<SEC-DOCUMENT>0001213900-20-000147.txt : 20200103
<SEC-HEADER>0001213900-20-000147.hdr.sgml : 20200103
<ACCEPTANCE-DATETIME>20200103161951
ACCESSION NUMBER:		0001213900-20-000147
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20191229
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
FILED AS OF DATE:		20200103
DATE AS OF CHANGE:		20200103

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Pacific Ethanol, Inc.
		CENTRAL INDEX KEY:			0000778164
		STANDARD INDUSTRIAL CLASSIFICATION:	INDUSTRIAL ORGANIC CHEMICALS [2860]
		IRS NUMBER:				412170618
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-21467
		FILM NUMBER:		20505714

	BUSINESS ADDRESS:	
		STREET 1:		400 CAPITOL MALL, SUITE 2060
		CITY:			SACRAMENTO
		STATE:			CA
		ZIP:			95814
		BUSINESS PHONE:		916-403-2123

	MAIL ADDRESS:	
		STREET 1:		400 CAPITOL MALL, SUITE 2060
		CITY:			SACRAMENTO
		STATE:			CA
		ZIP:			95814

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ACCESSITY CORP
		DATE OF NAME CHANGE:	20030627

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DRIVERSSHIELD COM CORP
		DATE OF NAME CHANGE:	20001115

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FIRST PRIORITY GROUP INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>f8k122919_pacificethanol.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0">&nbsp;</P>



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

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 0; margin-bottom: 0; width: 100%"><DIV STYLE="font-size: 1pt; border-top: Black 2pt solid; border-bottom: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">UNITED STATES</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">FORM 8-K</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Pursuant to Section 13 or 15(d) of the<BR>
Securities Exchange Act of 1934</B></P>

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

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">Date of Report (Date of earliest event reported): <B>December 29, 2019</B></P>


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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; text-align: center; font-size: 10pt; font-weight: bold; border-bottom: Black 1.5pt solid">PACIFIC ETHANOL, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center; font-size: 10pt; font-weight: bold"><FONT STYLE="font-weight: normal">(Exact Name of Registrant as Specified in Charter)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 32%; text-align: center; border-bottom: Black 1.5pt solid"><B>Delaware</B></TD>
    <TD STYLE="width: 2%; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 32%; text-align: center; border-bottom: Black 1.5pt solid"><B>000-21467</B></TD>
    <TD STYLE="width: 2%; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 32%; text-align: center; border-bottom: Black 1.5pt solid"><B>41-2170618</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(State or Other Jurisdiction</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;(Commission File Number)</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">(IRS Employer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">of Incorporation)</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">Identification No.)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 49%; border-bottom: Black 1.5pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>400 Capitol Mall, Suite 2060</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Sacramento, California</B></P></TD>
    <TD STYLE="vertical-align: top; width: 2%; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 49%; text-align: center; border-bottom: Black 1.5pt solid"><B>95814</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(Address of Principal Executive Offices)</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">(Zip Code)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">Registrant&rsquo;s
Telephone Number, Including Area Code: <B>(916) 403-2123</B></P>

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

<!-- Field: Rule-Page --><DIV STYLE="width: 100%"><DIV STYLE="font-size: 1pt; border-top: Black 1.5pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Former Name or Former Address, if Changed Since
Last Report)</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Check the appropriate box below if the Form
8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
(<I>see </I>General Instruction A.2. below):</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></TD><TD STYLE="text-align: justify">Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></TD><TD STYLE="text-align: justify">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></TD><TD STYLE="text-align: justify">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></TD><TD STYLE="text-align: justify">Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Securities registered pursuant to Section 12(b)
of the Act:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="LEFT" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 32%; text-align: center; border-bottom: Black 1.5pt solid"><B>Title of each class</B></TD>
    <TD STYLE="width: 2%; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 32%; text-align: center; text-indent: 4.15pt; border-bottom: Black 1.5pt solid"><B>Trading Symbol(s)</B></TD>
    <TD STYLE="width: 2%; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 32%; text-align: center; border-bottom: Black 1.5pt solid"><B>Name of each exchange on which registered</B></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: center">Common Stock, $0.001 par value</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">PEIX</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">The Nasdaq Stock Market LLC</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Nasdaq Capital Market)</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR
&sect;230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR &sect;240.12b-2). Emerging growth company <FONT STYLE="font-size: 10pt">&#9744;</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. <FONT STYLE="font-size: 10pt">&#9744;</FONT></FONT></P>

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




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

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





<!-- Field: Rule-Page --><DIV STYLE="margin-top: 0; margin-bottom: 0; width: 100%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; border-bottom: Black 2pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->




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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Page; Sequence: 1; Options: NewSection; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence -->-&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"><B>Item 1.01.</B></TD><TD STYLE="text-align: justify"><B>Entry into a Material Definitive Agreement.</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0 1in; text-align: justify; text-indent: -1in"><B><I>Second
Amendment to Security Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">On December 29,
2019, Pacific Ethanol Pekin, LLC (&ldquo;Pekin&rdquo;), an indirect wholly-owned subsidiary of Pacific Ethanol, Inc. (the &ldquo;Company&rdquo;),
and CoBank, ACB (&ldquo;CoBank&rdquo;) entered into a Second Amendment to Security Agreement (the &ldquo;Second Amendment&rdquo;)
dated effective as of December 20, 2019 by and between Pekin and CoBank as agent for the benefit of Compeer Financial, PCA (the
&ldquo;Lender&rdquo;, and together with CoBank, the &ldquo;Lender Parties&rdquo;), successor by merger to 1<SUP>st</SUP> Farm Credit
Services, PCA, further amending that certain Security Agreement dated as of December 15, 2016 by and between Pekin and CoBank as
agent for the benefit of 1<SUP>st</SUP> Farm Credit Services, PCA (the &ldquo;Security Agreement&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">Under the Second
Amendment, the parties agreed to amend the secured obligations under the Security Agreement to include Pekin&rsquo;s unconditional
guarantee for the payment of up to an aggregate $40.0 million to satisfy the obligations of Illinois Corn Processing, LLC (&ldquo;ICP&rdquo;),
an indirect wholly-owned subsidiary of the Company, to the Lender Parties under the Credit Agreement dated as of September 15,
2017 by and among ICP and the Lender Parties (as amended, the &ldquo;ICP Credit Agreement&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">The Second Amendment
also contains customary representations, warranties and covenants, and other terms and conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">A description of
the Security Agreement is set forth in the Company&rsquo;s Current Report on Form 8-K for December 15, 2016 filed with the Securities
and Exchange Commission on December 20, 2016 and is incorporated herein by this reference. Descriptions of the ICP Credit Agreement
are set forth in the Company&rsquo;s Current Reports on Forms 8-K for September 15, 2017 and December 20, 2019 filed with the Securities
and Exchange Commission on September 21, 2017 and December 26, 2019, respectively, and are incorporated herein by this reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><B><I>Pekin Guaranty</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">On December 29,
2019, Pekin entered into a Guaranty (the &ldquo;Pekin Guaranty&rdquo;) dated effective as of December 20, 2019 in favor of the
Lender Parties. The Pekin Guaranty provides for the unconditional guarantee by Pekin, and Pekin agreed to be liable for, the payment
and performance when due of up to an aggregate $40.0 million of ICP&rsquo;s obligations under the ICP Credit Agreement. The Pekin
Guaranty also contains customary representations, warranties and covenants, and other terms and conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><B><I>Third Amendment to Illinois Future
Advance Real Estate Mortgage</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">On December 29,
2019, Pekin and Lender entered into a Third Amendment to Illinois Future Advance Real Estate Mortgage (the &ldquo;Third Amendment
to Mortgage&rdquo;) dated effective as of December 20, 2019 by and between Pekin and Lender, further amending that certain Illinois
Future Advance Real Estate Mortgage dated as of December 15, 2016 by Pekin in favor of CoBank as agent for and on behalf of 1<SUP>st</SUP>
Farm Credit Services, PCA (the &ldquo;Pekin Mortgage&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 2; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence -->-&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">Under the Third
Amendment to Mortgage, Pekin agreed to amend the definition of obligations under the Pekin Mortgage to include all obligations
under the Pekin Guaranty (as described above), provided that upon payment of an aggregate $40.0 million to the Lender Parties,
the obligations shall mean the obligations under the Credit Agreement dated as of December 15, 2016 by and among Pekin and the
Lender Parties (as amended, the &ldquo;Pekin Credit Agreement&rdquo;) and certain promissory notes made by Pekin. The Third Amendment
to Mortgage also amended Exhibit B to the Pekin Mortgage to include only promissory notes made by Pekin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">The Third Amendment
to Mortgage also contains customary representations, warranties and covenants, and other terms and conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">Descriptions of
the Pekin Credit Agreement are set forth in the Company&rsquo;s Current Reports on Forms 8-K for December 15, 2016, August 7, 2017,
March 30, 2018, March 21, 2019, July 15, 2019, November 15, 2019, December 16, 2019 and December 20, 2019 filed with the Securities
and Exchange Commission on December 20, 2016, August 11, 2017, April 5, 2018, March 27, 2019, July 19, 2019, November 19, 2019,
December 26, 2019 and December 26, 2019, respectively, and are incorporated herein by this reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0 1in; text-align: justify; text-indent: -1in"><B><I>First Amendment
to Security Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">On December 29,
2019, ICP and CoBank entered into a First Amendment to Security Agreement (the &ldquo;First Amendment&rdquo;) dated effective as
of December 20, 2019 by and between ICP and CoBank, amending that certain Security Agreement dated as of September 15, 2017 by
and between ICP and CoBank as agent for the benefit of Lender (the &ldquo;ICP Security Agreement&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">Under the First
Amendment, the parties agreed to amend the secured obligations under the ICP Security Agreement to include ICP&rsquo;s unconditional
guarantee for the payment of up to an aggregate $40.0 million to satisfy the obligations of Pekin to the Lender Parties under the
Pekin Credit Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">The First Amendment
also contains customary representations, warranties and covenants, and other terms and conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">A description of
the ICP Security Agreement is set forth in the Company&rsquo;s Current Report on Form 8-K for September 15, 2017 filed with the
Securities and Exchange Commission on September 21, 2017 and is incorporated herein by this reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><B><I>ICP Guaranty</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">On December 29,
2019, ICP entered into a Guaranty (the &ldquo;ICP Guaranty&rdquo;) dated effective as of December 20, 2019 in favor of the Lender
Parties. The ICP Guaranty provides for the unconditional guarantee by ICP, and ICP agreed to be liable for, the payment and performance
when due of up to an aggregate $40.0 million of Pekin&rsquo;s obligations under the Pekin Credit Agreement. The ICP Guaranty also
contains customary representations, warranties and covenants, and other terms and conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 3; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence -->-&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><B><I>Amendment to Illinois Future Advance
Real Estate Mortgage</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">On December 29,
2019, ICP and Lender entered into an Amendment to Illinois Future Advance Real Estate Mortgage (the &ldquo;Amendment to Mortgage&rdquo;)
dated effective as of December 20, 2019 by and between ICP and Lender, amending that certain Illinois Future Advance Real Estate
Mortgage dated as of September 15, 2017 by ICP in favor of CoBank as agent for and on behalf of Lender (the &ldquo;ICP Mortgage&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">Under the Amendment
to Mortgage, ICP agreed to amend the definition of obligations under the ICP Mortgage to include all obligations under the ICP
Guaranty (as described above), provided that upon payment of an aggregate $40.0 million to the Lender Parties, the obligations
shall mean the obligations under the ICP Credit Agreement. The Amendment to Mortgage also amended Exhibit B to the ICP Mortgage
to include only promissory notes made by ICP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">The Amendment to
Mortgage also contains customary representations, warranties and covenants, and other terms and conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">A description of
the ICP Mortgage is set forth in the Company&rsquo;s Current Report on Form 8-K for September 15, 2017 filed with the Securities
and Exchange Commission on September 21, 2017 and is incorporated herein by this reference. Descriptions of the ICP Credit Agreement
are set forth in the Company&rsquo;s Current Reports on Forms 8-K for September 15, 2017 and December 20, 2019 filed with the Securities
and Exchange Commission on September 21, 2017 and December 26, 2019, respectively, and are incorporated herein by this reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: left"><B><I>Amended and Restated Guaranty and
Contribution Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">On December 29,
2019, Pacific Ethanol Central, LLC (&ldquo;PE Central&rdquo;), Pekin&rsquo;s and ICP&rsquo;s parent company and a wholly-owned
subsidiary of the Company, entered into an Amended and Restated Guaranty and Contribution Agreement (the &ldquo;Amended Guaranty&rdquo;)
dated effective as of December 20, 2019 in favor of the Lender Parties. The Amended Guaranty amended the guaranteed amount under
the Guaranty and Contribution Agreement (the &ldquo;Original Guaranty&rdquo;) dated as of March 20, 2019 by PE Central in favor
of the Lender Parties from an amount equal to (i) $30.0 million, minus the then-existing amount of Pekin&rsquo;s working capital,
plus the amount of any accounts receivable owed by PE Central to Pekin, plus $12.0 million to (ii) $40.0 million and all payments
due to the Lender Parties under certain provisions of the Pekin Credit Agreement and ICP Credit Agreement. The Amended Guaranty
also contains customary representations, warranties and covenants, and other terms and conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">A description of
the Original Guaranty is set forth in the Company&rsquo;s Current Report on Form 8-K for March 21, 2019 filed with the Securities
and Exchange Commission on March 27, 2019 and is incorporated herein by this reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><B><I>First Amendment to Security Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">On December 29,
2019, PE Central and CoBank entered into a First Amendment to Security Agreement (the &ldquo;PE Central First Amendment&rdquo;)
dated effective as of December 20, 2019 by and between PE Central and CoBank as agent for the benefit of Lender, amending that
certain Security Agreement dated as of March 20, 2019 by and among PE Central and the Lender Parties (the &ldquo;PE Central Security
Agreement&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 4; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence -->-&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">Under the PE Central
First Amendment, the parties agreed to amend the collateral under the PE Central Security Agreement to include PE Central&rsquo;s
equity interests in ICP. The PE Central First Amendment also contains customary representations, warranties and covenants, and
other terms and conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">A description of
the PE Central Security Agreement is set forth in the Company&rsquo;s Current Report on Form 8-K for March 21, 2019 filed with
the Securities and Exchange Commission on March 27, 2019 and is incorporated herein by this reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><B><I>Pledge Agreements</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">On December 29,
2019, PE Central and Pekin entered into a Pledge Agreement (the &ldquo;Pekin Pledge Agreement&rdquo;) dated effective as of December
20, 2019 with CoBank, as agent for Lender, under which PE Central pledged its equity interests in Pekin in favor of the Lender
Parties as security for PE Central&rsquo;s obligations under the Pekin Pledge Agreement and the Amended Guaranty. The Pekin Pledge
Agreement also contains customary representations, warranties and covenants, and other terms and conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">On December 29,
2019, PE Central and ICP entered into a Pledge Agreement (the &ldquo;ICP Pledge Agreement&rdquo;) dated effective as of December
20, 2019 with CoBank, as agent for Lender, under which PE Central pledged its equity interests in ICP in favor of the Lender Parties
as security for PE Central&rsquo;s obligations under the ICP Pledge Agreement and the Amended Guaranty. The ICP Pledge Agreement
also contains customary representations, warranties and covenants, and other terms and conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">On December 29,
2019, PE Central and Pacific Aurora, LLC (&ldquo;Pacific Aurora&rdquo;), an indirect subsidiary of the Company, entered into a
First Amendment to Pledge Agreement (the &ldquo;First Amendment to Pledge&rdquo;) dated effective as of December 20, 2019 with
CoBank, as agent for the benefit of Lender, amending the Pledge Agreement dated as of March 20, 2019 by and among PE Central and
the Lender Parties (the &ldquo;Original Pledge Agreement&rdquo;), under which PE Central agreed to amend the Original Pledge Agreement
to permit PE Central to retain dividends payable to PE Central unless an event of default has occurred or as otherwise described
in the loan documents. The First Amendment to Pledge also imposed negative covenants on PE Central, including PE Central&rsquo;s
obligation not to sell, convey or dispose of the pledged collateral. The First Amendment to Pledge also contains customary representations,
warranties and covenants, and other terms and conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">A description of
the Original Pledge Agreement is set forth in the Company&rsquo;s Current Report on Form 8-K for March 21, 2019 filed with the
Securities and Exchange Commission on March 27, 2019 and is incorporated herein by this reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 5; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence -->-&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in"><B>Item 2.03</B></TD><TD STYLE="text-align: left"><B>Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
of a Registrant. </B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">On December 29,
2019, Pekin and CoBank entered into the Second Amendment, as described under Item 1.01 above and incorporated herein by this reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">On December 29,
2019, Pekin entered into the Pekin Guaranty in favor of the Lender Parties, as described under item 1.01 above and incorporated
herein by this reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">On December 29,
2019, Pekin and Lender entered into the Third Amendment to Mortgage, as described under Item 1.01 above and incorporated herein
by this reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">On December 29,
2019, ICP and CoBank entered into the First Amendment, as described under Item 1.01 above and incorporated herein by this reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">On December 29,
2019, ICP entered into the ICP Guaranty in favor of the Lender Parties, as described under Item 1.01 above and incorporated herein
by this reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">On December 29,
2019, ICP and Lender entered into the Amendment to Mortgage, as described under Item 1.01 above and incorporated herein by this
reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">On December 29,
2019, PE Central entered into the Amended Guaranty in favor of the Lender Parties, as described under Item 1.01 above and incorporated
herein by this reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">On December 29,
2019, PE Central and CoBank entered into the PE Central First Amendment, as described under Item 1.01 above and incorporated herein
by this reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">On December 29,
2019, PE Central, Pekin and CoBank entered into the Pekin Pledge Agreement, as described under Item 1.01 above and incorporated
herein by this reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">On December 29,
2019, PE Central, ICP and CoBank entered into the ICP Pledge Agreement, as described under Item 1.01 above and incorporated herein
by this reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">On December 29, 2019, PE Central,
Pacific Aurora and CoBank entered into the First Amendment to Pledge, as described under Item 1.01 above and incorporated herein
by this reference.&#9;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 6; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence -->-&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Date:&nbsp;&nbsp;January 3,
2020</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: left"><FONT STYLE="font-size: 10pt">PACIFIC ETHANOL, INC.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; width: 60%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 4%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 36%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid"><FONT STYLE="font-size: 10pt">/S/ CHRISTOPHER W.
    WRIGHT</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Christopher W. Wright, </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Vice President, General Counsel &amp; Secretary</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0 3in; text-align: left; text-indent: -3in"></P>

<!-- Field: Page; Sequence: 7; Options: Last -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence -->-&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0 3in; text-align: left; text-indent: -3in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0 3in; text-align: left; text-indent: -3in"></P>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
