Document:

Exhibit 10.1

 

EXECUTION COPY

 

ASSET PURCHASE AGREEMENT

 

Dated as of April 23, 2021

 

By and Between

 

Seaboard Energy California, LLC

 

as Purchaser,

 

Pacific Ethanol Madera LLC

 

as Seller

 

and, for purposes of Article
IV and Article IX,

 

Alto Ingredients, Inc.

 

as Seller Parent

 

     

     

    

 

TABLE OF CONTENTS

 

		 	Page
	Article I.	PURCHASE AND SALE OF THE PURCHASED ASSETS;  ASSUMPTION
    OF ASSUMED LIABILITIES	1
	1.1	Purchase and Sale of the Purchased Assets	1
	1.2	Excluded Assets	2
	1.3	Assumption of Liabilities	3
	1.4	Excluded Liabilities	3
	Article II.	CONSIDERATION	4
	2.1	Consideration.	4
	2.2	Payments on the Closing Date.	4
	2.3	Proration	5
	Article III.	CLOSING AND TERMINATION	5
	3.1	Time of Closing	5
	3.2	Escrow Arrangements	5
	3.3	Closing	5
	3.4	Closing Costs.	6
	3.5	Closing Deliverables by Seller	6
	3.6	Closing Deliveries by Purchaser	8
	3.7	Termination of Agreement	8
	3.8	Procedures Upon Termination	9
	3.9	Effect of Termination.	10
	Article IV.	REPRESENTATIONS AND WARRANTIES OF SELLER AND SELLER PARENT	10
	4.1	Organization	10
	4.2	Authority	10
	4.3	No Inconsistent Obligations	10
	4.4	Consents	11
	4.5	Title of the Non-Real Property Assets	11
	4.6	Operation of the Site; Sufficiency of Assets.	11
	4.7	Real Property.	12
	4.8	Intellectual Property	13
	4.9	Compliance with Laws	13
	4.10	Litigation and Proceedings	13
	4.11	Contracts.	13
	4.12	Environmental Matters	14
	4.13	Permits.	15
	4.14	Employees; Labor Matters.	15
	4.15	Absence of Certain Changes	16
	4.16	Insurance	17
	4.17	Taxes.	17
	4.18	Balance Sheet	17

 

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	4.19	Seller Documents	17
	4.20	No Brokers	17
	4.21	No Other Representations or Warranties	18
	Article V.	REPRESENTATIONS AND WARRANTIES OF PURCHASER	18
	5.1	Organization and Qualification	18
	5.2	Authority	18
	5.3	No Inconsistent Obligations	19
	5.4	Sufficiency of Funds	19
	5.5	No Litigation	19
	5.6	No Brokers	19
	5.7	Independent Investigation	19
	5.8	No Other Representations or Warranties	20
	Article VI.	COVENANTS AND AGREEMENTS	20
	6.1	Conduct of Business.	20
	6.2	Due Diligence	21
	6.3	Assignability of Certain Contracts; Assumed Permits.	21
	6.4	Title Approval.	22
	6.5	Employment Matters.	22
	6.6	Notification of Certain Matters	23
	6.7	Confidentiality	23
	6.8	Seller Documents	23
	6.9	Publicity	23
	6.10	Material Adverse Effect	24
	6.11	Casualty Loss	24
	6.12	Litigation Support	24
	6.13	Payments	24
	6.14	Misallocated Assets	24
	6.15	Documents	25
	6.16	Names Following Closing	25
	6.17	Insurance	25
	6.18	Termination of Intercompany Arrangements	25
	6.19	No Solicitation of Other Bids; Exclusivity	25
	6.20	Seller Parent Letter of Credit	26
	6.21	CARB Compliance	26
	6.22	Equipment Removal	27
	6.23	Materials Removal	27
	6.24	Further Assurances	27
	Article VII.	CONDITIONS TO CLOSING	28
	7.1	Conditions Precedent to the Obligations of Purchaser and Seller	28
	7.2	Conditions Precedent to the Obligations of Seller	28
	7.3	Conditions Precedent to the Obligations of Purchaser	28

 

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	Article VIII.	TAXES	29
	8.1	Certain Taxes.	29
	8.2	Allocation of Purchase Price	30
	8.3	Cooperation on Tax Matters	30
	8.4	FIRPTA Certificate	30
	8.5	Tax Treatment of Indemnification Payments	30
	Article IX.	INDEMNIFICATION	31
	9.1	Survival.	31
	9.2	Indemnification by Purchaser	31
	9.3	Indemnification by Seller and Seller Parent	32
	9.4	Limitations on Indemnification	32
	9.5	Claims for Indemnification	32
	9.6	Tax Effect	35
	9.7	Calculation of Indemnification Payments	35
	9.8	Exclusive Remedy	36
	9.9	Treatment of Indemnification Payments	36
	9.10	Mitigation	36
	9.11	Additional Limitations on Liability	36
	9.12	Limitations on Environmental Claims	37
	9.13	No Personal Liability	37
	Article X.	Miscellaneous	37
	10.1	Notices	37
	10.2	Payment of Expenses	38
	10.3	Entire Agreement; Amendments and Waivers	38
	10.4	Execution of Agreement; Counterparts; Electronic Signatures.	39
	10.5	Governing Law	39
	10.6	Jurisdiction, Waiver of Jury Trial.	39
	10.7	Binding Effect; Assignment	39
	10.8	Severability	40
	10.9	Negotiated Transactions	40
	10.10	Bulk Sales Laws	40
	10.11	Disclosure Schedules	40
	Article XI.	DEFINITIONS	40
	11.1	Definitions	40

 

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INDEX OF SCHEDULES AND EXHIBITS

 

Schedules 

 

Schedule 1.1(c) – Fixed Assets

 

Schedule 1.1(d) – Assigned Contracts

 

Schedule 8.2 – Asset Allocation

 

Schedule 11.1(eeeee) – Vehicles

 

Exhibits

 

Exhibit A – Special Warranty Grant
Deed

 

Exhibit B – Bill of Sale

 

Exhibit C – Assignment and Assumption
Agreement

 

Exhibit D – Form of Seller Parent
Letter of Credit

 

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ASSET PURCHASE AGREEMENT

 

This Asset Purchase Agreement
(this “Agreement”), dated as of April 23, 2021 (the “Agreement Date”), is entered
into by and between SEABOARD ENERGY CALIFORNIA, LLC, a Delaware limited liability company (“Purchaser”), PACIFIC
ETHANOL MADERA LLC, a Delaware limited liability company (“Seller”) and, for purposes of Article IV and
Article IX hereof, ALTO INGREDIENTS, INC. (formerly, PACIFIC ETHANOL, INC.), a Delaware corporation (the “Seller Parent”).
Purchaser, Seller and (as provided above) Seller Parent are collectively referred to herein as the “Parties”
and individually as a “Party”. For the purposes of this Agreement, capitalized terms used herein shall have
the meanings set forth in Article XI.

 

RECITALS

 

WHEREAS, Seller owns certain
properties and assets located in Madera County, California, including rail infrastructure, an ethanol plant, a solar field and station,
a feed mill which are located at 31470 Ave 12, Madera, California 93638 (collectively, the “Site”) and other
tangible and intangible assets used in connection with the operations on the Site, which is currently idled and not in operation; and

 

WHEREAS, Purchaser desires
to purchase the Purchased Assets and assume the Assumed Liabilities from Seller and Seller desires to sell, convey, assign and transfer
to Purchaser the Purchased Assets together with the Assumed Liabilities, all in the manner and subject to the terms and conditions set
forth in this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration
of the foregoing and the mutual representations, warranties, covenants and agreements set forth herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, Purchaser and Seller
hereby agree as follows:

 

Article
I.

PURCHASE AND SALE OF THE PURCHASED ASSETS;

ASSUMPTION OF ASSUMED LIABILITIES

 

1.1
Purchase and Sale of the Purchased Assets. On the terms and subject to the conditions set forth herein, at the Closing,
Seller shall sell, transfer, assign, convey and deliver to Purchaser, and Purchaser shall purchase, acquire and accept from Seller, all
of Seller’s right, title, and interest in and to, free and clear of any and all Encumbrances except for Permitted Encumbrances,
the following assets of Seller, save and except any that is an Excluded Asset (collectively, the “Purchased Assets”):

 

(a)
the Site;

 

(b)
the Real Property (including the Water Wells associated therewith or located thereon);

 

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(c)
 all fixed assets, Furnishings and Equipment and other tangible personal property (i) located at the Site or on the Real Property
as of September 30, 2020 and/or (ii) currently and/or previously used in connection with the operation of the Site (including any such
assets that have been removed from the Site or the Real Property for repair but are, or have otherwise been, used in connection with the
operation of the Site), which shall include, but not be limited to, the items described on Schedule 1.1(c) (collectively, the “Fixed
Assets”);

 

(d)
all Contracts listed on Schedule 1.1(d) (the “Assigned Contracts”);

 

(e)
all unexpired Permits and all pending applications associated with the Site and/or the Real Property, but only if and to the extent
transferrable under applicable Law, as set forth on Section 4.13(a) of the Disclosure Schedule (the “Assumed Permits”);

 

(f)
all equipment parts and subassemblies located at the Site or on the Real Property as of September 30, 2020, and any raw materials,
work in process and finished goods remaining at the Site or on the Real Property as of the Closing Date;

 

(g)
all Vehicles and rolling stock and related parts, supplies and fuel located at the Site or on the Real Property as of September
30, 2020;

 

(h)
except for software and software configurations that support the connection of computers and other equipment at the Site to Seller’s
corporate network, which software and software configurations will be purged immediately prior to Closing, all computer hardware, data
networks, servers, communication equipment, software, discs and all stored data on any of the foregoing located at the Site as of September
30, 2020; and

 

(i)
all Documents located at the Site or relating to the Purchased Assets as of the Closing Date.

 

1.2
Excluded Assets. Notwithstanding anything to the contrary in this Agreement, (i) in no event shall Seller be deemed to sell,
transfer, assign or convey to Purchaser, and Purchaser shall not purchase or otherwise acquire, any asset, or right or property not expressly
included in the Purchased Assets, and (ii) the Purchased Assets shall not include any right, title and interest in or to any of the following
assets, rights or properties of Seller or its Affiliates (including Seller Parent), whether or not the following would otherwise be included
within the Purchased Assets (such assets, rights and properties in clauses (i) and (ii), collectively, the “Excluded Assets”):

 

(a)
the Organizational Documents of Seller, Tax Returns, books of account or other records having to do with the corporate organization
of Seller, all employee-related or employee benefit-related files or records;

 

(b)
any insurance policies (including any directors and officers liability and other management liability insurance policies) related
to the Purchased Assets operations of the Site, and all claims, demands, deposits, refunds, rebates, causes of action, choses in action,
rights of recovery, rights of set-off and rights of recoupment relating to such policies;

 

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(c)
 all Benefit Plans;

 

(d)
except for the Assigned Contracts, any Contract of Seller or Seller Parent;

 

(e)
all Tax refunds, credits and claims with respect to the ownership of the Purchased Assets or operation of the Business for any
Pre-Closing Tax Period and the portion of any Straddle Period ending on the Closing Date;

 

(f)
all records, information and communications with respect to the other Excluded Assets, including those records, information and
communications subject to an attorney/client privilege or accountant/client privilege;

 

(g)
all goodwill and other intangible assets of the Business, in each case to the extent primarily related to any other Excluded Assets,
the Excluded Liabilities or this Agreement; and

 

(h)
any rights of Seller under this Agreement and the other Ancillary Documents.

 

1.3
Assumption of Liabilities. On the terms and subject to the conditions set forth in this Agreement, effective as of the Closing,
Purchaser shall assume from Seller (and pay, perform, discharge or otherwise satisfy in accordance with their respective terms), and Seller
shall irrevocably convey, transfer and assign to Purchaser the following Liabilities related to the Purchased Assets (collectively, the
“Assumed Liabilities”):

 

(a)
any Liabilities under the Assigned Contracts (other than obligations arising or accruing prior to the Closing Date or with respect
to any breach or default existing prior to the Closing Date) including, without limitation, any and all amounts due and owing by Seller
under the CleanFund Commercial PACE Capital, Inc. Financing; and

 

(b)
all Liabilities for Taxes to the extent apportioned to Purchaser pursuant to Article VIII.

 

The assumption by Purchaser
of the Assumed Liabilities shall not, in any way, enlarge the rights of any third parties relating thereto.

 

1.4
Excluded Liabilities. The Assumed Liabilities shall not include, and Seller shall retain and shall hereafter pay, perform,
satisfy and discharge when due, all Liabilities of Seller other than those specifically set forth in Section 1.3 (the “Excluded
Liabilities”). For the avoidance of doubt, the Excluded Liabilities include the following:

 

(a)
any Indebtedness of Seller;

 

(b)
any Liabilities of Seller that are caused by a breach or default by Seller occurring prior to the Closing Date under any Contract;

 

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(c)
 any Liabilities of Seller (i) arising, existing, or accruing prior to the Closing Date that are caused by failure to comply with
an Environmental Law or Permit, including, but not limited to, Liabilities of Seller associated with San Joaquin Valley Unified Air Pollution
Control District notices of violation dated January 1, 2020 and April 29, 2020, respectively, (ii) that are within the scope of the representations
and warranties made by Seller in Section 4.12, (iii) for any personal injury, wrongful death or property or other damage arising
under any common law, statutory law or tort law theory that are related to any release or disposal of Hazardous Materials at, on, under
or migrating from the Purchased Assets, or (iv) related to the Business arising under any Environmental Laws with regard to the presence
of Hazardous Substances at any third-party facility at which Seller, any Seller Affiliate or any predecessor of Seller disposed of, arranged
for or permitted the disposal of, any Hazardous Substances prior to the Closing Date;

 

(d)
any Liabilities of Seller (including, without limitation, Tax Liabilities) relating to or arising out of the Purchased Assets or
the operation of the Site prior to the Closing Date;

 

(e)
any Liabilities of Seller relating to or arising out of the Excluded Assets; and

 

(f)
any Liabilities of Seller under this Agreement and the other Ancillary Documents.

 

Article
II.

CONSIDERATION

 

2.1
Consideration.

 

(a)
On the terms and subject to the conditions of this Agreement, Seller will sell, transfer, assign, convey and deliver to Purchaser,
and Purchaser will purchase from Seller, the Purchased Assets for the aggregate consideration (collectively, the “Purchase
Price”) of: (i) the assumption of Assumed Liabilities, and (ii) the Cash Consideration.

 

(b)
“Cash Consideration” means an amount equal to Nineteen Million Five Hundred Thousand Dollars ($19,500,000).

 

2.2
Payments on the Closing Date.

 

(a)
No later than three (3) Business Days prior to the Closing Date, Seller shall deliver to Purchaser a written statement, reasonably
satisfactory to Purchaser (the “Closing Statement”). At the Closing (and as provided in the Closing Statement),
Purchaser shall pay to Seller an amount equal to:

 

(i)
the Cash Consideration;

 

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(ii)
 plus Purchaser’s share of expenses (as set forth in Section 3.4(b)(i), Section 3.4(b)(ii), Section
3.4(b)(iii) and as provided in the Closing Statement); and

 

(iii)
less any credits (including, but not limited to, any real and personal property Tax prorations in accordance with Section
8.1(b), and as otherwise provided in the Closing Statement).

 

The balance of the Purchase Price (the “Closing
Cash Payment”) shall be disbursed to Seller by wire transfer of immediately available funds to such account or accounts
of Seller (or one or more of their designees) in accordance with the Closing Statement.

 

(b)
Should either Party object to any of the amounts or calculations in the Closing Statement, the Parties shall cooperate in a diligent
good faith manner to resolve such objections prior to the Closing, and the Closing Statement shall be adjusted prior to the Closing to
reflect any changes agreed to by the Parties prior to the Closing Date.

 

2.3
Proration. Any charges for utilities of the Site or Purchased Assets shall be based on readings of the utility meters performed
on the Closing Date or immediately thereafter. Relevant charges attributable to the reading of the meters on or immediately after the
Closing Date shall be billed to and paid by Seller and such part of the relevant charges attributable to the period commencing after the
Closing Date shall be billed to and paid by Purchaser.

 

Article
III.

CLOSING AND TERMINATION

 

3.1
Time of Closing. Subject to the terms and conditions of this Agreement, the closing of the transactions contemplated hereby
(the “Closing”) shall occur two (2) Business Days following the satisfaction or waiver of all conditions set
forth in Article VII (other than those conditions that by their terms are to be satisfied at the Closing, but subject to the satisfaction
or waiver of such conditions), or on such other date as may be agreed upon in writing by the Parties through the delivery and exchange
by electronic mail in PDF format between the Parties of all documents required to close the transactions contemplated by this Agreement.
The date on which the Closing occurs is referred to in this Agreement as the “Closing Date”. Unless otherwise
agreed by the Parties in writing, the Closing shall be deemed effective as of 12:01 a.m. Pacific Time on the Closing Date.

 

3.2
Escrow Arrangements. An escrow for the purchase and sale contemplated by this Agreement shall be opened by Purchaser and
Seller with the Title Company. No later than two (2) Business Days before the Closing Date, Seller and Purchaser shall each deliver escrow
instructions to Title Company consistent with this Article III, and the Parties shall deposit in escrow (a) the funds payable by
each Party as set forth in Section 2.2 and Section 3.4 and (b) the Deeds and any other documents to be recorded.

 

3.3
Closing. At Closing, the Title Company shall:

 

(a)
record the Deed(s);

 

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(b)
 issue the Title Policy to Purchaser;

 

(c)
deliver to Purchaser the physical assets set forth in Section 3.5(h); and

 

(d)
deliver to Seller the funds in the amount of the Closing Cash Payment.

 

3.4
Closing Costs. At Closing:

 

(a)
Seller shall pay (i) any county documentary transfer or transaction Taxes or fees due on the transfer of the Real Property, (ii)
50% of all escrow, recording or other fees (excluding endorsement fees) or costs charged by or reimbursable to Title Company, (iii) the
base premium for an ALTA title insurance policy (but only for a liability amount equal to the Purchase Price), and (iv) all fees and expenses
of its legal counsel, broker and other third party consultants engaged by or on behalf of Seller in connection with this transaction.

 

(b)
Purchaser shall pay (i) the balance of the premium for the Title Policy (including costs of endorsements, extended coverage and
related survey costs), (ii) any sales or use Taxes determined to be payable in connection with this transaction, (iii) 50% of all escrow,
recording or other fees or costs charged by or reimbursable to Title Company; and (iv) all fees and expenses of its legal counsel and
other third party consultants engaged by or on behalf of Purchaser in connection with this transaction.

 

(c)
Any costs and expenses of Closing that are not expressly identified in subparagraph (a) or (b) above shall be allocated equally
between Purchaser and Seller.

 

3.5
Closing Deliverables by Seller. At the Closing, Seller (and Seller Parent, as applicable) shall deliver, or cause to be
delivered, to Purchaser the following closing deliverables:

 

(a)
certificates of the Secretary (or equivalent officer) of Seller and Seller Parent, dated as of the Closing Date, (A) certifying,
as applicable, that attached thereto is a true and complete copy of the resolutions adopted by the sole member of Seller and board of
directors of Seller Parent, authorizing the execution, delivery and performance of this Agreement and the other Ancillary Documents to
which Seller or Seller Parent is a party and the consummation by Seller or Seller Parent of the transactions contemplated hereby and thereby
and (B) attesting to the satisfaction of the conditions set forth in Section 7.3(a) and Section 7.3(b) in form and substance
reasonably acceptable to Purchaser;

 

(b)
duly executed FIRPTA Certificate;

 

(c)
one or more special warranty grant deeds duly executed by Seller, in form and substance reasonably acceptable to Purchaser and
substantially in the form attached hereto as Exhibit A, conveying all right, title and interest of Seller in the Real Property,
subject to the Permitted Encumbrances (the “Deeds”);

 

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(d)
 counterpart, duly executed by Seller, of a bill of sale and assignment and assumption for the sale of the non-Real Property Purchased
Assets, substantially in the form attached hereto as Exhibit B (the “Bill of Sale”);

 

(e)
counterpart, duly executed by Seller, of an assignment and assumption agreement for the assignment of the Assigned Contracts, substantially
in the form attached hereto as Exhibit C (the “Assignment and Assumption Agreement”);

 

(f)
Seller Parent Letter of Credit, duly executed by Seller Parent for the benefit of Purchaser;

 

(g)
(i) from each creditor with whom Seller has an outstanding Indebtedness immediately prior to the Closing (other than outstanding
Indebtedness of Seller that is subject to any Assigned Contract), payoff letters or similar agreements, if any, in form and substance
reasonably acceptable to Purchaser and the Title Company, and (ii) from any Person releasing and terminating (in whole or in part) any
Encumbrances (whether represented by UCC financing statements or otherwise), other than Permitted Encumbrances, in favor of such Person
with respect to any of the Purchased Assets, in each case, executed by the applicable parties thereto;

 

(h)
possession of the Purchased Assets and the Site, including all keys, access cards, security passcodes and combinations;

 

(i)
an owner’s affidavit, duly executed by Seller and delivered to the Title Company, in form and substance reasonably acceptable
by the Title Company and Seller;

 

(j)
the marked commitment of the Title Company to issue the Title Policy naming Purchaser as the insured;

 

(k)
title to the Vehicles, duly endorsed by Seller,

 

(l)
with respect to the Real Property, such other affidavits, transfer tax declarations, and certificates as may be reasonably and
customarily required in Madera County, California in connection with sales of real property, and with respect to any Purchased Assets
other than the Real Property, such other bills of sale, deeds, endorsements, assignments and other good and sufficient instruments of
conveyance and transfer, in either case in a form reasonably satisfactory to Purchaser and Seller, as Purchaser may reasonably request
to vest in Purchaser all of Seller’s right, title and interest in, to or under the Site and any or all the Purchased Assets; and

 

(m)
all other certificates, agreements and other documents required by this Agreement (or as Purchaser may reasonably request that
are customary for a transaction of this nature and necessary to evidence or consummate the transactions contemplated by this Agreement)
to be delivered by Seller at or prior to the Closing in connection with the transactions contemplated by this Agreement.

 

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3.6
Closing Deliveries by Purchaser. At the Closing, Purchaser shall deliver, or cause to be delivered, to Seller the following
closing deliverables:

 

(a)
 the Closing Cash Payment;

 

(b)
certificate of the Secretary (or equivalent officer) of Purchaser, dated as of the Closing Date, (A) certifying that attached thereto
is a true and complete copy of the resolutions adopted by the board of directors of Purchaser, authorizing the execution, delivery and
performance of this Agreement and the other Ancillary Documents to which Purchaser is a party and the consummation by Purchaser of the
transactions contemplated hereby and thereby and (B) attesting to the satisfaction of the conditions set forth in Section 7.2(a)
and Section 7.2(b) in form and substance reasonably acceptable to Seller;

 

(c) counterpart, duly executed
by Purchaser, of the Bill of Sale;

 

(d)
counterpart, duly executed by Purchaser, of the Assignment and Assumption Agreement;

 

(e)
Preliminary Change of Ownership Report, duly executed by Purchaser; and

 

(f)
all other certificates, agreements and other documents required by this Agreement (or as Seller may reasonably request that are
customary for a transaction of this nature and necessary to evidence or consummate the transactions contemplated by this Agreement) to
be delivered by Purchaser at or prior to the Closing in connection with the transactions contemplated by this Agreement.

 

3.7
Termination of Agreement. This Agreement may be terminated only in accordance with this Section 3.7. This Agreement
may be terminated at any time prior to the Closing, as follows:

 

(a)
by the mutual written consent of Seller and Purchaser;

 

(b)
by written notice of either Seller or Purchaser to such other Party, if the Closing shall not have been consummated on or prior
to May 31, 2021 (the “Outside Date”); provided, however, that the Outside Date may be extended
by the mutual written consent of Seller and Purchaser, for a period up to seven (7) days to the extent that all conditions to Closing
set forth in this Agreement are capable of being satisfied as of such time; and provided, further, that the right to terminate
this Agreement under this Section 3.7(b) shall not be available to any Party whose failure to fulfill any obligation under this
Agreement shall have been the cause of, or shall have resulted in, the failure of the Closing to occur on or prior to such date.

 

(c)
by written notice from Seller (but only so long as Seller is not in material breach of its obligations under this Agreement) to
Purchaser, if Purchaser breaches or fails to perform in any respect any of its representations, warranties or covenants contained in this
Agreement and such breach or failure to perform: (i) would give rise to the failure of a condition set forth in Section 7.2, (ii)
cannot be or has not been cured within five (5) days following delivery of notice to Purchaser of such breach or failure to perform, and
(iii) has not been waived by Seller;

 

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(d)
 by written notice from Purchaser (but only so long as Purchaser is not in material breach of its obligations under this Agreement)
to Seller, if Seller breaches or fails to perform in any respect any of its representations, warranties or covenants contained in this
Agreement and such breach or failure to perform: (i) would give rise to the failure of a condition set forth in Section 7.3, (ii)
cannot be or has not been cured within five (5) days following delivery of notice to Seller of such breach or failure to perform, and
(iii) has not been waived by Purchaser;

 

(e)
by written notice from Purchaser to Seller, if any event, change or occurrence in state of facts has had a Material Adverse Effect;

 

(f)
by written notice from Purchaser to Seller no later than thirty (30) days after the Agreement Date, if Purchaser determines that
the results of the Purchaser’s Due Diligence are not satisfactory to Purchaser;

 

(g)
by written notice from Purchaser to Seller if all or any portion of the Purchased Assets with a fair market value or replacement
value, whichever is greater, in excess of $2,000,000 individually, or in the aggregate, is (i) condemned or taken by eminent domain, or
(ii) is damaged or destroyed by fire, flood or other casualty, in any case regardless of whether or not insured or Seller is otherwise
entitled to receive compensation therefore; or

 

(h)
by Seller in the event (i) all of the conditions set forth in Section 7.3 have been and continue to be satisfied (other
than conditions with respect to actions the Parties shall take at the Closing itself or which, by their nature, cannot be satisfied until
the Closing, but in each case are capable of being satisfied at or prior to the Closing), (ii) Seller has notified Purchaser in writing
that it is ready, willing and able to consummate the transactions contemplated by this Agreement, (iii) the Due Diligence Period has lapsed;
(iv) Purchaser has failed to complete the Closing when required pursuant to Section 3.1, and (v) Purchaser fails to complete the
Closing within three (3) Business Days after the date of receipt of the notice contemplated by clause (ii) and Seller stood ready, willing
and able to consummate the transactions contemplated by this Agreement through the end of such three (3) Business Day period.

 

Each condition set forth in this Section 3.7
pursuant to which this Agreement may be terminated shall be considered separate and distinct from each other such condition. If more than
one of the termination conditions set forth in this Section 3.7 is applicable, the applicable Party shall have the right to choose
the termination condition pursuant to which this Agreement is to be terminated.

 

3.8
Procedures Upon Termination. In the event of termination and abandonment by Purchaser or Seller pursuant to Section 3.7,
written notice thereof shall forthwith be given to the other Party, and this Agreement shall terminate and the purchase of the Purchased
Assets and the assumption of the Assumed Liabilities hereunder shall be abandoned, without further action by Purchaser or Seller. If this
Agreement is terminated as provided herein, each Party shall return if requested all documents, work papers and other material of any
other Party relating to the transactions contemplated hereby (including any Confidential Information), whether so obtained before or after
the execution hereof, to the Party furnishing the same.

 

    9

     

    

 

3.9
 Effect of Termination. In the event of termination of this Agreement in accordance with Section 3.7, this Agreement
shall become null and of no further force or effect, and there shall be no Liability on the part of any Party, except that (a) this Section
3.9, Section 6.7, Section 6.9 and Article X shall expressly survive the expiration or termination of this Agreement
and (b) nothing herein shall relieve any Party hereto from Liability for any breach of this Agreement.

 

Article
IV.

REPRESENTATIONS AND WARRANTIES OF SELLER AND SELLER PARENT

 

Seller and Seller Parent hereby
represent and warrant, jointly and severally, to Purchaser as follows as of the date hereof and as of the Closing Date:

 

4.1
Organization. Seller is a limited liability company duly qualified, validly existing and in good standing under the laws
of the State of Delaware. Seller has all necessary organizational power and authority to own and operate its properties and assets (including
the Purchased Assets) and to carry on the operation of the Site as currently and/or previously conducted. Seller is duly licensed or qualified
and in good standing as a foreign corporation in each jurisdiction in which the ownership of the Purchased Assets or the operation of
the Site makes such licensing or qualification necessary. Seller has made available to Purchaser true and complete copies of its Organizational
Documents. Seller Parent is a corporation duly qualified, validly existing and in good standing under the laws of the State of Delaware.

 

4.2
Authority. Seller and Seller Parent have all requisite power and authority to execute and deliver this Agreement and each
of the Ancillary Documents to which it is a party, to perform its obligations hereunder and thereunder, and to consummate the transactions
contemplated hereby and thereby. The execution and delivery of this Agreement and each of the Ancillary Documents to which Seller or Seller
Parent is a party, the performance by Seller and Seller Parent of their respective obligations hereunder and thereunder and the consummation
of the transactions contemplated hereby and thereby have been duly and validly authorized by all necessary action on the part of Seller
and Seller Parent and does not require any authorization or consent of any manager, member, director, officer or equity owner that has
not been obtained. This Agreement has been, and at or prior to the Closing, each of the Ancillary Documents to which Seller or Seller
Parent is a party will be, duly and validly executed and delivered by Seller and Seller Parent and (assuming the due authorization, execution
and delivery by the other Parties) this Agreement constitutes, and each Ancillary Document to which Seller or Seller Parent is a party
when so executed and delivered (assuming the due authorization, execution and delivery by the other parties thereto) will constitute,
legal, valid and binding obligations of Seller and Seller Parent, enforceable against Seller and Seller Parent in accordance with its
terms, subject to applicable bankruptcy, insolvency, reorganization, fraudulent transfer, moratorium or similar laws affecting creditors’
rights generally and to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

 

4.3
No Inconsistent Obligations. Neither the execution and delivery of this Agreement or any other documents contemplated hereby,
nor the consummation of the transactions contemplated herein, will, to Seller’s Knowledge, result in a violation or breach of, or
constitute a default under, (a) the Organizational Documents
of Seller, (b) any ruling or order of any Governmental Body applicable to Seller or the Purchased Assets, (c) any term or provision of
any Contract or agreement relating to or arising out of the operation of the Site, the Real Property or the Business (including any Assigned
Contracts) , (d) any writ, order, judgment, decree, law, rule, regulation or ordinance applicable to Seller or the Purchased Assets, or
(e) any other commitment or restriction to which Seller is a party, nor will such actions result in the creation of a lien or Encumbrance,
other than any Permitted Encumbrances.

 

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4.4
Consents. Except for the notices, filings and consents set forth on Section 4.4 of the Disclosure Schedule and except
for any consents where the failure to obtain such consents, either in any individual case or in the aggregate, would not reasonably be
expected to be material to the Business, Seller is not required to give any notice to, make any registration, declaration or filing with
or obtain any consent, waiver or approval from, any Person (including any Governmental Body) in connection with the execution and delivery
of this Agreement and each of the Ancillary Documents or the consummation or performance of any of the transactions contemplated hereby
and thereby.

 

4.5
Title of the Non-Real Property Assets. Except for the Encumbrances set forth on Section 4.5 of the Disclosure Schedule,
Seller has good and marketable title to all of the non-Real Property Purchased Assets, free and clear of all Encumbrances other than Permitted
Encumbrances. Seller has the right to transfer or assign (or cause to be transferred or assigned), in accordance with the terms of this
Agreement, title to such owned non-Real Property Purchased Assets, free and clear of all Encumbrances other than Permitted Encumbrances.
The Purchased Assets owned and being transferred hereunder by Seller are not subject to any oral or written leases.

 

4.6
Operation of the Site; Sufficiency of Assets.

 

(a)
Seller is the only entity through which the operation of the Site is or, for the past three (3) years, has been conducted.

 

(b)
The Purchased Assets constitute all of the rights, properties and assets (i) that are used in the operation of the Site; and (ii)
that are necessary, adequate and sufficient to conduct and operate the Site after Closing in substantially the same manner as conducted
as of the last date of any production of ethanol on the Site in 2020, other than as set forth in Section 4.6(b) of the Disclosure Schedule.
Seller has Water Wells and water supply as is necessary to operate the Site in the Ordinary Course of Business and to maintain the Real
Property as currently held.

 

(c)
To Seller’s Knowledge, all Fixed Assets included in the Purchased Assets are (i) in good and operating condition, ordinary
wear and tear excepted, and (ii) suitable for the uses to which they are currently being and/or were previously put. No Fixed Assets included
in the Purchased Assets are in need of current maintenance or repairs except for routine maintenance and repairs in the Ordinary Course
of Business that are not, individually or in the aggregate, material in nature or cost.

 

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(d)
 None of the Fixed Assets have been materially damaged since September 30, 2020 by fire, wind, tornado, flooding or any other casualty
which have not been repaired.

 

4.7
Real Property.

 

(a)
Section 4.7(a) of the Disclosure Schedule contains a true and complete list of all real property owned by Seller and used
or held for use in the operation of the Site or otherwise being sold to Purchaser, together with all buildings, structures, fixtures and
improvements erected thereon and all rights, privileges, easements, licenses and other appurtenances relating thereto (the “Real
Property”).

 

(b)
Section 4.7(b) of the Disclosure Schedule contains a true and complete list of all water rights, water use permits, and
well locations owned by Seller and associated with or located on the Real Property (the “Water Wells”).

 

(c)
Seller has good, valid and marketable title to all Real Property, free and clear of all Encumbrances other than Permitted Encumbrances.

 

(d)
All buildings, structures, fixtures and improvements on the Real Property are in good operating condition and repair, ordinary
wear and tear excepted, and are fit for occupancy and use consistent with past practice. There are no facts or conditions affecting any
of the buildings, structures, fixtures or improvements on the Real Property that would reasonably be expected to interfere with the current
occupancy or use thereof. The Real Property has access to public roads or valid easements over private property for ingress to and egress
from the Real Property. To the extent consistent with industry standards in Seller’s area of operations, all buildings and structures
on the Real Property have access to water supply, storm and sanitary sewer or septic facilities, telephone, gas and electrical connections,
drainage and other public utilities, in each case as is necessary for the operation of the Site in the manner conducted on the last day
of any production of ethanol on the Site in 2020 and to maintain the Real Property. No building or structure on the Real Property encroaches
upon real property of another Person, and no buildings or structure of any other Person encroaches upon any Real Property.

 

(e)
There are currently in effect such insurance policies for the Real Property as are customarily maintained with respect to similar
properties utilized for comparable purposes. All premiums due on such insurance policies have been timely paid by Seller. Seller has not
received written notice from any insurance company concerning any defects or inadequacies in any Real Property, which, if not corrected,
would result in any termination or increase in the cost of any insurance policies maintained for such Real Property.

 

(f)
There are no pending or, to Seller’s Knowledge, threatened condemnation proceedings relating to any of the Real Property.

 

(g)
There are no outstanding options or rights of first refusal to purchase or lease the Real Property or any portion thereof or any
interest therein.

 

    12

     

    

 

(h)
 Seller has not received any form of notice from any Governmental Body relating to (i) violations of building, zoning, safety and
fire ordinances or regulations which have not been remedied or corrected; (ii) claims of any material defect or deficiency with respect
to any of such properties which have not been remedied or corrected; or (iii) requests for the performance of any repairs, alterations
or other work, other than any which Seller has remedied or corrected. The Real Property is not subject to any special assessment, assessment
for improvements, municipal charge or other similar charge or assessment.

 

4.8
Intellectual Property. Seller does not have title to any Intellectual Property. Neither Seller nor its manufacture, use,
sale or provision of any product or service by Seller infringes, misappropriates, or otherwise violates or has infringed, misappropriated
or otherwise violated any Intellectual Property of any third-party or constitutes or has constituted unfair competition, false advertising
or other unfair business practices, and Seller has not received notice of any such claim. No Action is pending in respect
of any of the foregoing, nor is any Action pending or, to the Knowledge of Seller, threatened. 

 

4.9
Compliance with Laws. Except for those matters set forth on Section 4.9 of the Disclosure Schedule, (i) Seller is
not, and to Seller’s Knowledge, has not been in violation of any Law applicable to Seller with respect to the operation of the Site
and the Purchased Assets, and (ii) Seller has not received any written notice of violation of any laws or regulations applicable to the
operation of the Site or the Purchased Assets.

 

4.10
Litigation and Proceedings. There is no Action, suit, claim or legal, administrative, arbitration, condemnation or other
proceeding, including but not limited to any change in any zoning or building ordinance, affecting the properties or rights of Seller
or relating to the Purchased Assets, pending or threatened since January 1, 2015, or injunction or orders entered, pending or threatened
since January 1, 2015, against Seller in relation to the operation of the Site or the Purchased Assets, at law or in equity, before or
by any Governmental Body, and to Seller’s Knowledge, there exists no basis for the commencement of any of the foregoing.

 

4.11
Contracts.

 

(a)  
Section 4.11(a) of the Disclosure Schedule sets forth all Contracts (including any Assigned Contracts) that, to the Knowledge
of Seller, relate to the operation of the Site, the Real Property or the Business. As of the date hereof, neither Seller or, to the Knowledge
of Seller, any other party to an Assigned Contract disclosed on Section 4.11(a) of the Disclosure Schedule is in breach of, or
default under, any such Assigned Contract and no event has occurred that, with the giving of notice or lapse or time, or both, would become
a default (whether by lapse of time or notice or both). Furthermore, as of the date hereof, each Assigned Contract is in full force and
effect and is valid, binding and enforceable against Seller, and, to the Knowledge of Seller, the other parties thereto, in accordance
with its terms, in each case, subject to the effect of any applicable bankruptcy, reorganization, insolvency, moratorium, rehabilitation,
liquidation, fraudulent conveyance, preferential transfer or similar Laws now or hereafter in effect relating to or affecting creditors’
rights and remedies generally and subject, as to enforceability, to the effect of general equitable principles (regardless of
whether enforcement is sought in a proceeding in equity or at law).

 

    13

     

    

 

(b)
Seller has not, and, to Seller’s Knowledge, no other party to any Assigned Contract has, commenced any Action against any
of the parties to any such Assigned Contract or given or received any written notice of any material default or violation under any such
Assigned Contract that has not been withdrawn or dismissed. Subject to the rights of each counterparty to each Assigned Contract to consent
to the assignment thereof, each Assigned Contract is, or will be upon the Closing, a valid and binding agreement enforceable against Seller
and, to Seller’s Knowledge, the other or parties thereto in accordance with its terms, in each case, subject to the effect of any
applicable bankruptcy, reorganization, insolvency, moratorium, rehabilitation, liquidation, fraudulent conveyance, preferential transfer
or similar Laws now or hereafter in effect relating to or affecting creditors’ rights and remedies generally and subject, as to
enforceability, to the effect of general equitable principles (regardless of whether enforcement is sought in a proceeding in equity or
at law).

 

4.12
Environmental Matters. Except as disclosed on Section 4.12 of the Disclosure Schedule or as set forth in the Phase
I Report and Phase II Report:

 

(a)
No Hazardous Materials have been stored, produced, placed, Released or discharged on or from the Real Property or the operation
of the Site by Seller or at Seller’s direction, except in compliance with Environmental Laws.

 

(b)
There are no above ground storage tanks, storage vessels, sumps, drums, containers or landfills, and, to Seller’s Knowledge,
no underground, buried, or partially buried storage tanks, located on the Real Property.

 

(c)
No written warning, notice, notice of violation, administrative complaint, judicial complaint or other written notice or request
for information has been issued to Seller by any federal, state or local environmental agency or other public agency within the last five
(5) years alleging that conditions on the Real Property or related to the Purchased Assets, or related to the operation of the Site are
in violation of any Environmental Law.

 

(d)
No written demand, threat, notice of intent to sue or other communication alleging environmental harm or violation of Environmental
Law has been issued to Seller by any other Person within the last five (5) years related to the Real Property, Purchased Assets or operation
of the Site.

 

(e)
To Seller’s Knowledge, within the last five (5) years, Seller has not violated, and Seller is presently in compliance with,
all Environmental Laws applicable to the Real Property or the operation of the Site.

 

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4.13
 Permits.

 

(a)
Section 4.13(a) of the Disclosure Schedule sets forth a true and complete list of all Permits (including Assumed Permits)
relating to the Purchased Assets held by Seller, true and complete copies of which have been provided to Purchaser.

 

(b)
Except as set forth on Section 4.13(b) of the Disclosure Schedule, Seller possesses or previously possessed all material
Permits necessary to entitle Seller to own, operate and use the Purchased Assets in compliance with all applicable laws and regulations
and to carry on and conduct the operation of the Site substantially as currently and/or previously conducted in compliance with all applicable
laws and regulations.

 

(c)
Seller has fulfilled and performed its obligations under each of the Permits, and, to Seller’s Knowledge, no event has occurred
or condition or state of facts exists which constitutes or, after notice or lapse of time or both, would constitute a breach or default
under any such Permit or which permits or, after notice or lapse of time or both, would permit revocation or termination of any such Permit,
or which might adversely affect the rights of Seller under any such Permit, except in each case as would not reasonably be expected to
have a Material Adverse Effect.

 

(d)
Except as set forth on Section 4.13(d) of the Disclosure Schedule, no notice of violation, cancellation, default or any
dispute concerning any Permit currently held by Seller, or of any event, condition or state of facts described in the preceding clause
is known to exist by Seller within the last three (3) years. Each of the Permits is valid, existing and in full force and effect.

 

4.14
Employees; Labor Matters.

 

(a)
Seller has no employees. A list of all current employees of Seller Parent working for or in connection with the operation of the
Site (collectively, the “Employees”) and independent contractors of Seller or Seller Parent working for or in
connection with the operation of the Site and their respective titles, compensation and designation as either exempt or non-exempt from
the overtime requirements of the Fair Labor Standards Act of 1938, as amended, will be provided to Purchaser prior to Closing and will
be accurate and complete as of the date of the disclosure. Seller or Seller Parent has provided to Purchaser on or prior to the Closing
the rate of all regular and special compensation and commissions payable to each such person in any and all capacities and any regular
or special compensation or commissions that shall be payable to each such person in any and all capacities as of the Closing Date other
than the then current accrual of regular payroll compensation, and such information is true, correct and complete.

 

(b)
Seller is not a party to any labor or collective bargaining agreement. To the Knowledge of Seller, there are no Actions pending
or threatened against Seller by any Person alleging they were or are a past or current employee of Seller. To the Knowledge of Seller,
there are no unfair labor practice charges, arbitrations, grievances or complaints pending or threatened in writing against Seller relating
to the alleged employment or termination of employment of any individual by Seller, except for such unfair labor practice charges, arbitrations,
grievances or complaints that would not reasonably be expected
to have a Material Adverse Effect. To the Knowledge of Seller, there are no complaints, charges, administrative proceedings or claims
against Seller pending or threatened in writing to be brought or filed with any Governmental Body based on or arising out of the alleged
employment by Seller Parent of any Employee. Seller has not incurred any liability or obligation under the WARN Act or similar state Laws,
which remains unpaid or unsatisfied.

 

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4.15
Absence of Certain Changes. Except as otherwise contemplated by this Agreement, from September 30, 2020 to the Agreement
Date, there has not been a Material Adverse Effect and Seller has not:

 

(a)
sold, transferred, licensed, leased, subleased, assigned, abandoned or otherwise disposed of any of the Fixed Assets;

 

(b)
terminated, modified or amended any Assigned Contract or taken any action which violates, conflicts with or resulted in a breach
of any provision of, or constitutes a default under, or give rise to the right of any counterparty to accelerate the obligations under
or modify the terms of, any Assigned Contract;

 

(c)
purchased or otherwise acquired any properties or assets (tangible or intangible) or sold, leased, transferred or otherwise disposed
of any Purchased Assets, except for disposal of personal property in the Ordinary Course of Business;

 

(d)
permitted, allowed or suffered any of the Purchased Assets to be subjected to any Encumbrance (other than Permitted Encumbrances);

 

(e)
waived or released any claim or rights included in or related to the Purchased Assets or the Site or revalued any of the Purchased
Assets;

 

(f)
entered into any contractual relationship with any third party related to the Purchased Assets or the Site;

 

(g)
made any commitments for capital expenditures;

 

(h)
introduced any material change with respect to the Ordinary Course of Business of the Site;

 

(i)
suffered any damage or destruction to or loss of any assets or properties relating to the Purchased Assets or the Site;

 

(j)
changed in any way Seller’s accounting methods, principles or practices other than required by changes in GAAP;

 

(k)
incurred any Indebtedness or paid, discharged or satisfied any claims, liabilities or obligations, other than the payment, discharge
or satisfaction in the Ordinary Course of Business of Liabilities incurred in the Ordinary Course of Business;

 

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(l)
 requested any modification or termination of an Assumed Permit, or allowed any Assumed Permit held by Seller to terminate, expire
or lapse relating to the Purchased Assets or the Site; or

 

(m)
agreed or committed to do any of the foregoing.

 

4.16
Insurance. Section 4.16 of the Disclosure Schedule sets forth a list of all policies of insurance and bonds of any
type presently in force with respect to the Purchased Assets (including any title insurance policies relating to the Real Property) and
the operation of the Site. Such policies and bonds provide such coverage in such amounts and against such loss and risks as would be maintained
by comparable businesses exercising prudent business practices, all such policies are in full force and effect, all premiums with respect
thereto covering all periods up to and including the Closing Date have been paid and no written notice of cancellation or termination
or non-renewal has been received by Seller with respect to any such policy. The insurance policies to which Seller is a party are sufficient
for compliance with all material requirements of applicable law and will be maintained by Seller through Closing.

 

4.17
Taxes.

 

(a)
All Tax Returns required to be filed with any taxing authority by Seller on or before the Closing Date with respect to the Purchased
Assets (A) have been timely and properly filed and (B) are true, correct and complete, in all material respects.  All Taxes (whether
or not shown as due and payable on any such tax return) with respect to the Purchased Assets have been timely paid or withheld and
will be remitted to the appropriate taxing authority on or before the due date thereof.  

 

(b)
No deficiencies for Taxes or other assessments relating to Taxes have been claimed, threatened, proposed or assessed with
respect to the Purchased Assets.  There is no audit by a taxing authority or Tax Proceeding now pending or threatened in respect
of any tax levied against Seller relating to the Purchased Assets. 

 

4.18
Balance Sheet. Copies of Seller’s (a) balance sheets as of December 31, 2019 and (b) balance sheets as of September
30, 2020 (collectively, the “Financial Statements”) have been made available to Purchaser. The Financial Statements
have been prepared from the books and records of Seller and have been prepared in accordance with GAAP on a consistent basis throughout
the periods covered thereby. The Financial Statements fairly present the financial condition of the operation of the Site as of the respective
dates thereof.

 

4.19
Seller Documents. The Documents of Seller are in all material respects true, complete and accurate and have been maintained
in accordance with reasonable standard business practices on a basis consistent with prior years, and state in reasonable detail and accurately
reflect the matters covered by such records.

 

4.20
No Brokers. No broker, finder, or investment banker is entitled to any brokerage, finder’s or other fee or commission
in connection with the transactions contemplated by this Agreement or any other Ancillary Document based
upon arrangements made by or on behalf of Seller or any of its Affiliates.

 

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4.21
No Other Representations or Warranties. EXCEPT AS AND TO THE EXTENT SET FORTH IN THIS ARTICLE IV AND IN THE DEED(S),
(A) PURCHASER ACKNOWLEDGES AND AGREES THAT THE PURCHASED ASSETS ARE BEING SOLD BY SELLER ON AN “AS IS, WHERE IS” BASIS, AND
(B) NONE OF SELLER, SELLER PARENT OR ANY OF THEIR AFFILIATES, MEMBERS, OFFICERS, MANAGERS, EMPLOYEES, DIRECTORS OR AGENTS MAKE OR HAVE
MADE ANY OTHER REPRESENTATION, WARRANTY OR STATEMENTS OF ANY KIND, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, IN RESPECT OF SELLER OR SELLER
PARENT, THE PURCHASED ASSETS, THE SITE, THE REAL PROPERTY, THE BUSINESS, THE ASSIGNED CONTRACTS OR THE ASSUMED LIABILITIES, THEIR FINANCIAL
CONDITION, RESULTS OF OPERATIONS, FUTURE OPERATING OR FINANCIAL RESULTS, ESTIMATES, PROJECTIONS, FORECASTS, PLANS OR PROSPECTS (INCLUDING
THE REASONABLENESS OF THE ASSUMPTIONS UNDERLYING SUCH ESTIMATES, PROJECTIONS, FORECASTS, PLANS OR PROSPECTS) OR THE ACCURACY OR COMPLETENESS
OF ANY INFORMATION REGARDING SELLER, SELLER PARENT, THE PURCHASED ASSETS, THE SITE, THE REAL PROPERTY, THE BUSINESS, THE ASSIGNED CONTRACTS
OR THE ASSUMED LIABILITIES, AND SELLER AND SELLER PARENT EXPRESSLY DISCLAIM ANY SUCH REPRESENTATION, WARRANTY OR STATEMENTS OF ANY KIND
(OR ERRORS THEREIN OR OMISSIONS THEREFROM). NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT, EXCEPT AS SET FORTH
IN THIS ARTICLE IV AND THE DEED(S), NONE OF SELLER, SELLER PARENT OR ANY OF THEIR AFFILIATES, MEMBERS, OFFICERS, MANAGERS, EMPLOYEES,
DIRECTORS OR AGENTS MAKE OR HAVE MADE ANY OTHER REPRESENTATION, WARRANTY OR STATEMENTS OF ANY KIND, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY,
IN RESPECT OF THE EXCLUDED LIABILITIES INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

 

Article
V.

REPRESENTATIONS AND WARRANTIES OF PURCHASER

 

Purchaser represents and warrants
to Seller as follows as of the date hereof and as of the Closing Date:

 

5.1
Organization and Qualification. Purchaser is a limited liability company duly qualified, validly existing and in good standing
under the laws of the State of Delaware. Purchaser has all requisite power and authority to purchase the Purchased Assets.

 

5.2
Authority. Purchaser has all necessary power and authority to execute, deliver and perform this Agreement and the Ancillary
Documents to which it is a party and to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance
by Purchaser of this Agreement and the Ancillary Documents to which it is a party and the consummation of the transactions contemplated
hereby and thereby have been duly authorized by all necessary corporate or similar action on the part of Purchaser. Purchaser has duly
executed and delivered this Agreement, and assuming due authorization, execution and delivery by Seller, this Agreement constitutes a
valid and binding obligation of Purchaser, enforceable against Purchaser in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization, fraudulent transfer, moratorium or similar Laws affecting creditors’ rights generally and to general
principles of equity.

 

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5.3
No Inconsistent Obligations. Neither the execution and delivery of this Agreement or any other documents contemplated hereby,
nor the consummation of the transactions contemplated herein, will, to Purchaser’s actual knowledge, result in a violation or breach
of, or constitute a default under, (a) the certificate of formation, the operating agreement, or other organizational instruments of Purchaser,
(b) any applicable ruling or order of any Governmental Body, (c) any term or provision of any contract or agreement, (d) any writ, order,
judgment, decree, law, rule, regulation or ordinance, or (e) any other commitment or restriction to which Purchaser is a party, nor will
such actions result in the creation of a lien or Encumbrance except for Permitted Encumbrances.

 

5.4
Sufficiency of Funds. Purchaser has, and on the Closing Date will have, sufficient funds available to it to pay the Closing
Cash Payment to Seller at the Closing.

 

5.5
No Litigation. To Purchaser’s actual knowledge, there are no material pending suits, asserted claims, hearings, or
proceedings instituted against Purchaser challenging the legality of the transactions contemplated in this Agreement.

 

5.6
No Brokers. No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission
in connection with the transactions contemplated by this Agreement or any of the other Ancillary Documents based upon arrangements made
by or on behalf of Purchaser.

 

5.7
Independent Investigation. Purchaser has conducted its own independent investigation, review and analysis of the operation
of the Site, the Purchased Assets and the Assumed Liabilities. Purchaser acknowledges and agrees that (a) in making its decision to enter
into this Agreement, Purchaser has relied solely upon its own investigation, review and analysis and not on any factual representations
or opinions of Seller or its representatives, except the representations and warranties of Seller expressly set forth in Article IV;
and (b) none of Seller or any of its Affiliates, members, officers, employees or representatives make or have made any other representation,
warranty or statement of any kind, express or implied, at law or in equity, in respect of Seller, the Purchased Assets, the Assumed Liabilities,
the Site or the Business, their financial condition, results of operations, future operating or financial results, estimates, projections,
forecasts, plans or prospects (including the reasonableness of the assumptions underlying such estimates, projections, forecasts, plans
or prospects). Notwithstanding anything to the contrary contained in this Agreement, none of Seller or any of its Affiliates, members,
officers, employees or representatives make or have made any other representation, warranty or statements of any kind, express or implied,
at law or in equity, in respect of the Excluded Assets or Excluded Liabilities.

 

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5.8
 No Other Representations or Warranties. Except for the representations and warranties contained in this Article V,
neither Purchaser nor any of its representatives has made or makes any other representation or warranty, whether express or implied, written
or oral, on behalf of Purchaser. Purchaser hereby disclaims any such other representations or warranties, whether made by Purchaser or
any of its Affiliates or any of its or their respective members, officers, employees or representatives.

 

Article
VI.

COVENANTS AND AGREEMENTS

 

6.1
Conduct of Business.

 

(a)
From the date hereof and continuing until the earlier of the termination of this Agreement or the Closing Date, except (i) as required
by applicable Law, (ii) as contemplated by or required to implement this Agreement, the Disclosure Schedule or any Ancillary Agreement
or (iii) as otherwise waived or consented to by Purchaser in writing (which consent shall not be unreasonably withheld, conditioned
or delayed), Seller shall:

 

(i)
use commercially reasonable efforts to carry on the Business in the Ordinary Course of Business; provided, however,
that no action by Seller with respect to matters addressed by any other provision of Section 6.1(b) shall be deemed a breach of
this Section 6.1(a) unless such action would constitute a breach of such other provision;

 

(ii)
use commercially reasonable efforts to (A) maintain the current state of the Purchased Assets (normal wear and tear excepted) and
(B) comply with all Laws applicable to the operation of the Site and the Purchased Assets;

 

(iii)
except as may be agreed between Purchaser and Seller, maintain and preserve all Assumed Permits set forth on Section 4.13(a)
of the Disclosure Schedule, and Seller agrees to cooperate with Purchaser to obtain or transfer to Purchaser all requisite Permits;

 

(iv)
preserve in full force and effect all Assigned Contracts; and

 

(v)
obtain or keep, or cause to be kept, in full force and effect all insurance policies set forth on Section 4.16 of the Disclosure
Schedule.

 

(b)
From the date hereof and continuing until the earlier of the termination of this Agreement or the Closing Date, except (i) as required
by applicable Law, (ii) as contemplated by or required to implement this Agreement, the Disclosure Schedule or any Ancillary Agreement
or (iii) as otherwise waived or consented to by Purchaser in writing (which consent shall not be unreasonably withheld, conditioned or
delayed), Seller shall not do any of the following with respect to the Business:

 

(i)
permit, allow or suffer any of the Purchased Assets to be subjected to any Encumbrance, other than Permitted Encumbrances; or

 

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(ii)
 make any sale, assignment, transfer or other conveyance of any of the Purchased Assets.

 

6.2
Due Diligence. From the date hereof and continuing until the earlier of the termination of this Agreement or the Closing
Date, Purchaser shall have the right to undertake a review of such diligence, test or studies with respect to the Purchased Assets and
the operation of the Site (collectively, the “Due Diligence”) that Purchaser deems necessary, during normal
business hours, on advance notice to Seller’s General Counsel, including the following:

 

(a)
Seller shall give Purchaser access to the Purchased Assets to inspect them to whatever extent Purchaser believes is necessary or
helpful, including but not limited to the inspection of all Fixed Assets to ensure mechanical fitness and useful operating condition;

 

(b)
to review all existing surveys and deeds or to conduct such additional surveys as Purchaser may desire; and

 

(c)
to review all Permits and licenses, and consult with permitting authorities as necessary for Purchaser to engage in the operation
of the Site and own and operate the Purchased Assets post-Closing, as applicable; provided, however, that the Due Diligence
activities of Purchaser pursuant to this Section 6.2(c) shall be completed within thirty (30) days after the Agreement Date (the
“Due Diligence Period”).

 

6.3
Assignability of Certain Contracts; Assumed Permits.

 

(a)
Purchaser and Seller shall use their commercially reasonable efforts to obtain, prior to the Closing, any consents of third parties
and any authorizations or permits from any Governmental Body required in connection with the consummation of the transactions contemplated
herein. Notwithstanding the foregoing, to the extent that the assignment to Purchaser of any Assigned Contract pursuant to this Agreement
is not permitted without the consent of a third party or Governmental Body, then this Agreement will not be deemed to constitute an assignment
of or an undertaking or attempt to assign such Assigned Contract or any right or interest therein unless and until such consent is obtained;
provided, however, that the Parties will use their commercially reasonable efforts, before the Closing, to obtain all such
consents; provided, further, that if any such consents are not obtained prior to the Closing Date, then Seller shall provide
and extend the full benefit of such Assigned Contract to Purchaser to the extent permitted therein and by applicable Law and shall cooperate
with Purchaser in any commercially reasonable and lawful arrangement mutually agreed to between Purchaser and Seller to give Purchaser
the full benefit of such Assigned Contract accruing on or after the Closing in a way that is permissible under the terms thereunder and
that does not violate applicable Law, provided, however, that Purchaser and Seller shall continue to use their commercially
reasonable efforts to obtain any such required consent as promptly as practicable. Seller shall pay all costs reasonably necessary to
effectuate the assignment of all Assigned Contracts. Notwithstanding the foregoing, it is understood that in no event shall Seller be
required to commence, defend, join or participate in any litigation, expend money in connection thereto, incur any obligation in favor
of, or offer or grant any accommodation (financial or otherwise) to any third party in
connection with the performance of its obligations pursuant to this Section 6.3(a).

 

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(b)
Purchaser and Seller (and Seller Parent, as applicable) shall use commercially reasonable efforts to cooperate with one another
with respect to the transfer or reissuance of the Assumed Permits, including executing any necessary forms as required.

 

6.4
Title Approval.

 

(a)
Within twenty (20) days after the execution of this Agreement, Seller will furnish to Purchaser for its review a commitment to
issue an ALTA owner’s title insurance policy in favor of Purchaser showing merchantable title of the Real Property in Seller, free
and clear of all Encumbrances other than Permitted Encumbrances. For any Real Property for which a survey is not available, Purchaser
may cause a survey to be conducted.

 

(b)
If the surveys or title examination show that good, marketable and merchantable title to the Real Property cannot be conveyed to
Purchaser or shows Encumbrances, then within ten (10) days after the receipt of the title commitment, Purchaser shall notify Seller in
writing of any matters that it objects to, and Seller shall, at its sole cost and expense, make a good faith effort to eliminate such
unacceptable matters to the reasonable satisfaction of Purchaser. In the event Seller is unable to satisfy any such objections within
thirty (30) days after receipt of the notice of the objection, Purchaser may, at its own option, (i) accept title subject to the objections,
or (ii) terminate this Agreement. If Purchaser proceeds with the Closing, any objection to the surveys or title examination that is not
previously waived or satisfied prior to the Closing Date shall be deemed to be waived as of the Closing Date.

 

6.5
Employment Matters.(a) As of immediately after the Closing, Purchaser may, in its sole discretion, offer employment to certain
Employees of Seller Parent (collectively, the “Transferred Employees”), subject to the satisfaction of Purchaser’s
customary pre-employment/post-offer procedures and qualifications, including any applicable drug screening, background checks and employment
authorization verification. Purchaser shall not be responsible for any salary or wage, severance obligation, employee benefit or health
insurance claims, accident or worker’s compensation injuries, claims or expenses accruing, paid or relating to the period prior
to the date any of such Transferred Employees may become employees of Purchaser, all of which shall continue to be owing by Seller Parent.
Without limiting the generality of the foregoing sentence, Seller Parent shall (i) provide all notices required under applicable
law to the Transferred Employees with respect to the transactions contemplated herein; and (ii) be and remain responsible for any
required compliance with respect to the Transferred Employees under the WARN Act (including the giving of any notice required thereunder),
any state or local laws regarding plant closing, layoffs or similar matters relating to periods prior to the Closing Date, and any notices
or compliance required under COBRA or similar state or local laws. The Parties agree that the liability for benefits accrued and claims
incurred under any of the Benefit Plans shall remain the responsibility of the Benefit Plans and Seller Parent. The Parties agree that
Purchaser shall have no Liability under any of the Benefit Plans, including, without limitation, benefits accrued or claims incurred under
such plans or with respect to the administration of the Benefit Plans. Seller Parent shall solely be responsible for the provision
of COBRA continuation coverage under Section 4980B of the Code or other applicable law to all Employees who are not Transferred Employees,
former Employees or their beneficiaries entitled to such continuation coverage under any Benefit Plan related to the operation of the
Site.

 

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6.6
Notification of Certain Matters. Seller shall give prompt notice to Purchaser, and Purchaser shall give prompt notice to
Seller, of (i) any notice or other communication from any Person alleging that the consent of such Person which is or may be required
in connection with the transactions contemplated by this Agreement or the Ancillary Documents is not likely to be obtained prior to Closing,
(ii) any written objection or proceeding that challenges the transactions contemplated herein, and (iii) the status of matters relating
to the completion of the transactions contemplated hereby, including promptly furnishing the other with copies of notices or other communications
received by Seller or Purchaser or by any of their respective Affiliates (as the case may be), from any third party and/or any Governmental
Body with respect to the transactions contemplated by this Agreement. Furthermore, Seller shall have the continuing obligation until the
Closing to disclose promptly to Purchaser any matter hereafter arising or discovered which, if existing or known at the date of this Agreement,
would have been required to be disclosed herein.

 

6.7
Confidentiality. The Parties hereby acknowledge and agree that the terms and conditions of the Confidentiality Agreement,
as has been and may be amended in writing by the Parties, are incorporated by reference herein. The Parties further acknowledge and agree
that the existence of this Agreement, and the terms and conditions set forth herein, shall be deemed “Confidential Information”
as that term is defined in the Confidentiality Agreement. Accordingly, except as may be required by Law, applicable rules of the SEC or
any stock exchange on which any Party lists securities, court Order or as otherwise agreed in writing, no Party shall, without the prior
written consent of the other Parties, release, publish or otherwise distribute (and shall not authorize or permit any other person or
entity to release, publish or otherwise distribute) any information concerning this Agreement or the transaction contemplated herein to
any person or entity other than the Parties’ respective legal and financial advisors, each of whom shall agree to hold such information
strictly confidential as if such persons were bound by the provisions of this Section 6.7.

 

6.8
Seller Documents. On the Closing Date, Seller shall deliver or cause to be delivered to Purchaser copies of the Documents
in its possession. Purchaser and Seller agree that Seller may maintain copies of any Documents that are included in the Purchased Assets
and that are delivered to Purchaser hereunder and Seller may prepare a comprehensive index and file plan of such Documents.

 

6.9
Publicity. No Party shall issue any press release or public announcement concerning this Agreement or the transactions contemplated
hereby without obtaining the prior written approval of the other Parties hereto, which approval will not be unreasonably withheld or delayed,
unless, in the sole judgment of any Party, disclosure is otherwise required by applicable Law or by the applicable rules of any stock
exchange on which any Party lists securities.

 

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6.10
 Material Adverse Effect. Purchaser and Seller shall promptly inform the other Party in writing of the occurrence of any
event that has had, or is reasonably expected to have, a Material Adverse Effect.

 

6.11
Casualty Loss. Notwithstanding any provision of this Agreement to the contrary, if, before the Closing, all or any portion
of the Purchased Assets is (a) condemned or taken by eminent domain, or (b) is damaged or destroyed by fire, flood or other casualty,
Seller shall notify Purchaser promptly in writing of such fact, (i) in the case of condemnation or taking, Seller shall assign or pay,
as the case may be, any proceeds thereof to Purchaser at the Closing, and (ii) in the case of fire, flood or other casualty, Seller shall
assign the insurance rights and proceeds therefrom to Purchaser at Closing, provided, however that any proceeds in excess
of the amounts allocated to such affected Purchased Assets in Section 8.2 herein will be property of and paid to the Seller; provided
further, that in either case (i) or (ii), any proceeds in excess of the Purchase Price will be property of and paid to the Seller.
Notwithstanding the foregoing, the provisions of this Section 6.11 shall not in any way modify Purchaser’s other rights under
this Agreement, including any applicable right to terminate the Agreement pursuant to Section 3.7 as a result of any condemnation,
taking, damage or other destruction.

 

6.12
Litigation Support. In the event that and for so long as Seller or any of its Affiliates is prosecuting, contesting or defending
any Action by a third party in connection with (a) the transactions contemplated under this Agreement, or (b) any fact, situation, circumstance,
status, condition, activity, practice, plan, occurrence, event, incident, action, failure to act, or transaction relating to, in connection
with or arising from the Business, the Site, Purchased Assets, Assumed Liabilities, Excluded Assets or Excluded Liabilities, Purchaser
shall, and shall cause its Affiliates (and its and their officers and employees) to, reasonably cooperate with Seller and its counsel
in such prosecution, contest or defenses, including making available its personnel, and providing such testimony and access to its books
and records, subject to confidentiality restrictions, as shall be reasonably necessary in connection with such prosecution, contest or
defense.

 

6.13
Payments. Seller shall, or shall cause its applicable Affiliate to, promptly pay or deliver to Purchaser (or its designated
Affiliates) any monies or checks exclusively related to the Business that have been sent to Seller or any of its Affiliates on or after
the Closing Date by customers, suppliers or other contracting parties of the Business to the extent that they are in respect of any Purchased
Assets or Assumed Liabilities hereunder. Purchaser shall, or shall cause its applicable Affiliate to, promptly pay or deliver to Seller
(or its designated Affiliates) any monies or checks that have been sent to Purchaser (including the Business) on or after the Closing
Date to the extent that they are not due to the Business or are in respect of an Excluded Asset or Excluded Liability hereunder.

 

6.14
Misallocated Assets. In the event that the Parties determine that certain assets, rights or properties which properly constitute
Purchased Assets were not transferred to Purchaser at Closing, subject to Section 6.3, Seller shall promptly take all steps reasonably
necessary to transfer and deliver any and all of such assets (and any Liability related to such assets that arose on or after the Closing
Date) to Purchaser without the payment by Purchaser of any further consideration therefor. In the event that the Parties determine that
certain Excluded Assets were transferred to Purchaser at Closing, then Purchaser
shall promptly take all steps reasonably necessary to transfer and deliver any and all of such Excluded Assets (and any related Liability)
to Seller without the payment by Seller of any further consideration therefor.

 

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6.15
Documents. Purchaser and Seller agree that Seller may maintain copies of any Documents that are included in the Purchased
Assets and that are delivered to Purchaser hereunder and Seller may prepare a comprehensive index and file plan of such Documents.

 

6.16
Names Following Closing. Neither Purchaser nor any of its Affiliates shall use, or have the right to use the “Pacific
Ethanol,” “Kinergy,” “Pacific Ethanol Madera,” “Illinois Corn Processing,” “ICP,”
“Driven by Demand” or “Pacific Ag” names or marks, the corn kernel and sun logo, or any other name or mark owned
or controlled by Seller or any of its Affiliates, or any name or mark that is similar to, derived from or embodies any of the foregoing.

 

6.17
Insurance. From and after the Closing, the Business, the Transferred Employees, the Purchased Assets, the Assumed Liabilities,
shall cease to be insured by Seller’s or its Affiliates’ insurance policies or by any of their self-insured programs, and
neither Purchaser nor its Affiliates (including the Business) shall have any access, right, title or interest to or in any such insurance
policies (including to all claims and rights to make claims and all rights to proceeds) to cover the Business, the Transferred Employees,
the Purchased Assets, the Assumed Liabilities. Seller or its Affiliates may amend any insurance policies in the manner it deems appropriate
to give effect to this Section 6.17. From and after the Closing, Purchaser shall be responsible for securing all insurance it considers
appropriate for the Business, the Transferred Employees (as applicable), the Purchased Assets, the Assumed Liabilities, and the operations
and assets and Liabilities in respect thereof. Purchaser further covenants and agrees not to seek to assert or to exercise any rights
or claims of, or in respect of, the Business, the Transferred Employees, the Purchased Assets, the Assumed Liabilities, under or in respect
of any past or current insurance policy under which any of the foregoing is a named insured.

 

6.18
Termination of Intercompany Arrangements. Immediately prior to the Closing, except for the Ancillary Agreements and any
cooperation reasonably necessary to effectuate the transfer of Assigned Contracts and/or the transfer or reissuance of Permits as provided
in Section 6.3, all arrangements, understandings or Contracts, including all obligations to provide goods, services or other benefits,
between Seller and its Affiliates, on the one hand, and the Business, on the other hand, shall automatically be terminated without further
payment or performance and cease to have any further force and effect, such that no party thereto shall have any further obligations therefor
or thereunder.

 

6.19
No Solicitation of Other Bids; Exclusivity. From the date hereof and continuing until the earlier of the termination of
this Agreement or the Closing Date, neither Seller nor any of its members, officers, agents or other representatives, will discuss, negotiate
or deal with any other corporation, firm, or other Person, or entertain, solicit, accept or consider any inquiries, offers or proposals
relating to the possible sale of any of the Purchased Assets, or furnish any non-public information to any party other than Purchaser
relating to Seller, the Purchased Assets or the operation of the Site, except in the Ordinary Course of Business.

 

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6.20
 Seller Parent Letter of Credit. At the Closing, Seller shall, at its cost, deliver to Purchaser the Seller Parent Letter
of Credit. Seller shall cause the Seller Parent Letter of Credit to remain in full force and effect in accordance with its terms and with
this Section 6.20. The Seller Parent Letter of Credit shall expire, and Purchaser shall cooperate to implement such expiry, upon
the date that is fifteen (15) months and twenty (20) days after the Closing Date (the “Expiry Date”), at which
such time Purchaser shall return the Seller Parent Letter of Credit to Seller; provided, however, (A) if there are no pending
Claims pursuant to Section 9.3 (each, a “Pending Claim”) that remain outstanding as of the date that
is fifteen (15) months after the Closing Date (the “Survival Expiration Date”), then Purchaser shall cooperate
to implement expiry of the Seller Parent Letter of Credit as soon as practicable after such Survival Expiration Date; and (B) if any Pending
Claims remain outstanding on the Survival Expiration Date, the Seller Parent Letter of Credit shall be renewed or replaced with a letter
of credit in an amount equal to the aggregate amount of the remaining Seller Parent Letter of Credit existing on the Survival Expiration
Date from an Acceptable Bank (the “Replacement Letter of Credit”), until all such Pending Claims have been satisfied
or otherwise resolved. Such Replacement Letter of Credit shall be delivered to Purchaser by the date that is ten (10) days prior to the
Expiry Date. In the event such Replacement Letter of Credit is not delivered to Purchaser by such date, then Purchaser shall have the
right to draw on the Seller Parent Letter of Credit pursuant to the terms thereof the amount of the Pending Claims, in which case Purchaser
shall retain such drawn funds until the Pending Claims are resolved pursuant to the terms hereof.

 

6.21 CARB Compliance.
Within five (5) Business Days of Purchaser’s notice to Seller of the establishment of Purchaser’s Compliance Instrument Tracking
System Services (“CITSS”) account, Seller shall purchase, transfer, and supply to Purchaser all Environmental
Attributes sufficient for Purchaser, on behalf of Seller, or the Site to meet Seller’s reporting, verification, allowance, and
all other compliance requirements under CARB’s regulations and requirements associated with the California Cap-and-Trade Program
and the California Regulation for the Mandatory Reporting of Greenhouse Gas Emissions related to the period of time Seller owned the
Site, free and clear of all Encumbrances (the “CARB Attributes”) (such reporting, verification, allowance,
and compliance requirements, the “CARB Compliance Requirements”); provided, however, that Seller shall
make best efforts prior to Closing to complete all CARB Compliance Requirements so as to eliminate or minimize Purchaser’s obligations
under this Section 6.21, including, but not limited to, correcting reporting errors and purchasing Environmental Attributes to
sufficiently fund Seller’s CITSS account. At the Closing, Seller shall identify the type and number of CARB Attributes to be transferred
from a compliance account under Seller’s CITSS account to Purchaser’s CITSS account (to be established after Closing), accounting
for any remaining balance(s) of annual compliance obligations from previous years, any remaining balance(s) of previous compliance periods
and any over-allocation assessed by the responsible reporting agency. If Purchaser, on behalf of Seller, or the Site owes Environmental
Attributes in excess of the Environmental Attributes Seller submitted or surrendered to CARB or transferred to Purchaser for the years
related to the period of time Seller owned the Site, Seller shall purchase, transfer and supply to Purchaser within ten (10) days of
Purchaser’s notice to Seller additional Environmental Attributes to satisfy the CARB Compliance Requirements. If Seller transfers
to Purchaser Environmental Attributes in excess of the amount Purchaser, on behalf of Seller, or the Site needs to meet Seller’s
CARB Compliance Requirements, Purchaser shall transfer back to Seller’s CITSS account such excess Environmental Attributes promptly
after Purchaser determines the amount of such excess Environmental Attributes. Within ten (10) Business Days following the Closing and
at any other time as requested by CARB or Purchaser, Seller shall provide to Purchaser accurate and complete information, including all
identification numbers, accounts and Documents necessary to satisfy the CARB Compliance Requirements related to the period of time Seller
owned the Site. Seller shall bear all costs, fees, and expenses incurred by Purchaser in connection with the CARB Compliance Requirements
related to the period of time Seller owned the Site, including, but not limited to, reasonable consultant fees incurred to assist with
satisfying the CARB Compliance Requirements; provided, however, that Seller shall not bear any costs, fees, or expenses with respect
to any CARB Compliance Requirements that arise as a result of any action or inaction on the part of Purchaser that results in any unreasonable
increase in such costs, fees or expenses. In accordance with Section 9.3(b) of this Agreement, Seller shall defend and indemnify
Purchaser for any Losses, including, but not limited to, penalties and enforcement by CARB related to or arising from the CARB Compliance
Requirements.

 

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6.22
Equipment Removal. Within sixty (60) days after the Closing (or such later period as mutually agreed in writing by Seller
and Purchaser), Seller will, and will cause its Affiliates and/or third party contractors to remove the Whitefox Technologies Limited
equipment located on the Site, including the structure which consists of two prefabricated process assemblies and a dedicated power distribution
building (the “Equipment Removal”). Seller shall minimize any disruption to Purchaser or the operation of the
Site at all times until completion of the Equipment Removal. Seller shall be responsible for procuring and supervising all labor, including
any third party contractors, required in connection with the Equipment Removal. Seller shall bear all costs incurred in connection with
the Equipment Removal. If Seller does not complete the Equipment Removal within sixty (60) days of Closing (or such later period as mutually
agreed in writing by Seller and Purchaser), Purchaser may complete the Equipment Removal at its sole cost and Seller shall reimburse Purchaser
for any such costs incurred in connection with Purchaser’s completion of the Equipment Removal. In connection with its obligations
under this Section 6.22, Seller shall require all personnel engaged by Seller to perform the Equipment Removal to comply with all
applicable Laws and any applicable rules and protocols reasonably prescribed by Purchaser for the Site, as in effect from time to time.
Seller understands and agrees that Purchaser has the right to deny access to the Site to any such personnel that Purchaser reasonably
believes are not in compliance with the foregoing or present a hazard or a material disruption to the Site. Seller shall, and shall cause
its contractors to, execute and deliver such agreements or acknowledgments in favor of Purchaser with respect to the access granted to
Seller or its personnel in connection with the performance of the Equipment Removal, as may be reasonably requested by Purchaser from
time to time. Seller shall, and shall cause it contractors performing the Equipment Removal to, carry and maintain insurance with coverages
and amounts reasonably required by Purchaser from time to time.

 

6.23 Materials
Removal. Prior to the Closing, Seller will (i) inspect, sweep clean, remove and properly dispose or reuse all materials
contained within the following above ground storage tanks located on the Site: sulfuric acid tank (TK-7702), caustic tank (TK-7701),
urea tank (TK-7704) and the corn oil tanks and (ii) drain and properly dispose of all materials within all connecting lines and
pipes to the above ground storage tanks referenced immediately above, each in compliance with all Environmental Laws and in
accordance with prudent industry practice (collectively, the “Materials Removal”); provided,
however, that in the event that the removal of the materials contained in the urea tank (TK-7704) and within any related
connecting lines and pipes (collectively, the “Urea Tank Materials Removal”) is not completed prior to the
Closing, Seller and Purchaser agree that the Urea Tank Materials Removal shall be completed on or prior to June 15, 2021. To the
extent the Urea Tank Materials Removal is not completed prior to the Closing, Seller shall minimize any disruption to Purchaser or
the operation of the Site at all times until completion of such Urea Tank Materials Removal. Seller shall be responsible for
procuring and supervising all labor, including any third-party contractors, required in connection with the Materials Removal.
Seller shall bear all costs incurred in connection with the Materials Removal. If Seller does not complete the Urea Tank Materials
Removal by June 15, 2021 (or such later period as mutually agreed in writing by Seller and Purchaser), Purchaser may complete the
Urea Tank Materials Removal at its sole cost and Seller shall reimburse Purchaser for any such costs incurred in connection with
Purchaser’s completion of the Urea Tank Materials Removal. In connection with its obligations under this Section 6.23,
Seller shall require all personnel, contractors, transporters, and other representatives engaged by Seller to perform the Materials
Removal to comply with all applicable Laws, including Environmental Laws, and any applicable rules and protocols reasonably
prescribed by Purchaser for the Site, as in effect from time to time. Seller understands and agrees that in connection with the
performance of the Urea Tank Materials Removal Purchaser has the right to deny access to the Site to any such personnel that
Purchaser reasonably believes are not in compliance with the foregoing or present a hazard or a material disruption to the Site.
Seller shall, and shall cause its contractors to, execute and deliver such agreements or acknowledgments in favor of Purchaser with
respect to the access granted to Seller or its personnel, contractors, transporters, and other representatives in connection with
the performance of the Urea Tank Materials Removal, as may be reasonably requested by Purchaser from time to time. Seller shall, and
shall cause it contractors performing the Urea Tank Materials Removal to, carry and maintain insurance with coverages and amounts
reasonably required by Purchaser from time to time. Seller further acknowledges that other above-ground storage tanks on the Site,
including the connecting lines and pipes, shall be emptied and contain no liquid material prior to the Closing Date. Such
above-ground storage tanks shall include, but not be limited to, the following: TK-6101, TK-6102, TK-6104A, TK-6104B, TK-6105 and
TK-6106.

 

6.24
Further Assurances. From time to time, as and when requested by any Party hereto, the other Party shall execute and deliver,
or cause to be executed and delivered, all such documents and instruments and shall take, or cause to be taken, all such further or other
actions, as such other Party may reasonably deem necessary or desirable to consummate the transactions contemplated by, or give effect
to the agreements set forth in, this Agreement or any of the Ancillary Documents.

 

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Article
VII.

CONDITIONS TO CLOSING

 

7.1 Conditions
Precedent to the Obligations of Purchaser and Seller. The respective obligations of each Party to this Agreement to consummate
the transactions contemplated by this Agreement are subject to the requirement (or to the extent permitted by Law, written waiver by
each of Seller and Purchaser) on or prior to the Closing Date, that there shall not be in effect any order, writ, injunction,
judgment or decree entered by a Governmental Body of competent jurisdiction, or any Law preventing, enjoining, restraining, making
illegal or otherwise prohibiting the consummation of the transactions contemplated by this Agreement or the Ancillary Documents.

 

7.2
Conditions Precedent to the Obligations of Seller. The obligations of Seller to consummate the transactions contemplated
by this Agreement are subject to the fulfillment, on or prior to the Closing Date, of each of the following conditions, any of which may
be waived in writing by Seller in its sole discretion:

 

(a)   
the representations and warranties made by Purchaser in this Agreement or in any Ancillary Document shall be true and correct in
all material respects, in each case as of the Agreement Date and as of the Closing Date, with the same force and effect as though all
such representations and warranties had been made as of the Closing Date (other than representations and warranties that by their terms
address matters only as of another specified date, which shall be so true and correct only as of such other specified date);

 

(b)   
Purchaser shall have performed and complied in all material respects with all obligations and agreements required by this Agreement
to be performed or complied with by Purchaser on or prior to the Closing Date; and

 

(c)   
Purchaser shall have delivered, or caused to be delivered, to Seller all of the deliverables set forth in Section 3.6.

 

7.3
Conditions Precedent to the Obligations of Purchaser. The obligations of Purchaser to consummate the transactions contemplated
by this Agreement are subject to the fulfillment, on or prior to the Closing Date, of each of the following conditions, any of which may
be waived in writing by Purchaser in its sole discretion:

 

(a)   
the representations and warranties made by Seller in this Agreement or in any Ancillary Document shall be true and correct in all
material respects, in each case as of the Agreement Date and as of the Closing Date, with the same force and effect as though all such
representations and warranties had been made as of the Closing Date (other than representations and warranties that by their terms address
matters only as of another specified date, which shall be so true and correct only as of such other specified date);

 

(b)   
Seller shall have performed and complied in all material respects with all obligations and agreements required in this Agreement
to be performed or complied with by it on or prior to the Closing Date;

 

(c)   
the Title Company shall have issued to Purchaser an ALTA owner’s title insurance policy respecting the Real Property in the
amount of $19,000,000 (the “Title Policy”), insuring Purchaser that Seller is the owner of good and marketable
title to the Real Property free and clear of all Encumbrances, other than Permitted Encumbrances, with all general exceptions other than
survey exceptions (unless Purchaser has obtained and delivered a survey) deleted and including such endorsements as Purchaser shall reasonably
request;

 

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(d)   
 Seller shall have received the waivers, consents and approvals specified on Section 4.4 of the Disclosure Schedule, and
no such waiver, consent or approval shall have been revoked;

 

(e)   
Seller shall have terminated authorization or Permits issued by the Alcohol and Tobacco Tax and Trade Bureau related to the storage
and sale of ethanol, including but not limited to Permit Number AFP-CA-15046 and any distilled spirits permit or permit application;

 

(f)   
Seller shall have terminated, closed or taken other action with respect to the Permits listed on Section 4.13(a) of the Disclosure
Schedule; 

 

(g)   
Seller shall have returned the cooling tower pump, currently being stored at Seller’s Boardman facility, to the Site;

 

(h)   
Purchaser shall have completed its Due Diligence within the Due Diligence Period, with the results of such Due Diligence satisfactory
to Purchaser;

 

(i)
Purchaser (or any representatives thereof) shall have had the opportunity to conduct a Site visit together with Seller no later
than two (2) Business Days prior to the Closing Date and Purchaser shall be satisfied that the Purchased Assets remaining on the Site
and subject to this Agreement are substantially the same as to what was located on the Site or Real Property as of September 30, 2020;
and

 

(j)
Seller shall have delivered, or caused to be delivered, to Purchaser, all of the items set forth in Section 3.5.

 

Article
VIII.

TAXES

 

8.1
Certain Taxes.

 

(a)   
Any sales Taxes and any use, purchase, transfer, franchise, deed, fixed asset, stamp, documentary stamp or other Taxes and recording
charges, which may be payable by reason of the sale of the Purchased Assets or the assumption of the Assumed Liabilities under this Agreement
or the transactions contemplated hereby, shall be borne and timely paid one-half (1/2) by Purchaser and one-half (1/2) by Seller. Seller
shall, at its own expense, timely file any Tax Return or other document required to be filed with respect to such Taxes, and Purchaser
shall join in the execution of any such Tax Return if required by Law.

 

(b)   In
the case of any taxable period that begins before, and ends after, the Closing Date (a “Straddle Period”),
any real property, general and special city and/or county (including Madera County California real property Taxes), personal
property, ad valorem and similar Taxes allocable to the portion of such Straddle Period ending with the end of the day on the
Closing Date shall be equal to the amount of such Taxes for the entire Straddle Period multiplied by a fraction, the numerator of
which is the number of days during the Straddle Period that is in the Pre-Closing Tax Period and the denominator of which is the
number of days in the entire Straddle Period. At Closing, such taxes shall be prorated based upon 100% of the amount of such taxes
for the 2020-2021 tax year, which proration shall be a final settlement between Purchaser and Seller. Any such prorated amount that
is allocated to Seller shall reduce the Closing Cash Payment, and Purchaser shall be responsible for, and shall pay when due, all
such Taxes for the portion of the Straddle Period prior to Closing.

 

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8.2
Allocation of Purchase Price. Purchaser and Seller agree that the final Purchase Price and the Assumed Liabilities (plus
other relevant items for income Tax purposes) shall be allocated (the “Asset Allocation”) among the Purchased
Assets for all income Tax purposes in accordance with the methodology provided on the allocation schedule attached hereto as Schedule
8.2 (the “Allocation Schedule”). Purchaser and Seller acknowledge and agree that the Allocation Schedule
has been prepared in accordance with Section 1060 of the Code and the Treasury Regulations promulgated thereunder. Within thirty (30)
days of the Closing Date, Seller shall provide to Purchaser the Asset Allocation, which shall be prepared consistent with the Allocation
Schedule. Purchaser and Seller agree (A) to prepare and timely file all income Tax Returns, including, but not limited to IRS Form 8594
(and all supplements thereto) in a manner consistent with the Asset Allocation and (B) in the course of any examination, audit or other
Action with respect to any income Tax Return or income Tax, take no position, and cause its Affiliates to take no position, inconsistent
with the Asset Allocation for income Tax purposes, unless required by applicable Law; provided, however, that (i) Purchaser’s
cost for the Purchased Assets may differ from the total amount allocated thereunder to reflect the inclusion in the total cost of items
(for example, capitalized acquisition costs) not included in the total amount so allocated and (ii) the amount realized by Seller may
differ from the total amount allocated thereunder to reflect transaction costs that reduce the amount realized for income Tax purposes.
In the event of a dispute resulting from a claim that the Asset Allocation is inconsistent with the Allocation Schedule, Purchaser and
Seller shall work in good faith to resolve any such disputed items. In the event that any Governmental Body disputes the allocation set
forth in the Asset Allocation, the affected party shall promptly notify the other party of the nature of such dispute, and shall cooperate
in good faith to preserve the effectiveness of the allocation, to the extent consistent with applicable Law and the final decisions of
such Governmental Body. The Asset Allocation shall be updated to reflect any subsequent adjustments to the final Purchase Price (pursuant
to this Agreement) in a manner consistent with the Allocation Schedule, and there shall be no other revisions to the Asset Allocation
unless required by applicable Law.

 

8.3
Cooperation on Tax Matters. Purchaser and Seller agree to provide each other with such information and assistance as is
reasonably necessary, including reasonable access to records, Tax Returns and personnel, for the preparation of any Tax Returns or for
the defense of any Tax claim or assessment, whether in connection with a Tax Proceeding or otherwise. The Parties hereby waive compliance
with the provisions of any bulk sales, bulk transfer or similar Laws of any jurisdiction that may otherwise be applicable with respect
to the sale of any or all of the Purchased Assets to Purchaser.

 

8.4 FIRPTA
Certificate. Seller shall deliver to Purchaser on the Closing Date a properly executed affidavit of non-foreign status,
reasonably satisfactory to Purchaser, that complies with Section 1445 of the Code and Section 1.1445-2(b)(2) of the Treasury
Regulations (the “FIRPTA Certificate”).

 

8.5
 Tax Treatment of Indemnification Payments. All indemnification payments made under this Agreement shall be treated by the
parties as an adjustment to the Purchase Price for Tax purposes, unless otherwise required by applicable Law.

 

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Article
IX.

INDEMNIFICATION

 

9.1
Survival.

 

(a)   
The representations and warranties of the Parties contained in this Agreement shall survive the Closing for a period of fifteen
(15) months from the Closing Date and shall expire thereafter; provided, however, that (i) each of the Seller Fundamental Representations
and Purchaser Fundamental Representations shall survive the Closing until expiration of the applicable statute of limitations and (ii)
the representations and warranties contained in Section 4.12 (Environmental Matters) shall survive the Closing for a period of
thirty (30) months from the Closing Date. Notwithstanding the foregoing, any representation or warranty that would otherwise expire in
accordance with this Section 9.1 that is the subject of a Third-Party Claim Notice or a Direct Claim Notice that has been timely
given after the Closing Date under Section 9.5(a) or Section 9.5(b), respectively, within the survival period specified
in this Section 9.1 will survive until, but only for the purposes of, the related claim for indemnification set forth in such notice
has been satisfied or otherwise resolved as provided in Section 9.5(a) or Section 9.5(b).

 

(b)   
All covenants and agreements that by their terms are to be performed at or prior to Closing shall not survive the Closing; provided,
however, that the covenants and agreements that contemplate actions to be taken or not taken or obligations in effect after the
Closing shall survive in accordance with their terms.

 

(c)   
Any claim or notice thereof under this Article IX required to be made on or prior to the expiration of the applicable survival
period set forth in this Article IX and not made, or notice thereof not provided, on or prior to such expiration as described herein
shall be irrevocably and unconditionally released and waived by the party seeking indemnification with respect thereto. It is the express
intent of the Parties that, if the applicable period for an item as contemplated by this Article IX is shorter than the statute
of limitations that would otherwise have been applicable to such item, then, by contrast the applicable statute of limitations with respect
to such item shall be reduced to the shortened survival period contemplated hereby.

 

9.2
Indemnification by Purchaser. Subject to the other provisions of this Article IX, from and after the Closing, Purchaser
shall indemnify the Seller Indemnified Parties for any and all Losses which any Seller Indemnified Parties may suffer or incur to the
extent arising out of or related to:

 

(a)   
any breach of or inaccuracy in any representation or warranty of the Purchaser contained in Article V of this Agreement;

 

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(b)   
 any breach by Purchaser of, or failure by Purchaser to perform, any of its covenants or other agreements set forth in this Agreement;
and

 

(c)   
the Assumed Liabilities.

 

9.3
Indemnification by Seller and Seller Parent. Subject to the other provisions of this Article IX, from and after the
Closing, Seller and Seller Parent shall, jointly and severally, indemnify the Purchaser Indemnified Parties for any and all Losses which
any Purchaser Indemnified Parties may actually suffer or incur to the extent arising out of or related to:

 

(a)   
any breach of or inaccuracy in any warranty or representation of Seller or Seller Parent contained in Article IV of this
Agreement;

 

(b)   
any breach by Seller or Seller Parent of, or failure by the Seller or Seller Parent to perform, any of their respective covenants
or other agreements set forth in this Agreement; and

 

(c)   
the Excluded Liabilities.

 

9.4
Limitations on Indemnification. Notwithstanding anything to the contrary contained in this Agreement, the indemnity obligations
of Seller under this Article IX shall be limited as follows:

 

(a)   
no indemnity shall be payable by Seller or Seller Parent under Section 9.3(a) until and only to the extent that the aggregate
amount of Losses exceeds $150,000; and

 

(b)   
Seller and Seller Parent shall have no further indemnity obligations under Section 9.3(a) once the aggregate amount of Losses
paid by Seller and/or Seller Parent equals $2,000,000; provided, however, that the limitation contained in this Section 9.4(b)
shall not apply to any Seller Fundamental Representations.

 

9.5
Claims for Indemnification. All claims for indemnification by any Indemnified Party shall be asserted and resolved as set
forth in this Section 9.5:

 

(a)   
Third-Party Claims.

 

(i) In the event
that any written claim or demand for which, in the reasonable determination of the Indemnified Party, an Indemnifying Party may be liable
to any Indemnified Party hereunder is asserted against or sought to be collected from any Indemnified Party by a third party (which,
for purposes of this Article IX, shall mean any party that is not a Seller Indemnified Party or Purchaser Indemnified Party),
such Indemnified Party shall promptly, but in no event later than thirty (30) days following such Indemnified Party’s receipt of
such claim or demand (including a copy of any related written third party demand, claim or complaint) (a “Third Party-Claim”)
deliver a written notification of the Third-Party Claim, describing in reasonable detail the nature of and basis for such Third-Party
Claim, together with the amount or, if not then reasonably determinable, the estimated amount, determined in good faith, of the Losses
arising from such Third-Party Claim, and such other information as the Indemnifying Party may reasonably request (“Third-Party
Claim Notice”). Notwithstanding the foregoing, the Indemnifying Party shall not be relieved of its obligations to indemnify
the Indemnified Party with respect to such Third-Party Claim if the Indemnified Party fails to timely deliver the Third-Party Claim Notice
except to the extent that such failure materially or adversely prejudices the rights of the Indemnifying Party.

 

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(ii)
Within thirty (30) days after receipt by the Indemnifying Party of a Third-Party Claim Notice, such Indemnifying Party may deliver
to the Indemnified Party a written response (the “Response Notice”) in which such Indemnifying Party: (i) agrees
that the Indemnified Party is entitled to the full amount of the Third-Party Claim as set forth in the Third-Party Claim Notice, (ii)
agrees that the Indemnified Party is entitled to part, but not all, of the full amount of the Third-Party Claim as set forth in the Third-Party
Claim Notice (such amount agreed to under (i) or (ii), the “Agreed Amount”), or (iii) indicates that the Indemnifying
Party disputes the entire full amount of the Third-Party Claim as set forth in the Third-Party Claim Notice. Any part of the full amount
of the Third-Party Claim as set forth in the Third-Party Claim Notice that is not agreed to pursuant to the Response Notice shall be the
“Contested Amount.” If a Response Notice is not received within such thirty (30) day period, then the Indemnifying
Party shall be conclusively deemed to have agreed that the Indemnified Party is entitled to the full amount of the Third-Party Claim as
set forth in the Third-Party Claim Notice (and such amount shall be the Agreed Amount). If the Parties are unable to resolve the dispute
relating to any Contested Amount within thirty (30) days after the delivery of the Response Notice, then the Parties shall be entitled
to resort to any legal remedy available to such Parties, subject to the terms of this Agreement, to resolve such dispute including obtaining
a final and non-appealable order of any court of competent jurisdiction directing the Indemnifying Party to pay the Indemnified Party
all or a portion of the Contested Amount (the “Final Contested Amount”). The Indemnifying Party shall pay any
Agreed Amount and/or any Final Contested Amount within five (5) Business Days after determination thereof, it being understood that the
Indemnified Party shall be entitled to draw upon the Seller Parent Letter of Credit for any Agreed Amounts and/or Final Contested Amounts
owed to the Indemnified Party by the Indemnifying Party in connection with any Indemnification Claims pursuant to Section 9.1 and
this Section 9.5(a)(ii) within five (5) Business Days after determination of such Agreed Amount and/or Final Contested Amount.

 

(iii)   If
a Third-Party Claim is made against an Indemnified Party, the Indemnifying Party shall be entitled to participate therein and, to
the extent that the Indemnifying Party shall wish, to assume the defense thereof at the Indemnifying Party’s own expense; provided,
however, that the Third-Party Claim involves only monetary damages and (i) does not seek an injunction or other equitable relief
against the Indemnified Party, (ii) does not, in the good faith judgment of the Indemnified Party, based on the advice of counsel,
involve a conflict of interest or (iii) the amount of monetary Losses sought in connection with such Third-Party Claim (when
combined with all other outstanding claims for indemnification) is not reasonably likely to exceed the remaining amount the
Indemnified Party would be entitled to recover from the Indemnifying Party pursuant to this Article IX as a result of the
limitations set forth herein. After written notice from the Indemnifying Party to the Indemnified Party of such election to so
assume the defense thereof, the Indemnifying Party shall not be liable to the Indemnified Party for any legal expenses of other
counsel or any other expenses subsequently incurred by the Indemnified Party in connection with the defense thereof; provided,
however, that in the event the Indemnifying Party fails to actively and diligently conduct the defense of such Third-Party
Claim, then in such event, upon twenty (20) days’ notice during which time such failure to so conduct the defense of such
Third-Party Claim is not cured, the Indemnified Party may hire separate counsel, and reasonable fees and expenses of such counsel
shall be borne by the Indemnifying Party. If the Indemnifying Party assumes the defense and control of a Third-Party Claim as
provided in this Section 9.5(a)(ii), the Indemnified Party shall have the right to participate in the defense of any
Third-Party Claim with its own counsel and at its own expense.

 

(iv)
If the Indemnifying Party assumes the defense of any Third-Party Claim as provided herein, the Indemnified Party shall not settle
such Third-Party Claim unless the Indemnifying Party consents in writing (which consent shall not be unreasonably withheld, conditions
or delayed). If the Indemnifying Party assumes the defense of any Third-Party Claim as provided herein, the Indemnifying Party shall not,
without the prior written consent of the Indemnified Party (which may be withheld in the Indemnified Party’s sole discretion), enter
into any settlement or compromise or consent to the entry of any judgment with respect to such Third-Party Claim unless such settlement,
compromise or judgment (x) includes an unconditional release of the Indemnified Party and its Affiliates from all Liability on claims
that are the subject matter of such Third-Party Claim and (y) does not impose equitable remedies or any obligation on the Indemnified
Party or any of its Affiliates other than solely the payment of money damages for which the Indemnified Party will be indemnified in full
hereunder. If the Indemnified Party is conducting the defense of any Third-Party Claim, the Indemnified Party shall not settle such Third-Party
Claim without the prior written consent of the Indemnifying Party (such consent not to be unreasonably withheld, conditioned or delayed).

 

(v)   
In the event that the Indemnifying Party does not elect to assume the defense of any Third-Party Claim, then (a) the Indemnified
Party shall have the right to undertake the defense of such Third-Party Claim; and (b) any failure of the Indemnified Party to defend
or to participate in the defense of any such Third-Party Claim shall not relieve the Indemnifying Party of its obligations hereunder or,
notwithstanding any other provision of this Agreement, otherwise impose an obligation to defend the Indemnified Party hereunder.

 

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(vi) Each Party
shall cooperate in the defense of any Third-Party Claim, including by delivering copies of all written notices and documents
received from the third party relating to such Third-Party Claim and by providing without expense (other than reimbursement of
actual out-of-pocket expenses) such books and records, personnel and witnesses as may be reasonably requested in connection
therewith (subject to confidentiality restrictions).

 

(b)   
Direct Claims.

 

(i)
In the event any Indemnified Party determines that it may have a claim under Section 9.2 or Section 9.3 against any
Indemnifying Party that does not involve a Third-Party Claim (the “Direct Claim”), the Indemnified Party shall
promptly deliver a written notification to the Indemnifying Party describing in reasonable detail the nature of and basis for such claim,
together with the amount or, if not then reasonably determinable, the estimated amount, determined in good faith, of the Losses arising
from such claim (the “Direct Claim Notice”). Notwithstanding the foregoing, the Indemnifying Party shall not
be relieved of its obligations to indemnify the Indemnified Party with respect to a Direct Claim if the Indemnified Party fails to timely
deliver the Direct Claim Notice except to the extent that such failure materially or adversely prejudices the rights of the Indemnifying
Party.

 

(ii)
Within thirty (30) days after receipt by the Indemnifying Party of a Direct Claim Notice, such Indemnifying Party may deliver to
the Indemnified Party a written response (the “Direct Claim Response Notice”) in which such Indemnifying Party:
(i) agrees that the Indemnified Party is entitled to the full amount of the Direct Claim as set forth in the Direct Claim Notice, (ii)
agrees that the Indemnified Party is entitled to part, but not all, of the full amount of the Direct Claim as set forth in the Direct
Claim Notice (such amount agreed to under (i) or (ii), the “Direct Claim Agreed Amount”), or (iii) indicates
that the Indemnifying Party disputes the entire full amount of the Direct Claim as set forth in the Direct Claim Notice. Any part of the
full amount of the Direct Claim as set forth in the Direct Claim Notice that is not agreed to pursuant to the Direct Claim Response Notice
shall be the “Direct Claim Contested Amount.” If a Direct Claim Response Notice is not received within such
thirty (30) day period, then the Indemnifying Party shall be conclusively deemed to have agreed that the Indemnified Party is entitled
to the full amount of the Direct Claim as set forth in the Direct Claim Notice (and such amount shall be the Direct Claim Agreed Amount).
If the Parties are unable to resolve the dispute relating to any Direct Claim Contested Amount within thirty (30) days after the delivery
of the Direct Claim Response Notice, then the Parties shall be entitled to resort to any legal remedy available to such Parties, subject
to the terms of this Agreement, to resolve such dispute including obtaining a final and non-appealable order of any court of competent
jurisdiction directing the Indemnifying Party to pay the Indemnified Party all or a portion of the Direct Claim Contested Amount (the
“Final Direct Claim Contested Amount”). The Indemnifying Party shall pay any Direct Claim Agreed Amount within
five (5) Business Days after determination thereof, it being understood that the Indemnified Party shall be entitled to draw upon the
Seller Parent Letter of Credit for any Direct Claim Agreed Amounts and/or Final Direct Claim Contested Amounts owed to the Indemnified
Party by the Indemnifying Party in connection with any Indemnification Claims pursuant to Section 9.1 and this Section 9.5(b)(ii)
within five (5) Business Days after determination of such Direct Claim Agreed Amount and/or Final Direct Claim Contested Amount.

 

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9.6
 Tax Effect. The amount of any Losses that are subject to any indemnification obligation of an Indemnifying Party under
this Agreement shall be adjusted so as to give effect to any net reduction in federal, state, local or foreign income or franchise tax
liability accrued or realized (either by decrease in Taxes paid or increase in a refund due) at any time by the Indemnified Party in connection
with the satisfaction by the Indemnifying Party of any such indemnification obligation.

 

9.7
Calculation of Indemnification Payments.

 

(a)   
If any Purchaser Indemnified Party is entitled to indemnification pursuant to this Article IX, subject to the applicable
limitations contained in this Article IX, including Section 9.4, the Losses indemnifiable thereunder shall be satisfied
first from the Seller Parent Letter of Credit, and, to the extent the funds available under the Seller Parent Letter of Credit are not
sufficient, Seller and/or Seller Parent shall pay such amounts directly to such Purchaser Indemnified Party (or its designee) by wire
transfer of immediately available funds within five (5) Business Days after the final determination hereof to an amount designated by
the applicable Purchaser Indemnified Party.

 

(b)   If
any Losses sustained by an Indemnified Party are covered by an insurance policy or an indemnification, contribution, warranty,
refund or similar obligation of another Person (other than an Affiliate of such Indemnified Party), the Indemnified Party shall use
commercially reasonable efforts to collect such insurance proceeds or indemnity, contribution, warranty, refund or similar payments.
If the Indemnified Party receives such insurance proceeds or indemnity, contribution, warranty, refund or similar payments prior to
being indemnified under Section 9.2 or Section 9.3, as applicable, with respect to such Losses, the payment by an
Indemnifying Party under this Article IX with respect to such Losses shall be reduced by the net amount of such insurance
proceeds or indemnity, contribution, warranty, refund or similar payments to the extent related to such Losses, less
reasonable attorney’s fees and other expenses incurred in connection with such recovery. If the Indemnified Party receives
such insurance proceeds or indemnity, contribution, warranty or similar payments after being indemnified by an Indemnifying Party
with respect to such Losses, the Indemnified Party shall pay to the Indemnifying Party the net amount of such insurance proceeds or
indemnity, contribution, warranty or similar payment to the extent related to such Losses, less reasonable attorney’s
fees and other expenses incurred in connection with such recovery. If any Indemnified Party receives payment for Losses under this Article
IX on account of a claim that an Indemnifying Party believes in good faith is covered by an insurance policy or an
indemnification, contribution, warranty, refund or similar obligation of another Person (other than an Affiliate of such Indemnified
Party), that Indemnified Party shall (i) on written request of the Indemnifying Party assign, to the extent assignable and to the
extent that Indemnified Party does not in good faith dispute such written request, its rights under such insurance policy or
indemnification, contribution or similar obligation with respect to such claim to the Indemnifying Party up to the amount of Losses
claimed by the Indemnified Party hereunder and (ii) be relieved of any further obligation to pursue collection of such insurance or
indemnification, contribution, warranty or similar obligation (except that, if requested to do so by the Indemnifying Party, the
Indemnified Party shall reasonably cooperate with the Indemnifying Party at the Indemnifying Party’s sole expense, to collect
any such insurance or indemnification, contribution, warranty or similar obligation). The Indemnifying Party shall remain
responsible for any amount of Losses subject to indemnification under this Article IX that are not paid from any insurance
proceeds or indemnity, contribution, warranty, refund or similar payment.

 

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9.8
Exclusive Remedy. After the Closing, the indemnities set forth in this Article IX shall be the sole and exclusive
remedy of the Parties, their successors and assigns, and their respective officers, managers or directors, employees, agents, members
and Affiliates with respect to this Agreement, the events giving rise to this Agreement and the transactions contemplated hereby, except
with respect to claims for specific enforcement for breaches of covenants and agreements contained in this Agreement and claims relating
to fraud, willful misconduct, or intentional misrepresentation. Without limiting the foregoing, Purchaser, for itself and its Affiliates,
does hereby irrevocably release, hold harmless and forever discharge Seller and its Affiliates (including Seller Parent) from any and
all Liabilities arising out of or in connection with the Assumed Liabilities except for the remedies expressly set forth in this Agreement.
The indemnities set forth in this Article IX apply only to matters arising out of this Agreement and any Losses arising under or
pursuant to an Ancillary Agreement entered into hereunder. The Parties shall not be entitled to a rescission of this Agreement or to any
further indemnification rights or claims of any nature whatsoever in respect hereof (whether by Contract, Law or otherwise, all of which
the Parties hereby waive).

 

9.9
Treatment of Indemnification Payments. To the extent permitted by Law, any amounts payable pursuant to this Article IX
shall be considered adjustments to the Purchase Price for all income Tax purposes, unless otherwise required by applicable Law, and the
Parties and their respective Affiliates agree to take no position inconsistent with such treatment in any Tax Return, in any refund claim,
in any litigation, or otherwise unless required by a final determination by an applicable taxing authority.

 

9.10
Mitigation. The Indemnified Party will use its commercially reasonable efforts to mitigate any Losses with respect to which
it may be entitled to seek indemnification pursuant to this Agreement, provided, however, that nothing in this Section
9.10 shall (a) expand or extend an Indemnified Party’s common law obligation to mitigate damages or (b) require an Indemnified
Party to commence or undertake any litigation, arbitration or similar proceeding against any third party.

 

9.11
Additional Limitations on Liability. Notwithstanding anything to the contrary contained in this Agreement (including this
Article IX), no Indemnifying Party shall be liable to any Indemnified Party, whether in contract, tort (including negligence and
strict liability) or otherwise, at law or in equity, and Losses under this Article IX shall not include (A) consequential, indirect,
exemplary, special or punitive damages, (B) losses or damages based upon a multiple of profits or earnings, (C) losses or damages caused
by diminution of value or loss of use, profits, revenue, opportunity or reputation or (D) interest charges or cost of capital, except,
in each case, to the extent any such damages are reasonably foreseeable or are awarded against or otherwise payable or incurred by an
Indemnified Party in connection with a Third-Party Claim.

 

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9.12
 Limitations on Environmental Claims. Notwithstanding anything to the contrary in this Agreement, Seller and Seller Parent
shall not be obligated to indemnify the Purchaser Indemnified Parties for Losses pursuant to Environmental Laws to the extent such Losses
are incurred due to (a) Purchaser Indemnified Parties’ development of the portion of the Site formerly operated by Norby Lumber
(the “Norby Lumber Site”) or (b) environmental remedial actions taken by Purchaser Indemnified Parties with
regard to the Norby Lumber Site that are not in response to a demand, request for information, inspection, claim, action, suit, directive
or order of a Governmental Body.

 

9.13
No Personal Liability. Notwithstanding any provision to the contrary in this Agreement, with respect to a Person which is
an entity other than a natural person, (a) no officer, director, manager, employee, agent or representative of either Party shall have
personal liability to any Purchaser Indemnified Party or Seller Indemnified Party, as the case may be, for any Losses arising under, related
to, or in connection with (i) this Agreement, (ii) any certificate or other document delivered by any Party in connection with this Agreement,
or (iii) otherwise with the transactions contemplated hereby (whether a contract claim, tort claim, statutory claim or otherwise and regardless
of whether any Losses claimed arise as a result of negligence, strict liability or any other liability under any theory of claimed law
or equity), nor shall the personal assets of any such individual Person be subject to any losses, and (b) the only recourse available
under this Agreement to any Purchaser Indemnified Party or Seller Indemnified Party arising out of Section 9.2 or Section 9.3
shall be in accordance with this Article IX.

 

Article
X.

Miscellaneous

 

10.1
Notices. Unless otherwise set forth herein, any notices, consents, waivers and other communications required or permitted
by this Agreement shall be in writing and shall be deemed given to a Party when (a) delivered to the appropriate address by hand or by
nationally recognized overnight courier service (costs prepaid), or (b) sent by e-mail if sent during the normal business hours of the
recipient, with confirmation of transmission by the transmitting equipment confirmed with a copy delivered as provided in clause (a),
in the case of each of clauses (a) and (b), to the following addresses or e-mail addresses and marked to the attention of the person (by
name or title) designated below (or to such other address, e-mail address or person as a Party may designate by notice to the other Parties):

 

If to Seller, to:

 

Pacific Ethanol Madera, LLC

c/o Alto Ingredients, Inc.

400 Capital Mall, Suite 2060

Sacramento, CA 95814

Phone No.: (916) 403-2130

Attention: Christopher W. Wright, General
Counsel

E-mail address: cwright@pacificethanol.com

 

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With a copy (which shall not constitute
effective notice) to:

 

Troutman Pepper Hamilton Sanders LLP

5 Park Plaza, 14th Floor

Irvine, California 92614

Attention: Larry A. Cerutti

E-mail address:
larry.cerutti@troutman.com

 

If to Purchaser, to:

 

Seaboard Energy California, LLC

9000 West 67th St., Suite 200

Shawnee Mission, KS 66202

Phone No.: (913) 676-8800

Attention: Gary F. Louis

E-mail address: gary.louis@seaboardenergy.com

 

With a copy (which shall not constitute
effective notice) to:

 

Seaboard Corporation

9000 West 67th St., Suite 300

Shawnee Mission, KS 66202

Attention: David M. Becker

E-mail address: david.becker@seaboardcorp.com

 

10.2
Payment of Expenses. Except as set forth in Section 3.4, and whether or not the transactions contemplated hereby
are consummated, Seller and Purchaser shall bear their own expenses incurred or to be incurred in connection with the negotiation and
execution of this Agreement and the Ancillary Documents and the consummation of the transactions contemplated hereby and thereby.

 

10.3 Entire
Agreement; Amendments and Waivers. This Agreement, together with the Confidentiality Agreement and the Ancillary Documents,
represents the entire understanding and agreement between the Parties with respect to the subject matter hereof. This Agreement may
be amended, supplemented or changed, and any provision hereof may be waived, only by written instrument making specific reference to
this Agreement signed by the Party against whom enforcement of any such amendment, supplement, modification or waiver is sought. No
action taken pursuant to this Agreement, including any investigation by or on behalf of any Party, shall be deemed to constitute a
waiver by the Party taking such action of compliance with any representation, warranty, condition, covenant or agreement contained
herein. The waiver by any Party of a breach of any provision of this Agreement shall not operate or be construed as a further or
continuing waiver of such breach or as a waiver of any other or subsequent breach. No failure on the part of any Party to exercise,
and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of such right, power or remedy by such Party preclude any other or further exercise thereof or the exercise of any other
right, power or remedy.

 

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10.4
Execution of Agreement; Counterparts; Electronic Signatures.

 

(a)   
This Agreement may be executed in several counterparts, each of which shall be deemed an original and all of which shall constitute
one and the same instrument, and shall become effective when counterparts have been signed by each of the Parties and delivered to the
other Parties; it being understood that all Parties need not sign the same counterparts.

 

(b)   
The exchange of copies of this Agreement and of signature pages by electronic mail in PDF format or by any other electronic means
intended to preserve the original graphic and pictorial appearance of a document, or by combination of such means, shall constitute effective
execution and delivery of this Agreement as to the Parties and may be used in lieu of the original Agreement for all purposes. Signatures
of the Parties transmitted by facsimile shall be deemed to be their original signatures for all purposes.

 

10.5
Governing Law. THIS AGREEMENT IS TO BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE WITHOUT
GIVING EFFECT TO THE CHOICE OF LAW PRINCIPLES THEREOF.

 

10.6
Jurisdiction, Waiver of Jury Trial.

 

(a)   
THE FEDERAL OR STATE COURTS IN THE STATE OF DELAWARE WILL HAVE JURISDICTION OVER ANY AND ALL DISPUTES BETWEEN OR AMONG THE PARTIES,
WHETHER AT LAW OR IN EQUITY, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY AGREEMENT CONTEMPLATED HEREBY.

 

(b)   
EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED
TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

10.7
Binding Effect; Assignment. This Agreement shall be binding upon Purchaser, Seller and Seller Parent and shall inure to
the benefit of the Parties and their respective successors and permitted assigns. Nothing in this Agreement shall create or be deemed
to create any third-party beneficiary rights in any Person or entity not a party to this Agreement except as provided below. No assignment
of this Agreement or of any rights or obligations hereunder may be made by Seller or Purchaser (by operation of law or otherwise) without
the prior written consent of the other Parties and any attempted assignment without such required consents shall be void; provided,
however, that Purchaser may assign any or all of its rights hereunder, in whole or in part, to any Affiliate of Purchaser without
the prior consent of Seller for so long as Purchaser remains responsible for the performance of its financial obligations hereunder, including
any indemnification obligations.

 

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10.8
 Severability. Whenever possible, each provision or portion of any provision of this Agreement shall be interpreted in such
manner as to be effective and valid under applicable Law, but if any provision or portion of any provision of this Agreement is held to
be invalid, illegal or unenforceable in any respect under any applicable Law in any jurisdiction, such invalidity, illegality or unenforceability
shall not affect any other provision or portion of any provision in such jurisdiction and in lieu of such invalid, illegal or unenforceable
provision or portion of any provision, there will be added automatically as a part of this Agreement a valid legal and enforceable provision
as similar in terms to such invalid, illegal or unenforceable provision as may be possible.

 

10.9
Negotiated Transactions. The provisions of this Agreement were negotiated by the Parties hereto and said Agreement shall
be deemed to have been drafted by all Parties hereto.

 

10.10  
Bulk Sales Laws. Each Party hereby waives compliance by the other Party or any of its Affiliates with any applicable bulk
sale or bulk transfer laws of any jurisdiction in connection with the sale of the Purchased Assets to Purchaser.

 

10.11  
Disclosure Schedules. No representation or warranty of Seller contained in Article IV shall be deemed untrue or incorrect,
and Seller shall not be deemed to have breached any such representation or warranty, as a consequence of the existence of any fact, circumstance
or event of which is expressly disclosed in the Disclosure Schedules to Article IV, subject to the following sentence. The information
contained in the Disclosure Schedules to Article IV constitutes exceptions to the applicable representations and warranties in
Article IV only so long as a Disclosure Schedule with respect to such representation and warranty contains an explicit reference
to the representation or warranty for which an exception is intended to apply, or it is reasonably apparent from the plain text of a particular
Disclosure Schedule that the disclosure also applies to another representation or warranty.

 

Article
XI.

DEFINITIONS

 

11.1
Definitions. As used herein:

 

(a)   
“Acceptable Bank” means any United States commercial bank(s) or financial institution(s) or a United
States branch of a foreign commercial bank(s) or financial institution(s) having a long-term unsecured senior debt rating of at least
A2 or better by Moody’s and A or better by S&P.

 

(b)   
“Action” means any action, claim, complaint, grievance, summons, suit, litigation, arbitration, mediation,
proceeding (including any civil, criminal, administrative, investigative or appellate proceeding), prosecution, contest, hearing, inquiry,
inquest, audit, examination or investigation by or before any Governmental Body.

 

(c)   “Affiliate”
means, with respect to any Person, any other Person that, directly or indirectly through one or more intermediaries, controls, or is
controlled by, or is under common control with, such Person, and the term “control” (including the terms
“controlled by” and “under common control with”) means (i) the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of such Person, whether through ownership of voting
securities, by Contract or otherwise or (ii) an officer, director, or any Person that has the power, directly or indirectly, to more
than fifty percent (50%) of the securities having ordinary voting power for the election of directors (or persons performing similar
functions) of such Person.

 

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(d)   
“Agreed Amount” shall have the meaning set forth in Section 9.5(a)(ii)

 

(e)   
“Agreement” shall have the meaning set forth in the preamble.

 

(f)
“Agreement Date” shall have the meaning set forth in the preamble.

 

(g)   
“Allocation Schedule” shall have the meaning set forth in Section 8.2.

 

(h)   
“Ancillary Documents” means any certificate, agreement, document or other instrument (other than this
Agreement) to be executed and delivered by a Party in connection with the consummation of the transactions contemplated this Agreement.

 

(i)
“Asset Allocation” shall have the meaning set forth in Section 8.2

 

(j)
“Assigned Contracts” shall have the meaning set forth in Section 1.1(d).

 

(k)   
“Assumed Liabilities” shall have the meaning set forth in Section 1.3.

 

(l)
“Benefit Plan” means (i) all “employee benefit plans” (including, without limitation,
as defined in Section 3(3) of ERISA), including all employee benefit plans which are “pension plans” (including,
without limitation, as defined in Section 3(2) of ERISA) and any other employee benefit arrangements or payroll practices (including severance
pay, vacation pay, company awards, salary continuation for disability, sick leave, death benefit, hospitalization, welfare benefit, group
or individual health, dental, medical, life, insurance, fringe benefit, deferred compensation, profit sharing, retirement, retiree medical,
supplemental retirement, bonus or other incentive compensation, stock purchase, equity-based, stock option, stock appreciation rights,
restricted stock and phantom stock arrangements or policies) and (ii) all other employment, termination, bonus, severance, change in control,
collective bargaining or other similar plans, programs, contracts, or arrangements (whether written or unwritten), in each case, maintained,
contributed to, or required to be contributed to by Seller Parent or any ERISA Affiliate for the benefit of any current or former Employee
or under which Seller Parent or any ERISA Affiliate has any liability with respect to any Employee.

 

(m)
“Bill of Sale” shall have the meaning set forth in Section 3.5(d).

 

(n)   
“Business” means the maintenance of the Site and the Purchased Assets by Seller.

 

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(o)   
 “Business Day” means any day other than a Saturday, Sunday or other day on which banks in New York City,
New York are authorized or required by Law to be closed.

 

(p)   
“CARB” means the California Air Resources Board or any successor body politic or corporate.

 

(q)   
“CARB Attributes” shall have the meaning set forth in Section 6.21.

 

(r)
“CARB Compliance Requirements” shall have the meaning set forth in Section 6.21.

 

(s)
“CITSS” shall have the meaning set forth in Section 6.21.

 

(t)
“CleanFund Commercial PACE Capital, Inc. Financing” means that certain commitment letter dated September
14, 2016 (the “Commitment Letter”) by and between Seller and CleanFund Commercial PACE Capital, Inc. in the
amount of $10,000,000 and the related Restrictive Covenant Agreement dated September 21, 2016 by Seller in favor of Clean Fund Titling
Trust (the “Restrictive Covenant Agreement”), which Restrictive Covenant Agreement provides, among other things,
that so long as the financing under the Commitment Letter remains outstanding, neither parcel of land located on the Site shall be (i)
subdivided, split or be the subject of any lot line adjustment or (ii) sold, encumbered or otherwise transferred unless such sale, encumbrance
or other transfer involves both parcels of land located on the Site.

 

(u)  “Closing”
shall have the meaning set forth in Section 3.1.

 

(v)   
“Closing Date” shall have the meaning set forth in Section 3.1.

 

(w)
“Closing Cash Payment” shall have the meaning set forth in Section 2.2(a).

 

(x)   
“Closing Statement” shall have the meaning set forth in Section 2.2(a).

 

(y)   
“Code” means the United States Internal Revenue Code of 1986, as the same may be amended from time to
time.

 

(z)   
“Confidentiality Agreement” means that certain Confidentiality Agreement dated August 17, 2020 by and
between Purchaser and Seller.

 

(aa)
“Contested Amount” shall have the meaning set forth in Section 9.5(a)(ii).

 

(bb)  
“Contract” means any written or oral contract, purchase order, service order, sales order, indenture,
note, bond, lease, sublease, license, understanding, instrument or other agreement, arrangement or commitment that is binding upon a Person
or its property, whether express or implied.

 

(cc)
“Deed” shall have the meaning set forth in Section 3.5(c).

 

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(dd)  
 “Direct Claim” shall have the meaning set forth in Section 9.5(b).

 

(ee)
“Direct Claim Agreed Amount” shall have the meaning set forth in Section 9.5(b)(ii).

 

(ff)
“Direct Claim Notice” shall have the meaning set forth in Section 9.5(b).

 

(gg)  
“Direct Claim Response Notice” shall have the meaning set forth in Section 9.5(b)(ii)

 

(hh)  
“Direct Claim Contested Amount” shall have the meaning set forth in Section 9.5(b)(ii).

 

(ii)
“Documents” means all of Seller’s written files, documents, instruments, papers, books, reports,
records, tapes, microfilms, photographs, letters, budgets, forecasts, plans, operating records, safety and environmental plans and reports,
data, Permits and Permit applications, studies and documents, ledgers, journals, title policies, customer lists, regulatory filings, operating
data and plans, research material, technical documentation (design specifications, engineering information, test results, maintenance
schedules, functional requirements, operating instructions, logic manuals, processes, flow charts, etc.), user documentation (installation
guides, user manuals, training materials, release notes, working papers, etc.), marketing documentation (sales brochures, flyers, pamphlets,
web pages, etc.), and other similar materials, in each case whether or not in electronic form relating to the Business.

 

(jj)
“Due Diligence” shall have the meaning set forth in Section 6.2.

 

(kk)  
“Due Diligence Period” shall have the meaning set forth in Section 6.2(c).

 

(ll)
“Employees” shall have the meaning set forth in Section 4.14(a).

 

(mm)  
“Encumbrance” means any lien (including, but not limited to, any Tax lien), encumbrance, claim, right,
demand, charge, mortgage, deed of trust, option, pledge, security interest or similar interests, title defects, hypothecations, easements,
rights of way, restrictive covenants, encroachments, rights of first refusal, preemptive rights, judgments, conditional sale or other
title retention agreements and other impositions, imperfections or defects of title or restrictions on transfer or use of any nature whatsoever.

 

(nn)  
“Environment” means soil, water (including navigable waters, oceans, streams, ponds, reservoirs, drainage
basins, wetlands, playa lakes, surface waters, underground waters, drinking waters and water vapor), land, sediments, surface or subsurface
strata, ambient air, indoor air, noise, plant life, animal life and all other environmental media or natural resources including any material
or substance used in the physical structure of any building or improvement.

 

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(oo)   “Environmental
Attributes” means any emissions or renewable energy credits, energy conservation credits, benefits, offsets and
allowances, emission reduction credits or words of similar import or regulatory effect (including emissions reduction credits or
allowances under all applicable emission trading, compliance or budget programs, or any other federal, state or regional emission,
renewable energy or energy conservation trading or budget program) that have been held, allocated to or acquired for the
development, construction, ownership, lease, operation, use, maintenance, or compliance of Seller or the Site, or that need to be
acquired for the development, construction, ownership, lease, operation, use, maintenance, or compliance of Seller or the Site.

 

(pp)  
“Environmental Law(s)” means any health, safety, land use, ecological, environmental, and natural resource
laws and orders, including all laws, orders, and private land use restrictions (such as covenants, conditions, and restrictions) relating
to the following: (i) noise and odors; (ii) the pollution or protection of the air, soil, surface water, ground water, or other elements
of the environment; (iii) the use, Release, storage, disposal, emission, handling, discharge, transport, treatment, processing, distribution,
or manufacturing of any Hazardous Materials; (iv) the registration, labeling of Hazardous Materials; and (v) the cleanup, removal, recovery,
assessment, or remediation of any damage, abandonment, leak, emission, discharge, pollution, or contamination of or into air, soil, buildings,
surface water or groundwater; in each case, whether previously, presently or hereafter in effect, including the Comprehensive Environmental
Response, Compensation and Liability Act (42 U.S.C. Section 9601 et seq.), the Oil Pollution Act of 1990 (33 U.S.C. Section 2701 et seq.),
the Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.), the Clean Water Act (33 U.S.C. Section 1251 et seq.), the
Clean Air Act (42 U.S.C. Section 7401 et seq.), the Toxic Substances Control Act (15 U.S.C. Section 2601 et seq.), the Federal Insecticide,
Fungicide, and Rodenticide Act (7 U.S.C. Section 136 et seq.), the Hazardous Materials Transportation Act (49 U.S.C. Section 5101 et seq.),
the Safe Drinking Water Act (42 U.S.C. Section 300f et seq.), the Emergency Planning and Community Right to Know Act (42 U.S.C. 11001
et seq.), the Endangered Species Act (16 U.S.C. Section 1531 et seq.), Export Administration Regulations (15 C.F.R. Parts 730–774)
and the Occupational Safety and Health Act (29 U.S.C. Section 651 et seq.) and all such laws adopted by any other Governmental Body, and
any and all implementing rules, regulations and guidance relating to any of the foregoing.

 

(qq)  
“Equipment Removal” shall have the meaning set forth in Section 6.22.

 

(rr)
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated
thereunder.

 

(ss)
“ERISA Affiliate” means any entity which is a member of (A) a controlled group of corporations (as defined
in Section 414(b) of the Code), (B) a group of trades or businesses under common control (as defined in Section 414(c) of the Code), (C)
an affiliated service group (as defined under Section 414(m) of the Code) or (D) any group specified in Treasury Regulations promulgated
under Section 414(o) of the Code, any of which includes or included Seller.

 

(tt)
“Excluded Assets” shall have the meaning set forth in Section 1.2.

 

(uu)  
“Expiry Date” shall have the meaning set forth in Section 6.20.

 

    44

     

    

 

(vv)  
 “Final Contested Amount” shall have the meaning set forth in Section 9.5(a)(ii).

 

(ww)
“Final Direct Claim Contested Amount” shall have the meaning set forth in Section 9.5(b)(ii).

 

(xx)  
“Financial Statements” shall have the meaning set forth in Section 4.18.

 

(yy)  
“FIRPTA Certificate” shall have the meaning set forth in Section 8.4.

 

(zz)
“Fixed Assets” shall have the meaning set forth in Section 1.1(c).

 

(aaa)
“Furnishings and Equipment” means, except for any Excluded Assets, any and all machinery, equipment,
furniture, furnishings, hardware, materials, fixtures, trade fixtures, shelving, storage units, tractors, and related tangible assets
maintained or owned by Seller.

 

(bbb)
“GAAP” means United States generally accepted accounting principles as in effect from time to time.

 

(ccc)
“Governmental Body” means any government, quasi-governmental entity, or other governmental or regulatory
body, agency or political subdivision thereof of any nature, whether foreign, federal, state or local, or any agency, branch, department,
official, entity, instrumentality or authority thereof, or any court or arbitrator (public or private) of applicable jurisdiction.

 

(ddd)
“Hazardous Material” means any pollutant, toxic substance, hazardous waste, hazardous material, hazardous
substance, contaminant, petroleum or petroleum containing materials, asbestos and asbestos containing materials, radiation or radioactive
materials, leaded paints, toxic mold and other harmful biological agents, soil gases, including petroleum and chemical vapors, and polychlorinated
biphenyls or any other material which could otherwise give rise to Liability under any Environmental Law.

 

(eee)
“Indebtedness” of any Person means, without duplication, (i) the interest in respect of, principal of
and premium (if any) in respect of (x) indebtedness of such Person for money borrowed and (y) indebtedness evidenced by notes, debentures,
bonds or other similar instruments for the payment of which such Person is responsible or liable; (ii) all obligations of such Person
with respect to any Contracts relating to the deferred and unpaid purchase price of property or services, including any interest accrued
thereon and prepayment or similar penalties and expenses; (iii) all obligations of such Person under leases required to be capitalized
in accordance with GAAP; (iv) all obligations of such Person for the reimbursement of any obligor on any letter of credit, banker’s
acceptance or similar credit transaction; (v) all obligations of the type referred to in clauses (i) through (iv) of any Persons for the
payment of which such Person is responsible or liable, directly or indirectly, as obligor, guarantor, surety or otherwise, including guarantees
of such obligations; and (vi) all obligations of the type referred to in clauses (i) through (v) of other Persons secured
by any Encumbrance (other than Permitted Encumbrances), on any property or asset of such Person (whether or not such obligation is assumed
by such Person).

 

    45

     

    

 

(fff)  
 “Indemnified Party” means any Person asserting a claim for indemnification under any provision of Article
IX.

 

(ggg)
“Indemnifying Party” means any Person against whom a claim for indemnification is being asserted under
any provision of Article IX.

 

(hhh)
“Intellectual Property” means all intellectual property and proprietary rights of any kind, including
the following: (i) trademarks, service marks, trade names, slogans, logos, designs, symbols, trade dress, internet domain names, uniform
resource identifiers, rights in design, brand names, any fictitious names, d/b/a’s or similar filings related thereto, or any variant
of any of them, and other similar designations of source or origin, together with all goodwill, registrations and applications related
to the foregoing; (ii) copyrights and copyrightable subject matter (including any registration and applications for any of the foregoing);
(iii) trade secrets and other confidential or proprietary business information (including manufacturing and production processes and techniques,
research and development information, technology, intangibles, drawings, specifications, designs, plans, proposals, technical data, financial,
marketing and business data, pricing and cost information, business and marketing plans, customer and supplier lists and information),
know how, proprietary processes, formulae, algorithms, models, industrial property rights, and methodologies; (iv) computer software,
computer programs, and databases (whether in source code, object code or other form); (v) inventions, discoveries and patents (including
any registration and applications for any of the foregoing); and (vi) all rights to sue for past, present and future infringement, misappropriation,
dilution or other violation of any of the foregoing and all remedies at law or equity associated therewith, but not including intellectual
property or proprietary rights of any kind arising under licenses of Intellectual Property.

 

(iii)
“Knowledge” or (“Knowledge of Seller” or “Seller’s Knowledge”)
means the actual knowledge of Michael D. Kandris, Bryon McGregor, Brian Fish, Patrick McKenzie, Rob Olander, Jeff Unsinger and Christopher
W. Wright and the knowledge that each such person would reasonably be expected to obtain in the course of diligently performing his or
her duties for Seller, or in connection with entering into this Agreement.

 

(jjj)
“Law” means any federal, state, local, municipal, foreign or international, multinational or other law,
statute, constitution, principle of common law, resolution, ordinance, code, edict, decree, rule, regulation, ruling or requirement issued,
enacted, adopted, promulgated, implemented or otherwise put into effect by or under the authority of any Governmental Body, in each case
as in effect as of the Closing Date.

 

(kkk)
“Liability” or “Liabilities” means, as to any Person, any debt, adverse claim,
liability (including any liability that results from, relates to or arises out of tort or any other product liability claim), duty, responsibility,
obligation, commitment, assessment, cost, expense, loss, expenditure, charge, fee, penalty, fine, contribution or premium of any kind
or nature whatsoever, whether known or unknown, asserted or unasserted, absolute or contingent, direct or indirect, accrued or unaccrued,
liquidated or unliquidated, or due or to become due, and regardless of when sustained, incurred or asserted or when the relevant events
occurred or circumstances existed.

 

    46

     

    

 

(lll)
 “Licensed Intellectual Property” mean all Intellectual Property licensed to Seller by a third party.

 

(mmm)    
“Loss” or “Losses” means any and all claims, damages, deficiencies, fines,
fees, losses, Liabilities, obligations, penalties, payments (including those arising out of any settlement, judgment or compromise relating
to any legal Proceeding), and reasonable costs and expenses (including, without limitation, court costs, reasonable fees of attorneys,
accountants and other experts or other expenses incurred in investigating, preparing, defending, avoiding or settling any claim, default
or assessment).

 

(nnn)
“Material Adverse Effect” means any event, change, occurrence or state of facts that, individually or
in the aggregate, has or would reasonably be expected to have a material adverse effect on the Purchased Assets taken as a whole; provided,
however, that in no event shall any of the following, alone or in combination, be deemed to constitute, or be taken into account,
in determining whether there has been, or would be, a Material Adverse Effect: (a) any adverse change attributable to (i) the disclosure
or execution of this Agreement, (ii) the disclosure or consummation of the transactions contemplated by this Agreement or any of the Ancillary
Agreements, or (iii) the business or activities in which Purchaser or its Affiliates are, or are proposed to be, engaged, or the identity
of Purchaser or its Affiliates as Purchaser of the Business, including the loss or departure of Business Employees, or other service providers
of the Business, or the termination, reduction (or potential reduction) or any other adverse development (or potential adverse development)
in the Business’ relationship with any of its customers, suppliers, distributors or other business partners, in each case in clause
(a)(iii) as a result of the announcement or pendency of this Agreement; (b) any event, change or effect (i) in the domestic or international
financial, credit, securities or commodities markets (including interest rates, currency exchanges rates, and securities price levels
or trading volumes), or domestic or international economic, regulatory or political conditions or (ii) in the industries and markets in
which the Business operates, including competition in any of the geographic areas in which the Business operates; (c) fluctuations in
sales and earnings or failure of the Business to meet internal or published sales, earnings or other financial or non-financial projections
and estimates; (d) global, national, regional, military or governmental action (or the escalation of any of the foregoing); (f) manmade
disasters, natural disasters, weather developments, pandemics (including the novel coronavirus, COVID-19), and acts of God, including
earthquakes, hurricanes, tsunamis, typhoons, lightning, hail storms, blizzards, tornadoes, droughts, crop shortages, floods, rising sea
levels, cyclones, arctic frosts, mudslides and wildfires, manmade disasters or acts of God; (g) any event, change or effect resulting
from any changes or anticipated or proposed changes including repeal or anticipated or proposed repeal, of any (i) Law or any other law,
treaty, legislative or political conditions, or policy or practices of any governmental entity applicable to the Business, including and
without limiting the generality of the foregoing, the Renewable Fuel Standard and other programs, quotas, and regulations under the Energy
Policy Act of 2005 and the Energy Independence and Security Act of 2007, or (ii) applicable accounting regulations or principles, in each
case of clauses (g)(i) or (ii), including any change in the interpretation or enforcement thereof; (h) any action required or permitted
to be taken pursuant to this Agreement or any Ancillary Agreement; or (i) any action or inaction by Purchaser or its Affiliates, or action
or inaction approved or consented to by Purchaser or its Affiliates after the date hereof.

 

    47

     

    

 

(ooo)
 “Materials Removal” shall have the meaning set forth in Section 6.23.

 

(ppp)
“Norby Lumber Site” shall have the meaning set forth in Section 9.12.

 

(qqq)
“Order” means any award, writ, injunction, judgment, order, ruling, decision, subpoena, mandate, precept,
command, directive, consent, approval, award, decree or similar determination or finding entered, issued, made or rendered by any Governmental
Body.

 

(rrr)  
“Ordinary Course of Business” means the ordinary and usual course of maintenance of the Purchased Assets
by Seller as of the date hereof.

 

(sss)
“Organizational Documents” means, with respect to a particular entity Person, (i) if a corporation, the
articles or certificate of incorporation and bylaws, (ii) if a general partnership, the partnership agreement and any statement of partnership,
(iii) if a limited partnership, the limited partnership agreement and certificate of limited partnership, (iv) if a limited liability
company, the articles or certificate of organization or formation and any limited liability company or operating agreement, (v) if another
type of Person, all other charter and similar documents adopted or filed in connection with the creation, formation or organization of
the Person, and (vi) all amendments or supplements to any of the foregoing.

 

(ttt)
“Outside Date” shall have the meaning set forth in Section 3.7(b).

 

(uuu)
“Party” shall have the meaning set forth in the preamble.

 

(vvv)
“Pending Claim” shall have the meaning set forth in Section 6.20.

 

(www) 
“Permits” means to the fullest extent permitted under applicable law, all notifications, licenses, permits,
franchises, certificates, approvals, consents, waivers, clearances, exemptions, classifications, registrations, declarations, variances,
orders, tariffs, rate schedules and other similar documents and authorizations (including those for environmental, business, construction
and operation purposes) issued by any Governmental Body to Seller and used, or held for use, in connection with the operation of the Site
or applicable to ownership of the Purchased Assets or assumption of the Assumed Liabilities.

 

(xxx)
“Permitted Encumbrances” means (i) Encumbrances for utilities and current Taxes not yet due and payable
or being contested in good faith; (ii) all matters of record encumbering title to the Purchased Assets as of the date hereof; (iii) applicable
zoning Laws, building codes, land use restrictions and other similar restrictions imposed by Law and (iv) such other Encumbrances or title
exceptions as set forth in the Title Policy which have been accepted or waived in writing by Purchaser on the Closing Date.

 

(yyy)
“Person” means an individual, corporation, partnership, limited liability company, joint venture, association,
trust, unincorporated organization, labor union, estate, Governmental Body or other entity or group.

 

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(zzz)
 “Phase I Report” means the Phase I Environmental Site Assessment prepared for Purchaser by SCS Engineers
with respect to the Real Property, dated December 22, 2020.

 

(aaaa)
 “Phase II Report” means the Phase II Environmental Site Assessment prepared for Purchaser by
SCS Engineers with respect to the Real Property, dated March 19, 2021.

 

(bbbb)
 “Pre-Closing Tax Period” means any taxable period (or portion thereof) ending on or before the Closing
Date.

 

(cccc)
“Proceeding” means any demand, action, suit, litigation, hearing, examination, notice of investigation,
notice of violation, arbitration, mediation, written citation, complaint, claim or audit

 

(dddd)
“Purchase Price” shall have the meaning set forth in Section 2.1(a).

 

(eeee)
“Purchased Assets” shall have the meaning set forth in Section 1.1.

 

(ffff)
“Purchaser” shall have the meaning set forth in the preamble.

 

(gggg)
“Purchaser Fundamental Representations” means the representations and warranties of Purchaser set forth
in Section 5.1, Section 5.2 and Section 5.6 of this Agreement.

 

(hhhh)
“Purchaser Indemnified Parties” means Purchaser, its Affiliates and their respective directors, officers,
agents, successors and permitted assigns.

 

(iiii)
“Real Property” shall have the meaning set forth in Section 4.7(a).

 

(jjjj)
“Release” or “Released” means any releasing, spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching, migrating, disposing, abandoning or dumping of a Hazardous Material into
the Environment and any condition that results in the exposure of a person to Hazardous Material.

 

(kkkk)
“Replacement Letter of Credit” shall have the meaning set forth in Section 6.20.

 

(llll)
“Response Notice” shall have the meaning set forth in Section 3.7(b).

 

(mmmm)
“Seller” shall have the meaning set forth in the preamble.

 

(nnnn)
“Seller Fundamental Representations” means the representations and warranties of Seller and Seller Parent
set forth in Section 4.1, Section 4.2 and Section 4.20 of this Agreement.

 

(oooo)
“Seller Indemnified Parties” means Seller, its Affiliates (including Seller Parent) and their respective
directors, officers, agents, successors and permitted assigns.

 

    49

     

    

 

(pppp)
 “Seller Parent” shall have the meaning set forth in the preamble.

 

(qqqq)
“Seller Parent Letter of Credit” means an irrevocable, standby letter of credit for the benefit of Purchaser
in a face value equal to $2,000,000 and with a term of fifteen (15) months, substantially in the form of Exhibit D, from
an Acceptable Bank

 

(rrrr)
“Site” shall have the meaning set forth in the Recitals.

 

(ssss)
“Survival Expiration Date” shall have the meaning set forth in Section 6.20.

 

(tttt)
“Straddle Period” shall have the meaning set forth in Section 8.1(b).

 

(uuuu)
“Tax” and “Taxes” mean (a) any and all taxes, including any federal, state,
provincial, local, foreign or other income, gross receipts, sales, value added, use, production, ad valorem, transfer, franchise, registration,
profits, license, lease, service, service use, withholding, payroll, employment, unemployment, estimated, excise, severance, environmental,
stamp, occupation, premium, property (real or personal), real property gains, windfall profits, capital, production, recapture, net worth,
surplus, customs, duties, levies, surtaxes or other taxes, fees, assessments, reassessments or charges of a similar kind, together with
any interest, additions, installments or penalties with respect thereto and any interest in respect of such additions or penalties.

 

(vvvv)
“Tax Proceeding” means any action, suit, investigation, audit, claim, investigation, or other action
or proceeding with respect to Taxes.

 

(wwww)   
“Tax Return” means any return, report, information return, declaration, claim for refund or other document
(including any schedule or related or supporting information) supplied or required to be supplied to any Governmental Body with respect
to Taxes, including amendments thereto.

 

(xxxx)
“Third-Party Claim” shall the meaning set forth in Section 9.5(a)(i).

 

(yyyy)
“Third-Party Claim Notice” shall the meaning set forth in Section 9.5(a)(i).

 

(zzzz)
“Title Company” means Stewart Title Guaranty Company.

 

    50

     

    

 

(aaaaa) “Title Policy”
shall the meaning set forth in Section 6.4(a).

 

(bbbbb)
“Transferred Employee” shall have the meaning set forth in Section 6.4(a).

 

(ccccc) “Treasury
Regulations” means the regulations promulgated under the Code by the United States Department of the Treasury (whether in
final, proposed or temporary form), as the same may be amended from time to time.

 

(ddddd)
 “Urea Tank Materials Removal” shall have the meaning set forth in Section 6.23.

 

(eeeee) “Vehicles”
means the vehicles, semi-trucks, tractors and trailers set forth on Schedule 11.1(eeeee).

 

(fffff)  
“WARN Act” means the United States Worker Adjustment and Retraining Notification Act, and the rules and
regulations promulgated thereunder.

 

(ggggg)
“Water Wells” has the meaning set forth in Section 4.7(b).

 

 

[Signature page follows. Remainder of page
intentionally left blank]

 

    51

     

    

 

IN WITNESS WHEREOF, the Parties
have caused this Agreement to be duly executed and delivered as of the date first above written.

 

	 	PURCHASER:
	 	 	 
	 	SEABOARD ENERGY CALIFORNIA, LLC
	 	 	 
	 	By:	/s/ Gary F. Louis
	 	Name: 	Gary F. Louis
	 	Title: 	President and Chief Executive Officer
	 	 	 
	 	SELLER:	 
	 	 	 
	 	PACIFIC ETHANOL MADERA LLC
	 	 	 
	 	By:	/s/ Michael D. Kandris 
	 	Name: 	Michael D. Kandris
	 	Title:	 President and Chief Executive Officer
	 	 	 
	 	SELLER PARENT:
	 	 	 
	 	ALTO INGREDIENTS, INC.
	 	 	 
	 	By:	/s/ Michael D. Kandris
	 	Name: 	Michael D. Kandris
	 	Title:	 President and Chief Executive Officer

 

[Signature Page to Asset Purchase Agreement]Exhibit 10.2

 

FIRST AMENDMENT TO ASSET
PURCHASE AGREEMENT

 

This First Amendment
to Asset Purchase Agreement (this “Amendment”) is made and entered into this 30th day of July, 2021 (the “Execution
Date”), by and between SEABOARD ENERGY CALIFORNIA, LLC, a Delaware limited liability company (“Purchaser”),
PACIFIC ETHANOL MADERA LLC, a Delaware limited liability company (“Seller”), and ALTO INGREDIENTS, INC. (formerly,
PACIFIC ETHANOL, INC.), a Delaware corporation (“Seller Parent”). Purchaser, Seller and Seller Parent may hereinafter
be referred to individually as a “Party” and collectively as the “Parties.”

 

Recitals

 

WHEREAS, the Parties entered into
that certain Asset Purchase Agreement dated April 23, 2021 (the “Agreement”);

 

WHEREAS, the Parties closed on the
transactions set forth in the Agreement on May 14, 2021 (the “Closing Date”); and

 

WHEREAS, the Parties desire to amend the terms of the Agreement
as set forth herein.

 

Agreement

 

NOW, THEREFORE, in consideration
of the terms, conditions and covenants contained herein, the Parties mutually agree to amend the terms and conditions of the Agreement
as follows:

 

1. Effective
Date. The Parties acknowledge and agree that the terms of this Amendment are made effective as of the Closing Date.

 

2. Definitions.

 

a. Capitalized
terms used but not otherwise defined herein shall have the meanings ascribed to them in the Agreement.

 

b. The
following definitions set forth in this Amendment shall be added (in alphabetical order) to Article XI of the Agreement:

 

“Corn Oil System”
means certain assets of the Corn Oil System, including a centrifuge assembly packaged skid which includes mechanical and controls,
PCOSS disk stack centrifuge, brush screen, syrup return tank and a syrup discharge pump, a tank assembly packaged skid which includes
mechanical and controls, an intermediate tank, clean oil tank, decant pump and syrup transfer pump, and a main control distribution panel
which includes the primary HMI control screen.

 

“PG&E Rule 21 Study
Liability” shall have the meaning set forth in Section 1.3(c).

 

“Whitefox Equipment
(Other)” means the following equipment included within “PEM0527 Commercial Whitefox” as referred to
in Schedule 1.1(c) that is subject to the Equipment Removal as set forth in Section 6.22 of the Agreement: (i) one 1)
stripper column as a whole, including all internals, (ii) one (1) kettle reboiler, and (iii) one (1) superheater, all of which are
depicted in images in Exhibit E attached hereto.

 

     

     

    

 

“Whitefox
Equipment (Pickup)” means the following equipment that is subject to the Equipment Removal as set forth in Section
6.22 of the Agreement: (i) two (2) prefabricated process assemblies, a dedicated power distribution building and a feed tank,
all of which are depicted in the images in Exhibit F attached hereto, and (ii) certain assets of the equipment included
within “PEM0527 Commercial Whitefox” as referred to in Schedule 1.1(c), namely eleven (11) membrane
cartridges model MB2 and three (3) vapor permeation membrane modules type MB6, all of which are depicted in images in Exhibit
G attached hereto (and, together with the Whitefox Equipment (Other), the “Whitefox Equipment”).

 

3. Excluded
Assets. The Parties hereby amend Section 1.2 of the Agreement to add the following provisions:

 

“(i) the Corn Oil System; and

 

(j) the Whitefox Equipment.”

 

4. Fixed
Assets. The Parties hereby amend Schedule 1.1(c) attached to the Agreement to reflect the removal of the Corn Oil System
and the Whitefox Equipment from such Schedule 1.1(c). The amended Schedule 1.1(c) is attached hereto.

 

5. Assumption
of Liabilities. The Parties hereby amend Section 1.3 of the Agreement to add the following provision:

 

“(c) solely with respect
to that certain Assigned Contract, Rule 21 Detailed Study Agreement by and between Pacific Gas & Electric Company (PG&E) and Seller
dated as of April 4, 2017, the Liabilities of Seller as specifically set forth on Schedule 1.3 (the “PG&E Rule
21 Study Liability”). For clarification purposes, with respect to such Assigned Contract, ‘Assumed Liabilities’
shall not include any other obligations arising or accruing prior to the Closing Date or with respect to any breach or default existing
prior to the Closing Date.”

 

6. Equipment
Removal. The Parties hereby amend and restate Section 6.22 of the Agreement in its entirety as follows:

 

“Within ninety (90) days after the
Closing (or such later period as mutually agreed in writing by Seller and Purchaser), Seller will, and will cause its Affiliates
and/or third party contractors to remove the Corn Oil System and the Whitefox Equipment located on the Site (the
“Equipment Removal”). Seller shall minimize any disruption to Purchaser or the operation of the Site at
all times until completion of the Equipment Removal. Seller shall be responsible for procuring and supervising all labor, including
any third party contractors, required in connection with the Equipment Removal. Seller shall bear all costs incurred in connection
with the Equipment Removal. If Seller does not complete the Equipment Removal within ninety (90) days of Closing (or such later
period as mutually agreed in writing by Seller and Purchaser), Purchaser may complete the Equipment Removal at its sole cost and
Seller shall reimburse Purchaser for any such costs incurred in connection with Purchaser’s completion of the Equipment
Removal. In connection with its obligations under this Section 6.22, Seller shall require all personnel engaged by Seller to
perform the Equipment Removal to comply with all applicable Laws and any applicable rules and protocols reasonably prescribed by
Purchaser for the Site, as in effect from time to time. Seller understands and agrees that Purchaser has the right to deny access to
the Site to any such personnel that Purchaser reasonably believes are not in compliance with the foregoing or present a hazard or a
material disruption to the Site. Seller shall, and shall cause its contractors to, execute and deliver such agreements or
acknowledgments in favor of Purchaser with respect to the access granted to Seller or its personnel in connection with the
performance of the Equipment Removal, as may be reasonably requested by Purchaser from time to time. Seller shall, and shall cause
it contractors performing the Equipment Removal to, carry and maintain insurance with coverages and amounts reasonably required by
Purchaser from time to time.”

 

    2

     

    

 

7. Additional
Exhibits and Schedule. The Parties hereby add a new “Exhibit E”, “Exhibit F”, “Exhibit
G” and “Schedule 1.3”, copies of which are attached to this Amendment.

 

8. Purchase
Price Adjustment. Based on the amendments to the Agreement set forth herein, the Parties acknowledge and agree that an adjustment
to the Purchase Price equal to $384,192.84 shall be paid by Seller to the account of Purchaser by a wire transfer of immediately available
funds on the Execution Date. Such Purchase Price adjustment shall consist of the following:

 

a.
$200,000 for the Corn Oil System; plus

 

b.
$50,000 for the Whitefox Equipment (Other); plus

 

c.
$134,192.84 for the PG&E Rule 21 Study Liability.

 

9. Miscellaneous.

 

a. This
Amendment amends and modifies the Agreement only to the extent of the items expressly noted herein. Except for those items expressly modified,
deleted or amended herein, all the terms, conditions, covenants and warranties contained in the Agreement are ratified as of the date
hereof, are incorporated herein by this reference and remain in full force and effect, unaltered and unchanged by this Amendment.

 

b. This
Amendment and the Agreement shall be binding upon the legal representatives, successors and assigns of the parties hereto.

 

c. The
Parties acknowledge and agree that any further modification, deletion, amendment or extension of the Agreement shall be the subject of
separate negotiations between the parties, and that the Agreement and this Amendment shall not be further modified or extended, except
by written instrument executed by all parties hereto.

 

[Signature Page Follows]

 

    3

     

    

 

IN WITNESS WHEREOF, the Parties
hereto have executed this Amendment by their authorized representatives.

 

	PURCHASER:	 
	 	 	 
	SEABOARD ENERGY CALIFORNIA, LLC	 
	 	 	 
	By:	/s/ Gary F.
    Louis	 
	Name:	Gary F. Louis	 
	Title:	President and Chief Executive Officer	 
	 	 	 
	SELLER:	 
	 	 	 
	PACIFIC ETHANOL MADERA LLC	 
	 	 	 
	By:	/s/ Patrick
    McKenzie	 
	Name:	Patrick McKenzie	 
	Title:	Vice President	 
	 	 	 
	SELLER PARENT:	 
	 	 	 
	ALTO INGREDIENTS, INC.	 
	 	 	 
	By:	/s/ Patrick
    McKenzie	 
	Name:	Patrick McKenzie	 
	Title:	Vice President	 

 

 

4

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