Document:

Exhibit 10.1

 

STOCKHOLDERS AGREEMENT 

 

THIS STOCKHOLDERS AGREEMENT (the “Stockholders
Agreement”), dated as of December 30, 2014, is by and among those entities holding shares of Aventine Renewable Energy
Holdings, Inc. as set forth in the signature pages hereto (each a “Stockholder”; and collectively, “Stockholders”)
and Pacific Ethanol, Inc., a Delaware corporation (“Parent”).

 

RECITALS

 

WHEREAS, contemporaneously with
the execution and delivery of this Stockholders Agreement, Parent, AVR Merger Sub, Inc., a Delaware corporation and wholly-owned
subsidiary of Parent (the “Merger Sub”), and Aventine Renewable Energy Holdings, Inc., a Delaware corporation
(the “Company”), are entering into an Agreement and Plan of Merger (the “Merger Agreement”),
dated as of the date hereof, which provides for the merger of Merger Sub with and into the Company, with the Company surviving
as a wholly owned subsidiary of Parent (the “Merger”);

 

WHEREAS, capitalized terms used
herein and not otherwise defined shall have the meanings assigned such terms in the Merger Agreement;

 

WHEREAS, in the aggregate, Stockholders
hold of record and own beneficially the number of shares of the Company’s capital stock set forth on Exhibit A, certain
of which shares, as noted on Exhibit A, are subject to pending sales by Stockholders to a third party pursuant to one or
more transfer agreements entered into prior to the date hereof (collectively, the “Third Party Transfers”);

 

WHEREAS, Stockholders wish to
enter into this Stockholders Agreement solely with respect to their respective Pro Rata Share of an aggregate 51% of the issued
and outstanding shares of capital stock of the Company (the Stockholders’ shares described herein, collectively, the “Shares,”
are set forth on Exhibit B); for purposes of this Stockholders Agreement, “Pro Rata Share” means,
as to any Stockholder, a fraction, (i) the numerator of which is the number of shares of the Company’s capital stock
held by the Stockholder as set forth on Exhibit A, and (ii) the denominator of which is the sum of (A) the number of
shares of the Company’s capital stock held by all Stockholders, in each case after the Third Party Transfers, and (B) the
CS Shares (as defined in Section 16 below); and

 

WHEREAS, Stockholders stand to
receive a material benefit from the Merger in the form of the consideration payable in the Merger in respect of the Shares and,
as a condition to entering into the Merger Agreement, Parent has required that Stockholders agree, and Stockholders have agreed,
to enter into this Stockholders Agreement.

 

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NOW, THEREFORE, in consideration
of the foregoing and the respective representations, warranties, covenants and obligations set forth herein, and intending to be
legally bound hereby, each of the parties hereto agrees as follows:

 

1.          Representations and Warranties
of Stockholders. Each Stockholder hereby severally, but not jointly, represents and warrants, as to itself only, to Parent
as follows:

 

(a)          Title. As
of the date hereof, such Stockholder holds of record and owns beneficially, free and clear of any Encumbrances (other than restrictions
under applicable securities Laws), all of the Shares set forth opposite its name on Exhibit B hereto. Other than the Shares
and those additional shares of Company stock set forth on Exhibit A, such Stockholder does not, directly or indirectly,
own any shares of capital stock of the Company, any option, warrant or other right to acquire shares of capital stock of the Company
or any other securities of the Company. Other than the agreements subject to the Third Party Transfers, such Stockholder is not
a party to any executory written or oral agreement, contract, subcontract, lease, instrument, commitment or undertaking of any
nature (“Contract”) (other than this Stockholders Agreement) that could require such Stockholder to sell, transfer
or otherwise dispose of any capital stock of the Company and each Subsidiary of the Company.

 

(b)          Right to Vote.
Such Stockholder has full legal power, authority and right to vote all of the Shares, in favor of the approval and authorization
of the Merger Agreement and the principal terms of the Merger without any approval, consent, ratification, permission, waiver or
authorization (including any consents of Governmental Entities) (“Consent”) of, or any other action on the part
of, any other Person. Without limiting the generality of the foregoing, except as otherwise provided in this Stockholders Agreement
or as set forth on Exhibit B hereto, such Stockholder has not entered into any voting agreement with any Person with respect
to any of the Shares, granted any Person any proxy (revocable or irrevocable) or power of attorney with respect to any of the Shares,
deposited any of the Shares in a voting trust or entered into any arrangement or agreement with any Person limiting or affecting
such Stockholder’s legal power, authority or right to vote the Shares on any matter.

 

(c)          Authority.
Such Stockholder has full legal power, capacity, authority and right to execute and deliver, and to perform its obligations under,
this Stockholders Agreement. This Stockholders Agreement has been duly and validly authorized, executed and delivered by such Stockholder
and constitutes a valid and binding agreement of Stockholder enforceable against Stockholder in accordance with its terms.

 

(d)          Opportunity.
Such Stockholder has had the opportunity to review this Stockholders Agreement and the Merger Agreement. Such Stockholder has had
adequate opportunity to discuss the requirements of this Stockholders Agreement with his or her professional advisors to the extent
such Stockholder has deemed necessary. Such Stockholder understands that its representations and agreements contained herein constitute
a material inducement and condition to Parent and Merger Sub in entering the Merger.

 

(e)          No Conflicts;
Consents. The execution and delivery of this Stockholders Agreement by such Stockholder does not and will not, and the performance
of this Stockholders Agreement by such Stockholder will not, result in or constitute (with or without notice or lapse of time)
any breach of or default under, or result (with or without notice or lapse of time) in the creation of any Encumbrance on any of
the Shares pursuant to, any Contract to which such Stockholder is a party or by which such Stockholder or any of the Shares are
bound or affected as of the date of this Stockholders Agreement. The execution and delivery of this Stockholders Agreement by such
Stockholder does not and will not, and the performance of this Stockholders Agreement by such Stockholder will not, require any
Consent of any Person.

 

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(f)          Due Organization.

 

(i)          If such Stockholder is an Entity:
(A) such Stockholder is duly organized, validly existing and in good standing under the laws of the jurisdiction under which such
Stockholder is organized; (B) the execution, delivery and performance of this Stockholders Agreement by such Stockholder has been
duly authorized by all necessary action on the part of the board of directors of such Stockholder or other Persons performing similar
functions; and (C) the execution and delivery of this Stockholders Agreement by such Stockholder does not and will not, and the
performance of this Stockholders Agreement by such Stockholder will not, (I) result in or constitute any breach of or default under
the partnership agreement or any of the other organizational documents of such Stockholder, or (II) require the approval of holders
of voting or equity interests in Stockholder, other than any approval already obtained, except in each case as will not adversely
affect the ability of such Stockholder to perform its obligations hereunder in any material respect or to consummate the transactions
contemplated hereby in a timely manner.

 

(ii)          If such Stockholder is an executor
of an estate or trustee of a trust: (A) such Stockholder is the sole executor or trustee of such estate or trust; (B) such Stockholder
has the sole power and authority to act on behalf of and bind such estate or trust; and (C) the execution and delivery of this
Stockholders Agreement by such Stockholder does not and will not, and the performance of this Stockholders Agreement by such Stockholder
will not, (I) result in or constitute any breach of or default under the will, trust agreement or other document relating to such
estate or trust, or (II) require the approval of any beneficiary of such estate or trust, other than any approval already obtained.

 

(g)          Accuracy of Representations
and Warranties. All of such Stockholder's representations and warranties contained in this Stockholders Agreement will be accurate
on the Closing as if made on and as of the Closing, provided, however, that Exhibits A and B may be updated
as of Closing to reflect the consummation of the Third Party Transfers and/or transfers of shares or Shares permitted pursuant
to the terms of this Stockholders Agreement.

 

2.          Representations and Warranties
of Parent. Parent hereby represents and warrants to each Stockholder as follows:

 

(a)          Authority.
Parent has full legal power, capacity, authority and right to execute and deliver, and to perform its obligations under, this Stockholders
Agreement. This Stockholders Agreement has been duly and validly authorized, executed and delivered by Parent and constitutes a
valid and binding agreement of Parent enforceable against Parent in accordance with its terms.

 

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3.          Stockholder Covenants. Until
the termination of this Stockholders Agreement in accordance with Section 8(b), each Stockholder hereby severally, but not
jointly, as to itself only, agrees as follows:

 

(a)          Restrictions on
Transfer. Such Stockholder agrees that, except for the Third Party Transfers, during the period from the Execution Date of
the Merger Agreement through the Effective Time (the “Pre-Closing Period”), such Stockholder shall not directly
or indirectly sell or otherwise transfer or dispose of, or pledge or otherwise permit to be subject to any Encumbrance (other than
the Merger Agreement), any of the Shares, or any direct or indirect beneficial interest therein, unless such proposed transferee
agrees, pursuant to a written agreement in form and content reasonably satisfactory to Parent, to be bound by, and comply with,
the terms and provisions of this Stockholders Agreement in its entirety (subject to any necessary name or like changes) with respect
to such transferred Shares.

 

(b)          Agreement to Vote.
Such Stockholder agrees that, following the execution and delivery of the Merger Agreement, such Stockholder shall vote the Shares
at regular or special meetings of stockholders of the Company, including adjournments thereof, or in any other circumstances upon
which a vote, consent or other approval (including by written consent) is sought (i) with respect to the Merger and the Merger
Agreement, in favor of any proposal to approve the Merger Agreement and the Merger and (ii) with respect to all other proposals
submitted to the stockholders of the Company, which, directly or indirectly, would reasonably be expected to prevent or materially
delay the consummation of the Merger or the transactions contemplated by the Merger Agreement, in such manner as Parent may direct.
Such Stockholder agrees not to withdraw any such vote and not to take any other action that is inconsistent with such Stockholder’s
obligation to vote in favor of approval of the Merger Agreement and the Merger or that may have the effect of delaying or interfering
with the Merger.

 

(c)          Market Stand-Off
Agreement. Except as provided herein, such Stockholder will not, without the prior written consent of Parent, directly or indirectly
offer, sell or contract or grant any option to sell, or otherwise dispose of (including short sales, sales against the box and/or
other hedging or derivative transactions), pledge or transfer 100% of the shares of Parent Stock acquired by such Stockholder (including
any Parent Voting Common Stock into which any Parent Non-Voting Common Stock is converted) pursuant to the terms of the Merger
Agreement in exchange for the Shares (the “Restricted Merger Consideration Shares”) for a period commencing
on the Closing Date and continuing through (i) the 30th day thereafter, after which an aggregate of 25% of the Restricted
Merger Consideration Shares shall be released from the foregoing restrictions, (ii) the 60th day thereafter, after which
an aggregate of 50% of the Restricted Merger Consideration Shares shall be released from the foregoing restrictions, (iii) the
90th day thereafter, after which an aggregate of 75% of the Restricted Merger Consideration Shares shall be released
from the foregoing restrictions, and (iv) the 120th day thereafter, after which an aggregate of 100% of the Restricted
Merger Consideration Shares shall be released from the foregoing restrictions. The foregoing sentence shall not apply to (A) transfers
of Restricted Merger Consideration Shares to immediate family members or trusts, partnerships, limited liability companies or other
entities for the benefit of such family members, (B) transfers of Restricted Merger Consideration Shares to a wholly-owned subsidiary,
parent, general partner, limited partner, retired partner, member or retired member of the undersigned, or (C) transfers of Restricted
Merger Consideration Shares by such Stockholder in non-public transactions; provided, however, that in each case, (1) such
transferee takes such Restricted Merger Consideration Shares subject to all of the provisions of this Stockholders Agreement, and
(2) no filing by any party (transferor or transferee) under the Securities Exchange Act of 1934, as amended, shall be required
or shall be voluntarily made in connection with such transfer of Restricted Merger Consideration Shares.

 

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(d)          No Actions.
From and after the date hereof, except as otherwise permitted by this Stockholders Agreement, such Stockholder will not commit
any act that would reasonably be expected to restrict or otherwise adversely affect in any material respect Stockholder’s
legal power, authority and right to vote all of the Shares. Without limiting the generality of the foregoing, except as required
by this Stockholders Agreement, from and after the date hereof, such Stockholder will not enter into any voting agreement with
any Person with respect to any of the Shares, grant any Person any proxy (revocable or irrevocable) or power of attorney with respect
to any of the Shares, deposit any of the Shares in a voting trust or otherwise enter into any Contract with any Person limiting
or affecting such Stockholder’s legal power, capacity, authority or right to vote the Shares in favor of the Merger Agreement
and the Merger.

 

(e)          No Solicitation.
Such Stockholder shall not, nor shall it authorize or permit any officer, director, employee of such Stockholder or instruct any
investment banker, financial advisor, attorney or other advisor or representative of such Stockholder to, directly or indirectly
(i) solicit, initiate, or encourage the submission of, any Company Takeover Proposal, (ii) enter into any agreement with respect
to or approve or recommend any Company Takeover Proposal or (iii) participate in any discussions or negotiations regarding, or
furnish to any Person any information with respect to the Company or any Subsidiary in connection with, or take any other action
to facilitate any inquiries or the making of any proposal that constitutes, or may reasonably be expected to lead to, any Company
Takeover Proposal. For the avoidance of doubt, a Stockholder may discuss any matters or information relating to the Company, any
Subsidiary or any actual or potential Company Takeover Proposal with any of the partners, members, officers, directors, employees,
advisors (including investment advisers), attorneys and other agents and representatives of (x) such Stockholder or any other Stockholder,
(y) Credit Suisse AG or one or more of its Affiliates (“CS”) or (z) the Company; provided, that the Stockholder
complies with its obligations under this Section 3(e).

 

(f)          Public Announcements.
During the Pre-Closing Period, except as may be required under applicable Law, such Stockholder shall not (and such Stockholder
shall not permit any of its representatives to) issue any press release or make any public statement regarding this Stockholders
Agreement, the Merger Agreement or the Merger, or regarding any of the other transactions contemplated by this Stockholders Agreement
or the Merger Agreement, without Parent's prior written consent. Unless made available to the public by any Stockholder or its
Affiliate, the foregoing shall not apply or otherwise restrict investor communications between any Stockholder and its investors.

 

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(g)          Exercise of Drag-Along.
With respect to the Shares, such Stockholder, simultaneously with CS and each other Stockholder, hereby agrees to exercise its
drag-along rights under Article 6 of the Aventine Stockholders Agreement in favor of the Merger Agreement and the Merger.
Pursuant to such exercise, such Stockholder shall furnish, together with CS and each other Stockholder, a Sale Notice (as such
term is defined in the Aventine Stockholders Agreement) to all other stockholders of the Company party to the Aventine Stockholders
Agreement in accordance with the terms thereof. Furthermore, at the reasonable request of Parent, Company or any other Stockholder,
such Stockholder agrees to execute such additional instruments and other writings, and take such other action, as Parent, Company
or any other Stockholder may reasonably request to effect or evidence the performance of Article 6 of the Aventine Stockholders
Agreement in connection with the Merger.

 

4.          Waiver of Dissenters’
Rights. Each Stockholder hereby irrevocably and unconditionally waives, and agrees not to assert, (a) any dissenters' rights
or any similar right relating to the Merger that Stockholder may have by virtue of, or with respect to, all of its shares of capital
stock of the Company, and (b) any right to object to the manner in which the consideration to be paid to the Stockholders of the
Company in connection with the Merger is to be calculated or paid pursuant to the Merger Agreement, or the nature or amount of
consideration to be paid to Stockholder or any other stockholder of the Company pursuant to the Merger Agreement.

 

5.          Parent Covenants. Until
the termination of this Stockholders Agreement in accordance with Section 8(b), Parent hereby agrees not to consent to or
permit the amendment of Section 6.13(b) of the Merger Agreement without the prior consent of Stockholders holding at least
a majority of the Shares.

 

6.          Action in Stockholder Capacity
Only. No Stockholder makes an agreement or understanding herein in such Stockholder’s capacity as a director, officer
or employee of the Company. Each Stockholder is executing this Stockholders Agreement solely in such Stockholder’s capacity
as a record holder and beneficial owner of the Shares, and nothing herein shall limit or affect any actions taken in such Stockholder's
capacity as an officer, director or employee of the Company.

 

7.          Additional Shares. For the
avoidance of doubt, if, after the date hereof, Stockholders acquire beneficial or record ownership of any additional shares of
capital stock of the Company (any such shares, “Additional Shares”), including, without limitation, upon exercise
of any option, warrant or right to acquire shares of capital stock of the Company or through any stock dividend or stock split,
the provisions of this Stockholders Agreement applicable to the Shares shall not be applicable to such Additional Shares; provided,
however, that the provisions of Section 4 of this Stockholders Agreement shall apply to any Additional Shares.

 

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8.          Amendments; Termination.

 

(a)          This Stockholders Agreement
may not be modified, amended, altered or supplemented, except upon the execution and delivery of a written agreement executed by
the parties hereto.

 

(b)          This Stockholders Agreement
shall terminate upon the first to occur of (i) the Closing Date, (ii) the date of any material modification, waiver or amendment
to any provision of the Merger Agreement that reduces the amount, changes the form or otherwise adversely affects the consideration
payable to the Stockholder pursuant to the Merger Agreement as in effect on the date hereof, (iii) the valid termination of the
Merger Agreement in accordance with its terms, and (iv) the mutual written consent of all of the parties hereto. Upon due termination
of this Stockholders Agreement, no party shall have any further obligations or liabilities under this Stockholders Agreement; provided,
however, that: (x) no party shall be relieved of any obligation or liability arising from any prior breach by such party of
any representation, warranty, covenant or obligation of Stockholders contained in this Stockholders Agreement; and (y) subject
to Section 16, Stockholders shall, in all events, remain bound by and continue to be subject to the provisions set forth
in Sections 7 (excluding the proviso therein), 8, 9, 11 through 15 and 17 through 19
of this Stockholders Agreement; and (z) if this Stockholders Agreement terminates as a result of the occurrence of the Closing
Date, Stockholders shall, in all events, remain bound by and continue to be subject to the provisions set forth in the Sections
referenced in subsection (y) above and Sections 3(c), 4 and 7 (including the proviso therein).

 

9.          Severability. If any term
or other provision of this Stockholders Agreement is invalid, illegal or incapable of being enforced by any rule of law, or public
policy, all other terms, conditions and provisions of this Stockholders Agreement shall nevertheless remain in full force and effect
so long as the economic and legal substance of the transactions contemplated hereby are not affected in any manner materially adverse
to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the
parties shall negotiate in good faith to modify this Stockholders Agreement so as to effect the original intent of the parties
as closely as possible in a mutually acceptable manner in order that the transactions contemplated by this Stockholders Agreement
may be consummated as originally contemplated to the fullest extent possible. If the parties fail to so agree within ten (10) Business
Days of such determination that any term or other provision is invalid, illegal or incapable of being enforced, such holding shall
not affect the validity or enforceability of any other aspect hereof (or of such provision in another jurisdiction) and the parties
agree and hereby request that the court or arbitrator(s) make such valid modifications to (or replacement of, if necessary) the
invalid provision as are necessary and reasonable to most closely approximate the parties' intent as evidenced hereby as a whole.

 

10.          Execution in Counterparts;
Exchanges by Facsimile or Electronic Transmission. This Stockholders Agreement may be executed in counterparts, each of which
shall be an original, with the same effect as if the signatures hereto and thereto were upon the same instrument. The exchange
of a fully executed Stockholders Agreement (in counterparts or otherwise) by facsimile or electronic transmission shall be sufficient
to bind the parties to the terms of this Stockholders Agreement.

 

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11.          Specific Performance. The
parties hereto agree that the failure for any reason of a Stockholder to perform any of such Stockholder’s covenants or obligations
under this Stockholders Agreement will cause irreparable harm or injury to Parent with respect to which money damages would not
be an adequate remedy. Accordingly, such Stockholder agrees that, in seeking to enforce this Stockholders Agreement against such
Stockholder, Parent shall be entitled to specific performance and injunctive and other equitable relief in addition to any other
remedy available at law, in equity or otherwise.

 

12.          Governing Law; Submission to
Jurisdiction.

 

(a)          This Stockholders Agreement
shall be construed in accordance with, and governed in all respects by, the internal Laws of the State of Delaware (without giving
effect to principles of conflicts of laws which would result in the application of the Law of any other jurisdiction). Any action,
suit or proceeding relating to this Stockholders Agreement or the enforcement of any provision of this Stockholders Agreement may
be brought or otherwise commenced in any state or federal court located in Wilmington, Delaware. Each party to this Stockholders
Agreement: (i) irrevocably and unconditionally consents and submits to the exclusive jurisdiction and venue of the state and federal
courts located in the State of Delaware; (ii) agrees that each state and federal court located in Wilmington, Delaware shall be
deemed to be a convenient forum; (iii) agrees not to assert (by way of motion, as a defense or otherwise), in any such action,
suit or proceeding commenced in any state or federal court located in Wilmington, Delaware, any claim that such party is not subject
personally to the jurisdiction of such court, that such action, suit or proceeding has been brought in an inconvenient forum, that
the venue of such proceeding is improper or that this Stockholders Agreement or the subject matter of this Stockholders Agreement
may not be enforced in or by such court; and (iv) waives such party’s right to trial by jury.

 

(b)          EACH PARTY ACKNOWLEDGES
AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS STOCKHOLDERS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT
ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY, INCLUDING ANY CONTROVERSY INVOLVING ANY REPRESENTATIVE OF PARENT UNDER THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES
THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE
IMPLICATIONS OF THIS WAIVER, (iii) EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (iv) EACH PARTY HAS BEEN INDUCED TO ENTER INTO
THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 12(b).

 

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13.          Successors and Assigns.
This Stockholders Agreement shall be binding upon: Parent and its successors and assigns (if any); each Stockholder and the Stockholders'
heirs, executors, personal representatives, successors and assigns (if any). This Stockholders Agreement shall inure to the benefit
of Parent and its respective successors and assigns (if any). Neither this Agreement nor any of the rights, interests or obligations
hereunder shall be assigned by any of the parties hereto (whether by operation of law or otherwise) without the prior written consent
of the other party; provided, however, that Parent may assign this Stockholders Agreement or any of the rights, interests
hereunder to an affiliate of Parent or to any financing sources.

 

14.          Entire Agreement. This
Stockholders Agreement and the Merger Agreement set forth the entire understanding of the parties hereto relating to the subject
matter hereof and thereof and supersede all prior agreements and understandings among or between any of the parties relating to
the subject matter hereof and thereof.

 

15.          Notices. Any notice or
other communication required or permitted to be delivered to any party under this Stockholders Agreement shall be in writing and
shall be deemed properly delivered, given and received when delivered (by hand, by registered mail, by courier or express delivery
service or by facsimile) to the address or facsimile telephone number set forth beneath the name of such party below (or to such
other address or facsimile telephone number as such party shall have specified in a written notice given to the other parties hereto):

 

If to Parent, to:

 

Pacific Ethanol, Inc.

400 Capitol Mall, Suite 2060

Sacramento, CA 95814

Attention: Christopher W. Wright, Esq., General Counsel

Email: cwright@pacificethanol.com

Facsimile No.: (916) 403-2785

 

with copy to:

 

Troutman Sanders LLP

5 Park Plaza, Suite 1400

Irvine, CA 92614

Attention: Larry A. Cerutti, Esq.

Email: larry.cerutti@troutmansanders.com

Facsimile No.: (949) 622-2739

 

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If to a Stockholder, to the address set
forth beneath such Stockholders name on the signature page hereto with copy to:

 

Candlewood
Investment Group, LP

777 Third Avenue, Suite 19B

New York, NY 10017

Attention: David Koenig

                   Janet Miller, General Counsel/COO

Email: dkoenig@candlewoodgroup.com; compliance@candlewoodgroup.com

Facsimile No.: (212) 493-4492 

 

16.          Condition to Effectiveness.
This Stockholders Agreement shall not be effective and shall be of no force or effect until (a) the Merger Agreement is executed
by all parties thereto, (b) this Agreement is executed by all parties hereto and (c) such time as CS has executed an agreement
substantially identical to this Stockholders Agreement with respect to all shares of the Company’s capital stock beneficially
held by CS, after giving effect to the Third Party Transfers (collectively, the “CS Shares”), pursuant to which
CS agrees to vote its Pro Rata Share of an aggregate 51% of the issued and outstanding shares of capital stock of the Company (together
with the Shares) in favor of the Merger Agreement and the Merger.

 

17.          No Ownership Interest.
Except as otherwise expressly provided herein, nothing contained in this Stockholders Agreement shall be deemed to vest in Parent
or Merger Sub any direct or indirect ownership or incidence of ownership of or with respect to the Shares. All rights, ownership
and economic benefits of and relating to the Shares shall remain vested in and belong to each applicable Stockholder, and neither
Parent nor Merger Sub shall have any authority to manage, direct, restrict, regulate, govern, or administer any of the policies
or operations of the Company or exercise any power or authority to direct such Stockholder in the voting of any of the Shares,
except as otherwise expressly provided herein.

 

18.          Stockholder Obligations Several
and Not Joint. The obligations of each Stockholder hereunder shall be several and not joint, and no Stockholder shall be liable
for any breach of the terms of this Agreement by any other Stockholder.

 

19.          Definitions.

 

“Aventine Stockholders
Agreement” means that certain Stockholders Agreement dated as of September 24, 2012 by and among Aventine Renewable Energy
Holdings, Inc. and certain investors and stockholders party thereto.

 

“Encumbrance”
means, except (i) as provided in the ordinary course with any Stockholder’s prime broker, or (ii) pursuant to the Aventine
Stockholders Agreement, any lien, pledge, hypothecation, charge, mortgage, security interest, encumbrance, claim, infringement,
interference, option, right of first refusal, preemptive right or restriction of any nature (including any restriction on the voting
of any security, any restriction on the transfer of any security or other asset, any restriction on the receipt of any income derived
from any asset, any restriction on the use of any asset and any restriction on the possession, exercise or transfer of any other
attribute of ownership of any asset).

 

“Entity” means
any corporation (including any non-profit corporation), general partnership, limited partnership, limited liability partnership,
joint venture, estate, trust, company (including any limited liability company or joint stock company), firm or other enterprise,
association, organization or entity.

 

[Remainder of Page Intentionally left
Blank.]

 

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IN WITNESS WHEREOF, the parties
hereto have executed this Stockholders Agreement as of the date first above written.

 

PACIFIC
ETHANOL, INC.

 

 
By:
/s/ NEIL M. KOEHLER
    Name: Neil M. Koehler

    Title:
Chief Executive Officer

 

 

 

 
STOCKHOLDER:
Candlewood Special Situations Master Fund, Ltd.

 

 

By: /s/ DAVID KOENIG
 
  Name: David Koenig

                Authorized Signatory

 

 

 

 
STOCKHOLDER:
CWD OC 522 Master Fund, Ltd.

 

 

By:
/s/ DAVID KOENIG

    Name: David Koenig

                Authorized Signatory

 

 

 

 

STOCKHOLDER:
Candlewood Financial Opportunities Master Fund, LP

 

 

By:
/s/ DAVID KOENIG

    Name: David Koenig

                Authorized Signatory

 

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STOCKHOLDER: Candlewood
Financial Opportunities Fund, LLC

 

 

By:
/s/ DAVID KOENIG

    Name: David Koenig

                Authorized Signatory

 

 

 

 

STOCKHOLDER:
Flagler Master Fund SPC Ltd., for itself and on behalf  of its Class A Segregated Portfolio

 

 

By:
/s/ DAVID KOENIG

    Name: David Koenig

                 Authorized Signatory

 

 

 

 

STOCKHOLDER:
Flagler Master Fund SPC Ltd., for itself and on behalf of its Class B Segregated Portfolio

 

 

By:
/s/ DAVID KOENIG

    Name: David Koenig

                Authorized Signatory

 

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EXHIBIT A

All Company capital stock held by
Stockholders 

	 	December 30,2014	Post-Third
Party
Transfers	Third Party

Transfers
	TOTAL held by Stockholders	8,439,977	7,600,533 	(839,444) 
	Candlewood Special Situations Master Fund, Ltd.	3,913,400	3,859,390 	(54,010)
	CWD OC 522 Master Fund, Ltd.	3,476,269	2,902,228 	(574,041)
	Candlewood Financial Opportunities Master Fund, LP	253,440	246,392 	(7,048)
	Candlewood Financial Opportunities Fund, LLC	181,393	61,598 	(119,795)
	Flagler Master Fund SPC Ltd. – Class A Segregated Portfolio	431,378	432,052 	674
	Flagler Master Fund SPC Ltd. – Class B Segregated Portfolio	184,097	98,873 	(85,224)

 

    	13

    	 

    

 

EXHIBIT B

All Shares held by Stockholders &
Related Proxy Documents 

	TOTAL
held by Stockholders	     5,299,342 	 
	Candlewood Special Situations Master Fund, Ltd.	     2,690,894 	 
	CWD OC 522 Master Fund, Ltd.	     2,023,529 	 
	Candlewood Financial Opportunities Master Fund, LP	         171,792 	 
	Candlewood Financial Opportunities Fund, LLC	           42,948 	 
	Flagler Master Fund SPC Ltd. – Class A Segregated Portfolio	         301,241 	 
	Flagler Master Fund SPC Ltd. – Class B Segregated Portfolio	           68,938 	 
	 	 	 
	Credit Suisse	    
1,946,6961	 
	 	 	 
	Total	     7,246,038 	51.0%
	 	   14,207,917 	 

		1.	Investment Management Agreement effective as of September 30, 2010 between the Candlewood Special Situations Master Fund, Ltd.
and Candlewood Investment Group, LP

		2.	Investment Management Agreement effective as of August 17, 2011 by and among Candlewood Investment Group, LP, CWD OC 522 Offshore
Fund, Ltd., CWD OC 522 Master Fund, LTD., and that certain investor

		3.	Investment Advisory Agreement made August 1, 2013 by and between Candlewood Financial Opportunities Master Fund, LP, Candlewood
Investment Group Financial Advisors, LLC, and Candlewood Financial Opportunities General, LLC

		4.	Investment Advisory Agreement made July 19, 2013 by and between Candlewood Financial Opportunities Fund, LLC, Candlewood Investment
Group Financial Advisors, LLC, and Candlewood Financial Opportunities General, LLC

		5.	Amended and Restated Investment Management Agreement effective as of May 28, 2014 entered into by and among Candlewood Investment
Group, LP, Flagler Offshore Fund, Ltd., Flagler Master Fund SPC Ltd, on behalf of its Class A Segregated Portfolio and its Class
B Segregated Portfolio and that certain investment advisor, general partner and/or managing member to investment funds or other
accounts

_______________

1
As provided by Credit Suisse Securities (USA) LLC. Stockholders do not represent or warrant as to the accuracy of
the Credit Suisse stockholder holdings.

 

    	14Exhibit 10.2

 

STOCKHOLDERS AGREEMENT 

 

THIS STOCKHOLDERS AGREEMENT (the “Stockholders
Agreement”), dated as of December 30, 2014, is by and among the entity holding shares of Aventine Renewable Energy Holdings,
Inc. as set forth in the signature pages hereto (the “Stockholder”) and Pacific Ethanol, Inc., a Delaware corporation
(“Parent”).

 

RECITALS

 

WHEREAS, contemporaneously with
the execution and delivery of this Stockholders Agreement, Parent, AVR Merger Sub, Inc., a Delaware corporation and wholly-owned
subsidiary of Parent (the “Merger Sub”), and Aventine Renewable Energy Holdings, Inc., a Delaware corporation
(the “Company”), are entering into an Agreement and Plan of Merger (the “Merger Agreement”),
dated as of the date hereof, which provides for the merger of Merger Sub with and into the Company, with the Company surviving
as a wholly owned subsidiary of Parent (the “Merger”);

 

WHEREAS, capitalized terms used
herein and not otherwise defined shall have the meanings assigned such terms in the Merger Agreement;

 

WHEREAS, the Stockholder holds
of record and owns beneficially the number of shares of the Company’s capital stock set forth on Exhibit A, certain
of which shares, as noted on Exhibit A, are subject to pending sales by the Stockholder to a third party pursuant to one
or more transfer agreements entered into prior to the date hereof (collectively, the “Third Party Transfers”);

 

WHEREAS, the Stockholder wishes
to enter into this Stockholders Agreement solely with respect to its Pro Rata Share of an aggregate 51% of the issued and outstanding
shares of capital stock of the Company (the Stockholder’s shares described herein, collectively, the “Shares,”
are set forth on Exhibit B); for purposes of this Stockholders Agreement, “Pro Rata Share” means,
as to the Stockholder, a fraction, (i) the numerator of which is the number of shares of the Company’s capital stock
held by the Stockholder as set forth on Exhibit A, and (ii) the denominator of which is the sum of (A) the number of
shares of the Company’s capital stock held by the Stockholder, in each case after the Third Party Transfers, and (B) the
Candlewood Shares (as defined in Section 16 below); and

 

WHEREAS, the Stockholder stands
to receive a material benefit from the Merger in the form of the consideration payable in the Merger in respect of the Shares and,
as a condition to entering into the Merger Agreement, Parent has required that the Stockholder agrees, and the Stockholder has
agreed, to enter into this Stockholders Agreement.

 

    	1

    	 

    

 

NOW, THEREFORE, in consideration
of the foregoing and the respective representations, warranties, covenants and obligations set forth herein, and intending to be
legally bound hereby, each of the parties hereto agrees as follows:

 

1.          Representations and Warranties
of the Stockholder. The Stockholder hereby represents and warrants to Parent as follows:

 

(a)          Title. As
of the date hereof, such Stockholder holds of record and owns beneficially, free and clear of any Encumbrances (other than restrictions
under applicable securities Laws), all of the Shares set forth opposite its name on Exhibit B hereto. Other than the Shares
and those additional shares of Company stock set forth on Exhibit A, such Stockholder does not, directly or indirectly,
own any shares of capital stock of the Company, any option, warrant or other right to acquire shares of capital stock of the Company
or any other securities of the Company. Other than the agreements subject to the Third Party Transfers, such Stockholder is not
a party to any executory written or oral agreement, contract, subcontract, lease, instrument, commitment or undertaking of any
nature (“Contract”) (other than this Stockholders Agreement) that could require such Stockholder to sell, transfer
or otherwise dispose of any capital stock of the Company and each Subsidiary of the Company.

 

(b)          Right to Vote.
Such Stockholder has full legal power, authority and right to vote all of the Shares, in favor of the approval and authorization
of the Merger Agreement and the principal terms of the Merger without any approval, consent, ratification, permission, waiver or
authorization (including any consents of Governmental Entities) (“Consent”) of, or any other action on the part
of, any other Person. Without limiting the generality of the foregoing, except as otherwise provided in this Stockholders Agreement
or as set forth on Exhibit B hereto, such Stockholder has not entered into any voting agreement with any Person with respect
to any of the Shares, granted any Person any proxy (revocable or irrevocable) or power of attorney with respect to any of the Shares,
deposited any of the Shares in a voting trust or entered into any arrangement or agreement with any Person limiting or affecting
such Stockholder’s legal power, authority or right to vote the Shares on any matter.

 

(c)          Authority.
Such Stockholder has full legal power, capacity, authority and right to execute and deliver, and to perform its obligations under,
this Stockholders Agreement. This Stockholders Agreement has been duly and validly authorized, executed and delivered by such Stockholder
and constitutes a valid and binding agreement of Stockholder enforceable against Stockholder in accordance with its terms.

 

(d)          Opportunity.
Such Stockholder has had the opportunity to review this Stockholders Agreement and the Merger Agreement. Such Stockholder has had
adequate opportunity to discuss the requirements of this Stockholders Agreement with his or her professional advisors to the extent
such Stockholder has deemed necessary. Such Stockholder understands that its representations and agreements contained herein constitute
a material inducement and condition to Parent and Merger Sub in entering the Merger.

 

(e)          No Conflicts;
Consents. The execution and delivery of this Stockholders Agreement by such Stockholder does not and will not, and the performance
of this Stockholders Agreement by such Stockholder will not, result in or constitute (with or without notice or lapse of time)
any breach of or default under, or result (with or without notice or lapse of time) in the creation of any Encumbrance on any of
the Shares pursuant to, any Contract to which such Stockholder is a party or by which such Stockholder or any of the Shares are
bound or affected as of the date of this Stockholders Agreement. The execution and delivery of this Stockholders Agreement by such
Stockholder does not and will not, and the performance of this Stockholders Agreement by such Stockholder will not, require any
Consent of any Person.

 

    	2

    	 

    

 

(f)          Due Organization.

 

(i)          If such Stockholder is an Entity:
(A) such Stockholder is duly organized, validly existing and in good standing under the laws of the jurisdiction under which such
Stockholder is organized; (B) the execution, delivery and performance of this Stockholders Agreement by such Stockholder has been
duly authorized by all necessary action on the part of the board of directors of such Stockholder or other Persons performing similar
functions; and (C) the execution and delivery of this Stockholders Agreement by such Stockholder does not and will not, and the
performance of this Stockholders Agreement by such Stockholder will not, (I) result in or constitute any breach of or default under
the partnership agreement or any of the other organizational documents of such Stockholder, or (II) require the approval of holders
of voting or equity interests in Stockholder, other than any approval already obtained, except in each case as will not adversely
affect the ability of such Stockholder to perform its obligations hereunder in any material respect or to consummate the transactions
contemplated hereby in a timely manner.

 

(ii)          If such Stockholder is an executor
of an estate or trustee of a trust: (A) such Stockholder is the sole executor or trustee of such estate or trust; (B) such Stockholder
has the sole power and authority to act on behalf of and bind such estate or trust; and (C) the execution and delivery of this
Stockholders Agreement by such Stockholder does not and will not, and the performance of this Stockholders Agreement by such Stockholder
will not, (I) result in or constitute any breach of or default under the will, trust agreement or other document relating to such
estate or trust, or (II) require the approval of any beneficiary of such estate or trust, other than any approval already obtained.

 

(g)          Accuracy of Representations
and Warranties. All of such Stockholder's representations and warranties contained in this Stockholders Agreement will be accurate
on the Closing as if made on and as of the Closing, provided, however, that Exhibits A and B may be updated
as of Closing to reflect the consummation of the Third Party Transfers and/or transfers of shares or Shares permitted pursuant
to the terms of this Stockholders Agreement.

 

2.          Representations and Warranties
of Parent. Parent hereby represents and warrants to Stockholder as follows:

 

(a)          Authority.
Parent has full legal power, capacity, authority and right to execute and deliver, and to perform its obligations under, this Stockholders
Agreement. This Stockholders Agreement has been duly and validly authorized, executed and delivered by Parent and constitutes a
valid and binding agreement of Parent enforceable against Parent in accordance with its terms.

 

    	3

    	 

    

 

3.          Stockholder Covenants. Until
the termination of this Stockholders Agreement in accordance with Section 8(b), the Stockholder hereby agrees as follows:

 

(a)          Restrictions on
Transfer. Such Stockholder agrees that, except for the Third Party Transfers, during the period from the Execution Date of
the Merger Agreement through the Effective Time (the “Pre-Closing Period”), such Stockholder shall not directly
or indirectly sell or otherwise transfer or dispose of, or pledge or otherwise permit to be subject to any Encumbrance (other than
the Merger Agreement), any of the Shares, or any direct or indirect beneficial interest therein, unless such proposed transferee
agrees, pursuant to a written agreement in form and content reasonably satisfactory to Parent, to be bound by, and comply with,
the terms and provisions of this Stockholders Agreement in its entirety (subject to any necessary name or like changes) with respect
to such transferred Shares.

 

(b)          Agreement to Vote.
Such Stockholder agrees that, following the execution and delivery of the Merger Agreement, such Stockholder shall vote the Shares
at regular or special meetings of stockholders of the Company, including adjournments thereof, or in any other circumstances upon
which a vote, consent or other approval (including by written consent) is sought (i) with respect to the Merger and the Merger
Agreement, in favor of any proposal to approve the Merger Agreement and the Merger and (ii) with respect to all other proposals
submitted to the stockholders of the Company, which, directly or indirectly, would reasonably be expected to prevent or materially
delay the consummation of the Merger or the transactions contemplated by the Merger Agreement, in such manner as Parent may direct.
Such Stockholder agrees not to withdraw any such vote and not to take any other action that is inconsistent with such Stockholder’s
obligation to vote in favor of approval of the Merger Agreement and the Merger or that may have the effect of delaying or interfering
with the Merger.

 

(c)          Market Stand-Off
Agreement. Except as provided herein, such Stockholder will not, without the prior written consent of Parent, directly or indirectly
offer, sell or contract or grant any option to sell, or otherwise dispose of (including short sales, sales against the box and/or
other hedging or derivative transactions), pledge or transfer 100% of the shares of Parent Stock acquired by such Stockholder (including
any Parent Voting Common Stock into which any Parent Non-Voting Common Stock is converted) pursuant to the terms of the Merger
Agreement in exchange for the Shares (the “Restricted Merger Consideration Shares”) for a period commencing
on the Closing Date and continuing through (i) the 30th day thereafter, after which an aggregate of 25% of the Restricted
Merger Consideration Shares shall be released from the foregoing restrictions, (ii) the 60th day thereafter, after which
an aggregate of 50% of the Restricted Merger Consideration Shares shall be released from the foregoing restrictions, (iii) the
90th day thereafter, after which an aggregate of 75% of the Restricted Merger Consideration Shares shall be released
from the foregoing restrictions, and (iv) the 120th day thereafter, after which an aggregate of 100% of the Restricted
Merger Consideration Shares shall be released from the foregoing restrictions. The foregoing sentence shall not apply to (A) transfers
of Restricted Merger Consideration Shares to immediate family members or trusts, partnerships, limited liability companies or other
entities for the benefit of such family members, (B) transfers of Restricted Merger Consideration Shares to a wholly-owned subsidiary,
parent, general partner, limited partner, retired partner, member or retired member of the undersigned, or (C) transfers of Restricted
Merger Consideration Shares by such Stockholder in non-public transactions; provided, however, that in each case, (1) such
transferee takes such Restricted Merger Consideration Shares subject to all of the provisions of this Stockholders Agreement, and
(2) no filing by any party (transferor or transferee) under the Securities Exchange Act of 1934, as amended, shall be required
or shall be voluntarily made in connection with such transfer of Restricted Merger Consideration Shares.

 

    	4

    	 

    

 

(d)          No Actions.
From and after the date hereof, except as otherwise permitted by this Stockholders Agreement, such Stockholder will not commit
any act that would reasonably be expected to restrict or otherwise adversely affect in any material respect Stockholder’s
legal power, authority and right to vote all of the Shares. Without limiting the generality of the foregoing, except as required
by this Stockholders Agreement, from and after the date hereof, such Stockholder will not enter into any voting agreement with
any Person with respect to any of the Shares, grant any Person any proxy (revocable or irrevocable) or power of attorney with respect
to any of the Shares, deposit any of the Shares in a voting trust or otherwise enter into any Contract with any Person limiting
or affecting such Stockholder’s legal power, capacity, authority or right to vote the Shares in favor of the Merger Agreement
and the Merger.

 

(e)          No Solicitation.
Such Stockholder shall not, nor shall it authorize or permit any officer, director, employee of such Stockholder or instruct any
investment banker, financial advisor, attorney or other advisor or representative of such Stockholder to, directly or indirectly
(i) solicit, initiate, or encourage the submission of, any Company Takeover Proposal, (ii) enter into any agreement with respect
to or approve or recommend any Company Takeover Proposal or (iii) participate in any discussions or negotiations regarding, or
furnish to any Person any information with respect to the Company or any Subsidiary in connection with, or take any other action
to facilitate any inquiries or the making of any proposal that constitutes, or may reasonably be expected to lead to, any Company
Takeover Proposal. For the avoidance of doubt, the Stockholder may discuss any matters or information relating to the Company,
any Subsidiary or any actual or potential Company Takeover Proposal with any of the partners, members, officers, directors, employees,
advisors (including investment advisers), attorneys and other agents and representatives of (x) such Stockholder, (y) certain investment
funds for which Candlewood Investment Group, LP or one or more of its Affiliates provides investment advice (collectively, the
“Candlewood Entities”) or (z) the Company; provided, that the Stockholder complies with its obligations under
this Section 3(e).

 

(f)          Public Announcements.
During the Pre-Closing Period, except as may be required under applicable Law, such Stockholder shall not (and such Stockholder
shall not permit any of its representatives to) issue any press release or make any public statement regarding this Stockholders
Agreement, the Merger Agreement or the Merger, or regarding any of the other transactions contemplated by this Stockholders Agreement
or the Merger Agreement, without Parent's prior written consent. Unless made available to the public by the Stockholder or its
Affiliate, the foregoing shall not apply or otherwise restrict investor communications between the Stockholder and its investors.

 

    	5

    	 

    

 

(g)          Exercise of Drag-Along.
With respect to the Shares, such Stockholder, simultaneously with the Candlewood Entities, hereby agrees to exercise its drag-along
rights under Article 6 of the Aventine Stockholders Agreement in favor of the Merger Agreement and the Merger. Pursuant
to such exercise, such Stockholder shall furnish, together with the Candlewood Entities, a Sale Notice (as such term is defined
in the Aventine Stockholders Agreement) to all other stockholders of the Company party to the Aventine Stockholders Agreement in
accordance with the terms thereof. Furthermore, at the reasonable request of Parent or Company, such Stockholder agrees to execute
such additional instruments and other writings, and take such other action, as Parent or Company may reasonably request to effect
or evidence the performance of Article 6 of the Aventine Stockholders Agreement in connection with the Merger.

 

4.          Waiver of Dissenters’
Rights. The Stockholder hereby irrevocably and unconditionally waives, and agrees not to assert, (a) any dissenters' rights
or any similar right relating to the Merger that Stockholder may have by virtue of, or with respect to, all of its shares of capital
stock of the Company, and (b) any right to object to the manner in which the consideration to be paid to the Stockholder of the
Company in connection with the Merger is to be calculated or paid pursuant to the Merger Agreement, or the nature or amount of
consideration to be paid to Stockholder or any other stockholder of the Company pursuant to the Merger Agreement.

 

5.          Parent Covenants. Until
the termination of this Stockholders Agreement in accordance with Section 8(b), Parent hereby agrees not to consent to or
permit the amendment of Section 6.13(b) of the Merger Agreement without the prior consent of the Stockholder.

 

6.          Action in Stockholder Capacity
Only. No Stockholder makes an agreement or understanding herein in such Stockholder’s capacity as a director, officer
or employee of the Company. The Stockholder is executing this Stockholders Agreement solely in such Stockholder’s capacity
as a record holder and beneficial owner of the Shares, and nothing herein shall limit or affect any actions taken in such Stockholder's
capacity as an officer, director or employee of the Company.

 

7.          Additional Shares. For the
avoidance of doubt, if, after the date hereof, the Stockholder acquires beneficial or record ownership of any additional shares
of capital stock of the Company (any such shares, “Additional Shares”), including, without limitation, upon
exercise of any option, warrant or right to acquire shares of capital stock of the Company or through any stock dividend or stock
split, the provisions of this Stockholders Agreement applicable to the Shares shall not be applicable to such Additional Shares;
provided, however, that the provisions of Section 4 of this Stockholders Agreement shall apply to any
Additional Shares.

 

    	6

    	 

    

 

8.          Amendments; Termination.

 

(a)          This Stockholders Agreement
may not be modified, amended, altered or supplemented, except upon the execution and delivery of a written agreement executed by
the parties hereto.

 

(b)          This Stockholders Agreement
shall terminate upon the first to occur of (i) the Closing Date, (ii) the date of any material modification, waiver or amendment
to any provision of the Merger Agreement that reduces the amount, changes the form or otherwise adversely affects the consideration
payable to the Stockholder pursuant to the Merger Agreement as in effect on the date hereof, (iii) the valid termination of the
Merger Agreement in accordance with its terms, and (iv) the mutual written consent of all of the parties hereto. Upon due termination
of this Stockholders Agreement, no party shall have any further obligations or liabilities under this Stockholders Agreement; provided,
however, that: (x) no party shall be relieved of any obligation or liability arising from any prior breach by such party of
any representation, warranty, covenant or obligation of the Stockholder contained in this Stockholders Agreement; and (y) subject
to Section 16, the Stockholder shall, in all events, remain bound by and continue to be subject to the provisions set forth
in Sections 7 (excluding the proviso therein), 8, 9, 11 through 15 and 17 through 19
of this Stockholders Agreement; and (z) if this Stockholders Agreement terminates as a result of the occurrence of the Closing
Date, the Stockholder shall, in all events, remain bound by and continue to be subject to the provisions set forth in the Sections
referenced in subsection (y) above and Sections 3(c), 4 and 7 (including the proviso therein).

 

9.          Severability. If any term
or other provision of this Stockholders Agreement is invalid, illegal or incapable of being enforced by any rule of law, or public
policy, all other terms, conditions and provisions of this Stockholders Agreement shall nevertheless remain in full force and effect
so long as the economic and legal substance of the transactions contemplated hereby are not affected in any manner materially adverse
to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the
parties shall negotiate in good faith to modify this Stockholders Agreement so as to effect the original intent of the parties
as closely as possible in a mutually acceptable manner in order that the transactions contemplated by this Stockholders Agreement
may be consummated as originally contemplated to the fullest extent possible. If the parties fail to so agree within ten (10) Business
Days of such determination that any term or other provision is invalid, illegal or incapable of being enforced, such holding shall
not affect the validity or enforceability of any other aspect hereof (or of such provision in another jurisdiction) and the parties
agree and hereby request that the court or arbitrator(s) make such valid modifications to (or replacement of, if necessary) the
invalid provision as are necessary and reasonable to most closely approximate the parties' intent as evidenced hereby as a whole.

 

10.          Execution in Counterparts;
Exchanges by Facsimile or Electronic Transmission. This Stockholders Agreement may be executed in counterparts, each of which
shall be an original, with the same effect as if the signatures hereto and thereto were upon the same instrument. The exchange
of a fully executed Stockholders Agreement (in counterparts or otherwise) by facsimile or electronic transmission shall be sufficient
to bind the parties to the terms of this Stockholders Agreement.

 

    	7

    	 

    

 

11.          Specific Performance. The
parties hereto agree that the failure for any reason of the Stockholder to perform any of Stockholder’s covenants or obligations
under this Stockholders Agreement will cause irreparable harm or injury to Parent with respect to which money damages would not
be an adequate remedy. Accordingly, the Stockholder agrees that, in seeking to enforce this Stockholder Agreement against the Stockholder,
Parent shall be entitled to specific performance and injunctive and other equitable relief in addition to any other remedy available
at law, in equity or otherwise.

 

12.          Governing Law; Submission to
Jurisdiction.

 

(a)          This Stockholders Agreement
shall be construed in accordance with, and governed in all respects by, the internal Laws of the State of Delaware (without giving
effect to principles of conflicts of laws which would result in the application of the Law of any other jurisdiction). Any action,
suit or proceeding relating to this Stockholders Agreement or the enforcement of any provision of this Stockholders Agreement may
be brought or otherwise commenced in any state or federal court located in Wilmington, Delaware. Each party to this Stockholders
Agreement: (i) irrevocably and unconditionally consents and submits to the exclusive jurisdiction and venue of the state and federal
courts located in the State of Delaware; (ii) agrees that each state and federal court located in Wilmington, Delaware shall be
deemed to be a convenient forum; (iii) agrees not to assert (by way of motion, as a defense or otherwise), in any such action,
suit or proceeding commenced in any state or federal court located in Wilmington, Delaware, any claim that such party is not subject
personally to the jurisdiction of such court, that such action, suit or proceeding has been brought in an inconvenient forum, that
the venue of such proceeding is improper or that this Stockholders Agreement or the subject matter of this Stockholders Agreement
may not be enforced in or by such court; and (iv) waives such party’s right to trial by jury.

 

(b)          EACH PARTY ACKNOWLEDGES
AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS STOCKHOLDERS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT
ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY, INCLUDING ANY CONTROVERSY INVOLVING ANY REPRESENTATIVE OF PARENT UNDER THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES
THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE
IMPLICATIONS OF THIS WAIVER, (iii) EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (iv) EACH PARTY HAS BEEN INDUCED TO ENTER INTO
THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 12(b).

 

    	8

    	 

    

 

13.          Successors and Assigns.
This Stockholders Agreement shall be binding upon: Parent and its successors and assigns (if any); the Stockholder and the Stockholder’s
heirs, executors, personal representatives, successors and assigns (if any). This Stockholders Agreement shall inure to the benefit
of Parent and its respective successors and assigns (if any). Neither this Agreement nor any of the rights, interests or obligations
hereunder shall be assigned by any of the parties hereto (whether by operation of law or otherwise) without the prior written consent
of the other party; provided, however, that Parent may assign this Stockholders Agreement or any of the rights, interests
hereunder to an affiliate of Parent or to any financing sources.

 

14.          Entire Agreement. This
Stockholders Agreement and the Merger Agreement set forth the entire understanding of the parties hereto relating to the subject
matter hereof and thereof and supersede all prior agreements and understandings among or between any of the parties relating to
the subject matter hereof and thereof.

 

15.          Notices. Any notice or
other communication required or permitted to be delivered to any party under this Stockholders Agreement shall be in writing and
shall be deemed properly delivered, given and received when delivered (by hand, by registered mail, by courier or express delivery
service or by facsimile) to the address or facsimile telephone number set forth beneath the name of such party below (or to such
other address or facsimile telephone number as such party shall have specified in a written notice given to the other parties hereto):

 

If to Parent, to:

 

Pacific Ethanol, Inc.

400 Capitol Mall, Suite 2060

Sacramento, CA 95814

Attention: Christopher W. Wright, Esq., General Counsel

Email: cwright@pacificethanol.com

Facsimile No.: (916) 403-2785

 

with copy to:

 

Troutman Sanders LLP

5 Park Plaza, Suite 1400

Irvine, CA 92614

Attention: Larry A. Cerutti, Esq.

Email: larry.cerutti@troutmansanders.com

Facsimile No.: (949) 622-2739

 

    	9

    	 

    

 

If to the Stockholder, to the address
set forth beneath the Stockholder’s name on the signature page hereto with copy to:

 

Credit
Suisse Securities (USA) LLC

11 Madison Avenue

New York, NY 10010

Attention: Ashwinee Sawh 

Email: Americas.loandocs@credit-suisse.com 

 

16.          Condition to Effectiveness.
This Stockholders Agreement shall not be effective and shall be of no force or effect until (a) the Merger Agreement is executed
by all parties thereto, (b) this Agreement is executed by all parties hereto and (c) such time as the Candlewood Entities have
executed an agreement substantially identical to this Stockholders Agreement with respect to all shares of the Company’s
capital stock beneficially held by such Candlewood Entities, after giving effect to the Third Party Transfers (collectively, the
“Candlewood Shares”), pursuant to which the Candlewood Entities agree to vote their respective Pro Rata Share
of an aggregate 51% of the issued and outstanding shares of capital stock of the Company (together with the Shares) in favor of
the Merger Agreement and the Merger.

 

17.          No Ownership Interest.
Except as otherwise expressly provided herein, nothing contained in this Stockholders Agreement shall be deemed to vest in Parent
or Merger Sub any direct or indirect ownership or incidence of ownership of or with respect to the Shares. All rights, ownership
and economic benefits of and relating to the Shares shall remain vested in and belong to each applicable Stockholder, and neither
Parent nor Merger Sub shall have any authority to manage, direct, restrict, regulate, govern, or administer any of the policies
or operations of the Company or exercise any power or authority to direct such Stockholder in the voting of any of the Shares,
except as otherwise expressly provided herein.

 

18.          Reserved.

 

19.          Definitions.

 

“Aventine Stockholders
Agreement” means that certain Stockholders Agreement dated as of September 24, 2012 by and among Aventine Renewable Energy
Holdings, Inc. and certain investors and stockholders party thereto.

 

“Encumbrance”
means, except (i) as provided in the ordinary course with the Stockholder’s prime broker, or (ii) pursuant to the Aventine
Stockholders Agreement, any lien, pledge, hypothecation, charge, mortgage, security interest, encumbrance, claim, infringement,
interference, option, right of first refusal, preemptive right or restriction of any nature (including any restriction on the voting
of any security, any restriction on the transfer of any security or other asset, any restriction on the receipt of any income derived
from any asset, any restriction on the use of any asset and any restriction on the possession, exercise or transfer of any other
attribute of ownership of any asset).

 

“Entity” means
any corporation (including any non-profit corporation), general partnership, limited partnership, limited liability partnership,
joint venture, estate, trust, company (including any limited liability company or joint stock company), firm or other enterprise,
association, organization or entity.

 

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Blank.]

 

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IN WITNESS WHEREOF, the parties
hereto have executed this Stockholders Agreement as of the date first above written.

 

PACIFIC
ETHANOL, INC.

 

 

By:
/s/ NEIL M. KOEHLER
    Name: Neil M. Koehler

    Title:
Chief Executive Officer

 

 

 

 

STOCKHOLDER:
Credit Suisse Securities (USA) LLC

 

 

By:
/s/ NORMAN PARTON 

    Name: Norman Parton

                Authorized
Signatory

 

    	11

    	 

    

 

EXHIBIT A

 

All Company capital stock held by
Stockholder

 

	 	December 30,2014	Post-Third
Party
Transfers	Third Party

Transfers
	TOTAL held by Stockholder	1,862,023	2,792,031 	930,008 
	 	 	 	 
	Credit Suisse Securities (USA) LLC	1,862,023	2,792,031 	930,008
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

    	12

    	 

    

 

EXHIBIT B

 

All Shares held by Stockholder

 

	 TOTAL held by Stockholder	     1,946,696 	 
	 	 	 
	Credit Suisse Securities (USA) LLC	     1,946,696 	 
	Candlewood Entities	     5,299,3421	 
	 	 	 
	Total	     7,246,038 	51.0%
	 	   14,207,917 	 

_______________

1
As provided by Candlewood Investment Group, LP. Stockholder does not represent or warrant as to the accuracy of the
Candlewood Entities’ holdings.

 

    	13

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