SEC Contract Filing

Filing Date: 2017-07-10

Document Content:
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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>ex10-1.htm
<DESCRIPTION>EXHIBIT 10.1
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<P id=PARA330 style="MARGIN-BOTTOM: 0px; TEXT-ALIGN: right; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>Exhibit 10.1</B></FONT></P>
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<P id=PARA1 style="TEXT-ALIGN: right; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; FONT-VARIANT: small-caps"><B>Execution Version</B></FONT></P>
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<P id=PARA3 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>SECURED PROMISSORY NOTE</B></FONT></P>
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<P id=PARA306 style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt">$32,686,256.40&nbsp;&nbsp;</P></TD>
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<P id=PARA307 style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; MARGIN-TOP: 0pt">July 3, 2017 (the &#8220;<U><U>Effective Date</U></U>&#8221;)</P></TD></TR></TABLE>
<P id=PARA5 style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</FONT></P>
<P id=PARA7 style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">FOR VALUE RECEIVED, ICP Merger Sub, LLC, a Delaware limited liability company (the &#8220;<U>Merger Sub</U>&#8221; and the &#8220;<U>Initial Maker</U>&#8221;), to be merged with and into Illinois Corn Processing, LLC, a Delaware limited liability company (the &#8220;<U>Target</U>&#8221;), following the consummation of the Merger (as defined in the Merger Agreement referenced below), as Maker, hereby promises to pay to the order of Illinois Corn Processing Holdings Inc. (the &#8220;<U>Payee</U>&#8221;), the original principal sum of THIRTY-TWO MILLION, SIX HUNDRED EIGHTY-SIX THOUSAND, TWO HUNDRED FIFTY-SIX DOLLARS AND FORTY CENTS ($32,686,256.40) (as may be adjusted from time to time pursuant to the terms below, the &#8220;<U>Loan</U>&#8221;) together with interest and any other obligations payable hereunder, in each case in the manner described herein. Certain terms used herein are as defined in Annex A. Further, Pacific Ethanol Central, LLC, a Delaware limited liability company (&#8220;<U>PEC</U>&#8221;) is a party hereto. This Secured Promissory Note (this &#8220;<U>Note</U>&#8221;) is a &#8220;Promissory Note&#8221; for purposes of that certain Agreement and Plan of Merger, dated as of June 26, 2017 (as </FONT><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">amended, restated, supplemented or otherwise modified from time to time ,the &#8220;<U>Merger Agreement</U>&#8221;), by and among PEC, as Buyer, the Merger Sub, the Target, </FONT><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">MGPI Processing, Inc. and the Payee as Sellers, pursuant to which Merger Sub will merge with and into the Target, with the Target surviving as a wholly-owned subsidiary of PEC and as the Maker hereunder.</FONT></P>
<P id=PARA8 style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA9 style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Adjustment to Principal Amount of Note</U>. Upon the completion of the determination of the &#8220;Final Working Capital&#8221; (as defined in the Merger Agreement) pursuant to Section 1.7 of the Merger Agreement (the date of such determination, the &#8220;<U>Final Working Capital Date</U>&#8221;), the face amount of this Note (without giving effect to any reduction on account of any payment or prepayment prior to the Final Working Capital Date) shall automatically be deemed, immediately and without requirement for any further action, adjusted such that the original principal amount of this Note shall be equal to the amount set forth below under the heading &#8220;Adjusted Principal Amount&#8221;, which Adjusted Principal Amount shall be as follows:</FONT></P>
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<P id=PARA11 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>Working Capital Adjustment Amount </B></FONT></P></TD>
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