Document:

Exhibit 10.2

 

FIRST
AMENDMENT TO SECOND LIEN CREDIT AGREEMENT

 

This FIRST AMENDMENT TO
SECOND LIEN CREDIT AGREEMENT (this “Amendment”), dated as of December 13, 2013, is by and among Black
Ridge Oil & Gas, Inc., a Nevada corporation (“Borrower”), the several banks and other financial institutions
or entities party to this Amendment (the “Lenders”) and CHAMBERS ENERGY MANAGEMENT, LP, as the agent
(in such capacity, the “Agent”) under the Credit Agreement (as defined below).

 

WHEREAS, Borrower, the
Lenders and the Agent are parties to that certain Second Lien Credit Agreement, dated as of August 8, 2013 (as may be amended,
restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”);

 

WHEREAS, Borrower intends
to acquire (the “CP Acquisition”) certain Oil and Gas Properties of CP Exploration, LP (“Seller”)
pursuant to that certain Purchase and Sale Agreement, dated as of November 15, 2013, between Seller and Borrower (the “CP
Purchase Agreement”), which acquisition constitutes a Qualified Investment;

 

WHEREAS, in order to finance
the CP Acquisition, Borrower has requested that the Lenders agree to make certain amendments to the Credit Agreement in accordance
with Section 9.1 of the Credit Agreement;

 

WHEREAS, on the terms
and subject to the conditions contained herein, the Lenders are willing to make certain amendments to the Credit Agreement;

 

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

 

1.Defined Terms.

 

(a)Capitalized terms used but
not defined in this Amendment shall have the meanings ascribed to such terms in the Credit Agreement. The principles of interpretation
set forth in Section 1.2 of the Credit Agreement shall apply to the provisions of this Amendment.

 

(b)Each reference to “hereof’,
“hereunder”, “herein” and “hereby” and each other similar reference contained in the Credit
Agreement, each reference to “this Agreement” or “the Credit Agreement” and each other similar reference
contained in the Agreement or any other Loan Document and each reference contained in this Amendment to the “Credit Agreement”
shall on and after the First Amendment Effective Date (as defined below) refer to the Credit Agreement as amended by this Amendment.
Any notices, requests, certificates and other instruments executed and delivered on or after the First Amendment Effective Date
may refer to the Credit Agreement without making specific reference to this Amendment but nevertheless all such references shall
mean the Credit Agreement as amended by this Amendment unless the context otherwise requires.

 

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2.Amendments to
Credit Agreement. In reliance on the representations and warranties set forth in Section 3 below and subject to the
satisfaction of the conditions set forth in Section 4 below, the parties hereby agree to the following amendments:

 

(a)The definition of “Consolidated
EBITDA” appearing in Section 1.1 of the Credit Agreement is hereby amended by deleting the period appearing at the end of
such definition and inserting the following proviso immediately at the end of such definition:

 

“; provided that Consolidated EBITDA for
the third and fourth quarters of 2013 shall be subject to pro forma adjustments for the actual earnings derived from the Properties
acquired pursuant to that certain Purchase and Sale Agreement, dated as of November 15, 2013, between CP Exploration, LP and Borrower,
as if such acquisition had occurred on July 1, 2013.”

 

(b)The definition of “First
Lien Carve Out” appearing in Section 1.1 is hereby amended by replacing each reference to “$10,000,000” appearing
therein with “$18,000,000”. 

 

3.Representations
and Warranties of Borrower. The Borrower represents and warrants as of the date hereof and on the First Amendment Effective
Date to the Agent and each Lender that:

 

(a)Borrower (i) has the power
and authority, and the legal right, to make, deliver and perform this Amendment and (ii) has taken all necessary corporate or other
action to authorize the execution, delivery and performance of this Amendment;

 

(b)No consent or authorization
of, filing with, notice to or other act by or in respect of, any Governmental Authority or any other Person is required to be obtained
by Borrower in connection with the execution, delivery, performance, validity or enforceability of this Amendment;

 

(c)This Amendment (i) has been
duly executed and delivered on behalf of Borrower and (ii) constitutes a legal, valid and binding obligation of Borrower, enforceable
against Borrower in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law);

 

(d)The execution, delivery and
performance of this Amendment will not result in a violation by Borrower of any Requirement of Law or any Contractual Obligation
of Borrower and will not result in, or require, the creation or imposition of any Lien on any of its Properties or revenues pursuant
to any Requirement of Law or any such Contractual Obligation;

 

(e)After giving effect to the
amendments set forth herein, the representations and warranties made by any Loan Party in or pursuant to the Loan Documents are
true and accurate as of the date hereof with the same force and effect as if such had been made on and as of the date hereof;

 

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(f)Borrower is in compliance
in all material respects with all terms and provisions set forth in the Loan Documents to which it is a party;

 

(g)The CP Acquisition constitutes
a Qualified Investment and is permitted under the terms of the Loan Documents (as amended hereby) and the First Lien Loan Documents
(as the same may be amended in connection with this Amendment); and

 

(h)No Default or Event of Default
has occurred and is continuing.

 

4.Conditions Precedent.
The effectiveness of this Amendment is subject to the satisfaction of the following conditions precedent (the date of satisfaction
of such conditions precedent, the “First Amendment Effective Date”):

 

(a)The Agent shall have received
(i) this Amendment duly executed and delivered by a Responsible Officer of Borrower and (ii) a duly executed and delivered Mortgage
covering each of the Properties acquired pursuant to the CP Acquisition and certain other Oil and Gas Properties acquired by any
Loan Party after the Closing Date;

 

(b)The Agent shall have received a fully
executed copy of (i) the CP Purchase Agreement and all amendments, supplements, modifications or waivers thereto, each certified
by Borrower as being true and complete copies and in full force and effect and (ii) an amendment to the First Lien Credit Agreement
in form and substance reasonably satisfactory to the Agent;

 

(c)Borrower shall have paid, or caused
to be paid, each of the outstanding invoices of Latham & Watkins, LLP, counsel for the Agent;

 

(d)The Agent shall have received the executed
opinion of Leonard, Street and Deinard, with respect to enforceability of the Mortgage delivered pursuant to Section 4(a) above
and such other matters as the Agent shall reasonably request; and

 

(e)Borrower shall have executed and delivered,
or shall have caused to be executed and delivered, such other items as the Agent may reasonably request, each of which shall be
in form and substance reasonably satisfactory to the Agent.

 

5.Loan Documents.
(a)This Amendment shall constitute a Loan Document, as such term is defined in the Credit Agreement. This Amendment is not
intended to nor shall it be construed to create a novation or accord and satisfaction with respect to any of the Obligations.

 

6.Severability. Any provision of this
Amendment that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

7.Integration. This
Amendment and the other Loan Documents represent the entire agreement of the Loan Parties, the Agent and the Lenders with respect
to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Agent or
any Lender relative to subject matter hereof not expressly set forth or referred to herein or in the other Loan Documents.

 

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8.GOVERNING LAW. THIS AMENDMENT
AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

9.Survival. The
representations and warranties contained in Section 3 of this Amendment shall survive the execution and delivery of this
Amendment and the First Amendment Effective Date.

 

10.Ratification; No Waiver; No
Other Amendments. Except as expressly modified hereby, the Credit Agreement and each other Loan Document are each hereby
ratified and confirmed by the parties hereto and remain in full force and effect in accordance with the respective terms
thereof. Other than as otherwise expressly provided herein, this Amendment shall not be deemed to operate as an amendment or
waiver of, or to prejudice, any right, power, privilege or remedy of any Lender, the Agent or any other Indemnitee under the
Credit Agreement or any of the other Loan Documents, nor shall the entering into of this Amendment preclude any such Person
from refusing to enter into any further amendments with respect to the Credit Agreement or any of the other Loan Documents.
Other than as to otherwise expressly provided herein, this Amendment shall not constitute a waiver of compliance with any
covenant or other provision in the Agreement or any other Loan Document or of the occurrence or continuance of any present or
future Default or Event of Default.

 

11.Costs; Expenses. Subject to and in
accordance with Section 9.5 of the Credit Agreement, regardless of whether the transactions contemplated by this Amendment are
consummated, Borrower agrees to pay on demand all reasonable out-of-pocket costs and expenses of the Agent and each Lender incurred
in connection with the development, preparation, execution and delivery of this Amendment, including the reasonable fees and disbursements
and other charges of counsel and consultants to the Agent.

 

12.Headings. The section headings contained
in this Amendment are inserted for convenience only and will not affect in any way the meaning or interpretation of this Amendment.

 

13.Amendments; Intercreditor Agreement Authorization.
This Amendment may not be amended or modified except in the manner specified for an amendment of or modification to the Credit
Agreement in Section 9.1 of the Credit Agreement. By executing this Amendment, each Lender party hereto authorizes and directs
the Agent to enter into an amendment to the Intercreditor Agreement to amend the definition of “Maximum Priority First Lien
Amount” set forth therein in a manner consistent with the amendment to the definition of “First Lien Carve Out”
set forth herein.

 

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IN WITNESS WHEREOF, the
parties hereto have caused this Amendment to be duly executed under seal and delivered by their respective duly authorized officers
on the date first written above.

 

 

BLACK RIDGE OIL & GAS, INC.,

as Borrower

 

By:/s/ Kenneth DeCubellis

Name:Kenneth DeCubellis

Title:Chief Executive Officer

 

 

CHAMBERS ENERGY MANAGEMENT, LP,

as the Agent

 

By:/s/ J. Robert Chambers

Name:J. Robert Chambers

Title:President & Chief Executive Officer

 

 

CHAMBERS ENERGY CAPITAL II, LP,

as a Lender

 

 By: CEC Fund II GP, LLC, its general partner

 

By:/s/ J. Robert Chambers

Name:J. Robert
Chambers

Title:Managing Director

 

 

CHAMBERS ENERGY CAPITAL II TE, LP,

as a Lender

 

		By:	CEC Fund II GP, LLC, its general partner

 

By: /s/ J. Robert Chambers

Name:J.
Robert Chambers

Title:Managing Director

 

    	5Exhibit 10.1

 

Pacific Ethanol, Inc.

400 Capitol Mall, Suite 2060

Sacramento, CA 95814

 

December 16, 2013

 

Holders of the Company’s

Senior Unsecured Notes

Dated January 11, 2013

Identified on Schedule 1 hereto

 

		Re:	Payments in Kind

 

Gentlemen:

 

This letter agreement
(the “Letter Agreement”) is entered into as of December 16, 2013 among the undersigned holders (collectively,
the “Holders”) of Senior Unsecured Notes dated January 11, 2013 (the “Notes”), and Pacific
Ethanol, Inc. (the “Company”). Capitalized terms not otherwise defined herein shall have the meanings given
them in the Notes.

 

The Company intends to
make a prepayment to Candlewood Special Situations Master Fund, Ltd. (“CSSM”) and CWD OC 522 Master Fund Ltd. (“CWD
OC 522”) in the aggregate amount of $2,000,000, and CSSM and CWD OC 522 (together, the “Funds”) desire to receive
such prepayment in kind, in the form of shares of the Company’s common stock (the “Common Stock”), all
with the consent of all Holders as provided below.

 

 

In consideration of the
mutual covenants herein contained, and for other valuable consideration the receipt and sufficiency of which is hereby acknowledged,
the parties hereby agree as follows:

 

1.              
Prepayment of Notes; Delivery of Shares. The Company shall pay to each Fund the sum set opposite such Fund’s
name on the signature page hereto (the “Payments”) by issuing and delivering to such Fund the number of shares
(collectively, the “Shares”) of the Company’s Common Stock equal to the quotient obtained by dividing
(a) such Fund’s Payment, by (b) $4.00. The Payments shall be applied to the outstanding principal balance of the Notes. The
offering and issuance of the Shares (the “Offering”) are being made pursuant to (a) an effective Registration
Statement on Form S-3 (File No. 333-180731) (including the prospectus contained therein), filed by the Company with the Securities
and Exchange Commission (the “Commission”), and (b) a prospectus supplement containing certain supplemental
information regarding the terms of the Offering of the Shares, that will be filed with the Commission on the date hereof and delivered
to each Holder (or may available to each Holder by the filing by the Company of an electronic version thereof with the Commission).
On the day that is the third Trading Day after the date hereof, the Company shall deliver to each Holder that number of Shares
set forth opposite such Holder’s name on the signature page hereto through the facilities of the Depository Trust Company’s
DWAC system. For purposes hereof, the term “Trading Day” shall mean any day on which the Common Stock is traded
on the principal securities exchange or securities market on which the Common Stock is then traded.

 

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2.              
Consent to Non-Pro Rata Prepayment. The Holders each hereby consent to the Payments to the Funds and waive
the requirements of Section 1.2 of the Notes which provides that “any [prepayment] shall be applied pro rata to the Note
and the Other Notes in accordance with the respective Principal amounts thereof.” Notwithstanding any provision of the Notes
to the contrary, the Holders agree that the consummation of the transactions contemplated hereby shall be deemed to conform to
the requirements of the Notes in all respects. The consent and waiver in this Letter Agreement is strictly limited to the one prepayment
contemplated by this Letter Agreement, and nothing in this Letter Agreement shall be (i) deemed to constitute a waiver of compliance
by the Company with respect to any other term, provision or condition of the Notes, or (ii) prejudice any right or remedy that
any Holder may have under or in connection with the Notes.

 

3.              
Effect of Letter Agreement. The Payments do not constitute a payment in full of the Notes. Except as expressly
set forth in this Letter Agreement, all of the terms and provisions of the Notes shall remain in full force and effect.

 

4.              
Entire Agreement. This Letter Agreement constitutes the entire agreement between the parties with respect
to the subject matter hereof and supersedes any prior understandings, agreements or representations by or between the parties,
written or oral, to the extent they relate in any way to the subject matter hereof.

 

5.              
Amendments. This Letter Agreement may not be amended or modified, and no provisions hereof may be waived,
without the written consent of the Company and all of the Holders.

 

6.              
Governing Law. This Letter Agreement shall be construed and enforced in accordance with, and all questions
concerning the construction, validity, interpretation and performance of this Note shall be governed by, the internal laws of the
State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New
York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New
York.

 

7.              
Counterparts. This Letter Agreement may be executed, including by facsimile signature, in one or more counterparts,
each of which shall be deemed an original but all of which together will constitute one and the same instrument.

 

 

 

[Signatures Follow.]

 

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In witness whereof,
the parties have executed this Letter Agreement as of the first date set forth above.

 

PACIFIC ETHANOL, INC.

 

 

 

By: /s/ Neil M. Koehler                                            

Neil M. Koehler, Chief Executive Officer

 

 

	HOLDERS:		PAYMENT AMOUNT:
	 	 	 	 
	CWD OC 522 MASTER FUND LTD.	 	 
	By: Candlewood Investment Group,	 	 
	        as investment manager	 	 
	By:	/s/ David Koenig	 	$  664,523
	Name: 	David Koenig	 	 
	Title: 	Authorized Signatory	 	 
	 	 	 	 
	 	 	 	 
	CANDLEWOOD SPECIAL SITUATIONS MASTER FUND, LTD.	 	 
	By: Candlewood Investment Group,	 	 
	         as investment manager	 	 
	By:	/s/ David Koenig	 	$1,335,477
	Name: 	David Koenig	 	 
	Title: 	Authorized Signatory	 	 
	 	 	 	 
	 	 	 	 
	Credit Suisse Loan Funding LLC	 	 
	By:	/s/ Robert Healey	 	 
	Name: 	Robert Healey	 	 
	Title: 	Authorized Signatory	 	 
	 	 	 	 
	By	/s/ Michael Wotanowski	 	 
	Name: 	Michael Wotanowski	 	 
	Title:	Authorized Signatory	 	 

 

 

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Schedule
1

 

Holders of Notes

 

CWD OC 522 Master Fund Ltd.

c/o Candlewood Investment Group

777 Third Ave, Suite 19B, NY NY 10017

Attention: Peter Dowling

 

Candlewood Special Situations Master Fund, Ltd.

c/o Candlewood Investment Group

777 Third Ave, Suite 19B, NY NY 10017

Attention: Peter Dowling

 

Credit Suisse Loan Funding LLC

Eleven Madison Avenue, 5th Floor

Attn: Jonothan Satran

New York, NY 10010-3629

 

 

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