	 	 	(9,841,647	)	 	 	(9,596,612	)	 	 	(8,635,335	)	 	 	(9,209,183	)	 	 	(9,824,034	)	 	 	(9,284,348	)	 	 	(9,655,673	)
	Asset Management Agreement	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Direct Reimbursable Items
    under AMA	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Payroll & Benefits - Plants & Plant
    Operations	 	 	(328,436	)	 	 	(328,436	)	 	 	–	 	 	 	(328,436	)	 	 	–	 	 	 	(328,436	)	 	 	–	 	 	 	(328,436	)	 	 	–	 	 	 	(328,436	)	 	 	–	 	 	 	(328,436	)	 	 	–	 
	Other Direct Expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Insurance	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(59,341	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(59,341	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(59,341	)	 	 	–	 
	Professional fee	 	 	(1,860	)	 	 	(1,860	)	 	 	(1,860	)	 	 	(1,860	)	 	 	(1,860	)	 	 	(1,860	)	 	 	(1,860	)	 	 	(1,860	)	 	 	(1,860	)	 	 	(1,860	)	 	 	(1,860	)	 	 	(1,860	)	 	 	(1,860	)
	Total Direct Reimbursable
    Items under AMA	 	 	(330,296	)	 	 	(330,296	)	 	 	(1,860	)	 	 	(389,637	)	 	 	(1,860	)	 	 	(330,296	)	 	 	(1,860	)	 	 	(389,637	)	 	 	(1,860	)	 	 	(330,296	)	 	 	(1,860	)	 	 	(389,637	)	 	 	(1,860	)
	Asset Management Fee	 	 	(132,500	)	 	 	–	 	 	 	(132,500	)	 	 	–	 	 	 	(132,500	)	 	 	–	 	 	 	(132,500	)	 	 	–	 	 	 	(132,500	)	 	 	–	 	 	 	(132,500	)	 	 	–	 	 	 	(132,500	)
	Total Asset Management Agreement	 	 	(462,796	)	 	 	(330,296	)	 	 	(134,360	)	 	 	(389,637	)	 	 	(134,360	)	 	 	(330,296	)	 	 	(134,360	)	 	 	(389,637	)	 	 	(134,360	)	 	 	(330,296	)	 	 	(134,360	)	 	 	(389,637	)	 	 	(134,360	)
	Plan Administration Related
    Cash Flow	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Board fee/Professional Fee	 	 	(9,302	)	 	 	(9,302	)	 	 	(9,302	)	 	 	(16,219	)	 	 	(9,302	)	 	 	(9,302	)	 	 	(9,302	)	 	 	(16,219	)	 	 	(9,302	)	 	 	(9,302	)	 	 	(9,302	)	 	 	(16,219	)	 	 	(9,302	)
	Interest
    & Fees	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(402,507	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(404,782	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total Disbursements	 	 	(9,743,461	)	 	 	(9,610,961	)	 	 	(8,784,911	)	 	 	(10,027,804	)	 	 	(9,859,620	)	 	 	(8,908,893	)	 	 	(9,985,310	)	 	 	(10,002,469	)	 	 	(9,183,780	)	 	 	(9,548,782	)	 	 	(9,967,697	)	 	 	(9,690,205	)	 	 	(9,799,336	)
	Exit
    Facility Funding	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	1,000,000	 	 	 	–	 	 	 	1,000,000	 	 	 	1,000,000	 	 	 	(5,000,000	)	 	 	–	 	 	 	(1,500,000	)	 	 	–	 	 	 	–	 
	Ending Cash Balance	 	$	1,294,906	 	 	$	837,502	 	 	$	1,064,332	 	 	$	(95,080	)	 	$	(48,193	)	 	$	293,392	 	 	$	268,567	 	 	$	226,583	 	 	$	388,077	 	 	$	(98,161	)	 	$	396,685	 	 	$	51,755	 	 	$	(402,307	)
	Cumulative funding	 	$	39,363,200	 	 	$	39,363,200	 	 	$	39,363,200	 	 	$	39,363,200	 	 	$	40,363,200	 	 	$	40,363,200	 	 	$	41,363,200	 	 	$	42,363,200	 	 	$	37,363,200	 	 	$	37,363,200	 	 	$	35,863,200	 	 	$	35,863,200	 	 	$	35,863,200	 
	Net funding	 	 	38,068,294	 	 	 	38,525,698	 	 	 	38,298,868	 	 	 	39,458,280	 	 	 	40,411,393	 	 	 	40,069,808	 	 	 	41,094,633	 	 	 	42,136,617	 	 	 	36,975,123	 	 	 	37,461,361	 	 	 	35,466,515	 	 	 	35,811,445	 	 	 	36,265,507	 

 

SCHEDULE 6.01(m)A 

    	53

    	 	

    

 

 

Schedule 6.01(m)B

To Credit Agreement

 

 

 

INITIAL ANNUAL FORECAST

See Attached

 

 

 

 

 

 

 

 

 

 

 

 

SCHEDULE 6.01(m)B

    	54

    	 	

    

	[NPEHC 2012 BUDGET]	October 20, 2011

New PEholdco (“NPEHC”) 2012
monthly budget (“Annual Budget”) was developed through a bottom up process augmented by management input. More specifically,
the Budget started from detailed GL level with inputs from each plant manager; then was reviewed by operational manager and FP&A
department based on historical data, industry trend etc. Commodity prices assumptions are based on historical price performances,
recent market dynamics and inputs from commodity traders.

 

ASSUMPTIONS/INPUTS 

 

Facility Operation Status:

 

The Budget assumes Columbia facility, Magic
Valley facility and Stockton facility to continue operations; while Madera facility will remain idle. Should plans change with
regards to the state of the facilities, the budget should be revised to reflect changes. Also, the budget does not build in the
scenario of production slow down, or temporarily shut down responding to various market margin conditions.

 

Production Forecasts:

 

Production forecasts are based on each facility
operation plan/target; denaturant blend ratio is budgeted at 2.40%.

 

Commodity Price Assumptions:

 

Commodity crush margin is assumed
to be 54cpg for the full year, with 45cpg for Q1, 50cpg for Q2 and 60cpg for Q3 and Q4. The seasonality was based on the historical
trend while we believe that it will be lessened given the tighter ethanol demand and supply for 2012. Corn prices are based
on the last 20 trading day average of CBOT corn forward curves; natural gas and basis are based on the latest 30 trading
day average of NYMEX natural gas future contracts and clear-port basis contracts. WDG prices are based on ~80% of corn
value; and syrup prices are based on ~76% of corn value. Please note the risks associated to each commodity given the market
volatility.

 

Chart 1: Commodity Margin (2009-2011
mthly actuals and 2012 estimates)

 

SCHEDULE 6.01(m)B

    	55

    	 	

    

 

		 	2012 
 Budget	 	 	Close - 
 Sept 29	 
	Ethanol $/gal	 	$	2.728	 	 	$	2.750	 
	Corn $/bu	 	$	6.570	 	 	$	6.325	 
	Nat gas $/mmbtu	 	$	4.490	 	 	$	3.747	 
	Commodity CM $/gal	 	$	0.538	 	 	$	0.504	 

 

Commodity Yield Assumptions by Facility:

 

The yields of major commodities are generally
based on historic yield performances, summarized as follows:

 

	Table 2: Commodity Yield Assumptions Summary
	 	 	Corn 	 	 	Co products	 	 	Nat Gas	 
	 		un-denatured gals per corn bushel	 	 	lbs per corn bushel	 	 	mmbtu per un-denatured gal	 
	PECOL	 	2.71	 	 	50.0	 	 	0.020	 
	PEMV	 	2.71	 	 	50.0	 	 	0.021	 
	PES	 	2.71	 	 	50.0	 	 	0.022	 

 

Operating Expenses:

 

Non commodity expense budgets are derived from
plant mangers’ best estimates and reviewed by operational manager. Summary of results are as follows:

 

	Table 3: Non-commodity expenses summary	 	 	 	 	 	 
	 	PECOL	 	PEMV	 	PES	 
	Production MM gals	 	38.4	 	 	62.2	 	 	58.5	 
	Cash Operating Expenses $MM	 	 	 	 	 	 	 	 	 
	Payroll	$	2.33	 	$	2.33	 	$	2.62	 
	Repair and maintenance	$	1.08	 	$	1.18	 	$	1.08	 
	Other operating exp	$	1.01	 	$	1.72	 	$	1.81	 
	Property tax	$	0.32	 	$	0.86	 	$	1.00	 
	Insurance	$	0.21	 	$	0.25	 	$	0.33	 
	SG&A	$	0.14	 	$	0.14	 	$	0.14	 
	Mgmt fee	$	1.02	 	$	1.02	 	$	1.02	 
	Total Cash Operating Exp $MM	$	6.10	 	$	7.49	 	$	8.00	 
	Total Cash Operating Exp $/gal	$	0.17	 	$	0.12	 	$	0.14	 

 

Capital Expenditure:

 

On top of the expenses built in the budget,
we also expect capital expenditures items, which are subject to final approval. We are expecting $4.0M of Capex in total. Please
refer to appendix II and III for a full list of 2012 capital expenditure items.

 

SCHEDULE 6.01(m)B

 

    	56

    	 	

    
 

 

 

PEHC board level SG&A:

 

We assume a reduction in board level SG&A
to $72K each month.

 

Risk Management:

 

The Budget currently does not build in any
risk management costs although we expect brokerage fees and working capital costs, shall PEHC risk management program be approved
and implemented.

 

BUDGET RESULT SUMMARY

 

Financial results of consolidated level are
summarized as follows. Please note that the financial results are highly sensitive to commodity assumptions.

 

	Table 4: 2012 Budget – Consolidated Financial Results
	P&L Summary	2012 Budget
	Production Gallons	 	159.1	 
	Commodity Margin	 	54cpg	
	Total Sales	 	 	$	535.5
	Total Cost of Goods Sold	 	 	 	526.7
	Gross Profit (Loss)	 	 	 	8.8
	Total operating expenses	 	 	 	5.5
	Net operating income (loss)	 	 	 	3.3
	Total other income (expense)	 	 	 	(11.6)
	Net Income (Loss)	 	 	 	(8.3)
	EBITDA $	 	 	$	14.4

 

 

Chart 2: 2012
Budget — Cash Sources/Uses and Ending Cash

 

 

 

SCHEDULE 6.01(m)B

    	57

    	 	

    

 

Variance Analysis:

 

The budget results are highly sensitive to
commodity price changes. Besides the base case, two additional variance scenarios are presented here:

 

Variance I – Assuming commodity margin
down 5cpg each month; other items unchanged

 

Variance II – Assuming corn prices up
$1/bu from January of 2012; other items unchanged; in this case, co product value increased at same rate as corn value increase,
resulting in higher EBITDA

 

		·	Variance II adj. – Assuming corn prices up $1/bu from January
of 2012 while in this case, co product value to increase less than variance II. The reality is more likely in between variance
II and II adj.

***

	
        Exit Facility $MM

 

 

 

	
        Cash Sources & Uses $MM

 

 

SCHEDULE 6.01(m)B

 

    	58

    	 	

    

 

 

 

Appendix I: 2012 Budget
- Financial Statements

Appendix II: 2012 Budget
– Facility Capital Expenditure List

Appendix III: 2012 Budget
– Facility IT Capital Expenditure List

 

SCHEDULE 6.01(m)B

    	59

    	 	

    

Appendix I – 2012 Budget
Financial Statements

New PEHoldco LLC Consolidated

Income Statement/Balance Sheet/Cash
Flow Statements Forecast

Years Ending December 31, 2012

 

	Dec-11	 	Jan-12	 	 	Feb-12	 	 	Mar-12	 	 	Apr-12	 	 	May-12	 	 	Jun-12	 	 	Jul-12	 	 	Aug-12	 	 	Sep-12	 	 	Oct-12	 	 	Nov-12	 	 	Dec-12	 	 	Total
                                                                                                          $	 
	Production Gallons	 	13,569,980	 	 	12,212,982	 	 	13,393,270	 	 	13,008,732	 	 	13,502,185	 	 	12,950,940	 	 	13,569,980	 	 	13,746,689	 	 	13,117,647	 	 	13,713,348	 	 	12,723,106	 	 	13,579,982 	 	 	159,088,840	 
	Income Statement Forecast	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ethanol	$	36,199,860	 	$	33,183,843	 	$	35,440,284	 	$	35,929,195	 	$	36,939,986	 	$	36,016,332	 	$	38,623,125	 	$	37,346,714	 	$	35,903,912	 	$	35,891,675	 	$	33,908,754	 	$	35,581,169	 	$	430,964,849	 
	Co-products	 	9,187,226	 	 	8,268,504	 	 	9,070,261	 	 	8,896,829	 	 	9,243,533	 	 	8,912,887	 	 	9,338,329	 	 	8,801,057	 	 	8,400,950	 	 	8,368,444	 	 	7,755,540	 	 	8,280,345	 	 	104,523,906	 
	Other/CEPIP	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–				
	Total sales	 	45,387,086	 	 	41,452,346	 	 	44,510,545	 	 	44,826,024	 	 	46,183,519	 	 	44,929,219	 	 	47,961,453	 	 	46,147,771	 	 	44,304,862	 	 	44,260,119	 	 	41,664,294	 	 	43,861,513	 	 	535,488,755	 
	Cost of Goods Sold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Raw materials and ingredients	 	42,125,588	 	 	38,514,577	 	 	41,244,970	 	 	40,954,033	 	 	42,143,335	 	 	41,057,645	 	 	42,538,387	 	 	40,778,381	 	 	39,157,035	 	 	38,983,853	 	 	36,787,998	 	 	38,682,786	 	 	482,968,587	 
	Labor, maintenance, supplies	 	1,096,184	 	 	1,073,320	 	 	1,175,884	 	 	1,198,735	 	 	1,116,510	 	 	1,169,735	 	 	1,194,605	 	 	1,074,106	 	 	1,158,333	 	 	1,182,108	 	 	1,059,335	 	 	1,172,110	 	 	13,670,966	 
	Production overhead	 	553,960	 	 	544,214	 	 	550,357	 	 	557,827	 	 	547,963	 	 	591,420	 	 	585,798	 	 	575,427	 	 	587,091	 	 	587,381	 	 	578,317	 	 	577,437	 	 	6,837,192	 
	Depreciation expense - PPE	 	920,442	 	 	921,132	 	 	921,250	 	 	922,044	 	 	922,343	 	 	922,727	 	 	923,440	 	 	923,643	 	 	924,325	 	 	927,255	 	 	924,421	 	 	928,514	 	 	11,081,538	 
	Ethanol marketing fee	 	339,088	 	 	308,425	 	 	331,731	 	 	326,660	 	 	335,704	 	 	325,841	 	 	337,591	 	 	343,667	 	 	328,975	 	 	341,262	 	 	320,466	 	 	338,274	 	 	3,977,684	 
	WDG marketing fee	 	427,876	 	 	385,088	 	 	422,304	 	 	410,179	 	 	425,738	 	 	408,357	 	 	427,876	 	 	431,870	 	 	412,137	 	 	416,397	 	 	386,031	 	 	412,078	 	 	4,965,933	 
	Corn procurement fee	 	273,874	 	 	246,486	 	 	270,307	 	 	262,546	 	 	272,505	 	 	261,380	 	 	273,874	 	 	277,440	 	 	264,744	 	 	276,767	 	 	256,782	 	 	274,075	 	 	3,210,780	 
	Non-cash compensation	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 
	Derivative (gain) loss	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 
	Total cost of goods sold	 	45,737,011	 	 	41,993,243	 	 	44,916,804	 	 	44,632,026	 	 	45,764,098	 	 	44,737,104	 	 	46,281,570	 	 	44,404,535	 	 	42,832,640	 	 	42,715,024	 	 	40,313,350	 	 	42,385,275	 	 	526,712,680	 
	Gross profit	 	(349,924	)	 	(540,896	)	 	(406,259	)	 	193,999	 	 	419,422	 	 	192,115	 	 	1,679,883	 	 	1,743,236	 	 	1,472,222	 	 	1,545,095	 	 	1,350,945	 	 	1,476,238	 	 	8,776,075	 
	SG&A Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	O&M fee	 	304,044	 	 	304,044	 	 	304,044	 	 	304,044	 	 	304,044	 	 	304,044	 	 	304,044	 	 	304,044	 	 	304,044	 	 	304,044	 	 	304,044	 	 	304,044	 	 	3,648,528	 
	Other SG&A at ethanol plants	 	38,917	 	 	38,917	 	 	38,917	 	 	38,917	 	 	38,917	 	 	38,917	 	 	38,917	 	 	38,917	 	 	38,917	 	 	38,917	 	 	38,917	 	 	38,917	 	 	467,000	 
	PEHC Professional Fee (audit/property tax/license fee etc)	 	41,300	 	 	41,300	 	 	41,300	 	 	41,300	 	 	41,300	 	 	41,300	 	 	41,300	 	 	41,300	 	 	41,300	 	 	41,300	 	 	41,300	 	 	41,300	 	 	495,600	 
	Total SG&A expenses	 	384,261	 	 	384,261	 	 	384,261	 	 	384,261	 	 	384,261	 	 	384,261	 	 	384,261	 	 	384,261	 	 	384,261	 	 	384,261	 	 	384,261	 	 	384,261	 	 	4,611,128	 
	Operating income (loss) before special items	 	(734,185	)	 	(925,157	)	 	(790,519	)	 	(190,262	)	 	35,161	 	 	(192,146	)	 	1,295,623	 	 	1,358,975	 	 	1,087,961	 	 	1,160,835	 	 	966,684	 	 	1,091,977	 	 	4,164,947	 
	PEHC Board Level SG&A	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Board	 	7,500	 	 	7,500	 	 	7,500	 	 	7,500	 	 	7,500	 	 	7,500	 	 	7,500	 	 	7,500	 	 	7,500	 	 	7,500	 	 	7,500	 	 	7,500	 	 	90,000	 
	Officer	 	12,500	 	 	12,500	 	 	12,500	 	 	12,500	 	 	12,500	 	 	12,500	 	 	12,500	 	 	12,500	 	 	12,500	 	 	12,500	 	 	12,500	 	 	12,500	 	 	150,000	 
	Advisor	 	15,000	 	 	15,000	 	 	15,000	 	 	15,000	 	 	15,000	 	 	15,000	 	 	15,000	 	 	15,000	 	 	15,000	 	 	15,000	 	 	15,000	 	 	15,000	 	 	180,000	 
	Bank Advisor	 	10,000	 	 	10,000	 	 	10,000	 	 	10,000	 	 	10,000	 	 	10,000	 	 	10,000	 	 	10,000	 	 	10,000	 	 	10,000	 	 	10,000	 	 	10,000	 	 	120,000	 
	Other SG&A	 	15,000	 	 	15,000	 	 	15,000	 	 	15,000	 	 	15,000	 	 	15,000	 	 	15,000	 	 	15,000	 	 	15,000	 	 	15,000	 	 	15,000	 	 	15,000	 	 	180,000	 
	D&O Insurance	 	11,385	 	 	11,385	 	 	11,385	 	 	11,385	 	 	11,385	 	 	11,385	 	 	11,385	 	 	11,385	 	 	11,385	 	 	11,385	 	 	11,385	 	 	11,385	 	 	136,625	 
	Total PEHC Board Level SG&A	 	71,385	 	 	71,385	 	 	71,385	 	 	71,385	 	 	71,385	 	 	71,385	 	 	71,385	 	 	71,385	 	 	71,385	 	 	71,385	 	 	71,385	 	 	71,385	 	 	856,625	 
	Depreciation/Amortization	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Depreciation expense - non-plant	 	2,822	 	 	2,822	 	 	2,822	 	 	2,822	 	 	2,822	 	 	2,822	 	 	2,822	 	 	2,822	 	 	2,822	 	 	2,822	 	 	2,822	 	 	2,822	 	 	33,867	 
	Amortization expense - intangible assets	 	33,333	 	 	33,333	 	 	33,333	 	 	33,333	 	 	33,333	 	 	33,333	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	200,000	 
	Amortization expense - financing costs	 	52,036	 	 	47,001	 	 	52,036	 	 	50,358	 	 	52,036	 	 	50,358	 	 	52,036	 	 	52,036	 	 	50,358	 	 	52,036	 	 	50,358	 	 	52,036	 	 	612,687	 
	Total depreciation/amortization	 	88,192	 	 	83,156	 	 	88,192	 	 	86,513	 	 	88,192	 	 	86,513	 	 	54,859	 	 	54,859	 	 	53,180	 	 	54,859	 	 	53,180	 	 	54,859	 	 	846,554	 
	Interest Expense (Income)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Term Loan A	 	585,081	 	 	528,461	 	 	585,081	 	 	566,208	 	 	585,081	 	 	566,208	 	 	585,081	 	 	585,081	 	 	566,208	 	 	585,081	 	 	566,208	 	 	585,081	 	 	6,888,862	 
	Exit Facility Revolver	 	292,763	 	 	302,122	 	 	297,076	 	 	322,040	 	 	330,235	 	 	341,771	 	 	341,481	 	 	344,580	 	 	324,611	 	 	307,187	 	 	303,792	 	 	282,359	 	 	3,790,018	 
	Bank fee	 	6,500	 	 	6,500	 	 	6,500	 	 	6,500	 	 	6,500	 	 	6,500	 	 	6,500	 	 	6,500	 	 	6,500	 	 	6,500	 	 	6,500	 	 	36,500	 	 	108,000	 
	Interest income	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 
	Total interest expense (income)	 	884,345	 	 	837,083	 	 	888,658	 	 	894,748	 	 	921,816	 	 	914,478	 	 	933,062	 	 	936,162	 	 	897,319	 	 	898,768	 	 	876,500	 	 	903,941	 	 	10,786,880	 
	Net income (loss)	$	(1,778,107	)	$	(1,916,782	)	$	(1,838,754	)	$	(1,242,908	)	$	(1,046,233	)	$	(1,264,523	)	$	236,316	 	$	296,569	 	$	66,077	 	$	135,822	 	$	(34,382	)	$	61,792	 	$	(8,325,113	)
	Plants EBITDA $	$	227,557	 	$	37,275	 	$	172,031	 	$	773,082	 	$	998,804	 	$	771,881	 	$	2,260,362	 	$	2,323,919	 	$	2,053,586	 	$	2,129,389	 	$	1,932,405	 	$	2,061,792	 	$	15,742,084	 
	Consol EBITDA $	$	114,872	 	$	(75,410	)	$	59,346	 	$	660,397	 	$	886,118	 	$	659,196	 	$	2,147,677	 	$	2,211,233	 	$	1,940,901	 	$	2,016,704	 	$	1,819,720	 	$	1,949,106	 	$	14,389,859	 

 

SCHEDULE 6.01(m)B

    	60

    	 	

    

Appendix I-2012 Budget Financial
Statements

New PEHoldco LLC Consolidated

Income Statement/Balance Sheet/Cash
Flow Statements Forecast

Years Ending December 31, 2012

 

	
 
 
	Dec-11	 	Jan-12	 	Feb-12	 	Mar-12	 	Apr-12	 	May-12	 	Jun-12	 	Jul-12	 	Aug-12	 	Sep-12	 	Oct-12	 	Nov-12	 	Dec-12	Total $
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Balance Sheet Forecast	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ASSETS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CURRENT ASSETS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cash and Equivalents	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 
	Accounts Receivable	 	15,488,647	 	 	15,940,447	 	 	14,643,129	 	 	15,650,124	 	 	15,759,325	 	 	16,206,637	 	 	15,794,331	 	 	16,798,569	 	 	16,192,677	 	 	15,584,952	 	 	15,568,617	 	 	14,713,464	 	 	15,437,189	 
	Intercompany Receivable	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 
	Inventory	 	9,307,709	 	 	8,886,192	 	 	8,159,582	 	 	8,732,398	 	 	8,673,879	 	 	8,900,035	 	 	8,700,748	 	 	8,986,383	 	 	8,652,439	 	 	8,319,420	 	 	8,303,835	 	 	7,825,789	 	 	8,252,386	 
	Prepaid Expenses	 	1,121,873	 	 	1,121,873	 	 	1,121,873	 	 	1,121,873	 	 	1,121,873	 	 	1,121,873	 	 	1,121,873	 	 	1,121,873	 	 	1,121,873	 	 	1,121,873	 	 	1,121,873	 	 	1,121,873	 	 	1,121,873	 
	Other Current Assets	 	1,462,496	 	 	1,462,496	 	 	1,462,496	 	 	1,462,496	 	 	1,462,496	 	 	1,462,496	 	 	1,462,496	 	 	1,462,496	 	 	1,462,496	 	 	1,462,496	 	 	1,462,496	 	 	1,462,496	 	 	1,462,496	 
	TOTAL CURRENT ASSETS	 	27,630,725	 	 	27,661,008	 	 	25,637,081	 	 	27,216,890	 	 	27,267,573	 	 	27,941,041	 	 	27,329,448	 	 	28,619,321	 	 	27,679,485	 	 	26,738,741	 	 	26,706,821	 	 	25,373,622	 	 	26,523,944	 
	Property and Equipment Net	 	155,414,668	 	 	154,496,281	 	 	153,825,704	 	 	153,168,373	 	 	152,564,384	 	 	152,025,096	 	 	151,337,924	 	 	150,799,040	 	 	150,194,951	 	 	149,578,932	 	 	149,741,278	 	 	148,841,412	 	 	148,329,099	 
	OTHER ASSETS	 	2,026,931	 	 	1,941,562	 	 	1,861,228	 	 	1,775,858	 	 	1,692,167	 	 	1,606,797	 	 	1,523,106	 	 	1,471,069	 	 	1,419,033	 	 	1,368,675	 	 	1,316,639	 	 	1,266,281	 	 	1,214,244	 
	TOTAL ASSETS	 	185,072,324	 	 	184,098,851	 	 	181,324,012	 	 	182,161,122	 	 	181,524,124	 	 	181,572,935	 	 	180,190,478	 	 	180,889,430	 	 	179,293,469	 	 	177,686,348	 	 	177,764,738	 	 	175,481,315	 	 	176,067,287	 
	LIABILITIES AND EQUITY	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CURRENT LIABILITIES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts Payable	 	4,800,140	 	 	4,757,145	 	 	4,356,111	 	 	4,771,132	 	 	4,634,835	 	 	4,685,133	 	 	4,593,440	 	 	4,775,369	 	 	4,691,392	 	 	4,596,236	 	 	4,846,212	 	 	4,538,276	 	 	4,926,610	 
	Intercompany Payable	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 
	Accrued Payroll & Benefits, Taxes Payable	 	335,749	 	 	335,749	 	 	335,749	 	 	335,749	 	 	335,749	 	 	335,749	 	 	335,749	 	 	335,749	 	 	335,749	 	 	335,749	 	 	335,749	 	 	335,749	 	 	335,749	 
	Other Current Liabilities	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 
	TOTAL CURRENT LIABILITIES	 	5,135,890	 	 	5,092,894	 	 	4,691,860	 	 	5,106,881	 	 	4,970,584	 	 	5,020,882	 	 	4,929,189	 	 	5,111,118	 	 	5,027,142	 	 	4,931,985	 	 	5,181,961	 	 	4,874,025	 	 	5,262,359	 
	Debt	 	51,279,202	 	 	51,279,202	 	 	51,279,202	 	 	51,279,202	 	 	51,279,202	 	 	51,279,202	 	 	51,279,202	 	 	51,279,202	 	 	51,279,202	 	 	51,279,202	 	 	51,279,202	 	 	51,279,202	 	 	51,279,202	 
	Other Long-term Liabilities (1)	 	26,656,596	 	 	27,504,225	 	 	27,047,203	 	 	29,308,046	 	 	30,050,254	 	 	31,094,999	 	 	31,068,759	 	 	31,349,465	 	 	29,540,912	 	 	27,962,870	 	 	27,655,462	 	 	25,714,356	 	 	25,850,201	 
	TOTAL LIABILITIES	 	83,071,688	 	 	83,876,322	 	 	83,018,265	 	 	85,694,129	 	 	86,300,040	 	 	87,395,084	 	 	87,277,150	 	 	87,739,786	 	 	85,847,256	 	 	84,174,057	 	 	84,116,625	 	 	81,867,584	 	 	82,391,763	 
	Additional Paid in Capital	 	115,794,274	 	 	102,000,636	 	 	100,222,529	 	 	98,305,747	 	 	96,466,992	 	 	95,224,084	 	 	94,177,851	 	 	92,913,328	 	 	93,149,644	 	 	93,446,213	 	 	93,512,291	 	 	93,648,113	 	 	93,613,731	 
	Net Income for Year	 	(13,793,638	)	 	(1,778,107	)	 	(1,916,782	)	 	(1,838,754	)	 	(1,242,908	)	 	(1,046,233	)	 	(1,264,523	)	 	236,316	 	 	296,569	 	 	66,077	 	 	135,822	 	 	(34,382	)	 	61,792	 
	TOTAL EQUITY	 	102,000,636	 	 	100,222,529	 	 	98,305,747	 	 	96,466,992	 	 	95,224,084	 	 	94,177,851	 	 	92,913,328	 	 	93,149,644	 	 	93,446,213	 	 	93,512,291	 	 	93,648,113	 	 	93,613,731	 	 	93,675,523	 
	TOTAL LIABILITIES AND EQUITY	 	185,072,324	 	 	184,098,851	 	 	181,324,012	 	 	182,161,122	 	 	181,524,124	 	 	181,572,935	 	 	180,190,478	 	 	180,889,430	 	 	179,293,469	 	 	177,686,348	 	 	177,764,738	 	 	175,481,315	 	 	176,067,287	 
	Working capital	 	22,494,835	 	 	22,568,114	 	 	20,945,221	 	 	22,110,009	 	 	22,296,989	 	 	22,920,159	 	 	22,400,259	 	 	23,508,203	 	 	22,652,343	 	 	21,806,756	 	 	21,524,860	 	 	20,499,597	 	 	21,261,584	 
	Note (1): this does not include $0.8M LOC	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cash Flow Statement	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Operating Activities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total $
	Net income	 	 	 	$	(1,778,107	)	$	(1,916,782	)	$	(1,838,754	)	$	(1,242,908	)	$	(1,046,233	)	$	(1,264,523	)	$	236,316	 	$	296,569	 	$	66,077	 	$	135,822	 	$	(34,382	)	$	61,792	 	$(8,325,113)
	Add back depreciation & amortization	 	 	 	 	1,005,812	 	 	1,001,466	 	 	1,006,620	 	 	1,005,735	 	 	1,007,713	 	 	1,006,418	 	 	975,476	 	 	975,680	 	 	974,683	 	 	979,291	 	 	974,779	 	 	980,551	 	11,894,225
	(Increase) decrease in accounts receivable	 	 	 	 	(451,800	)	 	1,297,317	 	 	(1,006,994	)	 	(109,201	)	 	(447,312	)	 	412,306	 	 	(1,004,238	)	 	605,892	 	 	607,726	 	 	16,334	 	 	855,153	 	 	(723,724	)	51,459
	(Increase) decrease in inventories	 	 	 	 	421,517	 	 	726,610	 	 	(572,815	)	 	58,518	 	 	(226,156	)	 	199,287	 	 	(285,634	)	 	333,944	 	 	333,019	 	 	15,585	 	 	478,046	 	 	(426,597	)	1,055,323
	(Increase) decrease in other current	 	 	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	-
	Increase (decrease) in A/P and accrued	 	 	 	 	(42,995	)	 	(401,034	)	 	415,021	 	 	(136,297	)	 	50,298	 	 	(91,693	)	 	181,929	 	 	(83,976	)	 	(95,157	)	 	249,976	 	 	(307,936	)	 	388,334	 	126,470
	Net cash from (used by) operating activities	 	 	 	 	(845,574	)	 	707,577	 	 	(1,996,923	)	 	(424,153	)	 	(661,690	)	 	261,795	 	 	103,848	 	 	2,128,109	 	 	1,886,347	 	 	1,397,009	 	 	1,965,661	 	 	280,356	 	4,802,363
	Investing Activities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Capital
expenditures	 	 	 	 	(2,055	)	 	(250,555	)	 	(263,920	)	 	(318,055	)	 	(383,055	)	 	(235,555	)	 	(384,555	)	 	(319,555	)	 	(308,305	)	 	(1,089,601	)	 	(24,555	)	 	(416,201	)	(3,995,968)
	Net cash from (used by) investing activities	 	 	 	 	(2,055	)	 	(250,555	)	 	(263,920	)	 	(318,055	)	 	(383,055	)	 	(235,555	)	 	(384,555	)	 	(319,555	)	 	(308,305	)	 	(1,089,601	)	 	(24,555	)	 	(416,201	)	(3,995,968)
	Financing Activities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Proceeds from line of credit	 	 	 	 	847,629	 	 	(457,022	)	 	2,260,843	 	 	742,208	 	 	1,044,745	 	 	(26,240	)	 	280,707	 	 	(1,808,554	)	 	(1,578,042	)	 	(307,408	)	 	(1,941,105	)	 	135,845	 	(806,395)
	Proceeds from term loan	 	 	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	-
	Financing costs	 	 	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	 	–	 	-
	Net cash provided by financing activities	 	 	 	 	847,629	 	 	(457,022	)	 	2,260,843	 	 	742,208	 	 	1,044,745	 	 	(26,240	)	 	280,707	 	 	(1,808,554	)	 	(1,578,042	)	 	(307,408	)	 	(1,941,105	)	 	135,845	 	(806,395)
	Net cash flow	 	 	 	$	(0	)	$	(0	)	$	(0	)	$	0	 	$	(0	)	$	0	 	$	(0	)	$	0	 	$	(0	)	$	0	 	$	0	 	$	(0	)	$(0)
	Cash and investments, beginning balance	 	 	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	250,000
	Cash and investments, ending balance	 	 	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	 	250,000	 	250,000

 

SCHEDULE 6.01(m)B

    	61

    	 	

    

 

CONFIDENTIAL

Pacific Ethanol Holding Company,
LLC 

Income Statement Forecast

Years Ending December 31, 2012

 

 

	Dec-11	 	Jan-12	 	 	Feb-12	 	 	Mar-12	 	 	Apr-12	 	 	May-12	 	 	Jun-12	 	 	Jul-12	 	 	Aug-12	 	 	Sep-12	 	 	Oct-12	 	 	Nov-12	 	 	Dec-12	 	 	Total $	 
	Sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ethanol	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 
	Co-products	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 
	Other/CEPIP	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 
	Total sales	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 
	Cost of Goods Sold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Raw materials and ingredients	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 
	Labor, maintenance, supplies	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 
	Production overhead	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 
	Depreciation expense - PPE	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 
	Ethanol marketing fee	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 
	WDG marketing fee	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 
	Corn procurement fee	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 
	Non-cash compensation	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 
	Derivative (gain) loss	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 
	Total cost of goods sold	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 
	Gross profit	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 
	SG&A Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other SG&A at ethanol plants	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 
	O&M fee	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 
	PEHC Professional Fee (audit/property tax/license fee etc)	 	 	41,300	 	 	 	41,300	 	 	 	41,300	 	 	 	41,300	 	 	 	41,300	 	 	 	41,300	 	 	 	41,300	 	 	 	41,300	 	 	 	41,300	 	 	 	41,300	 	 	 	41,300	 	 	 	41,300	 	 	 	495,600	 
	Total SG&A expenses	 	 	41,300	 	 	 	41,300	 	 	 	41,300	 	 	 	41,300	 	 	 	41,300	 	 	 	41,300	 	 	 	41,300	 	 	 	41,300	 	 	 	41,300	 	 	 	41,300	 	 	 	41,300	 	 	 	41,300	 	 	 	495,600	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	–	 
	Operating income (loss) before special items	 	 	(41,300	)		 	(41,300	)	 	 	(41,300	)	 	 	(41,300	)	 	 	(41,300	)	 	 	(41,300	)	 	 	(41,300	)	 	 	(41,300	)	 	 	(41,300	)	 	 	(41,300	)	 	 	(41,300	)	 	 	(41,300	)	 	 	(495,600	)
	PEHC Board Level SG&A	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Board	 	 	7,500	 	 	 	7,500	 	 	 	7,500	 	 	 	7,500	 	 	 	7,500	 	 	 	7,500	 	 	 	7,500	 	 	 	7,500	 	 	 	7,500	 	 	 	7,500	 	 	 	7,500	 	 	 	7,500	 	 	 	90,000	 
	Officer	 	 	12,500	 	 	 	12,500	 	 	 	12,500	 	 	 	12,500	 	 	 	12,500	 	 	 	12,500	 	 	 	12,500	 	 	 	12,500	 	 	 	12,500	 	 	 	12,500	 	 	 	12,500	 	 	 	12,500	 	 	 	150,000	 
	Advisor	 	 	15,000	 	 	 	15,000	 	 	 	15,000	 	 	 	15,000	 	 	 	15,000	 	 	 	15,000	 	 	 	15,000	 	 	 	15,000	 	 	 	15,000	 	 	 	15,000	 	 	 	15,000	 	 	 	15,000	 	 	 	180,000	 
	Bank Advisor	 	 	10,000	 	 	 	10,000	 	 	 	10,000	 	 	 	10,000	 	 	 	10,000	 	 	 	10,000	 	 	 	10,000	 	 	 	10,000	 	 	 	10,000	 	 	 	10,000	 	 	 	10,000	 	 	 	10,000	 	 	 	120,000	 
	Other SG&A	 	 	15,000	 	 	 	15,000	 	 	 	15,000	 	 	 	15,000	 	 	 	15,000	 	 	 	15,000	 	 	 	15,000	 	 	 	15,000	 	 	 	15,000	 	 	 	15,000	 	 	 	15,000	 	 	 	15,000	 	 	 	180,000	 
	D&O Insurance	 	 	11,385	 	 	 	11,385	 	 	 	11,385	 	 	 	11,385	 	 	 	11,385	 	 	 	11,385	 	 	 	11,385	 	 	 	11,385	 	 	 	11,385	 	 	 	11,385	 	 	 	11,385	 	 	 	11,385	 	 	 	136,625	 
	Total PEHC Board Level SG&A	 	 	71,385	 	 	 	71,385	 	 	 	71,385	 	 	 	71,385	 	 	 	71,385	 	 	 	71,385	 	 	 	71,385	 	 	 	71,385	 	 	 	71,385	 	 	 	71,385	 	 	 	71,385	 	 	 	71,385	 	 	 	856,625	 
	Depreciation/Amortization	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Depreciation expense - non-plant	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Amortization expense - intangible assetstill 06/30/12	 	 	33,333	 	 	 	33,333	 	 	 	33,333	 	 	 	33,333	 	 	 	33,333	 	 	 	33,333	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	200,000	 
	Amortization expense - financing coststill 06/30/13	 	 	52,036	 	 	 	47,001	 	 	 	52,036	 	 	 	50,358	 	 	 	52,036	 	 	 	50,358	 	 	 	52,036	 	 	 	52,036	 	 	 	50,358	 	 	 	52,036	 	 	 	50,358	 	 	 	52,036	 	 	 	612,687	 
	Total depreciation/amortization	 	 	85,370	 	 	 	80,334	 	 	 	85,370	 	 	 	83,691	 	 	 	85,370	 	 	 	83,691	 	 	 	52,036	 	 	 	52,036	 	 	 	50,358	 	 	 	52,036	 	 	 	50,358	 	 	 	52,036	 	 	 	812,687	 
	Interest Expense (Income)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Term Loan A	 	 	585,081	 	 	 	528,461	 	 	 	585,081	 	 	 	566,208	 	 	 	585,081	 	 	 	566,208	 	 	 	585,081	 	 	 	585,081	 	 	 	566,208	 	 	 	585,081	 	 	 	566,208	 	 	 	585,081	 	 	 	6,888,862	 
	Exit Facility Revolver	 	 	292,763	 	 	 	302,122	 	 	 	297,076	 	 	 	322,040	 	 	 	330,235	 	 	 	341,771	 	 	 	341,481	 	 	 	344,580	 	 	 	324,611	 	 	 	307,187	 	 	 	303,792	 	 	 	282,359	 	 	 	3,790,018	 
	Bank fee (bank analysis fee + WF agency fee)	 	 	6,500	 	 	 	6,500	 	 	 	6,500	 	 	 	6,500	 	 	 	6,500	 	 	 	6,500	 	 	 	6,500	 	 	 	6,500	 	 	 	6,500	 	 	 	6,500	 	 	 	6,500	 	 	 	36,500	 	 	 	108,000	 
	Interest income	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total interest expense (income)	 	 	884,345	 	 	 	837,083	 	 	 	888,658	 	 	 	894,748	 	 	 	921,816	 	 	 	914,478	 	 	 	933,062	 	 	 	936,162	 	 	 	897,319	 	 	 	898,768	 	 	 	876,500	 	 	 	903,941	 	 	 	10,786,880	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	–	 
	Net income (loss)	 	$	(1,082,400	)	 	$	(1,030,103	)	 	$	(1,086,713	)	 	$	(1,091,124	)	 	$	(1,119,872	)	 	$	(1,110,855	)	 	$	(1,097,784	)	 	$	(1,100,884	)	 	$	(1,060,362	)	 	$	(1,063,490	)	 	$	(1,039,544	)	 	$	(1,068,663	)	 	$	(12,951,792	)
	EBITDA $ before special items	 	$	(41,300	)	 	$	(41,300	)	 	$	(41,300	)	 	$	(41,300	)	 	$	(41,300	)	 	$	(41,300	)	 	$	(41,300	)	 	$	(41,300	)	 	$	(41,300	)	 	$	(41,300	)	 	$	(41,300	)	 	$	(41,300	)	 	$	(495,600	)

 

SCHEDULE 6.01(m)B

    	62

    	 	

    

CONFIDENTIAL

Pacific Ethanol Columbia, LLC

Income Statement Forecast 

Years Ending December 31, 2012

 

	Dec-11	 	Jan-12	 	 	Feb-12	 	 	Mar-12	 	 	Apr-12	 	 	May-12	 	 	Jun-12	 	 	Jul-12	 	 	Aug-12	 	 	Sep-12	 	 	Oct-12	 	 	Nov-12	 	 	Dec-12	 	 	Total	 
	Sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ethanol	 	$	8,813,676	 	 	$	8,041,604	 	 	$	8,655,243	 	 	$	8,511,156	 	 	$	9,190,521	 	 	$	8,855,717	 	 	$	9,348,728	 	 	$	8,927,074	 	 	$	8,676,036	 	 	$	8,918,797	 	 	$	7,977,748	 	 	$	8,535,399	 	 	$	104,451,699	 
	Co-products	 	 	2,309,798	 	 	 	2,078,818	 	 	 	2,309,798	 	 	 	2,176,688	 	 	 	2,409,905	 	 	 	2,266,554	 	 	 	2,344,711	 	 	 	2,195,056	 	 	 	2,121,888	 	 	 	2,191,440	 	 	 	1,889,394	 	 	 	2,099,327	 	 	 	26,393,378	 
	Other/CEPIP	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total sales	 	 	11,123,474	 	 	 	10,120,421	 	 	 	10,965,040	 	 	 	10,687,844	 	 	 	11,600,426	 	 	 	11,122,271	 	 	 	11,693,439	 	 	 	11,122,130	 	 	 	10,797,924	 	 	 	11,110,237	 	 	 	9,867,143	 	 	 	10,634,726	 	 	 	130,845,077	 
	Cost of Goods Sold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Raw materials and ingredients	 	 	10,238,164	 	 	 	9,329,089	 	 	 	10,073,338	 	 	 	9,691,256	 	 	 	10,492,078	 	 	 	10,088,088	 	 	 	10,297,848	 	 	 	9,748,553	 	 	 	9,456,896	 	 	 	9,688,851	 	 	 	8,638,666	 	 	 	9,286,033	 	 	 	117,028,861	 
	Labor, maintenance, supplies	 	 	321,264	 	 	 	355,439	 	 	 	328,964	 	 	 	399,693	 	 	 	297,513	 	 	 	295,693	 	 	 	391,013	 	 	 	290,513	 	 	 	284,693	 	 	 	398,513	 	 	 	285,693	 	 	 	288,513	 	 	 	3,937,506	 
	Production overhead	 	 	100,544	 	 	 	99,044	 	 	 	101,044	 	 	 	105,044	 	 	 	101,044	 	 	 	142,794	 	 	 	132,497	 	 	 	127,997	 	 	 	137,997	 	 	 	133,997	 	 	 	131,997	 	 	 	127,997	 	 	 	1,441,996	 
	Depreciation expense - PPE	 	 	205,511	 	 	 	205,705	 	 	 	205,872	 	 	 	205,983	 	 	 	206,469	 	 	 	206,087	 	 	 	206,469	 	 	 	206,198	 	 	 	206,538	 	 	 	208,407	 	 	 	206,538	 	 	 	208,476	 	 	 	2,478,253	 
	Ethanol marketing fee	 	 	81,900	 	 	 	74,743	 	 	 	80,461	 	 	 	77,058	 	 	 	83,184	 	 	 	79,781	 	 	 	81,278	 	 	 	81,687	 	 	 	79,372	 	 	 	84,325	 	 	 	75,281	 	 	 	80,461	 	 	 	959,531	 
	WDG marketing fee	 	 	103,027	 	 	 	92,724	 	 	 	103,027	 	 	 	96,158	 	 	 	106,461	 	 	 	99,592	 	 	 	103,027	 	 	 	103,027	 	 	 	99,592	 	 	 	107,547	 	 	 	92,724	 	 	 	103,027	 	 	 	1,209,933	 
	Corn procurement fee	 	 	65,945	 	 	 	59,350	 	 	 	65,945	 	 	 	61,549	 	 	 	68,143	 	 	 	63,747	 	 	 	65,945	 	 	 	65,945	 	 	 	63,747	 	 	 	68,838	 	 	 	59,350	 	 	 	65,945	 	 	 	774,450	 
	Non-cash compensation	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Derivative (gain) loss	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total cost of goods sold	 	 	11,116,354	 	 	 	10,216,094	 	 	 	10,958,651	 	 	 	10,636,740	 	 	 	11,354,892	 	 	 	10,975,782	 	 	 	11,278,078	 	 	 	10,623,920	 	 	 	10,328,836	 	 	 	10,690,479	 	 	 	9,490,251	 	 	 	10,160,453	 	 	 	127,830,530	 
	Gross profit	 	 	7,120	 	 	 	(95,673	)	 	 	6,390	 	 	 	51,104	 	 	 	245,534	 	 	 	146,489	 	 	 	415,362	 	 	 	498,211	 	 	 	469,088	 	 	 	419,758	 	 	 	376,892	 	 	 	474,273	 	 	 	3,014,546	 
	SG&A Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	O&M fee	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	1,017,132	 
	Other SG&A at ethanol plants	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	144,000	 
	PEHC Professional Fee (audit/property tax/license fee etc)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total SG&A expenses	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	1,161,132	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	–	 
	Operating income (loss) before special items	 	 	(89,641	)	 	 	(192,434	)	 	 	(90,371	)	 	 	(45,657	)	 	 	148,773	 	 	 	49,728	 	 	 	318,601	 	 	 	401,450	 	 	 	372,327	 	 	 	322,997	 	 	 	280,131	 	 	 	377,512	 	 	 	1,853,414	 
	PEHC Board Level SG&A	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Board	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Officer	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Advisor	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Bank Advisor	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Other SG&A	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	D&O Insurance	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total PEHC Board Level SG&A	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Depreciation/Amortization	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Depreciation expense - non-plant	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 	 	 	13,678	 
	Amortization expense	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total depreciation/amortization	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 	 	 	13,678	 
	Interest Expense (Income)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Term Loan A	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Exit Facility Revolver	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Bank fee	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Interest income	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total interest expense (income)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	–	 
	Net income (loss)	 	$	(90,781	)	 	$	(193,574	)	 	$	(91,511	)	 	$	(46,797	)	 	$	147,633	 	 	$	48,588	 	 	$	317,461	 	 	$	400,310	 	 	$	371,187	 	 	$	321,858	 	 	$	278,991	 	 	$	376,372	 	 	$	1,839,737	 
	EBITDA $ before special items	 	$	115,869	 	 	$	13,271	 	 	$	115,500	 	 	$	160,326	 	 	$	355,242	 	 	$	255,815	 	 	$	525,070	 	 	$	607,648	 	 	$	578,865	 	 	$	531,404	 	 	$	486,669	 	 	$	585,988	 	 	$	4,331,668	 

 

SCHEDULE 6.01(m)B

    	63

    	 	

    

CONFIDENTIAL

Pacific Ethanol Magic Valley,
LLC 

Income Statement Forecast

Years Ending December 31, 2012

 

	Dec-11	 	Jan-12	 	 	Feb-12	 	 	Mar-12	 	 	Apr-12	 	 	May-12	 	 	Jun-12	 	 	Jul-12	 	 	Aug-12	 	 	Sep-12	 	 	Oct-12	 	 	Nov-12	 	 	Dec-12	 	 	Total $	 
	Sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ethanol	 	$	13,926,509	 	 	$	12,792,477	 	 	$	13,492,885	 	 	$	13,955,745	 	 	$	13,959,878	 	 	$	14,026,103	 	 	$	14,992,464	 	 	$	14,710,741	 	 	$	13,904,493	 	 	$	13,770,079	 	 	$	13,012,811	 	 	$	14,181,034	 	 	$	166,725,219	 
	Co-products	 	 	3,508,952	 	 	 	3,158,057	 	 	 	3,391,987	 	 	 	3,428,996	 	 	 	3,428,996	 	 	 	3,449,752	 	 	 	3,568,709	 	 	 	3,422,983	 	 	 	3,202,145	 	 	 	3,148,716	 	 	 	2,938,801	 	 	 	3,253,673	 	 	 	39,901,768	 
	Other/CEPIP	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total sales	 	 	17,435,461	 	 	 	15,950,534	 	 	 	16,884,872	 	 	 	17,384,742	 	 	 	17,388,874	 	 	 	17,475,855	 	 	 	18,561,173	 	 	 	18,133,724	 	 	 	17,106,638	 	 	 	16,918,795	 	 	 	15,951,612	 	 	 	17,434,706	 	 	 	206,626,986	 
	Cost of Goods Sold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Raw materials and ingredients	 	 	16,240,598	 	 	 	14,892,242	 	 	 	15,732,549	 	 	 	15,928,142	 	 	 	15,930,855	 	 	 	16,011,602	 	 	 	16,513,096	 	 	 	16,070,736	 	 	 	15,182,883	 	 	 	14,978,965	 	 	 	14,157,515	 	 	 	15,454,026	 	 	 	187,093,208	 
	Labor, maintenance, supplies	 	 	333,078	 	 	 	321,694	 	 	 	383,078	 	 	 	382,699	 	 	 	396,608	 	 	 	407,699	 	 	 	356,608	 	 	 	336,608	 	 	 	382,699	 	 	 	336,608	 	 	 	332,699	 	 	 	386,608	 	 	 	4,356,685	 
	Production overhead	 	 	165,291	 	 	 	164,648	 	 	 	165,077	 	 	 	165,077	 	 	 	165,077	 	 	 	165,077	 	 	 	165,291	 	 	 	165,505	 	 	 	165,077	 	 	 	165,291	 	 	 	164,863	 	 	 	165,505	 	 	 	1,981,780	 
	Depreciation expense - PPE	 	 	255,432	 	 	 	255,553	 	 	 	255,574	 	 	 	255,854	 	 	 	255,792	 	 	 	256,197	 	 	 	256,194	 	 	 	256,307	 	 	 	256,551	 	 	 	256,738	 	 	 	256,648	 	 	 	256,866	 	 	 	3,073,707	 
	Ethanol marketing fee	 	 	132,532	 	 	 	119,279	 	 	 	128,115	 	 	 	128,115	 	 	 	128,115	 	 	 	128,115	 	 	 	132,532	 	 	 	136,950	 	 	 	128,115	 	 	 	132,532	 	 	 	123,697	 	 	 	136,950	 	 	 	1,555,046	 
	WDG marketing fee	 	 	167,156	 	 	 	150,440	 	 	 	161,584	 	 	 	161,584	 	 	 	161,584	 	 	 	161,584	 	 	 	167,156	 	 	 	171,149	 	 	 	160,107	 	 	 	157,436	 	 	 	146,940	 	 	 	162,684	 	 	 	1,929,402	 
	Corn procurement fee	 	 	106,992	 	 	 	96,293	 	 	 	103,426	 	 	 	103,426	 	 	 	103,426	 	 	 	103,426	 	 	 	106,992	 	 	 	110,559	 	 	 	103,426	 	 	 	106,992	 	 	 	99,860	 	 	 	110,559	 	 	 	1,255,377	 
	Non-cash compensation	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Derivative (gain) loss	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total cost of goods sold	 	 	17,401,080	 	 	 	16,000,149	 	 	 	16,929,403	 	 	 	17,124,896	 	 	 	17,141,456	 	 	 	17,233,698	 	 	 	17,697,869	 	 	 	17,247,815	 	 	 	16,378,858	 	 	 	16,134,562	 	 	 	15,282,221	 	 	 	16,673,198	 	 	 	201,245,206	 
	Gross profit	 	 	34,381	 	 	 	(49,615	)	 	 	(44,531	)	 	 	259,846	 	 	 	247,419	 	 	 	242,156	 	 	 	863,304	 	 	 	885,909	 	 	 	727,780	 	 	 	784,233	 	 	 	669,391	 	 	 	761,509	 	 	 	5,381,781	 
	SG&A Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	O&M fee	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	1,017,132	 
	Other SG&A at ethanol plants	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	144,000	 
	PEHC Professional Fee (audit/property tax/license fee etc)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total SG&A expenses	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	1,161,132	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	–	 
	Operating income (loss) before special items	 	 	(62,380	)	 	 	(146,376	)	 	 	(141,292	)	 	 	163,085	 	 	 	150,658	 	 	 	145,395	 	 	 	766,543	 	 	 	789,148	 	 	 	631,019	 	 	 	687,472	 	 	 	572,630	 	 	 	664,748	 	 	 	4,220,649	 
	PEHC Board Level SG&A	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	–	 
	Board	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Officer	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Advisor	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Bank Advisor	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Other SG&A	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	D&O Insurance	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total PEHC Board Level SG&A	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Depreciation/Amortization	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Depreciation expense - non-plant	 	 	370	 	 	 	370	 	 	 	370	 	 	 	370	 	 	 	370	 	 	 	370	 	 	 	370	 	 	 	370	 	 	 	370	 	 	 	370	 	 	 	370	 	 	 	370	 	 	 	4,445	 
	Amortization expense	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total depreciation/amortization	 	 	370	 	 	 	370	 	 	 	370	 	 	 	370	 	 	 	370	 	 	 	370	 	 	 	370	 	 	 	370	 	 	 	370	 	 	 	370	 	 	 	370	 	 	 	370	 	 	 	4,445	 
	Interest Expense (Income)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Term Loan A	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Exit Facility Revolver	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Bank fee	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Interest income	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total interest expense (income)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	–	 
	Net income (loss)	 	$	(62,750	)	 	$	(146,747	)	 	$	(141,663	)	 	$	162,715	 	 	$	150,287	 	 	$	145,025	 	 	$	766,172	 	 	$	788,777	 	 	$	630,649	 	 	$	687,101	 	 	$	572,260	 	 	$	664,377	 	 	$	4,216,203	 
	EBITDA $ before special items	 	$	193,053	 	 	$	109,177	 	 	$	114,282	 	 	$	418,939	 	 	$	406,449	 	 	$	401,592	 	 	$	1,022,737	 	 	$	1,045,455	 	 	$	887,570	 	 	$	944,210	 	 	$	829,278	 	 	$	921,613	 	 	$	7,294,356	 

 

SCHEDULE 6.01(m)B

	64

    	 	

    

CONFIDENTIAL

Pacific Ethanol Stockton, LLC

Income Statement Forecast

Years Ending December 31, 2012

 

	Dec-11	 	Jan-12	 	 	Feb-12	 	 	Mar-12	 	 	Apr-12	 	 	May-12	 	 	Jun-12	 	 	Jul-12	 	 	Aug-12	 	 	Sep-12	 	 	Oct-12	 	 	Nov-12	 	 	Dec-12	 	 	Total $	 
	Sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ethanol	 	$	13,459,674	 	 	$	12,349,762	 	 	 	13,292,156	 	 	$	13,462,294	 	 	$	13,789,587	 	 	$	13,134,512	 	 	$	14,281,933	 	 	$	13,708,900	 	 	$	13,323,383	 	 	$	13,202,799	 	 	$	12,918,195	 	 	$	12,864,736	 	 	$	159,787,931	 
	Co-products	 	 	3,368,477	 	 	 	3,031,629	 	 	 	3,368,477	 	 	 	3,291,144	 	 	 	3,404,632	 	 	 	3,196,581	 	 	 	3,424,908	 	 	 	3,183,018	 	 	 	3,076,917	 	 	 	3,028,288	 	 	 	2,927,345	 	 	 	2,927,345	 	 	 	38,228,761	 
	Other/CEPIP	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total sales	 	 	16,828,151	 	 	 	15,381,391	 	 	 	16,660,633	 	 	 	16,753,438	 	 	 	17,194,219	 	 	 	16,331,094	 	 	 	17,706,841	 	 	 	16,891,917	 	 	 	16,400,300	 	 	 	16,231,087	 	 	 	15,845,540	 	 	 	15,792,081	 	 	 	198,016,692	 
	Cost of Goods Sold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Raw materials and ingredients	 	 	15,636,161	 	 	 	14,282,581	 	 	 	15,428,417	 	 	 	15,323,971	 	 	 	15,709,736	 	 	 	14,947,290	 	 	 	15,716,778	 	 	 	14,948,427	 	 	 	14,506,591	 	 	 	14,305,372	 	 	 	13,981,152	 	 	 	13,932,061	 	 	 	178,718,538	 
	Labor, maintenance, supplies	 	 	377,205	 	 	 	335,978	 	 	 	399,205	 	 	 	351,854	 	 	 	356,381	 	 	 	401,854	 	 	 	356,381	 	 	 	356,381	 	 	 	401,854	 	 	 	356,381	 	 	 	351,854	 	 	 	406,381	 	 	 	4,451,707	 
	Production overhead	 	 	204,964	 	 	 	197,361	 	 	 	198,516	 	 	 	204,546	 	 	 	198,681	 	 	 	197,829	 	 	 	204,849	 	 	 	198,764	 	 	 	198,296	 	 	 	204,931	 	 	 	198,296	 	 	 	198,214	 	 	 	2,405,247	 
	Depreciation expense - PPE	 	 	279,716	 	 	 	280,091	 	 	 	280,022	 	 	 	280,425	 	 	 	280,300	 	 	 	280,661	 	 	 	280,994	 	 	 	281,355	 	 	 	281,453	 	 	 	282,328	 	 	 	281,453	 	 	 	283,390	 	 	 	3,372,187	 
	Ethanol marketing fee	 	 	124,655	 	 	 	114,403	 	 	 	123,155	 	 	 	121,488	 	 	 	124,405	 	 	 	117,945	 	 	 	123,780	 	 	 	125,031	 	 	 	121,488	 	 	 	124,405	 	 	 	121,488	 	 	 	120,863	 	 	 	1,463,107	 
	WDG marketing fee	 	 	157,694	 	 	 	141,924	 	 	 	157,694	 	 	 	152,437	 	 	 	157,694	 	 	 	147,181	 	 	 	157,694	 	 	 	157,694	 	 	 	152,437	 	 	 	151,414	 	 	 	146,367	 	 	 	146,367	 	 	 	1,826,599	 
	Corn procurement fee	 	 	100,936	 	 	 	90,843	 	 	 	100,936	 	 	 	97,572	 	 	 	100,936	 	 	 	94,207	 	 	 	100,936	 	 	 	100,936	 	 	 	97,572	 	 	 	100,936	 	 	 	97,572	 	 	 	97,572	 	 	 	1,180,954	 
	Non-cash compensation	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Derivative (gain) loss	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total cost of goods sold	 	 	16,881,332	 	 	 	15,443,181	 	 	 	16,687,946	 	 	 	16,532,293	 	 	 	16,928,133	 	 	 	16,186,967	 	 	 	16,941,411	 	 	 	16,168,588	 	 	 	15,759,691	 	 	 	15,525,768	 	 	 	15,178,182	 	 	 	15,184,847	 	 	 	193,418,339	 
	Gross profit	 	 	(53,181	)	 	 	(61,790	)	 	 	(27,313	)	 	 	221,145	 	 	 	266,085	 	 	 	144,127	 	 	 	765,430	 	 	 	723,330	 	 	 	640,609	 	 	 	705,319	 	 	 	667,358	 	 	 	607,234	 	 	 	4,598,353	 
	SG&A Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	O&M fee	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	84,761	 	 	 	1,017,132	 
	Other SG&A at ethanol plants	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	12,000	 	 	 	144,000	 
	PEHC Professional Fee (audit/property tax/license fee etc)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total SG&A expenses	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	96,761	 	 	 	1,161,132	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	–	 
	Operating income (loss) before special items	 	 	(149,942	)	 	 	(158,551	)	 	 	(124,074	)	 	 	124,384	 	 	 	169,324	 	 	 	47,366	 	 	 	668,669	 	 	 	626,569	 	 	 	543,848	 	 	 	608,558	 	 	 	570,597	 	 	 	510,473	 	 	 	3,437,221	 
	PEHC Board Level SG&A	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	–	 
	Board	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Officer	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Advisor	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Bank Advisor	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Other SG&A	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	D&O Insurance	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total PEHC Board Level SG&A	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Depreciation/Amortization	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Depreciation expense - non-plant	 	 	959	 	 	 	959	 	 	 	959	 	 	 	959	 	 	 	959	 	 	 	959	 	 	 	959	 	 	 	959	 	 	 	959	 	 	 	959	 	 	 	959	 	 	 	959	 	 	 	11,508	 
	Amortization expense	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total depreciation/amortization	 	 	959	 	 	 	959	 	 	 	959	 	 	 	959	 	 	 	959	 	 	 	959	 	 	 	959	 	 	 	959	 	 	 	959	 	 	 	959	 	 	 	959	 	 	 	959	 	 	 	11,508	 
	Interest Expense (Income)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Term Loan A	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Exit Facility Revolver	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Bank fee	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Interest income	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total interest expense (income)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	–	 
	Net income (loss)	 	 	(150,901	)	 	 	(159,510	)	 	 	(125,033	)	 	 	123,425	 	 	$	168,365	 	 	$	46,407	 	 	$	667,710	 	 	$	625,610	 	 	$	542,889	 	 	$	607,599	 	 	$	569,638	 	 	$	509,514	 	 	$	3,425,713	 
	EBITDA $ before special items	 	$	129,774	 	 	$	121,540	 	 	 	155,948	 	 	$	404,809	 	 	$	449,624	 	 	$	328,027	 	 	$	949,663	 	 	$	907,924	 	 	$	825,300	 	 	$	890,886	 	 	$	852,050	 	 	$	793,862	 	 	$	6,809,408	 

 

SCHEDULE 6.01(m)B

    	65

    	 	

    

CONFIDENTIAL

Pacific Ethanol Madera, LLC

Income Statement Forecast

Years Ending December 31, 2012

 

	Dec-11	 	Jan-12	 	 	Feb-12	 	 	Mar-12	 	 	Apr-12	 	 	May-12	 	 	Jun-12	 	 	Jul-12	 	 	Aug-12	 	 	Sep-12	 	 	Oct-12	 	 	Nov-12	 	 	Dec-12	 	 	Total $	 
	Sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ethanol	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 
	Coproducts	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Other/CEPIP	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost of Goods Sold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Raw materials and ingredients	 	 	10,665	 	 	 	10,665	 	 	 	10,665	 	 	 	10,665	 	 	 	10,665	 	 	 	10,665	 	 	 	10,665	 	 	 	10,665	 	 	 	10,665	 	 	 	10,665	 	 	 	10,665	 	 	 	10,665	 	 	 	127,980	 
	Labor, maintenance, supplies	 	 	64,636	 	 	 	60,210	 	 	 	64,636	 	 	 	64,489	 	 	 	66,008	 	 	 	64,489	 	 	 	90,604	 	 	 	90,605	 	 	 	89,086	 	 	 	90,607	 	 	 	89,088	 	 	 	90,609	 	 	 	925,067	 
	Production overhead	 	 	83,161	 	 	 	83,161	 	 	 	85,721	 	 	 	83,161	 	 	 	83,161	 	 	 	85,721	 	 	 	83,161	 	 	 	83,161	 	 	 	85,721	 	 	 	83,161	 	 	 	83,161	 	 	 	85,721	 	 	 	1,008,169	 
	Depreciation expense - PPE	 	 	179,783	 	 	 	179,783	 	 	 	179,783	 	 	 	179,783	 	 	 	179,783	 	 	 	179,783	 	 	 	179,783	 	 	 	179,783	 	 	 	179,783	 	 	 	179,783	 	 	 	179,783	 	 	 	179,783	 	 	 	2,157,390	 
	Ethanol marketing fee	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	WDG marketing fee	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Corn procurement fee	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Non-cash compensation	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Derivative (gain) loss	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total cost of goods sold	 	 	338,244	 	 	 	333,818	 	 	 	340,804	 	 	 	338,097	 	 	 	339,617	 	 	 	340,657	 	 	 	364,212	 	 	 	364,213	 	 	 	365,255	 	 	 	364,215	 	 	 	362,697	 	 	 	366,777	 	 	 	4,218,606	 
	Gross profit	 	 	(338,244	)	 	 	(333,818	)	 	 	(340,804	)	 	 	(338,097	)	 	 	(339,617	)	 	 	(340,657	)	 	 	(364,212	)	 	 	(364,213	)	 	 	(365,255	)	 	 	(364,215	)	 	 	(362,697	)	 	 	(366,777	)	 	 	(4,218,606	)
	SG&A Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	O&M fee	 	 	49,761	 	 	 	49,761	 	 	 	49,761	 	 	 	49,761	 	 	 	49,761	 	 	 	49,761	 	 	 	49,761	 	 	 	49,761	 	 	 	49,761	 	 	 	49,761	 	 	 	49,761	 	 	 	49,761	 	 	 	597,132	 
	Other SG&A at ethanol plants	 	 	2,917	 	 	 	2,917	 	 	 	2,917	 	 	 	2,917	 	 	 	2,917	 	 	 	2,917	 	 	 	2,917	 	 	 	2,917	 	 	 	2,917	 	 	 	2,917	 	 	 	2,917	 	 	 	2,917	 	 	 	35,000	 
	PEHC Professional Fee (audit/property tax/license fee etc)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total SG&A expenses	 	 	52,678	 	 	 	52,678	 	 	 	52,678	 	 	 	52,678	 	 	 	52,678	 	 	 	52,678	 	 	 	52,678	 	 	 	52,678	 	 	 	52,678	 	 	 	52,678	 	 	 	52,678	 	 	 	52,678	 	 	 	632,132	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	–	 
	Operating income (loss) before special items	 	 	(390,922	)	 	 	(386,496	)	 	 	(393,482	)	 	 	(390,774	)	 	 	(392,294	)	 	 	(393,334	)	 	 	(416,890	)	 	 	(416,891	)	 	 	(417,932	)	 	 	(416,893	)	 	 	(415,374	)	 	 	(419,455	)	 	 	(4,850,738	)
	PEHC Board Level SG&A	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	–	 
	Board	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Officer	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Advisor	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Bank Advisor	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Other SG&A	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	D&O Insurance	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total PEHC Board Level SG&A	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Depreciation/Amortization	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Depreciation expense - non-plant	 	 	353	 	 	 	353	 	 	 	353	 	 	 	353	 	 	 	353	 	 	 	353	 	 	 	353	 	 	 	353	 	 	 	353	 	 	 	353	 	 	 	353	 	 	 	353	 	 	 	4,236	 
	Amortization expense	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total depreciation/amortization	 	 	353	 	 	 	353	 	 	 	353	 	 	 	353	 	 	 	353	 	 	 	353	 	 	 	353	 	 	 	353	 	 	 	353	 	 	 	353	 	 	 	353	 	 	 	353	 	 	 	4,236	 
	Interest Expense (Income)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Term Loan A	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Exit Facility Revolver	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Bank fee	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Interest income	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Total interest expense (income)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	–	 
	Net income (loss)	 	$	(391,275	)	 	$	(386,849	)	 	$	(393,835	)	 	$	(391,127	)	 	$	(392,647	)	 	$	(393,687	)	 	$	(417,243	)	 	$	(417,244	)	 	$	(418,285	)	 	$	(417,246	)	 	$	(415,727	)	 	$	(419,808	)	 	$	(4,854,974	)
	EBITDA $ before special items	 	$	(211,139	)	 	$	(206,713	)	 	$	(213,699	)	 	$	(210,992	)	 	$	(212,512	)	 	$	(213,552	)	 	$	(237,107	)	 	$	(237,108	)	 	$	(238,150	)	 	$	(237,110	)	 	$	(235,592	)	 	$	(239,672	)	 	$	(2,693,348	)

 

SCHEDULE 6.01(m)B

    	66

    	 	

    

Appendix II_2012 Capital Expenditure
Plan [Cash Payment Schedule]

 

Capital Projects

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PEMV	 	 	Budget	 	 	 	 	 	 	 	Jan	 	 	 	Feb	 	 	 	Mar	 	 	 	Apr	 	 	 	May	 	 	 	Jun	 	 	 	Jul	 	 	 	Aug	 	 	 	Sep	 	 	 	Oct	 	 	 	Nov	 	 	 	Dec	 
	Replace 930 front end loader	 	 	–	 	 	 	 	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Replace air compressor at corn train load-out	 	 	25,000	 	 	 	1	 	 	 	 	 	 	 	25,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Replace Urea Tank	 	 	20,000	 	 	 	1	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	20,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Build office space for Commodities	 	 	7,500	 	 	 	1	 	 	 	 	 	 	 	7,500	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Build office space for Utility Operators	 	 	7,500	 	 	 	1	 	 	 	 	 	 	 	 	 	 	 	7,500	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Condenser for PC Tank vapor	 	 	15,000	 	 	 	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	15,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Seal up or replace Whole Stillage screens	 	 	20,000	 	 	 	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	20,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Add catwalks around tops of boilers	 	 	20,000	 	 	 	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	20,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Install water treatment system for back-end water recov	 	 	225,000	 	 	 	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	100,000	 	 	 	125,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Add cameras around plant site	 	 	15,000	 	 	 	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	15,000	 	 	 	 	 	 	 	 	 
	Plant triage	 	 	65,000	 	 	 	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	65,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Inductive Automation (historian)	 	 	20,000	 	 	 	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	20,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ungrade expansion joints and make pipe alignment corr	 	 	75,000	 	 	 	2	 	 	 	 	 	 	 	7,500	 	 	 	7,500	 	 	 	7,500	 	 	 	7,500	 	 	 	7,500	 	 	 	7,500	 	 	 	7,500	 	 	 	7,500	 	 	 	7,500	 	 	 	7,500	 	 	 	 	 
	Capital spares	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pogo' for corn train load-out	 	 	15,000	 	 	 	1	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	15,000	 	 	 	–	 
	Gearboxes for corn delivery conveyors	 	 	17,500	 	 	 	1	 	 	 	 	 	 	 	3,500	 	 	 	3,500	 	 	 	3,500	 	 	 	3,500	 	 	 	3,500	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other Capital spares	 	 	67,500	 	 	 	2	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	33,750	 	 	 	 	 	 	 	 	 	 	 	33,750	 
	Refrigeration system for cream yeast	 	 	75,000	 	 	 	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	75,000	 	 	 	 	 	 	 	 	 	 	 	 	 
	PEMV Totals	 	$	690,000	 	 	 	 	 	 	$	–	 	 	$	43,500	 	 	$	18,500	 	 	$	96,000	 	 	$	66,000	 	 	$	111,000	 	 	$	132,500	 	 	$	27,500	 	 	$	116,250	 	 	$	22,500	 	 	$	22,500	 	 	$	33,750	 
	PECOL	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expansion joints & Piping Upgrade	 	 	80,000	 	 	 	1	 	 	 	 	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	80,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Replace telescoping boom lift	 	 	75,000	 	 	 	1	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	75,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Corn truck loading upgrades	 	 	75,000	 	 	 	1	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	75,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Plant Triage	 	 	65,000	 	 	 	1	 	 	 	–	 	 	 	 	 	 	 	65,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Pump suction knock out pots	 	 	25,000	 	 	 	1	 	 	 	–	 	 	 	25,000	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Pump suction knock out pots	 	 	25,000	 	 	 	1	 	 	 	–	 	 	 	25,000	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Syrup solids density meter	 	 	20,000	 	 	 	1	 	 	 	–	 	 	 	–	 	 	 	20,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Inductive Automation (historian)	 	 	20,000	 	 	 	1	 	 	 	–	 	 	 	 	 	 	 	20,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Replace Kawasaki Mule	 	 	12,000	 	 	 	1	 	 	 	–	 	 	 	12,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 
	Reconfigure evaporators	 	 	350,000	 	 	 	2	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	350,000	 	 	 	–	 	 	 	–	 
	Beer column burp tank	 	 	325,000	 	 	 	2	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	325,000	 	 	 	–	 	 	 	–	 
	Captial Spares	 	 	100,000	 	 	 	2	 	 	 	–	 	 	 	–	 	 	 	25,000	 	 	 	–	 	 	 	–	 	 	 	25,000	 	 	 	–	 	 	 	–	 	 	 	25,000	 	 	 	–	 	 	 	–	 	 	 	25,000	 
	Centrifuge crane extentsion	 	 	25,000	 	 	 	2	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	25,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Burden carrier	 	 	8,000	 	 	 	2	 	 	 	–	 	 	 	8,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	PPE & Clock In Building	 	 	60,000	 	 	 	3	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	60,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Corn bin laser level system	 	 	40,000	 	 	 	3	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	40,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Storage unit for safety/file storage	 	 	12,500	 	 	 	3	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	12,500	 	 	 	–	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PECOL Totals	 	$	1,317,500	 	 	 	 	 	 	$	–	 	 	$	70,000	 	 	$	130,000	 	 	$	100,000	 	 	$	215,000	 	 	$	37,500	 	 	$	–	 	 	$	40,000	 	 	$	25,000	 	 	$	675,000	 	 	$	–	 	 	$	25,000	 
	PES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Plant Triage	 	 	65,000	 	 	 	1	 	 	 	–	 	 	 	65,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Expansion joints & Piping Upgrade	 	 	50,000	 	 	 	1	 	 	 	 	 	 	 	 	 	 	 	–	 	 	 	50,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Piping support upgrades	 	 	40,000	 	 	 	1	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	20,000	 	 	 	–	 	 	 	20,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Corn bin laser level system	 	 	40,000	 	 	 	1	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	40,000	 	 	 	–	 	 	 	–	 	 	 	–	 
	catwalk above boiler for steam valve isolation	 	 	30,000	 	 	 	1	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	30,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Syrup solids density meter	 	 	30,000	 	 	 	1	 	 	 	–	 	 	 	–	 	 	 	30,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Pump suction knock out pots	 	 	25,000	 	 	 	1	 	 	 	–	 	 	 	25,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	cooling tower louvers	 	 	30,000	 	 	 	1	 	 	 	–	 	 	 	–	 	 	 	30,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Inductive Automation (historian)	 	 	20,000	 	 	 	1	 	 	 	–	 	 	 	20,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Isolate rectifier from beer column for CIP	 	 	15,000	 	 	 	1	 	 	 	–	 	 	 	–	 	 	 	15,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	catwalk in DDE for Steam valve isolation	 	 	10,000	 	 	 	1	 	 	 	–	 	 	 	–	 	 	 	10,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Spare Centrifuge	 	 	500,000	 	 	 	2	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	250,000	 	 	 	250,000	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	–	 
	Evaporator process conversion	 	 	350,000	 	 	 	2	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	 	 	 	 	–	 	 	 	350,000	 	 	 	–	 	 	 	–	 
	Beer column burp tank	 	 	325,000	 	 	 	2	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	325,000	 
	Assorted Capital Spares	 	 	100,000	 	 	 	2	 	 	 	–	 	 	 	–	 	 	 	25,000	 	 	 	–	 	 	 	–	 	 	 	25,000	 	 	 	–	 	 	 	–	 	 	 	25,000	 	 	 	 	 	 	 	–	 	 	 	25,000	 
	FM Global recommendations for water flow improvements on fire system	 	 	100,000	 	 	 	2	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	100,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	CIP recovery system to discharge solids and recover caustic	 	 	100,000	 	 	 	2	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	100,000	 	 	 	–	 	 	 	–	 	 	 	–	 
	Outdoor storage/cover for parts and consumables	 	 	40,000	 	 	 	2	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	40,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Density control for final ethanol moisture control	 	 	25,000	 	 	 	2	 	 	 	–	 	 	 	25,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	reclaim line to beer well to accept offspec wine	 	 	20,000	 	 	 	2	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	20,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Bin sweeps	 	 	–	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Slurry density meter	 	 	–	 	 	 	 	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	PES Totals	 	$	1,915,000	 	 	 	 	 	 	$	–	 	 	$	135,000	 	 	$	110,000	 	 	$	120,000	 	 	$	100,000	 	 	$	85,000	 	 	$	250,000	 	 	$	250,000	 	 	$	165,000	 	 	$	350,000	 	 	$	–	 	 	$	350,000	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	GRAND TOTAL	 	$	3,922,500	 	 	 	 	 	 	$	–	 	 	$	248,500	 	 	$	258,500	 	 	$	316,000	 	 	$	381,000	 	 	$	233,500	 	 	$	382,500	 	 	$	317,500	 	 	$	306,250	 	 	$	1,047,500	 	 	$	22,500	 	 	$	408,750	 

 

SCHEDULE 6.01(m)B

    	67

    	 	

    

Appendix III_IT Projects

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2012	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	IT Capital Projects	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Budget	 	 	Jan	 	 	Feb	 	 	Mar	 	 	Apr	 	 	May	 	 	Jun	 	 	Jul	 	 	Aug	 	 	Sep	 	 	Oct	 	 	Nov	 	 	Dec	 
	PECOL	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lync	 	 	20,023	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	20,023	 	 	 	–	 	 	 	–	 
	Subtotal	 	 	20,023	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	20,023	 	 	 	–	 	 	 	–	 
	PEMV	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Network Infrastru	 		  3,365	 	 	 	–	 	 	 	–	 	 	 	3,365	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Server	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Workstation	 	 	24,661	 	 	 	2,055	 	 	 	2,055	 	 	 	2,055	 	 	 	2,055	 	 	 	2,055	 	 	 	2,055	 	 	 	2,055	 	 	 	2,055	 	 	 	2,055	 	 	 	2,055	 	 	 	2,055	 	 	 	2,055	 
	Lync	 	 	20,023	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	20,023	 	 	 	–	 	 	 	–	 
	Subtotal	 	 	48,049	 	 	 	2,055	 	 	 	2,055	 	 	 	5,420	 	 	 	2,055	 	 	 	2,055	 	 	 	2,055	 	 	 	2,055	 	 	 	2,055	 	 	 	2,055	 	 	 	22,078	 	 	 	2,055	 	 	 	2,055	 
	PES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Server	 	 	5,396	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	5,396	 
	Lync	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Subtotal	 	 	5,396	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	5,396	 
	PEM	 	 	–	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lync	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Subtotal	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	GRAND TOTAL	 	 	73,468	 	 	 	2,055	 	 	 	2,055	 	 	 	5,420	 	 	 	2,055	 	 	 	2,055	 	 	 	2,055	 	 	 	2,055	 	 	 	2,055	 	 	 	2,055	 	 	 	42,101	 	 	 	2,055	 	 	 	7,451	 

 

 

 SCHEDULE 6.01(m)B

 

    	68

    	 

    

 

 

SCHEDULE 7.01(h)

to Credit Agreement

 

INSURANCE

 

Note: the requirements of this Insurance Schedule apply to each
Plant (and the Borrower that owns such Plant) and to Pacific Holding from and after the date of the initial Funding Notice.

 

1.       GENERAL
PROVISIONS

 

1.1       The
Borrowers shall at all times carry and maintain or cause to be carried and maintained, at their own expense, the minimum insurance
coverage set forth in this Schedule 7.01(h). The terms and conditions of all insurance policies (including the amount, scope
of coverage, deductibles, and self-insured retentions) shall be reasonably acceptable to the Administrative Agent (in consultation
with the Insurance Consultant) in all respects as of the date of the initial Funding. After the date of the initial Funding and
until the Discharge Date, the terms and conditions of all insurance policies (including the amount, scope of coverage, deductibles,
and self-insured retentions) shall be acceptable in all respects in the reasonable judgment of the Administrative Agent (acting
in consultation with the Insurance Consultant), and the Administrative Agent (acting in consultation with the Insurance Consultant)
may require that such terms be modified if (i) a state of facts or circumstances exists with respect to any Plant or the Project
that was not foreseen by the Administrative Agent on the date of the Agreement and which, in the reasonable judgment of the Administrative
Agent (acting in consultation with the Insurance Consultant), renders such coverage inadequate, and (ii) the requested coverage
is available on commercially reasonable terms. All insurance carried pursuant to this Schedule 7.01(h) shall conform to
the relevant provisions of the respective Project Documents and be with insurance companies that are rated “A-, X”
or better by Best’s Insurance Guide and Key Ratings, or other insurance companies of recognized responsibility satisfactory
to the Administrative Agent (acting in consultation with the Insurance Consultant). None of the Agents or the other Senior Secured
Parties shall have any obligation or liability for premiums, commissions, assessments or calls in connection with any insurance
policy required under this Schedule 7.01(h).

 

Capitalized terms used in this Schedule
7.01(h) not otherwise defined herein shall have the meanings set forth in the Agreement, or if not defined therein, as such
terms are used in the common practice of the insurance industry.

 

The insurance carried in accordance with this
Schedule 7.01(h) shall be endorsed as follows: The Collateral Agent shall be sole loss payee with respect to all First Party
policies including the Marine and Inland Transit and Property All Risk and Business Interruption, Leasehold Interest Property All
Risk and Business Interruption (where such Leasehold insurance exists) hereof using a Standard Lenders Loss Payable Clause reasonably
acceptable to the Administrative Agent (acting in consultation with the Insurance Consultant). The Administrative Agent, in its
capacity and on behalf of the Lenders, and the Collateral Agent, on behalf of the Senior Secured Parties,
shall be additional insureds with respect to all of the Borrowers’ insurance (where legally allowed);

 

Schedule 7.01(h)

    	69

    	 

    

 

(a)       The
insurance policies provided by the Borrowers shall allow that the interest of the Administrative Agent, Collateral Agent and the
other Senior Secured Parties shall not be invalidated by any action or inaction of any of the Borrowers or the insureds and shall
insure the Administrative Agent, Collateral Agent and the other Senior Secured Parties regardless of any breach or violation by
the any of the Borrowers or the insured of any warranties, declarations or conditions in such policies or any foreclosure or change
in ownership of any Plant or the Project;

 

(b)       The
insurer thereunder shall waive all rights of subrogation against the Administrative Agent, Collateral Agent and the other Senior
Secured Parties and their respective officers, employees, agents, successors and assigns and shall waive any right of setoff and
counterclaim and any other right to deduction whether by attachment or otherwise;

 

(c)       Such
insurance shall be primary without right of contribution of any other insurance carried by or on behalf of any of Administrative
Agent, Collateral Agent and the other Senior Secured Parties with respect to its interest as such in the Project and each policy
insuring against liability to third parties shall contain a severability of interests or cross liability provision; and

 

(d)       Any
insurance carried under this Schedule 7.01(h) that is written to cover more than one insured shall provide that all terms,
conditions, insuring agreements and endorsements, with the exception of limits of liability (which shall be applicable to all insureds
as a group) and liability for premiums (which shall be solely a liability of the Borrowers), shall operate in the same manner as
if there were a separate policy covering such insured.

 

1.2       Adjustment
of Losses.

 

(a)       The
loss, if any, under any insurance required to be carried hereunder shall be adjusted with the insurance companies or otherwise
collected, including the filing in a timely manner of appropriate proceedings, by the Borrowers, subject to the reasonable approval
of the Administrative Agent (acting in consultation with the Insurance Consultant) as it pertains to losses under the Transit,
Property, Business Interruption, Leasehold Property and Business Interruption and other applicable first party policies only. In
addition, the Borrowers shall take all other steps necessary or reasonably requested by the Administrative Agent to collect from
insurers any loss covered by any of the insurance policies herein. All such policies shall provide that the loss, if any, and coverage
afforded under such insurance shall be adjusted and paid as provided in this Schedule 7.01(h).

 

(b)       The
Borrowers shall promptly notify the Administrative Agent of any property damage loss covered by any insurance. The Borrowers shall
cooperate and consult with the Administrative Agent in all matters pertaining to the settlement or adjustment of any and all claims
and demands for damages on account of any taking or condemnation of any Plant or the Project or pertaining to the settlement, compromising
or arbitration of any claim on account of any damage or destruction of any Plant or the Project or any portion thereof. Without
the prior written consent of the Administrative Agent (acting in consultation with the Insurance Consultant), no Borrower will
settle, or consent to the settlement of, any proceeding arising out of any damage, destruction or condemnation of any Plant or
the Project or any portion thereof.

 

Schedule 7.01(h)

 

    	70

    	 

    

 

1.3       Application
of Payments. All payments with respect to the insurance policies required by this Schedule 7.01(h) shall promptly be
deposited in the relevant Insurance and Condemnation Proceeds Account or the Revenue Account as required pursuant to Article
VIII (Project Accounts) for application in accordance with the provisions of the Agreement.

 

1.4       Evidence
of Insurance. On the Closing Date, on an annual basis no more than ten (10) days following each policy anniversary, and otherwise
as required under the Agreement, the Borrowers shall furnish to the Administrative Agent with approved certification of all required
insurance. An authorized representative of each insurer shall execute such certificates. Such certificates shall identify underwriters,
the type of insurance, the insurance limits, the risks covered thereby and the policy term, and the insurance broker or insurance
carrier providing such certificates shall specifically state (either in such certificate or otherwise) that the special provisions
enumerated for such insurance herein are provided by such insurance. The Borrowers shall certify that the premiums on all such
policies have been paid in full for the current year or will be paid when due. Upon request, the Borrowers will promptly furnish
to the Administrative Agent copies of all insurance policies, binders and cover notes or other evidence of such insurance relating
to the Project.

 

1.5       No
Duty to Verify. No provision of this Schedule 7.01(h) or any provision of any Transaction Document shall impose on the
Administrative Agent, Collateral Agent or any Senior Secured Party any duty or obligation to verify the existence or adequacy of
the insurance coverage maintained by the Borrowers, nor shall the Administrative Agent, Collateral Agent or any Senior Secured
Party be responsible for any representations or warranties made by or on behalf of any Borrower to any insurance company or underwriter.

 

2.       OPERATING
PERIOD INSURANCE

 

2.1       Coverage.
The following coverages shall be placed into effect for the benefit of each Plant, including grain elevators at the Closing Date
and shall be maintained in effect at all times until the Discharge Date.

 

(a)       Commercial
General Liability.

 

Commercial general liability insurance for
such Plant, written on “occurrence” policy forms, including coverage for premises/operations, products/completed operations,
broad form property damage, blanket contractual liability, and personal injury, with no exclusions for explosion, collapse and
underground perils, and fire with primary coverage limits of no less than one million Dollars ($1,000,000) per occurrence and two
million Dollars ($2,000,000) in the annual aggregate for injuries or death to one or more persons or damage to property resulting
from any one occurrence, and a products and completed operations liability aggregate limit of not less than one million Dollars
($1,000,000). The commercial general liability policy shall also include a severability of interest clause and a cross liability
clause in the event more than one entity is “named insured” under the liability policy. Deductibles in excess of two
hundred fifty thousand Dollars ($250,000) shall be subject to review and reasonable approval
by the Administrative Agent (in consultation with the Insurance Consultant).

 

(b)       Automobile
Liability.

 

  Schedule 7.01(h)

    	71

    	 

    

  

Automobile liability insurance, including
coverage for owned, non-owned and hired automobiles for both bodily injury and property damage in accordance with statutory legal
requirements, with combined single limits of no less than one million Dollars ($1,000,000) per accident with respect to bodily
injury, property damage or death. Automobile insurance shall include the Motor Carrier Act Endorsement encompassing Hazardous Materials
Cleanup (MCS-90), if applicable.

 

(c)       Workers
Compensation.

 

Workers compensation insurance to statutory
limits and employer’s liability with a limit of not less than one million Dollars ($1,000,000) per occurrence and in the
aggregate such other forms of insurance required by law with respect to any Plant or the Project, providing statutory benefits
and covering loss resulting from injury, sickness, disability or death of employees (if any) of any Borrower. To the extent applicable,
insurance shall cover Jones Act, Longshore and Harbor Workers Act and Continental Shelf Land Act.

 

(d)       Property
/ Machinery Breakdown.

 

Prior to or at expiry date of the Builders
Risk Policy and ensuring no gap in coverage through the testing and commissioning period and not later than the Commercial Operations
Date for each Plant, property “all risk” insurance, as such term is used in the common practice of the insurance industry
on the date of the Agreement, including machinery breakdown, the perils of flood and earthquake, strike, vandalism and malicious
mischief subject to terms that are consistent with current industry practice insuring all real and personal property of the Project
at each Plant for an amount of not less than full replacement cost of such Plant. Sub limits are permitted as respects to the following
perils: (i) debris removal (the greater of $5,000,000 or 25% of loss), (ii) expediting or extra expense ($5,000,000), (iii) increased
costs due to orders by law and demolition costs of undamaged portion due to enforcement of by law ($2,000,000), flood (25% of replacement
cost) and earthquake (25% of replacement cost) and (iv) such other coverages customarily sub-limited in reasonable amounts consistent
with current industry practice with respect to similar risks and reasonably acceptable to the Administrative Agent (acting in consultation
with the Insurance Consultant).

 

Such policy shall include: (i) an automatic
reinstatement of limits following each loss (except for the perils of earthquake and flood), (ii) a replacement cost endorsement
with no deduction for depreciation and (iii) unless provided under the all risk policy, boiler and machinery coverage (including
consequence of design, workmanship or material defect) on a “comprehensive” basis including breakdown and repair on
a replacement cost basis with limits not less than the full replacement cost of the insured objects. In the event all risk property
cover and the boiler and machinery cover is not written in the same policy, each policy shall contain a joint loss agreement.

 

All such policies may have deductibles of
not greater than two hundred fifty thousand Dollars ($250,000) and two percent (2%) of values at risk, five percent (5%) for California
Earthquake for natural hazard perils (such as flood and earthquake).

 

(e)       Business
Interruption.

 

Schedule 7.01(h)

    	72

    	 

    

 

Borrowers shall also maintain or caused to
be maintained, with respect to each Plant, business interruption insurance on all “all risk” basis (as such term is
used in common practice of the insurance industry on the date of the Agreement), including machinery breakage, in an amount necessary
to satisfy policy coinsurance conditions, but with limits not less than the equivalent of twelve (12) months projected scheduled
Debtor Service, continuing expenses and an amount equivalent to the principal payments necessary for the Borrowers to reach the
Target Balance Amount at the end of the twelve (12)-month period as indicated in the Agreement or in other amounts reasonably acceptable
to the Administrative Agent (acting in consultation with the Insurance Consultant). The deductible or waiting period shall not
exceed thirty (30) days. Borrowers shall also maintain or cause to be maintained contingent business interruption as respects the
suppliers and vendors in an amount of not less than six (6) months projected scheduled Debt Service, continuing expenses and replacement
ethanol extra expense in amounts acceptable to the Lenders, where the exposure exists.

 

(f)       Umbrella
or Excess.

 

Umbrella or excess liability insurance of
not less than twenty million Dollars ($20,000,000) per occurrence and annual aggregate during operations. Such coverages shall
be on a per occurrence or claims made basis and over and above coverage provided by the policies described in Sections 2.1(a),
(b) and, with respect to employer’s liability, (c) of this Schedule 7.01(h), whose limits shall apply
toward the twenty million Dollars ($20,000,000) limit set forth in this Section 2.1(f). If the policy or policies provided
under this Section 2.1(f) contain(s) aggregate limits applying to other operations other than the Project, and such limits
are diminished below fifteen million Dollars ($15,000,000) by any incident, occurrence, claim, settlement or judgment against such
insurance that has caused the insurer to establish a reserve, Borrowers, within five (5) Business Days after obtaining knowledge
of such event shall inform the Administrative Agent, and within thirty (30) Business Days after the occurrence of such event shall
purchase an additional umbrella/excess liability insurance policy satisfying the requirements of this Section 2.1(f).

 

(g)       Aircraft
Liability.

 

Aircraft liability, (to the extent exposure
exists) in an amount not less than ten million Dollars ($10,000,000) for all owned, non-owned and hired aircraft, fixed wing or
rotary, used in connection with the operation of the Project.

 

(h)       Pollution
Legal Liability.

 

Including Onsite Cleanup and sudden and accidental
pollution legal liability insurance on a named perils basis with a limit commensurate (in the reasonable opinion of the Insurance
Consultant) with industry practice for like projects, sufficient to meet contractual requirements but not less than three million
Dollars ($3,000,000). Such coverage can be included in the commercial general liability and umbrella
or excess liability covers or provided separately. Claims made coverage forms and deductibles of up to two hundred fifty thousand
Dollars ($250,000) are acceptable.

 

3.       LEASEHOLD
INTEREST INSURE

 

Schedule 7.01(h)

    	73

    	 

    

 

Unless otherwise covered under the operational
Property All Risk Insurance described above or otherwise maintained by Pacific Ethanol, until the Discharge Date, each Borrower
shall also insure, or cause to be insured its leasehold interests in the Leased Premises and provide Property Damage, Business
Interruption/Extra Expense and Liability insurance in amounts reasonably satisfactory to the Administrative Agent (acting in consultation
with the Insurance Consultant).

 

4.       DIRECTORS
AND OFFICERS INSURANCE (to the extent exposure exists)

 

Until the Discharge Date, the Borrowers shall
maintain, or cause to be maintained, Directors and Officers Insurance (including Employment Practices Liability) with limits in
accordance with industry practice.

 

5.       GENERAL
CONDITIONS APPLYING TO ALL INSURANCE

 

5.1       The
Borrowers shall promptly notify the Administrative Agent of any loss in excess of two hundred fifty thousand Dollars ($250,000)
covered by any insurance maintained pursuant to Sections 2.1(e) and (0 of this Schedule 7.01(h).

 

5.2       All
policies of insurance required to be maintained pursuant to Sections 2.1(d) and (e) of this Schedule 7.01(h),
shall provide that the proceeds of such policies shall be payable solely to the Collateral Agent pursuant to a standard first mortgage
endorsement substantially equivalent to the Lenders Loss Payable Endorsement 438BFU or New York Standard Mortgage Endorsement without
contribution. All policies (where allowed by law) shall insure the interests of the Senior Secured Parties regardless of any breach
or violation by any Borrower of warranties, declarations or conditions contained in such policies, any action or inaction of any
Borrower or any other Person, or any foreclosure relating to any Plant or any change in ownership of all or any portion of any
Plant (the foregoing may be accomplished by the use of the Lender Loss Payable Endorsement 438BFU required above).

5.3       A
loss under any insurance required to be carried under Sections 2.1(d) and (e) of this Schedule 7.01(h), shall
be adjusted with the insurance companies, including the filing in a timely manner of appropriate proceedings, by the Borrowers,
together with the Administrative Agent. In addition the Borrowers may, in their reasonable judgment, consent to the settlement
of any loss; provided that in the event that the amount of any such loss exceeds two hundred fifty thousand Dollars ($250,000)
the terms of such settlement are concurred with by the Administrative Agent (acting in consultation with the Insurance Consultant).

 

5.4       All
policies of insurance required to be maintained pursuant to this Schedule 7.01(h) shall be endorsed so that if at any time
any such policy should be cancelled, such cancellation shall not be effective for thirty (30) days following delivery of written
notice thereof to the Administrative Agent, except for cancellation due to non-payment of premium, which shall not be for effective
for ten (10) days following delivery of written notice thereof to the Administrative Agent.

 

6.       REPORT

 

Schedule 7.01(h)

    	74

    	 

    

 

6.1       On
the initial Funding Date and annually thereafter, the Borrowers shall furnish the Administrative Agent with a report of an independent
insurance broker, signed by an officer of such broker, stating that all premiums then due have been paid and that, in the opinion
of such broker, the insurance then carried or to be renewed is in accordance with the terms of this Schedule 7.01(h). In
addition the Borrowers will advise the Administrative Agent in writing promptly of any default in the payment of any premium and
of any other act or omission on the part of any Borrower that may invalidate or render unenforceable, in whole or in part, any
insurance being maintained by any Borrower pursuant to this Schedule 7.01(h).

 

7.       “CLAIMS
MADE” POLICIES FOR CERTAIN TYPES OF INSURANCE

 

7.1       If
any liability insurance required under the provisions of this Schedule 7.01(h) is allowed to be written on a “claims
made” basis, then such insurance shall include the following:

 

(a)       The
retroactive date (as such term is specified in each of such policies) shall be no later than the date on which construction is
commenced or the Commercial Operations Date for the relevant Plant (as applicable).

 

(b)       Each
time any policy written on a “claims made” basis is not renewed or the retroactive date of such policy is to be changed,
the Borrowers shall obtain or cause to be obtained for each such policy or policies the broadest extended reporting period coverage,
or “tail”, reasonably available in the commercial insurance market for each such policy or policies.

 

8.       UNAVAILABILITY
OF INSURANCE

 

If any insurance (including the limits or
deductibles thereof) hereby required to be maintained is not reasonably available and commercially feasible in the commercial insurance
market, the Administrative Agent (acting in consultation with the Insurance Consultant) shall not unreasonably withhold their agreement
to waive such requirement to the extent the maintenance thereof is not so available; provided, however, that the
Borrowers shall first request any such waiver in writing to the Administrative Agent, which request shall be accompanied by a written
report prepared by an insurance broker of nationally recognized standing, certifying that such insurance required is not reasonably
available and commercially feasible (and, in any case where the required amount is not so available, certifying as to the maximum
amount which is so available) and explaining in detail the basis for such conclusions. If after reviewing such evidence with the
Insurance Consultant, the Administrative Agent concurs with such report, the Borrowers shall not be required to maintain such insurance
until such time as such insurance is again available on commercially reasonable terms. At any time after the granting of any such
waiver, but not more often than once a year, the Administrative Agent or the Lenders may request, and the Borrowers shall furnish
to the Administrative Agent within fifteen (15) days after such request, supplemental reports reasonably acceptable to the Administrative
Agent from such independent insurance broker or the Insurance Consultant updating their prior reports and reaffirming such conclusion.
It is understood that the failure of the Borrowers to timely furnish any such supplemental report shall
be conclusive evidence that such waiver is no longer effective because such condition no longer exists, but that such failure is
not the only way to establish such non-existence. For the purposes of this Section 8.1, insurance will be considered “not
reasonably available and commercially feasible” when it is obtainable only at excessive costs that are not justified in terms
of the risk to be insured and is generally not being carried by or applicable to projects or operations similar to the relevant
Plant because of such excessive costs.

 

Schedule 7.01(h)

 

    	75

    	 

    

 

9.       EROSION
OF LIMIT

 

In the event that the insurance program evidenced
for the benefit of any Plant is being provided through an insurance policy that also insures other assets owned by the Borrowers
and the limits or sub limits are eroded or exhausted due to a loss at another Plant or location the Borrowers will immediately
cause limits to be reinstated (where applicable) or replaced for the benefit of such Plant.

 

 

 

 

 

 

 

 

 

Schedule 7.01(h)

 

    	76

    	 

    

 

 

Schedule 7.02(a)

to Credit Agreement

 

BONDS

 

 

	Bond No.	Principal	Description	Amount	Effective	Expiration
	0427965	Pacific Ethanol Columbia, LLC	
        US DEPT OF TREASURY

        Alcohol Fuel Producer Bond
	$200,000.00	06/01/2009	06/01/2013
	5616288	Pacific Ethanol Stockton  LLC	
        US DEPT OF TREASURY

        Alcohol Fuel Producer Bond
	$200,000.00	06/10/2009	06/10/2013
	0427939	Pacific Ethanol Madera LLC	
        US DEPT OF TREASURY

        Alcohol Fuel Producer Bond
	$200,000.00	10/01/2009	10/01/2013
	0427981	Pacific Ethanol Magic Valley, LLC	
        US DEPT OF TREASURY

        Alcohol Fuel Producer Bond
	$200,000.00	11/02/2009	11/02/2012
	0590288	Pacific Ethanol Columbia, LLC	
        OREGON DEPT. OF ENERGY

        Site Certificate Bond
	$863,200.00	06/25/2012	06/25/2013

 

 

Schedule 7.02(a)

    	77

    	 

    

 

Schedule 11.12

to Credit Agreement

 

NOTICE INFORMATION

 

 

I.       BORROWERS

 

PACIFIC ETHANOL HOLDING
CO. LLC

400 Capitol Mall, Suite 2060

Sacramento, CA 95814

Attn: Bryon T. McGregor,
CFO

Phone:       (916)
403-2710

Email:       bmcgregor@pacificethanol.net

and

Attn: Christopher W. Wright,
GC

Phone:       (916)
403-2130

Email:       cwright@pacificethanol.net

 

PACIFIC ETHANOL MADERA
LLC

400 Capitol Mall, Suite 2060

Sacramento, CA 95814

Attn: Bryon T. McGregor,
CFO

Phone:       (916)
403-2710

Email:       bmcgregor@pacificethanol.net

and

Attn: Christopher W. Wright,
GC

Phone:       (916)
403-2130

Email:       cwright@pacificethanol.net

 

PACIFIC ETHANOL COLUMBIA,
LLC

400 Capitol Mall, Suite 2060

Sacramento, CA 95814

Attn: Bryon T. McGregor,
CFO

Phone:       (916)
403-2710

Email:       bmcgregor@pacificethanol.net

and

Attn: Christopher W. Wright,
GC

Phone:       (916)
403-2130

Email:       cwright@pacificethanol.net

 

Schedule 11.12

    	78

    	 

    

 

PACIFIC ETHANOL STOCKTON
LLC

400 Capitol Mall,
Suite 2060

Sacramento, CA 95814

Attn: Bryon T. McGregor,
CFO

Phone:       (916)
403-2710

Email:       bmcgregor@pacificethanol.net

and

Attn: Christopher W. Wright,
GC

Phone:       (916)
403-2130

Email:       cwright@pacificethanol.net

 

PACIFIC ETHANOL MAGIC
VALLEY, LLC

400 Capitol Mall, Suite 2060

Sacramento, CA 95814

Attn: Bryon T. McGregor,
CFO

Phone:       (916)
403-2710

Email:       bmcgregor@pacificethanol.net

and

Attn: Christopher W. Wright,
GC

Phone:       (916)
403-2130

Email:       cwright@pacificethanol.net

 

II.       
   BORROWERS’ AGENT

 

PACIFIC ETHANOL HOLDING
CO. LLC

400 Capitol Mall, Suite 2060

Sacramento, CA 95814

Attn: Bryon T. McGregor,
CFO

Phone:       (916)
403-2710

Email:       bmcgregor@pacificethanol.net

and

Attn: Christopher W. Wright,
GC

Phone:       (916)
403-2130

Email:       cwright@pacificethanol.net

 

Schedule 11.12

    	79

    	 

    

 

 

III.       ADMINISTRATIVE
AGENT

WELLS FARGO BANK,
N.A.

 

Prior to November
5, 2012:

45 Broadway, 14th
Floor

New York, New York
10006

Attention: Michael
Pinzon, CMES-Pacific Ethanol

Telephone: (212) 515-5264

Facsimile: (212) 515-1576

E-mail Address: michael.d.pinzon@wellsfargo.com
and

                             hui.chen@wellsfargo.com

 

On and after November
5, 2012:

150 East 42nd Street,
40th Floor 

New York, New York 10017

Attention: Michael
Pinzon, CMES-Pacific Ethanol

Telephone: 917-260-1537

Facsimile:  917-260-1594

E-mail Address: michael.d.pinzon@wellsfargo.com
and

                             hui.chen@wellsfargo.com

 

IV.       COLLATERAL
AGENT

WELLS FARGO BANK,
N.A.

 

Prior to November
5, 2012:

45 Broadway, 14th
Floor

New York, New York
10006

Attention: Michael
Pinzon, CMES-Pacific Ethanol

Telephone: (212) 515-5264

Facsimile: (212) 515-1576

E-mail Address: michael.d.pinzon@wellsfargo.com
and

                             hui.chen@wellsfargo.com

On and after November
5, 2012:

150 East 42nd Street,
40th Floor 

New York, New York 10017

Attention: Michael
Pinzon, CMES-Pacific Ethanol

Telephone: 917-260-1537

Facsimile:  917-260-1594

E-mail Address: michael.d.pinzon@wellsfargo.com
and

                             hui.chen@wellsfargo.com

 

Schedule 11.12

    	80

    	 

    

 

V.       ACCOUNTS
BANK

 

AMARILLO NATIONAL BANK

Amarillo National
Bank

P.O. Box 1

Amarillo, Texas 79105

Attn: Craig L. Sanders

Telephone       806-378-8244

Facsimile       806-345-1663

 

 

 

Schedule 11.12

    	81

    	 

    

 

Exhibit A

 

 

“2011 CEPIP Projections”
means the “2011 CEPIP Projections” as defined in the Amended Credit Agreement as in effect on the date hereof.

“Accounts” means all
“accounts” as that term is defined in Section 9-102 of the UCC, now or hereafter owned by any Borrower.

“Accounts Bank” means
Amarillo National Bank, not in its individual capacity, but solely as depositary bank, bank and securities intermediary hereunder,
and each other Person that may, from time to time, be appointed as successor Accounts Bank pursuant to Section 10.06 (Resignation
or Removal of Agent).

“Accounts Property”
means any funds, instruments, securities, financial assets or other assets from time to time held in any of the Project Accounts
or credited thereto or otherwise in possession or control of the Accounts Bank pursuant to this Agreement.

“Additional Project Document”
means each contract, agreement, letter agreement or other instrument to which any Borrower becomes a party after June 25, 2010,
other than any document (a) under which any Borrower (or, in the case of an agreement to which two or more Borrowers are party,
such Borrowers on an aggregate basis) would not reasonably be expected to have obligations or liabilities in the aggregate in excess
of two million Dollars ($2,000,000), or be entitled to receive revenues in the aggregate in excess of three million Dollars ($3,000,000),
in either case in value in any twelve (12) month period, (b) with respect to the purchase or lease to finance the purchase or lease
of enhancements to the Borrowers' production facilities consisting of bolt-on product yield enhancement equipment or processing
and separation equipment for corn oil and corn syrup to the extent permitted under Section 7.02(a)(vi) and Section 7.02(b)(xi),
and (c) a termination of which would not reasonably be expected to result in a Material Adverse Effect; provided, that for the
purposes of this definition, purchase orders under existing Project Documents relating to the sale of Products or the purchase
of corn shall not constitute Additional Project Documents.

“Administrative Agent”
means Wells Fargo, in its capacity as administrative agent for the Lenders hereunder, and includes each other Person that may,
from time to time, be appointed as successor Administrative Agent pursuant to Section 10.06 (Resignation or Removal
of Agent).

“Affiliate” of any Person
means any other Person that, directly or indirectly, controls, is controlled by or is under common control with such Person. A
Person shall be deemed to be “controlled by” any other Person if such other Person (a) possesses, directly or indirectly,
power to direct or cause the direction of the management and policies of such Person whether by contract or otherwise or (b) owns
at least ten percent (10%) of the Equity Interests in such Person; provided that clause (b) shall not be taken into account solely
for purposes of determining whether a Person is an Affiliate of a Lender.

“Affiliated Project Documents”
means those Project Documents listed in Schedule 5.11 and identified as Affiliate agreements, the DG Offtake Agreement
between Stockton and Pacific Ag Products (and the related Consent), the Ethanol Offtake Agreement between Stockton and Kinergy
(and the related Consent) and the Grain Supply Agreement between Stockton and Pacific Ag Products (and the related Consent).

    	Exhibit A-1

    	 

    
 

“Agents” means, collectively,
the Administrative Agent, the Collateral Agent and the Accounts Bank.

“Aggregate Commitment”
means ten million Dollars ($10,000,000), as the same may be reduced in accordance with Section 2.05 (Termination or
Reduction of Commitments) or increased in accordance with Section 3.14 (Commitment Increase).

“Agreement” has the
meaning set forth in the Preamble.

“Amended Credit Agreement”
has the meaning set forth in the Recitals.

“Ancillary Documents”
means, with respect to each Additional Project Document, the following, each of which shall be in form and substance reasonably
satisfactory to the Administrative Agent and, in the case of items (i), (ii) and (iv), the Collateral Agent:

		(i)	each security instrument and agreement necessary or desirable to grant to the Collateral Agent a first priority perfected Lien
(subject only to Permitted Liens) in such Additional Project Document and all property interests received by any Borrower in connection
therewith;

		(ii)	all recorded UCC financing statements and other filings required to perfect such Lien;

		(iii)	if reasonably requested by the Administrative Agent, opinions of counsel for the Borrowers addressing such matters relating
to such document, each applicable Security Document and Lien as the Administrative Agent may reasonably request;

		(iv)	if reasonably requested by the Administrative Agent, the Borrowers shall use their best efforts to obtain a Consent with respect
to such Additional Project Document from each Project Party thereto, and shall use their best efforts to obtain an opinion of counsel
to such Project Party addressing matters relating to such Additional Project Document and such Consent as the Administrative Agent
may reasonably request; provided, that if such Consent cannot be obtained, the relevant Additional Project Document shall be freely
assignable by the applicable Borrower(s) to the Collateral Agent and to a transferee in foreclosure, in each such case without
any consent or approval of such Project Party; and

		(v)	if reasonably requested by the Administrative Agent, certified evidence of the authorization of such Additional Project Document
by each Borrower that is a party thereto.

 

    	Exhibit A-2

    	 

    

“Applicable Margin”
means five and one-half percent (5.5%) per annum; provided that for any Loans for which interest is paid as Capitalized Interest
in accordance with Section 3.02 (Interest Payment Dates), the Applicable Margin shall be deemed to have been eight
percent (8%) per annum for the period for which interest is so paid.

“Approved Fund” means,
with respect to any Lender that is a fund that invests in commercial loans, any other fund that invests in commercial loans and
is managed or advised by the same investment advisor as such Lender or by an Affiliate of such investment advisor.

“Asset Management Agreement”
means the Second Amended and Restated Asset Management Agreement dated as of June 30, 2011 among Pacific Ethanol and the Borrowers.

“Associated Member”
means a member under the PE Newco LLC Agreement that is an Affiliate of a Lender.

“Auditors” means those
nationally recognized independent auditors selected by the Borrowers and approved by the Administrative Agent, acting reasonably.

“Authorized Officer”
means (i) with respect to any Person that is a corporation, the president, any vice president, the treasurer or the chief financial
officer of such Person, (ii) with respect to any Person that is a partnership, an Authorized Officer of a general partner of such
Person, (iii) with respect to any Person that is a limited liability company, any manager, the president, any vice president, the
treasurer, the chief financial officer or the chief operating officer of such Person, or an Authorized Officer of the managing
member of such Person, or (iv) with respect to any Person, such other representative of such Person that is approved by the Administrative
Agent in writing who, in each such case, has been named as an Authorized Officer on a certificate of incumbency of such Person
delivered to the Administrative Agent and the Accounts Bank on or after the Closing Date.

“Bankruptcy Code” means
Title 11 of the United States Code entitled “Bankruptcy” or any successor statute, and all rules promulgated thereunder.

“Base Rate” means, for
any day, a fluctuating rate per annum equal to the highest of (i) the Federal Funds Effective Rate plus one-half of one percent
(0.50%), (ii) the rate of interest in effect for such day as publicly announced from time to time by Wells Fargo as its “prime
rate” and (iii) one month LIBOR plus one percent (1%). The “prime rate” is a rate set by Wells Fargo based upon
various factors including Wells Fargo’s costs and desired return, general economic conditions and other factors, and is used
as a reference point for pricing some loans, which may be priced at, above, or below such announced rate. Any change in such rate
announced by Wells Fargo shall take effect at the opening of business on the day specified in the public announcement of such change.

“Base Rate Loan” means
any Loan bearing interest at a rate determined by reference to the Base Rate and the provisions of Article II (Commitments
and Funding).

    	Exhibit A-3

    	 

    
 

“Blocked Account Agreement”
means an agreement, in a form reasonably satisfactory to the Administrative Agent, the Collateral Agent and the Existing Collateral
Agent, with respect to a Local Account among the Borrower in whose name such Local Account has been opened, the bank with whom
such Local Account was opened, the Collateral Agent and the Existing Collateral Agent.

“Boardman” has the meaning
set forth in the Preamble.

“Boardman CHS GSA” means
the Grain Supply Agreement dated as of February 24, 2012 between CHS, Inc., a Minnesota cooperative corporation, and Boardman.

“Boardman Deed of Trust”
means the Leasehold Trust Deed, Security Agreement, Financing Agreement, Fixture Filing and Assignment of Leases, Rents and Security
Deposits, in form and substance reasonably satisfactory to the Lenders and the Collateral Agent, dated on or about the Closing
Date, made by Boardman to Stewart Title Guaranty Company, as trustee, for the benefit of the Collateral Agent, as beneficiary.

“Boardman Insurance and Condemnation
Proceeds Account” has the meaning provided in Section 8.01(f) (Establishment of Project Accounts)
of the Amended Credit Agreement.

“Boardman Lease” means
the lease dated April 20, 2006 between the Port of Morrow and Boardman.

“Boardman LLC Agreement”
means the Second Amended and Restated Limited Liability Company Operating Agreement of Boardman dated as of June 29, 2010.

“Boardman Plant” means
the ethanol production facility located at Boardman, Oregon, with a capacity of approximately thirty-five (35) million gallons-per-year
of denatured ethanol, including the Site on which such facility is located, and all buildings, structures, improvements, easements
and other property related thereto.

“Boardman Pledge Agreement”
means the Pledge and Security Agreement, in form and substance reasonably satisfactory to the Lenders and the Collateral Agent,
dated on or about the Closing Date, among Pacific Holding, Boardman and the Collateral Agent, pursuant to which Pacific Holding
pledges one hundred percent (100%) of the Equity Interests in Boardman to the Collateral Agent.

“Boardman Security Agreement”
means the Assignment and Security Agreement, in form and substance reasonably satisfactory to the Lenders and the Collateral Agent,
dated on or about the Closing Date, made by Boardman in favor of the Collateral Agent.

“Boardman Subordination Agreement”
means that certain Subordination Agreement, dated as of the Closing Date, by and among Boardman, the Collateral Agent and the Existing
Collateral Agent.

    	Exhibit A-4

    	 

    
 

“Borrower LLC Agreements”
means, collectively, the Pacific Holding LLC Agreement, the Madera LLC Agreement, the Boardman LLC Agreement, the Stockton LLC
Agreement and the Burley LLC Agreement.

“Borrowers” has the
meaning set forth in the Preamble.

“Borrowers’ Agent”
means Pacific Holding, in its capacity as agent for the Borrowers in accordance with Section 11.05 (Borrowers’
Agent).

“Budget” has the meaning
set forth in Section 7.01 (k) (Affirmative Covenants- Budget).

“Budget Period” means
the period covered by any Budget.

“Burley” has the meaning
set forth in the Preamble.

“Burley Deed of Trust”
means the Deed of Trust, Security Agreement, Financing Statement, Fixture Filing and Assignment of Leases, Rents and Security Deposits,
in form and substance reasonably satisfactory to the Lenders and the Collateral Agent, dated on or about the Closing Date, made
by Burley to Fidelity National Title Company, as trustee, for the benefit of the Collateral Agent, as beneficiary.

“Burley Heiskell GSA”
means the Grain Storage Agreement dated as of December 11, 2009 between Heiskell and Burley, as amended by that certain Amendment
No. 1 to Grain Storage Agreement dated December 10, 2010 and that certain Amendment No. 2 to Grain Storage Agreement dated November
17, 2011.

“Burley Insurance and Condemnation
Proceeds Account” has the meaning provided in Section 8.01(h) (Establishment of Project Accounts)
of the Amended Credit Agreement.

“Burley LLC Agreement”
means the Amended and Restated Limited Liability Company Operating Agreement of Burley dated as of June 29, 2010.

“Burley Plant” means
the ethanol production facility located at Burley, Idaho, with a capacity of approximately fifty (50) million gallons-per-year
of denatured ethanol, including the Site on which such facility is located, and all buildings, structures, improvements, easements
and other property related thereto.

“Burley Pledge Agreement”
means the Pledge and Security Agreement, in form and substance reasonably satisfactory to the Lenders and the Collateral Agent,
dated on or about the Closing Date, among Pacific Holding, Burley and the Collateral Agent, pursuant to which Pacific Holding pledges
one hundred percent (100%) of the Equity Interests in Burley to the Collateral Agent.

“Burley Security Agreement”
means the Assignment and Security Agreement, in form and substance reasonably satisfactory to the Lenders and the Collateral Agent,
dated on or about the Closing Date, made by Burley in favor of the Collateral Agent.

    	Exhibit A-5

    	 

    
 

“Burley Subordination Agreement”
means that certain Subordination Agreement, dated as of the Closing Date, by and among Burley, the Collateral Agent and the Existing
Collateral Agent.

“Business Day” means:

		(i)	any day that is neither a Saturday or Sunday nor a day on which commercial banks are authorized or required to be closed in
Sacramento, California, New York, New York or Minneapolis, Minnesota; and

		(ii)	relative to the making, continuing, prepaying or repaying of any Eurodollar Loans, any day on which dealings in Dollars are
carried on in the London interbank market.

 “Business Interruption
Insurance Proceeds” means all proceeds of any insurance policies required pursuant to this Agreement or otherwise obtained
with respect to any Borrower, any Plant or the Project relating to business interruption or delayed start-up.

 

“Capitalized Interest”
has the meaning provided in Section 3.02 (Interest Payment Dates). 

“Capitalized Lease Liabilities”
of any Person means all monetary obligations of such Person under any leasing or similar arrangement that, in accordance with GAAP,
would be classified as capitalized leases on a balance sheet of such Person or otherwise disclosed as such in a note to such balance
sheet and, for purposes of the Financing Documents, the amount of such obligations shall be the capitalized amount thereof, determined
in accordance with GAAP. For the avoidance of doubt, “Capitalized Lease Liabilities” shall not include obligations
or liabilities of any Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use)
real or personal property, or a combination thereof, which obligations would be required to be classified and accounted for as
an operating lease under GAAP as existing on the Closing Date.

“Cash Collateral Agreement”
means the Cash Collateral Escrow Agreement, dated as of June 13, 2012, by and among Pacific Holding, International Fidelity Insurance
Company and Allegheny Casualty Company.

“Cash Equivalents” means:

		(a)	readily marketable direct obligations of the government of the United States or any agency or instrumentality thereof, or obligations
unconditionally guaranteed by the full faith and credit of the government of the United States, in each case maturing within one
(1) year from the date of acquisition thereof;

		(b)	securities issued by any state of the United States of America or any political subdivision of any such state or any public
instrumentality thereof having maturities of not more than one (1) year from the date of acquisition thereof and, at the time of
acquisition, having a rating of AA- or higher from S&P or Aa3 or higher from Moody’s (or, if at any time neither S&P
nor Moody’s shall be rating such obligations, an equivalent rating from another nationally recognized rating service); and

    	Exhibit A-6

    	 

    
	

		(c)	investments in certificates of deposit, banker’s acceptances and time deposits maturing within two hundred and seventy
(270) days from the date of acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued
or offered by, the Administrative Agent or any domestic office of any commercial bank organized under the laws of the United States
of America, any State thereof, any country that is a member of the Organisation for Economic Co-Operation and Development or any
political subdivision thereof, that has a combined capital and surplus and undivided profits of not less than five hundred million
Dollars ($500,000,000).

“Cash Flow” means, for
any period, the sum (without duplication) of the following: (i) all cash paid to the Borrowers during such period in connection
with the Ethanol Offtake Agreements, DG Offtake Agreements and any other sales of Products, (ii) all interest and investment earnings
paid to the Borrowers or the Project Accounts during such period on amounts on deposit in the Project Accounts, (iii) all cash
paid to the Borrowers during such period as Business Interruption Insurance Proceeds or liability insurance proceeds (but only
to the extent that such liability insurance proceeds represent reimbursement of third party claims already paid by the Borrowers)
and (iv) all other cash paid to the Borrowers during such period; provided, that Cash Flow shall not include any proceeds of the
Loans or any other Indebtedness incurred by any Borrower; Insurance Proceeds; Condemnation Proceeds; any amounts paid pursuant
to the Sponsor Support Agreement; proceeds from any disposition of assets of any Plant or any Borrower (other than Products); tax
refunds; amounts received, whether by way of a capital contribution or otherwise, from any holders of Equity Interests of any Borrower
(other than payments made under the Affiliated Project Documents when due and payable in accordance with the terms thereof and
the terms of the Financing Documents); and any other extraordinary or non-cash income or receipt of any Borrower under GAAP.

“Casualty Event” means
an event that causes any Plant, or any material portion thereof, to be damaged, destroyed or rendered unfit for normal use for
any reason whatsoever.

“CERCLA” means the Comprehensive
Environmental Response, Compensation and Liability Act (42 U.S.C. § 9604, et seq.), as amended, and rules, regulations, standards
guidelines and publications issued thereunder.

“Change of Control”
means any transaction or series of related transactions (including any merger or consolidation) consummated without the prior written
consent of the Required Lenders the result of which is that:

(i)          Pacific Holding fails to maintain,
directly, legally or beneficially, one hundred percent (100%) of the Equity Interests of any of Madera, Boardman, Stockton or Burley;

    	Exhibit A-7

    	 

    

(ii)          the Pledgor fails to maintain,
directly, legally or beneficially, one hundred percent (100%) of the Equity Interests of Pacific Holding;

(iii)          any “person” or “group”
(as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit
plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or
administrator of any such plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities
Exchange Act of 1934, except that a person or group shall be deemed to have “beneficial ownership” of all securities
that such person or group has the right to acquire, whether such right is exercisable immediately or only after the passage of
time (such right, an “option right”)), directly or indirectly, of 662⁄3% or more of the Equity Interests of Pledgor
entitled to vote for members of the board of managers or equivalent governing body of Pledgor on a fully-diluted basis (and taking
into account all such securities that such “person” or “group” has the right to acquire pursuant to any
option right); or

(iv)          any “person” or “group”
(as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit
plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or
administrator of any such plan) not a member of Pledgor on the date of the Original Credit Agreement becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or group shall
be deemed to have “beneficial ownership” of all securities that such person or group has the right to acquire, whether
such right is exercisable immediately or only after the passage of time (such right, an “option right”)), directly
or indirectly, of 50% or more of the Equity Interests of Pledgor entitled to vote for members of the board of managers or equivalent
governing body of Pledgor on a fully-diluted basis (and taking into account all such securities that such “person”
or “group” has the right to acquire pursuant to any option right).

“Closing Date Consent”
means a Consent, in form and substance reasonably satisfactory to the Lenders, with respect to each Project Document set forth
on Part A of Schedule 6.01(a)(ix).

“Closing Date” means
the date of this Agreement.

“Code” means the Internal
Revenue Code of 1986, as amended.

“Cold Shutdown” means,
in respect of a Plant, the maintenance of such Plant in a state in which the Plant facilities are not producing ethanol, ethanol
work in process has been completed, and wherein (i) Plant systems and equipment preservation are being managed in accordance with
manufacturer recommendations and (ii) Plant facilities operate with a reduced headcount. “Cold Shutdown” contemplates
minimized usage of a Plant’s utility systems but does not contemplate any cessation of compliance monitoring with respect
to Necessary Project Approvals.

“Collateral” means all
assets of the Loan Parties and Equity Interests in the Borrowers, whether now owned or hereinafter acquired, upon which a Lien
is purported to be created by any Security Document then in effect or contemplated to be in effect.

    	Exhibit A-8

    	 

    

“Collateral Agent” means
Wells Fargo, in its capacity as collateral agent for the Senior Secured Parties under the Financing Documents, and includes each
other Person that may, from time to time be appointed as successor Collateral Agent pursuant to Section 10.06 (Resignation
or Removal of Agent).

“Commitment” means,
with respect to each Lender, the commitment of such Lender to make Loans, as set forth opposite the name of such Lender in Schedule 1.01(a),
as the same may be reduced in accordance with Section 2.05 (Termination or Reduction of Commitments) or increased
in accordance with Section 3.14 (Commitment Increase).

“Commitment Availability”
of any Lender, means the amount by which (x) the Commitment of such Lender exceeds (y) the outstanding principal balance of Funded
Loans of such Lender.

“Commitment Availability Percentage”
means, as to any Lender at any time, the percentage that such Lender’s Commitment Availability then constitutes of the aggregate
amount of Commitment Availability of all Lenders.

“Commitment Fee” has
the meaning provided in Section 3.11(a) (Fees).

“Commitment Increase”
has the meaning provided in Section 3.14 (Commitment Increase).

“Commitment Percentage”
means, as to any Lender at any time, the percentage that such Lender’s Commitment then constitutes of the Aggregate Commitment.

“Commodity Hedging Arrangements”
means any arrangement to hedge the price of corn purchases, ethanol sales, Distillers Grains sales or natural gas purchases.

“Commodity Hedging Policy”
means the “Commodity Hedging Policy” of the Borrowers as defined in the Amended Credit Agreement as in effect on the
date hereof.

“Condemnation Proceeds”
means any amounts and proceeds of any kind (including instruments) payable in respect of any Event of Taking.

“Consents” means each
Consent and Agreement entered into among a Project Party, the Borrowers, and the Collateral Agent, each in form and substance reasonably
satisfactory to the Collateral Agent.

“Consultants” means
the Financial Advisor, the Independent Engineer, the Insurance Consultant and any other consultants appointed by or on behalf of
the Lenders.

“Contest” means, with
respect to any matter or claim involving any Person, that such Person is contesting such matter or claim in good faith and by appropriate
proceedings timely instituted; provided, that the following conditions are satisfied: (a) such Person has posted a bond or other
security (which may include funds reserved in an appropriate Project Account) reasonably acceptable to the Administrative Agent;
(b) during the period of such contest, the enforcement of any contested item is effectively stayed; (c) none of such Person or
any of its officers, directors or employees, or any Senior Secured Party or its respective officers, directors or employees, is
or could reasonably be expected to become subject to any criminal liability or sanction in connection with such contested items;
and (d) such contest and any resultant failure to pay or discharge the claimed or assessed amount does not, and would not reasonably
be expected to (i) result in a Material Adverse Effect or (ii) involve a material risk of the sale, forfeiture or loss of, or the
creation, existence or imposition of any Lien (other than a Permitted Lien) on, any of the Collateral.

    	Exhibit A-9

    	 

    

“Contingent Liabilities”
means any agreement, undertaking or arrangement by which any Person guarantees, endorses or otherwise becomes or is contingently
liable upon (by direct or indirect agreement, contingent or otherwise, to provide funds for payment, to supply funds to, or otherwise
to invest in, a debtor, or otherwise to assure a creditor against loss) the indebtedness, obligation or any other liability of
any other Person (other than by endorsements of instruments in the course of collection), or guarantees the payment of dividends
or other distributions upon the shares of any other Person. The amount of any Person’s obligation under any contingent liabilities
shall (subject to any limitation set forth therein) be deemed for purposes of this Agreement to be the outstanding principal amount
of the debt, obligation or other liability guaranteed thereby; provided, that if the maximum amount of the debt, obligation or
other liability guaranteed thereby has not been established, the amount of such contingent liability shall be the maximum reasonably
anticipated amount of the debt, obligation or other liability; provided, further, that any agreement to limit the maximum amount
of such Person’s obligation under such contingent liability shall not, of and by itself, be deemed to establish the maximum
reasonably anticipated amount of such debt, obligation or other liability.

“Contractual Obligation”
means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking
to which such Person is a party or by which it or any of its property is bound.

“Corn Supplier” means
Pacific Ag Products or any other counterparty to a Grain Supply Agreement.

“DDG” means dried distillers
grains (if any) produced by the Borrowers at the Project.

“Debtor Relief Laws”
means the Bankruptcy Code and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium,
rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable
jurisdictions from time to time in effect and affecting the rights of creditors generally.

“Debt Service Reserve Release
Certificate” means a certificate in substantially the form of Exhibit 8.06 of the Amended Credit Agreement,
duly executed by an Authorized Officer of the Borrowers’ Agent, directing the transfer of funds from the Debt Service Reserve
Account.

“Debt Service Reserve Account”
has the meaning set forth in Section 8.01(d) (Establishment of Project Accounts) of the Amended Credit Agreement.

    	Exhibit A-10

    	 

    

“Default” means any
condition, occurrence or event that, after notice or passage of time or both, would be an Event of Default.

“Default Excess” means,
with respect to any Defaulting Lender, the excess, if any, of such Defaulting Lender’s pro rata share of the aggregate outstanding
principal amount of all Loans (calculated as if all Defaulting Lenders (including such Defaulting Lender) had funded all of their
respective Defaulted Loans) over the aggregate outstanding principal amount of all Loans of such Defaulting Lender.

“Default Period” means,
with respect to any Defaulting Lender, the period commencing on the date of the applicable Funding Default and ending on the earliest
of the following dates: (i) the date on which all Commitments are cancelled or terminated and/or the Obligations are declared or
become immediately due and payable, (ii) the date on which (a) the Default Excess with respect to such Defaulting Lender shall
have been reduced to zero (whether by the funding by such Defaulting Lender of any Defaulted Loans of such Defaulting Lender or
by the non pro rata application of any voluntary or mandatory prepayments of the Loans pursuant to the terms hereof) and (b) such
Defaulting Lender shall have delivered to the Borrowers and the Administrative Agent a written reaffirmation of its intention to
honor its obligations hereunder with respect to its Commitments, and (iii) the date on which the Borrowers and the Required Lenders
waive all Funding Defaults of such Defaulting Lender in writing.

“Default Rate” has the
meaning set forth in Section 3.04(a) (Default Interest Rate).

“Defaulted Loan” has
the meaning provided in Section 2.06 (Defaulting Lenders).

“Defaulting Lender”
has the meaning provided in Section 2.06 (Defaulting Lenders).

“DG Offtake Agreements”
means any agreement relating to the sale of Distillers Grains by any Borrower with a scheduled term in excess of one year and with
payments thereunder expected to be in excess of three million Dollars ($3,000,000) and each agreement between any Borrower and
Pacific Ag Products relating to the sale or marketing of Distillers Grains.

“Discharge Date” means
the date on which (a) all outstanding Commitments have been terminated and (b) all amounts payable in respect of the Obligations
have been irrevocably paid in full in cash (other than obligations under the Financing Documents that by their terms survive and
with respect to which no claim has been made by the Senior Secured Parties).

“Distillers Grains”
means DDG, WDG, and any other form of distillers grain products (including syrup) marketed by any Borrower from time to time.

“Dollar” and the sign
“$” mean lawful money of the United States.

    	Exhibit A-11

    	 

    

“Domestic Office” means,
relative to any Lender, the office of such Lender designated on Schedule 1.01(a) or designated in the Lender Assignment
Agreement pursuant to which such Lender became a Lender hereunder or such other office of a Lender (or any successor or assign
of such Lender) within the United States as may be designated from time to time by written notice from such Lender, as the case
may be, to the Borrowers’ Agent and the Administrative Agent.

“Eligible Assignee”
means (a) any Lender, (b) any Existing Lender, (c) an Affiliate of any Lender or any Existing Lender, (d) an Approved Fund, (e)
a QIB that is not an Affiliate of any Loan Party and (f) any other Person (other than a natural person) approved by (i) the Administrative
Agent and (ii) so long as no Default or Event of Default has occurred and is continuing, the Borrower’s Agent (each such
approval not to be unreasonably withheld or delayed).

“Environmental Affiliate”
means any Person, only to the extent of, and only with respect to matters or actions of such Person for which, any Borrower could
reasonably be expected to have liability as a result of such Borrower retaining, assuming, accepting or otherwise being subject
to liability for Environmental Claims relating to such Person, whether the source of such Borrower’s obligation is by contract
or operation of Law.

“Environmental Approvals”
means any Governmental Approvals required under applicable Environmental Laws.

“Environmental Claim”
means any written notice, claim, demand or similar written communication by any Person alleging potential liability or requiring
or demanding remedial or responsive measures (including potential liability for investigatory costs, cleanup, remediation and mitigation
costs, governmental response costs, natural resources damages, property damages, personal injuries, fines or penalties) in each
such case (x) either (i) with respect to environmental contamination-related liabilities or obligations with respect to which any
of the Borrowers could reasonably be expected to be responsible that are, or could reasonably be expected to be, in excess of two
hundred thousand Dollars ($200,000) in the aggregate, or (ii) that has or could reasonably be expected to result in a Material
Adverse Effect and (y) arising out of, based on or resulting from (i) the presence, release or threatened release into the environment,
of any Materials of Environmental Concern at any location, whether or not owned by such Person; (ii) circumstances forming the
basis of any violation, or alleged violation, of any Environmental Laws or Environmental Approvals; or (iii) exposure to Materials
of Environmental Concern.

“Environmental Laws”
means all Laws applicable to the Project relating to pollution or protection of human health, safety or the environment (including
ambient air, surface water, ground water, land surface or subsurface strata), including Laws relating to emissions, discharges,
releases or threatened releases of Materials of Environmental Concern, or otherwise applicable to the Project relating to the manufacture,
processing, distribution, use, treatment, storage, disposal, transport or handling of Materials of Environmental Concern.

“Equity Interests” means,
with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all
of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other
ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock
of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from
such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including
partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options,
rights or other interests are outstanding on any date of determination, in each such case including all voting rights and economic
rights related thereto.

    	Exhibit A-12

    	 

    

“ERISA” means the Employee
Retirement Income Security Act of 1974, as amended, and any successor statute of similar import, together with the regulations
thereunder, in each case as in effect from time to time. References to sections of ERISA also refer to any successor sections.

“ERISA Affiliate” means
any Person, trade or business that, together with any Borrower, is or was treated as a single employer under Section 414 of
the Code or Section 4001 of ERISA.

“ERISA Plan” means any
Plan that is not a Multiemployer Plan.

“Ethanol Offtake Agreements”
means any agreement relating to the sale of ethanol by any Borrower with a scheduled term in excess of one year and with payments
thereunder expected to be in excess of three million Dollars ($3,000,000), and each agreement between any Borrower and Kinergy
relating to the sale or marketing of ethanol.

“Eurodollar Loan” means
any Loan bearing interest at a rate determined by reference to the Eurodollar Rate and the provisions of Article II (Commitments
and Funding) and Article III (Repayments, Prepayments, Interest and Fees).

“Eurodollar Office”
means, relative to any Lender, the office of such Lender designated as such on Schedule 1.01(a) or designated in the
Lender Assignment Agreement pursuant to which such Lender became a Lender hereunder or such other office of a Lender as designated
from time to time by notice from such Lender to the Borrowers’ Agent and the Administrative Agent pursuant to Section 4.04
(Obligation to Mitigate) that shall be making or maintaining Eurodollar Loans of such Lender hereunder.

“Eurodollar Rate” means,
for any Interest Period with respect to any Eurodollar Loan, an interest rate per annum equal to the rate per annum obtained by
dividing (x) LIBOR for such Interest Period and such Eurodollar Loan, by (y) a percentage equal to (i) 100% minus (ii) the Eurodollar
Reserve Percentage for such Interest Period.

“Eurodollar Reserve Percentage”
means, for any day during any Interest Period, the reserve percentage (expressed as a decimal, carried out to five decimal places)
in effect on such day, whether or not applicable to any Lender, under regulations issued from time to time by the F.R.S. Board
for determining the maximum reserve requirement (including any emergency, supplemental or other marginal reserve requirement) with
respect to eurocurrency funding (currently referred to as “Eurocurrency Liabilities”). The Eurodollar Rate for each
outstanding Eurodollar Loan shall be adjusted automatically as of the effective date of any change in the Eurodollar Reserve Percentage.

    	Exhibit A-13

    	 

    

“Event of Abandonment”
means with respect to any Plant any of the following shall have occurred: (i) the abandonment by the applicable Borrower of the
operation or maintenance of such Plant for a period of more than ten (10) consecutive days (other than as a result of force majeure,
an Event of Taking or a Casualty Event), (ii) the suspension of all or substantially all of any Borrower’s activities with
respect to such Plant, other than as the result of a force majeure, Event of Taking or Casualty Event, for a period of more than
ten (10) consecutive days, or (iii) any written acknowledgement by any Borrower of a final decision to take any of the foregoing
actions; provided that neither Cold Shutdown nor Hot Idle shall constitute an Event of Abandonment under any of clauses (i), (ii)
or (iii).

“Event of Default” means
any one of the events specified in Section 9.01 (Events of Default).

“Event of Taking” means
any taking, exercise of rights of eminent domain, public improvement, inverse condemnation, condemnation or similar action of or
proceeding by any Governmental Authority relating to any material part of any Plant, the Project, any Equity Interests of any Borrower,
or any other assets thereof.

“Event of Total Loss”
means the occurrence of a Casualty Event affecting all or substantially all of any Plant, the Project or the assets of any Borrower.

“Excluded Taxes” means,
with respect to any Agent or any Lender or any other recipient of any payment to be made by or on account of any Obligation of
the Borrowers hereunder, (a) income or franchise Taxes imposed on (or measured by) its net income levied as a result of a present
or former connection between such Agent, such Lender or such other recipient and the jurisdiction of the Governmental Authority
imposing such Tax or any political subdivision or taxing Authority thereof or therein (other than such Agent’s, such Lender’s
or such other recipient’s having executed, delivered or performed its obligations or recovered a payment under, or enforced,
this Agreement or any other Financing Document), (b) any branch profits Tax imposed by the United States, or any similar Tax imposed
by any other jurisdiction described in clause (a) above, or (c) any United States withholding Tax to the extent that is imposed
on amounts payable to such Agent or such Lender at the time such Agent or such Lender becomes a party to this Agreement or such
other Financing Document.

“Exercise of Remedies”
means with respect to any Indebtedness the exercise of any remedy (judicially or non-judicially) in respect of such Indebtedness
including an acceleration of such Indebtedness (with or without the taking of any action), the commencement of any action, suit
or proceeding in respect of such Indebtedness or the application of any collateral to such Indebtedness.

“Existing Accounts Bank”
means the “Accounts Bank” as defined in the Amended Credit Agreement.

“Existing Administrative Agent”
means the “Administrative Agent” as defined in the Amended Credit Agreement.

“Existing Agents” means
the Existing Accounts Bank, the Existing Administrative Agent and the Existing Collateral Agent.

    	Exhibit A-14

    	 

    

“Existing Collateral Agent”
means the “Collateral Agent” as defined in the Amended Credit Agreement.

“Existing Credit Agreement”
has the meaning set forth in the Recitals.

“Existing Credit Agreement Amendment”
has the meaning set forth in the Recitals.

“Existing Discharge Date”
means the “Discharge Date” as defined in the Amended Credit Agreement.

“Existing Financing Documents”
means the “Financing Documents” as defined in the Amended Credit Agreement.

“Existing Lenders” means
the “Lenders” as defined in the Amended Credit Agreement.

“Existing Pledgor Consent”
means the Written Consent in Lieu of Special Meeting of New PE Holdco LLC, dated as of September 14, 2012, among certain of the
equity holders of the Pledgor.

“Existing Security Documents”
means the “Security Documents” as defined in the Amended Credit Agreement.

“Existing Senior Secured Parties”
means the “Senior Secured Parties” as defined in the Amended Credit Agreement.

“Existing Transaction Documents”
means the “Transaction Documents” as defined in the Amended Credit Agreement.

“Extraordinary Proceeds Account”
has the meaning provided in Section 8.01(i) (Establishment of Project Accounts) of the Amended Credit Agreement

“F.R.S. Board” means
the Board of Governors of the Federal Reserve System or any successor thereto.

“Federal Funds Effective Rate”
means, for any day, the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) equal to the weighted average
of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers
on such day, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not
so published for any day that is a Business Day, the average of the quotations for such day for such transactions received by the
Administrative Agent from three federal funds brokers of recognized standing selected by the Required Lenders.

    	Exhibit A-15

    	 

    

“Fee Letters” means
(i) the Fee Letter among the Administrative Agent, the Collateral Agent and the Borrowers, dated on or about the Closing Date
and (ii) the Fee Letter among the Accounts Bank and the Borrowers, dated as of on or about the Closing Date, setting forth
certain fees that will, from time to time, become due and payable to the Agents.

“Fees” means, collectively,
each of the fees payable by the Borrowers for the account of any Lender or Agent pursuant to Section 3.11 (Fees).

“Financial Asset” has
the meaning provided in Section 8.09(b) (Representations, Warranties and Covenants of Accounts Bank).

“Financing Documents”
means:

		(i)	this Agreement;

		(ii)	the Notes;

		(iii)	the Security Documents;

		(iv)	the Interest Rate Protection Agreements, if any;

		(v)	the Fee Letters;

		(vi)	each Blocked Account Agreement;

		(vii)	the Sponsor Support Agreement;

		(viii)	the other financing and security agreements, documents and instruments delivered in connection with this Agreement; and

		(ix)	each other document designated as a Financing Document by the Borrowers’ Agent and the Administrative Agent.

“Fiscal Quarter” means
any quarter of a Fiscal Year.

“Fiscal Year” means
any period of twelve (12) consecutive calendar months ending on December 31.

“Floor Price” means
the average of the OPIS daily mean quoted price for Chicago pipeline/ethanol plus .01 U.S. dollars per gallon effective the bill
of lading (BOL) date, the publication immediately prior to the BOL date and the publication day immediately following the BOL date
plus a location differential equal to the average of the OPIS daily mean quoted price for Los Angeles pipeline/ethanol minus Chicago
pipeline/ethanol for the period of January 2010 — December 2010 plus a quality differential of .045 U.S. dollars per gallon.
If the BOL date is a Sunday, then the first publication day prior to and the two (2) publication days immediately following the
BOL date shall apply. If the BOL date is a Saturday or holiday, then the two (2) publication days prior to and the one (1) publication
day immediately following the BOL date shall apply.

    	Exhibit A-16

    	 

    

“Funded Loan” means
the outstanding principal balance of any Loan that has been Funded by a Lender pursuant to Section 2.01 (Loans), excluding,
for the avoidance of doubt, any Capitalized Interest.

“Funding” means the
incurrence of each Loan on a single date (including the Closing Date).

“Funding Date” means,
with respect to each Funding, the date on which funds are disbursed by the Administrative Agent, on behalf of the Lenders, to the
Borrowers in accordance with Section 2.03 (Funding of Loans).

“Funding Default” has
the meaning specified in Section 2.06 (Defaulting Lenders).

“Funding Notice” means
each request for Funding in the form of Exhibit 2.02 delivered in accordance with Section 2.02 (Notice of
Fundings).

“GAAP” means generally
accepted accounting principles in effect from time to time in the United States, applied on a consistent basis.

“Governmental Approval”
means any authorization, consent, approval, license, lease, ruling, permit, certification, exemption, filing for registration by
or with any Governmental Authority.

“Governmental Authority”
means any nation, state, sovereign, or government, any federal, regional, state, local or political subdivision and any entity
exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.

“Grain Supply Agreements”
means any agreement relating to the purchase or supply of grain to any Borrower with a scheduled term in excess of one year and
with payments thereunder expected to be in excess of two million Dollars ($2,000,000) and each agreement between any Borrower and
Pacific Ag Products relating to the purchase or supply of grain to such Borrower.

“Granting Lender” has
the meaning provided in Section 11.03(h) (Assignments).

“Guarantee” means, as
to any Person, (a) any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing
any Indebtedness or other obligation payable or performable by another Person (the “primary obligor”) in any manner,
whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance
or supply funds for the purchase or payment of) such Indebtedness or other obligation, (ii) to purchase or lease property, securities
or services for the purpose of assuring the obligee in respect of such Indebtedness or other obligation of the payment or performance
of such Indebtedness or other obligation, (iii) to maintain working capital, equity capital or any other financial statement condition
or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness
or other obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness
or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole
or in part), or (b) any Lien on any assets of such Person securing any Indebtedness or other obligation of any other Person, whether
or not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of
such Indebtedness to obtain any such Lien).

    	Exhibit A-17

    	 

    

“Heiskell” means J.D.
Heiskell Holdings, LLC, a California limited liability company.

“Heiskell GSA” means
the Grain Storage Agreement dated as of December 11, 2009 between Heiskell and Burley.

“Hot Idle” in respect
of a Plant, means the maintenance of such Plant in a state in which the Plant facilities are not producing ethanol with the exception
of completing work-in- process inventory, and a range of operations from a state wherein (i) Plant systems including fermentation
tanks are maintained with an amount of work-in-process Product to a state in which such systems have been emptied and cleaned and
the required process water and chemicals have been removed from the Plant facilities and (ii) Plant facilities operate with either
a full complement of head count, or, subject to prior written notice and consultation with the Administrative Agent (in the case
of any reduction in headcount that is not the result of a termination for cause or a voluntary resignation by any person working
at such Plant) a reduced headcount. “Hot Idle” does not include or contemplate a shutdown of such plant’s utility
systems or any cessation of compliance monitoring with respect to Necessary Project Approvals.

“Increase Effective Date”
has the meaning set forth in Section 3.14(d) (Commitment Increase).

“Indebtedness” means,
as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities
in accordance with GAAP:

(a)          all obligations of such Person for
or in respect of moneys borrowed or raised, whether or not for cash by whatever means (including acceptances, deposits, discounting,
letters of credit, factoring, and any other form of financing which is recognized in accordance with GAAP in such Person’s
financial statements as being in the nature of a borrowing or is treated as “off-balance sheet” financing);

(b)          all obligations of such Person evidenced
by bonds, debentures, notes, loan agreements or other similar instruments;

(c)          all obligations of such Person for
the deferred purchase price of property or services;

(d)          all obligations of such Person under
conditional sale or other title retention agreements relating to property or assets acquired by such Person (even though the rights
and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property
or are otherwise limited in recourse);

    	Exhibit A-18

    	 

    

(e)          the maximum amount of all direct
or contingent obligations of such Person arising under letters of credit (including standby and commercial), bankers’ acceptances,
bank guaranties, surety bonds and similar instruments;

(f)          all Capitalized Lease Liabilities;

(g)          net obligations of such Person under
any Swap Contract;

(h)          all obligations of such Person to
purchase, redeem, retire, defease or otherwise make any payment in respect of any Equity Interests in such Person or any other
Person or any warrants, rights or options to acquire such Equity Interests, valued, in the case of redeemable preferred interests,
at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends; and

(i)          all Guarantees of such Person in
respect of any of the foregoing.

For all purposes hereof, the Indebtedness of any Person shall
include the Indebtedness of any partnership or joint venture (other than a joint venture that is itself a corporation or limited
liability company) in which such Person is a general partner or a joint venturer, unless such Indebtedness is expressly made non-recourse
to such Person. The amount of any net obligation under any Swap Contract on any date shall be deemed to be the Swap Termination
Value thereof as of such date.

“Indemnified Taxes”
means Taxes other than Excluded Taxes.

“Indemnitee” has the
meaning provided in Section 11.09 (Indemnification by the Borrowers).

“Independent Engineer”
means Harris Group Inc., or any replacement independent engineer appointed by the Required Lenders and, so long as no Default or
Event of Default has occurred and is continuing, reasonably acceptable to the Borrower’s Agent (which acceptance shall not
be unreasonably withheld or delayed).

“Information” has the
meaning provided in Section 11.18 (Treatment of Certain Information; Confidentiality).

“Initial Annual Forecast”
means the initial forecast of the projected requirements for Operation and Maintenance Expenses and Maintenance Capital Expenses
on a monthly basis for each Plant prepared by the Borrowers and attached hereto as Schedule 6.01(m)B.

“Initial Budget” means
the initial budget reflecting projected cash flows, operating disbursements, payroll disbursements, non-operating disbursements
and cash balances of the Borrowers, prepared by the Borrowers and attached hereto as Schedule 6.01(m)A.

    	Exhibit A-19

    	 

    

“Insolvency Proceeding”
means, with respect to any Person:

		(i)	any case commenced by or against such Person under the Bankruptcy Code or any similar federal or state law for the relief of
debtors, any other proceeding for the reorganization, recapitalization or adjustment or marshalling of the assets or liabilities
of such Person, any receivership or assignment for the benefit of creditors relating to such Person or any similar case or proceeding
relative to such Person or its creditors, as such, in each case whether or not voluntary;

		(ii)	any liquidation, dissolution, marshalling of assets or liabilities or other winding up of or relating to such Person , in each
case whether or not voluntary and whether or not involving bankruptcy or insolvency; or

		(iii)	any other proceeding of any type or nature in which substantially all claims of creditors of such Person are determined and
any payment or distribution is or may be made on account of such claims.

“Insurance and Condemnation Proceeds
Accounts” means, collectively, the Madera Insurance and Condemnation Proceeds Account, the Boardman Insurance and Condemnation
Proceeds Account, the Stockton Insurance and Condemnation Proceeds Account and the Burley Insurance and Condemnation Proceeds Account.

“Insurance and Condemnation Proceeds
Request Certificate” means a certificate, in substantially the form of Exhibit 8.07 to the Amended Credit
Agreement, executed by an Authorized Officer of the Borrowers’ Agent and setting forth proposed instructions for the transfer
or withdrawal of Insurance Proceeds or Condemnation Proceeds, as the case may be, from an Insurance and Condemnation Proceeds Account.

“Insurance Consultant”
means any insurance consultant appointed by the Required Lenders and, so long as no Default or Event of Default has occurred and
is continuing, reasonably acceptable to the Borrower’s Agent (which acceptance shall not be unreasonably withheld or delayed).

“Insurance Proceeds”
means all proceeds of any insurance policies required pursuant to this Agreement or otherwise obtained with respect to any Borrower,
any Plant or the Project that are paid or payable to or for the account of any Borrower, or the Collateral Agent as loss payee,
or additional insured (other than Business Interruption Insurance Proceeds and proceeds of insurance policies relating to third
party liability).

“Intercreditor Agreement”
means the Intercreditor Agreement, dated as of the Closing Date, among the Collateral Agent, the Existing Collateral Agent, the
Administrative Agent and the Existing Administrative Agent, as acknowledged and, as to certain provisions thereof, agreed by the
Borrowers and the Borrowers’ Agent, in substantially the form attached hereto as Exhibit B.

“Interest Payment Date”
means, with respect to any Loan without duplication, the last day of each Interest Period applicable to each Funding of which such
Loan is a part.

    	Exhibit A-20

    	 

    

“Interest Period” means,
with respect to any Eurodollar Loan, the period beginning on (and including) the date on which such Eurodollar Loan is made pursuant
to Section 2.03 (Funding of Loans) or the date on which each successive interest period for each such Eurodollar
Loan is determined pursuant to Section 3.03 (Interest Rates) and ending on (and including) the day that numerically
corresponds to such date one (1) month thereafter; provided, that (i) if such Interest Period would otherwise end on a day that
is not a Business Day, such Interest Period shall end on the next following Business Day (unless such next following Business Day
is in a different a calendar month, in which case such Interest Period shall end on the next preceding Business Day), (ii) any
Interest Period that begins on the last Business Day of a month (or on a day for which there is no numerically corresponding day
in the month at the end of such Interest Period) shall end on the last Business Day of the month at the end of such Interest Period,
(iii) no Interest Period shall end after any Monthly Date unless the aggregate outstanding principal amount of Eurodollar Loans
having Interest Periods which end on or prior to such Monthly Date shall be at least equal to the aggregate principal amount of
Eurodollar Loans due and payable on or prior to such Monthly Date, and (iv) no Interest Period may end later than the Maturity
Date.

“Interest Period Notice”
means a notice in substantially the form attached hereto as Exhibit 3.03, executed by an Authorized Officer of the
Borrowers’ Agent.

“Interest Rate Protection Agreement”
means each interest rate swap, collar, put, or cap, or other interest rate protection arrangement, with a Qualified Counterparty,
in each such case that is reasonably satisfactory to the Administrative Agent and is entered into in accordance with Section 7.02(u)
(Negative Covenants - Interest Rate Protection Agreement).

“Interest Rate Protection Provider”
means a Qualified Counterparty that is party to an Interest Rate Protection Agreement.

“Kirby Equipment” means
the equipment leased by Pacific Ag Products pursuant to the Lease Agreement dated as of September 19, 2008 between Pacific Ag Products
and Kirby Manufacturing Inc. (“KMI”) as assigned by KMI to Agricredit Acceptance LLC on September 30, 2008.

“Kinergy” means Kinergy
Marketing, LLC, an Oregon limited liability company.

“Law” means, with respect
to any Governmental Authority, any constitutional provision, law, statute, rule, regulation, ordinance, treaty, order, decree,
judgment, decision, common law, holding, injunction, Governmental Approval or requirement of such Governmental Authority. Unless
the context clearly requires otherwise, the term “Law” shall include each of the foregoing (and each provision
thereof) as in effect at the time in question, including any amendments, supplements, replacements, or other modifications thereto
or thereof, and whether or not in effect as of the date of this Agreement.

“Leased Premises” means,
with respect to the Boardman Plant, the Premises, as defined in the Boardman Lease and, with respect to the Stockton Plant, the
Premises, as defined in the Stockton Lease.

“Leases” means, collectively,
the Boardman Lease and the Stockton Lease.

“Lender Assignment Agreement”
means a Lender Assignment Agreement, substantially in the form of Exhibit 11.03.

    	Exhibit A-21

    	 

    

“Lenders” means the
persons identified as “Lenders” and listed on the signature pages of this Agreement and each other Person that acquires
the rights and obligations of a Lender hereunder pursuant to Section 11.03 (Assignments).

“LIBOR” means, for any
Interest Period:

(a)the rate per annum equal to the
rate determined by the Administrative Agent to be the offered rate that appears on the page of the Telerate screen (or any successor
thereto) that displays an average British Bankers Association Interest Settlement Rate for deposits in Dollars (for delivery on
the first day of such Interest Period) with a term equivalent to such Interest Period, determined as of approximately 11:00 a.m.
(London time) two (2) Business Days prior to the first day of such Interest Period; or

(b)if the rate referenced in the preceding
clause (a) does not appear on such page or service or such page or service is not available, the rate per annum equal to the rate
determined by the Administrative Agent to be the offered rate on such other page or other service that displays an average British
Bankers Association Interest Settlement Rate for deposits in Dollars (for delivery on the first day of such Interest Period) with
a term equivalent to such Interest Period, determined as of approximately 11:00 a.m. (London time) two (2) Business Days prior
to the first day of such Interest Period; or

(c)if the rates referenced in the preceding
clauses (a) and (b) are not available, the last available rate for LIBOR pursuant to this definition.

Notwithstanding the foregoing, in no event
shall LIBOR be less than a rate per annum equal to four percent (4%).

“Lien” means any security
interest, mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, bailment, conditional sales or title retention
agreement, lien (statutory or otherwise), charge against or interest in property, in each case of any kind, to secure payment of
a debt or performance of an obligation.

“Liquidity Agreement”
dated as of June 7, 2012 among the Pacific Holdings, Burly, Boardman, Stockton, Kinergy and Pacific Ag Products.

“Loan” has the meaning
provided in Section 2.01 (Loans); provided that “Loans” shall include any Capitalized Interest added
to the principal amount of any Loans in accordance with Section 3.02 (Interest Payment Dates).

“Loan Parties” means,
collectively, each Borrower and the Pledgor.

“Local Account” means
any local bank account (other than the Project Accounts) in the name of any Borrower.

“Madera” has the meaning
set forth in the Preamble.

    	Exhibit A-22

    	 

    

“Madera Deed of Trust”
means the Deed of Trust, Security Agreement, Financing Statement, Fixture Filing and Assignment of Leases, Rents and Security Deposits,
in form and substance reasonably satisfactory to the Lenders and the Collateral Agent, dated on or about the Closing Date, made
by Madera to Stewart Title Guaranty Company, as trustee, for the benefit of the Collateral Agent, as beneficiary.

“Madera Insurance and Condemnation
Proceeds Account” has the meaning provided in Section 8.01(e) (Establishment of Project Accounts)
of the Amended Credit Agreement.

“Madera LLC Agreement”
means the Fourth Amended and Restated Limited Liability Company Operating Agreement of Madera dated as of June 29, 2010.

“Madera Plant” means
the ethanol production facility located at Madera, California, with a capacity of approximately forty (40) million gallons-per-year
of denatured ethanol, including the Site on which such facility is located, and all buildings, structures, improvements, easements
and other property related thereto.

“Madera Pledge Agreement”
means the Pledge and Security Agreement, in form and substance reasonably satisfactory to the Lenders and the Collateral Agent,
dated on or about the Closing Date, among Pacific Holding, Madera and the Collateral Agent, pursuant to which Pacific Holding pledges
one hundred percent (100%) of the Equity Interests in Madera to the Collateral Agent.

“Madera Security Agreement”
means the Assignment and Security Agreement, in form and substance reasonably satisfactory to the Lenders and the Collateral Agent,
dated on or about the Closing Date, made by Madera in favor of the Collateral Agent.

“Madera Subordination Agreement”
means that certain Subordination Agreement, dated as of the Closing Date, by and among Madera, the Collateral Agent and the Existing
Collateral Agent.

“Maintenance Capital Expense Account”
has the meaning set forth in Section 8.01(c) (Establishment of Project Accounts) of the Amended Credit Agreement.

“Maintenance Capital Expenses”
means all expenditures by the Borrowers for regularly scheduled (or reasonably anticipated) major maintenance of the Project, Prudent
Ethanol Operating Practice and vendor and supplier requirements constituting major maintenance (including teardowns, overhauls,
capital improvements, replacements and/or refurbishments of major components of the Project).

“Major Project Party”
means Pacific Ethanol (until the termination of the Asset Management Agreement), each Offtaker, each Corn Supplier, the landlord
under each Lease, Heiskell, the guarantor under any Project Document Guarantee guarantying the obligations of any other Major Project
Party and any other Project Party designated as a Major Project Party by the Administrative Agent and the Borrowers’ Agent.

“Mandatory Prepayment”
means a prepayment in accordance with Section 3.08 (Mandatory Prepayment).

    	Exhibit A-23

    	 

    

“Material Adverse Effect”
means any event, development or circumstance that has had or could reasonably be expected to have a material adverse effect in
respect of any Plant or the Project on (i) the business, assets, property, condition (financial or otherwise) or operations (as
applicable) of any Borrower, (ii) the ability of any Borrower or any other Loan Party or any Project Party to perform its material
obligations under any Transaction Document to which it is a party, (iii) creation, perfection or priority of the Liens granted,
or purported to be granted, in favor, or for the benefit, of the Collateral Agent or (iv) the rights or remedies of any Senior
Secured Party under any Financing Document; provided that clauses (i) or (ii) of this definition shall not be a Material Adverse
Effect with respect to any Borrower if such event, development or circumstance results from the Cold Shutdown of a Plant.

“Materials of Environmental Concern”
means chemicals, pollutants, contaminants, wastes, toxic substances and hazardous substances, any toxic mold, radon gas or other
naturally occurring toxic or hazardous substance or organism and any material that is regulated in any way, or for which liability
is imposed, pursuant to an Environmental Law.

“Maturity Date” means
June 25, 2013 or such later date on or prior to June 25, 2016, as may be agreed to in any Maturity Date Extension.

“Maturity Date Extension”
has the meaning given to such term in Section 11.01(c) (Amendments, Etc.).

“Maximum Rate” has the
meaning provided in Section 11.10 (Interest Rate Limitation).

“Monthly Date” means
the last Business Day of each calendar month; provided, that for Loans made on the Closing Date the first Monthly Date shall be
deemed to be November 30, 2012.

“Monthly Period” means
each one (1) month period beginning on (and including) the day immediately following a Monthly Date and ending on (and including)
the next Monthly Date.

“Moody’s” means
Moody’s Investors Service Inc., and any successor thereto that is a nationally recognized rating agency.

“Mortgaged Property”
means all real property right, title and interest of each Borrower that is subject to the relevant Mortgage in favor of the Collateral
Agent.

“Mortgages” means, together,
the Madera Deed of Trust, the Boardman Deed of Trust, the Stockton Deed of Trust and the Burley Deed of Trust.

“Multiemployer Plan”
means a Plan that is a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA.

“Necessary Project Approvals”
means (i) all material Governmental Approvals that are required under applicable Law to be obtained by any Borrower in connection
with the ownership and operation of a Plant at its full nameplate capacity as contemplated by the Transaction Documents and (ii)
the Governmental Approvals described in Section 5.03(a) (Governmental Approvals).

    	Exhibit A-24

    	 

    

“Necessary Project Contracts”
means all material contracts, agreements, technology licenses, instruments, letters, understandings, or other documentation that
are required to be obtained by any Borrower in connection with the operation of the applicable Plant as contemplated by the Transaction
Documents.

“Non-Appealable” means,
with respect to any specified time period allowing an appeal of any ruling under any constitutional provision, Law, statute, rule,
regulation, ordinance, treaty, order, decree, judgment, decision, certificate, holding or injunction that such specified time period
has elapsed without an appeal having been brought.

“Non-Consenting Lender”
has the meaning set forth in Section 11.01 (Amendments, Etc.).

“Non-U.S. Lender” has
the meaning set forth in Section 4.07(e) (Taxes - Foreign Lenders).

“Non-Voting Lender”
means any Lender who (a) is a Defaulting Lender, (b) is a Loan Party, a Project Party or any Affiliate or Subsidiary thereof or
(c) has sold a participation in the Loan held by it to any such Person (to the extent of such participation).

“Notes” means the promissory
notes of the Borrowers evidencing the Loans, including any promissory notes issued by any Borrower in connection with assignments
of any Loan of a Lender, in each case substantially in the form of Exhibit 2.04, as they may be amended, restated,
supplemented or otherwise modified from time to time.

“Notice of Suspension”
has the meaning provided in Section 8.18 (Notices of Suspension of Accounts).

“Obligations” means
and includes all loans, advances, debts, liabilities, Indebtedness and obligations, howsoever arising, owed to the Agents, the
Lenders or any other Senior Secured Party of every kind and description (whether or not evidenced by any note or instrument and
whether or not for the payment of money), direct or indirect (including those acquired by assumption), absolute or contingent,
due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or
against any Borrower of any Insolvency Proceeding naming such Borrower as the debtor in such proceeding, regardless of whether
such interest and fees are allowed claims in such proceeding, pursuant to the terms of this Agreement or any of the other Financing
Documents, including all principal, interest, fees, charges, expenses, attorneys’ fees, costs and expenses, accountants’
fees and Consultants’ fees payable by the Borrowers hereunder or thereunder.

“Offtaker” means each
counterparty to each DG Offtake Agreement and each Ethanol Offtake Agreement.

“Operating Account”
has the meaning provided in Section 8.01(b) (Establishment of Project Accounts) of the Amended Credit Agreement.

    	Exhibit A-25

    	 

    

“Operating Account Withdrawal
Certificate” means a certificate in substantially the form of Exhibit 8.04 to the Amended Credit Agreement,
duly executed by an Authorized Officer of the Borrowers’ Agent, directing the transfer or withdrawal of funds from the Operating
Account.

“Operating Statement”
means an operating statement with respect to each Plant, in substantially the form of Exhibit 7.03(1).

“Operation and Maintenance Expenses”
means the sum without duplication of all (i) reasonable and necessary expenses of administering, managing and operating, and generating
Products for sale from, the Project and maintaining it in good repair and operating condition, (ii) costs associated with the supply
and transportation of all corn, natural gas, electricity and other supplies and raw materials to the Project and distribution and
sale of Products from the Project that any Borrower is obligated to pay, (iii) all reasonable and necessary insurance costs, (iv)
property, sales and franchise taxes to the extent that any Borrower is liable to pay such taxes to the taxing authority (other
than taxes imposed on or measured by income or receipts) to which the Project, may be subject (or payment in lieu of such taxes
to which the Project may be subject), (v) reasonable and necessary costs and fees incurred in connection with obtaining and maintaining
in effect Necessary Project Approvals, (vi) reasonable and arm’s-length legal, accounting and other professional fees attendant
to any of the foregoing items and, (vii) the reasonable costs of administration and enforcement of the Transaction Documents. In
no event shall Maintenance Capital Expenses be considered Operation and Maintenance Expenses.

“Organic Documents”
means, with respect to any Person that is a corporation, its certificate of incorporation, its by-laws and all shareholder agreements,
voting trusts and similar arrangements applicable to any of its authorized shares of capital stock and, with respect to any Person
that is a limited liability company, its certificate of formation or articles of organization and its limited liability agreement.

“Original Credit Agreement”
means the Credit Agreement, dated as of June 25, 2010, by and among the Borrowers, the Borrowers’ Agent, each of the Lenders
from time to time party thereto, WestLB, as administrative agent for the lenders thereunder, collateral agent for the senior secured
parties thereunder and issuing bank thereunder, and the Accounts Bank, as accounts bank thereunder, prior to its amendment and
restatement (and subsequent amendment) as the Existing Credit Agreement.

“Pacific Ag Products”
means Pacific Ag. Products, LLC, a California limited liability company.

“Pacific Ethanol” means
Pacific Ethanol, Inc., a Delaware corporation.

“Pacific Ethanol Guarantees”
means each guaranty to be made by Pacific Ethanol, guaranteeing the performance and payment of the obligations of Kinergy or Pacific
Ag Products, as the case may be, under each of the Ethanol Offtake Agreements, DG Offtake Agreements, and Grain Supply Agreements
to which Kinergy or Pacific Ag Products are party.

“Pacific Holding” has
the meaning set forth in the Preamble.

    	Exhibit A-26

    	 

    

“Pacific Holding LLC Agreement”
means the Second Amended and Restated Limited Liability Company Agreement of Pacific Holding dated as of June 29, 2010.

“Pacific Holding Pledge Agreement”
means the Pledge and Security Agreement, in form and substance reasonably satisfactory to the Lenders and the Collateral Agent,
dated on or about the Closing Date, among Pacific Holding, Pledgor and the Collateral Agent, pursuant to which Pledgor pledges
one hundred percent (100%) of the Equity Interests in Pacific Holding to the Collateral Agent.

“Pacific Holding Security Agreement”
means the Assignment and Security Agreement, in form and substance reasonably satisfactory to the Lenders and the Collateral Agent,
dated on or about the Closing Date, made by Pacific Holding in favor of the Collateral Agent.

“Participant” has the
meaning provided in Section 11.03(d) (Assignments).

“Patriot Act” means
United States Public Law 107-56, Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism (USA PATRIOT ACT) of 2001, and the rules and regulations promulgated thereunder from time to time in effect.

“PBGC” means the Pension
Benefit Guaranty Corporation and any entity succeeding to any or all of its functions under ERISA.

“PE Newco LLC Agreement”
means the Limited Liability Company Agreement of New PE Holdco LLC dated as of June 29, 2010.

“Permitted Commodity Hedge”
means any non-speculative Swap Contract in respect of certain commodities entered into in accordance with the Commodity Hedging
Policy.

“Permitted Indebtedness”
means Indebtedness identified in Section 7.02(a) (Negative Covenants - Restrictions on Indebtedness of the Borrowers).

“Permitted Liens” means
Liens identified in Section 7.02(b) (Negative Covenants - Liens).

“Permitted Tax Distribution”
means, with respect to any distributee that is required to pay tax as a result of its direct or indirect ownership of the Borrowers,
an amount equal to (a) the Effective Tax Rate multiplied by (b) such distributee’s estimated share of the taxable income
of Pacific Holding and the other Borrowers (after netting or otherwise taking account of a distributee’s shares of the income,
loss, deduction and credit associated with the distributee’s interest in the Borrowers) that the distributee is reasonably
expected to have to report for income tax purposes for the month distributed to the extent necessary to fund a distributee’s
timely payment to a Governmental Authority of tax liability (including estimated payments thereof) and subject to correction as
described below. “Effective Tax Rate” means the highest combined federal and state tax rate on corporations,
applicable to any distributee, after giving effect to the maximum amount of state income tax deductible for federal income tax
purposes. Permitted Tax Distributions as estimated for purposes of a Monthly Date shall be subject to later correction to reflect
amounts as actually reported on an income tax return by a distributee for federal and state income tax purposes. Thus, on any Monthly
Date, the Permitted Tax Distribution means the amount calculated as the product of (a) and (b), above, adjusted by the difference,
if any, between the Permitted Tax Distribution for the preceding Monthly Date as estimated for such date and the Permitted Tax
Distribution for that preceding Monthly Date as finally determined.

    	Exhibit A-27

    	 

    

“Permitted Variance”
means, for each Budget Period, the product of (x) the aggregate amount of the Budget for such Budget Period and (y) 10%.

“Person” means any natural
person, corporation, partnership, limited liability company, firm, association, trust, government, governmental agency or any other
entity, whether acting in an individual, fiduciary or other capacity.

“Plan” means an employee
pension benefit plan (as defined in Section 3(3) of ERISA) subject to Title IV of ERISA or Section 412 of the Code that
is sponsored or maintained by any Borrower or any ERISA Affiliate, or in respect of which any Borrower or any ERISA Affiliate has
any obligation to contribute or liability.

“Plants” means, collectively,
the Madera Plant, the Boardman Plant, the Stockton Plant and the Burley Plant.

“Pledge Agreements”
means, collectively, the Madera Pledge Agreement, the Boardman Pledge Agreement, the Stockton Pledge Agreement, the Burley Pledge
Agreement and the Pacific Holding Pledge Agreement.

“Pledgor” means New
PE Holdco LLC, a Delaware limited liability company.

“Process Agent” means
any Person appointed as agent by any Borrower or any Project Party, as required under the Financing Documents, to receive on behalf
of itself and its property services of copies of summons and complaint or any other process which may be served in connection with
any action or proceeding before any court arising out of or relating to this Agreement or any other Financing Document to which
it is a party, including CT Corporation System.

“Products” means ethanol,
Distillers Grains, carbon dioxide, and any other co product or by-product produced in connection with the production of ethanol
at the Plants.

“Project” means each
Plant and all auxiliary and other facilities constructed or to be constructed by or on behalf of the applicable Borrowers pursuant
to the Project Documents relating to each such Plant or otherwise, together with all fixtures and improvements thereto and each
Site and all other real property, easements and rights-of-way held by or on behalf of the applicable Borrowers and all rights to
use easements and rights-of-way of others.

“Project Accounts” means
the Revenue Account, the Operating Account, the Maintenance Capital Expense Account, the Debt Service Reserve Account, the Insurance
and Condemnation Proceeds Accounts and the Extraordinary Proceeds Account, including any sub-account within such accounts.

    	Exhibit A-28

    	 

    

“Project Document Guarantees”
means each guarantee (by an Affiliate or otherwise) of the performance of any Project Party’s obligations under a Project
Document, including the Pacific Ethanol Guarantees and any other such guarantee required as a condition to approval of any Project
Document in accordance with this Agreement.

“Project Documents”
means:

		(i)	the Asset Management Agreement;

		(ii)	the Leases;

		(iii)	the Grain Supply Agreements;

		(iv)	the Ethanol Offtake Agreements;

		(v)	the DG Offtake Agreements;

		(vi)	the Burley Heiskell GSA;

		(vii)	the Stockton Heiskell GSA;

		(viii)	the Boardman CHS GSA;

		(ix)	the Borrower LLC Agreements;

		(x)	the Project Document Guarantees;

		(xi)	the Liquidity Agreement;

		(xii)	any other documents designated as a Project Document by the Borrowers’ Agent and the Administrative Agent;

		(xiii)	each Additional Project Document; and

		(xiv)	any replacement agreement for any of such agreements.

“Project Document Termination
Payments” means all payments that are required to be paid to or for the account of any Borrower as a result of the termination
of any Project Document.

“Project Party” means
each Person (other than the Borrowers) who is a party to a Project Document.

“Prudent Ethanol Operating Practice”
means those reasonable practices, methods and acts that (i) are commonly used in the regions where the Plants are located to manage,
operate and maintain ethanol production, distribution, equipment and associated facilities of the size and type that comprise the
Project safely, reliably, and efficiently and in compliance with applicable Laws, manufacturers’ warranties and manufacturers’
and licensor’s recommendations and guidelines, and (ii) in the exercise of reasonable judgment, skill, diligence, foresight
and care are expected of an ethanol plant operator, in order to efficiently accomplish the desired result consistent with safety
standards, applicable Laws, manufacturers’ warranties, manufacturers’ recommendations and, in the case of the Project,
the Project Documents. Prudent Ethanol Operating Practice does not necessarily mean one particular practice, method, equipment
specifications or standard in all cases, but is instead intended to encompass a broad range of acceptable practices, methods, equipment
specifications and standards.

    	Exhibit A-29

    	 

    

“QIB” means a Qualified
Institutional Buyer as such term is defined in Rule 144A promulgated pursuant to the Securities Act
of 1933.

“Qualified Counterparty”
means any of the following: (i) any Person who is a Lender, the Administrative Agent, or the Collateral Agent on the date the relevant
Interest Rate Protection Agreement is entered into or (ii) any Affiliate of any Person listed in clause (i).

“RCRA” means the Resource
Conservation and Recovery Act (42 U.S.C. § 6901 et seq.), as amended, and all rules, regulations, standards, guidelines, and
publications issued thereunder.

“Register” has the meaning
set forth in Section 11.03(c) (Assignments).

“Related Parties” means,
with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents and advisors
of such Person and of such Person’s Affiliates.

“Removal,” “Remedial”
and “Response” actions shall include the types of activities covered by CERCLA, RCRA, and other comparable Environmental
Laws, and whether the activities are those which might be taken by a Governmental Authority or those which a Governmental Authority
or any other Person might seek to require of waste generators, handlers, distributors, processors, users, storers, treaters, owners,
operators, transporters, recyclers, reusers, disposers, or other Persons under “removal,” “remedial,” or
other “response” actions.

“Reportable Event” means
a “reportable event” within the meaning of Section 4043(c) of ERISA.

“Required Cash Sweep”
means each mandatory prepayment of the Loans made pursuant to Section 3.08(a)(v) (Mandatory Prepayment).

“Required Existing Lenders”
means the “Required Lenders” as defined in the Amended Credit Agreement.

“Required Lenders” means
Lenders (excluding all Non-Voting Lenders) holding in excess of fifty percent (50.00%) of the outstanding principal amount of the
Loans and the undisbursed amount of the Aggregate Commitment (excluding the principal amounts of any Loans made by, and any Commitments
of, any Non-Voting Lenders). 

“Restoration or Replacement Plan”
means a plan and time schedule, reasonably satisfactory to the Required Lenders and the Independent Engineer, for the application
of Insurance Proceeds or Condemnation Proceeds arising from any Casualty Event or Event of Taking, as the case may be, and any
other funds available to the Borrowers with which to restore or replace any Plant (or any portion thereof) affected by such Casualty
Event or Event of Taking, as the case may be.

    	Exhibit A-30

    	 

    

“Restricted Payments”
means any (a) dividend or other distribution (whether in cash, securities or other property), or any payment (whether in cash,
securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement,
defeasance, acquisition, cancellation or termination of any Equity Interests of any Borrower, or on account of any return of capital
to any holder of any such Equity Interest in, or any other Affiliate of, any Borrower, or any option, warrant or other right to
acquire any such dividend or other distribution or payment and (b) any payment of any management, consultancy, administrative,
services, or other similar payments to any Person who owns, directly or indirectly, any Equity Interest in any Borrower, or any
Affiliate of any such Person (provided that (i) payments made under the Affiliated Project Documents when due and payable in accordance
with the terms thereof and the terms of the Financing Documents, (ii) any Permitted Tax Distributions, and (iii) payments of operating
expenses of the Pledgor set forth in the then- current Budget shall in each case not constitute Restricted Payments).

“Revenue Account” has
the meaning set forth in Section 8.01(a) (Establishment of Project Accounts) of the Amended Credit Agreement.

“Revenue Account Withdrawal Certificate”
means a certificate in substantially the form of Exhibit 8.03 of the Amended Credit Agreement, duly executed by an
Authorized Officer of the Borrowers’ Agent, directing the transfer or withdrawal of funds from the Revenue Account.

“S&P” means Standard
& Poor’s Ratings Services, a division of The McGraw Hill Companies, Inc., and any successor thereto that is a nationally
recognized rating agency.

“Security” means the
security created in favor of the Collateral Agent pursuant to the Security Documents.

“Security Agreements”
means, collectively, the Madera Security Agreement, the Boardman Security Agreement, the Stockton Security Agreement, the Burley
Security Agreement and the Pacific Holding Security Agreement.

“Security Documents”
means:

		(i)	each Mortgage and each Subordination Agreement;

		(ii)	this Agreement (to the extent that it relates to the Project Accounts);

		(iii)	the Intercreditor Agreement;

		(iv)	the Consents;

		(v)	the Pledge Agreements;

    	Exhibit A-31

    	 

    
	

		(vi)	the Security Agreements;

		(vii)	any other document designated as a Security Document by the Borrowers’ Agent and the Administrative Agent; and

		(viii)	any fixture filings, financing statements, notices, authorization letters, or other certificates filed, recorded or delivered
in connection with the foregoing.

“Senior Secured Parties”
means the Lenders, the Agents, any Interest Rate Protection Provider, and each of their respective successors, transferees and
assigns.

“Shortfall” has the
meaning provided in Section 3.14(c) (Commitment Increase).

“Site” means, with respect
to each Plant, those certain parcels described on Schedule 5.13(a) with respect to such Plant.

“Site Specific Bond”
means Site Certificate Bond, Bond No. 0590288, in the amount of $863,200 issued by Fidelity Insurance Company in favor of the State
of Oregon, acting by and through the Energy Facility Sitting Council, as the amount of such bond may be increased from time to
time as permitted by this Agreement.

“Solvent” means, with
respect to any Person, that as of the date of determination both (i) (A) the then fair saleable value of the property of such Person
is (y) greater than the total amount of liabilities (including Contingent Liabilities but excluding amounts payable under intercompany
loans or promissory notes) of such Person and (z) not less than the amount that will be required to pay the probable liabilities
on such Person’s then existing debts as they become absolute and matured considering all financing alternatives and potential
asset sales reasonably available to such Person; (B) such Person’s capital is not unreasonably small in relation to its business
or any contemplated or undertaken transaction; and (C) such Person does not intend to incur, or reasonably believe that it will
incur, debts beyond its ability to pay such debts as they become due; and (ii) such Person is “solvent” within the
meaning given that term and similar terms under applicable Laws relating to fraudulent transfers and conveyances. For purposes
of this definition, the amount of any Contingent Liability at any time shall be computed as the amount that, in light of all of
the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or
matured liability.

“Sponsor Support Agreement”
means the Amended and Restated Sponsor Support Agreement, dated as of October 22, 2008, among Pacific Holding, Pacific Ethanol
and the Administrative Agent.

“SPV” has the meaning
provided in Section 11.03(h) (Assignments).

“SSA Assignment and Assumption
Agreement” means the Assignment and Assumption Agreement, dated as of June 25, 2010, among Pacific Holding, Pacific Ethanol,
WestLB as administrative agent under the Borrowers’ prepetition Credit Agreement dated as of February 27, 2007 and as administrative
agent under the Original Credit Agreement, regarding the Sponsor Support Agreement.

    	Exhibit A-32

    	 

    

“Stockton” has the meaning
set forth in the Preamble.

“Stockton Deed of Trust”
means the Deed of Trust, Security Agreement, Financing Statement, Fixture Filing and Assignment of Leases, Rents and Security Deposits,
in form and substance reasonably satisfactory to the Lenders and the Collateral Agent, dated on or about the Closing Date, made
by Stockton to Stewart Title Guaranty Company, as trustee, for the benefit of the Collateral Agent, as beneficiary.

“Stockton Heiskell GSA”
means the Grain Storage Agreement dated as of December 10, 2010 between Heiskell and Stockton, as amended by that certain Amendment
No. 1 to Grain Storage Agreement dated November 17, 2011.

“Stockton Insurance and Condemnation
Proceeds Account” has the meaning provided in Section 8.01(g) (Establishment of Project Accounts)
of the Amended Credit Agreement.

“Stockton Lease” means
the lease between the Stockton Port District and Stockton.

“Stockton LLC Agreement”
means the Third Amended and Restated Limited Liability Company Operating Agreement of Stockton dated as of June 29, 2010.

“Stockton Plant” means
the ethanol production facility located at Stockton, California, with a capacity of approximately fifty (50) million gallons-per-year
of denatured ethanol, including the Site on which such facility is located, and all buildings, structures, improvements, easements
and other property related thereto.

“Stockton Pledge Agreement”
means the Pledge and Security Agreement, in form and substance reasonably satisfactory to the Lenders and the Collateral Agent,
dated on or about the Closing Date, among Pacific Holding, Stockton and the Collateral Agent, pursuant to which Pacific Holding
pledges one hundred percent (100%) of the Equity Interests in Stockton to the Collateral Agent.

“Stockton Revenue Event”
means the occurrence of both (i) the failure of Kinergy to have in full force and effect contracts to sell at least sixty percent
(60%) of the ethanol production capacity of the Stockton Plant at prices equal to or greater than the Floor Price and (ii) after
January 1, 2011, any event reasonably likely to result in Stockton failing to receive in cash at least ninety percent (90%) of
the revenue from the proposed California Ethanol Producer Incentive Program (“CEPIP”) set forth in the 2011
CEPIP Projections except receipt by Stockton of revenue from other sources sufficient to disqualify Stockton from CEPIP.

“Stockton Security Agreement”
means the Assignment and Security Agreement, in form and substance reasonably satisfactory to the Lenders and the Collateral Agent,
dated on or about the Closing Date, made by Stockton in favor of the Collateral Agent.

“Stockton Subordination Agreement”
means that certain Subordination Agreement, dated as of the Closing Date, by and among Stockton, the Collateral Agent and the Existing
Collateral Agent.

    	Exhibit A-33

    	 

    

“Subordination Agreements”
means, collectively, the Madera Subordination Agreement, the Boardman Subordination Agreement, the Stockton Subordination Agreement
and the Burley Subordination Agreement.

“Subsidiary” of any
Person means a corporation, partnership, joint venture, limited liability company or other business entity of which a majority
of the shares of securities or other Equity Interests having ordinary voting power for the election of directors or other governing
body (other than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially
owned, or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both,
by such Person.

“Swap Contract” means
(a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps,
commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps
or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange
transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions,
currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options
to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, (b)
any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed
by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign
Exchange Master Agreement, or any other master agreement, including any such obligations or liabilities under any such master agreement
and (c) for the avoidance of doubt, includes any Interest Rate Protection Agreements and excludes any contract for the physical
sale or purchase of any commodity.

“Swap Termination Value”
means, in respect of any one or more Swap Contracts (including any Interest Rate Protection Agreements), after taking into account
the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date
such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s),
and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such
Swap Contracts, in accordance with the terms of the applicable Swap Contract, or, if no provision is made therein, as determined
based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts
(which may include a Lender or any Affiliate of a Lender).

“Syndication Agent”
means Credit Suisse Loan Funding LLC solely in such capacity.

“Tax” or “Taxes”
means any present or future taxes (including income, gross receipts, license, payroll, employment, excise, severance, stamp, documentary,
occupation, premium, windfall profits, environmental, capital stock, franchise, profits, withholding, social security (or similar),
unemployment, disability, real property, personal property, sales, use, transfer, registration, value-added, ad valorem, alternative
or add-on minimum, estimated, or other tax of any kind whatsoever), levies, imposts, duties, fees or charges (including any interest,
penalty, or addition thereof) imposed by any government or any governmental agency or instrumentality or any international or multinational
agency or commission.

    	Exhibit A-34

    	 

    

“Tax Return” means all
returns, declarations, reports, claims for refund and information returns and statements of any Person required to be filed with
respect to, or in respect of, any Taxes, including any schedule or attachment thereto and any amendment thereof.

“Termination Event”
means (i) a Reportable Event with respect to any ERISA Plan, (ii) the initiation of any action by any Borrower, any ERISA Affiliate
or any ERISA Plan fiduciary to terminate an ERISA Plan (other than a standard termination under Section 4041(b) of ERISA)
or the treatment of an amendment to an ERISA Plan as a termination under Section 4041(e) of ERISA, (iii) the institution of
proceedings by the PBGC under Section 4042 of ERISA to terminate an ERISA Plan or to appoint a trustee to administer any ERISA
Plan, (iv) the withdrawal of any Borrower or any ERISA Affiliate from a Multiemployer Plan during a plan year in which such Borrower
or such ERISA Affiliate was a “substantial employer” as defined in Section 4001(a)(2) of ERISA or the cessation
of operations which results in the termination of employment of twenty percent (20%) of Multiemployer Plan participants who are
employees of any Borrower or any ERISA Affiliate, (v) the partial or complete withdrawal of any Borrower or any ERISA Affiliate
from a Multiemployer Plan, or (vi) any Borrower or any ERISA Affiliate is in default (as defined in Section 4219(c)(5) of
ERISA) with respect to payments to a Multiemployer Plan.

“Title Insurance Company”
means Stewart Title Guaranty Company or such other title insurance company or companies reasonably satisfactory to the Required
Lenders.

“Title Insurance Policy”
has the meaning provided in Section 6.01(n) (Conditions to Closing - Title Insurance).

“Transaction Documents”
means, collectively, the Financing Documents and the Project Documents.

“Unfunded Benefit Liabilities”
means, with respect to any ERISA Plan at any time, the amount (if any) by which (i) the present value of all accrued benefits calculated
on an accumulated benefit obligation basis and based upon the actuarial assumptions used for accounting purposes (i.e.,
those determined in accordance with FASB statement No. 35 and used in preparing the ERISA Plan’s financial statements) exceeds
(ii) the fair market value of all ERISA Plan assets allocable to such benefits, determined as of the then most recent actuarial
valuation report for such ERISA Plan.

“Uniform Commercial Code”
or “UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York; provided,
in the event that, by reason of mandatory provisions of law, any or all of the perfection or priority of the security interest
in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, the
term “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of provisions
relating to such perfection or priority and for purposes of definitions related to such provisions.

    	Exhibit A-35

    	 

    

“United States” or “U.S.”
means the United States of America, its fifty States and the District of Columbia.

“United States Person”
means a “United States person” as defined in Section 7701(a)(30) of the Code.

“WDG” means wet distillers
grains produced by the Borrowers at the Plants.

“Wells Fargo” means
Wells Fargo Bank, N.A.

“WestLB” means WestLB
AG, New York Branch.

 

 

 

 

 

 

 

 

 

Exhibit A-36

    	 

    	 

    

 

EXHIBIT B

to Credit Agreement

 

 

 

Intercreditor Agreement

 

 

 

Filed as Exhibit 10.8 to Pacific Ethanol, Inc.’s
Quarterly Report on Form 10-Q for the quarter ended September 30, 2012, filed with the Securities Exchange Commission on
November 14, 2012.

 

 

 

 

 

 

 

 

 

 

 

    	Exhibit B-1

    	 	 

    
 

EXHIBIT C

to Credit Agreement

 

 

 

Amended Credit Agreement

 

 

 

Filed as Exhibit 10.6 to Pacific Ethanol, Inc.’s
Quarterly Report on Form 10-Q for the quarter ended September 30, 2012, filed with the Securities Exchange Commission on
November 14, 2012.

 

 

 

 

    	C-1

    	 	 

    
 

EXHIBIT 2.02

to Credit Agreement

[FORM OF]

FUNDING NOTICE

 

This Funding Notice (this “Funding
Notice”), dated as of [________], 20[__], is delivered to WELLS FARGO BANK, N.A., as administrative
agent (the “Administrative Agent”), pursuant to Section 2.02 of the Credit Agreement, dated as of October 29,
2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) among
Pacific Ethanol Holding Co. LLC, a Delaware limited liability company (“Pacific Holding”), Pacific Ethanol Madera
LLC, a Delaware limited liability company (“Madera”), Pacific Ethanol Columbia, LLC, a Delaware limited liability
company (“Boardman”), Pacific Ethanol Stockton LLC, a Delaware limited liability company (“Stockton”),
and Pacific Ethanol Magic Valley, LLC, a Delaware limited liability company (“Burley” and, together with Pacific
Holding, Madera, Boardman and Stockton, each a “Borrower” and collectively the “Borrowers”),
as borrowers, Pacific Holding, as Borrowers’ Agent, each of the Lenders from time to time party thereto, Wells Fargo
Bank, N.A., as Administrative Agent and Collateral Agent, and Amarillo National Bank, as accounts bank. This Funding Notice sets
forth certain undertakings of the Borrowers with respect to the transactions contemplated by the Credit Agreement. Capitalized
terms used herein but not otherwise defined herein shall have the respective meanings set forth in the Credit Agreement.

 

WHEREAS, the Borrowers wish to propose a Funding
of Loans under the Credit Agreement in accordance with Section 2.02 of the Credit Agreement and on the terms and conditions set
forth therein and herein.

 

WHEREAS, to induce the Lenders to extend credit
under the Credit Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the Borrowers hereby agree as follows:

 

Section
1. Funding Request. The Borrowers hereby irrevocably propose a Funding (the “Proposed Funding”)
of Loans in the amounts set forth below: [Note: each Funding Notice should only include those provisions applicable to the requested
Funding.]

 

(a)
[_____] Dollars ($[_____])
requested to be funded as [Eurodollar Loans][and
[_____]
Dollars ($[______])
requested to be funded as][Base Rate Loans]
for application in accordance with the Budget;

 

(b)
[_____] Dollars ($[_____])
requested to be funded as [Eurodollar Loans][and
[_____]
Dollars ($[______])
requested to be funded as][Base Rate Loans]
for application in accordance with the Initial Budget. 1

 

__________

1 Only on
Closing Date.

 

Exhibit
2.02-1

 

    	 

    	 

    

 

 

The
Funding Date proposed for the Proposed Funding is [_______],
20[__]
(the “Proposed Funding Date”). The Borrowers hereby certify that this Funding Notice is being delivered
to the Administrative Agent not later than 12:00 Noon New York City time five (5) Business Days prior to the Proposed Funding
Date, and that the Proposed Funding Date is a Business Day. 2

 

The Borrowers hereby request that on the
Proposed Funding Date the Administrative Agent deliver by wire transfer, in immediately available funds, the proceeds of such
Proposed Funding, which are subject to the limits set forth in Section 2.01(a) and Section 2.01(b) of the Credit Agreement, to
the Revenue Account. 3

 

Section
2. Certifications. The Borrowers certify that as of the Proposed Funding Date:

 

(i)
each of the conditions to the Proposed Funding set forth in Article VI of the Credit Agreement have been satisfied;

 

(ii)
the Borrowers are in compliance with all applicable conditions set forth in Article VI of the Credit Agreement, on and as
of the Proposed Funding Date, before and after giving effect to such Proposed Funding and to the application of the proceeds therefrom;

 

(iii)
each of the representations and warranties made by each of the Borrowers and the Pledgor in the Financing Documents is true
and correct in all material respects (except with respect to representations and warranties that expressly refer to an earlier
date), before and after giving effect to the Proposed Funding and to the application of the proceeds therefrom;

 

(iv)
no Default or Event of Default has occurred and is continuing or would occur as a result of the Proposed Funding;

 

(v)
since April 16, 2010, no Material Adverse Effect has occurred and is continuing;

 

(vi)
after giving effect to the Loans requested hereunder, the aggregate principal amount of the Funded Loans will not exceed
the Aggregate Commitment;

 

(vii)
each Borrower has all Necessary Project Approvals required under the Credit Agreement as of
the date of this Funding Notice, and the same are (i) in full force and effect and (ii) final
and Non-Appealable, except as a result of the Cold Shutdown of the Madera Plant; 4 and

 

(viii)
all and each of the statements contained in this Funding Notice are true and correct.

 

Section
3. Governing Law. This Funding Notice, and the rights and obligations of the parties hereunder shall be governed
by, and construed and interpreted in accordance with, the laws of the State of New York.

 

__________

2 5 Business Day requirement waived for the Closing
Date funding.

3 Or if otherwise agreed to by the Administrative
Agent, specify account wire instructions.

4 List any other Plants that are in Cold Shutdown
as approved in accordance with the Credit Agreement.

 

Exhibit
2.02-2

 

    	 

    	 

    

 

Section
4. Execution in Counterparts. This Funding Notice may be executed by the parties hereto in counterparts (and by different
parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall
constitute a single document.

 

The undersigned are executing this Funding
Notice not in their individual capacities but in their respective capacities as Authorized Officers of the Borrowers.

 

[The
remainder of this page is intentionally blank. The next page is the signature page.]

 

 

 

 

 

 

 

 

 

Exhibit 2.02-3 

 

    	 

    	 

    

IN
WITNESS WHEREOF, the undersigned have caused this Funding Notice to be duly executed and delivered as of the day and
year first written above.

 

 

	 	PACIFIC ETHANOL HOLDING CO. LLC 
	 	 
	 	 
	 	By:  ______________________________
	 	Name:
	 	Title: 
	 	 
	 	 
	 	PACIFIC ETHANOL MADERA LLC 
	 	 
	 	 
	 	By:  ______________________________
	 	Name:
	 	Title: 
	 	 
	 	 
	 	PACIFIC ETHANOL COLUMBIA, LLC 
	 	 
	 	 
	 	By:  ______________________________
	 	Name:
	 	Title: 
	 	 
	 	 
	 	PACIFIC ETHANOL STOCKTON LLC 
	 	 
	 	 
	 	By:  ______________________________
	 	Name:
	 	Title: 
	 	 
	 	PACIFIC ETHANOL MAGIC VALLEY, LLC
	 	 
	 	 
	 	By:  ______________________________
	 	Name:
	 	Title:

 

 

 

Exhibit 2.02-4

 

    	 

    	 

    
 

 

 

EXHIBIT 2.04

to Credit Agreement

[FORM OF NOTE]

	$[__________]	[__________________]

 

[__________], [____]

 

FOR VALUE RECEIVED, PACIFIC ETHANOL HOLDING
CO. LLC, PACIFIC ETHANOL MADERA LLC, PACIFIC ETHANOL COLUMBIA, LLC, PACIFIC ETHANOL STOCKTON LLC, AND PACIFIC ETHANOL MAGIC VALLEY,
LLC (collectively, the “Borrowers”), HEREBY JOINTLY AND SEVERALLY PROMISE TO PAY to the order of [__________________],
a [_________________] (the “Lender”), at its offices located at [__________________], the principal sum of [__________]
Dollars ($[__________]), plus the accrued and unpaid amount of any Capitalized Interest, or, if less, the aggregate unpaid principal
amount of the Loans made by the Lender to the Borrowers under the Credit Agreement, dated as of October 29, 2012 (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”) among the Borrowers, as
borrowers, Pacific Ethanol Holding Co. LLC, as Borrowers’ Agent, each of the Lenders from time to time party thereto,
Wells Fargo Bank, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”) and Collateral
Agent, and Amarillo National Bank, as accounts bank. Capitalized terms used herein but not otherwise defined herein shall have
the respective meanings set forth in the Credit Agreement.

 

The Borrowers also jointly and severally promise
to pay (i) interest on the unpaid principal amount hereof from the date hereof until paid in full at the rates and at the times
provided in the Credit Agreement and (ii) fees at such times and at such rates and amounts as specified in the Credit Agreement.

 

Principal, interest and fees are payable in
lawful money of the United States of America and in immediately available funds, at the times and in the amounts provided in the
Credit Agreement.

 

This Note is entitled to the benefits and
is subject to the terms and conditions of the Credit Agreement, and is entitled to the benefits of the security provided under
the Security Documents. As provided in the Credit Agreement, this Note is subject to mandatory prepayment and voluntary prepayment,
in whole or in part. The Borrowers jointly and severally agree to make prepayment of principal on the dates and in the amounts
specified in the Credit Agreement.

 

The Credit Agreement, among other things,
contains provisions for acceleration of the maturity hereof upon the happening of certain stated events.

 

Exhibit
2.04-1

 

    	 

    	 

    

 

The Lender is hereby authorized, at its option,
either (i) to endorse on the schedule attached hereto (or on a continuation of such schedule attached to this Note and made a part
hereof) an appropriate notation evidencing the date and amount of the Loans evidenced hereby and the date and amount of each principal
payment in respect thereof, or (ii) to record such Loans and such payments in its books and records. Such schedule or such books
and records, as the case may be, shall constitute prima facie evidence of the accuracy of the information contained therein, but
in no event shall any failure by the Lender to endorse or record pursuant to clauses (i) and (ii) be deemed to relieve any Borrower
from any of its obligations.

 

To the extent provided under the Credit Agreement
and to the maximum extent permitted by Law, each Borrower hereby waives presentment, demand, protest or notice of any kind in connection
with this Note. All amounts payable under this Note are payable without relief from valuation and appraisement Laws.

 

The Borrowers jointly and severally agree
to pay all costs and expenses, including without limitation attorneys’ fees, incurred in connection with the interpretation
or enforcement of this Note, in accordance with and to the extent provided by the Credit Agreement.

 

THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, UNITED STATES OF AMERICA, WITHOUT REFERENCE TO CONFLICTS OF LAWS (OTHER
THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

FOR PURPOSES OF SECTIONS 1272, 1273
AND 1275 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, THIS NOTE IS BEING ISSUED WITH ORIGINAL ISSUE DISCOUNT ON THE ISSUE
DATE OF THIS NOTE. THE ISSUER AGREES TO PROVIDE PROMPTLY TO EACH HOLDER OF THIS NOTE, UPON WRITTEN REQUEST (1) THE ISSUE PRICE,
(2) THE AMOUNT OF ORIGINAL ISSUE DISCOUNT AND (3) THE YIELD TO MATURITY OF THIS NOTE. ANY SUCH WRITTEN REQUEST SHOULD BE SENT
TO [●] AT THE FOLLOWING ADDRESS: [●]. 1
 

__________

1 Please
include name, address and telephone number of a representative of the issuer who will be able to provide this information.

 

 

 

Exhibit
2.04-2

 

     

     

    

 

	 	PACIFIC ETHANOL HOLDING CO. LLC,
	 	a Delaware limited liability company
	 	 
	 	By:______________________________
	 	Name:
	 	Title:
	 	 
	 	PACIFIC ETHANOL MADERA LLC,
	 	a Delaware limited liability company
	 	 
	 	By:______________________________
	 	Name:
	 	Title:
	 	 
	 	PACIFIC ETHANOL COLUMBIA, LLC,
	 	a Delaware limited liability company
	 	 
	 	By:______________________________
	 	Name:
	 	Title:
	 	 
	 	PACIFIC ETHANOL STOCKTON LLC,
	 	a Delaware limited liability company
	 	 
	 	By:______________________________
	 	Name:
	 	Title:
	 	 
	 	PACIFIC ETHANOL MAGIC VALLEY, LLC,
	 	a Delaware limited liability company
	 	 
	 	By:______________________________
	 	Name:
	 	Title:

 

Exhibit 2.04-3

    	 

    	 

    

 

Schedule to

Note

 

LOANS, MATURITIES AND PAYMENTS OF
PRINCIPAL

 

	Date	Amount of 

Loan	Maturity 

of Loan	Amount
    of Principal Paid or Prepaid	Unpaid Principal 

Balance	Notation

 Made By

 

 

 

Exhibit 2.04-4

 

    	 

    	 

    
 

EXHIBIT 3.03

to Credit Agreement

 

[FORM OF]

INTEREST PERIOD NOTICE

 

Wells Fargo Bank, N.A.,

as Administrative Agent for the Lenders

45 Broadway, 14th Floor

New York, NY 10006

Attention: Michael Pinzon, CMES-Pacific Ethanol

Facsimile: (212) 515-1576

Email: michael.d.pinzon@wellsfargo.com and hui.chen@wellsfargo.com

 

		Re:	PACIFIC ETHANOL HOLDING CO. LLC, PACIFIC ETHANOL MADERA LLC, PACIFIC ETHANOL COLUMBIA, LLC, PACIFIC ETHANOL STOCKTON LLC, AND
PACIFIC ETHANOL MAGIC VALLEY, LLC

 

Ladies and Gentlemen:

 

The undersigned, PACIFIC ETHANOL HOLDING
CO. LLC, PACIFIC ETHANOL MADERA LLC, PACIFIC ETHANOL COLUMBIA, LLC, PACIFIC ETHANOL STOCKTON LLC, and PACIFIC ETHANOL MAGIC VALLEY,
LLC (collectively, the “Borrowers”), refer to the Credit Agreement, dated as of October 29, 2012 (as amended,
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) among the Borrowers,
as borrowers, Pacific Holding, as Borrowers’ Agent, each of the Lenders from time to time party thereto, Wells Fargo
Bank, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”) and Collateral Agent, and
Amarillo National Bank, as accounts bank. Capitalized terms used herein but not otherwise defined herein shall have the respective
meanings set forth in the Credit Agreement.

 

The Borrowers hereby deliver to the Administrative
Agent this irrevocable notice pursuant to Section 3.03 of the Credit Agreement and irrevocably request the continuation or conversion
set forth below for the immediately succeeding Interest Period or Monthly Period, as applicable, for the Loans identified herein.

 

The Borrowers hereby elect [to continue
[each] Eurodollar Loan as (or convert [each] Base Rate Loan to) a Eurodollar Loan,] [and/or] [to convert [each] Eurodollar
Loan to a Base Rate Loan at the end of the current Interest Period], in each case as set forth on Schedule 1 hereto.

 

The Borrowers hereby certify that after
giving effect to the immediately succeeding Interest Periods or Monthly Periods, as applicable, set forth on Schedule 1,
there will be no more than eight (8) separate Eurodollar Loans outstanding.

 

In connection herewith, the Borrowers hereby
further certify that no Event of Default has occurred and is continuing. This Interest Period Notice is being delivered on or before
12:00 noon, New York City time at least four (4) Business Days prior to the end of each Interest Period or Monthly Period,
as applicable, set forth on Schedule 1 hereto.

 

[The
remainder of this page is intentionally blank. The next page is the signature page.]

 

Exhibit
3.03-2

 

 

    	 

    	 

    

IN WITNESS WHEREOF, the undersigned have
caused this Interest Period Notice to be duly executed by an Authorized Officer as of the date first above written.

 

	 	PACIFIC ETHANOL HOLDING CO. LLC
	 	
	 	 
	 	By:______________________________
	 	Name:
	 	Title:
	 	 
	 	PACIFIC ETHANOL MADERA LLC
	 	
	 	 
	 	By:______________________________
	 	Name:
	 	Title:
	 	 
	 	PACIFIC ETHANOL COLUMBIA, LLC
	 	
	 	 
	 	By:______________________________
	 	Name:
	 	Title:
	 	 
	 	PACIFIC ETHANOL STOCKTON LLC
	 	
	 	 
	 	By:______________________________
	 	Name:
	 	Title:
	 	 
	 	PACIFIC ETHANOL MAGIC VALLEY, LLC
	 	
	 	 
	 	By:______________________________
	 	Name:
	 	Title:

 

 

Exhibit
3.03-3

 

    	 

    	 

    

 

Schedule 1

to Interest Period Notice

 

	
        LOAN

 

        (specify loan type, including whether loan
        is Base Rate Loan or Eurodollar Loan)
	PRINCIPAL 

AMOUNT	CURRENT

 INTEREST

 PERIOD OR 

MONTHLY 

PERIOD ENDS ON	
        LOAN TYPE FOR

 IMMEDIATELY

 SUCCEEDING
        

INTEREST 

PERIOD

         

	 	$	 	 
	 	$	 	 

 

 

Exhibit 3.03-4

 

    	 

    	 

    
 

EXHIBIT 4.07

to Credit Agreement

 

 

 

FORM OF NON-U.S. LENDER STATEMENT

 

Reference is made to the Credit Agreement
(as amended, modified or otherwise supplemented from time to time in accordance with its terms, the “Credit Agreement”),
dated as of October 29, 2012, by and among Pacific Ethanol Holding Co. LLC, a Delaware limited liability company (“Pacific
Holding”), Pacific Ethanol Madera LLC, a Delaware limited liability company (“Madera”), Pacific Ethanol
Columbia, LLC, a Delaware limited liability company (“Boardman”), Pacific Ethanol Stockton LLC, a Delaware limited
liability company (“Stockton”), and Pacific Ethanol Magic Valley, LLC, a Delaware limited liability company
(“Burley” and, together with Pacific Holding, Madera, Boardman and Stockton, each a
“Borrower” and collectively the “Borrowers”), as borrowers, Pacific Holding, as Borrowers’
Agent, each of the Lenders from time to time party thereto, Wells Fargo Bank, N.A., as Administrative Agent (in such capacity,
the “Administrative Agent”) and Collateral Agent, and Amarillo National Bank, as accounts bank. Capitalized
terms used herein but not otherwise defined herein shall have the respective meanings set forth in the Credit Agreement.

 

The undersigned Non-U.S. Lender hereby certifies
as follows:

 

1.
The Non-U.S. Lender is the beneficial owner of any and all interests in the Obligations that it holds.

 

2.
The Non-U.S. Lender is not a “United States person” as defined in Code Section 7701(a)(30). Code Section 7701(a)(30)
defines a United States person as a citizen or resident of the United States; a domestic partnership; a domestic corporation; an
estate (other than a foreign estate); and a trust if a court within the United States is able to exercise primary supervision over
the administration of the trust and one or more United States persons have the authority to control all substantial decisions of
the trust.

 

3.
The Non-U.S. Lender is not a “bank” described in Section 881(c)(3)(A) of the Code.

 

4.
The Non-U.S. Lender is not a “10-percent shareholder” of the Borrowers within the meaning of Code Section 871(h)(3)(B).

 

5.
The Non-U.S. Lender is not a “controlled foreign corporation” receiving interest from a related person within
the meaning of Code Section 881(c)(3)(C).

 

6.
The Non-U.S. Lender undertakes to notify the Borrowers and Administrative Agent promptly upon the obsolescence or invalidity
of this Non-U.S. Lender Statement if, following the execution date hereof, any statement herein ceases to be true at any time while
the Non-U.S. Lender is entitled to payments of interest by the Borrowers under the Financing Documents.

 

Exhibit
4.07-1

 

    	 

    	 

    
 

 

The undersigned Non-U.S. Lender acknowledges
that this Non-U.S. Lender Statement is executed and delivered in order to substantiate its entitlement to an exemption from U.S.
withholding tax under the Code. Further, the undersigned individual certifies that it has the requisite authority to execute and
deliver this document for the Non-U.S. Lender.

 

	 	[NAME OF NON-U.S. LENDER]
	 	 
	 	By: ____________________________
	 	 
	 	Print Name:
	 	Title:
	 	Date:

 

 

Exhibit 4.07-2

 

 

 

    	 

    	 

    
 

Exhibit 6.01(k)
to Credit Agreement

 

 

[FORM OF]

  

INSURANCE CERTIFICATE

 

[INSERT AON TITLE AND ADDRESS]       

 

 

[__________ __], 2012

 

Wells Fargo Bank, N.A., as

Administrative Agent for the Lenders

45 Broadway, 14th Floor

New York, NY 10006

Attention: Michael Pinzon, CMES-Pacific Ethanol

Telephone: (212) 515-5264

Facsimile: (212) 515-1576

Email: michael.d.pinzon@wellsfargo.com and hui.chen@wellsfargo.com

 

		Re:	PACIFIC ETHANOL HOLDING CO. LLC, PACIFIC ETHANOL MADERA LLC, PACIFIC ETHANOL COLUMBIA, LLC, PACIFIC ETHANOL STOCKTON, LLC,
AND PACIFIC ETHANOL MAGIC VALLEY, LLC

 

Ladies and Gentlemen:

 

The undersigned is the insurance broker (in
such capacity, the “Insurance Broker”) of PACIFIC ETHANOL HOLDING CO. LLC (“Pacific Holding”),
a Delaware limited liability company, PACIFIC ETHANOL MADERA LLC (“Madera”), a Delaware limited liability company,
PACIFIC ETHANOL COLUMBIA, LLC (“Boardman”), a Delaware limited liability company, PACIFIC ETHANOL STOCKTON,
LLC (“Stockton”), a Delaware limited liability company, and PACIFIC ETHANOL MAGIC VALLEY, LLC (“Burley”),
a Delaware limited liability company (together, the “Borrowers”) and is delivering this certificate in connection
with that certain Credit Agreement, dated as of October 29, 2012 (as amended, restated, supplemented or otherwise modified from
time to time, the “Credit Agreement”) among the Borrowers, as borrowers, Pacific
Holding, as Borrowers’ Agent, each of the Lenders from time to time party thereto, Wells Fargo Bank, N.A., as Administrative
Agent (in such capacity, the “Administrative Agent”) and Collateral Agent, and Amarillo National Bank, as accounts
bank. Capitalized terms used herein but not defined herein shall have the respective meanings assigned to such terms in the Credit
Agreement.

 

The Insurance Broker acknowledges that pursuant
to the Credit Agreement, the Lenders will be providing financing to the Borrowers for the Projects and in so doing will be relying
on this certificate.

 

The Insurance Broker hereby further certifies
to the Administrative Agent that:

 

Exhibit
6.01(k)-1

 

    	 

    	 

    

 

		(i)	each Borrower has provided satisfactory evidenced of all insurance coverage required pursuant to and in accordance with Section
7.01(k) of the Credit Agreement, all such insurance policies are in full force and effect;

		(ii)	each such insurance policy is placed with insurance carriers with an AM Best, A-“X” or equivalent credit rating
or are otherwise acceptable;

 

The Insurance Broker confirms that:

 

		•	each such insurance policy has been endorsed with the Administrative Agent and the Senior Secured Parties as Additional Insured
and Loss Payee (where applicable);

		•	each such insurance policy permits a waiver of subrogation for the benefit of the Senior Secured Parties;

		•	each such insurance policy is primary (without contribution from any other policies the Senior Secured Parties may hold);

		•	each property insurance policy (where legally allowed) contains non-vitiation language to ensure such insurance policy will
remain in full force and effect for the benefit of the Senior Secured Parties; each such insurance policy permits a waiver of subrogation
for the benefit of the Senior Secured Parties;

		•	each property insurance policy contains a non-invalidation endorsement that provides the ability (but not the obligation) for
the Senior Secured Parties to pay premium and continue coverage in the event that any Borrower fails to make premium payments;
and

		•	each such insurance policy provides a minimum of 30-days’ written notice of cancellation to Administrative Agent, except
for cancellation based on non-payment of premium which provides for 10 days’ prior written notice.

 

It is our opinion that on the basis of the binders, certificates
and information evidenced to us by the Borrowers and their insurance carriers, the insurance evidenced is in compliance with the
requirements of the Credit Agreement.

 

A copy of the Insurance Broker’s and insurance carrier’s
certificates confirming the matters set forth above is attached hereto as Exhibit A.

 

The remainder of this page is intentionally blank. The next
page is the signature page.

 

 

Exhibit 6.01(k)-2

    	 

    	 

    

 

 

IN WITNESS WHEREOF, the undersigned has caused
this Insurance Broker’s Certificate to be duly executed by an authorized officer as of the date first above written.

 

 

	 	[AON]
	 	 
	 	 
	 	 
	 	By: ________________________
	 	Name: ______________________
	 	Title: _______________________

 

 

 

Exhibit
6.01(k)-3

 

 

 

 

    	 

    	 

    

 

EXHIBIT A

to Insurance Broker’s
Certificate

 

 

 

INSURANCE BROKER’S
AND INSURANCE CARRIER’S CERTIFICATES

 

 

 

[Attached]

 

 

 

 

    	Exhibit A-1

    	 	 

    

 

EXHIBIT 7.01(t)A

 

ESTOPPEL CERTIFICATE

 

		To:	Wells Fargo Bank, N.A.

45 Broadway, 14th Floor

New York, New York 10006

Attn: Michael Pinzon, CMES-Pacific Ethanol

 

Re: Stockton Port District Lease

 

The undersigned landlord (the
“Landlord”) hereby certifies to you as follows:

 

		1.	Landlord is the current owner of the Premises as defined in that certain Lease by and between Landlord
and Pacific Ethanol Stockton LLC, a Delaware limited liability company (the “Tenant”), dated February 5, 2007,
as modified by that certain First Addendum to Lease, dated August 1, 2008, between Landlord and Tenant (collectively, the “Lease”).
The Lease has not been cancelled, further modified, assigned, extended or amended, and there are no other agreements, written or
oral, affecting or relating to the Tenant’s lease of the Premises.

		2.	Attached hereto as Exhibit “A” is a true and correct copy of the “Premises Legal
Description,” attached as EXHIBIT “B” to the Lease pursuant to Section 2.4.5.3 therein.

		3.	The Lease is in full force and effect and, to the Landlord’s knowledge, is free from any
uncured default and from any event which could become a default under the Lease. As of the date hereof, the Landlord has no outstanding
claims against the Tenant or offsets or defenses against rent, and there are no outstanding disputes with the Tenant. The Rent
and other charges required to be paid under the Lease have been paid, including any and all advance payments, up through [___________]
[__], [____].

		4.	For so long as any obligation is outstanding under that certain Credit Agreement, dated as of October
29, 2012, between Wells Fargo Bank, N.A. (“Wells Fargo”), as the administrative agent, Tenant and each of the
other persons party thereto from time to time (the “Credit Agreement”), Wells Fargo shall have the right to
receive notices pursuant to Section 14.2.2 of the Lease. Wells Fargo hereby furnishes to Landlord the address to which such notices
shall be delivered (or at such other address as may be provided in writing from time to time by Wells Fargo or its successors and
assigns):

 

	To Wells Fargo:		Wells Fargo Bank, N.A.45 Broadway, 14th Floor

New York, New York 10006

Attention: Michael Pinzon, CMES-Pacific Ethanol

Telephone:(212) 515-5264

Facsimile:(212) 515-1576

E-mail:michael.d.pinzon@wellsfargo.com and

              hui.chen@wellsfargo.com

 

Exhibit
7.01(t)A-1

 

    	 

    	 

    

 

 

	 	 	 As of November 5, 2012:

 

 

150 East 42nd Street, 40th Floor

New York, New York 10017

Attention: Michael Pinzon, CMES-Pacific Ethanol

Telephone: (917) 260-1537

Facsimile: (917) 260-1594

	 	 	 
	With a Copy to:		Sidley Austin LLP555 West Fifth Street, Suite 4000

Los Angeles, CA 90013

Attn: Brian Flavell

Telephone:213-896-6603

Facsimile:213-896-6600

 

For so long as any obligation
is outstanding under the Credit Agreement, no default notice delivered to Tenant shall be effective with respect to the Premises
unless and until such default notice is also delivered to Wells Fargo pursuant to this Section 4.

 

		5.	For so long as any obligation is outstanding under the Credit Agreement, Wells Fargo shall have the opportunity to cure defaults
of Tenant pursuant to Sections 14.2.3 and 14.2.4 of the Lease.

		6.	For so long as any obligation is outstanding under the Credit Agreement, upon termination of the Lease, Wells Fargo shall have
the right to a direct lease with Landlord, subject to the conditions described in Section 14.7 of the Lease.

		7.	The Port Delivery Date under the Lease was February 7, 2007.

 

 

The undersigned has executed this Estoppel
Certificate with the knowledge and understanding that Wells Fargo Bank, N.A., as Mortgagee under the Lease, will be relying upon
this Estoppel Certificate and that the undersigned will be bound by this Estoppel Certificate. The statements contained herein
may be relied upon by Wells Fargo Bank, N.A. and its respective successors and assigns.

 

Dated this __ day of _____________, 2012.

 

	 	STOCKTON PORT DISTRICT
	 	 
	 	By:                                                    

Name:                                     

Title:                                       

 

 

Exhibit
7.01(t)A-2

 

     

     

    

 

Premises Legal Description

 

ALL THAT REAL PROPERTY SITUATE IN THE STATE
OF CALIFORNIA, COUNTY OF SAN JOAQUIN, CITY OF STOCKTON DESCRIBED AS FOLLOWS:

 

A PARCEL OF LAND BEING A PORTION OF SECTION
8, TOWNSHIP 1 NORTH, RANGE 6 EAST, MOUNT DIABLO BASE AND MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOW:

 

COMMENCING AT GPS OCCUPIED POINT 306 AS
SHOWN ON THAT CERTAIN MAP FILED FOR RECORD ON AUGUST 30, 1994 IN BOOK 33 OF SURVEYS AT PAGE 20, SAN JOAQUIN COUNTY RECORDS, SAID
POINT HAVING COORDINATES OF NORTHING 2167315.376 AND EASTING 6320382.066; THENCE SOUTH 11o23’12” WEST 609.05 FEET
TO THE TRUE POINT OF BEGINNING; THENCE SOUTH 02o49’08” EAST 809.96 FEET; THENCE SOUTH 87o07’38”
WEST 1303.28 FEET; THENCE ALONG A NON TANGENT CURVE TO THE RIGHT HAVING A RADIUS OF 491.67 FEET, A CENTRAL ANGLE OF 86o39’29”,
A CHORD BEARING AND A DISTANCE OF NORTH 42o45’42” WEST 674.76 FEET AND AN ARC LENGTH OF 743.64 FEET; THENCE NORTH
47o00’55” EAST 455.58 FEET; THENCE NORTH 87o10’52” EAST 1388.34 FEET TO THE TRUE POINT OF BEGINNING,
CONTAINING 30.00 ACRES, MORE OR LESS.

 

 

 

 

Exhibit
7.01(t)A-3

 

     

     

    

 

[Letterhead of Pacific Ethanol
Stockton LLC]

 

___________, 2012

 

 

	Port of Stockton
 General Offices
 2201 West Washington St., 95203
 P.O. Box 2089
 Stockton, CA 95201-2089
 Attn: Port Director	With a copy to;
 Neumiller & Beardslee
 P.O. Box 20 (95201-3020)
 509 W. Weber Ave.
 Stockton, CA 95203
 Attn: Thomas J. Shephard, Sr.

 

Re: Notice of Wells Fargo as Mortgagee

 

Ladies and Gentlemen,

Reference is made to
that certain Lease by and between the Stockton Port District (“Landlord”) and Pacific Ethanol Stockton LLC (“Tenant”),
dated as of February 5, 2007 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Stockton
Port District Lease”).

 

Wells Fargo Bank, N.A.
(“Wells Fargo”) is the administrative agent under that certain Credit Agreement (the “Credit Agreement”),
dated as of October 29, 2012, by and among Tenant, Wells Fargo and each of the other persons party thereto from time to time.
The Tenant’s obligations under the Credit Agreement have been secured by that certain Leasehold Deed of Trust, Security Agreement,
Financing Statement, Fixture Filing and Assignment of Leases, Rents and Security Deposits (the “Deed of Trust”),
dated as of October 29, 2012 by and among Tenant, as grantor, Fidelity National Title Company, as trustee, and Wells Fargo, as
beneficiary, in which Tenant granted a security interest over substantially all of its assets (including its interest in the Stockton
Port District Lease) in favor of Wells Fargo, as administrative agent for the lenders under the Credit Agreement.

 

We hereby notify you,
pursuant to Section 14.1 of the Stockton Port District Lease that (a) the Deed of Trust is a “Mortgage” (as defined
in the Stockton Port District Lease), (b) attached hereto as Exhibit A is a true and correct copy of the Deed of Trust,
as in effect on the date hereof, and (c) Wells Fargo’s notice address as a “Mortgagee” (as defined in the Stockton
Port District Lease) shall be:

 

Wells Fargo Bank, N.A.

45 Broadway, 14th Floor

New York, New York 10006

Attn: ______________

Fax: ______________

 

	 	
        Sincerely,

        

Pacific Ethanol Stockton LLC

	 	

By:                                          

       Name: 

       Title:

 

 

Exhibit
7.01(t)A-4

 

     

     

    

 

ACKNOWLEDGEMENT

 

Please acknowledge your receipt of this
notice by executing the signature block below and delivering the executed copy of this letter to Tenant in the self addressed,
stamped envelope provided.

 

	 	Stockton Port District
	 	 
	 	By:                                         

Name: Richard Aschieris

Title: Port Director

 

 

 

Exhibit
7.01(t)A-5

    	 

    	 

    
 

EXHIBIT A

 

Deed of Trust

 

[Please see attached.]

 

 

 

 

 

 

Exhibit
7.01(t)A-6

 

    	 

    	 

    

 

EXHIBIT 7.01(t)B

 

 

ESTOPPEL CERTIFICATE

 

		To:	Wells Fargo Bank, N.A.

45 Broadway, 14th Floor

New York, New York 10006

Attn: Michael Pinzon, CMES-Pacific Ethanol

 

Re: Port of Morrow Lease

 

The undersigned landlord (the
“Landlord”) hereby certifies to you as follows:

 

		1.	Landlord is the current owner of the Premises as defined in that certain Port of Morrow Lease dated
April 20, 2006, (the “Lease”) between Landlord and Pacific Ethanol Columbia, LLC, a Delaware limited liability
company, as tenant (the “Tenant”). The Lease has not been cancelled, modified, assigned, extended or amended,
and there are no other agreements, written or oral, affecting or relating to the Tenant’s lease of the Premises.

		2.	The Lease is in full force and effect and, to the Landlord’s knowledge, is free from default
and from any event which could become a default under the Lease. As of the date hereof, the Landlord has no outstanding claims
against the Tenant or offsets or defenses against rent, and there are no outstanding disputes with the Tenant.

		3.	For purposes of clarification, if an event of default under Section 19 of the Lease can not be
remedied within 30 days after written notice by the Landlord, the Lease may not be terminated by the Landlord pursuant to Section
20A if either the Mortgagee (as defined in the Lease) or the Tenant begins correction of any such default within such 30-day period
and such party thereafter proceeds with diligence and in good faith to remedy such default as soon as practicable.

		4.	In the event that either (i) the Lease is rejected, in whole or in part, by a trustee or debtor-in-possession
or otherwise in any bankruptcy or insolvency proceeding regarding the Tenant or any other person or entity or (ii) the Lease is
deemed to be in whole or in part a contract to extend “financial accommodations” within the meaning of Section 365
of the United States Bankruptcy Code, 11 U.S.C. § 365, and the order regarding an event described in clause (i) or (ii) has
not been stayed, then, within forty-five days after an event described in clause (i) or (ii) has occurred, Mortgagee or its assignee
or designee may notify the Landlord in writing that it intends and is legally authorized to perform the obligations of the Tenant
under the Lease, and in such event the Landlord will execute and deliver to Mortgagee or such assignee or designee a new agreement
with regard to that portion of the Lease affected by an event described in clauses (i) or (ii) above, as the case may be, for the
transactions contemplated by the Lease (the “New Lease”) pursuant to which each of the Landlord and Mortgagee
or its assignee or designee shall perform its respective obligations, to the extent required under the Lease. Such New Lease shall
be for the balance of the then-remaining term under the Lease before giving effect to such event described in clauses (i) or (ii)
above, as the case may be, and shall contain the same conditions, agreements, terms, provisions and limitations as the Lease (except
for any requirements that have been fulfilled by the Tenant prior to such rejection). References in this paragraph to the “Lease”
shall be deemed also to refer to the New Lease.

Exhibit 7.01(t)B-1

    	 

    	 

    

		5.	For so long as any obligation is outstanding under that certain Credit Agreement, dated as of October
29, 2012, between Wells Fargo Bank, N.A. (“Wells Fargo”), as the administrative agent, Tenant and each of the
other persons party thereto from time to time (the “Credit Agreement”), Wells Fargo shall have the right to
receive “notices” (as defined in the Lease) pursuant to Section 18(B)(ii) of the Lease. Wells Fargo hereby furnishes
to Landlord the address to which such notices shall be delivered (or at such other address as may be provided in writing from time
to time by Wells Fargo or its successors and assigns):

	To Wells Fargo:		Wells Fargo Bank, N.A.45 Broadway, 14th Floor

New York, New York 10006

Attention: Michael Pinzon, CMES-Pacific Ethanol

Telephone:(212) 515-5264

Facsimile:(212) 515-1576

E-mail: michael.d.pinzon@wellsfargo.com and

                hui.chen@wellsfargo.com

	 	 	 
	 	 	As of November 5, 2012:

 

150 East 42nd Street, 40th Floor

New York, New York 10017

Attention: Michael Pinzon, CMES-Pacific Ethanol

Telephone: (917) 260-1537

Facsimile: (917) 260-1594

	 	 	 
	With a Copy to:	 	Sidley Austin
LLP

555 West Fifth Street, Suite 4000

Los Angeles, CA 90013

Attn: Brian Flavell

Telephone:213-896-6603

Facsimile:213-896-6600

	 	 	 

 

 

For so long as any obligation
is outstanding under the Credit Agreement, no default notice delivered to Tenant shall be effective with respect to the Premises
unless and until such default notice is also delivered to Wells Fargo pursuant to Section 18(B)(ii) of the Lease and this Section
5.

 

		6.	For so long as any obligation is outstanding under the Credit Agreement, Wells Fargo shall have the opportunity to cure defaults
of Tenant pursuant to Section 18(B)(iii) of the Lease and Section 3 above.

Exhibit 7.01(t)B-2

    	 

    	 

    

 

The undersigned has executed this Estoppel
Certificate with the knowledge and understanding that Wells Fargo, as Mortgagee under the Lease, will be relying upon this Estoppel
Certificate and that the undersigned will be bound by this Estoppel Certificate. The statements contained herein may be relied
upon by Wells Fargo and its respective successors and assigns.

 

Dated this __ day of ___________, 2012.

	 	PORT OF MORROW
	 	 
	 	By:  ___________________________
 Name:  _____________________
 Title:    _____________________

 

 

 

 

 

Exhibit
7.01(t)(B)-3

 

    	 

    	 

    
 

EXHIBIT 7.03(l)

to Credit Agreement

Form of Operating Statement

 

See attached

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit
7.03(I)

    	 

    	 

    

 

Pacific Ethanol Holding Co, LLC

Monthly Flash Report to Members for August 2012

 

General Overview:

 

	 	Ø	PEHC produced approximately 95.0 million gallons in FY 2012 versus the annual budget of 102.4 million gallons.
	 	 	 
	 	Ø	PEHC produced 11.5 million gallons in August versus budget of 13.7 million gallons, a reduction of 19.7%. The primary cause of the shortfall is due to economic curtailment.
	 	 	 
	 	Ø	FY 2012 EBITDA was approx. $(14.7M) versus budget of $1.9M.
	 	 	 
	 	Ø	August EBITDA was $(0.8M) versus budget of $3.4M.

 

	(in millions)	 	FY 2012	 
	 	 	 	EBITDA	 	 	 	Gallons	 
	Columbia	 	$	(5.0	)	 	 	22.5	 
	Magic Valley	 	 	(2.6	)	 	 	37.4	 
	Stockton	 	 	(5.4	)	 	 	35.1	 
	Subtotal (Operating)	 	 	(13.0	)	 	 	95.0	 
	Madera	 	 	(0.5	)	 	 	–	 
	PEHC Corporate	 	 	(1.2	)	 	 	–	 
	Total PEHC	 	$	(14.7	)	 	 	95.0	 

 

Commodity Margin Summary:

 

Average market commodity margins for 2012
for the industry (21cpg) remain low due to persistent ethanol supply demand imbalance and extenuated by higher corn prices.

 

	 	 	Average - FY 2012	 
	 	 	Columbia	 	 	Magic Valley	 	 	Stockton	 	 	Madera	 	 	Actual Avg.	 	 	Plan Avg.	 
	($/Gallon)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ethanol	 	$	2.36	 	 	$	2.35	 	 	$	2.42	 	 	$	–	 	 	$	2.38	 	 	$	2.68	 
	WDG	 	 	0.74	 	 	 	0.74	 	 	 	0.73	 	 	 	–	 	 	 	0.73	 	 	 	0.66	 
	Corn	 	 	(2.78	)	 	 	(2.74	)	 	 	(2.80	)	 	 	–	 	 	 	(2.77	)	 	 	(2.76	)
	Natural Gas	 	 	(0.06	)	 	 	(0.05	)	 	 	(0.08	)	 	 	–	 	 	 	(0.06	)	 	 	(0.09	)
	Commodity Margin	 	$	0.26	 	 	$	0.29	 	 	$	0.27	 	 	$	–	 	 	$	0.27	 	 	$	0.49	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

Operations Summary:

 

	 	 	Production Data
	 	 	Aug-12	 	FY 2012
	 	 	Columbia	Magic Valley	Stockton	 	Columbia	Magic Valley	Stockton
	Ethanol Gallons Produced	mm	2.5	4.8	4.2	 	22.5	37.4	35.1
	Corn Bushels Used	mm	0.8	1.7	1.5	 	8.1	13.4	12.6
	Denatured Ethanol Yield	gal/bu	2.93	2.82	2.73	 	2.76	2.79	2.78
	Co-Product Tons Produced	mm	0.02	0.04	0.04	 	0.22	0.34	0.34
	Co-Product Yield	lbs/bu	49.3	47.0	53.2	 	54.2	50.7	53.9

 

 

 

PE Holdco Update/September 25, 2012

 

 

Exhibit
7.03(I)

    	 

    	 

    
Pacific Ethanol Holding Co, LLC

Monthly Flash Report to Members for August 2012

 

		Ø	Columbia

		•	Production for the month was 2.5 million gallons versus a quarterly budget of 3.3 million gallons.

		•	A tentative settlement has been agreed to in principle, with necessary paperwork to be completed in the next couple of weeks
related to the application submitted to the Oregon Tax Court requesting a change in the assessment of the plant value from $80.3M
to $45.0M for the tax year 2011/12. This will result in a refund this year of approximately $25K and the 2012/13 year will be adjusted
to this new value as well.

		Ø	Magic Valley

		•	Production for the month was 4.8 million gallons versus a quarterly budget of 5.5 million gallons.

		•	There was one excess emission reports filed with the Idaho State Department of Environmental Quality. This report was the excess
formaldehyde emission report and it will no longer be required once DEQ reviews and approves the source testing results.

		•	The source test was completed on July 13th with preliminary results indicating Magic Valley demonstrated compliance with the
new air permit. Final results are pending laboratory analysis of gas samples.

		•	There was a second excess emission report resulting from the failure of a value on the RTO, which was a 57 minute event. This
report has been verbally reported and a formal report will follow. No fine will be assessed.

		•	A new ‘Permit to Construct’ air permit was issued by the DEQ and source testing was conducted on August 13, 2012.
The results are under review. Once the DEQ converts the permit into an operating permit, the facility will be able to run at a
63MGY rate.

		Ø	Stockton

		•	Production for the month was 4.2 million gallons versus a quarterly budget of 5.0 million gallons.

		•	The plant continued with its blending of Milo with corn in response to the high corn prices. Blending approximately 32.5%
Milo during the month.

		Ø	Madera

		•	Property Tax Updates:

		§	2009/10: The appeal for 2009/10 had an assessed value of $66.9M, we were requesting $28.8M, and the Assessor assessed a final
value of $31.8M. We booked an estimated refund of $381K in August. We expect to receive these funds in Q4, 2012.

		§	2010/11: Currently, the appeal for 2010/11 has an assessed value of $58.7M and the assessor has informally given a valuation
of $30.3M. We booked an estimated refund of $346K in August based on a conservative estimated valuation of $35M. A time waiver
is in place to continue this matter to July 11, 2013.

		•	The plant has been shut down since 2009 and is in good mechanical condition.

 

 

PE Holdco Update/September 25, 2012 

Exhibit
7.03(I)

    	 

    	 

    

Pacific Ethanol Holding Co, LLC

Monthly Flash Report to Members for August 2012

 

Cash Flow Summary:

 

		Ø	During August, PEHC drew $2.0 million of the Exit Revolver bringing total outstanding to $38.4 million. As of September 21,
2012, no additional draws have occurred, but $1.0M has been request for the last week of September, bringing total outstanding
to $39.4 million with approximately $0.6 million of remaining availability as of the end of September based on the revised credit
agreement. The following table illustrates the Company’s sources and uses of cash for the month and fiscal year periods ended
August 31, 2012:

	 	 	Sources (Uses) of Cash	 
	 	 	Aug-12	 	 	FY 2012	 
	(in millions)	 	 	 	 	 	 
	Beginning Cash	 	$	0.30	 	 	$	2.10	 
	EBITDA	 	 	(0.80	)	 	 	(14.70	)
	Gain on disposal of equipment	 	 	–	 	 	 	0.10	 
	Change in working capital	 	 	(0.88	)	 	 	4.62	 
	CAPEX	 	 	(0.09	)	 	 	(0.89	)
	Interest	 	 	(0.50	)	 	 	(6.70	)
	Revolver Draw (Payment)	 	 	2.00	 	 	 	15.50	 
	Ending Cash	 	$	0.03	 	 	$	0.03	 

 

		Ø	Over the next 13 week forecast period ending December 21, 2012, PEHC is forecasted to borrow $5.5 million on the Exit Revolver,
increasing the outstanding balance to $43.9 million. PEHC is currently in discussions with its Lenders to address this following
cash forecast needs:

 

	
        Pacific Ethanol Holding Co. LLC 

        As of September 25, 2012

	 	13 Week Cash Flow Forecast ($mm)
	 	9/28/12	10/5/12	10/12/12	10/19/12	10/26/12	11/2/12	11/9/12	11/16/12	11/23/12	11/30/12	12/7/12	12/14/12	12/21/12
	Total Receipts	$     10.1	$       8.7	$         8.5	$         8.7	$         8.5	$       8.1	$       8.5	$         9.0	$         8.8	$         8.6	$       8.7	$         9.1	$     9.4
	Total Disbursements	$    (9.7)	$    (9.3)	$       (9.4)	$       (8.7)	$       (8.9)	$    (9.5)	$    (9.3)	$       (9.1)	$       (9.1)	$       (8.9)	$    (9.2)	$       (9.6)	$    (9.4)
	Revolver Draw (Repay)	$       1.0	$          -	$          -	$          -	$         1.5	$          -	$       1.0	$          -	$         0.5	$          -	$       1.5	$          -	$    -
	Net Cash Flow	$        1.4	$     (0.6)	$        (0.9)	$        (0.0)	$         1.1	$     (1.4)	$        0.2	$        (0.1)	$         0.2	$        (0.3)	$        1.0	$        (0.5)	$    0.0
	Beginning Cash	$       0.0	$       1.5	$         0.9	$         0.0	$         0.0	$       1.1	$    (0.3)	$       (0.1)	$       (0.2)	$       (0.1)	$    (0.4)	$         0.6	$    0.0
	Ending Cash	$       1.5	$       0.9	$         0.0	$         0.0	$         1.1	$    (0.3)	$    (0.1)	$       (0.2)	$       (0.1)	$       (0.4)	$       0.6	$         0.0	$    0.1
	Exit Revolver:	 	 	 	 	 	 	 	 	 	 	 	 	 
	Beginning Balance	$     38.4	$     39.4	$       39.4	$       39.4	$       39.4	$     40.9	$     40.9	$       41.9	$       41.9	$       42.4	$     42.4	$       43.9	$  43.9
	Draw (Repayments)	$       1.0	$          -	$          -	$          -	$         1.5	$          -	$       1.0	$          -	$         0.5	$          -	$       1.5	$          -	$      -
	Ending Balance	$     39.4	$     39.4	$       39.4	$       39.4	$       40.9	$     40.9	$     41.9	$       41.9	$       42.4	$       42.4	$     43.9	$       43.9	$  43.9
	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

PE Holdco Update/ September 25, 2012 

Exhibit 7.03(I)

    	 

    	 

    

Pacific Ethanol Holding Co, LLC

Monthly Flash Report to Members for August 2012

 

		Ø	Safety

	 	 	 	 	 	 
	 	2011	Q1	Q2	July/Aug	YTD 2012
	PEI - Madera
	OSHA Recordable	0	1	0	0	1
	OSHA LTA's	0	0	0	0	0
	OSHA Citations	0	0	0	0	0
	NOV's	0	0	0	0	0
	Fines	$    1,290	$         -	$         -	$         -	$         -
	Reportable Spills	0	0	0	0	0
	Compliance Letters	0	0	0	0	0
	PEI - Columbia
	OSHA Recordable	3	0	1	0	1
	OSHA LTA's	0	1	0	0	1
	OSHA Citations	0	0	0	4	4
	NOV's	0	0	0	0	0
	Fines	$        -	$        -	$        -	$   4,125	$   4,125
	Reportable Spills	0	0	0	0	0
	Compliance Letters	0	0	0	0	0
	PEI - Magic Valley
	OSHA Recordable	8	1	1	0	2
	OSHA LTA's	1	0	0	0	0
	OSHA Citations	13	0	0	0	0
	NOV's	1	0	0	0	0
	Fines	$  20,415	$        -	$        -	$        -	$        -
	Reportable Spills	1	0	0	0	0
	Compliance Letters	2	0	0	0	0
	PEI - Stockton
	OSHA Recordable	5	0	2	1	3
	OSHA LTA's	1	0	2	0	2
	OSHA Citations	7	0	0	0	0
	NOV's	11	4	1	2	7
	Fines	$  58,905	$        -	$ 12,314	$   1,395	$ 13,709
	Reportable Spills	4	0	1	0	1
	Compliance Letters	2	0	0	0	0
	 	 	 	 	 	 

 

 

PE Holdco Update/ September 25, 2012 

 

Exhibit 7.03(I)

 

    	 

    	 

    

 

 

Pacific Ethanol,
Inc.

Asset Management Agreement

Appendix D

 

 

 

Pacific Ethanol Columbia, LLC

Monthly Operations Report

 

August 2012

 

Contents

	Page	Title	Report Description
	 
	1	Actual vs. Budget	Budget Review - Actual vs. Budget
	4	Production	Ethanol and WDG Production and Delivery
	4	Corn	Corn Deliveries and Use
	4	Availability	Plant Availability
	5	Cash	Cash receipts and disbursements including balances
	6	Major Maintenance	Major Maintenance Activities
	6	Losses	Material Casualty Losses
	6	Disputes	Review of Disputes & Claims
	6	Permits	Permit and Compliance Activities
	7	Comparison	Comparison of figures for the current month vs. last month
	 	 	 

 

Prepared by:Lyndon Jones, Plant Manager

 

Reviewed by:Michael Kramer, Manager Representative

 

09/20/12

 

 

Exhibit 7.03(I)

 

    	 

    	 

    

 

	 	Pacific Ethanol Columbia, LLC

New
Summary Statement of Operations

Budget
to Actual Current Month and Quarter

For
the Period from August 1, 2012 to August 31, 2012

(Amounts
are in USD)

(Includes
G/L Budget Name: BUDGETQ312) 

 	September 19, 2012 5:41 PM

Page 1

ljones

 

 

 

 

	 	Current Period Actual	Current Period Budget	Current Period Variance	Quarter to Date Budget	Quarter to Date Actual	Quarter to Date Variance
	Sales	 	 	 	 	 	 
	Ethanol Sales	6,322,515	8,518,761	-2,196,246	13,032,826	16,967,067	-3,934,241
	WDG Sales	1,591,905	1,917,484	-325,579	3,003,809	3,872,312	-868,503
	Syrup Sales	468,693	481,537	-12,844	846,746	972,452	-125,706
	Grain Sales	5,590	 	5,590	6,258	 	6,258
	Freight Revenues	
        47,410
	
  	
        47,410
	
        93,807
	  	
        93,807

	Total Sales	8,436,114	10,917,782	-2,481,668	16,983,446	21,811,831	-4,828,385
	Cost of Goods Sold	 	 	 	 	 	 
	Ethanol	7,979,280	9,554,732	-1,575,452	15,673,164	19,242,313	-3,569,149
	WDG COGS	2,367	2,649	-282	3,995	5,298	-1,303
	Labor	189,943	200,691	-10,748	389,887	401,382	-11,495
	Freight	349,586	429,034	-79,448	721,394	857,285	-135,891
	Demurrage	96	 	96	289	 	289
	Supplies	13,857	28,800	-14,943	43,798	57,600	-13,802
	Repairs and Maint, Plant	68,152	59,500	8,652	170,609	221,500	-50,891
	Equipment Rent and Lease Expense	10,384	11,672	-1,288	17,723	23,344	-5,621
	Insurance, Property Tax and Other	95,875	120,233	-24,358	183,978	242,966	-58,988
	Depreciation	208,782	206,601	2,181	417,520	412,931	4,589
	Rail Incentives	-20,000	-29,436	9,436	-38,982	-58,872	19,890
	Inventory Adjustments	-220,541	 	-220,541	96,105	 	96,105
	Intercompany	
        161,480
	
        229,422
	
        -67,942
	
        341,019
	
        458,477
	
        -117,458

	Total Cost of Goods Sold	
        8,839,263
	
        10,813,898
	
        -1,974,635
	
        18,020,497
	
        21,864,224
	
        -3,843,727

	Gross Profit (Loss)	-403,150	103,884	-507,034	-1,037,051	-52,393	-984,658
	Operating Expenses	 	 	 	 	 	 
	Hiring and Training	 	500	-500	 	1,000	-1,000
	Taxes, Permits and Fees	-75	 	-75	5,034	 	5,034
	Professional Fees	13,666	6,500	7,166	16,747	13,000	3,747
	Travel and Auto Expenses	6,511	3,500	3,011	12,517	7,000	5,517
	Office and Supplies	3,110	 	3,110	4,296	 	4,296
	Trade Member and Promotion	 	 	 	425	 	425
	Network, Telephone and Computer	330	500	-170	1,723	1,000	723
	Depreciation and Amortization	1,596	1,140	456	3,191	2,280	911
	Donations and Contributions	 	1,000	-1,000	 	2,000	-2,000
	Intercompany	
        75,000
	
        84,761
	
        -9,761
	
        150,000
	
        169,522
	
        -19,522

	Total operating expenses	100,138	97,901	2,237	193,934	195,802	-1,868
	Net operating income (loss)	-503,288	5,983	-509,271	-1,230,985	-248,195	-982,790
	Other income (expense):	 	 	 	 	 	 
	Bank Fees	
        -787
	
  	
        -787
	
        -1,574
	
  	
        -1,574

	Total other income (expense)	
        -787
	
  	
        -787
	
        -1,574
	
  	
        -1,574

	Income (loss) before Holdco	-504,075	5,983	-510,058	-1,232,559	-248,195	-984,364
	Income (loss) attributed to Holdco	 	 	 	 	 	 
	Net Income (Loss)	
        -504,075
	
        5,983
	
        -510,058
	
        -1,232,559
	
        -248,195
	
        -984,364

	 	 	 	 	 	 	 
	ADJUSTED EBITDA CALCULATION	 	 	 	 	 
	Net
    Income (Loss)	-504,075
	5,983
	-510,058
	-1,232,559
	-248,195
	-984,364

	Interest Income	 	 	 	 	 	 
	Interest Expense	 	 	 	 	 	 
	Interest Derivatives Gain (Loss)	 	 	 	 	 	 
	Income Tax Expense	 	 	 	 	 	 
	Convertible Debt and Warrant Adjustments	 	 	 	 	 	 
	Depreciation and Amortization COGS	208,782	206,601	2,181	417,520	412,931	4,589
	Depreciation and Amortization SG&A	1,596	1,140	456	3,191	2,280	911
	Amortization of Deferred Finance Fees	 	 	 	 	 	 
	EBITDA	
        -293,697
	
        213,724
	
        -507,421
	
        -811,847
	
        167,016
	
        -978,863

 

Exhibit 7.03(I)

 

    	 

    	 

    

 

Pacific Ethanol Columbia, LLC

Monthly Operations Report

 

August 2012

 

Actual vs. Budget 

Key Variance Explanations

 

	Area	Variance ($US)	Explanation
	Sales	 	 
	Ethanol Sales	($ 2,196,246)	Volume less than budget by 30.0% and selling price greater than budget by 6.0%.
	WDG Sales	($ 325,579)	Volume less than budget by 32.6% and selling price greater than budget by 23.1%.
	Syrup Sales	($ 12,844)	Volume less than budget by 17.9% and selling price less than budget by 18.6%.
	Freight Revenues	$ 47,410 	Additional revenue for shipping further than contract distance
	Cost of Goods Sold	 	 
	Ethanol	($ 1,575,452)	Corn cost 28.9% higher per unit than budget, but we used 23.9% less corn due to being curtailed. Lower than budgeted cost/unit for chemicals, enzymes and barge inspections (only 2 or the 4 barges were actually used). More truck traffic
	Labor	($ 10,478)	Utilization of employee for other facilities
	Freight	($ 79,448)	Only shipped 2 of the 4 scheduled barges in August and fewer truck shipments
	Supplies	($ 14,943)	Lower utilization of plant and boiler chemicals due to curtailment
	Insurance, Property Tax & Other	($ 24,358)	Lower than budgeted property tax
	Inventory Adjustment	($ 220,541)	Negative LCM adjustment on In Transit, Finished Goods & WIP
	Intercompany	($ 67,942)	Lower than budgeted fees for ethanol, co-products and corn marketing at lower production rates

 

Exhibit 7.03(I)

 

    	 

    	 

    

 

Pacific Ethanol Columbia, LLC

Monthly Operations Report

 

August 2012

Production

 

Denatured Ethanol Production:2,456,933 Gallons

 

The PDX system was not operated in August.

 

Corn

 

Corn Inventory Status and Delivery Schedule:

 

Deliveries (Train & Truck)43,079,020 lbs

 

Corn Used48,900,176 lbs

 

Whole Corn Shipped5,589,840 lbs

 

** note – consignment corn agreement

 

Availability

 

	Total Hours	Economic Curtailment (Hrs)	Economic Curtailment %	Equivalent Downtime Hrs	No Corn Supply (Hrs)	No Corn Supply %	Forced Downtime (Hrs)	Force Downtime %	Scheduled Maintenance Downtime (Hrs)	Scheduled Maintenance %	Forced Reduced Rate (Hrs)	Avg Rate Reduction %	Reduced Rate Equivalent Downtime Hrs	Reduced Rate Corn (Hrs)	Reduced Rate Corn %	Total Downtime + Reduced Rate %
	744	740.58	30.0%	222.2	0	0.0%	3.42	0.5%	0	0.0%	0	0%	0.0	0	0.0%	30.3%

 

 

Exhibit 7.03(I)

 

    	 

    	 

    

 

Pacific Ethanol Columbia, LLC

Monthly Operations Report

 

August 2012

 

Cash

 

		 	Pacific Ethanol Columbia, LLC	 
		 	Current Month	 
		 	Actual	 
	Operating and Revenue Accounts	 	 	 
	Beginning Cash Balance	 	 	 
	Cash Inflows	 	 	 	 
	Revenue - Ethanol (Kinergy)	 	$	6,938,355	 
	Revenue - WDG (PAP) and others	 	 	1,965,795	 
	Total Cash Inflows	 	 	8,904,150	 
		 	 	 	 
	Disbursements	 	 	 	 
	Operating Disbursements	 	 	 	 
	Corn	 	$	(8,180,012	)
	Natural Gas	 	 	(149,680	)
	Electricity	 	 	(116,754	)
	Insurance	 	 	–	 
	Property Tax and other Taxes	 	 	–	 
	Lease Payments	 	 	–	 
	Ethanol freight	 	 	(195,104	)
	Co-product freight	 	 	(252,358	)
	Grain procurement and handling w/ PAP	 	 	–	 
	Plant Supplies & Maintenance	 	 	(434,759	)
	Other PEHC costs	 	 	–	 
	 	 	 	(9,328,666	)
	Total Operating Disbursements	 	 	 	 
	Asset Management Agreement	 	 	 	 
	Direct Reimbursement	 	 	 	 
	Payroll & Benefits - Plants & Plant Operations	 	 	(281,221	)
	Other Direct Expenses	 	 	–	 
	Asset Management Fee	 	 	(75,000	)
	Total Asset Management Agreement	 	 	(356,221	)
		 	 	 	 
	Interest & Fees-	 	 	–	 
	Total Disbursements	 	$	(9,684,887	)
	Net Cash Flow	 	$	(780,737	)

 

Exhibit 7.03(I)

 

    	 

    	 

    

 

Pacific Ethanol Columbia, LLC

Monthly Operations Report

 

August 2012

Major Maintenance

 

No major maintenance was performed this month.

 

Losses

 

No material casualty losses occurred this month.

 

Disputes

 

No disputes were identified this month.

 

Permits

 

Our 5 year renewal was approved by Oregon DEQ for the Air Permit.

 

 

Exhibit 7.03(I)

    	 

    	 

    

 

	 	Pacific Ethanol Columbia, LLC

New
Summary Statement of Operations

Current
Month vs Prior Month

For
the Period from August 1, 2012 to August 31, 2012
 	September 19, 2012 5:43 PM

Page 1

ljones

 

 

	 	CURRENT MONTH	PRIOR MONTH
	Sales	 	 
	Ethanol Sales	6,322,515	6,710,311
	WDG Sales	1,591,905	1,411,904
	Syrup Sales	468,693	378,054
	Grain Sales	5,590	668
	Freight Revenues	
        47,410
	
        46,396

	Total Sales	8,436,114	8,547,333
	Cost of Goods Sold	 	 
	Ethanol	7,979,280	7,693,884
	WDG COGS	2,367	1,627
	Labor	189,943	199,944
	Freight	349,586	371,807
	Demurrage	96	193
	Supplies	13,857	29,941
	Repairs and Maint, Plant	68,152	102,456
	Equipment Rent and Lease Expense	10,384	7,338
	Insurance, Property Tax and Other	95,875	88,103
	Depreciation	208,782	208,738
	Rail Incentives	-20,000	-18,982
	Inventory Adjustments	-220,541	316,646
	Intercompany	
        161,480
	
        179,539

	Total Cost of Goods Sold	
        8,839,263
	
        9,181,234

	Gross Profit (Loss)	-403,150	-633,901
	Operating Expenses	 	 
	Taxes, Permits and Fees	-75	5,109
	Professional Fees	13,666	3,081
	Travel and Auto Expenses	6,511	6,006
	Office and Supplies	3,110	1,187
	Trade Member and Promotion	 	425
	Network, Telephone and Computer	330	1,393
	Depreciation and Amortization	1,596	1,596
	Intercompany	
        75,000
	
        75,000

	Total operating expenses	100,138	93,796
	Net operating income (loss)	-503,288	-727,697
	Other income (expense):	 	 
	Bank Fees	
        -787
	
        -787

	Total other income (expense)	
        -787
	
        -787

 

Exhibit 7.03(I)

    	 

    	 

    

 

	 	Pacific Ethanol Columbia, LLC

New
Summary Statement of Operations

Current
Month vs Prior Month

For
the Period from August 1, 2012 to August 31, 2012
 	September 19, 2012 5:43 PM

Page 2

ljones

 

		 	 	CURRENT MONTH	 	 	 	PRIOR MONTH	 
	 	 	 	 	 	 	 	 	 
	Income (loss) before Holdco	 	 	-504,075	 	 	 	-728,484	 
	Income (loss) attributed to Holdco	 	 	 	 	 	 	 	 
	Net Income (Loss)	 	 	-504,075	 	 	 	-728,484	 
	ADJUSTED EBITDA CALCULATION	 	 	 	 	 	 	 	 
	Net Income (Loss)	 	 	-504,075	 	 	 	-728,484	 
	Interest Income	 	 	 	 	 	 	 	 
	Interest Expense	 	 	 	 	 	 	 	 
	Interest Derivatives Gain (Loss)	 	 	 	 	 	 	 	 
	Income Tax Expense	 	 	 	 	 	 	 	 
	Convertible Debt and Warrant Adjustments	 	 	 	 	 	 	 	 
	Depreciation and Amortization COGS	 	 	208,782	 	 	 	208,738	 
	Depreciation and Amortization SG&A	 	 	1,596	 	 	 	1,596	 
	Amortization of Deferred Finance Fees	 	 	 	 	 	 	 	 
	EBITDA	 	 	-293,697	 	 	 	-518,151	 

 

Exhibit 7.03(I)

 

    	 

    	 

    

 

 

Pacific Ethanol,
Inc.

Asset Management Agreement

Appendix D

 

 

 

 

Pacific Ethanol Magic Valley, LLC

Monthly Operations Report

August 2012

 

Contents

 

	Page	Title	Report Description
	 
	1	Actual vs. Budget	Budget Review - Actual vs. Budget
	4	Production	Ethanol and WDG Production and Delivery
	4	Corn	Corn Deliveries and Use
	4	Availability	Plant Availability
	5	Cash	Cash receipts and disbursements including balances
	6	Major Maintenance	Major Maintenance Activities
	6	Losses	Material Casualty Losses
	6	Disputes	Review of Disputes & Claims
	6	Permits	Permit and Compliance Activities
	7	Comparison	Comparison of figures for the current month vs. last month

 

 

Prepared by:Ken Wilson, Plant Manager

 

Reviewed by:Mike Kandris/Bryon McGregor, Manager Representative

 

9/15/12

 

Exhibit 7.03(I)

 

    	 

    	 

    

 

	 	
        Pacific Ethanol Magic Valley, LLC

        New Summary Statement of Operations

        Budget to Actual Current Month and Quarter

        For the Period from August 1, 2012 to August
        31, 2012

        (Amounts are in USD)

        (Includes G/L Budget Name: BUDGETQ312)
	
        September 14, 2012  7:45 AM

        Page 1

        kwilson

 

 

 

	 	Current Period Actual 	Current Period Budget	Current Period Variance	Quarter to Date Budget	Quarter to Date Actual	Quarter to Date

 Variance	 
	Sales	 	 	 	 	 	 	 
	Ethanol Sales	11,910,237	13,211,498	-1,301,261	24,724,866	26,740,920	-2,016,054	 
	WDG Sales	3,324,247	2,828,951	495,296	6,068,984	5,819,313	249,671	 
	Syrup Sales	938,214	675,097	263,117	1,822,132	1,390,426	431,706	 
	Grain Sales	
        2,214
	  	
        2,214
	
        2,534
	  	
        2,534
	 
	Total Sales	16,174,912	16,715,546	-540,634	32,618,516	33,950,659	-1,332,143	 
	Cost of Goods Sold	 	 	 	 	 	 	 
	Ethanol	15,238,685	14,849,292	389,393	30,308,578	30,402,540	-93,962	 
	Labor	176,550	203,705	-27,155	362,501	407,410	-44,909	 
	Freight	292,543	428,428	-135,885	562,323	868,634	-306,311	 
	Demurrage	4,905	3,322	1,583	7,595	6,735	860	 
	Supplies	57,472	68,088	-10,616	121,215	136,812	-15,597	 
	Repairs and Maint, Plant	99,363	75,500	23,863	158,308	171,000	-12,692	 
	Equipment Rent and Lease Expense	22,192	20,719	1,473	47,259	41,438	5,821	 
	Rail Car Rental	 	 	 	796	 	796	 
	Insurance, Property Tax and Other	113,032	115,158	-2,126	232,141	230,316	1,825	 
	Depreciation	257,025	256,582	443	514,050	513,412	638	 
	Rail Incentives	-42,993	-46,167	3,174	-84,378	-93,926	9,548	 
	Inventory Adjustments	110,792	 	110,792	110,792	 	110,792	 
	Intercompany	
        315,610
	
        359,818
	
        -44,208
	
        634,168
	
        732,044
	
        -97,876
	 
	Total Cost of Goods Sold	
        16,645,178
	
        16,334,445
	
        310,733
	
        32,975,348
	
        33,416,415
	
        -441,067
	 
	Gross Profit (Loss)	-470,265	381,101	-851,366	-356,832	534,244	-891,076	 
	Operating Expenses	 	 	 	 	 	 	 
	Hiring and Training	 	500	-500	 	1,000	-1,000	 
	Taxes, Permits and Fees	2,500	 	2,500	2,500	 	2,500	 
	Professional Fees	3,254	11,714	-8,460	48,798	23,643	25,155	 
	Travel and Auto Expenses	151	3,500	-3,349	1,585	7,000	-5,415	 
	Office and Supplies	1,268	 	1,268	2,799	 	2,799	 
	Trade Member and Promotion	64	1,000	-936	118	2,000	-1,882	 
	Network, Telephone and Computer	74	500	-426	205	1,000	-795	 
	Depreciation and Amortization	370	370	0	741	740	1	 
	Donations and Contributions	 	1,000	-1,000	500	2,000	-1,500	 
	Intercompany	
        75,000
	
        84,761
	
        -9,761
	
        150,000
	
        169,522
	
        -19,522
	 
	Total operating expenses	82,681	103,345	-20,664	207,245	206,905	340	 
	Net
    operating income (loss)	-552,947	277,756	-830,703	-564,078	327,339	-891,417	 
	Other income (expense):	 	 	 	 	 	 	 
	Bank Fees	-796	 	-796	-1,593	 	-1,593	 
	Other Income (Expense)	
        415
	  	
        415
	
        835
	
  	
        835
	 
	Total
    other income (expense)	-381
	  	-381
	-757
	  	-757
	 
	Income
    (loss) before Holdco	-553,328	277,756	-831,084	-564,835	327,339	-892,174	 
	Income (loss) attributed to Holdco	 	 	 	 	 	 	 
	Net
    Income (Loss)	
        -553,328
	
        277,756
	
        -831,084
	
        -564,835
	
        327,339
	
        -892,174
	 
	ADJUSTED EBITDA CALCULATION	 	 	 	 	 	 	 
	Net Income (Loss)	-553,328	277,756	-831,084	-564,835	327,339	-892,174	 
	Interest Income	 	 	 	 	 	 	 
	Interest Expense	 	 	 	 	 	 	 
	Interest Derivatives Gain (Loss)	 	 	 	 	 	 	 
	Income Tax Expense	 	 	 	 	 	 	 
	Convertible Debt and Warrant Adjustments	 	 	 	 	 	 	 
	Depreciation and Amortization COGS	257,025	256,582	443	514,050	513,412	638	 
	Depreciation and Amortization SG&A	370	370	0	741	740	1	 
	Amortization of Deferred Finance Fees	
 

	
 

	
 

	
 

	
 

	
 

	 
	EBITDA	
        -295,933
	
        534,708
	
        -830,641
	
        -50,045
	
        841,491
	
        -891,536
	 
	 	 	 	 	 	 	 	 	 

 

Exhibit 7.03(I)

    	 

    	 

    

 

Pacific Ethanol Magic Valley, LLC

Monthly Operations Report

 

August 2012

 

Actual vs. Budget 

 

Key Variance Explanations

 

	Area	Variance ($US)	Explanation
	Sales	 	 
	Ethanol Sales	-1,301,261	
        Gallons sold were 15.5% below budget

        Sales price was 6.5% above budget.

	WDG Sales	495,296	
        Tons sold were 14.8% below budget.

        Sales price was 17.0% above budget.

	Syrup Sales	263,117	
        Tons sold were 3.76% below budget

        Sales price was 37.5% above budget

	Cost of Goods Sold	 	 
	Ethanol	389,393	Gallons of ethanol sold were 15.5% below budget but actual corn cost per bushel was 25.1% above budget
	Labor	-27,155	Permanent job openings were not filled in August.
	Freight	-135,885	Sales were lower than budget resulting in less freight expense. Currently, there is no rail freight expense against the budget as all ethanol is trucked.
	Supplies	-10,616	Timing of expenses. Caustic chemical costs will be higher in September.
	Repairs and Maintenance	23,863	Timing of expenses. Materials and equipment were purchased in August in preparation for the September maintenance shut down.
	Inventory Adjustments	110,792	Lower of cost or market adjustment due to pricing. There is no budget line item for these adjustments.
	Intercompany	-44,208	Ethanol sales and corn consumption were less than budget resulting in less expense.

 

Exhibit 7.03(I)

 

    	 

    	 

    

 

Pacific Ethanol Magic Valley, LLC

Monthly Operations Report

 

August 2012

 

Production

 

Denatured Ethanol Production: 4,340,712 gallons

 

Corn Deliveries and Use

 

Corn used for Ethanol Production: 96,305,888 pounds / 1,719,748
bushels

 

Availability

 

Plant Equivalent Availability: 92.9% (7.1% downtime). Unscheduled
down time due to issues associated with Beer Column fouling accounted for 1.9% of the total, a tube that failed in the Beer Reboiler
accounted for 1.5% of the total, scheduled maintenance accounted for 3.2% of the total and economic curtailments (due to market
conditions) accounted for .5% of the total.

 

	 	Total Hours	Economic Curtailment (Hrs)	Economic Curtailment %	Equivalent Downtime Hrs	No Corn Supply (Hrs)	No Corn Supply %	Forced Downtime (Hrs)	Forced Downtime %	Scheduled Maintenance Downtime (Hrs)	Scheduled Maintenance %	Forced Reduced Rate (Hrs)	Avg Rate Reduction%	Reduced Rate Equivalent Downtime Hrs	Reduced Rate Corn (Hrs)	Reduced Rate Corn %	Total Downtime + Reduced Rate %
	Aug-12	744	24	15.0%	3.6	0	0.0%	25.4	3.4%	24	3.2%	0	0%	0.0	0	0.0%	7.1%

 

 

Exhibit 7.03(I)

 

    	 

    	 

    

 

Pacific Ethanol Magic Valley, LLC

Monthly Operations Report

 

August 2012

 

Cash

	 	 	Current Month

Actual	 
	Operating and Revenue Accounts	 	 	 
	 	 	 	 
	Beginning Cash Balance	 	 	 
	 	 	 	 
	Cash Inflows	 	 	 	 
	Revenue - Ethanol (Ki nergy)	 	$	13,128,678	 
	Revenue - WDG (PAP) and others	 	 	4,418,051	 
	Total Cash Inflows	 	$	17,546,729	 
	 	 	 	 	 
	Disbursements	 	 	 	 
	 	 	 	 	 
	Operating Disbursements	 	 	 	 
	Corn	 	$	(17,078,285	)
	Natural Gas	 	 	(291,131	)
	Electricity	 	 	(128,410	)
	Insurance	 	 	–	 
	Property Tax and other Taxes	 	 	–	 
	Lease Payments	 	 	–	 
	Ethanol freight	 	 	(274,512	)
	Co-product freight	 	 	–	 
	Grain procurement and handling w/ PAP	 	 	–	 
	Plant Supplies & Maintenance	 	 	(869,174	)
	Other PEHC costs	 	 	–	 
	Total Operating Disbursements	 	 	(18,641,513	)
	 	 	 	 	 
	Asset Management Agreement	 	 	 	 
	Direct Reimbursement	 	 	 	 
	Payroll & Benefits - Plants & Plant Operations	 	 	(252,444	)
	Other Direct Expenses	 	 	–	 
	Asset Management Fee	 	 	(75,000	)
	Total Asset Management Agreement	 	 	(327,444	)
	 	 	 	 	 
	Interest & Fees	 	 	–	 
	 	 	 	 	 
	Total Disbursements	 	$	(18,968,957	)
	 	 	 	 	 
	Net Cash Flow	 	$	(1,422,228	)

 

Exhibit 7.03(I)

    	 

    	 

    

 

Pacific Ethanol Magic Valley, LLC

Monthly Operations Report

 

August 2012

 

Major Maintenance

 

There were no major maintenance activities during the month
of August.

 

Losses

 

No material casualty losses occurred this month.

 

Disputes

 

No disputes were identified this month.

 

Permits/Environmental issue

 

There were two excess emission reports filed with the Idaho
State Department of Environmental Quality (DEQ). One of those reports was the monthly excess formaldehyde emission report. This
will no longer be required once the DEQ reviews and approves the source testing results.

 

The second excess emission report resulted from the failure
of a poppet cylinder valve on the RTO. This was a 57-minute event.

 

A new ‘Permit to Construct’ air permit was issued
by the DEQ and source testing was conducted on August 13th, 2012 to test compliance with the permit requirements. The results
of the testing have been sent to the DEQ for review. The final step is for the DEQ to convert the ‘Permit to Construct’
into an operating air permit for the facility.

 

This new permit allows the facility to run at a rate of 63,000,000
undenatured gallons per year. The old permit limited production to 60,000,000 undenatured gallons per year.

 

Exhibit 7.03(I)

    	 

    	 

    

 

	 	
        Pacific Ethanol Magic Valley, LLC

        New Summary Statement of Operations

        Current Month vs Prior Month

        For the Period from August 1, 2012 to August
        31, 2012

        Amounts are in USD

        (Includes G/L Budget Name: BUDGETQ312)
	
        September 14, 2012 7:44 AM

        Page 1

        kwilson

 

 

 

 

	 	CURRENT MONTH	PRIOR MONTH
	Sales	 	 
	Ethanol Sales	11,910,237	12,814,629
	WDG Sales	3,324,247	2,744,737
	Syrup Sales	938,214	883,917
	Grain Sales	
        2,214
	
        321

	Total Sales	16,174,912	16,443,603
	Cost of Goods Sold	 	 
	Ethanol	15,238,685	15,069,893
	Labor	176,550	185,951
	Freight	292,543	269,780
	Demurrage	4,905	2,690
	Supplies	57,472	63,743
	Repairs and Maint, Plant	99,363	58,944
	Equipment Rent and Lease Expense	22,192	25,067
	Rail Car Rental	 	796
	Insurance, Property Tax and Other	113,032	119,109
	Depreciation	257,025	257,025
	Rail Incentives	-42,993	-41,385
	Inventory Adjustments	110,792	 
	Intercompany	
        315,610
	
        318,558

	Total Cost of Goods Sold	
        16,645,178
	
        16,330,171

	Gross Profit (Loss)	-470,265	113,433
	Operating Expenses	 	 
	Taxes, Permits and Fees	2,500	 
	Professional Fees	3,254	45,544
	Travel and Auto Expenses	151	1,434
	Office and Supplies	1,268	1,531
	Trade Member and Promotion	64	54
	Network, Telephone and Computer	74	131
	Depreciation and Amortization	370	370
	Donations and Contributions	 	500
	Intercompany	
        75,000
	
        75,000

	Total operating expenses	82,681	124,564
	Net operating income (loss)	-552,947	-11,131
	Other income (expense):	 	 
	Bank Fees	-796	-796
	Other Income (Expense)	
        415
	
        420

	Total other income (expense)	-381	-376
	 	 	 
	Income (loss) before Holdco	-553,328	-11,507
	Income (loss) attributed to Holdco	 	 
	Net Income (Loss)	
        -553,328
	
        -11,507

	ADJUSTED EBITDA CALCULATION	 	 
	Net Income (Loss)	-553,328	-11,507
	Interest Income	 	 
	Interest Expense	 	 
	Interest Derivatives Gain (Loss)	 	 
	Income Tax Expense	 	 
	Convertible Debt and Warrant Adjustments	 	 
	Depreciation and Amortization COGS	257,025	257,025
	Depreciation and Amortization SG&A	370	370
	Amortization of Deferred Finance Fees	 	 
		
 

	
 

	EBITDA	
        -295,933
	
        245,888

 

Exhibit 7.03(I)

 

    	 

    	 

    

Pacific Ethanol,
Inc.

Asset Management Agreement

Appendix D

 

 

 

 

Pacific Ethanol Stockton LLC

Monthly Operations Report

August 2012

Contents

	Page	Title	Report Description
	 
	1	Actual vs. Budget	Budget Review - Actual vs. Budget
	4	Production	Ethanol and WDG Production and Delivery
	4	Corn	Corn Deliveries and Use
	4	Availability	Plant Availability
	5	Cash	Cash receipts and disbursements including balances
	6	Major Maintenance	Major Maintenance Activities
	6	Losses	Material Casualty Losses
	6	Disputes	Review of Disputes & Claims
	6	Permits	Permit and Compliance Activities
	8	Comparison	Comparison of figures for the current month vs. last month

 

Prepared by:Royce Todd, Plant Manager

 

Reviewed by:Mike Kandris/Bryon McGregor, Manager Representative

 

9/17/12

 

Exhibit 7.03(I)

 

    	 

    	 

    

 

	 	
        Pacific Ethanol Stockton, LLC

        New Summary Statement of Operations

        Budget to Actual Current Month and Quarter

        For the Period from August 1, 2012 to August
        31, 2012

        (Amounts are in USD)

        (Includes G/L Budget Name: BUDGETQ312)
	
        September 17, 2012 9:43 PM

        Page 1

        rtodd

         

 

 

	 	Current Period Actual	Current Period Budget	Current Period Variance	Quarter to Date Annual	Quarter to Date Budget	Quarter to Date Variance
	Sales	 	 	 	 	 	 
	Ethanol Sales	12,419,331	13,083,865	-664,534	24,072,968	26,104,006	-2,031,038
	WDG Sales	3,907,561	2,852,650	1,054,911	6,541,644	5,767,090	774,554
	Syrup Sales	
        458,443
	
        631,987
	
        -173,544
	
        835,450
	
        1,278,513
	
        -443,063

	Total Sales	16,785,335	16,568,502	216,833	31,450,062	33,149,609	-1,699,547
	Cost of Goods Sold	 	 	 	 	 	 
	Ethanol	16,339,944	14,743,354	1,596,590	29,918,161	29,737,191	180,970
	WDG COGS	439	5,407	-4,968	976	10,814	-9,838
	Labor	209,276	227,331	-18,055	423,704	454,662	-30,958
	Freight	133,461	248,073	-114,612	270,438	495,783	-225,345
	Demurrage	2,121	2,272	-151	3,503	4,541	-1,039
	Supplies	22,135	52,500	-30,365	55,609	105,000	-49,391
	Repairs and Maint, Plant	71,302	79,037	-7,735	99,688	158,074	-58,386
	Equipment Rent and Lease
    Expense	67,273	78,684	-11,411	134,041	157,341	-23,300
	Insurance, Property Tax and Other	122,062	133,763	-11,701	245,305	273,776	-28,471
	Depreciation	280,338	281,900	-1,562	560,646	563,703	-3,057
	Rail Incentives	-25,779	-45,055	19,276	-61,371	-90,110	28,739
	Inventory Adjustments	3,704	 	3,704	90,427	 	90,427
	Intercompany	
        311,047
	
        351,157
	
        -40,110
	
        592,319
	
        702,134
	
        -109,815

	Total Cost of Goods Sold	
        17,537,325
	
        16,158,423
	
        1,378,902
	
        32,333,446
	
        32,572,909
	
        -239,463

	Gross Profit (Loss)	-751,990	410,079	-1,162,069	-883,384	576,700	-1,460,084
	Operating Expenses	 	 	 	 	 	 
	Hiring and Training	 	500	-500	 	1,000	-1,000
	Taxes, Permits and Fees	-4,886	 	-4,886	-879	 	-879
	Professional Fees	5,580	6,500	-920	5,580	13,000	-7,420
	Travel and Auto Expenses	2,437	3,500	-1,063	7,090	7,000	90
	Office and Supplies	570	 	570	1,073	 	1,073
	Trade Member and Promotion	369	 	369	443	 	443
	Network, Telephone and Computer	273	500	-227	656	1,000	-344
	Depreciation and Amortization	1,122	959	163	2,245	1,918	327
	Donations and Contributions	 	1,000	-1,000	 	2,000	-2,000
	Intercompany	
        75,000
	
        84,761
	
        -9,761
	
        150,000
	
        169,522
	
        -19,522

	Total operating expenses	80,465	97,720	-17,255	166,207	195,440	-29,233
	Net operating income (loss)	-832,455	312,359	-1,144,814	-1,049,591	381,260	-1,430,851
	Other income (expense):	 	 	 	 	 	 
	Bank Fees	-894
	  	-894
	-1,787
	  	-1,787

	Total other income (expense)	
        -894
	
  	
        -894
	
        -1,787
	
  	
        -1,787

	Income (loss) before Holdco	-833,348	312,359	-1,145,707	-1,051,378	381,260	-1,432,638
	Income (loss) attributed to Holdco	 	 	 	 	 	 
	Net Income (Loss)	-833,348
	312,359
	-1,145,707
	-1,051,378
	381,260
	-1,432,638

	 	 	 	 	 	 	 
	ADJUSTED EBITDA CALCULATION	 	 	 	 	 
	Net Income (Loss)	-833,348	312,359	-1,145,707	-1,051,378	381,260	-1,432,638
	Interest Income	 	 	 	 	 	 
	Interest Expense	 	 	 	 	 	 
	Interest Derivatives Gain (Loss)	 	 	 	 	 	 
	Income Tax Expense	 	 	 	 	 	 
	Convertible Debt and Warrant Adjustments	 	 	 	 	 	 
	Depreciation and Amortization COGS	280,338	281,900	-1,562	560,646	563,703	-3,057
	Depreciation and Amortization SG&A	1,122	959	163	2,245	1,918	327
	Amortization of Deferred Finance Fees	
  	
  	
  	
  	
  	
  
	EBITDA	
        -551,888
	
        595,218
	
        -1,147,106
	
        -488,488
	
        946,881
	
        -1,435,369

 

Exhibit 7.03(I)

 

    	 

    	 

    

Pacific Ethanol Stockton LLC

Monthly Operations Report

 

August 2012

 

Actual vs. Budget 

 

Key Variance Explanations

 

	Area	Variance ($US)	Explanation
	Sales	 	 
	Ethanol Sales	-664,534	Total gallons sold were 10.9% lower than budget and sales pricing was 6.5% higher than budget.
	WDG Sales	1,054,911	Total tons sold were 3.2% lower than budget and pricing was 41.5% higher than budget.
	Syrup Sales	-173,544	Total tons sold were 36.4% lower than budget and sales pricing was 15.7% higher than budget. Discounts taken due to reduced dry matter were $6,888.
	Cost of Goods Sold	 	 
	Ethanol	1,596,590	*Corn/Milo tons used were lower than budget by 15.2% and pricing was higher than budget by 23.1% for a combined increase in cost above budget on corn/milo of $582.6K. Energy costs were above budget by $168k ($80k electricity true-up due to summer peak pricing + $22k Natural gas true-up). Denaturant was under budget by $89k. Chemicals and additives were below budget by $48k (Energy, Fermasure, ammonia, sulfuric acid, yeast, phosphoric acid & enzymes are continued targets for reduction.) City water was above budget by $2k and water disposal was above budget by $9k. There was also a WIP revaluation impact of $85k. This cumulative cost includes an inventory adjustment of $842K for overhead related costs, which nets against COGS to report actual inventory sold for the month.
	Labor	-18,055	Employees out on workers comp
	Freight	-114,612	Reduced freight costs relative to sales
	Supplies	-30,365	Timing vs. actual.
	Repairs and Maintenance	-7,735	Reduced down time and maintenance activity
	Equipment Rent and Lease Expense	-11,411	Reduced fees to Port of Stockton relative to reduced sales.
	Insurance, Property Tax & Other	-11,701	Insurance premiums lower than budget.
	Rail Incentives	19,276	Reduced corn usage relative to production rate
	Intercompany	-40,110	Marketing fees relative to sales
	Operating Expenses	 	 
	Taxes, Permits and Fees	-4,886	Timing vs. actual.
	Intercompany	-9,761	Lower AMA related fees than budgeted.

 

Exhibit 7.03(I)

    	 

    	 

    

 

Pacific Ethanol Stockton LLC

Monthly Operations Report

 

August 2012

 

Production

 

Denatured Ethanol Production:4,172,689 Gallons

 

Production was below budget by 16.44% or 821,206 gallons

 

Corn Deliveries and Use

 

Corn/Milo used for Ethanol Production: 85,547,340 lbs / 1,527,631
bushels

 

Corn/milo received to consignment inventory was 73,008,390 lbs
/ 1,303,721 bushels

 

Availability

 

Plant Equivalent Availability 94.4% up time at approximately
80.4% of rated capacity.

 

	
         

         
	Total Hours	Economic Curtailment (Hrs)	Economic Curtailment %	Equivalent Downtime Hrs	No Corn Supply (Hrs)	No Corn Supply %	Forced Downtime (Hrs)	Force Downtime %	Scheduled Maintenance Downtime (Hrs)	Scheduled Maintenance %	Forced Reduced Rate (Hrs)	Avg Rate Reduction %	Reduced Rate Equivalent Downtime Hrs	Reduced Rate Corn (Hrs)	Reduced Rate Corn %	Total Downtime + Reduced Rate %
	Aug-12	744	744	14.0%	104.2	41.42	5.6%	0	0.0%	0	0.0%	0	0%	0.0	0	0.0%	19.6%

 

 

Exhibit 7.03(I)

 

    	 

    	 

    

 

Pacific Ethanol Stockton LLC

Monthly Operations Report

 

August 2012

 

Cash

 

	 	 	Pacific Ethanol Stockton, LLC	 
	 	 	Current Month	 
	 		Actual	 
	 	 	 	 	 
	Operating and Revenue Accounts	 	 	 	 
	Beginning Cash Balance	 	 	 	 
	Cash Inflows	 	 	 	 
	Revenue - Ethanol (Kinergy)	 	$	14,831,011	 
	Revenue - WDG (PAP) and others	 	 	4,182,498	 
	Total Cash Inflows	 	$	19,013,509	 
	Disbursements	 	 	 	 
	Operating Disbursements	 	 	 	 
	Corn	 	$	(15,229,026	)
	Natural Gas	 	 	(255,608	)
	Electricity	 	 	(491,967	)
	Insurance	 	 	–	 
	Property Tax and other Taxes	 	 	(789,748	)
	Lease Payments	 	 	–	 
	Ethanol freight	 	 	(46,957	)
	Co-product freight	 	 	–	 
	Grain procurement and handling w/ PAP	 	 	–	 
	Plant Supplies & Maintenance	 	 	(850,676	)
	Other PEHC costs	 	 	–	 
	Total Operating Disbursements	 	 	(17,663,982	)
	 	 	 	 	 
	Asset Management Agreement	 	 	 	 
	Direct Reimbursement	 	 	 	 
	Payroll & Benefits - Plants & Plant Operations	 	 	(319,775	)
	Other Direct Expenses	 	 	–	 
	Asset Management Fee	 	 	(75,000	)
	Total Asset Management Agreement	 	 	(394,775	)
	Interest & Fees-	 	 	–	 
	Total Disbursements	 	$	(18,058,757	)
	 	 	 	 	 
	Net Cash Flow	 	$	954,753	 

 

Exhibit 7.03(I)

 

    	 

    	 

    

 

Pacific Ethanol Stockton LLC

Monthly Operations Report

 

August 2012

Major Maintenance

 

Centrifuge repairs and conveyor engineering

 

Losses

 

No material casualty losses occurred this month.

 

Disputes

 

PES Property Tax Status 

 

The San Joaquin County Assessor has adjusted the plant value
for 2011/12 to $65.3M from $84.0M resulting in a decreased value of $19.0M. We should receive an estimated $224K property tax refund
by September 24, 2012 due to the decrease in value. If we do not receive the refund by then, we will follow up with the Auditor's
Office. The 2012/13 tax assessment is valued at $65.4M, assessment fees were paid by the due date of August 31, 2012.

 

Permits/Regulatory

 

EPA: 

 

		1.	On 8/24/2012, syrup sales data measured in pounds and gallons for 2010 and 2011 were submitted to the EPA for TSCA reporting
purposes.

		2.	On 8/27/2012, Kevin Wenger with Mascoma confirmed that Lallemond/Mascoma had fully completed a Microbial Commercial Activity
Notice (MCAN) so that filing of Tier I & II exemptions with EPA are no longer needed.

 

CAL-OSHA: 

 

		1.	The Commodities Operator who was injured on 5/14/2012 did not return to work after working 4 hours on 6/20/2012. Lost time
as of his last day of employment with PES (8/24/2012) for this injury was 103 days.

		2.	A Commodities Operator had surgery performed on 7/2/2012 and returned to work with medical restrictions on 8/20/2012.

		3.	A mechanic injured his right index finger on 8/8/2012 while replacing sprayball 2A. A workers compensation claim was filed
with Zurich Insurance. The mechanic's injury required only first aid. The accident investigation identified the pinch point created
during re-installation between the sprayball flange and the fermenter as a root cause.

		4.	On 8/25/2012 at approximately 8:10 PM a Production Operator got first degree burns on his left arm and the left side of his
face resulting from a fire when he moved a bucket in an area where spilled Fermasure had dried. The Production Operators burns
were treated with first aid, and no further medical care was needed.

Exhibit 7.03(I)

    	 

    	 

    
 

Air District activities:

 

		1.	On 8/8/2012, a fine assessment of $1,860.00 was received from the Air District for the NOV issued for operation of the portable
generator to power the chiller during source testing in June. On 8/15/2012, Cheryl Davis negotiated a reduction in the NOV fine
for operation of a portable generator during source testing of the scrubbers in June from $1,860.00 to $1,395.00.

		2.	The June 13th, 2012 source testing report was received from Avogadro on 8/10/2012 affirming emissions compliance for the scrubbers
and RTO.

		3.	SCS Engineers conducted a greenhouse gas (GHG) emissions reporting audit on 8/13/2012. A written GHG Monitoring Plan was developed
as recommended.

		4.	NOV 5009468 from the Air District was received 8/22/2012 for the Variance N-12-09S report covering June 6 to June 8th shutdown
of scrubbers and RTO being submitted after the 15 day due date. The response for SJVAPCD NOV 5009468 for late submission of the
follow-up report for Variance N-12-09S was submitted to the Air District on 8/29/2012.

		5.	The RTO fell below the minimum temperature requirement on 7/31/12 due to a failed poppet valve bearing. A follow up report
has been submitted to the air district with anticipation that break down relief will be granted for this incident. Breakdown relief
has been granted for this event with written notice received 8/22/12.

		6.	During the week of 8/27/2012, greenhouse gas emissions data along with total natural gas and electrical usage information was
submitted to SCS who submitted an audit report to the California Air Resources Board before the 9/1/2012 deadline.

 

Port of Stockton Fire Department:

 

		1.	The Port of Stockton Fire Marshal conducted a follow-up inspection related to the 2011 annual facility inspection conducted
in December. Progress continues toward resolve of the action items listed. The agency is persistent with respect to the installation
of a second UVIR monitor in the ethanol load-out area as discussions continue in efforts to validate the need for this measure.
The fire pump housing structure modifications are complete under a capital improvement project.

		2.	Fire control system false alarms were responsible for the City of Stockton Fire Department being dispatched to the facility
on 8/15 and 8/16/2012. Both false alarms occurred within hours after Simplex Grinnell had worked on the system. Simplex Grinnell
was contacted to correct the problem.

 

Exhibit 7.03(I)

    	 

    	 

    

 

	 	
        Pacific Ethanol Stockton, LLC

        New Summary Statement of Operations

        Current Month vs. Prior Month

        For the Period from August 1, 2012 to August
        31, 2012

        (Amounts are in USD)

        (Includes G/L Budget Name: BUDGETQ312)
	
        September 17, 2012 9:47 PM

        Page 1

        rtodd

         

 

	 	CURRENT MONTH	PRIOR MONTH
	Sales	 	 
	Ethanol Sales	12,419,331	11,653,637
	WDG Sales	3,907,561	2,634,082
	Syrup Sales	
        458,443
	
        377,007

	Total Sales	16,785,335	14,664,727
	Cost of Goods Sold	 	 
	Ethanol	16,339,944	13,578,217
	WDG COGS	439	537
	Labor	209,276	214,428
	Freight	133,461	136,977
	Demurrage	2,121	1,381
	Supplies	22,135	33,475
	Repairs and Maint, Plant	71,302	28,386
	Equipment Rent and Lease Expense	67,273	66,767
	Insurance, Property Tax and Other	122,062	123,242
	Depreciation	280,338	280,307
	Rail Incentives	-25,779	-35,592
	Inventory Adjustments	3,704	86,723
	Intercompany	
        311,047
	
        281,272

	Total Cost of Goods Sold	
        17,537,325
	
        14,796,121

	Gross Profit (Loss)	-751,990	-131,394
	Operating Expenses	 	 
	Taxes, Permits and Fees	-4,886	4,006
	Professional Fees	5,580	 
	Travel and Auto Expenses	2,437	4,653
	Office and Supplies	570	503
	Trade Member and Promotion	369	74
	Network, Telephone and Computer	273	383
	Depreciation and Amortization	1,122	1,122
	Intercompany	
        75,000
	
        75,000

	Total operating expenses	80,465	85,742
	Net operating income (loss)	-832,455	-217,136
	Other income (expense):	 	 
	Bank Fees	
        -894
	
        -894

	Total other income (expense)	
        -894
	
        -894

	 	 	

	 	 	 
	Income (loss) before Holdco	-833,348	-218,030
	Income (loss) attributed to Holdco	 	 
	Net Income (Loss)	
        -833,348
	
        -218,030

	ADJUSTED EBITDA CALCULATION	 	 
	Net Income (Loss)	-833,348	-218,030
	Interest Income	 	 
	Interest Expense	 	 
	Interest Derivatives Gain (Loss)	 	 
	Income Tax Expense	 	 
	Convertible Debt and Warrant Adjustments	 	 
	Depreciation and Amortization COGS	280,338	280,307
	Depreciation and Amortization SG&A	1,122	1,122
	Amortization of Deferred Finance Fees	
         
	
         

	EBITDA	
        -551,888
	
        63,400

 

Exhibit 7.03(I)

    	 

    	 

    

 

Pacific Ethanol,
Inc.

Asset Management Agreement

Appendix C

 

 

 

Pacific Ethanol Madera LLC

Monthly Cold Shutdown Report

August 2012

Contents

	Page	Title	Report Description
	 
	1	Actual vs. Budget	Budget Review - Actual vs. Budget
	4	Cash	Cash receipts and disbursements including balances
	5	Availability	Plant Availability
	5	Major Maintenance	Major Maintenance Activities
	5	Losses	Material Casualty Losses
	5	Disputes	Review of Disputes & Claims
	5	Permits	Permit and Compliance Activities
	6	Comparison	Comparison of figures for the current month vs. last month

 

Prepared by:Royce Todd, Plant Manager

 

Reviewed by:Mike Kandris/Bryon McGregor, Manager Representative

 

09/17/12

 

Exhibit 7.03(I)

    	 

    	 

    

 

	 	
        Pacific Ethanol Madera LLC

        New Summary Statement of Operations

        Budget to Actual Current Month and Quarter

        For the Period from August 1, 2012 to August
        31, 2012

        (Amounts are in USD)

        (Includes G/L Budge Name:  BUDGETQ312)
	
        September 17, 2012 9:52 PM

        Page 1

 

 

 

 

	 	Current Period Actual	Current Period Budget	Current Period Variance	Quarter to Date Actual	Quarter to Date Budget	Quarter to Date Variance
	Sales	 	 	 	 	 	 
	Total Sales	 	 	 	 	 	 
	Cost of Goods Sold	 	 	 	 	 	 
	Ethanol	8,718	10,665	-1,947	17,485	21,330	-3,845
	Labor	39,820	55,394	-15,574	85,410	110,788	-25,378
	Supplies	1,645	20,788	-19,143	3,664	41,575	-37,911
	Repairs and Maint, Plant	8,257	9,100	-844	11,344	18,200	-6,856
	Equipment Rent and Lease Expense	1,525	2,601	-1,076	9,784	5,202	4,582
	Insurance, Property Tax and Other	-673,264	86,260	-759,524	-621,380	172,520	-793,900
	Depreciation	
        177,799
	
        179,783
	
        -1,984
	
        355,597
	
        359,566
	
        -3,969

	Total Cost of Goods Sold	
        -435,502
	
        364,591
	
        -800,093
	
        -138,096
	
        729,181
	
        -867,277

	Gross Profit (Loss)	435,502	-364,591	800,093	138,096	-729,181	867,277
	Operating Expenses	 	 	 	 	 	 
	Taxes, Permits and Fees	49	 	49	1,156	 	1,156
	Professional Fees	4,495	2,250	2,245	4,445	4,500	-55
	Travel and Auto Expenses	974	667	307	974	1,334	-360
	Office and Supplies	571	 	571	775	 	775
	Trade Member and Promotion	15	 	15	15	 	15
	Network, Telephone and Computer	315	 	315	2,540	 	2,540
	Depreciation and Amortization	188	353	-165	375	706	-331
	Intercompany	
        40,000
	
        49,761
	
        -9,761
	
        80,000
	
        99,522
	
        -19,522

	Total operating expenses	46,606	53,031	-6,425	90,280	106,062	-15,782
	Net operating income (loss)	388,896	-417,622	806,518	47,816	-835,243	883,059
	Other income (expense):	 	 	 	 	 	 
	Bank Fees	
        -757
	
 

	
        -757
	
        -1,513
	
 

	
        -1,513

	Total other income (expense)	
        -757
	
 

	
        -757
	
        -1,513
	
 

	
        -1,513

	Income (loss) before Holdco	388,139	-417,622	805,761	46,303	-835,243	881,546
	Income (loss) attributed to Holdco	 	 	 	 	 	 
	Net Income (Loss)	
        388,139
	
        -417,622
	
        805,761
	
        46,303
	
        -835,243
	
        881,546

	 	 	 	 	 	 	 
	ADJUSTED EBITDA CALCULATION	 	 	 	 	 
	Net Income (Loss)	388,139	-417,622	805,761	46,303	-835,243	881,546
	Interest Income	 	 	 	 	 	 
	Interest Expense	 	 	 	 	 	 
	Interest Derivatives Gain (Loss)	 	 	 	 	 	 
	Income Tax Expense	 	 	 	 	 	 
	Convertible Debt and Warrant Adjustments	 	 	 	 	 	 
	Depreciation and Amortization COGS	177,799	179,783	-1,984	355,597	359,566	-3,969
	Depreciation and Amortization SG&A	188	353	-165	375	706	-331
	Amortization of Deferred Finance Fees	
 

	
 

	
 

	
 

	
 

	
 

	EBITDA	
        566,126
	
        -237,486
	
        803,612
	
        402,275
	
        -474,971
	
        877,246

 

Exhibit 7.03(I)

 

    	 

    	 

    

Pacific Ethanol Madera LLC

Monthly Cold Shutdown Report

 

August 2012

 

Actual vs. Budget 

 

Key Variance Explanations

 

	Area	Variance ($US)	Explanation
	Cost of Goods Sold	 	 
	Labor	-15,547	Reduction in head count
	Supplies	-19,143	Timing vs actual
	Insurance, Property Tax & Other	-759,524	Accrued property tax refunds for tax years 2009/2010 $380k + 2010/2011 $345k and applied monthly tax accrual for current year at the lower rate ($26k/month) due to lower asset value.
	 	 	 
	 	 	 
	Operating Expenses	 	 
	Intercompany	-9,761	Lower AMA fees than budgeted.
	 	 	 
	 	 	 
	 	 	 

 

 

Exhibit 7.03(I)

 

    	 

    	 

    

 

Pacific Ethanol Madera LLC

Monthly Shutdown Report

 

August 2012

 

Cash

		 	Pacific Ethanol Madera, LLC	 
		 	Current Month	 
		 	Actual	 
	Operating and Revenue Accounts	 	 	 
	Beginning Cash Balance	 	 	 
	Cash Inflows	 	 	 	 
	Revenue - Ethanol (Kinergy)	 	$	–	 
	Revenue - WDG (PAP) and others	 	 	–	 
	 	 	$	–	 
	Total Cash Inflows	 	 	 	 
	Disbursements	 	 	 	 
	Operating Disbursements	 	 	 	 
	Corn	 	$	  –	 
	Natural Gas	 	 	–	 
	Electricity	 	 	(8,293	)
	Insurance	 	 	–	 
	Property Tax and other Taxes	 	 	–	 
	Lease Payments	 	 	–	 
	Ethanol freight	 	 	–	 
	Co-product freight	 	 	–	 
	Grain procurement and handling w/ PAP	 	 	–	 
	Plant Supplies & Maintenance	 	 	(17,063	)
	Other PEHC costs	 	 	–	 
	Total Operating Disbursements	 	 	(25,355	)
		 	 	 	 
	Asset Management Agreement	 	 	 	 
	Direct Reimbursement	 	 	 	 
	Payroll & Benefits - Plants & Plant Operations	 	 	(65,379	)
	Other Direct Expenses	 	 	–	 
	Asset Management Fee	 	 	(40,000	)
	 	 	 	(105,379	)
	Total
    Asset Management Agreement	 	 	 	 
	Interest & Fees-	 	 	–	 
	Total Disbursements	 	$	(130,734	)
	Net Cash Flow	 	$	(130,734	)

 

Exhibit 7.03(I)

 

    	 

    	 

    

 

Pacific Ethanol Madera LLC

Monthly Cold Shutdown Report

 

August 2012

 

Availability

 

The plant is currently in cold shutdown mode and available for
re-start.

 

Major Maintenance

 

No major maintenance this month.

 

Losses

 

No material casualty losses occurred this month.

 

Disputes

 

A time waiver is in place, which has delayed the hearing
up to 120 days to determine a reassessment of the plant for the 2009/10 and 2010/11 years. Because of agenda backlog, the
board has not been able to finalize a plant value. A hearing is scheduled for September 6. Currently, the appeal for 2009/10
has an assessed value of $66.9M, we were requesting $28.8M, and the Assessor would like us to agree to a stipulated value of
$31.8M. Currently, the appeal for 2010/11 has an assessed value of $58.7M and the assessor has informally given a valuation
of $30.3M. The County has informally, through Fred, asked if we will settle 2009 and delay 2010 property tax refunds. We
asked Fred if he can go back to the Assessor and counter their proposal with the following:

 

a)Offset net tax payments against 2010 refund.

 

b)At a minimum, agree on 2010 refund this year
and receive in early 2013.

 

We also received confirmation of a Madera property tax audit
for years 2004 through current. If we settle 2009 and 2010 property tax refunds, those years will not be auditable. The 2011/12
tax year value was assessed at $28.9M and is acceptable to PEI. As such no appeal was filed.

 

Permits

 

EPA: 

 

On 8/27/2012, Kevin Wenger with Mascoma confirmed that Lallemond/Mascoma
had fully completed a Microbial Commercial Activity Notice (MCAN) so that filing of Tier I & II exemptions with EPA are no
longer needed.

 

Exhibit 7.03(I)

 

    	 

    	 

    

 

	 	
        Pacific Ethanol Madera LLC

        New Summary Statement of Operations

        Current Month vs. Prior Month

        For the Period from August 1, 2012 to August
        31, 2012

        (Amounts are in USD)

        (Includes G/L Budge Name:  BUDGET Q312)
	
        September 17, 2012 9:52 PM

        Page 1

        rtodd

         

 

 

		 	CURRENT MONTH	 	 	PRIOR

    MONTH	 
	Sales	 	 	 	 	 	 
	Total Sales	 	 	 	 	 	 	 	 
	Cost of Goods Sold	 	 	 	 	 	 	 	 
	Ethanol	 	 	8,718	 	 	 	8,767	 
	Labor	 	 	39,820	 	 	 	45,590	 
	Supplies	 	 	1,645	 	 	 	2,019	 
	Repairs and Maint, Plant	 	 	8,257	 	 	 	3,087	 
	Equipment Rent and Lease Expense	 	 	1,525	 	 	 	8,260	 
	Insurance, Property Tax and Other	 	 	-673,264	 	 	 	51,884	 
	Depreciation	 	 	177,799	 	 	 	177,799	 
	Total Cost of Goods Sold	 	 	-435,502	 	 	 	297,406	 
	Gross Profit (Loss)	 	 	435,502	 	 	 	-297,406	 
	Operating Expenses	 	 	 	 	 	 	 	 
	Taxes, Permits and Fees	 	 	49	 	 	 	1,107	 
	Professional Fees	 	 	4,495	 	 	 	-50	 
	Travel and Auto Expenses	 	 	974	 	 	 	 	 
	Office and Supplies	 	 	571	 	 	 	204	 
	Trade Member and Promotion	 	 	15	 	 	 	 	 
	Network, Telephone and Computer	 	 	315	 	 	 	2,225	 
	Depreciation and Amortization	 	 	188	 	 	 	188	 
	Intercompany	 	 	40,000	 	 	 	40,000	 
	Total operating expenses	 	 	46,606	 	 	 	43,674	 
	Net operating income (loss)	 	 	388,896	 	 	 	-341,080	 
	Other income (expense):	 	 	 	 	 	 	 	 
	Bank Fees	 	 	-757	 	 	 	-757	 
	Total other income (expense)	 	 	-757	 	 	 	-757	 
	 	 	 	 	 	 	 	–	 
	Income (loss) before Holdco	 	 	388,139	 	 	 	-341,837	 
	Income (loss) attributed to Holdco	 	 	 	 	 	 	 	 
	Net Income (Loss)	 	 	388,139	 	 	 	-341,837	 
	ADJUSTED EBITDA CALCULATION	 	 	 	 	 	 	 	 
	Net Income (Loss)	 	 	388,139	 	 	 	-341,837	 
	Interest Income	 	 	 	 	 	 	 	 
	Interest Expense	 	 	 	 	 	 	 	 
	Interest Derivatives Gain (Loss)	 	 	 	 	 	 	 	 
	Income Tax Expense	 	 	 	 	 	 	 	 
	Convertible Debt and Warrant Adjustments	 	 	 	 	 	 	 	 
	Depreciation and Amortization COGS	 	 	177,799	 	 	 	177,799	 
	Depreciation and Amortization SG&A	 	 	188	 	 	 	188	 
	Amortization of Deferred Finance Fees	 	 	 	 	 	 	 	 
	EBITDA	 	 	566,126	 	 	 	-163,850	 

 

Exhibit 7.03(I)

 

    	 

    	 

    

 

COMPLIANCE CERTIFICATE

 

To: Pacific Ethanol Holding Co. LLC

 

Ladies and Gentlemen:

 

I hereby certify to you, pursuant to Section
6.1 of the Agreement (as defined below), as follows:

 

I am an Authorized Officer of Manager and
hereby submit the attached consolidating financial statements as of and for the month ended August 31, 2012 ("Statements")
in accordance with Section 6.1 of the Asset Management Agreement by and between Pacific Ethanol, Inc. and Pacific Ethanol Holding
Co. LLC, Pacific Ethanol Madera LLC, Pacific Ethanol Columbia, LLC, Pacific Ethanol Stockton LLC and Pacific Ethanol Magic Valley,
LLC, dated June 29, 2010 ("Agreement"). These Statements are prepared in accordance with GAAP (subject to the absence
of footnote disclosures and to normal year-end adjustments) and are complete and accurate.

 

The foregoing certifications are made and
delivered this day of September 25, 2012.

 

Very truly yours,

 

PACIFIC ETHANOL, INC.

 

 

By: /S/ MICHAEL KRAMER 

Name:Michael Kramer

Title: Treasurer

 

Exhibit 7.03(I)

 

    	 

    	 

    

CONFIDENTIAL

 

Pacific Ethanol Holding Co. LLC and Subsidiaries

Month and year to Date August 31, 2012

(unaudited)

 

		 	As of August 31, 2012	 
		 	 	PEHC	 	 	 	PECOL	 	 	 	PEMV	 	 	 	PEM	 	 	 	PES	 	 	ELIM	 	 	Consolidated	 
	CONSOLIDATING BALANCE SHEETS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Current Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cash and Investments	 	$	25,243	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	25,243	 
	Accounts Receivable	 	 	–	 	 	 	1,008,486	 	 	 	3,297,110	 	 	 	726,226	 	 	 	1,897,111	 	 	 	 	 	 	 	6,928,933	 
	Intercompany Receivables	 	 	15,129,433	 	 	 	1,291,557	 	 	 	6,509,967	 	 	 	2,806	 	 	 	107,471	 	 	 	(23,041,234	)	 	 	–	 
	Inventories	 	 	–	 	 	 	4,309,637	 	 	 	4,453,952	 	 	 	218,980	 	 	 	3,237,759	 	 	 	 	 	 	 	12,220,329	 
	Prepaid Expenses	 	 	159,059	 	 	 	5,444	 	 	 	6,161	 	 	 	5,314	 	 	 	673,449	 	 	 	 	 	 	 	849,427	 
	Other Current Assets	 	 	–	 	 	 	150,596	 	 	 	–	 	 	 	–	 	 	 	330,000	 	 	 	 	 	 	 	480,596	 
	Total Current Assets	 	 	15,313,735	 	 	 	6,765,720	 	 	 	14,267,190	 	 	 	953,326	 	 	 	6,245,790	 	 	 	(23,041,234	)	 	 	20,504,527	 
	Property and Equipment Net	 	 	–	 	 	 	30,622,194	 	 	 	44,093,136	 	 	 	28,499,102	 	 	 	45,689,860	 	 	 	 	 	 	 	148,904,292	 
	Other Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Investment in Subsidiaries	 	 	178,368,453	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(178,368,453	)	 	 	–	 
	Other Assets	 	 	1,392,858	 	 	 	–	 	 	 	1,000	 	 	 	–	 	 	 	10,000	 	 	 	–	 	 	 	1,403,858	 
	TOTAL ASSETS	 	$	195,075,046	 	 	$	37,387,914	 	 	$	58,361,326	 	 	$	29,452,428	 	 	$	51,945,650	 	 	$	(201,409,687	)	 	$	170,812,677	 
	LIABILITIES AND EQUITY	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Current Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts Payable and Accrued Expenses	 	$	233,876	 	 	$	864,260	 	 	$	1,460,434	 	 	$	108,508	 	 	$	1,183,210	 	 	$	–	 	 	$	3,850,287	 
	Intercompany Payables	 	 	7,723,408	 	 	 	67,260	 	 	 	111,694	 	 	 	4,655,247	 	 	 	10,483,625	 	 	 	(23,041,234	)	 	 	–	 
	Term Debt and Revolver - Current Portion	 	 	39,354,698	 	 	 	–	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	39,354,698	 
	Total Current Liabilities	 	 	47,311,982	 	 	 	931,519	 	 	 	1,572,129	 	 	 	4,763,755	 	 	 	11,666,834	 	 	 	(23,041,234	)	 	 	43,204,985	 
	Term Debt	 	 	20,360,793	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	 	 	 	 	20,360,793	 
	Other Long-term Liabilities	 	 	29,952,152	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	190,938	 	 	 	 	 	 	 	30,143,090	 
	TOTAL LIABILITIES	 	 	97,624,927	 	 	 	931,519	 	 	 	1,572,129	 	 	 	4,763,755	 	 	 	11,857,772	 	 	 	(23,041,234	)	 	 	93,708,868	 
	Total Equity	 	 	97,450,119	 	 	 	36,456,395	 	 	 	56,789,198	 	 	 	24,688,673	 	 	 	40,087,879	 	 	 	(178,368,453	)	 	 	77,103,810	 
	TOTAL LIABILITIES AND EQUITY	 	$	195,075,046	 	 	$	37,387,914	 	 	$	58,361,326	 	 	$	29,452,428	 	 	$	51,945,650	 	 	$	(201,409,687	)	 	$	170,812,677	 

 

 

Exhibit 7.03(I)

 

    	 

    	 

    

 

Pacific Ethanol Holding Co. LLC and Subsidiaries

Month and year to Date August 31, 2012

(audited)

 

		 	Month Ended August 31, 2012
		 	 	PEHC	 	 	 	PECOL	 	 	 	PEMV	 	 	 	PEM	 	 	 	PES	 	 	Consolidated	 
	CONSOLIDATING STATEMENTS OF OPERATIONS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Sales	 	$	–	 	 	$	8,436,114	 	 	$	16,174,912	 	 	$	–	 	 	$	16,785,335	 	 	$	41,396,361	 
	Total Cost of Goods Sold	 	 	85,428	 	 	 	8,839,263	 	 	 	16,645,178	 	 	 	(435,502	)	 	 	17,537,325	 	 	 	42,671,692	 
	Gross Profit (Loss)	 	 	(85,428	)	 	 	(403,150	)	 	 	(470,265	)	 	 	435,502	 	 	 	(751,990	)	 	 	(1,275,331	)
	Total operating expenses	 	 	123,483	 	 	 	100,138	 	 	 	82,681	 	 	 	46,606	 	 	 	80,465	 	 	 	433,374	 
	Net operating income (loss)	 	 	(208,911	)	 	 	(503,288	)	 	 	(552,947	)	 	 	388,896	 	 	 	(832,455	)	 	 	(1,708,704	)
	Total other expense	 	 	(1,111,955	)	 	 	(787	)	 	 	(381	)	 	 	(757	)	 	 	(894	)	 	 	(1,114,774	)
	Net Income (Loss)	 	$	(1,320,867	)	 	$	(504,075	)	 	$	(553,328	)	 	$	388,139	 	 	$	(833,348	)	 	$	(2,823,478	)
	ADJUSTED EBITDA CALCULATION	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income (Loss)	 	$	(1,320,867	)	 	$	(504,075	)	 	$	(553,328	)	 	$	388,139	 	 	$	(833,348	)	 	$	(2,823,478	)
	Interest Income	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Interest Expense	 	 	1,054,000	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	1,054,000	 
	Depreciation and Amortization COGS	 	 	–	 	 	 	208,782	 	 	 	257,025	 	 	 	177,799	 	 	 	280,338	 	 	 	923,944	 
	Depreciation and Amortization SG&A	 	 	–	 	 	 	1,596	 	 	 	370	 	 	 	188	 	 	 	1,122	 	 	 	3,276	 
	Amortization of Deferred Finance Fees	 	 	40,807	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	40,807	 
	Adjusted EBITDA	 	$	(226,060	)	 	$	(293,697	)	 	$	(295,933	)	 	$	566,126	 	 	$	(551,888	)	 	$	(801,452	)

 

 

		 	Year to Date August 31, 2012
		 	 	PEHC	 	 	 	PECOL	 	 	 	PEMV	 	 	 	PEM	 	 	 	PES	 	 	Consolidated	 
	CONSOLIDATING STATEMENTS OF OPERATIONS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Sales	 	$	–	 	 	$	69,243,856	 	 	$	117,141,966	 	 	$	–	 	 	$	113,189,264	 	 	$	299,575,085	 
	Total Cost of Goods Sold	 	 	110,307	 	 	 	75,171,844	 	 	 	121,035,937	 	 	 	1,553,395	 	 	 	119,903,556	 	 	 	317,775,038	 
	Gross Loss	 	 	(110,307	)	 	 	(5,927,988	)	 	 	(3,893,971	)	 	 	(1,553,395	)	 	 	(6,714,292	)	 	 	(18,199,953	)
	Total operating expenses	 	 	1,125,102	 	 	 	739,077	 	 	 	734,435	 	 	 	343,214	 	 	 	840,393	 	 	 	3,782,221	 
	Net operating loss	 	 	(1,235,408	)	 	 	(6,667,065	)	 	 	(4,628,407	)	 	 	(1,896,608	)	 	 	(7,554,685	)	 	 	(21,982,174	)
	Total other expense	 	 	(7,775,637	)	 	 	(20,684	)	 	 	(41,979	)	 	 	(6,850	)	 	 	(73,951	)	 	 	(7,919,101	)
	Net Loss	 	$	(9,011,046	)	 	$	(6,687,749	)	 	$	(4,670,386	)	 	$	(1,903,459	)	 	$	(7,628,636	)	 	$	(29,901,275	)
	ADJUSTED EBITDA CALCULATION	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Loss	 	$	(9,011,046	)	 	$	(6,687,749	)	 	$	(4,670,386	)	 	$	(1,903,459	)	 	$	(7,628,636	)	 	$	(29,901,275	)
	Interest Income	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Interest Expense	 	 	7,253,544	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	12	 	 	 	7,253,556	 
	Depreciation and Amortization COGS	 	 	–	 	 	 	1,668,705	 	 	 	2,047,346	 	 	 	1,423,529	 	 	 	2,237,336	 	 	 	7,376,916	 
	Depreciation and Amortization SG&A	 	 	200,000	 	 	 	12,765	 	 	 	2,963	 	 	 	1,501	 	 	 	8,326	 	 	 	225,555	 
	Amortization of Deferred Finance Fees	 	 	372,365	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	372,365	 
	Adjusted EBITDA	 	$	(1,185,137	)	 	$	(5,006,279	)	 	$	(2,620,015	)	 	$	(478,428	)	 	$	(5,382,962	)	 	$	(14,672,821	)

 

Exhibit 7.03(I)

    	 

    	 

    

CONFIDENTIAL

 

Pacific Ethanol Holding Co. LLC and Subsidiaries

Month and Year to Date August 31, 2012

(unaudited)

 

 

		 	Month Ended August 31, 2012	 
	CONSOLIDATING STATEMENTS OF CASH FLOW	 	PEHC	 	 	PECOL	 	 	PEMV	 	 	PEM	 	 	PES	 	 	CONSOL	 
	OPERATING ACTIVITIES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net income (loss)	 	$	(1,320,867	)	 	$	(504,075	)	 	$	(553,328	)	 	$	388,139	 	 	$	(833,348	)	 	$	(2,823,479	)
	Adjustments to reconcile net income (loss) to net cash	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	provided by (used in) operating activities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Depreciation and amortization	 	 	–	 	 	 	210,378	 	 	 	257,395	 	 	 	177,986	 	 	 	281,461	 	 	 	927,220	 
	Amortization of deferred financing costs	 	 	40,807	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	40,807	 
	Changes in operating assets and liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts receivable	 	 	–	 	 	 	1,616,101	 	 	 	672,756	 	 	 	(726,226	)	 	 	1,928,931	 	 	 	3,491,562	 
	Inventories	 	 	85,428	 	 	 	(1,615,943	)	 	 	(1,537,212	)	 	 	–	 	 	 	780,610	 	 	 	(2,287,117	)
	Prepaid expenses and other assets	 	 	(191,423	)	 	 	1,361	 	 	 	1,641	 	 	 	1,562	 	 	 	(666,458	)	 	 	(853,317	)
	Accounts payable and accrued expenses	 	 	569,653	 	 	 	(496,503	)	 	 	(219,213	)	 	 	18,859	 	 	 	(554,924	)	 	 	(682,128	)
	Intercompany receivables	 	 	783,605	 	 	 	788,681	 	 	 	1,452,014	 	 	 	–	 	 	 	152	 	 	 	3,024,452	 
	Intercompany payables	 	 	(2,240,696	)	 	 	–	 	 	 	(152	)	 	 	139,680	 	 	 	(923,284	)	 	 	(3,024,452	)
	Net cash provided by (used in) operating activities	 	$	(2,273,493	)	 	$	–	 	 	$	73,901	 	 	$	–	 	 	$	13,140	 	 	$	(2,186,452	)
	INVESTING ACTIVITIES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Purchase of property and equipment	 	$	–	 	 	$	–	 	 	$	(73,901	)	 	$	–	 	 	$	(13,140	)	 	$	(87,041	)
	Net cash used in investing activities	 	$	–	 	 	$	–	 	 	$	(73,901	)	 	$	–	 	 	$	(13,140	)	 	$	(87,041	)
	FINANCING ACTIVITIES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net proceeds on LOCs	 	$	2,000,000	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	2,000,000	 
	Net cash provided by financing activities	 	$	2,000,000	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	2,000,000	 
	DECREASE IN CASH EQUIVALENTS	 	$	(273,493	)	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	(273,493	)
	CASH EQUIVALENTS, BEGINNING	 	$	298,736	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	298,736	 
	CASH EQUIVALENTS, ENDING	 	$	25,243	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	25,243	 

 

Exhibit 7.03(I)

 

    	 

    	 

    

 

 

 

		 	Year to Date August 31, 2012	 
	CONSOLIDATING STATEMENTS OF CASH FLOW	 	PEHC	 	 	PECOL	 	 	PEMV	 	 	PEM	 	 	PES	 	 	CONSOL	 
	OPERATING ACTIVITIES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net loss	 	$	(9,011,046	)	 	$	(6,687,749	)	 	$	(4,670,386	)	 	$	(1,903,459	)	 	$	(7,628,636	)	 	$	(29,901,276	)
	Adjustments to reconcile net loss to net cash provided	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	by (used in) operating activities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Depreciation and amortization	 	 	200,000	 	 	 	1,681,470	 	 	 	2,050,309	 	 	 	1,425,030	 	 	 	2,245,662	 	 	 	7,602,471	 
	Amortization of deferred financing costs	 	 	372,365	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	372,365	 
	Bad debt expense	 	 	–	 	 	 	(880	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(880	)
	Gain on disposal of equipment	 	 	–	 	 	 	13,415	 	 	 	37,921	 	 	 	–	 	 	 	42,451	 	 	 	93,787	 
	Changes in operating assets and liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts receivable	 	 	13,125	 	 	 	1,706,660	 	 	 	598,516	 	 	 	(716,993	)	 	 	1,628,690	 	 	 	3,229,998	 
	Inventories	 	 	108,493	 	 	 	(1,437,064	)	 	 	(803,689	)	 	 	–	 	 	 	1,464,207	 	 	 	(668,053	)
	Prepaid expenses and other assets	 	 	(139,881	)	 	 	1,142,122	 	 	 	13,123	 	 	 	12,502	 	 	 	(155,874	)	 	 	871,992	 
	Accounts payable and accrued expenses	 	 	996,590	 	 	 	484,848	 	 	 	49,758	 	 	 	96,770	 	 	 	97,522	 	 	 	1,725,488	 
	Intercompany receivables	 	 	(3,821,891	)	 	 	3,184,127	 	 	 	3,064,972	 	 	 	(744	)	 	 	(26,259	)	 	 	2,400,205	 
	Intercompany payables	 	 	(6,284,592	)	 	 	15,590	 	 	 	44,455	 	 	 	1,101,893	 	 	 	2,722,449	 	 	 	(2,400,205	)
	Net cash provided by (used in) operating activities	 	$	(17,566,837	)	 	$	102,539	 	 	$	384,979	 	 	$	14,999	 	 	$	390,212	 	 	$	(16,674,108	)
	INVESTING ACTIVITIES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Purchase of property and equipment	 	$	–	 	 	$	(102,539	)	 	$	(384,979	)	 	$	(14,999	)	 	$	(390,212	)	 	$	(892,729	)
	Net cash used in investing activities	 	$	–	 	 	$	(102,539	)	 	$	(384,979	)	 	$	(14,999	)	 	$	(390,212	)	 	$	(892,729	)
	FINANCING ACTIVITIES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net proceeds on LOCs	 	$	15,522,572	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	15,522,572	 
	Net cash provided by financing activities	 	$	15,522,572	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	15,522,572	 
	DECREASE IN CASH EQUIVALENTS	 	$	(2,044,265	)	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	(2,044,265	)
	CASH EQUIVALENTS, BEGINNING	 	$	2,069,508	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	2,069,508	 
	CASH EQUIVALENTS, ENDING	 	$	25,243	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	–	 	 	$	25,243	 

 

 

 

Exhibit
7.03(I)

    	 

    	 

    
 

EXHIBIT 11.03

to Credit Agreement

[FORM OF]

LENDER ASSIGNMENT AGREEMENT

 

This LENDER ASSIGNMENT AGREEMENT (this “Agreement”),
dated as of [_________], is by and between [____________] (the “Assignor”) and [____________]
(the “Assignee”).

 

RECITALS

 

WHEREAS, the Assignor is party to the Credit
Agreement, dated as of October 29, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”) among Pacific Ethanol Holding Co. LLC, a Delaware limited liability company (“Pacific Holding”),
Pacific Ethanol Madera LLC, a Delaware limited liability company (“Madera”), Pacific Ethanol Columbia, LLC,
a Delaware limited liability company (“Boardman”), Pacific Ethanol Stockton LLC, a Delaware limited liability
company (“Stockton”), and Pacific Ethanol Magic Valley, LLC, a Delaware limited liability company (“Burley”
and, together with Pacific Holding, Madera, Boardman and Stockton, each a “Borrower”
and collectively the “Borrowers”), as borrowers, Pacific Holding, as Borrowers’ Agent, each of
the Lenders from time to time party thereto, Wells Fargo Bank, N.A., as Administrative Agent (in such capacity, the “Administrative
Agent”) and Collateral Agent, and Amarillo National Bank, as accounts bank;

 

WHEREAS, Assignor desires to assign certain
of its interests under the Credit Agreement to Assignee in accordance with Section 11.03(b) thereof;

 

WHEREAS, as provided under the Credit Agreement,
Assignor is a Lender and, as such, as of the date hereof has the outstanding Commitments and Loans (and of such Loans, has disbursed
Funded Loans) as set forth in Annex A hereto;

 

WHEREAS, Assignor proposes to sell, assign
and transfer to the Assignee, and the Assignee proposes to accept and assume from the Assignor, a [___] percent ([__]%)
interest in all of the rights and obligations of the Assignor under the Credit Agreement and the other Financing Documents (which
includes the outstanding Loans disbursed by and owing to, and the undisbursed Commitments of, Assignor), all on the terms and subject
to the conditions of this Agreement (such interest in such rights and obligations being hereinafter referred to as the “Assigned
Interest”); and

 

WHEREAS, after giving effect to the assignment
and assumption under this agreement, the respective Loans, Funded Loans and Commitments of Assignor and Assignee shall be in the
amounts set forth on Annex A.

 

NOW, THEREFORE, in consideration of the
foregoing and the mutual agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

 

Section
1. Definitions. All capitalized terms not otherwise defined herein
shall have the respective meanings set forth in the Credit Agreement.

 

Exhibit
11.03-1

 

    	 

    	 

    

 

 

Section
2. Assignment.

 

(a)
As of the effective date set forth on the signature page to this Agreement (the “Effective Date”), subject
to and in accordance with the Credit Agreement, the Assignor irrevocably sells, transfers, conveys and assigns, without recourse,
representation or warranty (except as expressly set forth herein), to Assignee, and the Assignee irrevocably purchases from the
Assignor, the Assigned Interest, which shall include (i) all of Assignor’s rights and obligations in its capacity as a Lender
with respect to the Assigned Interest under the Credit Agreement, each other Financing Document, and any other documents or instruments
delivered pursuant thereto or in connection therewith to the extent related to the Assigned Interest and (ii) to the extent
permitted to be assigned under applicable Law, all claims, suits, causes of action and any other right of the Assignor (in its
capacity as a Lender), to the extent related to the Assigned Interest, against any Person, whether known or unknown, arising under
or in connection with the Credit Agreement, each other Financing Document, and any other documents or instruments delivered pursuant
thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not
limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity (the foregoing
rights, obligations and interests, collectively, the “Assigned Rights”).

 

(b)
Upon acceptance and recording of the assignment and assumption made pursuant to this Agreement by the Administrative Agent,
from and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest and the
Assigned Rights (including all payments of principal, interest, fees and other amounts) to the Assignee. The Assignor and the
Assignee shall make all appropriate adjustments in payments by the Administrative Agent for periods prior to the Effective Date
or with respect to the making of this assignment directly between themselves. Each of the Assignor and the Assignee agrees that
if it receives any amount under the Credit Agreement or any other Financing Document that is for the account of the other, it
shall hold the same for the other to the extent of the other’s interest therein and shall pay promptly the same to the other.
1

 

Section
3. [Payment. As a condition to the Effective Date, Assignee shall pay to the Administrative Agent
in the lawful currency of the United States and in immediately available funds the processing and recordation fee of three thousand
five hundred Dollars ($3,500), without set-off, counterclaim or deduction of any kind.]

 

Section
4. Representations, Warranties and Undertakings.

 

(a)
The Assignor (i) represents and warrants that (A) it is the legal and beneficial owner of the Assigned Interest and such
Assigned Interest is free and clear of any Lien or adverse claim and (B) it has full power and authority, and has taken all action
necessary, to execute and deliver this Agreement and to consummate the transactions contemplated hereby; and (ii) makes no representation
or warranty and assumes no responsibility with respect to (A) any statements, warranties or representations made in or in
connection with the Credit Agreement or the other Financing Documents or the execution, legality, validity, enforceability or genuineness,
or sufficiency of value of the Credit Agreement, the other Financing Documents, or any other instrument or document furnished pursuant
thereto or in connection therewith or (B) the financial condition of any Borrower, any other Loan Party or any Project Party
or the performance or observance by any Borrower or any other Person of any of its obligations under the Credit Agreement, any
other Financing Document, or any other instrument or document furnished pursuant thereto or in connection therewith.

 

__________

1
Assignor and Assignee to agree to treatment of Capitalized Interest, if any.

 

Exhibit
11.03-2

 

    	 

    	 

    

(b)
The Assignee (i) represents and warrants that it (A) has full power and authority, and has taken all action necessary, to
execute and deliver this Agreement and to consummate the transactions contemplated hereby and to become a Lender under the Credit
Agreement and the other Financing Documents, and (B) meets all requirements of an Eligible Assignee, (ii) acknowledges and confirms
that it has received a copy of the Credit Agreement, each other Financing Document and such other documents and information as
it has deemed appropriate to make its own credit analysis and decision to enter into this Agreement and to purchase the Assigned
Interest and assume the Assigned Rights, on the basis of which it has made such analysis and decision independently and without
reliance on the Administrative Agent or any other Senior Secured Party, (iii) agrees that it will, independently and without reliance
upon the Administrative Agent, any Borrower, or any other Senior Secured Party and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement
or any other Financing Document, (iv) appoints and authorizes each Agent to take such action as agent on its behalf and to exercise
such powers under the Credit Agreement or the other Financing Documents as are delegated to such Agent by the terms thereof and
(v) will perform in accordance with their terms all of the obligations that by the terms of the Financing Documents are required
to be performed by it as a Lender. The Assignee further confirms and agrees that in becoming a Lender and in making its Loans under
the Credit Agreement, such actions have and will be made without recourse to, or representation or warranty by, any Senior Secured
Party.

 

(c)
The Assignee further agrees to furnish the tax form required by Section 4.07(e) (if so required) of the Credit Agreement
no later than the Effective Date.

 

Section
5. Effectiveness.

 

(a)
The effectiveness of the sale, assignment and transfer hereunder is subject to (i) the due execution and delivery of this
Agreement by the Assignor and the Assignee, (ii) the receipt by the Assignor of the payment made as consideration for the sale,
assignment and transfer contemplated in Section 2 hereof, (iii) consent by the Administrative Agent to this Agreement and the assignment
contemplated hereby[, (iv) the receipt by the Administrative Agent of the processing and recordation fee provided for in
Section 3 hereof] and [(v)] the registration of such assignment by the Administrative Agent in the Register
in accordance with Section 11.03 of the Credit Agreement.

 

(b)
Simultaneously with the execution and delivery by the parties hereto of this Agreement to the Administrative Agent for its
recording in the Register, the Assignor shall deliver its Note (if any) to the Administrative Agent and may request that new Notes
be executed and delivered to [the Assignor and] the Assignee and reflecting [the respective amounts of the
reduced undisbursed Commitment and outstanding principal of Assignor and] the assigned and assumed outstanding principal
and undisbursed Commitment of the Assignee (plus, if the Assignee is already a Lender, the amount of its outstanding principal
and undisbursed Commitment immediately prior to the assignment effected hereby). Any such new Note shall carry the rights to unpaid
accrued interest that were carried by any applicable superseded Note(s) such that no loss of interest shall result therefrom. Any
applicable new Note executed and delivered in accordance with the foregoing shall have set forth thereon a legend substantially
in the following form:

 

 

 

Exhibit
11.03-3

 

     

     

    

 

“This Note is issued in replacement of [describe
replaced note] and, notwithstanding the date of this Note, this Note carries all of the rights to unpaid interest that were
carried by such replaced Note, such that no loss of interest shall result from any such replacement.”

 

If the Assignee is already a Lender, it shall
(promptly following its receipt of such new Note payable to it) return to the Borrower the prior Note, if any, held by it.

 

(c)
Except as otherwise provided in the Credit Agreement, effective as of the Effective Date:

 

(i)
the Assignee shall be deemed automatically to have become a party to, and the Assignee agrees that it will be bound by the
terms and conditions set forth in, the Credit Agreement, and shall have all the rights and obligations of a “Lender”
under the Credit Agreement and the other Financing Documents as if it were an original signatory thereto or an original Lender
thereunder with respect to the Assigned Interest and the Assigned Rights; and

 

(ii)
the Assignor shall relinquish its rights (but shall continue to be entitled to the benefits of Sections 11.07 (Costs
and Expenses) and 11.09 (Indemnification by the Borrowers) of the Credit Agreement) and be released from its obligations
under the Credit Agreement and the other Financing Documents to the extent specified herein.

 

Section
6. Governing Law. This Agreement shall be governed by, and construed
in accordance with, the laws of the State of New York, United States of America.

 

Section
7. Counterparts. This Agreement may be executed in any number of counterparts
and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an
original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of this
Agreement by telecopy or portable document format (“pdf”) shall be effective as delivery of a manually executed counterpart
of this Agreement.

 

Section
8. Further Assurances. The Assignor and the Assignee hereby agree
to execute and deliver such other instruments, and take such other action, as either party or the Administrative Agent may reasonably
request in connection with the transactions contemplated by this Agreement including, without limitation, the delivery of any
notices to the Borrowers or the Agents that may be required in connection with the assignment contemplated hereby.

 

Section
9. Binding Effect; Amendment. This Agreement shall be binding upon
and inure to the benefit of the parties and their respective successors and assigns, subject, however, to the provisions of the
Credit Agreement. No provision of this Agreement may be amended, waived or otherwise modified except by an instrument in writing
signed by each party hereto and by the Administrative Agent.

 

Exhibit
11.03-4

 

    	 

    	 

    

 

Section
10. Administrative Agent Enforcement. The Administrative Agent shall be entitled to rely upon and enforce this Agreement
against the Assignor and the Assignee in all respects.

 

[The
remainder of this page is intentionally blank. The next page is the signature page.]

 

 

 

 

 

 

 

Exhibit 11.03-5

    	 

    	 

    

IN WITNESS WHEREOF, the Assignor and the Assignee have caused
this Lender Assignment Agreement to be executed by their duly authorized officers.

 

The effective date for this Agreement is [the date this
Agreement is acknowledged and accepted by the Administrative Agent [and the Borrowers’ Agent 2]] [____________,
20[__] (the “Trade Date”)].

 

 

	 	[ASSIGNOR] 
	 	 
	 	By:      ____________________
	 	       Name:
	 	       Title: 
	 	 
	 	[ASSIGNEE]
	 	 
	 	By:     ____________________
	 	       Name:
	 	       Title: 

 

Accepted and Acknowledged

this ___ day of _______, 20___

 

WELLS FARGO BANK, N.A.,

   as Administrative Agent

 

By:     ____________________

           Name:

            Title:

 

[3Accepted and Acknowledged

this ___ day of _______, 20___

 

PACIFIC ETHANOL HOLDING CO. LLC,

  as Borrowers’ Agent

 

By:     ____________________

           Name:

           Title:]

 

 

__________

2 Only if required pursuant to definition of Eligible
Assignee.

3 Only if required pursuant to definition of Eligible
Assignee.

 

Exhibit 11.03-6

 

    	 

    	 

    

 

Annex A

to Lender Assignment Agreement

 

[Note: Include only those Loans that Assignor has
an interest in.] 4

 

	Loan5	Assignor’s

Undisbursed

Commitment

Pre-Assignment	Assignor’s

    Outstanding

    Loans

    Pre-

    Assignment6	Percentage

(of

Assignor’s

interests)

Assigned	Assignor’s

Undisbursed

Commitment

Post-

Assignment	Assignor’s

    Outstanding

    Loans

    Post-

    Assignment7	Assignee’s

Undisbursed

Commitment

Post-

Assignment*	Assignee’s

    Outstanding

    Loans

    Post-

    Assignment*8
	Loans 	$ 	$ 	%	$ 	$ 	$ 	$ 

 

 

 

 

 

 

 

 

 

* If
Assignee is already a Lender, this number should be calculated taking into account only the Commitments and Loans assumed by Assignee
pursuant to this Agreement.

 

__________

4 Funded Loans should be listed in parentheses.

5 Assignment to specify treatment of Capitalized
Interest, if any.

6 Funded Loans should be listed in parentheses.

7 Funded Loans should be listed in parentheses.

8 Funded Loans should be listed in parentheses.

 

 

Exhibit
11.03-4 

 

    	 

    	 

    
 

Exhibit 11.21

To

The CREDIT AGREEMENT
(the “Agreement”), dated as of October 29, 2012, by and among PACIFIC ETHANOL HOLDING CO. LLC, a Delaware limited liability
company (“Pacific Holding”), PACIFIC ETHANOL MADERA LLC, a Delaware limited liability company (“Madera”),
PACIFIC ETHANOL COLUMBIA, LLC, a Delaware limited liability company (“Boardman”), PACIFIC ETHANOL STOCKTON LLC, a Delaware
limited liability company (“Stockton”), and PACIFIC ETHANOL MAGIC VALLEY, LLC, a Delaware limited liability company
(“Burley” and, together with Pacific Holding, Madera, Boardman and Stockton, the “Borrowers”), Pacific
Holding, as Borrowers’ Agent (the “Borrowers’ Agent”), each of the Lenders from time to time party thereto,
WELLS FARGO BANK, N.A., as administrative agent for the Lenders (the “Bank”), WELLS FARGO BANK, N.A., as collateral
agent for the Senior Secured Parties, CREDIT SUISSE LOAN FUNDING LLC, as Syndication Agent and AMARILLO NATIONAL BANK, as accounts
bank. Capitalized terms used but not defined herein have the meanings given to such terms in the Agreement.

 

 

I hereby certify that
I am authorized to deliver this Exhibit 11.21 on behalf of the Borrowers and the Borrowers’ Agent (collectively, the “Organization”),
and hereby further certify that the names, titles, telephone numbers, email addresses and specimen signatures set forth below identify
the persons authorized to provide direction and initiate or confirm transactions, including funds transfer instructions, on behalf
of the Organization, and that the option checked in Part C of this Exhibit 11.21 is the security procedure selected by the Organization
for use in verifying that a funds transfer instruction received by the Bank is that of the Organization.

 

The Organization has
reviewed each of these security procedures and has determined that the option checked in Part C of this Exhibit 11.21 best meets
its requirements; given the size, type and frequency of the instructions it will issue to the Bank. By selecting the security procedure
specified in Part C of this Exhibit 11.21, the Organization acknowledges that it has elected to not use the other security procedures
described below and agrees to be bound by any funds transfer instruction, whether or not authorized, issued in its name and accepted
by the Bank in compliance with the particular security procedure chosen by the Organization.

 

NOTICE: The
security procedure selected by the Organization will not be used to detect errors in the funds transfer instructions given by the
Organization. If a funds transfer instruction describes the beneficiary of the payment inconsistently by name and account number,
payment may be made on the basis of the account number even if it identifies a person different from the named beneficiary. If
a funds transfer instruction describes a participating financial institution inconsistently by name and identification number,
the identification number may be relied upon as the proper identification of the financial institution. Therefore, it is important
that the Organization take such steps as it deems prudent to ensure that there are no such inconsistencies in the funds transfer
instructions it sends to the Bank.

 

Exhibit 11.21

 

    	 

    	 

    

Part
A

 

Name, Title, Telephone
Number, Email Address and Specimen Signature

for
person(s) designated to provide direction, including but not limited to funds transfer instructions, and
to otherwise act on behalf of the Organization

 

 

	Name	Title	Telephone Number	Email Address	Specimen Signature
	 	 	 	 	 
	Neil M. Koehler	President	916-403-2126	neilk@pacificethanol.net	/s/ Neil M. Koehler
	Bryon T. McGregor	CFO	916-403-2710	bncgregor@pacificethanol.net	/s/ Bryon T. McGregor
	 	 	 	 	 
	 	 	 	 	 
	_________________	________________	________________	_____________	       ________________

 

[list
more if desired]

 

 

Part
B

 

Name,
Title, Telephone Number and Email Address for

person(s)
designated to confirm funds transfer instructions

 

	Name	Title	Telephone Number	Email Address
	 	 	 	 
	Michael Kramer	Treasurer	916-403-2738	mkramer@pacificethanol.net
	Rebecca Lane	Staff Accountant-Finance	916-403-2725	rlane@pacificethanol.net
	 	 	 	 
	 	 	 	 
	___________________	____________________	________________	_________________

 

[list more if desired]

 

Exhibit
11.21

 

    	 

    	 

    

 

Part
C

 

Means
for delivery of instructions and/or confirmations 

 

The security procedure to be
used with respect to funds transfer instructions is checked below:

 

	[X]		Option 1. Confirmation by telephone call-back.
The Bank shall confirm funds transfer instructions by telephone call-back to a person at the telephone
number designated on Part B above. The person confirming the funds transfer instruction shall be a person other than the person
from whom the funds transfer instruction was received, unless only one person is designated in both Parts A and B of this Exhibit
11.21.

 

[X]CHECK
box, if applicable:

 

			If the Bank is unable to obtain confirmation by telephone call-back, the Bank may, at its discretion,
confirm by email, as described in Option 2.

 

	[_]		Option 2. Confirmation by email.
The Bank shall confirm funds transfer instructions by email to a person at the email address
specified for such person in Part B of this Schedule. The person confirming the funds transfer instruction shall be a person other
than the person from whom the funds transfer instruction was received, unless only one person is designated in both Parts A and
B of this Exhibit 11.21. The Organization understands the risks associated with communicating sensitive matters, including
time sensitive matters, by email. The Organization further acknowledges that instructions and data sent by email may be less confidential
or secure than instructions or data transmitted by other methods. The Bank shall not be liable for any loss of the confidentiality
of instructions and data prior to receipt by the Bank.

 

[_]CHECK
box, if applicable:

 

If the Bank is unable to obtain
confirmation by email, the Bank may, at its discretion, confirm by telephone call-back, as described in Option 1.

 

	[_]		Option 3. Delivery of funds transfer instructions
by password protected file transfer system only - no confirmation. The Bank offers the option to deliver funds transfer
instructions through a password protected file transfer system. If the Organization wishes to use the password protected file
transfer system, further instructions will be provided by the Bank. If the Organization chooses this Option 3, it agrees that
no further confirmation of funds transfer instructions will be performed by the Bank.

 

	[_]		Option 4. Delivery of funds transfer instructions
by password protected file transfer system with confirmation. Same as Option 3 above, but the Bank shall confirm funds
transfer instructions by [_] telephone call-back or [_]
email (must check at least one, may check both) to a person at the telephone number
or email address designated on Part B above. By checking a box in the prior sentence, the party shall be deemed to have agreed
to the terms of such confirmation option as more fully described in Option 1 and Option 2 above.

 

Dated this 29th day of October, 2012.

 

 

By /S/ BRYON T. MCGREGOR                              

Name: Bryon T. McGregor

Title: Chief Operating Officer

 

 

Exhibit 11.21

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