Pacific Ethanol, Inc.
REAFFIRMATION OF GUARANTY
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>pei_8k-ex1002.htm
<DESCRIPTION>REAFFIRMATION OF GUARANTY
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10.2</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">REAFFIRMATION
OF GUARANTY</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Guarantor
hereby acknowledges and agrees that it has read and is familiar with, and hereby
consents to, all of the terms and conditions of the Forbearance Agreement and
Release dated the date hereof (&#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">Forbearance
Agreement</font>&#8221;) by and between <font style="DISPLAY: inline; FONT-WEIGHT: bold">COMERICA BANK</font>, a Texas banking
association (&#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">Bank</font>&#8221;),
Guarantor and <font style="DISPLAY: inline; FONT-WEIGHT: bold">KINERGY
MARKETING, LLC</font>, an Oregon limited liability company (&#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">Borrower</font>&#8221;)
and all of the agreements and documents referred to therein, and specifically
consents to the forbearance as set forth therein, and in said agreements and
documents.&#160;&#160;Guarantor hereby confirms and agrees that all of the terms
and provisions of Guarantor&#8217;s Guaranty (as defined in the Forbearance Agreement)
are hereby ratified and confirmed, and the Guaranty shall continue in full force
and effect as the guaranty of all Indebtedness (as the term &#8220;Indebtedness&#8221; is
defined in the Guaranty), including the obligations of Borrower to Bank under
the Forbearance Agreement.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Guarantor
further acknowledges that: (a) Section 1 of the Guaranty is hereby amended by
deleting the terms &#8220;<font style="DISPLAY: inline; FONT-STYLE: italic">provided</font> that the Guarantor&#8217;s
maximum aggregate liability under this Guaranty shall not exceed the Liability
Cap (as defined below)&#8221;; and (b) Section 30 of the Guaranty is hereby amended by
deleting it in its entirety.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bank has
informed Guarantor of the terms of the Forbearance
Agreement.&#160;&#160;Guarantor acknowledges having read the same and consented
to all of the terms and conditions thereof.&#160;&#160;Guarantor understands and
agrees that Bank has no duty under any agreement with Borrower, the Guaranty or
any other agreement with Guarantor to notify Guarantor or to seek this or any
future acknowledgment, consent or reaffirmation, and nothing contained herein is
intended to, or shall create such a duty as to any advances or transactions
hereafter.</font></div>
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    <div>&#160;</div>
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            <td valign="top" width="50%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Dated: May 12,
      2008</font></td>
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              <div><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">PACIFIC
      ETHANOL, INC.,</font></font></div>
              <div><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">a
      Delaware corporation</font></font></div>
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              <div><font size="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">By:
      <font style="DISPLAY: inline; TEXT-DECORATION: underline">/s/ NEIL M.
      KOEHLER&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font></font></font></div>
              <div> </div>
              <div><font size="2">Print Name: <font style="DISPLAY: inline; TEXT-DECORATION: underline">Neil M.
      Koehler&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font></font></div>
              <div>&#160;</div>
              <div><font size="2">Its: <font style="TEXT-DECORATION: underline"><font style="DISPLAY: inline; TEXT-DECORATION: underline">CEO</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></div>
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