AMENDMENTNO. 4 TO AMENDED AND RESTATED LOAN AND SECURITYAGREEMENT
Exhibit 10.21
AMENDMENT NO. 4
TO
AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
This AMENDMENT NO. 4 TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into as of December 11, 2015, by and among WELLS FARGO CAPITAL FINANCE, LLC, in its capacity as agent (in such capacity, “Agent”) for the Lenders (as defined in the Loan Agreement referred to below), KINERGY MARKETING LLC (“Kinergy”), and PACIFIC AG. PRODUCTS, LLC (“Pacific Ag” and together with Kinergy, each individually, a “Borrower” and collectively, the “Borrowers”).
WHEREAS, Borrowers, Agent and Lenders have entered into certain financing arrangements as set forth in (a) the Amended and Restated Loan and Security Agreement, dated as of May 4, 2012, by and among Agent, Lenders and Borrowers (as amended, restated, renewed, extended, supplemented, substituted and otherwise modified from time to time, the “Loan Agreement”) and (b) the Financing Agreements (as defined in the Loan Agreement); and
WHEREAS, Borrowers have advised Agent that Pacific AG desires to enter into Marketing Agreements (as defined in the Loan Agreement) with certain of the Aventine Affiliates, each substantially in the form of Exhibit A attached hereto (the “Pacific AG Marketing Agreements”);
WHEREAS, Borrowers have advised Agent that Borrowers and Parent desire to replace the Intercompany Operating Agreement (as defined in the Loan Agreement) with a certain Affiliated Company Agreement, effective as of July 1, 2015, among Borrowers and Parent, substantially in the form of Exhibit B attached hereto (the “Affiliated Company Agreement”);
WHEREAS, Borrowers, Agent and Lenders have agreed to amend and modify certain provisions of Loan Agreement, subject to the terms and conditions of this Amendment.
NOW, THEREFORE, upon the mutual agreements and covenants set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1. Definitions.
(a) Additional Definitions. The Loan Agreement is hereby amended to add the following new definition thereto:
““Amendment No. 4” shall mean Amendment No. 4 to Amended and Restated Loan and Security Agreement, dated as of December 11, 2015.”
““Affiliated Company Agreement” shall mean that certain Affiliated Company Agreement, effective as of July 1, 2015, by and among the Borrowers party thereto, certain of the Aventine Affiliates, and Parent pursuant to which Parent will provide certain services to Borrowers as more particularly set forth therein, as amended, restated, modified or supplemented from time to time.”
(b) Interpretation. Capitalized terms used and not defined in this Amendment shall have the respective meanings given them in the Loan Agreement.
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2. Consent. To the extent their consent may be necessary or required under the Loan Agreement or the other Financing Agreement, Agent and Lenders hereby consent to the consummation of the transactions contemplated by the Pacific AG Marketing Agreements and the Affiliated Company Agreement.
3. Amendments.
(a) Intercompany Operating Agreement. Section 1.66 of the Loan Agreement is hereby deleted in its entirety and the following substituted therefor:
“1.66 [Reserved].”
(b) Affiliated Company Agreement. Each Section of the Loan Agreement and the other Financing Documents in which the term “Intercompany Operating Agreement” appears, including, without limitation, Sections 1.106 (Receivables), 9.12(b) (Transactions With Affiliates), and 10.1(n) (Events of Default) of the Loan Agreement, is hereby amended to delete the reference to “Intercompany Operating Agreement” appearing therein and substitute “Affiliate Company Agreement” in lieu thereof.
(c) Marketing Agreements. The definition of “Marketing Agreements” set forth in the Loan Agreement is hereby deleted in its entirety and the following substituted therefor:
““Marketing Agreements” shall mean each of (i) the Ethanol Marketing Agreements, dated on or about the date of Amendment No. 3 and (ii) the Co-Product Marketing Agreements, dated on or about the date of Amendment No. 4, by and among one or more Borrowers and one or more Aventine Affiliates, as amended, and such other marketing agreements that may be approved by Agent from time to time in its reasonable discretion.”
4. Additional Representation. In addition to the continuing representations, warranties and covenants at any time made by Borrowers to Agent and Lenders pursuant to the Loan Agreement and the other Financing Agreements, Borrowers hereby jointly and severally represent, warrant and covenant with and to Agent and Lenders that as of the date of this Amendment and after giving effect hereto, no Default or Event of Default exists or has occurred and is continuing.
5. Release. In consideration of the agreements of Agent and Lenders contained herein and the making of loans by or on behalf of Agent and Lenders to Borrowers pursuant to the Loan Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each Borrower and Parent on behalf of itself and its successors, assigns, and other legal representatives, hereby, jointly and severally, absolutely, unconditionally and irrevocably releases, remises and forever discharges Agent and each Lender, and their present and former shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents and other representatives and their respective successors and assigns (Agent, each Lender and all such other parties being hereinafter referred to collectively as the “Releasees” and individually as a “Releasee”), of and from all demands, actions, causes of action, suits, covenants, contracts, controversies, agreements, promises, sums of money, accounts, bills, reckonings, damages and any and all other claims, counterclaims, defenses, rights of set-off, demands and liabilities whatsoever (individually, a “Claim” and collectively, “Claims”) of every name and nature, known or unknown, suspected or unsuspected, both at law and in equity, whether liquidated or unliquidated, matured or unmatured, asserted or unasserted, fixed or contingent, foreseen or unforeseen and anticipated or unanticipated, which any Borrower or Parent, or any of its successors, assigns, or other legal representatives and its successors and assigns may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of any nature, cause or thing whatsoever which arises at any time on or prior to the day and date of this Agreement, in relation to, or in any way in connection with the Loan Agreement, as amended and supplemented through the date hereof, this Agreement and the other Financing Agreements. Each Borrower and Parent understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.
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6. Conditions to Effectiveness. The effectiveness of this Amendment shall be subject to the receipt by Agent of:
(a) an original (or electronic copy) of this Amendment duly authorized, executed and delivered by Borrowers and Lenders;
(b) an original (or electronic copy) of a letter agreement re: Consent to Co-Product Marketing Agreements and Release of Lien on Purchased Assets, duly authorized, executed and delivered by Citibank, N.A., in its capacity as Agent under the Aventine Term Loan Agreement, and Pacific Ethanol Central, LLC (f/k/a Aventine Renewal Energy Holdings, Inc.); and
(c) an original (or electronic copy) of the Affiliated Company Agreement, duly authorized, executed and delivered by Parent and Borrowers.
7. Effect of this Amendment. Except as modified pursuant hereto, no other changes or modifications to the Loan Agreement or the other Financing Agreements are intended or implied and in all other respects the Loan Agreement and other Financing Agreements are hereby specifically ratified, restated and confirmed by all parties hereto as of the date hereof. To the extent of conflict between the terms of this Amendment, on the one hand, and Loan Agreement or the other Financing Agreements, on the other hand, the terms of this Amendment shall control.
8. Further Assurances. Borrowers shall execute and deliver such additional documents and take such additional action as may be reasonably requested by Agent to effectuate the provisions and purposes of this Amendment.
9. Binding Effect. This Amendment shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns.
10. Governing Law. The rights and obligations hereunder of each of the parties hereto shall be governed by and interpreted and determined in accordance with the internal laws of the State of California (without giving effect to principles of conflict of laws).
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11. Counterparts. This Amendment may be signed in counterparts, each of which shall be an original and all of which taken together constitute one agreement. In making proof of this Amendment, it shall not be necessary to produce or account for more than one counterpart signed by the party to be charged. Delivery of an executed counterpart of this Amendment electronically or by facsimile shall be effective as delivery of an original executed counterpart of this Amendment.
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IN WITNESS WHEREOF, the parties hereto have caused teas Amendment to be duly executed and delivered by their authorized officers as of the day and year first above written,
BORROWERS:
KINERGY MARKETING LLC,
as a Borrower
By: /s/ Bryon T. McGregor
Name: Bryon T. McGregor
Title: Chief Financial Officer
PACIFIC AG PRODUCTS, LLC,
as a Borrower
By: /s/ Bryon T. McGregor
Name: Bryon T. McGregor
Title: Chief Financial Officer
ACKNOWLEDGED AND AGREED:
PACIFIC ETHANOL, INC.,
as Parent
By: /s/ Bryon T. McGregor
Name: Bryon T. McGregor
Title: Chief Financial Officer
AGENT AND LENDER
WELLS FARGO CAPITAL FINANCE, LLC,
as Agent and sole Lender
By: /s/ Carlos Valles
Name: Carlos Valles
Title: Vice President
Signature Page to Amendment No. 4
