Document:

Exhibit 10.48

 

Pacific Ethanol, Inc.

400 Capitol Mall, Suite 2060

Sacramento, CA 95814

 

December 26, 2012

 

Holders of the Company’s

Series B Preferred Stock

Identified on Schedule 1 hereto

 

 

		Re:	Accrued Dividends

Gentlemen:

This letter agreement
(the “Letter Agreement”) is provided with respect to certain rights of the undersigned
holders (collectively, the “Holders”) of shares of Series B Cumulative Convertible
Preferred Stock, $.001 par value per share (the “Series B Preferred Stock”), of Pacific Ethanol, Inc. (the “Company”)
under the Company’s Certificate of Designations, Powers, Preferences, and Rights of the Series B Cumulative Convertible Preferred
Stock (the “Series B Certificate of Designations”).

 

The Series B Certificate of Designations provides
for the payment of quarterly cumulative dividends (“Cumulative Dividends”) with respect to the Series B Preferred
Stock. From January 1, 2009, through December 31, 2011, the Company did not pay Cumulative Dividends to the Holders. The Company
paid $731,492 of the Cumulative Dividends on August 21, 2012. Exhibit A attached sets forth the sum of accrued and
unpaid dividends with respect to each Holder as of December 12, 2012 (collectively, the “Unpaid Dividends”).

Notwithstanding any
previous agreement between the undersigned and the Company and subject to the terms and conditions set forth herein, each of the
undersigned Holders desires to forbear from exercising rights, if any, held by such Holder with respect to the Unpaid Dividends.

In consideration of
each Holder’s agreement to forbear from exercising its rights, the Company agrees to pay $731,492 of the Unpaid Dividends
as provided below.

In consideration of
the mutual covenants herein contained, and for other valuable consideration the receipt and sufficiency of which is hereby acknowledged,
the parties hereby agree as follows:

1.          Forbearance. Subject to the delivery of the Shares in accordance with Paragraph 3, each Holder agrees
that until the earlier to occur of (i) June 30, 2014, or (ii) the occurrence of any Forbearance Default (as hereinafter defined)
(the “Forbearance Period”), each Holder will forbear from exercising any and all of its respective rights and
remedies against the Company with respect to any remaining Unpaid Dividends, including, but not limited to, demanding payment of
any Unpaid Dividends and bringing any action or claim with respect to any Unpaid Dividends.

    	 

    	 	 

    

 

Holders
of the Company’s Series B Preferred Stock

Page 2

 

 

2.          Tolling. The parties hereto stipulate, covenant, and agree that the running of any and all affirmative defenses
of the Company based on (a) any statutes of limitation, (b) the doctrine of laches, or (c) any failure of the Holders to institute
or commence litigation or other legal proceedings within some specified period, before a specified date, or before the happening
of a specified event, applicable to all claims or causes of action that any Holder may be entitled to take or bring in order to
enforce or otherwise arising out of or relating to their respective rights and remedies against the Company with respect to the
Unpaid Dividends is, to the fullest extent permitted by law, tolled and suspended during the Forbearance Period.

3.          Payment
of Dividend; Delivery of Shares. The Company shall pay to each Holder the sum set opposite the Holder’s name on
the signature page hereto (the “Payment”) by issuing and delivering to each such Holder the number of shares (collectively,
the “Shares”) of the Company’s common stock (the “Common Stock”) equal to the quotient
obtained by dividing (a) the Payment, by (b) $0.34. The offering and issuance of the Shares (the “Offering”)
are being made pursuant to (a) an effective Registration Statement on Form S-3 (File No. 333-180731) (including the prospectus
contained therein), filed by the Company with the Securities and Exchange Commission (the “Commission”), and
(b) a prospectus supplement containing certain supplemental information regarding the terms of the Offering of the Shares, that
will be filed with the Commission on the date hereof and delivered to each Holder (or may available to each Holder by the filing
by the Company of an electronic version thereof with the Commission). On the day that is the third Trading Day after the date
hereof, the Company shall deliver to each Holder that number of Shares set forth opposite such Holder’s name on the signature
page hereto through the facilities of the Depository Trust Company’s DWAC system. For purposes hereof, the term “Trading
Day” shall mean any day on which the Common Stock is traded on the principal securities exchange or securities market
on which the Common Stock is then traded.

4.          Acknowledgment of Non-Payment; Non-Waiver. By executing this Letter Agreement, the Company acknowledges and
agrees that, except as expressly provided herein, (a) the Holders’ rights under the Series B Certificate of Designations
have not been waived by the Holders, and (b) no Holder has made and is not making any commitment, and there is no understanding,
explicit or implicit, relating to, or affecting, any forbearance or any other matter beyond that set forth in this Letter Agreement.

5.          Full Force and Effect. Except as otherwise provided herein, the Series B Certificate of Designations shall
remain unchanged and in full force and effect. Except as expressly set forth above, nothing in this Letter Agreement shall be construed
as a waiver of any rights of any of the parties to this Letter Agreement under the Series B Certificate of Designations.

    	 

    	 	 

    
 

 

Holders
of the Company’s Series B Preferred Stock

Page 3

 

 

6.          Forbearance Default. As used herein, “Forbearance Default” means any of the following:

a.          The
Company fails to timely perform or observe any requirement of this Letter Agreement or the documents, instruments and agreements
executed in connection herewith;

b.          The
Company fails to pay future Cumulative Dividends on a timely basis in accordance with the Series B Certificate of Designation;

c.          The
Company dissolves, liquidates, winds up, or otherwise ceases its on-going business operations; or

d.          The
Company (or any subsidiary): (i) makes a transfer in fraud of creditors, or makes an assignment for the benefit of creditors;
(ii) has a receiver, trustee or custodian appointed for, or take possession of, all or substantially all of the assets of the
Company, either in a proceeding brought by such party or in a proceeding brought against such party and such appointment is not
discharged or such possession is not terminated within sixty (60) calendar days after the effective date thereof or such party
consents to or acquiesces in such appointment or possession; (iii) files a petition for relief under any Insolvency Law or an
involuntary petition for relief is filed against such party under any Insolvency Law and such involuntary petition is not dismissed
within sixty (60) calendar days after the filing thereof, or an order for relief naming such party is entered under any Insolvency
Law, or any composition, rearrangement, extension, reorganization or other relief of debtors now or hereafter existing is requested
or consented to by such party; (iv) fails to have discharged within a period of thirty (30) calendar days any attachment, sequestration
or similar writ levied upon any property of such party in an amount exceeding $1,000,000; or (v) fails to pay within thirty (30)
calendar days any final money judgment against such party in an amount exceeding $1,000,000. (For purposes hereof, “Insolvency
Law” means Title 11 of the United States Code (or any successor law) or any similar applicable law providing for bankruptcy,
insolvency, conservatorship, receivership or other similar debtor’s relief.)

7.          Entire
Agreement. This Letter Agreement constitutes the entire agreement between the parties with respect to the subject matter
hereof and supersedes any prior understandings, agreements or representations by or between the parties, written or oral, to the
extent they relate in any way to the subject matter hereof.

8.          Amendments
and Waivers; Severability. This Letter Agreement may not be amended or modified, and no provisions hereof may be waived,
without the written consent of the Company and each of the Holders. No action taken pursuant to this Letter Agreement shall be
deemed to constitute a waiver by the party taking such action of compliance with any representation, warranty, covenant or agreement
contained herein. The waiver by any party hereto of a breach of any provision of this Letter Agreement shall not operate or be
construed as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach. No failure on the
part of any party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of such right, power or remedy by such party preclude any other or further exercise thereof
or the exercise of any other right, power or remedy. All remedies hereunder are cumulative and are not exclusive of any other
remedies provided by law.

    	 

    	 

    
 

Holders
of the Company’s Series B Preferred Stock

Page 4

 

 

9.          Governing
Law. This Letter Agreement shall be governed by, and construed, interpreted and enforced in accordance with, the laws
of the State of Delaware, without giving effect to the principles of conflicts of laws thereunder which would specify the application
of the law of another jurisdiction.

10.         Counterparts.
This Letter Agreement may be executed, including by facsimile signature, in one or more counterparts, each of which shall be deemed
an original but all of which together will constitute one and the same instrument.

[Signatures Follow.]

 

 

    	 

    	 

    
 

Holders
of the Company’s Series B Preferred Stock

Page 5

 

 

In witness whereof,
the parties have executed this Letter Agreement as of the first date set forth above.

 

	 	PACIFIC ETHANOL, INC.
	 	 
	 	By: 	/s/ Neil M. Koehler
	 	 	Neil M. Koehler, Chief Executive Officer

  

	HOLDERS:	PAYMENT AMOUNT:
	 	 
	
        Lyles United, LLC

        By: /s/ William Lyles

                  Name: Will Lyles

                  Title: V.P.
	
         

        $367,068

	
         

        /s/ Frank P. Greinke

        Frank P. Greinke, as Trustee under

        the Greinke Personal Living Trust
	
         

        $189,656

	
         

        /s/ Robert W. Bollar

        Robert W. Bollar, as Trustee of the

        Bollar Living Trust
	
         

        $27,009

	
         

        /s/ Mimi S. Taylor

        Mimi S. Taylor
	
         

        $27,009

	
         

        /s/ Neil M. Koehler

        Neil M. Koehler
	
         

        $105,000

	[SIGNATURES CONTINUED ON FOLLOWING PAGE]

 

    	 

    	 

    
 

Holders
of the Company’s Series B Preferred Stock

Page 6

 

	
         

        /s/ Bill Jones

        Bill Jones
	
         

        $5,250

	
         

        /s/ Paul P. Koehler

        Paul P. Koehler
	
         

        $5,250

	
         

        /s/ Thomas D. Koehler

        Thomas D. Koehler
	
         

        $5,250

 

 

 

    	 

    	 

    
 

Schedule
1

Holders of Series B Preferred Stock

William M. Lyles IV

Lyles United, LLC

1210 West Olive Avenue

Fresno, CA 93728

Frank P. Greinke, Trustee, Greinke Personal Living Trust

P.O. Box 4159

1800 W. Katella, Ste. 400

Orange, CA 92863

Robert W. Bollar, Trustee, Bollar Living Trust

P.O. Box 4159

1800 W. Katella, Ste. 400

Orange, CA 92863

Mimi S. Taylor

P.O. Box 4159

1800 W. Katella, Ste. 400

Orange, CA 92863

Neil M. Koehler

c/o Pacific Ethanol, Inc.

400 Capitol Mall, Suite 2060

Sacramento, CA 95814

William L. Jones

c/o Pacific Ethanol, Inc.

400 Capitol Mall, Suite 2060

Sacramento, CA 95814

Paul P. Koehler

c/o Pacific Ethanol, Inc.

400 Capitol Mall, Suite 2060

Sacramento, CA 95814

Thomas D. Koehler

c/o Pacific Ethanol, Inc.

400 Capitol Mall, Suite 2060

Sacramento, CA 95814

 

    	 

    	 

    
 

 

Exhibit
A

Unpaid Dividends at December 12, 2012

	Lyles United	$3,303,615
	Greinke Trust	1,706,907
	Neil Koehler	944,999
	Bill Jones	47,248
	Paul Koehler	47,248
	Tom Koehler	47,248
	Bollar Trust	243,082
	Mimi S. Taylor	243,082
	 	 
	TOTAL	$6,583,429Exhibit 10.49

 

 FIRST AMENDMENT TO PROMISSORY NOTE

 

THIS
FIRST AMENDMENT TO PROMISSORY NOTE, is entered into as of March 29, 2010, by PACIFIC ETHANOL, INC., a Delaware corporation ("Borrower")
and NEIL M. KOEHLER or his assigns ("Lender").

 

RECITALS

 

A.      Borrower
and Lender entered into that certain Promissory Note dated as of March 30, 2009 in the principal sum of $1,000,000 (the "Note").

 

B.      All
principal and accrued interest owing under the Note is be due and payable on March 30, 2010 (the "Maturity Date").

 

C.      Borrower
and Lender desire to extend the Maturity Date to January 5, 2011.

 

NOW
THEREFORE, inconsideration of the foregoing premises, the mutual promises herein and other good and valid consideration, the receipt
and sufficiency of which is hereby acknowledged, Borrower and Lender hereby agree as follows:

 

1.      Extension
of Maturity. The second sentence of Paragraph 2 of the Note is hereby amended to read in its entirety as follows:

 

"All principal and
accrued and unpaid interest then owing under this Note shall be due and payable on January 5, 2011 (the "Maturity Date")
unless the obligations hereunder are earlier accelerated or satisfied in accordance with the provisions of this Note."

 

2.      Effect
of Amendment. Except as expressly set forth in this First Amendment to Promissory Note, all of the terms and provisions
of the Note shall remain in full force and effect. The Note, together with the amendment set forth herein, shall be read and construed
as a single agreement.

 

Borrower and Lender have
executed and delivered this First Amendment to Promissory Note as of the day and year first set forth above.

 

	 	
        PACIFIC ETHANOL, INC.

        a Delaware corporation
	 
	 	 	 	 
	 	By:	/s/ Christopher W. Wright	 
	 	 	Christopher W. Wright, Vice President	 
	 	 	 	 
	 	 	 	 
	 		/s/ Neil M. Koehler	 
	 	 	NEIL M. KOEHLER	 

 

 

 

 

    	1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}]]