SEC Contract Filing

Filing Date: 2020-03-26

Document Content:
<DOCUMENT>
<TYPE>EX-10.8
<SEQUENCE>9
<FILENAME>ea119964ex10-8_pacific.htm
<DESCRIPTION>PLEDGE AGREEMENT DATED MARCH 20, 2020 BY AND AMONG PACIFIC ETHANOL CENTRAL, LLC, PACIFIC AURORA, LLC AND CORTLAND PRODUCTS CORP.
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Exhibit 10.8</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">Execution Version</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ALL LIENS AND SECURITY INTERESTS EVIDENCED
BY THIS AGREEMENT SHALL AT ALL TIMES BE SUBORDINATE AND JUNIOR TO THE LIENS AND SECURITY INTERESTS GRANTED <FONT STYLE="text-transform: uppercase">TO
CoBank, ACB, a federally-chartered instrumentality of the United States, PURSUANT TO that certain Security Agreement dated as of
March 20, 2019 (AS AMENDED FROM TIME TO TIME) MADE BY gRANTORS (dEFINED BELOW) IN FAVOR OF SENIOR AGENT (DEFINED BELOW) </FONT>AND
SUBJECT TO THE TERMS OF THAT CERTAIN INTERCREDITOR AGREEMENT EVEN DATED HEREWITH <FONT STYLE="text-transform: uppercase">(AS AMENDED
FROM TIME TO TIME) </FONT>BY AND AMONG SENIOR AGENT, GRANTORS, AGENT (DEFINED BELOW), AND THE OTHER PARTIES PARTY THERETO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>PLEDGE AGREEMENT</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>THIS PLEDGE AGREEMENT
</B>(as amended, supplemented or otherwise modified from time to time in accordance with the provisions hereof, this &ldquo;<B>Agreement</B>&rdquo;)
is made on March 20, 2020 by and among PACIFIC ETHANOL CENTRAL, LLC, a limited liability company organized under the laws of Delaware
(&ldquo;<B>Pledgor</B>&rdquo;), PACIFIC AURORA, LLC, a limited liability company organized under the laws of Delaware (&ldquo;<B>Aurora</B>&rdquo;),
and CORTLAND PRODUCTS CORP., as collateral agent for the benefit of the Noteholders (in such capacity, together with its successors
and assigns in such capacity, the &ldquo;<B>Agent</B>&rdquo;; together with the Noteholders, the &ldquo;<B>Secured Parties</B>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>RECITALS</U>:</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, Pacific Ethanol,
Inc., a Delaware corporation (&ldquo;<B>PEI</B>&rdquo;), issued certain secured promissory notes in the aggregate original principal
amount of $55,000,000 on December 15, 2016 (the &ldquo;<B>Initial Notes</B>&rdquo;) pursuant to a Note Purchase Agreement dated
as of December 12, 2016 by and among PEI and the Investors identified therein (as amended, restated, supplemented or otherwise
modified from time to time, including amendments and restatements thereof in its entirety, the &ldquo;<B>Initial Purchase Agreement</B>&rdquo;);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, PEI and certain
Investors identified therein are parties to a Note Purchase Agreement dated as of June 26, 2017 (as amended, restated, supplemented
or otherwise modified from time to time, including amendments and restatements thereof in its entirety, the &ldquo;<B>Additional
Purchase Agreement</B>&rdquo;), pursuant to which PEI issued $13,948,078 in aggregate original principal amount of senior secured
notes due December 15, 2019 (as amended, restated, supplemented or otherwise modified from time to time, the &ldquo;<B>Additional
Notes</B>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Noteholders
are holders of the Initial Notes, the Additional Notes and certain other secured promissory notes issued by PEI on December 16,
2019 (the &ldquo;<B>Existing Notes</B>&rdquo;);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, pursuant to
that certain Senior Secured Note Amendment Agreement dated as of December 22, 2019 between the Noteholders defined therein and
PEI (as amended, restated, supplemented or otherwise modified from time to time, including amendments and restatements thereof
in its entirety, the &ldquo;<B>Amendment Agreement</B>&rdquo;), the Existing Notes were amended and restated in their entirety
(the &ldquo;<B>Amended Notes</B>,&rdquo; and together with the Amendment Agreement and the Transaction Documents (as defined in
the Initial Noteholder Security Agreement (as defined below)), the &ldquo;<B>Notes Amendment Documents</B>&rdquo;);</P>

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