Document:

Exhibit 10.3

 

Execution Version

 

NOTE
AMENDMENT NO. 5

 

THIS
NOTE AMENDMENT NO. 5 (this “Amendment”) is dated as of March 20, 2020 by and among Pacific Ethanol, Inc., a
Delaware corporation (the “Company”) and the Noteholders. Capitalized terms used and not otherwise defined
in this Amendment shall have the meanings attributed to them in the Amended Note Agreement and Notes (as defined below).

 

RECITALS:

 

WHEREAS,
pursuant to that certain Senior Secured Note Amendment Agreement dated December 22, 2019 (the “Amended Note Agreement”)
between the Company and the Noteholders, the Company has issued those certain Amended and Restated Senior Secured Notes with an
Issuance Date of December 22, 2019 in the aggregate original principal amount of $65,649,177.91 (the “Notes”);

 

WHEREAS,
the Company has requested, and the Noteholders have agreed to defer the due date of the March 15, 2020 interest payment to May
20, 2020; and

 

WHEREAS,
the Company and the Noteholders desire to amend the Notes to extend the time for the payment of such interest payment, among other
amendments as set forth herein.

 

AGREEMENT:

 

NOW,
THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Company and the Noteholders agree as follows:

 

1. Amendments
to the Notes.

 

(a) Section
2 of the Notes is hereby amended by amending and restating the first sentence of Section 2 to read as follows:

 

“Interest
on this Note shall accrue at the applicable Interest Rate and shall commence accruing on the Issuance Date and Interest shall
be computed on the basis of a 360-day year and twelve 30-day months and shall be payable in cash to the record Holder in arrears
on March 15, June 15, September 15 and December 15 of each calendar year and ending on the repayment of the Note; provided,
however, that notwithstanding the foregoing, Interest for the period ending March 15, 2020 shall not be payable until May
20, 2020 unless an Event of Default occurs in which case such Interest shall be payable on demand of the Holder.”

 

     

     

    

 

(b) A
new Section 5.18 is hereby added to the Notes to read as follows:

 

“5.18 CoBank
Reporting. If requested by Holder, the Company shall deliver a copy of each Budget, Variance Report (as such terms are
defined in the CoBank Debt Documents) and any accounts payable aging reports and accounts receivable aging reports delivered
to CoBank under the CoBank Debt Documents to the Holder within one (1) Business Day of the Holder’s request, or, if
requested one (1) Business Day prior to the delivery thereof to CoBank, concurrently with the delivery thereof to CoBank. By
requesting such information, Holder is deemed to have acknowledged that such Rolling 13-Week Cash Flow Forecasts, Variance
Reports and Payable and Receivable Reports may contain material non-public information about the Company and its Subsidiaries
and agrees that it will keep all such information confidential in accordance with the non-disclosure agreement between the
Holder and the Company and, if no such non-disclosure agreement exists, the Holder and the Company shall first enter into
such a non-disclosure agreement in form and substance reasonably satisfactory to the Company and the Holder.

 

(c) A
new Section 5.19 is hereby added to the Notes to read as follows:

 

“5.19.
Milestones. The Company shall deliver to the Holder (but only if the Holder has requested the same) the following items, on
or before the dates specified with respect to such items (the “Milestones”):

 

(a) On
or before April 20, 2020 (or such later date as CoBank may approve under the CoBank Debt Documents), a term sheet outlining the
terms of a comprehensive balance sheet plan.

 

(b) On
or before April 20, 2020 (or such later date as CoBank may approve under the CoBank Debt Documents), a detailed 13-week cash flow
budget, outlining the Company’s capital needs.”

 

(d) A
new Section 5.20 is hereby added to the Notes to read as follows:

 

“5.20. CRO.

 

(a) The
Company shall provide the Holder and its agents and advisors with access to the chief restructuring officer (the “CRO”),
and the CRO shall provide the Holder with a weekly telephonic update (provided that the Company shall only be required to provide
one such update each week for all the “Noteholders” as defined in the Note Amendment Agreement at a time approved
by the Required Holders) but only if the Holder has requested the same) as to the Company’s operations and restructuring
progress. By requesting or participating in such updates, Holder shall be deemed to have acknowledged that such updates may disclose
material non-public information about the Company and its Subsidiaries and agrees that it will keep all such information confidential
in accordance with the non-disclosure agreement between the Holder and the Company and, if no such non-disclosure agreement exists,
the Holder and the Company shall first enter into such a non-disclosure agreement in form and substance reasonably satisfactory
to the Company and the Holder.

 

(b) The
Company shall not terminate or replace Winston Mar as the CRO or reduce the authority of the CRO without the prior written consent
of the Required Holders.”

 

    2

     

    

 

(e) The
following sub-sections of Section 3.1 of the Notes are hereby amended in full to read as follows:

 

“(a)
(i) the Company’s failure to pay to the Holder on the Maturity Date all amounts then due and owing under the Note,
including the outstanding Principal, all accrued but unpaid Interest and any other amounts which are then due and owing in
accordance herewith, or (ii) the Company’s or any Subsidiary’s failure to pay to the Holder, or its agent, any
amount of Principal, Interest and any other amounts required to be paid hereunder or under any other Transaction Document as
and when due hereunder or thereunder and such failure remains uncured for a period of five (5) days;”

 

“(g)
(i) any breach or failure in any respect by the Company to comply with any provision of Section 5.14, Section 5.19 or Section
5.20(b) of this Note, or (ii) any breach or failure in any respect by the Company or any Subsidiary to comply with any
provision of this Note or any other Transaction Document for thirty (30) days after delivery to the Company of notice of such
breach or failure by or on behalf of a Secured Party (as defined in the Security Agreement) or the Agent (as defined in the
Security Agreement) or thirty (30) days after an officer of the Company or a Subsidiary has knowledge of such breach or
failure, unless such default is capable of cure but cannot be cured within such time frame and the Company and such
Subsidiary is using best efforts to cure the same in a timely manner;”

 

“(i)
any provision of any Transaction Document shall at any time for any reason (other than pursuant to the express terms thereof)
ceases to be valid and binding on or enforceable against the parties thereto, or the validity or enforceability thereof shall
be contested by any party thereto, or a proceeding shall be commenced by the Company or any Subsidiary or any governmental
authority having jurisdiction over any of them, seeking to establish the invalidity or unenforceability thereof, or the
Company or any Subsidiary shall deny in writing that it has any liability or obligation purported to be created under any
Transaction Document to which it is a party, or any Lien created by any Collateral Document ceases to be enforceable and of
the same effect and priority purported to be created thereby, other than as expressly permitted thereunder or
thereunder;”

 

“(n)
any representation, warranty, certification or other statement of fact made or deemed made by or on behalf of the Company or
any Subsidiary herein or in any other Transaction Document proves to have been false or misleading in any material respect on
or as of the date made or deemed made; or”

 

(f)
 The following definitions in Section 19 of the Notes are hereby amended in full to read
as follows:

 

“Intercreditor
Agreement” means that certain Intercreditor Agreement, dated as of March 20, 2020, made by any among Cortland Products
Corp., as “Notes Agent”, CoBank, ACB, as “CoBank Agent”, the Company and each of the other grantors party
thereto, as may be amended, restated, supplemented or otherwise modified from time to time.

 

    3

     

    

 

“Subsidiary”
means any Person in which the Company, directly or indirectly, (i) owns any of the outstanding capital stock or holds any equity
or similar interest of such Person or (ii) controls or operates all or any part of the business, operations or administration
of such Person.

 

“Transaction
Documents” means the Notes, the Security Agreement, the Note Amendment Agreement and the schedules and exhibits attached
thereto, the Purchase Agreement, the Warrants, the Registration Rights Agreement, the Transfer Agent Instructions, the Collateral
Documents, and the Intercreditor Agreement, together with any amendments, restatements, extensions or other modifications thereto.

 

(g) Payment-in-Kind.
Until evidenced by a new Note as described in Section 2(c) below, the aggregate principal amount of the Notes of each of the Noteholders
listed in Section 2(c) below shall be increased by an amount equal to 0.25% of the aggregate principal amount of such Noteholder’s
Notes on the date hereof, immediately prior to such increase, and such increased amount shall be deemed to be principal of such
Notes for all purposes, including accrual of interest.

 

2.
 Conditions Precedent to The Effectiveness of This Amendment. This Amendment will
become effective on the date the following conditions are satisfied (the “Effective Date”):

 

(a)
receipt by the Noteholders of the following documents, duly executed by each party thereto, each in form and substance
reasonable satisfactory to the Noteholders: (i) this Amendment; (ii) the Collateral Documents as required to be delivered by
the Noteholders; (iii) the Intercreditor Agreement; (iv) that certain Third Amendment to Security Agreement dated as of the
date hereof by and among the Company, all Noteholders, Cortland Products Corp., as successor agent, and Cortland Capital
Market Services LLC, as existing collateral agent; (v) that certain Agent Fee Letter dated as of the date hereof between the
Company and Cortland Products Corp.; (vi) the mortgages, deeds of trust, pledge agreements, security agreements and other
collateral documents with respect to the collateral of CoBank, together with all amendments to the debt instruments with
CoBank; and (vii) certificates executed by a secretary or assistant secretary of the Company or its Subsidiaries party to the
Collateral Documents, as applicable, certifying as to (A) the resolutions authorizing the transactions contained in the
Collateral Documents, (B) their respective certificates of formation or articles of incorporation, and (C) their respective
bylaws or operating agreements, as amended, each as in effect on the Effective Date.

 

(b)
receipt by the Noteholders of evidence of the payment in full of all fees, costs and expenses of Morrison & Foerster LLP,
such fees, costs and expenses due and payable to Morrison & Foerster LLP in an amount not to exceed $100,000, Cortland
Products Corp. in an amount not to exceed $10,000, and Arnold & Porter Kaye Scholer LLP in an amount not to exceed
$32,784.60;

 

    4

     

    

 

(c)
receipt by the following Noteholders of an amendment fee in the amount of 0.25% of the Principal amount of each of the
following Noteholders’ Notes payable as compounded interest and added to the aggregate principal amount of each such
Note (the amount of any such compounded interest being a “PIK Loan”) (the “Amendment Fee”),
which PIK Loan, shall be evidenced, within three (3) Business Days after the date hereof, by a note substantially in the form
of the PIK Notes (such notes to reflect further amendments made to the Notes since the issuance of the PIK Notes), in form
and substance satisfactory to the following Noteholders and the Company: CIF-Income Parts (A), LLC, Orange 2015 Dislocredit
Fund, L.P., Sainsbury’s Credit Opportunities Fund, Ltd., Co-Investment Income Fund, L.P. – US Taxable Series,
Co-Investment Income Fund, L.P. – US Tax-Exempt Series, Corrum Capital Alternative Income Fund LP, Corrum Capital
Global Credit Opportunities Co Investment Fund I LP, and Corrum Capital Global Credit Opportunities Fund LP; and

 

(d)
the representations and warranties in Section 4 are true and correct.

 

All
fees, costs and expenses paid hereunder (excluding the Amendment Fee) shall be paid in immediately available funds, and, including
the Amendment Fee, nonrefundable and shall not be subject to reduction by way of setoff, counterclaim, or otherwise.

 

3. Post-Closing
Obligations. The Company shall: (a) deliver to the title company within five (5) Business Days after the date hereof (or such
other date as agreed to by the Required Holders in their discretion via electronic mail), (i) the deeds of trust with respect
to the Western Assets, in each case providing for a first-priority, secured and perfected Lien on all of the Western Assets in
favor of the Noteholders, (ii) the mortgages with respect to the collateral of CoBank in the real property assets of the Company
and its Subsidiaries, (b) deliver to the Agent, within five (5) Business Days after the date hereof (or such other date as agreed
to by the Required Holders in their discretion via electronic mail), title insurance policies and endorsements, or marked title
commitments, with respect to the mortgages and deeds of trust reference in clauses (a)(i) and (a)(ii) above; (b) use commercially
reasonable efforts to deliver to the Agent, on or before April 30, 2020 (or such other date as agreed to by the Required Holders
in their discretion via electronic mail), a deposit account control agreement in favor of the Agent covering the deposit account
held by Pacific Ethanol West, LLC, a Delaware limited liability company, in form and substance reasonably satisfactory to the
Agent and the Required Holders; and (ii) customary legal opinions, subject to limitations, assumptions and qualifications which
are either customary or appropriate for transactions of type contemplated by this Amendment, addressing the subjects set forth
on Exhibit A attached hereto and incorporated herein by reference in connection with the Collateral Documents. If on the
date the items in clause (a)(i) and (a)(ii) are due, the applicable title company cannot accept such deeds of trust or mortgages
for recording as a result of a government-mandated closure, the due date for delivery of such items shall be deemed to be the
next Business Day such title company accepts the deeds of trust or mortgages for recording.

 

4. Representations
and Warranties. To induce the Noteholders to enter into this Amendment, the Company represents and warrants that

 

(a) the
representations and warranties contained in the Note Amendment Agreement are true and correct in all material respects as of the
date hereof, except to the extent any such representation or warranty is stated to relate solely to an earlier date, in which
case such representation or warranty shall have been true and correct on and as of such earlier date (for purposes of this Section,
each reference to Transaction Document therein shall be deemed to include a reference to this Amendment and each of the other
Transaction Documents being entered into in connection with this Amendment); and

 

    5

     

    

 

(b) both
before and after giving effect to the transactions contemplated by this Amendment and the other Transaction Documents being entered
into in connection with this Amendment, there exists no Default or Event of Default.

 

5.
 Reaffirmation. The Company hereby affirms and agrees that: (a) the execution
and delivery by the Company or any Subsidiary of and the performance of such Person’s obligations thereunder shall not in
any way amend, impair, invalidate or otherwise affect any of such Person’s obligations under the Notes or any other Transaction
Document, except as expressly amended hereby, (b) the Notes and the other Transaction Documents remain in full force and effect
as written, except as expressly amended hereby, and (c) each Collateral Document remains in full force and effect to provide collateral
security for the obligations under the Notes and the other Transaction Documents.

 

6. Release.
To the extent that any offsets, defenses or claims that may exist arising out of or relating to this Amendment, the Notes or any
of the other Transaction Documents and the transactions contemplated thereby against the Agent (as defined in the Security Agreement),
any Noteholder or any of their respective subsidiaries, affiliates, officers, directors, employees, agents, attorneys, predecessors,
successors or assigns, both present and former (collectively, the “Released Parties”) whether asserted or unasserted,
by execution of this Amendment, the Company, for itself and its subsidiaries and affiliates and each of their respective successors,
assigns, affiliates, subsidiaries, predecessors, employees, heirs and executors, as applicable (collectively, “Releasors”),
jointly and severally, release and forever discharge each of the Released Parties of and from any and all manner of actions, causes
of action, torts, suits, debts, controversies, damages, judgments, executions, claims and demands whatsoever, asserted or unasserted,
in law or in equity, that exist or have occurred on or prior to the date of this Amendment, arising out of or relating to this
Amendment, the Notes or any of the other Transaction Documents which any of the Releasors ever had or now have against any of
the Released Parties, including, without limitation, any presently existing claim whether or not presently suspected, contemplated
or anticipated.

 

7. Costs
and Expenses, Indemnification, etc.

 

(a) Notwithstanding
anything to the contrary in any other Transaction Document and in addition to all of the other obligations under the Transaction
Documents, the Company shall pay all out of pocket expenses fees, expenses and disbursements of Morrison & Foerster LLP invoiced
on or before the date hereof and Arnold & Porter Kaye Scholer LLP in connection with (i) the preparation, negotiation, execution
and delivery of the Transaction Documents, including the post-closing obligations described in Section 3 above, which the parties
acknowledge and agree, in the case of Morrison & Foerster LLP, is $215,000 (prior to the payment of $100,000 described in
Section 2(b) above), (ii) any amendments, modifications or waivers of the provisions to the Transaction Documents (whether or
not the transactions contemplated thereby shall be consummated) and (iii) the enforcement or protection of its rights in connection
with the Transaction Documents, including its rights under this Section, as incurred during any workout, restructuring or negotiations
in respect thereof and the fees, charges and disbursements of counsel (provided that in the case of clauses (ii) and (iii) and
any financial advisor or law firm, such amounts shall be limited to one financial advisor or law firm for the Agent and one financial
advisor or law firm for all “Noteholders” (other than, in the case of a law firm, any bona fide conflict of interest)
plus one law firm of local counsel in each relevant jurisdiction). The payment required by sub-clause (i) above shall be paid
as soon as possible and, in any case, no later than April 15, 2020 (it being understand that failure to pay such amount as so
provided shall be an immediate Event of Default).

 

    6

     

    

 

(b) Notwithstanding
anything to the contrary in any other Transaction Document and in addition to all of the other obligations under the Transaction
Documents, the Company shall defend, protect, indemnify and hold harmless the Agent (as defined in the Security Agreement), each
Noteholder and all of their respective affiliates, stockholders, partners, members, officers, directors, employees and direct
or indirect Noteholders and any of the foregoing Persons’ agents or other representatives and those retained in connection
with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”) from and against any
and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection
therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought),
and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred
by any Indemnitee as a result of, or arising out of, or relating to (a) any misrepresentation or breach of any representation
or warranty made by the Company or any Subsidiary in the Transaction Documents or any other certificate, instrument or document
contemplated hereby or thereby, (b) any breach of any covenant, agreement or obligation of the Company or any Subsidiary contained
in the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby (c) any actual or
alleged presence or release of hazardous materials on or from any property owned or operated by the Company or any Subsidiary,
or any environmental liability related in any way to the Company or any Subsidiary, or (d) any cause of action, suit or claim
brought or made against such Indemnitee by a third party (including for these purposes a derivative action brought on behalf of
the Company or any Subsidiary) and arising out of or resulting from (i) the execution, delivery, performance or enforcement of
the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby, or (ii) the status
of such Noteholder as a Noteholder of the Company pursuant to the transactions contemplated by the Transaction Documents; provided,
however, that no Noteholder will be entitled to indemnification hereunder for any Indemnified Liabilities resulting, as determined
by a non-appealable judgement of a court of competent jurisdiction from (w) such Indemnitee’s material breach of applicable
laws, rules or regulations, including, without limitation, any breach by such Indemnitee of any federal or state securities laws,
rules or regulations with respect to short sales or other hedging activities, (x) such Indemnitee’s breach of any environmental
laws, rules or regulations, (y) such Noteholder’s or Indemnitee’s material breach of any covenant, agreement or obligation
of such Noteholder contained in the Transaction Documents or any other certificate, instrument or document contemplated hereby
or thereby or (z) the gross negligence or willful misconduct of such Indemnitee. To the extent that the foregoing undertaking
by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction
of each of the Indemnified Liabilities that is permissible under applicable law.

 

    7

     

    

 

(c) To
the fullest extent permitted by applicable law, the Company hereby agrees on behalf of itself and each of its subsidiaries and
affiliates that is shall not assert, and hereby waives, any claim against any of the Released Parties, on any theory of liability,
for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection
with, or as a result of, this Amendment, any other Transaction Document or any agreement or instrument contemplated hereby, the
transactions contemplated hereby or thereby, any Note, or the use of the proceeds thereof.

 

(d) All
amounts due under this Section shall be payable within fifteen (15) days after demand therefor.

 

(e) Each
party’s obligations under this Section shall survive the termination of the Transaction Documents and payment of the obligations
thereunder.

 

8. No
other Amendments; Counterparts; etc. Except as otherwise provided in this Amendment, no other amendments to the Notes are
hereby made or intended and the Notes remain in full force and effect and legally binding on the Company. This Amendment may be
executed in counterparts, all of which when taken together will constitute one and the same document. If any provision of this
Amendment is held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions
of this Amendment shall not in any way be affected or impaired thereby. This Amendment is a Transaction Document.

 

9. Governing
Law. This Amendment shall be construed and enforced in accordance with, and all questions concerning the construction, validity,
interpretation and performance of this Amendment 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.

 

[Signature
Pages Follow]

 

    8

     

    

 

 

IN
WITNESS WHEREOF, the Company and the Noteholders have executed this Note Amendment No. 5 as of the date first set forth above.

 

	 	 	COMPANY:
	 	 	 
	 	 	PACIFIC
    ETHANOL, INC.
	 	 	 
	 	By:	/s/
    Bryon T. McGregor
	 	 	Name:  Bryon
    T. McGregor
	 	 	Title:  Chief
    Financial Officer

 

[Noteholders’
Signature Pages Follow]

 

    9

     

    

 

ACCEPTED
AND AGREED:

 

NOTEHOLDERS:

 

CKP SOUTH LLC

 

	By:	 /s/ Philip DeSantis	 
	 	 	 
	Name: 	 Philip DeSantis	 
	 	 	 
	Title:	 	 

 

[Holder Signature
Page to Note Amendment No. 5]

 

    10

     

    

 

	CIF-INCOME
    PARTNERS (A), LLC	 
	 	 
	By:
    BlackRock Financial Management, Inc.,	 
	its
    investment manager	 

 

	By:	 /s/ Stephen Kavulich	 

 

	Name:  	Stephen Kavulich	 
	 	 
	Title: 	Director	 

 

[Holder Signature Page to Note Amendment No. 5]

 

    11

     

    

 

	ORANGE
    2015 DISLOCREDIT FUND, L.P.	 
	 	 
	By:
    BlackRock Financial Management, Inc.,	 
	its
    investment manager	 
	 	 
	By:	 /s/ Stephen Kavulich	 
	 	 
	Name:  	Stephen Kavulich	 
	 	 
	Title:	 Director	 

  

[Holder Signature Page to Note Amendment No. 5]

 

    12

     

    

 

	Sainsbury’s Credit Opportunities Fund, Ltd. 
	 
	By:
    BlackRock Financial Management, Inc.,	 
	its
    investment manager	 
	 	 
	By: 	/s/ Stephen Kavulich	 
	 	 
	Name: 	Stephen Kavulich	 
	 	 
	Title:	 Director	 

 

[Holder Signature Page to Note Amendment No. 5]

 

    13

     

    

 

	Co-Investment Income Fund, L.P. - US Taxable Series
	 
	By:
    BlackRock Financial Management, Inc.,	 
	its
    investment manager	 
	 	 
	By: 	/s/ Stephen Kavulich	 
	 	 
	Name:	 Stephen Kavulich	 
	 	 
	Title: 	Director	 

 

[Holder Signature Page to Note Amendment
No. 5]

 

    14

     

    

 

	Co-Investment Income Fund, L.P. - US Tax-EXEMPT Series
	 	 
	By:
    BlackRock Financial Management, Inc.,	 
	its
    investment manager	 
	 	 
	By: 	/s/ Stephen Kavulich	 
	 	 
	Name:	 Stephen Kavulich	 
	 	 
	Title:	 Director	 

 

[Holder Signature Page to Note Amendment
No. 5]

   

    15

     

    

 

	ALFRED J. DE LEO	 
	 	 
	/s/ Alfred J. De Leo	 

 

[Holder Signature Page to Note Amendment
No. 5]

 

    16

     

    

 

	CORRUM CAPITAL ALTERNATIVE INCOME FUND LP
	 	 	 
	By: 	/s/ Jonathan R. Mandle 	 
	 	 	 
	Name:  	Jonathan R. Mandle	 
	 	 	 
	Title:	Manager	 

 

[Holder
Signature Page to Note Amendment No. 5]

 

    17

     

    

 

	CORRUM CAPITAL GLOBAL CREDIT OPPORTUNITIES
	CO INVESTMENT FUND I LP	 
	 	 	 
	By:	/s/ Jonathan R. Mandle	 
	 	 	 
	Name:	Jonathan R. Mandle	 
	 	 	 
	Title: 	Manager	 

  

[Holder
Signature Page to Note Amendment No. 5]

 

    18

     

    

 

	CORRUM CAPITAL GLOBAL CREDIT OPPORTUNITIES FUND LP
	 	 	 
	By:	/s/ Jonathan R. Mandle	 
	 	 	 
	Name:	Jonathan R. Mandle	 
	 	 	 
	Title: 	Manager	 

 

[Holder
Signature Page to Note Amendment No. 5]

 

    19

     

    

 

	DAVID
    KOENIG	 
	 	 
	/s/
    David Koenig	 

 

[Holder
Signature Page to Note Amendment No. 5]

 

    20

     

    

 

	JONATHAN
    W. WEISS	 
	 	 
	/s/
    Jonathan W. Weiss	 

  

[Holder
Signature Page to Note Amendment No. 5]

 

    21

     

    

 

	JUSTIN
    S. WOHLER	 
	 	 
	/s/ Justin S. Wohler	 

 

[Holder
Signature Page to Note Amendment No. 5]

 

    22

     

    

 

	PHILIP
    DESANTIS	 
	 	 
	/s/
    Philip DeSantis	 

 

[Holder
Signature Page to Note Amendment No. 5]

 

    23

     

    

 

Exhibit
A

 

Legal
Opinion Subjects

 

		1.	Existence
                                         and good standing of each Delaware Loan Party (as defined below)

 

		2.	Corporate
                                         or limited liability company power of each Delaware Loan Party to execute, deliver and
                                         perform the Collateral Documents to which it is a party

 

		3.	Due
                                         authorization, execution and delivery by each Delaware Loan Party of the Collateral Documents
                                         to which it is a party.

 

		4.	Enforceability
                                         of the Pledge Agreements and Security Agreements which are included in the Collateral
                                         Documents and which by their terms are governed by New York

 

		5.	Delaware
                                         UCC Perfection by filing opinion with respect to each Delaware Loan Party, excluding
                                         any opinion with respect to real property related financing statements

 

		6.	No
                                         conflicts with laws of and no additional governmental consents required under New York,
                                         the Delaware Limited Liability Company Act, Delaware General Business Corporation Law,
                                         or any applicable federal laws

 

		7.	No
                                         conflicts with each Delaware Loan Party’s organizational documents

 

“Delaware
Loan Party” means the following entities formed under Delaware law:

 

		1.	Pacific
                                         Ethanol Central, LLC

 

		2.	PE
                                         Op Co.

 

		3.	Pacific
                                         Ethanol Magic Valley, LLC

 

		4.	Pacific
                                         Ethanol Stockton LLC

 

		5.	Pacific
                                         Ethanol Columbia, LLC

 

		6.	Pacific
                                         Ethanol Madera LLC

 

 

24Exhibit 10.4

 

Execution Version

 

ALL LIENS AND SECURITY INTERESTS EVIDENCED
BY THIS AGREEMENT SHALL AT ALL TIMES BE SUBORDINATE AND JUNIOR TO THE LIENS AND SECURITY INTERESTS GRANTED TO
CoBank, ACB, a federally-chartered instrumentality of the United States, PURSUANT TO that certain Security Agreement dated as of
SEPTEMBER 15, 2017 (AS AMENDED FROM TIME TO TIME) MADE BY Debtors (dEFINED BELOW) IN FAVOR OF SENIOR AGENT AND SUBJECT TO
THE TERMS OF THAT CERTAIN INTERCREDITOR AGREEMENT EVEN DATED HEREWITH (AS AMENDED FROM
TIME TO TIME) BY AND AMONG SENIOR AGENT, DEBTOR, AGENT (DEFINED BELOW) AND THE OTHER PARTIES PARTY THERETO.

 

SECURITY AGREEMENT

(ILLINOIS CORN PROCESSING)

 

THIS SECURITY AGREEMENT
(the “Agreement”) is dated as of March 20, 2020, and is executed and delivered by ILLINOIS CORN PROCESSING,
LLC (the “Debtor”), a Delaware limited liability company, having its place of business (or chief executive office
if more than one place of business) located at 400 Capitol Mall, Suite 2060, Sacramento, California 95814 in favor of CORTLAND
PRODUCTS CORP., as collateral agent for the benefit of the Noteholders party to the Initial Security Agreement (in such capacity,
together with its successors and assigns, the “Agent”; together with the Noteholders, the “Secured
Parties”). Capitalized terms not otherwise defined in this Agreement shall have the respective meanings ascribed to them
in that certain Security Agreement, dated as of December 15, 2016, by and among Pacific Ethanol, Inc., a Delaware corporation (the
“Company”), the noteholders party thereto, and the Agent, as amended by that certain First Amendment to Security
Agreement, dated June 30, 2017, by and among the Company, the noteholders party thereto, and the Agent, that certain Second Amendment
to Security Agreement, dated December 22, 2019, by and among the Company, the Noteholders party thereto, and the Agent, and that
certain Third Amendment to Security Agreement, dated as of the date hereof, by and among the Company, the Noteholders party thereto,
and the Agent (as the same may be further amended, restated, supplemented or otherwise modified from time to time, the “Initial
Security Agreement”).

 

RECTIALS:

 

WHEREAS, Debtor and
CoBank, ACB, a federally-chartered instrumentality of the United States (“Senior Agent”), are party to that
certain Security Agreement dated as of September 15, 2017 (“Senior Agent Security Agreement”), wherein Debtor
granted to Senior Agent a first priority lien in the Collateral, securing the payment and performance when due of the Obligations
(as defined in the Senior Agent Security Agreement);

 

WHEREAS, the lien granted
herein shall be junior and subordinate in priority to the lien granted to Senior Agent, as set forth in that certain Intercreditor
Agreement dated as of the date hereof (“Intercreditor Agreement”) by and among Senior Agent, Agent, Pacific
Ethanol, Inc. and the Grantors party thereto;

 

     

     

    

  

“Initial Noteholder
Security Agreement” means that certain Security Agreement, dated as of December 15, 2016, by and among the Company, the Noteholders
party thereto, and the Mortgagee, as amended by that certain First Amendment to Security Agreement, dated June 30, 2017, by and
among the Company, the Noteholders party thereto, and the Mortgagee, that certain Second Amendment to Security Agreement, dated
December 22, 2019, by and among the Company, the Noteholders party thereto, and the Mortgagee, and that certain Third Amendment
to Security Agreement, dated as of the date hereof, by and among the Company, the Noteholders party thereto, and the Mortgagee,
as the same may be further amended, restated, supplemented or otherwise modified from time to time.

 

“Noteholders”
means (x) each Person that is (i) a signatory to the Amendment Agreement and identified as a “Noteholder” on Exhibit
A to the Amendment Agreement, (ii) a holder of any of the Notes (as defined in the Amendment Agreement), and (iii) a “Secured
Party” party to the Initial Noteholder Security Agreement and (y) any other Person that becomes (i) a holder of any of the
Notes pursuant to any permitted assignment or transfer and (ii) a “Secured Party” under the Initial Noteholder Security
Agreement pursuant to a Security Agreement Joinder, other than any such Person that ceases to be a party to such agreement pursuant
to an assignment of all of its Notes and its rights and obligations under the Transaction Documents (as defined in the Initial
Security Agreement).

 

SECTION 1. GRANT
OF SECURITY INTEREST. For valuable consideration the receipt and sufficiency of which are hereby acknowledged, the Debtor hereby
grants to the Agent, on behalf of each Secured Party, a security interest in all of the personal property of the Debtor, wherever
located, together with all accessions and additions thereto, and all products and proceeds thereof, including:

 

All accounts; inventory (including
without limitation, returned or repossessed goods); goods; as-extracted collateral; chattel paper; electronic chattel paper; instruments;
investment property (including, without limitation, certificated and uncertificated securities, security entitlements, securities
accounts, commodity contracts, and commodity accounts); letters of credit; letter-of-credit rights; documents; equipment; farm
products; fixtures; general intangibles (including, without limitation, payment intangibles, choses or things in action, litigation
rights and resulting judgments, goodwill, patents, trademarks and other intellectual property, tax refunds, miscellaneous rights
to payment, investments and other interests in entities not included in the definition of investment property (including, without
limitation, all equities and patronage rights in all cooperatives and all interests in partnerships and joint ventures), margin
accounts, computer programs, software, invoices, books, records and other information relating to or arising out of the Debtor’s
business); and, to the extent not covered by the above, all other personal property of the Debtor of every type and description,
including without limitation, supporting obligations, interests or claims in or under any policy of insurance, commercial tort
claims, deposit accounts, money, and judgments (the “Collateral”).

 

    2

     

    

  

Where applicable, all terms used herein
shall have the same meaning as presently and as hereafter defined in the Uniform Commercial Code of the State of New York (the
“UCC”).

 

SECTION 2. THE OBLIGATIONS.
The security interest granted hereunder shall secure the payment of all indebtedness and the performance of all obligations of
the Company and the Debtor to the Secured Parties of every type and description, whether now existing or hereafter arising, fixed
or contingent, as primary obligor or as guarantor or surety, acquired directly or by assignment or otherwise, liquidated or unliquidated,
regardless of how they arise or by what agreement or instrument they may be evidenced, including without limitation all notes issuances,
loans, advances and other extensions of credit and all covenants, agreements, and provisions contained in all loan and other agreements
between the parties, including the Transaction Documents (the “Obligations”).

 

SECTION 3. REPRESENTATIONS,
WARRANTIES AND COVENANTS. The Debtor represents, warrants and covenants as follows:

 

A. Title to Collateral.
Except as expressly permitted under the Amendment Agreement or by any other written agreement between the parties, and except for
any security interest in favor of Senior Agent or the Agent on behalf of each Secured Party, the Debtor has clear title to all
Collateral free of all adverse claims, interests, liens, or encumbrances. Without the prior written consent of the Required Holders,
the Debtor shall not create or permit the existence of any adverse claims, interests, liens, or other encumbrances against any
of the Collateral. The Debtor shall provide prompt written notice to the Agent of any future adverse claims, interests, liens,
or encumbrances against all Collateral, and shall defend diligently the Debtor’s and the Agent’s interests in all Collateral.

 

B. Validity of Agreement;
Authority. This Agreement is the valid and binding obligation of the Debtor, enforceable in accordance with its terms. The
Debtor is duly formed, validly existing and in good standing under the laws of its jurisdiction of formation. The Debtor has the
full power to execute, deliver and carry out the terms and provisions of this Agreement and all related documents and to grant
to the Agent, on behalf of each Secured Party, a security interest in, and a lien on, the Collateral, has taken all necessary action
to authorize the execution, delivery and performance of this Agreement and all related documents, and such execution, delivery
and performance do not and will not (i) violate any of the terms or provisions of the organizational documents of the Debtor or
any provision of any law, order, writ, judgment, injunction, decree, determination or award presently in effect having applicability
to the Debtor, (ii) result in a breach of, or constitute a default under, any indenture or loan or credit agreement or any other
agreement, document or instrument to which the Debtor is a party or by which the Debtor or any of the Debtor’s property may
be bound or affected or (iii) result in or require the creation or imposition of any lien or other encumbrance of any nature upon
or with respect to any of the property of the Debtor (except for any security interest in favor of the Agent on behalf of each
Secured Party).

 

C. Location of the
Debtor. The Debtor’s place of business (or chief executive office if more than one place of business) is located at the
address shown above. The Debtor’s state of incorporation or formation is as shown above.

 

    3

     

    

  

D. Location of Fixtures.
All fixtures are now at the location or locations specified on Schedule A attached hereto and made a part hereof

 

E. Name, Identity,
and Corporate Structure. The Debtor’s exact legal name is as set forth above. Except as set forth on Schedule B, the
Debtor has not within the past one year changed its name, identity or corporate structure through incorporation, merger, consolidation,
joint venture or otherwise.

 

F. Change in Name,
State of Debtor’s Location, Location of Collateral, Etc. Without giving at least thirty days’ prior written notice
to the Agent, the Debtor shall not change its name, identity or organizational structure, the location of its place of business
(or chief executive office if more than one place of business), its state of incorporation or formation, or the location of the
Collateral.

 

G. Further Assurances.
Upon the reasonable request of the Agent or Required Holders, the Debtor shall do all acts and things as the Agent or Required
Holders may from time to time reasonably deem necessary or advisable to enable it to perfect, maintain, and continue the perfection
and priority of the security interest of the Agent in the Collateral, or to facilitate the exercise by the Agent of any rights
or remedies granted to the Agent or any other Secured Party hereunder or provided by law. Without limiting the foregoing, the Debtor
agrees to execute, in form and substance reasonably satisfactory to the Agent and Required Holders, such financing statements,
amendments thereto, supplemental agreements, assignments, notices of assignments, and other instruments and documents as the Agent
or Required Holders may from time to time reasonably request. In addition, in the event the Collateral or any part thereof consists
of instruments, documents, chattel paper, or money (whether or not proceeds of the Collateral), the Debtor shall, upon the request
of the Agent, deliver possession thereof to the Agent (or to a subagent of the Agent retained for that purpose), together with
any appropriate endorsements and/or assignments, provided that such Collateral is not in the possession of Senior Agent and is
subject to the terms of the Intercreditor Agreement. Where Collateral is in the possession of a third party, the Debtor will join
with the Agent in notifying the third party of the Agent’s security interest and obtaining an acknowledgment from the third
party that it is holding the Collateral for the benefit of the Agent. The Debtor will cooperate with the Agent in obtaining control
with respect to Collateral consisting of deposit accounts (that are not held by the Agent as depositary institution), investment
property, letter-of-credit rights and electronic chattel paper. The Agent shall use reasonable care in the custody and preservation
of such Collateral in its possession (it being agreed that Agent shall be deemed to have exercised
reasonable care in the custody and preservation of the Pledged Collateral in its possession if the Pledged Collateral is accorded
treatment substantially equal to that which it accords its own property), but shall not be, required to take any steps necessary
to preserve rights against prior parties. All costs and expenses incurred by the Agent to establish, perfect, maintain, determine
the priority of, or release the security interest granted hereunder (including the cost of all filings, recordings, and taxes thereon
and the fees and expenses of any subagent retained by Agent) shall become part of the Obligations secured hereby and be paid by
the Debtor on demand.

 

    4

     

    

  

H. Insurance.
The Debtor shall maintain such property and casualty insurance as required under the Transaction Documents. All such policies shall
provide for loss payable clauses or endorsements and other terms and conditions in form and content acceptable to the Required
Holders. Upon the request of the Agent, all policies (or such other proof of compliance with this Section as may be satisfactory
to the Agent) shall be delivered to the Agent. The Debtor shall pay all insurance premiums when due. In the event of loss, damage,
or injury to any insured Collateral, the Agent shall have full power to collect any and all insurance proceeds due under any of
such policies (and the Debtor hereby agrees, upon request by the Agent, to promptly forward to the Agent all such insurance proceeds
received directly by the Debtor), and may, at its option, apply such proceeds to the payment of any of the Obligations secured
hereby, or may apply such proceeds to the repair or replacement of such Collateral.

 

I. Taxes, Levies,
Etc. The Debtor has paid and shall continue to pay when due all taxes, levies, assessments, or other charges which may become
an enforceable lien against the Collateral.

 

J. Receivables.
The Debtor shall preserve, enforce, and collect all accounts, chattel paper, electronic chattel paper, instruments, documents and
general intangibles, whether now owned or hereafter acquired or arising (the “Receivables”), in a diligent fashion
and, upon the request of the Agent or the Required Holders, the Debtor shall execute an agreement in form and substance satisfactory
to the Agent and Required Holders by which the Debtor shall direct all account debtors and obligors on Receivables to make payment
to a lock box deposit account under the exclusive control of the Agent, on behalf of each Secured Party.

 

K. Condition of
Collateral. All tangible Collateral is now in good repair and condition (ordinary wear and tear excepted) and the Debtor shall
at all times hereafter, at its own expense, maintain all such Collateral in good repair and condition (ordinary wear and tear excepted).

 

L. Condition of
Books and Records. The Debtor has maintained and shall maintain complete, accurate and up-to-date books, records, accounts,
and other information relating to all Collateral in such form and in such detail as may be satisfactory to the Required Holders,
and shall allow the Agent, other Secured Parties or their representatives at any reasonable time to examine and copy such books,
records, accounts, and other information.

 

M. Right of Inspection.
At all reasonable times upon the request of the Agent or the Required Holders, the Debtor shall allow the Agent, the other Secured
Parties or any of their respective representatives to visit any of the Debtor’s properties or locations so that such Secured
Party or its representatives may confirm, inspect and appraise any of the Collateral.

 

SECTION 4. RIGHTS
AND REMEDIES. If an Event of Default as defined under the Amended Notes (an “Event of Default”) shall have
occurred and be continuing, the Agent may exercise any and all rights and remedies of the Secured Parties in the enforcement of
its security interest under the UCC, this Agreement, the Transaction Documents or any other applicable law, subject to the terms
of the Intercreditor Agreement. Without limiting the foregoing:

 

    5

     

    

  

A. Disposition of
Collateral. Upon and during the existence of an Event of Default, the Agent may sell, lease, or otherwise dispose of all or
any part of the Collateral, in its then present condition or following any commercially reasonable preparation or processing thereof,
whether by public or private sale or at any brokers’ board, in lots or in bulk, for cash, on credit or otherwise, with or
without representations or warranties, and upon such other terms as may be acceptable to the Agent, and the Agent or any other
Secured Party may purchase at any public sale. At any time when advance notice of sale is required, the Debtor agrees that ten
days’ prior written notice shall be reasonable. In connection with the foregoing, the Secured Party may:

 

1. require the Debtor
to assemble the Collateral and all records pertaining thereto and make such Collateral and records available to the Agent at a
place to be designated by the Agent which is reasonably convenient to both parties;

 

2. enter the premises
of the Debtor or premises under the Debtor’s control and take possession of the Collateral;

 

3. without charge, use
or occupy the premises of the Debtor or premises under the Debtor’s control, including without limitation, warehouse and
other storage facilities;

 

4. without charge, use
any patent, trademark, tradename, or other intellectual property or technical process used by the Debtor in connection with any
of the Collateral; and

 

5. rely conclusively
upon the advice or instructions of any one or more brokers or other experts selected by the Agent to determine the method or manner
of disposition of any of the Collateral and, in such event, any disposition of the Collateral by the Agent in accordance with such
advice or instructions shall be deemed to be commercially reasonable.

 

B. Collection of
Receivables. Upon and during the existence of an Event of Default, the Agent may, but shall not be obligated to, take all actions
reasonable or necessary to preserve, enforce or collect the Receivables, including without limitation, the right to notify account
debtors and obligors on Receivables to make direct payment to the Agent on behalf of each Secured Party, to permit any extension,
compromise, or settlement of any of the Receivables for less than face value, or to sue on any Receivable, all without prior notice
to the Debtor.

 

C. Proceeds.
Upon and during the existence of an Event of Default, the Agent may collect and apply all proceeds of the Collateral, and may endorse
the name of the Debtor in favor of the Agent on any and all checks, drafts, money orders, notes, acceptances, or other instruments
of the same or a different nature, constituting, evidencing, or relating to the Collateral. The Agent may receive and open all
mail addressed to the Debtor and remove therefrom any cash or non-cash items of payment constituting proceeds of the Collateral.

 

D. Insurance Adjustments.
Upon and during the existence of an Event of Default, the Agent may adjust, settle, and cancel any and all insurance covering any
Collateral, endorse the name of the Debtor on any and all checks or drafts drawn by any insurer, whether representing payment for
a loss or a return of unearned premium, and execute any and all proofs of claim and other documents or instruments of every kind
required by any insurer in connection with any payment by such insurer.

 

The net proceeds of
any disposition of the Collateral may be applied by the Agent, after deducting its reasonable expenses incurred in such disposition,
to the payment in whole or in part of the Obligations in such manner permitted by the Transaction Documents. The enumeration of
the foregoing rights and remedies is not intended to be exhaustive, and the exercise of any right and/or remedy shall not preclude
the exercise of any other rights or remedies, all of which are cumulative and non-exclusive.

 

    6

     

    

  

SECTION 5. OTHER
PROVISIONS.

 

A. Amendment, Modification,
and Waiver. Without the prior written consent of the Required Holders, no amendment, modification, or waiver of, or consent
to any departure by the Debtor from, any provision hereunder shall be effective. Any such amendment, modification, waiver, or consent
shall be effective only in the specific instance and for the specific purpose for which given. No delay or failure by the Agent
or any other Secured Party to exercise any remedy hereunder shall be deemed a waiver thereof or of any other remedy hereunder.
A waiver on any one occasion shall not be construed as a bar to or waiver of any remedy on any subsequent occasion.

 

B. Costs and Attorneys’
Fees. Except as prohibited by law, if at any time any of the Secured Parties employs counsel in connection with the creation,
perfection, preservation, or release of the Agent’s security interest in the Collateral or the enforcement of any of the
Agent or any other Secured Party’s rights or remedies hereunder, all of each Secured Party’s reasonable attorneys’
fees arising from such services and all expenses, costs, or charges relating thereto shall become part of the Obligations secured
hereby and be paid by the Debtor on demand.

 

C. No Obligation
to Make Loans. Nothing contained herein or in any financing statement or other document executed or filed in connection herewith
(other than the Amendment Agreement and the Amended Notes, to the extent obligations arise thereunder) shall be construed to obligate
the Secured Parties to make any loans or advances to the Debtor or the Company, whether pursuant to a commitment or otherwise.

 

D. Revival of Obligations.
To the extent the Debtor or any third party makes a payment or payments to the Agent or any other Secured Party or the Agent enforces
its security interest or exercises any right of setoff, and such payment or payments or the proceeds thereof are subsequently invalidated,
declared to be fraudulent or preferential, set aside, and/or required to be repaid to a trustee, receiver, or any other party under
any bankruptcy, insolvency or other law or in equity, then, to the extent of such recovery, the Obligations or any part thereof
originally intended to be satisfied shall be revived and continued in full force and effect as if such payment or payments had
not been made, or such enforcement or setoff had not occurred.

 

E. Performance by
the Secured Parties. In the event the Debtor shall at any time fail to pay or perform punctually any of its duties hereunder,
upon ten (10) days after failure of the Debtor to pay or perform such duty (unless such failure may cause a material impairment
to the value of the Collateral or the Agent’s Liens, in which case, immediately upon such failure of the Debtor), the Secured
Parties may, at their option and without notice to or demand upon the Debtor, without obligation and without waiving or diminishing
any of its other rights or remedies hereunder, fully perform or discharge any of such duties. All costs and expenses incurred by
the Secured Parties in connection therewith, together with interest thereon at the Secured Parties’ “Interest Rate”
plus two percent per annum, shall become part of the Obligations secured hereby and be paid by the Debtor upon demand. For purposes
hereof, the Interest Rate shall mean the rate of interest established by the Secured Parties from time to time as its Interest
Rate, which rate is intended by the Secured Parties to be a reference rate and not its lowest rate. For the avoidance of doubt,
the Senior Agent has also been appointed Debtor’s attorney-in-fact as set forth in subsection G below and Agent’s rights
to act as attorney-in-fact as set forth in subsection G and this subsection E are limited by the terms of the Intercreditor Agreement.

 

    7

     

    

  

F. Indemnification,
Etc. The Debtor hereby expressly indemnifies and holds the Agent and each Secured Party harmless from any and all claims, causes
of action, or other proceedings, and from any and all liability, loss, damage, and expense of every nature, arising by reason of
the Agent or such Secured Party’s enforcement of its rights and remedies hereunder, or by reason of the Debtor’s failure
to comply with any environmental or other law or regulation. As to any action taken by the Agent or Secured Party hereunder, such
Agent or Secured Party shall not be liable for any error of judgment or mistake of fact or law, absent gross negligence or willful
misconduct on its part as determined by a court of compentent jurisdiction in a final and non-appealable judgment.

 

G. Power of Attorney.
Subject to the terms of the Intercreditor Agreement, the Debtor hereby appoints the Agent or the Agent’s designee as its
attorney-in-fact, which appointment is irrevocable, durable, and coupled with an interest, with full power of substitution, in
the name of the Debtor or in the name of the Agent, upon and during the existence of an Event of Default, to take any action which
the Debtor is obligated to perform hereunder or which the Agent may deem necessary or advisable to accomplish the purposes of this
Agreement. In taking any action in accordance with this Section, the Agent shall not be deemed to be the agent of the Debtor. The
powers conferred upon the Agent in this Section are solely to protect its and each other Secured Party’s interest in the
Collateral and shall not impose any duty upon the Agent to exercise any such powers.

 

H. Continuing Effect.
This Agreement, the Agent and each other Secured Party’s security interest in the Collateral, and all other documents or
instruments contemplated hereby shall continue in full force and effect until all of the Obligations have been satisfied in full,
the Secured Parties has no commitment to make any further advances to the Debtor, and the Debtor has sent a valid written demand
to the Agent for termination of this Agreement.

 

I. Binding Effect.
This Agreement shall be binding upon and inure to the benefit of the Debtor and the Secured Parties and their respective successors
and assigns.

 

J. Security Agreement
as Financing Statement and Authorization to File. A photographic copy or other reproduction of this Agreement may be used as
a financing statement. In addition, the Debtor authorizes the Agent or its designees to prepare and file financing statements describing
the Collateral, amendments thereto, and continuation statements and file any financing statement, amendment thereto or continuation
statement electronically. In addition, the Debtor authorizes the Agent or its designees to file financing statements describing
any agricultural liens or other statutory liens held by the Agent.

 

K. Governing Law;
Waiver of Jury Trial. The laws of the State of New York will govern this Agreement and any claim, controversy, dispute or cause
of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement and the transactions
contemplated hereby and thereby.

 

    8

     

    

  

1. Debtor irrevocably
and unconditionally agrees that it will not commence any action, litigation or proceeding of any kind whatsoever, whether in law
or equity, or whether in contract or tort or otherwise, against the Secured Parties in any way relating to this Agreement or the
transactions contemplated hereby, in any forum other than the courts of the State of New York sitting in the city of New York,
borough of Manhattan, and of the United States District Court of the Southern District of New York, and any appellate court from
any thereof, and each of the parties hereto irrevocably and unconditionally submits to the jurisdiction of such courts and agrees
that any such action, litigation or proceeding may be brought in any such New York State court or, to the fullest extent permitted
by applicable law, in such federal court. Each of the parties hereto agrees that a final judgment in any such action, litigation
or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided
by law. Nothing herein shall affect any right that the Secured Parties may otherwise have to bring any action or proceeding relating
to this Agreement against Debtor or its properties in the courts of any jurisdiction.

 

2. Debtor irrevocably
and unconditionally waives, to the fullest extent permitted by applicable law, any objection that it may now or hereafter have
to the laying of venue of any action or proceeding arising out of or relating to this Agreement in any such court referred to in
subsection K of this Section 5. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by applicable
law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

 

3. Debtor irrevocably
consents to the service of process in the manner provided for notices in subsection N of this Section 5 and agrees that nothing
herein will affect the right of any party hereto to serve process in any other manner permitted by applicable law.

 

4. EACH PARTY HERETO
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY. EACH PARTY HERETO (A) CERTIFIES THAT NO AGENT, ATTORNEY, REPRESENTATIVE OR ANY OTHER PERSON
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF
LITIGATION, AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER
NOTES AMENDMENT DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION

 

L. Headings.
The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

 

M. Counterparts;
Integration; Effectiveness. This Agreement and any amendments, waivers, consents or supplements hereto may be executed in counterparts
(and by different parties hereto in different counterparts), each of which shall constitute an original, but all taken together
shall constitute a single contract. This Agreement and the other Notes Amendment Documents constitute the entire contract among
the parties with respect to the subject matter of the Notes Amendment Documents and supersede all previous agreements and understandings,
oral or written, with respect thereto. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or
in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart
of this Agreement.

 

    9

     

    

  

N. Notices.
All notices, requests, demands, or other communications required or permitted hereunder shall be given as provided in Section 6.5
of the Amendment Agreement, and if to Agent, pursuant to Agent’s notice information provided in the signature pages hereof.

 

O. Severability.
The determination that any term or provision of this Agreement is unenforceable or invalid shall not affect the enforceability
or validity of any other term or provision hereof.

 

P. Incorporation
of Recitals.  Each of the Recitals set forth above are true and correct and are incorporated herein and made a part of this
Agreement.

 

Q. Inconsistency
with Intercreditor Agreement. In the event of any conflict between the terms of this Agreement and the Intercreditor Agreement,
the Intercreditor Agreement shall control.

 

[Signature pages follow]

 

    10

     

    

 

IN WITNESS WHEREOF,
the Debtor has executed this Agreement by its duly authorized officer as of the day and year first set forth above.

 

	 	Debtor:	
        ILLINOIS CORN PROCESSING, LLC, a Delaware limited liability
company, 

	 	 	 
	 	By:	/s/ Neil M. Koehler
	 	 	
        Name: Neil M. Koehler

        Title: President and Chief Executive Officer

	 	 	 
	 	AGREED TO AND ACCEPTED BY:
	 	 	 
	 	Agent:	CORTLAND PRODUCTS CORP. 
	 	 	 
	 	By:	/s/ Matthew Trybula
	 	Print Name: 	Matthew Trybula
	 	Title:	Associate Counsel
	 	 	 
	 	225 W Washington Street, 9th Floor
	 	Chicago, IL 60606

  

     

     

    

 

SCHEDULE A

 

To Security Agreement Dated March 20, 2020

Executed By: ILLINOIS CORN PROCESSING, LLC

 

Set forth below are the present locations
(by county and state) of the Debtor’s fixtures.

 

	County:	Tazewell	State:	Illinois

  

     

     

    

 

SCHEDULE B

To Security Agreement Dated March 20, 2020

Executed By: ILLINOIS CORN PROCESSING, LLC

 

Set forth below is an explanation of any
changes within the past one (1) year to the Debtor’s name, identity or corporate structure through incorporation, merger,
consolidation, joint venture or otherwise.

 

	None.

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