Document:

Exhibit 10.4

 

Execution Version

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS
AGREEMENT (this “Agreement”), dated as of December 22, 2019, is by and among Pacific Ethanol, Inc., a Delaware
corporation, with offices at 400 Capitol Mall, Suite 2060, Sacramento, California 95814 (the ”Company”),
and the undersigned holders (each, a “Holder,” and collectively, the “Holders”).

 

RECITALS

 

A. In
connection with the Senior Secured Note Amendment Agreement dated December 22, 2019 by and among the parties hereto (the “Note
Amendment Agreement”), the Company has agreed, upon the terms and subject to the conditions of the Note Amendment Agreement,
to issue to the Holders (i) an aggregate of 5,530,718 shares (the “Shares”) of the Company’s voting common
stock, $0.001 par value per share (the “Common Stock”), and (ii) warrants (“Warrants”) to
purchase an aggregate of 5,500,000 shares (the “Warrant Shares”) of Common Stock.

 

B. To
induce the Holders to consummate the transactions contemplated by the Note Amendment Agreement, the Company has agreed to provide
certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar
successor statute (collectively, the “Securities Act”), and applicable state securities laws.

 

AGREEMENT

 

NOW, THEREFORE,
in consideration of the premises and the mutual covenants contained herein and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and each of the Holders hereby agree as follows:

 

1. Definitions.

 

Capitalized terms used
herein and not otherwise defined herein shall have the respective meanings set forth in the Note Amendment Agreement. As used in
this Agreement, the following terms shall have the following meanings:

 

(a) “Additional
Common Shares” has the meaning set forth in the Note Amendment Agreement.

 

(b) “Business
Day” means any day other than Saturday, Sunday or any other day on which commercial banks in New York, New York are authorized
or required by law to remain closed.

 

(c) “Blue
Sky Filings” has the meaning set forth in Section 6(a).

 

(d) “Claims”
has the meaning set forth in Section 6(a).

 

(e) “Common
Stock” has the meaning set forth in the Recitals.

 

(f) “Cut
Back Shares” has the meaning set forth in Section 2(d).

 

     

     

    

  

(g) “Effective
Date” means the date that the applicable Registration Statement has been declared effective by the SEC.

 

(h) “Exchange
Act” has the meaning set forth in Section 3(b).

 

(i) “Filing
Deadline” means (i) with respect to the initial Registration Statement required to be filed pursuant to Section 2(a),
the 30th calendar day after the date of this Agreement, and (ii) with respect to any additional Registration Statements
that may be required to be filed by the Company pursuant to this Agreement, the date on which the Company was required to file
such additional Registration Statement pursuant to the terms of this Agreement.

 

(j) “FINRA”
has the meaning set forth in Section 3(k).

 

(k) “Holder”
means a Holder or any transferee or assignee of any Registrable Securities or Warrants, as applicable, to whom a Holder assigns
its rights under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance with Section
9 and any transferee or assignee thereof to whom a transferee or assignee of any Registrable Securities or Warrants, as applicable,
assigns its rights under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance with Section
9.

 

(l) “Indemnified
Damages” has the meaning set forth in Section 6(a).

 

(m) “Indemnified
Party” has the meaning set forth in Section 6(b).

 

(n) “Indemnified
Person” has the meaning set forth in Section 6(a).

 

(o) “Inspectors”
has the meaning set forth in Section 3(i).

 

(p) “Note
Amendment Agreement” has the meaning set forth in the Recitals.

 

(q) “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization
or a government or any department or agency thereof.

 

(r) “Records”
has the meaning set forth in Section 3(i).

 

(s) “register,”
“registered,” and “registration” refer to a registration effected by preparing and filing
one or more Registration Statements in compliance with the Securities Act and pursuant to Rule 415 and the declaration of effectiveness
of such Registration Statement(s) by the SEC.

 

(t) “Registrable
Securities” means (i) the Shares, (ii) the Additional Common Shares, if any, (iii) the Warrant Shares, and (iv) any capital
stock of the Company issued or issuable with respect to the Shares, any Additional Common Shares, the Warrants or the Warrant Shares,
including, without limitation, (1) as a result of any stock split, stock dividend, recapitalization, exchange or similar event
or otherwise and (2) shares of capital stock of the Company into which the shares of Common Stock are converted or exchanged and
shares of capital stock of a Successor Entity (as defined in the Warrants) into which the shares of Common Stock are converted
or exchanged, in each case, without regard to any limitations on issuance of Common Stock pursuant to the exercise of the Warrants.

 

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(u) “Registration
Period” has the meaning set forth in Section 3(a).

 

(v) “Registration
Statement” means a registration statement or registration statements of the Company filed under the Securities Act covering
Registrable Securities.

 

(w) “Required
Holders” means the holders of at least 66 2/3% of the aggregate principal amount of the Registrable Securities (excluding
any Registrable Securities held by the Company or any of its Subsidiaries).

 

(x) “Required
Registration Amount” means 5,530,718 Shares issued pursuant to the terms of the Note Amendment Agreement, any Additional
Common Shares issuable pursuant to the terms of the Note Amendment Agreement and 5,500,000 Warrant Shares issuable upon exercise
of the Warrants, all subject to adjustment as provided in Section 2(c).

 

(y) “Rule
144” means Rule 144 promulgated by the SEC under the Securities Act, as such rule may be amended from time to time, or
any other similar or successor rule or regulation of the SEC that may at any time permit the Holders to sell securities of the
Company to the public without registration.

 

(z) “Rule
415” means Rule 415 promulgated by the SEC under the Securities Act, as such rule may be amended from time to time, or
any other similar or successor rule or regulation of the SEC providing for offering securities on a continuous or delayed basis.

 

(aa)“Rule
424” means Rule 424 promulgated by the SEC under the Securities Act, as such rule may be amended from time to time, or
any other similar or successor rule or regulation of the SEC having substantially the same purpose and effect of such Rule.

 

(bb)“SEC”
means the United States Securities and Exchange Commission or any successor thereto.

 

(cc)“Securities
Act” has the meaning set forth in the Recitals.

 

(dd)“Selling
Stockholder Questionnaire” has the meaning set forth in Section 4(b).

 

(ee)“Shares”
has the meaning set forth in the Recitals.

 

(ff)“Staff”
has the meaning set forth in Section 2(d).

 

(gg)“Transaction
Agreements” means this Agreement, the Note Amendment Agreement, the Amended Notes and Security Agreement (as such terms
are defined in the Note Amendment Agreement) and the Warrants.

 

(hh)“Violations”
has the meaning set forth in Section 6(a).

 

(ii) “Warrants”
has the meaning set forth in the Recitals.

 

(jj)“Warrant
Shares” has the meaning set forth in the Recitals.

 

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2. Registration.

 

(a) Mandatory
Registration. The Company shall prepare and, as soon as practicable, but in no event later than the Filing Deadline, file with
the SEC an initial Registration Statement on Form S-1 covering the resale of all of the Registrable Securities, provided that such
initial Registration Statement shall register for resale the number of shares of Common Stock equal to the Required Registration
Amount as of the date such Registration Statement is initially filed with the SEC (but as to any Additional Common Shares, only
up to 1,106,144 Additional Common Shares that may be issued pursuant to the Note Amendment Agreement). Such initial Registration
Statement, and each other Registration Statement required to filed pursuant to the terms of this Agreement, shall contain (except
if otherwise directed by the Required Holders) the “Selling Security Holders” and “Plan of Distribution”
sections in substantially the form attached hereto as Exhibit B. The Company shall use its commercially reasonable best
efforts to have such initial Registration Statement, and each other Registration Statement required to filed pursuant to the terms
of this Agreement, declared effective by the SEC as soon as practicable and, with respect to the initial Registration Statement,
within sixty (60) days after the date of this Agreement.

 

(b) Use
of Form S-3. If the Company is eligible to use Form S-3 without regard to the limitation provided for in Instruction I.B.6
of Form S-3, the Company shall undertake to register the resale of the Registrable Securities on Form S-3 (or transition the registration
of the Registrable Securities from Form S-1 to Form S-3) as soon as practicable, provided that the Company shall maintain the effectiveness
of all Registration Statements then in effect until such time as a Registration Statement on Form S-3 covering the resale of all
the Registrable Securities has been declared effective by the SEC.

 

(c) Sufficient
Number of Shares Registered. In the event the number of shares available under any Registration Statement is insufficient to
cover all of the Registrable Securities required to be covered by such Registration Statement or a Holder’s allocated portion
of the Registrable Securities pursuant to Section 2(f), the Company shall amend such Registration Statement (if permissible),
or file with the SEC a new Registration Statement (if the Company is eligible to use Form S-3 without regard to the limitation
provided for in Instruction I.B.6 of Form S-3, then on the short form available therefor, if applicable), or both, so as to cover
at least the Required Registration Amount as of the trading day immediately preceding the date of the filing of such amendment
or new Registration Statement, in each case, as soon as practicable, but in any event not later than fifteen (15) days after the
necessity therefor arises (but taking account of any Staff position with respect to the date on which the Staff will permit such
amendment to the Registration Statement and/or such new Registration Statement (as the case may be) to be filed with the SEC).
The Company shall use its commercially reasonable best efforts to cause such amendment to such Registration Statement and/or such
new Registration Statement (as the case may be) to become effective as soon as practicable following the filing thereof with the
SEC.

 

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(d) Offering.
Notwithstanding anything to the contrary contained in this Agreement, in the event the staff of the SEC (the “Staff”)
or the SEC seeks to characterize any offering pursuant to a Registration Statement filed pursuant to this Agreement as constituting
an offering of securities by, or on behalf of, the Company, or in any other manner, such that the Staff or the SEC
do not permit such Registration Statement to become effective and used for resales in a manner that does not constitute such
an offering and that permits the continuous resale at the market by the Holders participating therein (or as otherwise
may be acceptable to each Holder) without being named therein as an “underwriter,” then the Company shall remove from
the Registration Statement such portion of the Registrable Securities (the “Cut Back Shares”) to be included
in such Registration Statement by all Holders until such time as the Staff and the SEC shall so permit such Registration Statement
to become effective as aforesaid. In making such reduction, the Company shall remove from the Registration Statement the number
of Registrable Securities to be included by all Holders on a pro rata basis (based upon the number of Registrable Securities otherwise
required to be included for each Holder) unless the inclusion of the Registrable Securities by a particular Holder or a particular
set of Holders are resulting in the Staff or the SEC’s “by or on behalf of the Company” offering position, in
which event the Registrable Securities held by such Holder or set of Holders shall be the only Registrable Securities subject to
reduction (and if by a set of Holders on a pro rata basis by such Holders or on such other basis as would result in the exclusion
of the least number of Registrable Securities by all such Holders).  In addition, in the event that the Staff or the SEC requires
any Holder seeking to sell securities under a Registration Statement filed pursuant to this Agreement to be specifically
identified as an “underwriter” in order to permit such Registration Statement to become effective, and such
Holder does not consent to being so named as an underwriter in such Registration Statement, then, in each such case, the Company shall
reduce the total number of Registrable Securities to be registered on behalf of such Holder, until such time as
the Staff or the SEC does not require such identification or until such Holder accepts such identification and the manner thereof. Any
reduction pursuant to this paragraph will first reduce all Registrable Securities other than those issued pursuant to the
Note Amendment Agreement. In the event of any reduction in Registrable Securities pursuant to this paragraph, an
affected Holder shall have the right to require, upon delivery of a written request to the Company signed by such Holder, the Company
to file a registration statement within thirty (30) days of such request (subject to any restrictions imposed by Rule 415 or required by
the Staff or the SEC) for resale by such Holder in a manner acceptable to such Holder, and the Company shall following such
request cause to be and keep effective such registration statement in the same manner as otherwise contemplated in this
Agreement for registration statements hereunder, in each case until such time as: (i) all Registrable Securities held by such
Holder have been registered and sold pursuant to an effective Registration Statement in a manner acceptable to such Holder or
(ii) all Registrable Securities may be resold by such Holder without restriction (including, without limitation, volume limitations)
pursuant to Rule 144 (taking account of any Staff position with respect to “affiliate” status) and without the need
for current public information required by Rule 144(c)(1) (or Rule 144(i)(2), if applicable) or (iii) such Holder agrees to be
named as an underwriter in any such Registration Statement in a manner acceptable to such Holder as to all Registrable Securities
held by such Holder and that have not theretofore been included in a Registration Statement under this Agreement (it being understood
that the special demand right under this sentence may be exercised by a Holder multiple times and with respect to limited amounts
of Registrable Securities in order to permit the resale thereof by such Holder as contemplated above).

 

(e) Piggyback
Registrations. Without limiting any obligation of the Company hereunder or under the Note Amendment Agreement, if there is
not an effective Registration Statement covering all of the Registrable Securities or the prospectus contained therein is not available
for use and the Company shall determine to prepare and file with the SEC a registration statement on Form S-1 (or on Form S-3 if
the Company is eligible to use Form S-3 without regard to the limitation provided for in Instruction I.B.6) relating to an offering
for its own account or the account of others under the Securities Act of any of its equity securities (other than on Form S-4 or
Form S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely
in connection with any acquisition of any entity or business or equity securities issuable in connection with the Company’s
stock option or other employee benefit plans), then the Company shall deliver to each Holder a written notice of such determination
and, if within fifteen (15) days after the date of the delivery of such notice, any such Holder shall so request in writing, the
Company shall include in such registration statement all or any part of such Registrable Securities such Holder requests to be
registered; provided, however, that the Company shall not be required to register any Registrable Securities pursuant
to this Section 2(e) that are eligible for resale pursuant to Rule 144 without restriction (including, without limitation,
volume restrictions) and without the need for current public information required by Rule 144(c)(1) (or Rule 144(i)(2), if applicable)
or that are the subject of a then-effective Registration Statement.

 

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(f) Allocation
of Registrable Securities. The initial number of Registrable Securities included in any Registration Statement and any increase
in the number of Registrable Securities included therein shall be allocated pro rata among the Holders based on the number of Registrable
Securities held by each Holder at the time such Registration Statement covering such initial number of Registrable Securities or
increase thereof is declared effective by the SEC. In the event that a Holder sells or otherwise transfers any of such Holder’s
Registrable Securities, each transferee or assignee (as the case may be) that becomes a Holder shall be allocated a pro rata portion
of the then-remaining number of Registrable Securities included in such Registration Statement for such transferor or assignee
(as the case may be). Any shares of Common Stock included in a Registration Statement and which remain allocated to any Person
which ceases to hold any Registrable Securities covered by such Registration Statement shall be allocated to the remaining Holders,
pro rata based on the number of Registrable Securities then held by such Holders which are covered by such Registration Statement.

 

(g) No
Inclusion of Other Securities. In no event shall the Company include any securities other than Registrable Securities on any
Registration Statement without the prior written consent of the Required Holders.

 

3. Related
Obligations.

 

The Company shall use
its commercially reasonable best efforts to effect the registration of the Registrable Securities in accordance with the intended
method of disposition thereof, and, pursuant thereto, the Company shall have the following obligations:

 

(a) The
Company shall promptly prepare and file with the SEC a Registration Statement with respect to all the Registrable Securities (but
in no event later than the applicable Filing Deadline) and use its commercially reasonable best efforts to cause such Registration
Statement to become effective as soon as practicable after such filing. The Company shall use its commercially reasonable best
efforts keep each Registration Statement effective (and the prospectus contained therein available for use) pursuant to Rule 415
for resales by the Holders on a delayed or continuous basis at then-prevailing market prices (and not fixed prices) at all times
until the earlier of (i) the date as of which all of the Holders may sell all of the Registrable Securities required to be covered
by such Registration Statement (disregarding any reduction pursuant to Section 2(e)) without restriction pursuant to Rule
144 (including, without limitation, volume restrictions) and without the need for current public information required by Rule 144(c)(1)
(or Rule 144(i)(2), if applicable), or (ii) the date on which the Holders shall have sold all of the Registrable Securities covered
by such Registration Statement, or if only the Warrant Shares remain unsold, the date on which all Warrants have expired (the “Registration
Period”). Notwithstanding anything to the contrary contained in this Agreement, the Company shall ensure that, when filed
and at all times while effective, each Registration Statement (including, without limitation, all amendments and supplements thereto)
and the prospectus (including, without limitation, all amendments and supplements thereto) used in connection with such Registration
Statement (1) shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated
therein, or necessary to make the statements therein (in the case of prospectuses, in the light of the circumstances in which they
were made) not misleading and (2) will disclose (whether directly or through incorporation by reference to other SEC filings to
the extent permitted) all material information regarding the Company and its securities required to be disclosed under the Securities
Act or the Exchange Act (as defined below). The Company shall use its best efforts to submit to the SEC, within one (1) Business
Day (but in any event no later than the second (2nd) Business Day), after the date that the Company learns that no review
of a particular Registration Statement will be made by the Staff or that the Staff has no further comments on a particular Registration
Statement (as the case may be), a request for acceleration of effectiveness of such Registration Statement to a time and date not
later than twenty-four (24) hours after the submission of such request. The Company shall respond in writing to comments made by
the SEC in respect of a Registration Statement as soon as practicable, but in no event later than fifteen (15) days after the receipt
of comments by or notice from the SEC that an amendment is required in order for a Registration Statement to be declared effective.

 

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(b) The
Company shall prepare and file with the SEC such amendments (including, without limitation, post-effective amendments) and supplements
to each Registration Statement and the prospectus used in connection with each such Registration Statement, which prospectus is
to be filed pursuant to Rule 424 promulgated under the Securities Act, as may be necessary to keep each such Registration Statement
effective at all times during the Registration Period for such Registration Statement, and, during such period, comply with the
provisions of the Securities Act with respect to the disposition of all Registrable Securities of the Company required to be covered
by such Registration Statement until such time as all of such Registrable Securities shall have been disposed of in accordance
with the intended methods of disposition by the seller or sellers thereof as set forth in such Registration Statement; provided,
however, that by 8:30 a.m. (New York time) on the Business Day immediately following each Effective Date, the Company shall
file with the SEC in accordance with Rule 424(b) under the Securities Act the final prospectus to be used in connection with sales
pursuant to the applicable Registration Statement (whether or not such a prospectus is technically required by such rule). In the
case of amendments and supplements to any Registration Statement which are required to be filed pursuant to this Agreement (including,
without limitation, pursuant to this Section 3(b)) by reason of the Company filing a report on Form 10-Q or Form 10-K or
any analogous report under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company
shall have incorporated such report by reference into such Registration Statement, if applicable, or shall file such amendments
or supplements with the SEC on the same day on which the Exchange Act report is filed which created the requirement for the Company
to amend or supplement such Registration Statement.

 

(c) The
Company shall (A) permit legal counsel for each Holder to review and comment upon (i) each Registration Statement at least five
(5) Business Days prior to its filing with the SEC and (ii) all amendments and supplements to each Registration Statement (including,
without limitation, the prospectus contained therein) (except for Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q,
Current Reports on Form 8-K, and any similar or successor reports) within a reasonable number of days prior to their filing with
the SEC, and (B) not file any Registration Statement or amendment or supplement thereto in a form to which any legal counsel for
any Holder reasonably objects. The Company shall not submit a request for acceleration of the effectiveness of a Registration Statement
or any amendment or supplement thereto without the prior approval of legal counsel to each Holder, which consent shall not be unreasonably
withheld. The Company shall promptly furnish to legal counsel for each Holder, without charge, (i) copies of any correspondence
from the SEC or the Staff to the Company or its representatives relating to each Registration Statement, provided that such correspondence
shall not contain any material, non-public information regarding the Company or any of its Subsidiaries (as defined in the Note
Amendment Agreement), (ii) after the same is prepared and filed with the SEC, one (1) copy of each Registration Statement
and any amendment(s) and supplement(s) thereto, including, without limitation, financial statements and schedules, all documents
incorporated therein by reference, if requested by a Holder, and all exhibits and (iii) upon the effectiveness of each Registration
Statement, one (1) copy of the prospectus included in such Registration Statement and all amendments and supplements thereto. The
Company shall reasonably cooperate with legal counsel for each Holder in performing the Company’s obligations pursuant to
this Section 3.

 

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(d) The
Company shall promptly furnish to each Holder whose Registrable Securities are included in any Registration Statement, without
charge, (i) after the same is prepared and filed with the SEC, at least one (1) copy of each Registration Statement and any amendment(s)
and supplement(s) thereto, including, without limitation, financial statements and schedules, all documents incorporated therein
by reference, if requested by a Holder, all exhibits and each preliminary prospectus, (ii) upon the effectiveness of each Registration
Statement, ten (10) copies of the prospectus included in such Registration Statement and all amendments and supplements thereto
(or such other number of copies as such Holder may reasonably request from time to time) and (iii) such other documents, including,
without limitation, copies of any preliminary or final prospectus, as such Holder may reasonably request from time to time in order
to facilitate the disposition of the Registrable Securities owned by such Holder.

 

(e) The
Company shall use its commercially reasonable best efforts to (i) register and qualify, unless an exemption from registration and
qualification applies, the resale by Holders of the Registrable Securities covered by a Registration Statement under such other
securities or “blue sky” laws of all applicable jurisdictions in the United States, (ii) prepare and file in those
jurisdictions, such amendments (including, without limitation, post-effective amendments) and supplements to such registrations
and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other
actions as may be necessary to maintain such registrations and qualifications in effect at all times during the Registration Period,
and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions;
provided, however, that the Company shall not be required in connection therewith or as a condition thereto to (x)
qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(e),
(y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent to service of process in any such
jurisdiction. The Company shall promptly notify legal counsel for each Holder and each Holder who holds Registrable Securities
of the receipt by the Company of any notification with respect to the suspension of the registration or qualification of any of
the Registrable Securities for sale under the securities or “blue sky” laws of any jurisdiction in the United States
or its receipt of actual notice of the initiation or threatening of any proceeding for such purpose.

 

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(f) The
Company shall notify legal counsel for each Holder and each Holder in writing of the happening of any event, as promptly as practicable
after becoming aware of such event, as a result of which the prospectus included in a Registration Statement, as then in effect,
includes an untrue statement of a material fact or omission to state a material fact required to be stated therein or necessary
to make the statements therein, in the light of the circumstances under which they were made, not misleading (provided that in
no event shall such notice contain any material, non-public information regarding the Company or any of its Subsidiaries), and
promptly prepare and file a supplement or amendment to such Registration Statement and such prospectus contained therein to correct
such untrue statement or omission and deliver ten (10) copies of such supplement or amendment to legal counsel for each Holder
and each Holder (or such other number of copies as legal counsel for each Holder or such Holder may reasonably request). The Company
shall also promptly notify legal counsel for each Holder and each Holder in writing (i) when a prospectus or any prospectus supplement
or post-effective amendment has been filed, when a Registration Statement or any post-effective amendment has become effective
(notification of such effectiveness shall be delivered to legal counsel for each Holder and each Holder by facsimile or e-mail
on the same day of such effectiveness and by overnight mail), and when the Company receives written notice from the SEC that a
Registration Statement or any post-effective amendment will be reviewed by the SEC, (ii) of any request by the SEC for amendments
or supplements to a Registration Statement or related prospectus or related information, (iii) of the Company’s reasonable
determination that a post-effective amendment to a Registration Statement would be appropriate; and (iv) of the receipt of any
request by the SEC or any other federal or state governmental authority for any additional information relating to the Registration
Statement or any amendment or supplement thereto or any related prospectus. The Company shall respond as promptly as practicable
to any comments received from the SEC with respect to each Registration Statement or any amendment thereto. Notwithstanding anything
to the contrary contained herein, any inability of any Holder to use the prospectus included in a Registration Statement as a result
of the circumstances described in this Section 3(f) will not exceed (x) forty-five (45) days in any single instance or as a result
of any single or series of related events or seventy-five (75) days in the aggregate in any 360 day period.  

 

(g) The
Company shall (i) use its commercially reasonable best efforts to prevent the issuance of any stop order or other suspension of
effectiveness of each Registration Statement or the use of any prospectus contained therein, or the suspension of the qualification,
or the loss of an exemption from qualification, of any of the Registrable Securities for sale in any jurisdiction and, if such
an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment and (ii)
notify legal counsel for each Holder and each Holder who holds Registrable Securities of the issuance of such order and the resolution
thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

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(h) If
any Holder may be required under applicable securities law to be described in any Registration Statement as an underwriter or any
Holder believes that it could reasonably be deemed an underwriter and such Holder consents to so being named an underwriter, at
the request of any Holder, the Company shall furnish to such Holder, on the date of the effectiveness of such Registration Statement
and thereafter from time to time on such dates as a Holder may reasonably request (i) a letter, dated such date, from the Company’s
independent certified public accountants in form and substance as is customarily given by independent certified public accountants
to underwriters in an underwritten public offering, addressed to the Holders, and (ii) an opinion, dated as of such date, of counsel
representing the Company for purposes of such Registration Statement, in form, scope and substance as is customarily given in an
underwritten public offering, addressed to the Holders.

 

(i) If
any Holder may be required under applicable securities law to be described in any Registration Statement as an underwriter or any
Holder believes that it could reasonably be deemed an underwriter and such Holder consents to so being named an underwriter, upon
the written request of such Holder, the Company shall make available for inspection by (i) such Holder, (ii) legal counsel for
such Holder and (iii) one (1) firm of accountants or other agents retained by such Holder (collectively, the “Inspectors”),
all pertinent financial and other records, and pertinent corporate documents and properties of the Company (collectively, the “Records”),
as shall be reasonably deemed necessary by each Inspector, and cause the Company’s officers, directors and employees to supply
all information which any Inspector may reasonably request; provided, however, that each Inspector shall agree in
writing to hold in strict confidence and not to make any disclosure (except to such Holder and its advisors) or use of any Record
or other information which the Company’s board of directors determines in good faith to be confidential, and of which determination
the Inspectors are so notified, unless (1) the disclosure of such Records is necessary to avoid or correct a misstatement or omission
in any Registration Statement or is otherwise required under the Securities Act, (2) the release of such Records is required by
applicable law or regulation or is ordered pursuant to a final, non-appealable subpoena or order from a court or government body
of competent jurisdiction, or (3) the information in such Records has been made generally available to the public other than by
disclosure in violation of this Agreement or any other Transaction Agreement. Such Holder agrees that it shall, upon learning that
disclosure of such Records is sought in or by a court or governmental body of competent jurisdiction or through other means, give
prompt notice to the Company and allow the Company, at its expense, to undertake appropriate action to prevent disclosure of, or
to obtain a protective order for, the Records deemed confidential. Nothing herein (or in any other confidentiality agreement between
the Company and such Holder, if any) shall be deemed to limit any Holder’s ability to sell Registrable Securities in a manner
which is otherwise consistent with applicable laws and regulations.

 

(j) The
Company shall hold in confidence and not make any disclosure of information concerning a Holder provided to the Company unless
(i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information
is necessary to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required to be disclosed
in such Registration Statement pursuant to the Securities Act, (iii) the release of such information is ordered pursuant to a subpoena
or other final, non-appealable order from a court or governmental body of competent jurisdiction, or (iv) such information has
been made generally available to the public other than by disclosure in violation of this Agreement or any other Transaction Agreement.
The Company agrees that it shall, upon learning that disclosure of such information concerning a Holder is sought in or by a court
or governmental body of competent jurisdiction or through other means, give prompt written notice to such Holder and allow such
Holder, at such Holder’s expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order
for, such information.

 

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(k) Without
limiting any obligation of the Company under the Note Amendment Agreement, the Company shall use its commercially reasonable best
efforts either to (i) cause all of the Registrable Securities covered by each Registration Statement to be listed on each securities
exchange on which securities of the same class or series issued by the Company are then listed, if any, if the listing of such
Registrable Securities is then permitted under the rules of such exchange, (ii) secure designation and quotation of all of the
Registrable Securities covered by each Registration Statement on an Eligible Market (as defined in the Note Amendment Agreement),
or (iii) if, despite the Company’s commercially reasonable best efforts to satisfy the preceding clauses (i) or (ii) the
Company is unsuccessful in satisfying the preceding clauses (i) or (ii), without limiting the generality of the foregoing, to use
its commercially reasonable best efforts to arrange for at least two market makers to register with the Financial Industry Regulatory
Authority (“FINRA”) as such with respect to such Registrable Securities. In addition, the Company shall cooperate
with each Holder and any broker or dealer through which any such Holder proposes to sell its Registrable Securities in effecting
a filing with FINRA pursuant to FINRA Rule 5110 as requested by such Holder. The Company shall pay all fees and expenses in connection
with satisfying its obligations under this Section 3(k)

 

(l) The
Company shall cooperate with the Holders who hold Registrable Securities being offered and, to the extent applicable, facilitate
the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities
to be offered pursuant to a Registration Statement and enable such certificates to be in such denominations or amounts (as the
case may be) as the Holders may reasonably request from time to time and registered in such names as the Holders may request.

 

(m) If
requested by a Holder, the Company shall as soon as practicable after receipt of notice from such Holder and (i) incorporate in
a prospectus supplement or post-effective amendment such information as a Holder reasonably requests to be included therein relating
to the sale and distribution of Registrable Securities, including, without limitation, information with respect to the number of
Registrable Securities being offered or sold, the purchase price being paid therefor and any other terms of the offering of the
Registrable Securities to be sold in such offering; (ii) make all required filings of such prospectus supplement or post-effective
amendment after being notified of the matters to be incorporated in such prospectus supplement or post-effective amendment; and
(iii) supplement or make amendments to any Registration Statement or prospectus contained therein if reasonably requested by a
Holder holding any Registrable Securities.

 

(n) The
Company shall use its commercially reasonable best efforts to cause the Registrable Securities covered by a Registration Statement
to be registered with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition
of such Registrable Securities.

 

(o) The
Company shall make generally available to its security holders as soon as practical, but not later than ninety (90) days after
the close of the period covered thereby, an earnings statement (in form complying with, and in the manner provided by, the provisions
of Rule 158 under the Securities Act) covering a twelve-month period beginning not later than the first (1st) day of
the Company’s fiscal quarter next following the applicable Effective Date of each Registration Statement. For the avoidance
of doubt, filing of documents required by this Section 3(o) via the SEC’s Electronic Data Gathering, Analysis
and Retrieval system (EDGAR) shall satisfy all delivery requirements of this Section 3(o).

 

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(p) The
Company shall otherwise use its commercially reasonable best efforts to comply with all applicable rules and regulations of the
SEC in connection with any registration hereunder.

 

(q) Within
one (1) Business Day after a Registration Statement, which covers Registrable Securities, is declared effective by the SEC, the
Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities
(with copies to the Holders whose Registrable Securities are included in such Registration Statement) confirmation that such Registration
Statement has been declared effective by the SEC substantially in the form attached hereto as Exhibit A.

 

(r) The
Company shall use its commercially reasonable best efforts to maintain eligibility for use of Form S-3 (or any successor form thereto).

 

(s) The
Company shall take all other commercially reasonable actions necessary to expedite and facilitate disposition by each Holder of
its Registrable Securities pursuant to each Registration Statement.

 

(t) Neither
the Company nor any of its subsidiaries has entered, as of the date hereof, nor shall the Company or any of its subsidiaries, on
or after the date of this Agreement, enter into any agreement with respect to its securities, that would have the effect of impairing
the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof.

 

4. Obligations
of the Holders.

 

(a) At
least five (5) Business Days prior to the first anticipated filing date of each Registration Statement, the Company shall notify
each Holder in writing of the information the Company requires from each such Holder with respect to such Registration Statement.
It shall be a condition precedent to the obligations of the Company to complete the registration pursuant to this Agreement with
respect to the Registrable Securities of a particular Holder that such Holder shall furnish to the Company such information regarding
itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by it,
as shall be reasonably required to effect and maintain the effectiveness of the registration of such Registrable Securities and
shall execute such documents in connection with such registration as the Company may reasonably request.

 

(b) Each
Holder, by such Holder’s acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested
by the Company in connection with the preparation and filing of each Registration Statement hereunder, unless such Holder has notified
the Company in writing of such Holder’s election to exclude all of such Holder’s Registrable Securities from such Registration
Statement. Each Holder agrees to furnish to the Company a completed questionnaire in the form attached to this Agreement as Exhibit
D (a “Selling Stockholder Questionnaire”) on a date that is the later of (i) not less than two (2) Business
Days prior to the Filing Date or (ii) by the end of the fourth (4th) Business Day following the date on which such Holder
receives draft materials in accordance with this Section.

 

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(c) Each
Holder agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section
3(g) or the first sentence of Section 3(f), such Holder will immediately discontinue disposition of Registrable Securities
pursuant to any Registration Statement(s) covering such Registrable Securities until such Holder’s receipt of the copies
of the supplemented or amended prospectus contemplated by Section 3(g) or the first sentence of Section 3(f) or receipt
of notice that no supplement or amendment is required. Notwithstanding anything to the contrary in this Section 4(c), the
Company shall cause its transfer agent to deliver unlegended shares of Common Stock to a transferee of a Holder in accordance with
the terms of the Note Amendment Agreement in connection with any sale of Registrable Securities with respect to which such Holder
has entered into a contract for sale prior to the Holder’s receipt of a notice from the Company of the happening of any event
of the kind described in Section 3(g) or the first sentence of Section 3(f) and for which such Holder has not yet
settled.

 

(d) Each Holder
covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable to it
in connection with sales of Registrable Securities pursuant to a Registration Statement.

 

5. Expenses
of Registration.

 

All reasonable expenses,
other than underwriting discounts and commissions, incurred in connection with registrations, filings or qualifications pursuant
to Section 2 and Section 3, including, without limitation, all registration, listing and qualifications fees, printers
and accounting fees, FINRA filing fees (if any) and fees and disbursements of counsel for the Company and each Holder shall be
paid by the Company.

 

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		6.	Indemnification.

 

(a) In
the event any Registrable Securities are included in any Registration Statement under this Agreement, to the fullest extent permitted
by law, the Company will, and hereby does, indemnify, hold harmless and defend each Holder and each of its affiliates and each
of their respective directors, officers, shareholders, members, partners, employees, agents, advisors, representatives (and any
other Persons with a functionally equivalent role of a Person holding such titles notwithstanding the lack of such title or any
other title) and each Person, if any, who controls such Holder within the meaning of the Securities Act or the Exchange Act and
each of the directors, officers, shareholders, members, partners, employees, agents, advisors, representatives (and any other Persons
with a functionally equivalent role of a Person holding such titles notwithstanding the lack of such title or any other title)
of such controlling Persons (each, an “Indemnified Person”), against any losses, obligations, claims, damages,
liabilities, contingencies, judgments, fines, penalties, charges, costs (including, without limitation, court costs, reasonable
attorneys’ fees and costs of defense and investigation), amounts paid in settlement or expenses, joint or several, (collectively,
“Claims”) incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation
or appeal taken from the foregoing by or before any court or governmental, administrative or other regulatory agency, body or the
SEC, whether pending or threatened, whether or not an indemnified party is or may be a party thereto (“Indemnified Damages”),
to which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced or threatened, in
respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in a Registration
Statement or any post-effective amendment thereto or in any filing made in connection with the qualification of the offering under
the securities or other “blue sky” laws of any jurisdiction in which Registrable Securities are offered (“Blue
Sky Filing”), or the omission or alleged omission to state a material fact required to be stated therein or necessary
to make the statements therein not misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained
in any preliminary prospectus if used prior to the effective date of such Registration Statement, or contained in the final prospectus
(as amended or supplemented, if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or
alleged omission to state therein any material fact necessary to make the statements made therein, in light of the circumstances
under which the statements therein were made, not misleading or (iii) any violation or alleged violation by the Company of the
Securities Act, the Exchange Act, any other law, including, without limitation, any state securities law, or any rule or regulation
thereunder relating to the offer or sale of the Registrable Securities pursuant to a Registration Statement or this Agreement (the
matters in the foregoing clauses (i) through (iii) being, collectively, “Violations”). Subject to Section
6(c), the Company shall reimburse the Indemnified Persons, promptly as such expenses are incurred and are due and payable,
for any legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim.
Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a):
(x) shall not apply to a Claim by an Indemnified Person arising out of or based upon a Violation which occurs in reliance upon
and in conformity with information furnished in writing to the Company by such Indemnified Person for such Indemnified Person expressly
for use in connection with the preparation of such Registration Statement or any such amendment thereof or supplement thereto,
(y) shall not be available to a particular Holder to the extent such Claim is based on a failure of such Holder to deliver or to
cause to be delivered the prospectus made available by the Company (to the extent applicable), including, without limitation, a
corrected prospectus, if such prospectus or corrected prospectus was timely made available by the Company pursuant to Section
3(d) and then only if, and to the extent that, following the receipt of the corrected prospectus no grounds for such Claim
would have existed and (z) shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the
prior written consent of the Company, which consent shall not be unreasonably withheld or delayed. Such indemnity shall remain
in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer
of any of the Registrable Securities by any of the Holders pursuant to Section 9.

 

(b) In
connection with any Registration Statement in which a Holder is participating, such Holder agrees to severally and not jointly
indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company,
each of its directors, each of its officers who signs the Registration Statement and each Person, if any, who controls the Company
within the meaning of the Securities Act or the Exchange Act (each, an “Indemnified Party”), against any Claim
or Indemnified Damages to which any of them may become subject, under the Securities Act, the Exchange Act or otherwise, insofar
as such Claim or Indemnified Damages arise out of or are based upon any Violation, in each case, to the extent, and only to the
extent, that such Violation occurs in reliance upon and in conformity with written information furnished to the Company by such
Holder expressly for use in connection with such Registration Statement; and, subject to Section 6(c) and the below provisos
in this Section 6(b), such Holder will reimburse an Indemnified Party any legal or other expenses reasonably incurred by
such Indemnified Party in connection with investigating or defending any such Claim; provided, however, that the
indemnity agreement contained in this Section 6(b) and the agreement with respect to contribution contained in Section
7 shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent
of such Holder, which consent shall not be unreasonably withheld or delayed, provided further that such Holder shall be liable
under this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not exceed the net proceeds to such
Holder as a result of the applicable sale of Registrable Securities pursuant to such Registration Statement and no Holder shall
be liable for any indirect, consequential, special, exemplary or punitive damages. Such indemnity shall remain in full force and
effect regardless of any investigation made by or on behalf of such Indemnified Party and shall survive the transfer of any of
the Registrable Securities by any of the Holders pursuant to Section 9.

 

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(c) Promptly
after receipt by an Indemnified Person or Indemnified Party (as the case may be) under this Section 6 of notice of the commencement
of any action or proceeding (including, without limitation, any governmental action or proceeding) involving a Claim, such Indemnified
Person or Indemnified Party (as the case may be) shall, if a Claim in respect thereof is to be made against any indemnifying party
under this Section 6, deliver to the indemnifying party a written notice of the commencement thereof, and the indemnifying
party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying
party similarly noticed, to assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party
and the Indemnified Person or the Indemnified Party (as the case may be); provided, however, that an Indemnified
Person or Indemnified Party (as the case may be) shall have the right to retain its own counsel with the fees and expenses of such
counsel to be paid by the indemnifying party if: (i) the indemnifying party has agreed in writing to pay such fees and expenses;
(ii) the indemnifying party shall have failed promptly to assume the defense of such Claim and to employ counsel reasonably satisfactory
to such Indemnified Person or Indemnified Party (as the case may be) in any such Claim; or (iii) the named parties to any such
Claim (including, without limitation, any impleaded parties) include both such Indemnified Person or Indemnified Party (as the
case may be) and the indemnifying party, and such Indemnified Person or such Indemnified Party (as the case may be) shall have
been advised by counsel that a conflict of interest is likely to exist if the same counsel were to represent such Indemnified Person
or such Indemnified Party and the indemnifying party (in which case, if such Indemnified Person or such Indemnified Party (as the
case may be) notifies the indemnifying party in writing that it elects to employ separate counsel at the expense of the indemnifying
party, then the indemnifying party shall not have the right to assume the defense thereof and such counsel shall be at the expense
of the Indemnifying Party, provided further, that in the case of clause (iii) above the indemnifying party shall not be
responsible for the reasonable fees and expenses of more than one (1) separate legal counsel for such Indemnified Person or Indemnified
Party (as the case may be). The Indemnified Party or Indemnified Person (as the case may be) shall reasonably cooperate with the
indemnifying party in connection with any negotiation or defense of any such action or Claim by the indemnifying party and shall
furnish to the indemnifying party all information reasonably available to the Indemnified Party or Indemnified Person (as the case
may be) which relates to such action or Claim. The indemnifying party shall keep the Indemnified Party or Indemnified Person (as
the case may be) reasonably apprised at all times as to the status of the defense or any settlement negotiations with respect thereto.
No indemnifying party shall be liable for any settlement of any action, claim or proceeding effected without its prior written
consent; provided, however, that the indemnifying party shall not unreasonably withhold, delay or condition its consent.
No indemnifying party shall, without the prior written consent of the Indemnified Party or Indemnified Person (as the case may
be), consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person (as the case may be) of a
release from all liability in respect to such Claim or litigation, and such settlement shall not include any admission as to fault
on the part of the Indemnified Party. Following indemnification as provided for hereunder, the indemnifying party shall be subrogated
to all rights of the Indemnified Party or Indemnified Person (as the case may be) with respect to all third parties, firms or corporations
relating to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying party
within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the
Indemnified Person or Indemnified Party (as the case may be) under this Section 6, except to the extent that the indemnifying
party is materially and adversely prejudiced in its ability to defend such action.

 

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(d) No
Person involved in the sale of Registrable Securities who is guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) in connection with such sale shall be entitled to indemnification from any Person involved in such
sale of Registrable Securities who is not guilty of fraudulent misrepresentation.

 

(e) The
indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of
the investigation or defense, as and when bills are received or Indemnified Damages are incurred.

 

(f) The
indemnity and contribution agreements contained herein shall be in addition to (i) any cause of action or similar right of the
Indemnified Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party
may be subject to pursuant to the law.

 

		7.	Contribution.

 

To the extent any indemnification
by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect
to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided,
however, that: (i) no contribution shall be made under circumstances where the maker would not have been liable for indemnification
under the fault standards set forth in Section 6, (ii) no Person involved in the sale of Registrable Securities which Person
is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) in connection with such sale
shall be entitled to contribution from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent
misrepresentation; and (iii) contribution by any seller of Registrable Securities shall be limited in amount to the amount of net
proceeds received by such seller from the applicable sale of such Registrable Securities pursuant to such Registration Statement
and no Holder shall be liable for any indirect, consequential, special, exemplary or punitive damages. Notwithstanding the provisions
of this Section 7, no Holder shall be required to contribute, in the aggregate, any amount in excess of the amount by which
the net proceeds actually received by such Holder from the applicable sale of the Registrable Securities subject to the Claim exceeds
the amount of any damages that such Holder has otherwise been required to pay, or would otherwise be required to pay under Section
6(b), by reason of such untrue or alleged untrue statement or omission or alleged omission.

 

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		8.	Reports Under the Exchange Act.

 

With a view to making
available to the Holders the benefits of Rule 144, the Company agrees to use its best efforts to:

 

(a) make
and keep public information available, as those terms are understood and defined in Rule 144;

 

(b) file
with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange
Act so long as the Company remains subject to such requirements (it being understood and agreed that nothing herein shall limit
any obligations of the Company under the Note Amendment Agreement) and the filing of such reports and other documents is required
for the applicable provisions of Rule 144; and

 

(c) furnish
to each Holder so long as such Holder owns Registrable Securities, promptly upon request, (i) a written statement by the Company,
if true, that it has complied with the reporting, submission and posting requirements of Rule 144 and the Exchange Act, (ii) a
copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company
with the SEC if such reports are not publicly available via EDGAR, and (iii) such other information as may be reasonably requested
to permit the Holders to sell such securities pursuant to Rule 144 without registration.

 

		9.	Assignment of Registration Rights.

 

All or any portion
of the rights under this Agreement shall be automatically assignable by each Holder to any transferee or assignee (as the case
may be) of all or any portion of such Holder’s Registrable Securities or Warrants if: (i) such Holder agrees in writing with
such transferee or assignee (as the case may be) to assign all or any portion of such rights, and a copy of such agreement is furnished
to the Company within a reasonable time after such transfer or assignment (as the case may be); (ii) the Company is, within a reasonable
time after such transfer or assignment (as the case may be), furnished with written notice of (a) the name and address of such
transferee or assignee (as the case may be), and (b) the securities with respect to which such registration rights are being transferred
or assigned (as the case may be); (iii) immediately following such transfer or assignment (as the case may be) the further disposition
of such securities by such transferee or assignee (as the case may be) is restricted under the Securities Act or applicable state
securities laws if so required; (iv) at or before the time the Company receives the written notice contemplated by clause (ii)
of this sentence such transferee or assignee (as the case may be) agrees in writing with the Company to be bound by all of the
provisions contained herein; (v) such transfer or assignment (as the case may be) shall have been made in accordance with the applicable
requirements of the Note Amendment Agreement and the Warrants (as the case may be); and (vi) such transfer or assignment (as the
case may be) shall have been conducted in accordance with all applicable federal and state securities laws.

 

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		10.	Amendment of Registration Rights.

 

Provisions of this
Agreement may be amended only with the written consent of the Company and the Required Holders, provided that no such shall be
effective to the extent that it (1) applies to less than all of the holders of the holders of Registrable Securities, (2) imposes
any obligation or liability on any Holder without such Holder’s prior written consent (which may be granted or withheld in
such Holder’s sole discretion) or (3) applies retroactively. Any amendment effected in accordance with this Section 10
shall be binding upon each Holder and the Company. No waiver shall be effective unless it is in writing and signed by an authorized
representative of the waiving party. No consideration shall be offered or paid to any Person to amend or consent to a waiver or
modification of any provision of this Agreement unless the same consideration also is offered to all of the parties to this Agreement.

 

		11.	Miscellaneous.

 

(a) Solely
for purposes of this Agreement, a Person is deemed to be a holder of Registrable Securities whenever such Person owns, or is deemed
to own, of record such Registrable Securities. If the Company receives conflicting instructions, notices or elections from two
or more Persons with respect to the same Registrable Securities, the Company shall act upon the basis of instructions, notice or
election received from such record owner of such Registrable Securities.

 

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(b) Any
notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be
in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent
by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party); (iii) with respect to Section 3(c), by electronic mail (provided confirmation of transmission is electronically
generated and kept on file by the sending party); or (iv) one (1) Business Day after deposit with a nationally recognized overnight
delivery service with next day delivery specified, in each case, properly addressed to the party to receive the same. The addresses
and facsimile numbers for such communications shall be:

 

If to the Company:

 

Pacific Ethanol, Inc.

400 Capitol Mall

Suite 2060

Sacramento, CA 95814

Telephone: (916) 403-2130

Facsimile: (916) 403-3936

Attention: General Counsel

 

With a copy (for informational purposes
only) to:

 

Troutman Sanders LLP

5 Park Plaza, 14th Floor

Irvine, CA 92614

Telephone: (949) 622-2710

Facsimile: (949) 622-2739

Attention: Larry A. Cerutti, Esq.

 

If to the Transfer Agent:

 

American Stock Transfer & Trust Company

6201 15th Avenue, 2nd Floor

Brooklyn, NY 11219

Telephone: (718) 921-8360

Facsimile: (718) 921-8310

Attention: William Torre

 

If to a Holder, to its address and facsimile
number set forth on the signature page to the Note Amendment Agreement, or to such other address and/or facsimile number and/or
to the attention of such other Person as the recipient party has specified by written notice given to each other party five (5)
days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent,
waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine or electronic
mail transmission containing the time, date, recipient facsimile number or electronic mail address and an image of the first page
of such transmission or (C) provided by a courier or overnight courier service shall be rebuttable evidence of personal service,
receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or
(iii) above, respectively.

 

(c) Failure
of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or
remedy, shall not operate as a waiver thereof. The Company and each Holder acknowledge and agree that irreparable damage would
occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were
otherwise breached. It is accordingly agreed that each party hereto shall be entitled to an injunction or injunctions to prevent
or cure breaches of the provisions of this Agreement by any other party hereto and to enforce specifically the terms and provisions
hereof (without the necessity of showing economic loss and without any bond or other security being required), this being in addition
to any other remedy to which any party may be entitled by law or equity.

 

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(d) All
questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal
laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the
State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting
in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action
or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding
is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy
thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction,
such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that
jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction. EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER
OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(e) This
Agreement, the other Transaction Agreements, the schedules and exhibits attached hereto and thereto and the instruments referenced
herein and therein constitute the entire agreement among the parties hereto and thereto solely with respect to the subject matter
hereof and thereof. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to
herein and therein. This Agreement, the other Transaction Agreements, the schedules and exhibits attached hereto and thereto and
the instruments referenced herein and therein supersede all prior agreements and understandings among the parties hereto solely
with respect to the subject matter hereof and thereof; provided, however, that nothing contained in this Agreement
or any other Transaction Agreement shall (or shall be deemed to) (i) have any effect on any agreements any Holder has entered into
with the Company or any of its Subsidiaries prior to the date hereof with respect to any prior investment made by such Holder in
the Company, (ii) waive, alter, modify or amend in any respect any obligations of the Company or any of its Subsidiaries or any
rights of or benefits to any Holder or any other Person in any agreement entered into prior to the date hereof between or among
the Company and/or any of its Subsidiaries and any Holder and all such agreements shall continue in full force and effect or (iii)
limit any obligations of the Company under any of the other Transaction Agreements.

 

(f) Subject
to compliance with Section 9 (if applicable), this Agreement shall inure to the benefit of and be binding upon the permitted
successors and assigns of each of the parties hereto provided that this Agreement is not assignable by the Company without the
prior written consent of each Holder. This Agreement is not for the benefit of, nor may any provision hereof be enforced by, any
Person, other than the parties hereto, their respective permitted successors and assigns and the Persons referred to in Sections
6 and 7 hereof.

 

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(g) The
headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. Unless
the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine, feminine, neuter, singular
and plural forms thereof. The terms “including,” “includes,” “include” and words of like import
shall be construed broadly as if followed by the words “without limitation.” The terms “herein,” “hereunder,”
“hereof” and words of like import refer to this entire Agreement instead of just the provision in which they are found.

 

(h) This
Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and
shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that any
signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed
signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such
signature is executed) with the same force and effect as if such signature page were an original thereof.

 

(i) Each
party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents as any other party may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

(j) The
language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules
of strict construction will be applied against any party.

 

(k) All
consents and other determinations required to be made by the Holders pursuant to this Agreement shall be made, unless otherwise
specified in this Agreement, by the Holders.

 

(l) The
obligations of each Holder under this Agreement and the other Transaction Agreements are several and not joint with the obligations
of any other Holder, and no Holder shall be responsible in any way for the performance of the obligations of any other Holder under
this Agreement or any other Transaction Agreement. Nothing contained herein or in any other Transaction Agreement, and no action
taken by any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders as, and the Company acknowledges that
the Holders do not so constitute, a partnership, an association, a joint venture or any other kind of group or entity, or create
a presumption that the Holders are in any way acting in concert or as a group or entity with respect to such obligations or the
transactions contemplated by the Transaction Agreements or any matters, and the Company acknowledges that the Holders are not acting
in concert or as a group, and the Company shall not assert any such claim, with respect to such obligations or the transactions
contemplated by this Agreement or any of the other the Transaction Agreements. Each Holder shall be entitled to independently protect
and enforce its rights, including, without limitation, the rights arising out of this Agreement or out of any other Transaction
Agreements, and it shall not be necessary for any other Holder to be joined as an additional party in any proceeding for such purpose.
The use of a single agreement with respect to the obligations of the Company contained herein was solely in the control of the
Company, not the action or decision of any Holder, and was done solely for the convenience of the Company and not because it was
required or requested to do so by any Holder. It is expressly understood and agreed that each provision contained in this Agreement
and in each other Transaction Agreement is between the Company and a Holder, solely, and not between the Company and the Holders
collectively and not between and among Holders.

 

[signature pages follow]

 

    21

     

    

 

IN WITNESS WHEREOF,
the Company and the Holders have caused their respective signature page to this Registration Rights Agreement to be duly executed
as of the date first written above.

 

	 	
        COMPANY:

         

	 	Pacific Ethanol, Inc.
	 	 	 
	 	By:	/s/ Neil M. Koehler
	 	 	Neil M. Koehler, President and CEO

 

[SIGNATURE PAGES OF HOLDERS FOLLOW]

 

     

     

    

 

 

[SIGNATURE
PAGE OF HOLDERS – REGISTRATION RIGHTS AGREEMENT]

 

	 	CWD Summit, LLC,
	 	acting for and on behalf of 
	 	Candlewood Renewable Energy Series I
	 	 	 
	 	By:	/s/ David Koenig
	 	 	Name: David Koenig
	 	 	Title: Authorized Signatory
	 	 	 
	 	Address for Notices:
	 	555 Theodore Fremd Ave.
	 	Suite C303
	 	Rye, NY 10580

 

     

     

    

 

	 	CKP South LLC
	 	 	 
	 	By:	/s/ [illegible]
	 	 	Name:   
	 	 	Title:  
	 	 	 
	 	Address for Notices:
	 	400 South Ave.
	 	New Canaan, CT 06840

 

     

     

    

  

	 	Corrum Capital Alternative Income Fund LP
	 	 	 
	 	By:	/s/ [illegible]
	 	 	Name:
	 	 	Title:
	 	 	 
	 	Address for Notices:
	 	 
	 	 
	 	 

 

     

     

    

  

	 	CIF-Income Partners (A), LLC
	 	 
	 	By: BlackRock Financial Management, Inc.
	 	Its investment manager
	 	 	 
	 	By:	/s/ Stephen Kavalich
	 	 	Name: Stephen Kavalich
	 	 	Title: Director
	 	 	 
	 	Address for Notices:
	 	40 E. 52nd St.
	 	New York, NY 10022

 

     

     

    

  

	 	Orange 2015 DisloCredit Fund, L.P. 
	 	 
	 	By: BlackRock Financial Management, Inc.
	 	Its investment manager
	 	 	 
	 	By:	 /s/ Stephen Kavalich
	 	 	Name: Stephen Kavalich
	 	 	Title: Director
	 	 	 
	 	Address for Notices:
	 	40 E. 52nd St.
	 	New York, NY 10022

 

     

     

    

  

	 	Sainsbury’s Credit Opportunities Fund, Ltd. 
	 	 
	 	By: BlackRock Financial Management, Inc.
	 	Its investment manager
	 	 	 
	 	By:	/s/ Stephen Kavalich
	 	 	Name: Stephen Kavalich
	 	 	Title: Director
	 	 	 
	 	Address for Notices:
	 	40 E. 52nd St.
	 	New York, NY 10022

 

     

     

    

  

	 	Co-Investment Income Fund, L.P. -
	 	US Taxable Series
	 	 
	 	By: BlackRock Financial Management, Inc.
	 	Its investment manager
	 	 	 
	 	By:	 /s/ Stephen Kavalich
	 	 	Name: Stephen Kavalich
	 	 	Title: Director
	 	 	 
	 	Address for Notices:
	 	40 E. 52nd St.
	 	New York, NY 10022

 

     

     

    

  

	 	Co-Investment Income Fund, L.P. -
	 	US Tax-Exempt Series
	 	 
	 	By: BlackRock Financial Management, Inc.
	 	Its investment manager
	 	 	 
	 	By:	 /s/ Stephen Kavalich
	 	 	Name: Stephen Kavalich
	 	 	Title: Director
	 	 	 
	 	Address for Notices:
	 	40 E. 52nd St.
	 	New York, NY 10022

 

     

     

    

 

EXHIBIT A

 

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

______________________

______________________

______________________

Attention: _____________

 

Re:Pacific Ethanol, Inc.

 

Ladies and Gentlemen:

 

We are counsel to Pacific
Ethanol, Inc., a Delaware corporation (the “Company”), and have represented the Company in connection with that
certain Senior Secured Note Amendment Agreement (the “Note Amendment Agreement”) entered into by and among the
Company and the Holders named therein (collectively, the “Holders”) pursuant to which the Company issued to
the Holders certain shares (“Shares”) of the Company’s common stock, $0.001 par value per share (the ”Common
Stock”) and warrants (“Warrants”) exercisable for shares of Common Stock, and may issue additional
shares of Common Stock (“Additional Common Shares”). Pursuant to the Note Amendment Agreement, the Company also
has entered into a Registration Rights Agreement with the Holders (the “Registration Rights Agreement”) pursuant
to which the Company agreed, among other things, to register the Registrable Securities (as defined in the Registration Rights
Agreement), including the shares of Common Stock issuable pursuant to the terms of the Warrants (“Warrant Shares”),
under the Securities Act of 1933, as amended (the “1933 Act”). In connection with the Company’s obligations
under the Registration Rights Agreement, on ____________ ___, 20__, the Company filed a Registration Statement on Form [S-1] (File
No. 333-_____________) (the “Registration Statement”) with the Securities and Exchange Commission (the “SEC”)
relating to the Registrable Securities which names each of the Holders as a selling security holder thereunder.

 

The names of the Selling
Stockholders to whom this opinion relates and the numbers of Shares that each Selling Stockholder may resell under the Registration
Statement are set forth under the column “Shares to be Offered” in the section of the Registration Statement and Prospectus
entitled “Selling Stockholders” in the column “Shares to be Offered Pursuant to the Registration Statement.”
For purposes of this opinion, we have reviewed a copy of the Registration Statement and Prospectus, and such other and further
information and documents as we have deemed advisable.

 

In connection with the
foregoing, we have examined copies of resolutions of the Board of Directors of the Company, the securities described in the Registration
Statement and such other agreements, instruments and documents as we have deemed relevant or necessary as a basis for the opinions
hereinafter set forth. In making such examination, we have assumed the genuineness of all signatures on all original documents
and the conformity to original documents of all copies submitted to us as conformed, photostat or other copies. As to matters of
fact material to such opinions, we have, when relevant facts were not independently established, relied upon statements and certificates
furnished to us.

 

     

     

    

  

EXHIBIT A

 

Based upon and subject
to the foregoing, we render the following opinions:

 

1. The
Registration Statement has become effective under the Act, and to the best of our knowledge, no stop order suspending the effectiveness
of the Registration Statement has been issued, and no proceedings for that purpose have been instituted or threatened.

 

2. The
Shares are, and upon due issuance of the Additional Common Shares in accordance with the terms of the Note Amendment Agreement,
the Additional Common Shares will be, and upon due exercise of the Warrants in accordance with their terms including receipt of
the consideration therefor, the Warrant Shares will be, duly and validly issued, fully paid and non-assessable, and not subject
to the preemptive rights of any stockholder of the Company.

 

As with any selling stockholders’
registration statement, the Shares, any Additional Common Shares and the Warrant Shares are restricted securities, but may be sold
pursuant to the Registration Statement. The normal restrictive legend appearing thereto may be removed following the sale of such
securities or the placement in street name of the selling broker in contemplation of imminent sale with the understanding that,
if the sale is not consummated, the certificates will be returned to you for relegending.

 

Notwithstanding the foregoing,
we may in the future advise you as to certain institutional type investors or foreign investors from whose shares the restrictive
legend may be removed prior to placement into street name based on their status.

 

Our opinion shall not
apply to resales occurring during any period that we or the Company may advise you in writing that the Registration Statement is
not current. In such event, no resales of Shares, Additional Common Shares or Warrant Shares by Selling Stockholders shall be effected
pursuant to our opinion until we confirm that our opinion may again be relied upon to effect resales by Selling Stockholders.

 

This opinion is rendered
to American Stock Transfer & Trust Company and is not to be relied upon by any other person. We undertake no responsibility
to update this information to reflect facts occurring after the date hereof.

 

	 	Very truly yours,
	 	 
	 	[ISSUER’S COUNSEL]
	 	 	 
	 	By: 	                 

 

     

     

    

 

EXHIBIT B

 

SELLING SECURITY HOLDERS

 

This prospectus covers
the sale by the selling security holders of up to an aggregate of [________] shares of common stock, including an aggregate of
[________] shares of our common stock underlying warrants. We are registering the shares of common stock in order to permit the
selling security holders to offer the shares for resale from time to time. The selling security holders have not had any material
relationship with us within the past three years except as disclosed under the heading “Our Relationships with the Selling
Security Holders” below.

 

The table below lists
the selling security holders and other information regarding the beneficial ownership of the shares of common stock held by each
of the selling security holders. The second column lists the number of shares of common stock beneficially owned by the selling
security holders, based on their respective ownership of shares of common stock and warrants, as of ________ __, 20__, assuming
exercise of the warrants held by each selling security holder on that date and does not take into account of any of the limitations
on exercise and issuance of common stock contained in the warrants. The number of shares of common stock issuable upon exercise
of the warrants held by each selling security holder on ________ __, 20__ is the maximum number of shares of common stock issuable
upon exercise of the warrants on __________ __, 20__.

 

The third column lists
the shares of common stock being offered by this prospectus by the selling security holders and does not take into account any
limitations on issuance of common stock upon exercise of the warrants contained in the warrants.

 

The fourth column assumes
the sale of all of the shares offered by the selling security holders under this prospectus and does not take into account any
limitations on issuance of common stock upon exercise of the warrants contained in the warrants.

 

The selling security
holders may sell all, some or none of their shares in this offering. See “Plan of Distribution.”

 

     

     

    

 

EXHIBIT C

 

PLAN OF DISTRIBUTION

 

We are registering
the shares of common stock issued to the selling security holders and the shares of common stock issuable upon exercise of the
warrants to permit the resale of these shares of common stock by selling security holders from time to time after the date of this
prospectus. We will not receive any of the proceeds from the sale by the selling security holders of the shares of common stock.
We will bear all fees and expenses incident to our obligation to register the shares of common stock.

 

The selling security
holders may sell all or a portion of the shares of common stock held by them and offered hereby from time to time directly or through
one or more underwriters, broker-dealers or agents. If the shares of common stock are sold through underwriters or broker-dealers,
the selling security holders will be responsible for underwriting discounts or commissions or agent’s commissions. The shares
of common stock may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at
varying prices determined at the time of sale or at negotiated prices. These sales may be effected in transactions, which may involve
crosses or block transactions, pursuant to one or more of the following methods:

 

		●	on any national securities exchange or quotation service on which the securities may be listed
or quoted at the time of sale;

 

		●	in the over-the-counter market;

 

		●	in transactions otherwise than on these exchanges or systems or in the over-the-counter market;

 

		●	through the writing or settlement of options, whether such options are listed on an options exchange
or otherwise;

 

		●	ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

 

		●	block trades in which the broker-dealer will attempt to sell the shares as agent but may position
and resell a portion of the block as principal to facilitate the transaction;

 

		●	purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

 

		●	an exchange distribution in accordance with the rules of the applicable exchange;

 

		●	privately negotiated transactions;

 

		●	short sales made after the date the Registration Statement is declared effective by the SEC;

 

		●	broker-dealers may agree with the selling security holders to sell a specified number of such shares
at a stipulated price per share;

 

		●	a combination of any such methods of sale; and

 

		●	any other method permitted pursuant to applicable law.

 

     

     

    

   

The selling security
holders may also sell shares of common stock under Rule 144 promulgated under the Securities Act of 1933, as amended, if available,
rather than under this prospectus. In addition, the selling security holders may transfer the shares of common stock by other means
not described in this prospectus. If the selling security holders effect such transactions by selling shares of common stock to
or through underwriters, broker-dealers or agents, such underwriters, broker-dealers or agents may receive commissions in the form
of discounts, concessions or commissions from the selling security holders or commissions from purchasers of the shares of common
stock for whom they may act as agent or to whom they may sell as principal (which discounts, concessions or commissions as to particular
underwriters, broker-dealers or agents may be in excess of those customary in the types of transactions involved). In connection
with sales of the shares of common stock or otherwise, the selling security holders may enter into hedging transactions with broker-dealers,
which may in turn engage in short sales of the shares of common stock in the course of hedging in positions they assume. The selling
security holders may also sell shares of common stock short and deliver shares of common stock covered by this prospectus to close
out short positions and to return borrowed shares in connection with such short sales. The selling security holders may also loan
or pledge shares of common stock to broker-dealers that in turn may sell such shares.

 

The selling security
holders may pledge or grant a security interest in some or all of the shares of common stock owned by them and, if they default
in the performance of their secured obligations, the pledgees or secured parties may offer and sell the shares of common stock
from time to time pursuant to this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other applicable provision
of the Securities Act amending, if necessary, the list of selling security holders to include the pledgee, transferee or other
successors in interest as selling security holders under this prospectus. The selling security holders also may transfer and donate
the shares of common stock in other circumstances in which case the transferees, donees, pledgees or other successors in interest
will be the selling beneficial owners for purposes of this prospectus.

 

To the extent required
by the Securities Act and the rules and regulations thereunder, the selling security holders and any broker-dealer participating
in the distribution of the shares of common stock may be deemed to be “underwriters” within the meaning of the Securities
Act, and any commission paid, or any discounts or concessions allowed to, any such broker-dealer may be deemed to be underwriting
commissions or discounts under the Securities Act. At the time a particular offering of the shares of common stock is made, a prospectus
supplement, if required, will be distributed, which will set forth the aggregate amount of shares of common stock being offered
and the terms of the offering, including the name or names of any broker-dealers or agents, any discounts, commissions and other
terms constituting compensation from the selling security holders and any discounts, commissions or concessions allowed or re-allowed
or paid to broker-dealers.

 

Under the securities
laws of some states, the shares of common stock may be sold in such states only through registered or licensed brokers or dealers.
In addition, in some states the shares of common stock may not be sold unless such shares have been registered or qualified for
sale in such state or an exemption from registration or qualification is available and is complied with.

 

     

     

    

  

There can be no assurance
that any selling security holder will sell any or all of the shares of common stock registered pursuant to the registration statement,
of which this prospectus forms a part.

 

The selling security
holders and any other person participating in such distribution will be subject to applicable provisions of the Securities Exchange
Act of 1934, as amended, and the rules and regulations thereunder, including, without limitation, to the extent applicable, Regulation
M of the Exchange Act, which may limit the timing of purchases and sales of any of the shares of common stock by the selling security
holders and any other participating person. To the extent applicable, Regulation M may also restrict the ability of any person
engaged in the distribution of the shares of common stock to engage in market-making activities with respect to the shares of common
stock. All of the foregoing may affect the marketability of the shares of common stock and the ability of any person or entity
to engage in market-making activities with respect to the shares of common stock.

 

We will pay all expenses
of the registration of the shares of common stock pursuant to the registration rights agreement, estimated to be $[     ]
in total, including, without limitation, Securities and Exchange Commission filing fees and expenses of compliance with state securities
or “blue sky” laws; provided, however, that a selling security holder will pay all underwriting discounts
and selling commissions, if any. We will indemnify the selling security holders against liabilities, including some liabilities
under the Securities Act in accordance with the registration rights agreements or the selling security holders will be entitled
to contribution. We may be indemnified by the selling security holders against civil liabilities, including liabilities under the
Securities Act that may arise from any written information furnished to us by the selling security holder specifically for use
in this prospectus, in accordance with the related registration rights agreements or we may be entitled to contribution.

 

Once sold under the
registration statement, of which this prospectus forms a part, the shares of common stock will be freely tradable in the hands
of persons other than our affiliates.

 

     

     

    

 

EXHIBIT D

 

PACIFIC
ETHANOL, INC.

 

SELLING STOCKHOLDER QUESTIONNAIRE

 

In connection with the Registration Rights
Agreement dated _________, 2019 (the “Registration Rights Agreement”) by and between Pacific Ethanol,
Inc., a Delaware corporation (the “Company”) and the undersigned selling stockholder (the “Selling
Stockholder”), the Company agreed to file with the U.S. Securities and Exchange Commission (the “Commission”)
a registration statement (the “Resale Registration Statement”) pursuant to which the Company will register
for resale certain shares of its common stock (the “Restricted Securities”) held of record by the Selling
Stockholder and shares underlying warrants held of record by the Selling Stockholder under Rule 415 under the Securities Act of
1933, as amended (the “Securities Act”).

 

This Selling Stockholder Questionnaire
(the “Questionnaire”) requests certain information regarding you as a Selling Stockholder which is necessary
to complete the preparation of the Resale Registration Statement. Exhibit A to this questionnaire defines certain terms
which are used herein.

 

	1.	Please provide the full legal name of the Selling Stockholder(s):
	 	 
	 	
	 	 
	 	
	 	 
	 	If the Selling Stockholder is a corporation, partnership, limited liability company or other entity, please provide the jurisdiction under which such entity is organized: 
	 	 
	 	

 

	2.	Please indicate below the total number of shares of the Company’s common stock held by the Selling Stockholder as of the date hereof: 
	 	 
	 	

 

	3.	Please indicate below the nature of any position, office or other material relationship which the Selling Stockholder has had within the past three years with the Company or any of the Company’s affiliates: 
	 	 
	 	

 

	4.	Is the Selling Stockholder a registered “broker-dealer” under Section 15 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)? “Broker” and “dealer” are defined on Exhibit A attached hereto. 

 

	Yes	☐	No	☐

 

If “Yes”, did the Selling
Stockholder receive the Restricted Securities as compensation for services provided to the Company?

 

	Yes	☐	No	☐

 

     

     

    

  

If the Selling Stockholder is a Broker
or Dealer and has checked the “No” box directly above, the Company may identify the Selling Stockholder as an underwriter
in the Resale Registration Statement and related prospectus in accordance with the Commission’s rules and interpretations.

 

	5.	Is the Selling Stockholder an “affiliate” of a registered broker-dealer as defined above? An “affiliate” is a person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the person specified. Securities Act, Rule 405, Rule 501(b), Rule 3b-18. 

 

	Yes	☐	No	☐

 

If “Yes”, did the Selling
Stockholder both: (i) purchase the Restricted Securities in the ordinary course of business; and (ii) has no agreement or
understanding, directly or indirectly, with any party to distribute the Restricted Securities, at the time of purchase of the Restricted
Securities?

 

	Yes	☐	No	☐

 

If the Selling Stockholder is an
affiliate of a Broker or Dealer and has checked the “No” box directly above, the Company may identify such Selling
Stockholder as an underwriter in the Resale Registration Statement and related prospectus in accordance with the Commission’s
rules and interpretations. 

 

	6.	Please list in the space provided below the names of all natural persons (i.e., individuals), if any, who have beneficial ownership of the Restricted Securities. “Beneficial ownership” is defined on Exhibit A attached hereto. 
	 	 
	 	
	 	 
	7.	Are there any agreement or understanding to transfer the Restricted Securities to a third party or any existing warrants, options, stock purchase agreements, redemption agreements, restrictions of any nature, calls or rights to subscribe of any character relating to the Restricted Securities?

 

	Yes	☐	No	☐

 

If “Yes”, please describe
below:

	 	 
	 	

 

		8.	Is the Selling Stockholder
subject to any lock-up or leak-out agreements with respect to the Restricted Securities?

 

	Yes	☐	No	☐

 

If “Yes”, please describe
below:

	 	 
	 	

 

		9.	At the time the Selling Stockholder
acquired the Restricted Securities was the Selling Stockholder a U.S. person? “U.S. person” is
defined on Exhibit A attached hereto.

 

	Yes	☐	No	☐

 

Once you have completed the Questionnaire,
please sign it to indicate:

 

	●	your acknowledgment that the Company will rely on the information provided by you in this Questionnaire in the preparation and filing of the Resale Registration Statement, and your consent for the Company to use the information provided therein;
	 	 
	●	your acknowledgement that material misstatements or omissions in your responses to the questions contained in this Questionnaire may give rise to civil and criminal liabilities against you;
	 	 
	●	your agreement to promptly notify the Company of any changes in information provided in the Questionnaire occurring after the date you sign the Questionnaire; and
	 	 
	●	your confirmation that the information contained in the Questionnaire is true and correct, to the best of your knowledge and belief after a reasonable investigation, as of the date you sign the Questionnaire.

 

     

     

    

  

If the Restricted
Securities are held of record by more than one person, both persons must complete and sign this Questionnaire.

 

Please return this
completed executed Questionnaire as soon as possible, but not later than ___________________ to: Christopher W. Wright, Esq., General
Counsel of the Company. THE EXISTENCE AND CONTENTS OF THE QUESTIONNAIRE, AS WELL AS YOUR ANSWERS AND ALL NOTES AND DRAFTS PREPARED
BY YOU, ARE CONSIDERED EXTREMELY CONFIDENTIAL AND PROPRIETY BY THE COMPANY AND SHOULD BE TREATED ACCORDINGLY.

 

IN WITNESS WHEREOF,
the undersigned, by authority duly given, has caused this Questionnaire to be executed and delivered either in person or by its
authorized agent.

 

	 	 	 
	Dated:	             	 
	 	 	 
	 	 
	Printed Name of Selling Stockholder(s)	 
	 	 	 
	 	 
	Signature	 
	 	 
	 	 
	Signature	 
	 	 
	 	 
	Printed name(s) of Signatory	 
	 	 
	 	 
	Title of Signatory, if applicable	 

 

     

     

    

 

EXHIBIT A 

 

Exchange Act, Section 3(a)(4). 

 

A. “Broker”
means generally, any person engaged in the business of effecting transactions in securities for the account of others.

 

B. A
bank shall not be considered to be a broker because the bank engages in any one or more of the following activities under the conditions
described:

 

	i.	Third party brokerage arrangements: The bank enters into a contractual or other written arrangement with a broker or dealer registered under this title under which the broker or dealer offers brokerage services on or off the premises of the bank if — 

 

	 	I.	such broker or dealer is clearly identified as the person performing the brokerage services; 

 

	 	II.	the broker or dealer performs brokerage services in an area that is clearly marked and, to the extent practicable, physically separate from the routine deposit-taking activities of the bank; 

 

	 	III.	any materials used by the bank to advertise or promote generally the availability of brokerage services under the arrangement clearly indicate that the brokerage services are being provided by the broker or dealer and not by the bank; 

 

	 	IV.	any materials used by the bank to advertise or promote generally the availability of brokerage services under the arrangement are in compliance with the Federal securities laws before distribution; 

 

	 	V.	bank employees (other than associated persons of a broker or dealer who are qualified pursuant to the rules of a self-regulatory organization) perform only clerical or ministerial functions in connection with brokerage transactions including scheduling appointments with the associated persons of a broker or dealer, except that bank employees may forward customer funds or securities and may describe in general terms the types of investment vehicles available from the bank and the broker or dealer under the arrangement; 

 

	 	VI.	bank employees do not receive incentive compensation for any brokerage transaction unless such employees are associated persons of a broker or dealer and are qualified pursuant to the rules of a self- regulatory organization, except that the bank employees may receive compensation for the referral of any customer if the compensation is a nominal one-time cash fee of a fixed dollar amount and the payment of the fee is not contingent on whether the referral results in a transaction; 

 

	 	VII.	such services are provided by the broker or dealer on a basis in which all customers that receive any services are fully disclosed to the broker or dealer; 

 

	 	VIII.	the bank does not carry a securities account of the customer except as permitted under clause (ii) or (viii) of this subparagraph; and 

 

	 	IX.	the bank, broker, or dealer informs each customer that the brokerage services are provided by the broker or dealer and not by the bank and that the securities are not deposits or other obligations of the bank, are not guaranteed by the bank, and are not insured by the Federal Deposit Insurance Corporation. 

 

     

     

    

  

	ii.	Trust activities: The bank effects transactions in a trustee capacity, or effects transactions in a fiduciary capacity in its trust department or other department that is regularly examined by bank examiners for compliance with fiduciary principles and standards, and— 

 

	 	I.	is chiefly compensated for such transactions, consistent with fiduciary principles and standards, on the basis of an administration or annual fee (payable on a monthly, quarterly, or other basis), a percentage of assets under management, or a flat or capped per order processing fee equal to not more than the cost incurred by the bank in connection with executing securities transactions for trustee and fiduciary customers, or any combination of such fees; and 

 

	 	II.	does not publicly solicit brokerage business, other than by advertising that it effects transactions in securities in conjunction with advertising its other trust activities. 

 

	iii.	Permissible securities transactions: The bank effects transactions in— 

 

	 	I.	commercial paper, bankers acceptances, or commercial bills; 

 

	 	II.	exempted securities; 

 

	 	III.	qualified Canadian government obligations as defined in section 24 of Title 12, in conformity with section 15C and the rules and regulations thereunder, or obligations of the North American Development Bank; or 

 

	 	IV.	any standardized, credit enhanced debt security issued by a foreign government pursuant to the March 1989 plan of then Secretary of the Treasury Brady, used by such foreign government to retire outstanding commercial bank loans. 

 

	iv.	Certain stock purchase plans

 

	 	I.	Employee benefit plans: The bank effects transactions, as part of its transfer agency activities, in the securities of an issuer as part of any pension, retirement, profit- sharing, bonus, thrift, savings, incentive, or other similar benefit plan for the employees of that issuer or its affiliates (as defined in section 1841 of Title 12), if the bank does not solicit transactions or provide investment advice with respect to the purchase or sale of securities in connection with the plan. 

 

	 	II.	Dividend reinvestment plans: The bank effects transactions, as part of its transfer agency activities, in the securities of an issuer as part of that issuer’s dividend reinvestment plan, if— 
	 	 	 
	 	 	(aa)	the bank does not solicit transactions or provide investment advice with respect to the purchase or sale of securities in connection with the plan; and
	 	 	 	 
	 	 	(bb)	the bank does not net shareholders’ buy and sell orders, other than for programs for odd-lot holders or plans registered with the Commission.

 

	 	III.	Issuer plans: The bank effects transactions, as part of its transfer agency activities, in the securities of an issuer as part of a plan or program for the purchase or sale of that issuer’s shares, if— 
	 	 	 
	 	 	(aa)	the bank does not solicit transactions or provide investment advice with respect to the purchase or sale of securities in connection with the plan or program; and
	 	 	 	 
	 	 	(bb)	the bank does not net shareholders’ buy and sell orders, other than for programs for odd-lot holders or plans registered with the Commission.

 

     

     

    

  

	 	IV.	Permissible delivery of materials: The exception to being considered a broker for a bank engaged in activities described in subclauses (I), (II), and (III) will not be affected by delivery of written or electronic plan materials by a bank to employees of the issuer, shareholders of the issuer, or members of affinity groups of the issuer, so long as such materials are— 
	 	 	 
	 	 	(aa)	comparable in scope or nature to that permitted by the Commission as of November 12, 1999; or
	 	 	 	 
	 	 	(bb)	otherwise permitted by the Commission.

 

	v.	Sweep accounts: The bank effects transactions as part of a program for the investment or reinvestment of deposit funds into any no-load, open-end management investment company registered under the Investment Company Act of 1940 that holds itself out as a money market fund. 

 

	vi.	Affiliate transactions: The bank effects transactions for the account of any affiliate of the bank (as defined in section 1841 of Title 12) other than— 

 

	 	I.	a registered broker or dealer; or 

 

	 	II.	an affiliate that is engaged in merchant banking, as described in section 1843(k)(4)(H) of Title 12. 

 

	vii.	Private securities offerings: The bank— 

 

	 	I.	effects sales as part of a primary offering of securities not involving a public offering, pursuant to section 3(b), 4(2), or 4(6) of the Securities Act of 1933 or the rules and regulations issued thereunder; 

 

	 	II.	at any time after the date that is 1 year after November 12, 1999, is not affiliated with a broker or dealer that has been registered for more than 1 year in accordance with this title, and engages in dealing, market making, or underwriting activities, other than with respect to exempted securities; and 

 

	 	III.	if the bank is not affiliated with a broker or dealer, does not effect any primary offering described in subclause (I) the aggregate amount of which exceeds 25 percent of the capital of the bank, except that the limitation of this subclause shall not apply with respect to any sale of government securities or municipal securities. 

 

	viii.	Safekeeping and custody activities

 

	 	I.	In general: The bank, as part of customary banking activities— 
	 	 	 
	 	 	(aa)	provides safekeeping or custody services with respect to securities, including the exercise of warrants and other rights on behalf of customers;
	 	 	 	 
	 	 	(bb)	facilitates the transfer of funds or securities, as a custodian or a clearing agency, in connection with the clearance and settlement of its customers’ transactions in securities;

 

     

     

    

  

	 	 	(cc)	effects securities lending or borrowing transactions with or on behalf of customers as part of services provided to customers pursuant to division (aa) or (bb) or invests cash collateral pledged in connection with such transactions
	 	 	 	 
	 	 	(dd)	holds securities pledged by a customer to another person or securities subject to purchase or resale agreements involving a customer, or facilitates the pledging or transfer of such securities by book entry or as otherwise provided under applicable law, if the bank maintains records separately identifying the securities and the customer; or
	 	 	 	 
	 	 	(ee)	serves as a custodian or provider of other related administrative services to any individual retirement account, pension, retirement, profit sharing, bonus, thrift savings, incentive, or other similar benefit plan.

 

	 	II.	Exception for carrying broker activities: The exception to being considered a broker for a bank engaged in activities described in subclause (I) shall not apply if the bank, in connection with such activities, acts in the United States as a carrying broker (as such term, and different formulations thereof, are used in section 15(c)(3) and the rules and regulations thereunder) for any broker or dealer, unless such carrying broker activities are engaged in with respect to government securities (as defined in paragraph (42)).
	 	 
	ix.	Identified banking products: The bank effects transactions in identified banking products as defined in section 206 of the Gramm-Leach-Bliley Act [15 U.S.C.A. § 78c note]. 

 

	x.	Municipal securities: The bank effects transactions in municipal securities. 

 

	xi.	De minimis exception: The bank effects, other than in transactions referred to in clauses (i) through (x), not more than 500 transactions in securities in any calendar year, and such transactions are not effected by an employee of the bank who is also an employee of a broker or dealer. 
	 	 

C. Execution by broker or dealer: The
exception to being considered a broker for a bank engaged in activities described in clauses (ii), (iv), and (viii) of subparagraph
(B) shall not apply if the activities described in such provisions result in the trade in the United States of any security
that is a publicly traded security in the United States, unless—

 

	i.	the bank directs such trade to a registered broker or dealer for execution; 

 

	ii.	the trade is a cross trade or other substantially similar trade of a security that— 

 

	 	I.	is made by the bank or between the bank and an affiliated fiduciary; and 

 

	 	II.	is not in contravention of fiduciary principles established under applicable Federal or State law; or 

 

	iii.	the trade is conducted in some other manner permitted under rules, regulations, or orders as the Commission may prescribe or issue. 
	 	 

D. Fiduciary capacity: For purposes
of subparagraph (B)(ii), the term “fiduciary capacity” means —

 

	i.	in the capacity as trustee, executor, administrator, registrar of stocks and bonds, transfer agent, guardian, assignee, receiver, or custodian under a uniform gift to minor act, or as an investment adviser if the bank receives a fee for its investment advice; 

 

     

     

    

  

	ii.	in any capacity in which the bank possesses investment discretion on behalf of another; or 

 

	iii.	in any other similar capacity. 
	 	 

E. Exception for entities subject to
section 15(e): The term “broker” does not include a bank that—

 

	i.	was, on the day before November 12, 1999, subject to section 15(e); and 

 

	ii.	is subject to such restrictions and requirements as the Commission considers appropriate. 

 

Exchange Act, Section 3(a)(5).

 

A. “Dealer”
means generally, any person engaged in the business of buying and selling securities for such person’s own account through
a broker or otherwise.

 

B. Exception
for person not engaged in the business of dealing: The term “dealer” does not include a person that buys or sells
securities for such person’s own account, either individually or in a fiduciary capacity, but not as a part of a regular
business.

 

C. Exception
for certain bank activities: A bank shall not be considered to be a dealer because the bank engages in any of the following
activities under the conditions described:

 

	i.	Permissible securities transactions: The bank buys or sells— 

 

	 	I.	commercial paper, bankers acceptances, or commercial bills; 

 

	 	II.	exempted securities; 

 

	 	III.	qualified Canadian government obligations as defined in section 24 of Title 12, in conformity with section 15C and the rules and regulations thereunder, or obligations of the North American Development Bank; or 

 

	 	IV.	any standardized, credit enhanced debt security issued by a foreign government pursuant to the March 1989 plan of then Secretary of the Treasury Brady, used by such foreign government to retire outstanding commercial bank loans. 

 

	ii.	Investment, trustee, and fiduciary transactions: The bank buys or sells securities for investment purposes— 

 

	 	I.	for the bank; or 

 

	 	II.	for accounts for which the bank acts as a trustee or fiduciary. 

 

	iii.	Asset-backed transactions: The bank engages in the issuance or sale to qualified investors, through a grantor trust or other separate entity, of securities backed by or representing an interest in notes, drafts, acceptances, loans, leases, receivables, other obligations (other than securities of which the bank is not the issuer), or pools of any such obligations predominantly originated by— 

 

	 	I.	the bank; 

 

	 	II.	an affiliate of any such bank other than a broker or dealer; or 

 

	 	III.	a syndicate of banks of which the bank is a member, if the obligations or pool of obligations consists of mortgage obligations or consumer related receivables. 

 

     

     

    

 

	iv.	Identified banking products: The bank buys or sells identified banking products, as defined in section 206 of the Gramm-Leach-Bliley Act [15 U.S.C.A. § 78c note]. 

 

“Beneficial Ownership”
Securities are “beneficially owned” by an individual if such individual, directly or indirectly, through any contract,
arrangement, understanding, relationship or other means, has or shares with others either (or both):

 

	 	●	 	Voting power, that is, the power to vote, or to direct the vote, of the securities; and/or 

 

	 	●	 	Investment power, that is, the power to dispose, or to direct the disposition, of the securities. 

Securities beneficially owned need not
be registered in an individual’s name. For example, an individual would ordinarily be considered the beneficial owner of
securities:

 

	 	●	 	held in the name of family members, if such individual has the power to re-vest title in himself or herself or to dispose or direct the voting of the securities; 

 

	 	●	 	held for such individual in the names of nominees, such as brokers, or in “street name”; 

 

	 	●	 	held by a partnership of which such individual is a partner; 

 

	 	●	 	held by a corporation controlled by such individual; or 

 

	 	●	 	held by a trust of which such individual is a trustee. 
	 	 	 	 

On the other hand, securities would not
be beneficially owned by an individual if such individual only has the right to receive dividends on, or the sale proceeds of,
such securities, and does not have or share the power to vote or divest them. For example, a beneficiary of the income from securities
held in a trust managed by independent trustees would not ordinarily be the beneficial owner of such securities.

 

An individual would also be considered
the beneficial owner of securities on any date if he or she has the right to acquire beneficial ownership, as defined above, within
60 days of that date, including pursuant to the exercise of an option, warrant, or other right, through conversion of a security,
or pursuant to the power to revoke a trust, discretionary account, or similar arrangement.

 

U.S. person.
A “U.S. person” means:

 

	(i)	any natural person resident in the United States;
	 	 
	(ii)	any partnership or corporation organized or incorporated under the laws of the United States;
	 	 
	(iii)	any estate of which any executor or administrator is a U.S. person;
	 	 
	(iv)	any trust of which any trustee is a U.S. person;
	 	 
	(v)	any agency or branch of a foreign entity located in the United States;
	 	 
	(vi)	any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a U.S. person;

 

     

     

    

  

	(vii)	any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or (if an individual) resident in the United States; and
	 	 
	(viii)	any partnership or corporation if:
	 	 
	 	(A)	organized or incorporated under the laws of any foreign jurisdiction; and
	 	 	 
	 	(B)	formed by a U.S. person principally for the purpose of investing in securities not registered under the Act, unless it is organized or incorporated, and owned, by accredited investors who are not natural persons, estates or trusts.
	 	 
	The following are not “U.S. persons”:
	 	 
	(i)	any discretionary account or similar account (other than an estate or trust) held for the benefit or account of a non-U.S. person by a dealer or other professional fiduciary organized, incorporated, or (if an individual) resident in the United States;
	 	 
	(ii)	any estate of which any professional fiduciary acting as executor or administrator is a U.S. person if:
	 	 
	 	(A)	an executor or administrator of the estate who is not a U.S. person has sole or shared investment discretion with respect to the assets of the estate; and
	 	 	 
	 	(B)	the estate is governed by foreign law;
	 	 
	(iii)	any trust of which any professional fiduciary acting as trustee is a U.S. person, if a trustee who is not a U.S. person has sole or shared investment discretion with respect to the trust assets, and no beneficiary of the trust (and no settlor if the trust is revocable) is a U.S. person;
	 	 
	(iv)	an employee benefit plan established and administered in accordance with the law of a country other than the United States and customary practices and documentation of such country;
	 	 
	(v)	any agency or branch of a U.S. person located outside the United States if:
	 	 
	 	(A)	the agency or branch operates for valid business reasons; and
	 	 	 
	 	(B)	the agency or branch is engaged in the business of insurance or banking and is subject to substantive insurance or banking regulation, respectively, in the jurisdiction where located; and
	 	 
	(vi)	the International Monetary Fund, the International Bank for Reconstruction and Development, the Inter-American Development Bank, the Asian Development Bank, the African Development Bank, the United Nations, and their agencies, affiliates and pension plans, and any other similar international organizations, their agencies, affiliates and pension plans.

 

“United
States” means the United States of America, its territories and possessions, any State of the United States, and the
District of Columbia.Exhibit 10.5

 

Execution Version

 

SECOND AMENDMENT TO SECURITY AGREEMENT

 

THIS SECOND AMENDMENT
TO SECURITY AGREEMENT (this “Amendment”) is entered into effective as of December 22, 2019 by and among Pacific
Ethanol, Inc., a Delaware corporation (the “Company”), each Holder, in its capacity as such and as a Secured
Party, and Cortland Capital Market Services LLC, as collateral agent for itself and the Secured Parties (in such capacity, together
with its successors and assigns in such capacity, the “Agent”). All capitalized terms not otherwise defined
herein shall have the meanings attributed to them in that certain Senior Secured Note Amendment Agreement dated effective as of
December 22, 2019 by and among the Company and each Holder (the “Amendment Agreement”).

 

RECITALS

 

WHEREAS, the Company
issued certain Secured Promissory Notes in the aggregate original principal amount of $55,000,000 on December 15, 2016 (the “Initial
Notes”) pursuant to a Note Purchase Agreement dated as of December 12, 2016 by and among the Company and the Investors
identified therein (the “Initial Purchase Agreement”), the obligations arising under which, among other obligations,
are secured pursuant to the Security Agreement.

 

WHEREAS, the Company
and certain Holders (including certain Holders that hold Initial Notes and certain Holders that do not hold Initial Notes) are
parties to a Note Purchase Agreement dated as of June 26, 2017 (as amended, restated, supplemented or otherwise modified from time
to time, including amendments and restatements thereof in its entirety, the “Additional Purchase Agreement”),
pursuant to which the Company issued $13,948,078 in aggregate original principal amount of senior secured notes due December 15,
2019 (as amended, restated, supplemented or otherwise modified from time to time, the “Additional Notes”).

 

WHEREAS, the Holders
are holders of the Initial Notes, the Additional Notes and certain other Secured Promissory Notes issued by the Company on December
16, 2019 (the “Existing Notes”). Pursuant to the Amendment Agreement, the Existing Notes have been amended and
restated with the written consent of all holders of Existing Notes (the “Amended Notes”).

 

WHEREAS, as a condition
to the closing under the Amendment Agreement with the Company, the Holders of the Amended Notes have required, among other things,
that the Company shall enter into this Amendment.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto hereby agree as follows:

 

1. Certain
Definitions. The following defined terms are added to Section 1 of the Security Agreement, or to the extent already defined
in the Security Agreement, are amended and restated to read in their entireties as follows:

 

“Amendment
Agreement” means that certain Senior Secured Note Amendment Agreement dated as of December 22, 2019, by and among the
Company and the Holders from time to time party thereto.

 

“Amended
Note” means any amended and restated Note amended and restated pursuant to the Amendment Agreement in substantially
the form attached thereto as Exhibit B.

 

     

     

    

 

“Holders”
means (x) each Person that is (i) a signatory to the Amendment Agreement and identified as a “Noteholder” on Exhibit
A to the Amendment Agreement, (ii) a holder of any of the Notes, and (iii) a signatory to the Second Amendment in its capacity
as a Holder and as a “Secured Party” and (y) any other Person that becomes (i) a holder of any of the Notes pursuant
to any permitted assignment or transfer and (ii) a “Secured Party” under this Agreement pursuant to a Security Agreement
Joinder, other than any such Person that ceases to be a party hereto pursuant to an assignment of all of its Notes and its rights
and obligations under the Transaction Documents.

 

“Obligations”
means all of the liabilities and obligations (primary, secondary, direct, contingent, sole, joint or several) due or to become
due, or that are now or may be hereafter contracted or acquired, or owing to, of the Company to the Agent or to the Secured Parties,
including, without limitation, all obligations under this Agreement, the Initial Purchase Agreement, the Additional Purchase Agreement,
the Notes, the Amendment Agreement, the Agent Fee Letter, the Transaction Documents (as defined in the Amendment Agreement) and
any other instruments, agreements or other documents executed and/or delivered in connection herewith or therewith, in each case,
whether now or hereafter existing, voluntary or involuntary, direct or indirect, absolute or contingent, liquidated or unliquidated,
whether or not jointly owed with others, and whether or not from time to time decreased or extinguished and later increased, created
or incurred, and all or any portion of such obligations or liabilities that are paid, to the extent all or any part of such payment
is avoided or recovered directly or indirectly from Agent or any of the Secured Parties as a preference, fraudulent transfer or
otherwise as such obligations may be amended, supplemented, converted, extended or modified from time to time. Without limiting
the generality of the foregoing, the term “Obligations” shall include, without limitation: (i) the principal amount
of, and interest on the Notes and the loans extended pursuant thereto; (ii) any and all other fees, indemnities, costs, obligations
and liabilities of the Company from time to time under or in connection with this Agreement, the Initial Purchase Agreement, the
Additional Purchase Agreement, the Notes, the Amendment Agreement, the Agent Fee Letter, the Transaction Documents and any other
instruments, agreements or other documents executed and/or delivered in connection herewith or therewith; and (iii) all amounts
(including but not limited to post-petition interest) in respect of the foregoing that would be payable but for the fact that the
obligations to pay such amounts are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar
proceeding involving the Company.

 

The term “Notes”
referred to in Recital A of the Security Agreement, and the term “Notes” used throughout the body of the Security
Agreement, shall include the Initial Notes and the Additional Notes, collectively, as such Notes may be amended, restated, amended
and restated, supplemented or otherwise modified from time to time, including, for the avoidance of doubt, as amended and restated
by the applicable Amended Note.

 

    2

     

    

 

The term “Purchase
Agreement” referred to in Recital A of the Security Agreement, and the term “Purchase Agreement” used
throughout the body of the Security Agreement, shall include the Initial Purchase Agreement and the Additional Purchase Agreement,
collectively, as such agreements may be amended, restated, amended and restated, supplemented or otherwise modified from time to
time, including, for the avoidance of doubt, as amended and restated by the Amendment Agreement.

 

“Second Amendment” means
the Second Amendment to Security Agreement, dated as of December 22, 2019, among the Company, each Holder and the Agent.

 

2. Amendment to
Notice Address. The Agent’s notice address shall be amended and restated in its entirety to read as set forth on the
signature page attached to this Amendment.

 

3. Effectiveness.
This Amendment will become effective upon the date on which the Agent has received a counterpart hereof duly executed by each party
hereto.

 

4. Representations
and Warranties. In order to induce the Agent and the Holders to enter into this Amendment, the Company hereby remakes all of
the representations and warranties contained in Section 6 of the Security Agreement as of the date of this Amendment (except to
the extent such representation or warranty relates to an earlier date, in which case, it is true, correct and complete as of such
earlier date). The Company’s representations and warranties in Sections 6(b) and (c) of the Security Agreement shall apply,
mutatis mutandis, to this Amendment.

 

5. Interpretation.
Except as expressly modified by this Amendment, all terms and provisions of the Security Agreement shall remain unchanged and in
full force and effect and are ratified and affirmed on the date hereof. In the event of any inconsistency between the terms of
this Amendment and the terms of the Security Agreement prior to its amendment, the terms of this Amendment shall control.

 

6. Reaffirmation.
The Company hereby acknowledges and agrees that (i) to the extent any Transaction Document purports to grant, assign or pledge
to the Agent or any Holder a security interest or lien on any collateral as security for the Obligations, such grant, assignment
or pledge is hereby ratified and confirmed in all respects and (ii) the obligations secured under the Transaction Documents will
include all Obligations, as amended by this Amendment and the Amendment Agreement, including the Amended Notes.

 

7. Counterparts.
This Amendment may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument
and either of the parties hereto may execute this Amendment by signing any such counterpart.

 

8. Governing Law.
This Amendment shall be construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation
and performance of this Agreement shall be governed by, the internal laws of the State of New York, without giving effect to any
choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause
the application of the laws of any jurisdictions other than the State of New York.

 

9. Direction.
The Holders party hereto constituting all of the Holders party to the Security Agreement hereby (i) (x) authorize and direct the
Agent to execute and deliver this Amendment and (y) authorize and direct the Agent to take any and all actions as may be required
or advisable to effectuate the amendments contemplated hereby and (ii) acknowledge and agree that (x) each of the directions in
this Section 9 constitute a direction from all Holders under the provisions of Section 17 of the Security Agreement and (y) Section
17(i) of the Security Agreement shall apply to any and all actions taken by the Agent in accordance with such directions.

 

[Signature Pages Follow]

 

    3

     

    

 

IN WITNESS WHEREOF, the parties hereto
have caused this Amendment to be duly executed and delivered as of the day and year first above written.

 

	 	COMPANY:
	 	 
	 	Pacific Ethanol, Inc.,
	 	a Delaware corporation
	 	 	 
	 	By:	/s/ Neil M. Koehler
	 	Name: 	Neil M. Koehler
	 	Title:	President & Chief Executive Officer

 

     

     

    

 

	 	AGENT:
	 	 
	 	Cortland Capital Market Services LLC,

as Agent
	 	 
	 	By:	/s/ Jon Kirschmeier
	 	Name: 	Jon Kirschmeier                         
	 	Title:	Associate Counsel
	 	 
	 	Address:
	 	Cortland Capital Market Services LLC
	 	225 W. Washington Street, 9th Floor
	 	Chicago, IL 60606
	 	Attention: Ashwinee Sawh and Legal Department
	 	Telecopy no.: (312) 562-5072
	 	E-mail: Cortland_Successor

Agent@cortlandglobal.com
	 	and legal@cortlandglobal.com
	 	 
	 	with a copy (which copy shall not constitute notice) to:
	 	 
	 	Arnold & Porter Kaye Scholer LLP
	 	250 W. 55th Street
	 	New York, NY 10019
	 	Attention: Alan Glantz
	 	Telecopy no.: (212) 836-6763
	 	E-mail: alan.glantz@amoldporter.com

 

     

     

    

 

	 	HOLDERS:
	 	 
	 	CWD Summit, LLC,
	 	acting for and on behalf of
	 	Candlewood Renewable Energy Series I
	 	 
	 	By:	/s/ David Koenig
	 	Name: 	David Koenig
	 	Title:	Authorized Signatory

 

     

     

    

 

	 	CKP South LLC
	 	 
	 	By:	/s/ [illegible]
	 	Name: 	 
	 	Title:	 

 

     

     

    

 

	 	Corrum Capital Alternative Income Fund, LP
	 	 
	 	By:	/s/ [illegible]
	 	Name: 	 
	 	Title:	 

 

     

     

    

 

	 	CIF-Income Partners (A), LLC
	 	 
	 	By: BlackRock Financial Management, Inc.
	 	Its investment manager
	 	 
	 	By:	/s/ Stephen Kavalich
	 	Name: 	Stephen Kavalich
	 	Title:	Director

 

     

     

    

 

	 	Orange 2015 DisloCredit Fund, L.P.
	 	 
	 	By: BlackRock Financial Management, Inc.
	 	Its investment manager
	 	 
	 	By:	/s/ Stephen Kavalich
	 	Name: 	Stephen Kavalich
	 	Title:	Director

 

     

     

    

 

	 	Sainsbury’s Credit Opportunities Fund, Ltd.
	 	 
	 	By: BlackRock Financial Management, Inc.
	 	Its investment manager
	 	 	 
	 	By:	/s/ Stephen Kavalich
	 	Name: 	Stephen Kavalich
	 	Title:	Director

 

     

     

    

 

	 	Co-Investment Income Fund, L.P. – US Tax-Exempt Series
	 	 
	 	By: BlackRock Financial Management, Inc.
	 	Its investment manager
	 	 
	 	By:	/s/ Stephen Kavalich
	 	Name: 	Stephen Kavalich
	 	Title:	Director

 

     

     

    

 

	 	Co-Investment Income Fund, L.P. – US Taxable Series
	 	 
	 	By: BlackRock Financial Management, Inc.
	 	Its investment manager
	 	 
	 	By:	/s/ Stephen Kavalich
	 	Name: 	Stephen Kavalich
	 	Title:	Director

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