Item 2.04 Triggering Events that Accelerate or Increase a Direct Financial
Obligation or an Obligation under an Off-Balance Sheet Arrangement Entry into a Material Definitive Agreement

On January 3, 2013, Cereplast, Inc. (the "Company") received a Notice of Event of Default (the "Notice") from Wells Fargo Bank, National Association, the Trustee under the Indenture (the "Indenture") dated as of May 24, 2011by and among the Company and the Trustee, with respect to the Company's 7% Convertible Senior Subordinated Notes (the "Notes"). The Notice was triggered by the failure of the Company to pay on December 1, 2012 pursuant to the terms of the Forbearance Agreements dated as of May 31, 2012 entered into with the holders of the Notes, interest in the amount of $332,500 that was due on June 1, 2012 and interest in the amount of $332,500 due on December 1, 2012. The Notes in the aggregate amount of $12,500,000 were originally issued pursuant to the Indenture on May 24, 2011. As of the date of this current report an aggregate amount of $10,000,000 of the Notes remain outstanding.

The Company is currently in negotiations with the holders of the Notes to reach an agreement to pay the outstanding interest payments.

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