Document:

Exhibit 10.22
	 

	 
		BIOFUEL ENERGY, LLC 
	 

	 
		DEFERRED COMPENSATION PLAN 
	 

	 
		FOR SELECT EMPLOYEES 
	 

	 
		ARTICLE 1 – INTRODUCTION 

	 

	 
		1.1 Purpose of the Plan 
	 

	 
		The Employer has adopted the Plan set forth
		herein to provide a means by which certain employees may elect to defer receipt
		of designated percentages or amounts of their Compensation and to provide a
		means for certain other deferrals of compensation. 
	 

	 
		1.2 Status of Plan 
	 

	 
		The Plan is intended to be a “plan
		which is unfunded and is maintained by an employer primarily for the purpose of
		providing deferred compensation for a select group of management or highly
		compensated employees” within the meaning of Sections 201(2) and 301(a)(3)
		of the Employee Retirement Income Security Act of 1974 (“ERISA”), and
		shall be interpreted and administered to the extent possible in a manner
		consistent with that intent. 
	 

	 
		1.3 Section 409A of the Code 
	 

	 
		The Employer intends that this Plan be
		construed in accordance with Section 409A of the Code and so as to avoid the
		imposition of the penalty tax under Section 409A. In the event of any
		inconsistency between the Plan and Section 409A of the Code, Section 409A shall
		control. 
	 

	 
		ARTICLE 2 – DEFINITIONS 
	 

	 
		Whenever used herein, the following terms
		have the meanings set forth below, unless a different meaning is clearly
		required by the context: 
	 

	 
		2.1 Account means, for each Participant, the account established for
		his or her benefit under Section 5.1. 
	 

	 
		2.2 Change of Control has the meaning set forth in the Employer’s Change
		of Control Plan, as amended from time to time, except to the extent that such
		meaning is inconsistent with Section 409A of the Code in which case the meaning
		given to such term in Section 409A of the Code shall control. 
	 

	 
		2.3 Claimant means a participant or beneficiary who has had a claim
		for benefits denied and who may appeal the denial in accordance with Section
		8.4. 
	 

	 
		2.4 Code means the Internal Revenue Code of 1986, as amended,
		from time to time. Reference to any section or subsection of the Code includes
		reference to any comparable or succeeding provisions of any legislation which
		amends, supplements or replaces such section or subsection. 
	 

	 
		2.5 Compensation means the regular or base salary and bonuses payable by
		the Employer or an Affiliate to an individual. For purposes of the Plan,
		Compensation will be determined before giving effect to Elective Deferrals and
		other salary reduction amounts which are not included in the Participant’s
		gross income under Section 125, 401(k), 402(h) or 403(b) of the Code. 
	 

	 
		Bonuses shall be deemed to have been earned
		during the Plan Year in which the Employer accrues such bonuses for federal
		income tax reporting purposes. Under the Employer’s present method of
		Federal income tax reporting, regular bonuses paid in March of a given year are
		accrued ratably during the prior year. Regular salary and special bonuses, as
		designated by the Board of Directors or the Board of Managers of Employer, as
		the case may be (the “Board”), or its Compensation Committee, are
		included in Compensation at the time paid to the employee. Thus, for example,
		Compensation for the Plan Year ending December 31, 2007 includes regular salary
		paid during 2007 and any regular 2007 annual bonus paid in January - April 2008
		relating to 2007 performance. An Elective Deferral to defer, say, 10% of a
		Participant’s 2007 Compensation will result in the deferral hereunder of
		10% of the Participant’s 2007
	 

	 
		 
	 

	 
		 
	 

	 
 

	 
		salary and 10% of any regular bonus paid to
		the Participant in 2008. Individuals may make separate elections as to the
		portion of salary and/or bonus that they wish to defer. Nothing in this section
		shall deem a bonus to be earned in a period after it is actually earned for
		purposes of applying the general rule under Section 409A of the Code that
		elections to defer Compensation must be made prior to the year in which the
		bonuses are earned.
	 

	 
		2.6 Deemed Asset means an asset, other than the Funds, that
		a portion of a Participant’s account is deemed to be invested in. 
	 

	 
		2.7 Disability means a Separation from Service as a result of the fact
		that the Participant is unable to engage in any substantial gainful activity by
		reason of any medically determinable physical or mental impairment which can
		reasonably be expected to result in death or can be expected to last for a
		continuous period of at least 12 months, and as long as such condition
		qualifies as a disability within the meaning of Section 409A.
	 

	 
		2.8 Effective Date means
		December 1, 2006. 
	 

	 
		2.9 Election Form means the
		participation election form as approved and prescribed by the Plan
		Administrator. 
	 

	 
		2.10 Elective Deferral
		means the portion of Compensation
		during a Plan Year which is deferred by a Participant under Section 4.1.
		
	 

	 
		2.11 Eligible Employee means, on the Effective Date or on any date thereafter
		specified by the Board or its Compensation Committee, those employees of the
		Employer selected by the Board or its Compensation Committee or by such persons
		as the Compensation Committee may authorize to select employees entitled to
		participate in the Plan. 
	 

	 
		2.12 Entry Date means, for each Participant, the date deferrals
		commence in accordance with Section 4.1. 
	 

	 
		2.13 Employer means BioFuel Energy, LLC, any successor to all or a
		major portion of its assets or business which assumes the obligation of
		Employer, and each other entity that is affiliated with the Employer that
		adopts the Plan with the Consent of the Employer, provided that BioFuel Energy,
		LLC shall have the sole power to amend this Plan and shall be the Plan
		Administrator if no other person or entity is so serving at any time. 
	 

	 
		2.14 Employer Stock means BioFuel Energy Corp. common stock, par value $.01
		per share, following any conversion of Employer (through merger,
		recapitalization, statutory conversion or otherwise) to a C-Corp. 
	 

	 
		2.15 Employer Stock
		Deferral means the portion of a
		Participant’s Compensation which is Employer Stock during a Plan Year
		which is Deferred by a Participant under Section 4.4. 
	 

	 
		2.16 Employer Stock Election
		Form means the participation election
		form for Employer Stock as approved and prescribed by the Plan Administrator.
		
	 

	 
		2.17 Employer Stock
		Subaccount has the meaning described in
		Section 5.1. 
	 

	 
		2.18 ERISA means the Employee Retirement Income Security Act of
		1974, as amended from time to time. Reference to any section or subsection of
		ERISA includes reference to any comparable or succeeding provisions of any
		legislation which amends, supplements or replaces such section or subsection.
		
	 

	 
		2.19 Funds means, for purposes of Sections 5.2 and 7.9, investment
		funds designated from time to time by the Plan Administrator for the deemed
		investment of Accounts pursuant to Section 5.2. 
	 

	 
		2.20 Incentive
		Contribution means a discretionary
		additional contribution made by Employer as described in Section 4.3. 
	 

	 
		2.21 Insolvent means either (1) the Employer is unable to pay its
		debts as they become due or (2) Employer is subject to a pending proceeding as
		a debtor under the United States Bankruptcy Code. 
	 

	 
		 
	 

	 
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		2.22 Matching Deferral means a deferral for the benefit of a Participant as
		described in Section 4.2. A Matching Deferral may be made in cash, securities
		of the Employer or a combination thereof in ratios to be established from time
		to time by the Board or its Compensation Committee. 
	 

	 
		2.23 Matching Deferral
		Limitation means, with respect to
		Elective Deferrals of Compensation for any Plan Year made by any Participant,
		that portion of such Participant’s base salary during such Plan Year as is
		determined by the Board or its Compensation Committee. The Board or its
		Compensation Committee may change the Matching Deferral Limitation for any
		Participant or all Participants at any time, provided that the Matching
		Deferral Limitation applicable to Elective Deferrals of Compensation for any
		Plan Year made by any Participant may not be reduced unless the Plan
		Administrator has given written notice of such reduction to the Participant not
		less than 10 days prior to the commencement of such Plan Year. The foregoing
		shall not limit the Employer’s rights to decrease the salary or
		Compensation of, or terminate the employment of, any participant at any time,
		with or without cause and with or without prior notice, without regard to the
		effect such discharge would have on the Participant’s interest in the
		Plan. 
	 

	 
		2.24 Matching Deferral
		Rate means, with respect to Elective
		Deferrals of Compensation for any Plan Year made by any Participant, the rate
		established by the Board or its Compensation Committee. Such rate shall stay in
		place for subsequent Plan Years until changed by the Board or its Compensation
		Committee. The Compensation Committee may change the Matching Deferral Rate for
		any Participant or all Participants at any time, provided that the Matching
		Deferral Rate applicable to Elective Deferrals of Compensation for any Plan
		Year made by any Participant may not be reduced unless the Plan Administrator
		has given written notice of such reduction to the participant not less than 10
		days prior to the commencement of such Plan Year. 
	 

	 
		2.25 Participant means any individual who participates in the Plan in
		accordance with Article 3. 
	 

	 
		2.26 Plan means the BioFuel Energy, LLC Deferred Compensation
		Plan for Select Employees, as amended from time to time. 
	 

	 
		2.27 Plan Administrator means the person, persons, or entity designated by the
		Employer to administer the Plan and to serve as agent for the Employer with
		respect to the Trust. If no such person or entity is serving as Plan
		Administrator at any time, the Employer shall be Plan Administrator. 
	 

	 
		2.28 Plan Year means the 12-month period ending December 31. 
	 

	 
		 2.29 Retirement Age means the age of 65. No determination to increase the
		Retirement Age shall be effective with respect to amounts credited to the
		Account of a Participant with respect to Plan Years commencing prior to the
		time of such determination. 
	 

	 
		2.30 Separation from
		Service means separation from service
		with the Employer and all members of its controlled group, and shall be
		interpreted in accordance with Section 409A of the Code. 
	 

	 
		2.31 Specified Employee means, with respect to a corporation any stock of which
		is publicly traded on an established securities market or otherwise, an
		Eligible Employee who, at any time during the twelve (12) month period ending
		on the December 31 of a Plan Year, is a key employee of the Employer, as
		currently defined in Code section 416(i) (without regard to paragraph (5)
		thereof).
	 

	 
		2.32 Tax Gross-Up Payment means an additional payment to a Participant or his
		beneficiary paid in the circumstances described in Section 7.10 to compensate
		for taxes imposed by payment; the payment is determined by multiplying the
		amount of the payment by the fraction 1/1-MR, where MR is the sum of (1) the
		Participant’s (or the beneficiary’s) maximum income tax rate under
		section 1(a) of the Code as of the date of payment and (2) the rates of any
		other taxes imposed on the Participant (or the beneficiary) with respect to the
		payment. 
	 

	 
		2.33 Trust means the rabbi trust or trusts established by the
		Employer that identifies the Plan as a plan with respect to which assets are to
		be held by the Trustee. The Trust shall comply with the provisions of Section
		409A affecting the Trust. 
	 

	 
		2.34 Trustee means the trustee or trustees under the Trust. 
	 

	 
		 
	 

	 
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		2.35 Unforeseen Emergency means a severe financial hardship resulting from one or
		more of the following: 
	 

	 
		a. a sudden and unexpected illness or
		accident of the Participant or a dependent (as defined in Section 152(a) of the
		Code) of the Participant; 
	 

	 
		b. a loss of the Participant’s property
		due to casualty; or 
	 

	 
		c. other similar and extraordinary and
		unforeseeable circumstances arising as a result of events beyond the control of
		the Participant, as determined by the Board or its Compensation Committee.
		
	 

	 
		ARTICLE 3 – PARTICIPATION
		
	 

	 
		3.1 Commencement of Participation
		
	 

	 
		Any Eligible Employee who elects to defer
		part of his or her Compensation in accordance with Section 4.1 or 4.4 shall
		become a participant in the Plan as of the date such deferrals commence in
		accordance with Section 4.1 or 4.4. Any individual who is not already a
		Participant and whose account is credited with an Incentive Contribution shall
		become a Participant as of the date such amount is credited. 
	 

	 
		3.2 Continued Participation 
	 

	 
		A Participant in the Plan shall continue to
		be a Participant so long as any amount remains credited to his or her account.
		
	 

	 
		ARTICLE 4 – DEFERRALS AND INCENTIVE
		CONTRIBUTIONS 
	 

	 
		4.1 Elective Deferrals 
	 

	 
		Any Eligible Employee may elect to defer a
		percentage or dollar amount of Compensation earned for the next succeeding Plan
		Year, on such terms as the Plan Administrator may permit, by completing an
		Election Form and filing it with the Plan Administrator prior to the first day
		of such succeeding Plan Year (or any such earlier date as the Plan
		Administrator may prescribe), provided that an Eligible Employee who is a new
		employee of Employer may, by completing an Election Form and filing it with the
		Plan Administrator within 30 days after becoming an Eligible Employee
		(including upon initial adoption of this Plan), elect to defer a percentage or
		dollar amount of Compensation earned for the Plan Year in which such employment
		commences, on such terms as the Plan Administrator may permit, which are earned
		and payable to the Participant after the date on which the Eligible Employee
		files the Election Form. 
	 

	 
		An election to defer a percentage or dollar
		amount of Compensation for any Plan Year shall apply only to that Plan Year,
		unless the Participant elects otherwise on the Election Form. An election to
		defer cannot, however, be modified during a Plan Year. 
	 

	 
		A Participant’s Compensation shall be
		reduced in accordance with the Participant’s election hereunder and
		amounts deferred hereunder shall be paid by the Employer to the Trust as soon
		as administratively feasible and credited to the Participant’s Accounts as
		of the date the amounts are received by the Trustee. 
	 

	 
		4.2 Matching Deferrals 
	 

	 
		After each payroll period, the Employer
		shall contribute to the Trust any Matching Deferrals approved by the Board or
		its Compensation Committee from time to time equal to the Matching Deferral
		Rate multiplied by the amount of the Elective Deferrals credited to the
		Participants’ Accounts for such period under Section 4.1. Each Matching
		Deferral will be credited as of the date it is received by the Trustee pro rata
		in accordance with the amount of Elective Deferrals of each Participant which
		are taken into account in calculating the Matching Deferral. The amount of
		Matching Contributions credited to the Account of any Participant with respect
		to Elective Deferrals of Compensation for any Plan Year may not exceed the
		Matching Deferral Limitation applicable to that Participant for such Plan Year.
		
	 

	 
		 
	 

	 
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		Notwithstanding the foregoing or anything in
		Section 7.1, to the extent permitted under applicable laws and regulations, if
		the amount of “Employee Deferral Contribution” (as defined in the
		Employer’s 401(k) Plan) made by a Participant during a Plan Year is less
		than the maximum amount of Employee Elective Deferrals the Participant is
		permitted to make to the Employer’s 401(k) Plan (after taking into account
		the employer’s contribution allocated to the Participant’s account
		and any limitations imposed by the 401(k) Plan or the Code), all Matching
		Deferrals, and any income and gain thereon, credited to the Account of the
		Participant with respect to Elective Deferrals of Compensation for such Plan
		Year shall be forfeited and applied as provided in Section 7.7, unless the Plan
		Administrator, in its sole discretion determines that the failure to contribute
		such maximum amount to the Employer’s 401(k) Plan is the result of an
		administrative error by the Employer or other reasons beyond the Control of the
		Participant. 
	 

	 
		4.3 Incentive Contributions 
	 

	 
		In addition to other contributions provided
		for under the Plan, the Employer may, in its sole discretion, select one or
		more Eligible Employees to receive an Incentive Contribution to his or her
		account on such terms as the Employer shall specify at the time it makes the
		contribution. For example, the Employer may contribute an amount to the
		Participant’s Account and condition the payment of such amount and accrued
		earnings thereon upon the Participant’s remaining employed by the Employer
		for an additional specified period of time. The terms specified by the Employer
		shall supersede any other provision of this Plan as regards Incentive
		Contributions and earnings with respect thereto, provided that if the Employer
		does not specify (a) the terms on which such Incentive Contribution will vest,
		the Incentive Contribution and earnings thereon will vest in the same manner as
		Matching Deferrals or (b) a method of distribution, the Incentive Contribution
		and earnings thereon will be distributed in a manner consistent with the
		election last made by the Participant prior to the Plan Year in which the
		Incentive Contribution is made. The Employer, in its discretion, may permit the
		Participant to designate a distribution schedule for a particular Incentive
		Contribution provided the designation is made before the Employer finally
		determines that the Participant will receive the Incentive Contribution and
		provided such designation complies with the distribution election timing
		provisions of Section 409A, to the extent applicable. 
	 

	 
		4.4 Employer Stock Deferral 
	 

	 
		At the discretion of the Board or its
		Compensation Committee and only following the initial public offering of
		Employer Stock by Employer, an Eligible Employee may elect to defer a
		percentage or number of shares of a grant of Employer Stock, on such terms as
		the Plan Administrator may permit, by completing an Employer Stock Election
		Form and filing it with the Plan Administrator prior to the year in which the
		grant of Employer Stock is earned.
	 

	 
		Any election to defer a percentage or number
		of shares of Employer Stock shall apply only to that grant of Employer Stock,
		unless the Participant elects otherwise on the Employer Stock Election Form.
		Any such deferral shall be entered by the Plan Administrator as credited to the
		Employer Stock Subaccount for that Participant. 
	 

	 
		ARTICLE 5 – ACCOUNTS 
	 

	 
		5.1 Accounts 
	 

	 
		The Plan Administrator shall establish an
		Account for each Participant reflecting Elective Deferrals, Matching Deferrals,
		Incentive Contributions, and Employer Stock Deferrals made for the
		Participant’s benefit together with any adjustments in income, gain or
		loss and any payments from the Account. The Plan Administrator may establish
		sub-accounts for each Participant that has more than one election in effect
		under Section 7.1 and such other subaccounts as are necessary for the proper
		administration of the Plan; provided,
		however, each Participant that has deferred Employer Stock
		shall be deferred into one or more separate subaccounts (where each subaccount
		shall be an “Employer Stock Subaccount”). As of the last business day
		of each calendar quarter, the Plan Administrator shall provide the Participant
		with a statement of his or her Account reflecting the income, gains and losses
		(realized and unrealized), amounts of deferrals and distributions of such
		Account since the prior statement. 
	 

	 
		 
	 

	 
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		5.2 Investments 
	 

	 
		a. Each Participant shall designate, in
		accordance with the procedures established from time to time by the Plan
		Administrator, the manner in which the amounts allocated to his or her Account
		shall be deemed to be invested from among the Funds made available from time to
		time for such purpose by the Plan Administrator. Such Participant may designate
		one of such Funds for the deemed investment of all the amounts allocated to his
		or her account or such Participant may split the deemed investment of the
		amounts allocated to his or her Account between such Funds in such increments
		as the Plan Administrator may prescribe. If a Participant fails to make a
		proper designation, then his or her Account shall be deemed to be invested in
		the Fund or Funds designated by the Plan Administrator from time to time in a
		uniform and nondiscriminatory manner. 
	 

	 
		b. A Participant may change his or her
		deemed investment designation for future amounts to be allocated to such
		Participant’s Account. Any such change shall be made in accordance with
		the procedures established by the Plan Administrator, and the frequency of such
		changes may be limited by the Plan Administrator. 
	 

	 
		c. A Participant may elect to convert his or
		her deemed investment designation with respect to the amounts already allocated
		to such Participant’s Account. Any such conversion shall be made in
		accordance with the procedures established by the Plan Administrator, and the
		frequency of such conversions may be limited by the Plan Administrator. 

	 

	 
		d. The preceding provisions of this Section
		5.2 notwithstanding, the Plan Administrator may, in its sole discretion, permit
		a Participant to designate that all or a portion of his or her Account (with
		such portion to be determined by the Plan Administrator) shall be deemed to be
		invested in assets other than the Funds including, but not limited to,
		securities issued by the Employer; provided,
		however, that in no event may a Participant designate to have
		any portion of the Employer Stock Subaccount which has not yet become vested
		allocated to any other fund or assets. If a portion of a Participant’s
		Account is deemed to be invested in a Deemed Asset, then such Participant may
		at any time request, in accordance with the procedures prescribed by the Plan
		Administrator, that such deemed investment in such Deemed Asset be converted
		into a deemed investment in one or more of the Funds; provided, however, that
		if the Deemed Asset is an asset actually held by the Trust at the time such
		conversion request is made, then such conversion shall be permitted only at the
		times and to the extent that such Deemed Asset may be sold or otherwise
		disposed of by the Trustee in compliance with all applicable laws. The Accounts
		that are deemed to be invested in a Deemed Asset shall be reduced by the
		aggregate amount of the costs and expenses incurred by the Plan, the Employer,
		the Plan Administrator, the Trust, and/or the Trustee in connection with such
		Deemed Asset, including, without limitation, the costs and expenses associated
		with the acquisition, maintenance, and sale or exchange of such Deemed Asset.
		
	 

	 
		e. The Plan Administrator shall forward to
		the Record Keeper all designations and changes thereto made by any Participant
		with respect to the manner in which the amounts allocated to his or her Account
		shall be deemed to be invested from among the Funds or in a Deemed Asset. All
		assets of the Trust shall be invested in the Funds or Deemed Assets as directed
		by the Plan Administrator, on behalf of the Participant, in the Plan
		Administrator’s sole discretion. 
	 

	 
		f. All deemed investments under the Plan
		shall be valued at the times and in the manner determined by the Trustee in its
		sole discretion. None of the Plan, the Employer, the Plan Administrator, the
		Trust, or the Trustee shall be responsible or liable for any loss resulting
		from (1) a Participant’s exercise of any control or discretion over the
		deemed investment or his or her Account and/or (2) any actions taken by the
		Plan Administrator and the Trustee pursuant to this Section 5.2. 
	 

	 
		ARTICLE 6 – VESTING 
	 

	 
		6.1 General 
	 

	 
		A Participant shall immediately vest in
		(i.e., shall have a nonforfeitable right to) all Elective Deferrals, and to all
		income and gain attributable thereto, credited to his or her Account. Subject
		to earlier vesting in
	 

	 
		 
	 

	 
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		accordance with this Article 6, a
		Participant shall become vested in the portion of his or her Account
		attributable to Matching Deferrals made with respect to Elective Deferrals of
		Compensation for a given Plan Year as follows: 
	 

	 
		(a) 33-1/3% at the end of the Plan Year with
		respect to which the Matching Deferrals are made; 
	 

	 
		(b) 33-1/3% at the end of the first Plan
		Year following the Plan Year with respect to which the Matching Deferrals are
		made; and 
	 

	 
		(c) 33-1/3% at the end of the second Plan
		Year following the Plan Year with respect to which the Matching Deferrals are
		made. 
	 

	 
		Any portion of a Participant’s Account
		that has not vested on the date that a Participant’s employment with
		Employer terminates shall, except as provided in this Article 6, be forfeited
		and applied as provided in Section 7.7. 
	 

	 
		6.2 Employer Stock Subaccounts
		
	 

	 
		a. If the Plan Administrator, in its sole
		discretion, permits a Participant to designate all or a portion of his or her
		Account to be deemed to be invested in securities of the Employer pursuant to
		Section 5.2 of this Plan, such securities in the Employer Stock Subaccount will
		be subject to the terms of this Plan that are applicable to the Funds and
		Deemed Assets for the calendar year applicable thereto. 
	 

	 
		b. For any deferral of securities of the
		Employer made by a Participant pursuant to Section 4.4 of this Plan, such
		securities will vest on such terms as the Plan Administrator may permit.
		
	 

	 
		c. If all or any portion of the Matching
		Deferrals made pursuant to Section 4.2 consists of securities of the Employer,
		that Employer Stock Subaccount will become vested pursuant to the terms of
		Section 6.1. 
	 

	 
		6.3 Change of Control 
	 

	 
		A Participant shall become fully vested in
		his or her account, and the Employer Stock Subaccount, if any, immediately
		prior to a Change of Control of the Employer. 
	 

	 
		6.4 Death, Retirement or Disability
		
	 

	 
		A Participant shall become fully vested in
		his or her Account (including the Employer Stock Subaccount) immediately prior
		to termination of the Participant’s employment by reason of
		Participant’s death, retirement at or after the attainment of the
		Retirement Age or Disability. Whether a Participant’s termination of
		employment is by reason of Participant’s Disability or retirement shall be
		determined by the Plan Administrator in its sole discretion. 
	 

	 
		6.5 Discretionary Vesting 
	 

	 
		The Employer may, in its sole discretion,
		accelerate the vesting of all or any portion of the Accounts, and/or the
		Employer Stock Subaccounts, of any Participant or all Participants. 
	 

	 
		6.6 Insolvency 
	 

	 
		A Participant shall become fully vested in
		his or her Account immediately prior to the Employer’s becoming Insolvent,
		in which case the Participant will have the same rights as a general creditor
		of the Employer with respect to his or her Account Balance. This Section 6.6
		shall apply only to the extent permitted by Section 409A of the Code. 
	 

	 
		 
	 

	 
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		ARTICLE 7 – PAYMENTS 
	 

	 
		7.1 Election as to Time and Form of
		Payment 
	 

	 
		Time of Payment. A Participant shall upon his or her commencement of
		participation in the Plan elect the date or age at which the Elective Deferrals
		and vested Matching Deferrals (including any earnings attributable thereto)
		will commence to be paid to the Participant. If a Participant does not indicate
		a time of payment upon his or her commencement of participation in the Plan,
		the Participant shall be deemed to have elected to have payment commence as of
		the month following the Participant’s attainment of Retirement Age.
		
	 

	 
		In the case of amounts paid to Specified
		Employees due to the Specified Employee’s Separation from Service, payment
		shall not commence until six months after the Specified Employee’s
		Separation from Service for reasons other than death or Disability to the
		extent required by Section 409A. 
	 

	 
		Form of Payment. The Participant shall also elect thereon for payments to
		be paid in either: 
	 

	 
		a. a single lump-sum payment; or 
	 

	 
		b. annual or monthly installments over a
		period elected by the Participant up to 10 years, the amount of each
		installment to equal the balance of his or her Account immediately prior to the
		installment divided by the number of installments remaining to be paid. 

	 

	 
		Subsequent Elections. Each such election will be effective for the Plan Year
		for which it is made and succeeding Plan Years, unless changed by the
		Participant in accordance with the terms of the Plan and in accordance with
		Section 409A. 
	 

	 
		A Participant may change the date and form
		of payment by filing with the Plan Administrator a new form specifying a new
		date of commencement and/or form of benefit, provided
		that the request is made at least 12 months prior to the
		date that would have been the payment or commencement of payment date for the
		deferral election and the change must delay the payment or commencement of
		payment by at least five years. In no case will a Participant be permitted to
		accelerate the payment of benefits under the Plan, except as permitted by
		regulations under Section 409A. A change to the date or form will not take
		effect until at least 12 months after it is made. 
	 

	 
		7.2 Termination of Employment/Separation
		from Service 
	 

	 
		A Participant shall have the right to elect
		at the commencement of participation that upon the Participant’s
		Separation from Service for any reason other than death, Disability and
		retirement after attainment of the Retirement Age, the vested portion of the
		Participant’s Account shall be paid to the Participant in a single lump
		sum as soon as practicable following the date of such termination, except that,
		to the extent required by Section 409A, payment to Specified Employees shall
		not commence until six months after the Specified Employee’s Separation
		From Service. Any change to such election must be made in accordance with
		Section 409A. If a Participant shall not have made such election to receive a
		lump sum payment under this Section, then the Plan Administrator shall not pay
		the vested portion of such Participant’s Account in a single lump sum but
		shall pay out such amount in accordance with the Participant’s election
		made in under Section 7.1. 
	 

	 
		7.3 Disability 
	 

	 
		If the Participant’s employment
		terminates by the reason of the Participant’s Disability, the amounts
		credited to a Participant’s Account with respect to any Plan Year shall be
		paid out in accordance with the election made in accordance with Section 7.1
		unless the Participant shall have elected in such Election Form to receive
		payment of the remaining balance of such amounts in one lump sum if his or her
		employment terminates by reason of Disability. 
	 

	 
		 
	 

	 
		8
	 

	 
		 
	 

	 
 

	 
		7.4 Death 
	 

	 
		If a Participant dies prior to the complete
		distribution of his or her Account, the balance of the Account shall be paid as
		soon as practicable to the Participant’s designated beneficiary or
		beneficiaries, in the form elected by the Participant under either of the
		following options: 
	 

	 
		a. a single lump-sum payment; or 
	 

	 
		b. annual or monthly installments over a
		period elected by the Participant up to 10 years, the amount of each
		installment to equal the balance of the Account immediately prior to the
		installment divided by the number of installments remaining to be paid. 

	 

	 
		Beneficiary. Any designation of beneficiary and form of payment to
		such beneficiary shall be made by the Participant on an Election Form filed
		with the Plan Administrator and may be changed by the Participant at any time
		by filing another Election Form containing the revised instructions. If no
		beneficiary is designated or no designated beneficiary survives the
		Participant, payment shall be made to the Participant’s surviving spouse
		or, if none, to his or her issue per stirpes, in a single payment. If no spouse
		or issue survives the Participant, payment shall be made in a single lump sum
		to the Participant’s estate. 
	 

	 
		7.5 Unforeseen Emergency 
	 

	 
		If a Participant suffers an Unforeseen
		Emergency, the Plan Administrator, in its sole discretion and subject to
		Section 409A, may pay to the Participant only that portion, if any, of the
		vested portion of his or her Account which the Plan Administrator determines is
		necessary to satisfy the emergency need (including any amounts necessary to pay
		any federal, state or local income taxes reasonably anticipated to result from
		the distribution) after taking into account reimbursement from insurance and
		liquidation of the participant’s available assets. A Participant
		requesting an emergency payment shall apply for the payment in writing in a
		form approved by the Plan Administrator and shall provide such additional
		information as the Plan Administrator may require. 
	 

	 
		7.6 In-Service Withdrawals 
	 

	 
		In-service withdrawals are not permitted
		except to the extent provided in Sections 7.1 or 7.5. 
	 

	 
		7.7 Forfeiture of Non-vested Amounts
		
	 

	 
		To the extent that any amounts credited to a
		Participant’s Account are not vested at the time such amounts are
		otherwise payable under Section 7.1, such amounts shall be forfeited and shall,
		at the option of the Employer, either be paid to the Employer or used to
		satisfy the Employer’s obligation to make contributions to the Trust under
		the Plan. 
	 

	 
		7.8 Taxes 
	 

	 
		All federal or state taxes that the Plan
		Administrator determines are required to be withheld from any payments made
		pursuant to this Article 7 shall be withheld. If a Participant is assessed
		federal, state or local income taxes by reason of, and computed on the basis
		of, his or her undistributed deferred Compensation or undistributed interest
		accrued on his or her Account, the Participant shall notify the Plan
		Administrator in writing of such assessment and there shall be distributed from
		the Participant’s Account deferred Compensation or accrued interest in an
		amount equal to such tax assessment, together with any interest due and
		penalties assessed thereupon within 30 days following such notice; provided
		however, that if the Plan Administrator determines that such assessment is
		improper, it may request that the Participant contest the assessment, at the
		expense of the Employer (which expense shall include all costs of appeal and
		litigation, including legal and accounting fees, and any additional interest
		and penalties assessed on the deficiency from and after the date of the
		Participant’s notice to the Plan Administrator); and during the period
		such contest is pending, the sums otherwise distributable pursuant to this
		Article 7 shall not be distributed. Distributions under this Section 7.8 shall
		be made only to the extent permitted by Section 409A of the Code. 
	 

	 
		 
	 

	 
		9
	 

	 
		 
	 

	 
 

	 
		7.9 Form of Distributions (Cash or
		In-Kind or Both) 
	 

	 
		The Plan Administrator shall determine in
		its sole discretion the extent to which any distribution under the Plan
		(whether payable in a single lump sum or installments) shall be paid in cash,
		in kind, or both in cash and in kind. Without limiting the scope of the Plan
		Administrator’s discretion pursuant to the preceding sentence, the Plan
		Administrator may in its sole discretion direct that all or any portion of a
		Participant’s Account be distributed in kind to such Participant’s
		designated beneficiaries based upon the Funds and/or assets in which such
		Account is deemed to be invested pursuant to Section 5.2 immediately prior to
		the date of such distribution. No Participant or beneficiary of a Participant
		shall have the right to demand a distribution in cash, in kind, or any
		combination thereof. 
	 

	 
		7.10 Tax Gross-Up Payments 
	 

	 
		If, as a result of (a) a Participant’s
		termination of employment other than for cause in connection with or at any
		time following a Change of Control, (b) the Employer’s amendment of the
		Plan in connection with or at any time following a Change of Control or (c) the
		Employer’s termination of the Plan pursuant to Section 9.2 in connection
		with or at any time following a Change of Control, all or a portion of a
		Participant’s Account is paid prior to the date the Participant had
		otherwise elected for such payment under the Plan without the consent of such
		Participant (or his beneficiary), the Employer shall pay an additional payment
		a Tax Gross-up Payment to the Participant (or his beneficiary) to compensate
		such Participant (or his beneficiary) for the taxes imposed with respect to the
		payment. As used in this Section, the term ‘cause’ shall mean the
		Participant’s gross negligence or willful misconduct in performance of the
		duties of the Participant’s employment, or the Participant’s final
		conviction of a felony or of a misdemeanor involving moral turpitude. Nothing
		in this Section shall be construed as permitting the Employer to accelerate a
		distribution election in violation of Section 409A of the Code.
	 

	 
		ARTICLE 8 – ADMINISTRATIVE
		PROCEDURES AND DISPUTE RESOLUTION 
	 

	 
		8.1 Administrative Authority 
	 

	 
		The Plan Administrator shall have
		discretionary authority to perform all functions necessary or appropriate to
		the operation of the Plan, including without limitation authority to (a)
		construe and interpret the provisions of the Plan document and any related
		instrument and determine any question arising under the Plan document or
		related instrument, or in connection with the administration or operation
		thereof; (b) determine in its sole discretion all facts and relevant
		considerations affecting the eligibility of any Employee or Director to be or
		become a Participant; (c) decide eligibility for, and the amount of, benefits
		for any Participant or beneficiary; (d) authorize and direct all disbursements
		under the Plan; and (e) employ and engage such persons, counsel and agents to
		obtain such administrative, clerical, medical, legal, audit and actuarial
		services as it may deem necessary in carrying out the provisions of the Plan.
		The Employer shall be the “administrator” as defined in Section
		3(16)(A) of ERISA for purposes of the reporting and disclosure requirements of
		ERISA and the Code. 
	 

	 
		8.2 Expenses 
	 

	 
		Except as shall be specifically provided
		otherwise herein, all reasonable expenses that are necessary to operate and
		administer the Plan shall be paid directly by the Employer. Such costs shall
		include fees or expenses arising from the retention of any attorneys,
		accountants, actuaries, consultants or recordkeepers required by the Plan
		Administrator to discharge its duties under the Plan. Nothing herein shall
		require the Employer to pay or reimburse any person for any cost, liability,
		loss, fee or expense incurred by such person in any dispute with the Employer;
		nor may any person reimburse himself, herself or itself from any Plan
		contributions or from the principal or income of investment or funding vehicle
		for the Plan for any such cost, liability, loss, fee or expense. 
	 

	 
		8.3 Insurance 
	 

	 
		 The Employer may, but need not, obtain liability
		insurance to protect its directors, officers, employees or representatives
		against loss in the discharge of their responsibility in the operation of the
		Plan. 
	 

	 
		 
	 

	 
		10
	 

	 
		 
	 

	 
 

	 
		8.4 Claims Procedure 
	 

	 
		 This Section 8.4 is based on final regulations issued by
		the Department of Labor and published in the Federal Register on November 21,
		2000 and codified at 29 C.F.R. section 2560.503-1. If any provision of this
		Section conflicts with the requirements of those regulations, the requirements
		of those regulations will prevail.
	 

	 
		For purposes of this Section, references to
		disability benefit claims are intended to describe claims made by Participants
		for benefits payable on account of the Participant’s Disability. 
	 

	 
		(a) Initial Claim. A
		Participant or Beneficiary who believes he or she is entitled to any Benefit (a
		“Claimant”) under this Plan may file a claim with the administrator
		under this Section 8.4 (the “Administrator”). The Administrator will
		review the claim itself or appoint another individual or entity to review the
		claim. 
	 

	 
		(i) Benefit Claims that do not Require a Determination of
		Disability. If the claim is for a
		benefit other than a disability benefit, the Claimant will be notified within
		ninety days after the claim is filed whether the claim is allowed or denied,
		unless the Claimant receives written notice from the Administrator or appointee
		of the Administrator before the end of the ninety day period stating that
		special circumstances require an extension of the time for decision, such
		extension not to extend beyond the day which is one hundred eighty days after
		the day the claim is filed.
	 

	 
		(ii) Disability Benefit Claims. In the case of a benefits claim that requires a
		determination by the Plan Administrator of a Participant’s disability
		status, the Plan Administrator will notify the Claimant of the Plan’s
		adverse benefit determination within a reasonable period of time, but not later
		than forty-five days after receipt of the claim. If, due to matters beyond the
		control of the Plan, the Plan Administrator needs additional time to process a
		claim, the Claimant will be notified, within forty-five days after the Plan
		Administrator receives the claim, of those circumstances and of when the Plan
		Administrator expects to make its decision but not beyond seventy-five days.
		If, prior to the end of the extension period, due to matters beyond the control
		of the Plan, a decision cannot be rendered within that extension period, the
		period for making the determination may be extended for up to one hundred five
		days, provided that the Plan Administrator notifies the Claimant of the
		circumstances requiring the extension and the date as of which the Plan expects
		to render a decision. The extension notice will specifically explain the
		standards on which entitlement to a disability benefit is based, the unresolved
		issues that prevent a decision on the claim and the additional information
		needed from the Claimant to resolve those issues, and the Claimant will be
		afforded at least forty-five days within which to provide the specified
		information.
	 

	 
		(iii) Manner and Content of Denial of Initial
		Claims. If the Plan Administrator
		denies a claim, it must provide to the Claimant, in writing or by electronic
		communication:
	 

	 
		(A) The specific reasons for the
		denial;
	 

	 
		(B) A reference to the Plan provision upon
		which the denial is based;
	 

	 
		(C) A description of any additional
		information or material that the Claimant must provide in order to perfect the
		claim;
	 

	 
		(D) An explanation of why such additional
		material or information is necessary; 
	 

	 
		(E) Notice that the Claimant has a right to
		request a review of the claim denial and information on the steps to be taken
		if the Claimant wishes to request a review of the claim denial; and
	 

	 
		(F) A statement of the participant’s
		right to bring a civil action under ERISA section 502(a) following a denial on
		review of the initial denial.
	 

	 
		 
	 

	 
		11
	 

	 
		 
	 

	 
 

	 
		In addition, in the case of a denial of
		disability benefits on the basis of the Plan Administrator’s independent
		determination of the Participant’s disability status, the Plan
		Administrator will provide a copy of any rule, guideline, protocol, or other
		similar criterion relied upon in making the adverse determination (or a
		statement that the same will be provided upon request by the Claimant and
		without charge).
	 

	 
		(b) Review Procedures.
	 

	 
		(i) Benefit Claims that do not Require a Determination of
		Disability. Except for claims requiring
		an independent determination of a Participant’s disability status, a
		request for review of a denied claim must be made in writing to the Plan
		Administrator within sixty days after receiving notice of denial. The decision
		upon review will be made within sixty days after the Plan Administrator’s
		receipt of a request for review, unless special circumstances require an
		extension of time for processing, in which case a decision will be rendered not
		later than one hundred twenty days after receipt of a request for review. A
		notice of such an extension must be provided to the Claimant within the initial
		sixty day period and must explain the special circumstances and provide an
		expected date of decision.
	 

	 
		The reviewer will afford the Claimant an
		opportunity to review and receive, without charge, all relevant documents,
		information and records and to submit issues and comments in writing to the
		Plan Administrator. The reviewer will take into account all comments,
		documents, records and other information submitted by the Claimant relating to
		the claim regardless of whether the information was submitted or considered in
		the initial benefit determination.
	 

	 
		(ii) Disability Benefit Claims. In addition to having the right to review documents
		and submit comments as described in (i) above, a Claimant whose claim for
		disability benefits requires an independent determination by the Plan
		Administrator of the Participant’s disability status has at least one
		hundred eighty days following receipt of a notification of an adverse benefit
		determination within which to request a review of the initial determination. In
		such cases, the review will meet the following requirements:
	 

	 
		(A) The Plan will provide a review that does
		not afford deference to the initial adverse benefit determination and that is
		conducted by an appropriate named fiduciary of the Plan who did not make the
		initial determination that is the subject of the appeal, nor is a subordinate
		of the individual who made the determination. 
	 

	 
		(B) The appropriate named fiduciary of the
		Plan will consult with a health care professional who has appropriate training
		and experience in the field of medicine involved in the medical judgment before
		making a decision on review of any adverse initial determination based in whole
		or in part on a medical judgment. The professional engaged for purposes of a
		consultation in the preceding sentence will not be an individual who was
		consulted in connection with the initial determination that is the subject of
		the appeal or the subordinate of any such individual.
	 

	 
		(C) The Plan will identify to the Claimant
		the medical or vocational experts whose advice was obtained on behalf of the
		Plan in connection with the review, without regard to whether the advice was
		relied upon in making the benefit review determination.
	 

	 
		(D) The decision on review will be made
		within forty-five days after the Plan Administrator’s receipt of a request
		for review, unless special circumstances require an extension of time for
		processing, in which case a decision will be rendered not later than ninety
		days after receipt of a request for review. A notice of such an extension must
		be provided to the Claimant within the initial forty-five day period and must
		explain the special circumstances and provide an expected date of decision.
		
	 

	 
		(iii) Manner and Content of Notice of Decision on
		Review. Upon completion of its review
		of an adverse initial claim determination, the Plan Administrator will give the
		Claimant, in writing or by electronic notification, a notice containing:

	 

	 
		 
	 

	 
		12
	 

	 
		 
	 

	 
 

	 
		(A) its decision;
	 

	 
		(B) the specific reasons for the
		decision;
	 

	 
		(C) the relevant Plan provisions or
		insurance contract provisions on which its decision is based; 
	 

	 
		(D) a statement that the Claimant is
		entitled to receive, upon request and without charge, reasonable access to, and
		copies of, all documents, records and other information in the Plan’s
		files which is relevant to the Claimant’s claim for benefits;
	 

	 
		1. a statement describing the
		Claimant’s right to bring an action for judicial review under ERISA
		section 502(a); and
	 

	 
		2. if an internal rule, guideline, protocol
		or other similar criterion was relied upon in making the adverse determination
		on review, a statement that a copy of the rule, guideline, protocol or other
		similar criterion will be provided without charge to the Claimant upon request.
		
	 

	 
		(c) Calculation of Time Periods. For purposes of the time periods specified in this
		Section, the period of time during which a benefit determination is required to
		be made begins at the time a claim is filed in accordance with the Plan
		procedures without regard to whether all the information necessary to make a
		decision accompanies the claim. If a period of time is extended due to a
		Claimant’s failure to submit all information necessary, the period for
		making the determination will be tolled from the date the notification is sent
		to the Claimant until the date the Claimant responds. 
	 

	 
		(d) Failure of Plan to Follow Procedures. If the Plan fails to follow the claims procedures
		required by this Section, a Claimant will be deemed to have exhausted the
		administrative remedies available under the Plan and will be entitled to pursue
		any available remedy under ERISA section 502(a) on the basis that the Plan has
		failed to provide a reasonable claims procedure that would yield a decision on
		the merits of the claim.
	 

	 
		8.5 Notices 
	 

	 
		Any notice from the Plan Administrator to an
		Employee, Participant or beneficiary regarding this Plan may be addressed to
		the last known residence of said person as indicated in the records of the
		Employer. Any notice to, or any service of process upon, the Employer or the
		Plan Administrator with respect to this Plan may be addressed as follows:
		
	 

	 
		PLAN ADMINISTRATOR – 
	 

	 
		DEFERRED COMPENSATION PLAN
	 

	 
		BioFuel Energy, LLC 
	 

	 
		1801 Broadway, Suite 1060 
	 

	 
		Denver, Colorado 80202 
	 

	 
		8.6 Indemnification 
	 

	 
		To the extent permitted by law, the Employer
		shall, and hereby does, indemnify and hold harmless any director, officer or
		employee of the Employer who is or may be deemed to be responsible for the
		operation of the Plan, from and against any and all losses, claims, damages, or
		liabilities (including attorneys’ fees and amounts paid, with the approval
		of the Board, in settlement of any claim) arising out of or resulting from a
		duty, act, omission or decision with respect to the Plan, so long as such duty,
		act, omission, or decision does not involve gross negligence or willful
		misconduct on the part of such director, officer or employee. Any individual so
		indemnified shall, within 30 days after receipt of notice of any action, suit
		or proceeding, notify the Employer and offer in writing to the Employer the
		opportunity, at the Employer’s expense, to handle and defend such action,
		suit or proceeding, and the Employer shall have the right, but not the
		obligation, to conduct the defense in any such action, suit or proceeding. Any
		individual’s failure to give the Employer such notice and opportunity
		shall relieve the Employer of any liability to said individual under this
		Section 8.6. The Employer may satisfy its obligations under this provision (in
		whole or in part)
	 

	 
		 
	 

	 
		13
	 

	 
		 
	 

	 
 

	 
		by the purchase of insurance. Any payment by
		an insurance carrier to or on behalf of such individual shall, to the extent of
		such payment, discharge any obligation of the Employer to the individual under
		this indemnification. 
	 

	 
		ARTICLE 9 – AMENDMENT AND
		TERMINATION 
	 

	 
		9.1 Amendments 
	 

	 
		The Employer, upon action of the Board or
		its Compensation Committee, shall have the right to amend the Plan from time to
		time, subject to Section 9.3, by an instrument in writing which has been
		executed on the Employer’s behalf by its duly authorized officer. 
	 

	 
		9.2 Termination of Plan 
	 

	 
		This Plan is strictly a voluntary
		undertaking on the part of the Employer and shall not be deemed to constitute a
		contract between the Employer and any Eligible Employee (or any other employee)
		or a consideration for, or an inducement or condition of employment for, the
		performance of the services by any Eligible Employee (or other employee). The
		Employer reserves the right to terminate the plan at any time, subject to the
		approval of the Board and Section 9.3, by an instrument in writing which has
		been executed on the Employer’s behalf by its duly authorized officer.
		Upon termination, the Employer may (a) elect to continue to maintain the Trust
		to pay benefits hereunder as they become due as if the Plan had not terminated
		or (b) direct the Trustee to pay promptly to Participants (or their
		beneficiaries) the vested balance of their Accounts. For purposes of the
		preceding sentence, in the event the Employer chooses to implement clause (b),
		the Account balances of all Participants who are in the employ of the Employer
		at the time the Trustee is directed to pay such balances shall become fully
		vested and nonforfeitable. After Participants and their beneficiaries are paid
		all Plan benefits to which they are entitled, all remaining assets of the Trust
		attributable to Participants who terminated employment with the Employer prior
		to termination of the Plan who were not fully vested in their Accounts under
		Article 6 at this time, shall be returned to their Employer. Notwithstanding
		the foregoing, distributions at the time of the termination of the Plan shall
		be permitted only to the extent permitted under Section 409A. 
	 

	 
		9.3 Existing Rights 
	 

	 
		No amendment or termination of the Plan
		shall adversely affect the rights of any Participant with respect to amounts
		that have been credited to his or her Account prior to the date of such
		amendment or termination. In addition, no amendment, modification or
		termination of the Plan made subsequent to a Change of Control will, without
		consent of the Participant or beneficiary, affect the right of a Participant or
		beneficiary with respect to his or her Account as of the day prior to the date
		of the amendment, modification or termination. Such Account will continue to be
		subject to and governed by the terms of the Plan as set forth in the Plan
		document on the day prior to the date of the amendment, modification or
		termination. In addition, subsequent to a Change of Control, no change may be
		made to the investment options that were available to Participants and
		beneficiaries under Section 5.2 of the Plan on the day prior to the Change of
		Control, unless consent of the Participants and beneficiaries holding at least
		two-thirds of the total value of the then current account balances has been
		obtained. Notwithstanding the foregoing, subsequent to a Change of Control, the
		Employer may distribute the entire value of all Accounts in lump sum payments
		to all Participants and beneficiaries, in accordance with and subject to
		compliance of Section 7.10. 
	 

	 
		ARTICLE 10 – MISCELLANEOUS
		
	 

	 
		10.1 No Funding 
	 

	 
		The Plan constitutes a mere promise by the
		Employer to make payments in accordance with the terms of the Plan and
		Participants and beneficiaries shall have the status of general unsecured
		creditors of the Employer. Nothing in the Plan will be construed to give any
		employee or any other person rights to any specific assets of the Employer or
		of any other person. In all events, it is the intent of the Employer that the
		Plan be treated as unfunded for tax purposes and for purposes of Title I of
		ERISA. 
	 

	 
		 
	 

	 
		14
	 

	 
		 
	 

	 
 

	 
		10.2 Non-assignability 
	 

	 
		None of the benefits, payments, proceeds or
		claims of any Participant or beneficiary shall be subject to any claim of any
		creditor of any Participant or beneficiary and, in particular, the same shall
		not be subject to attachment or garnishment or other legal process by any
		creditor of such Participant or beneficiary, nor shall any Participant or
		beneficiary have any right to alienate, anticipate, commute, pledge, encumber
		or assign any of the benefits or payments or proceeds which he or she may
		expect to receive, contingently or otherwise, under the Plan. 
	 

	 
		10.3 Limitation of Participants’
		Rights 
	 

	 
		Nothing contained in the Plan shall confer
		upon any person a right to be employed or to continue in the employ of the
		Employer, or interfere in any way with the right of the Employer to terminate
		the employment of a participant in the Plan any time, with or without cause.
		
	 

	 
		10.4 Participants Bound 
	 

	 
		Any action with respect to the Plan taken by
		the Plan Administrator or the Employer or the Trustee or any action authorized
		by or taken at the direction of the Plan Administrator, the Employer or the
		Trustee shall be conclusive upon all Participants and beneficiaries entitled to
		benefits under the Plan. 
	 

	 
		10.5 Receipt and Release 
	 

	 
		Any payment to any Participant or
		beneficiary in accordance with the provisions of the Plan shall, to the extent
		thereof, be in full satisfaction of all claims against the Employer, the Plan
		Administrator and the Trustee under the Plan, and the Plan Administrator may
		require such Participant or beneficiary, as a condition precedent to such
		payment, to execute a receipt and release to such effect. If any Participant or
		beneficiary is determined by the Plan Administrator to be incompetent by reason
		or physical or mental disability (including minority) to give a valid receipt
		and release, the Plan Administrator may cause the payment or payments becoming
		due to such person to be made to another person for his or her benefit without
		responsibility on the part of the Plan Administrator, the Employer or the
		Trustee to follow the application of such funds. 
	 

	 
		10.6 Plan Does Not Affect Employment
		Rights 
	 

	 
		The Plan does not provide any employment
		rights to any Eligible Employee or Participant. The Employer expressly reserves
		the right to discharge an Employee or to increase or decrease the salary or
		Compensation of an Employee at any time, with or without cause and with or
		without prior notice, without regard to the effect such discharge would have on
		the Employee’s interest in the Plan. 
	 

	 
		10.7 Governing Law 
	 

	 
		The Plan shall be construed, administered,
		and governed in all respects under and by the laws of the state of Colorado.
		
	 

	 
		10.8 Severability 
	 

	 
		If any provision shall be held by a court of
		competent jurisdiction to be invalid or unenforceable, the remaining provisions
		hereof shall continue to be fully effective. 
	 

	 
		10.9 Headings and Subheadings 

	 

	 
		Headings and subheadings in this Plan are
		inserted for convenience only and are not to be considered in the construction
		of the provisions hereof. 
	 

	 
		 
	 

	 
		15
	 

	 
		 
	 

	 
 

	 
		 
	 

	 
			 	
				
				  Adopted by the Board of Directors
				  on November 10, 2006 to be effective on the Effective Date as defined in the
				  Plan.
				

			 
	 	 	 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  BioFuel Energy, LLC,
				

				
				  a Delaware limited liability
				  company
   
				

			 
	
				
				   
				

			 	
				
				

			 	
				
				   
				

			 	
				
				  By: 
				

			 	
				
				  /s/ Scott H. Pearce
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name: Scott H. Pearce
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title: President and CEO
				

			 

 

	 
		 
	 

	 
		16Exhibit 10.23
	 

	 
		BIOFUEL ENERGY, LLC
	 

	 
		CHANGE OF CONTROL PLAN
	 

	 
		This Change of Control Plan (the
		“Plan”), effective as of November 10, 2006, is adopted by BioFuel
		Energy, LLC, a Delaware limited liability company having its principal
		executive offices at 1801 Broadway, Suite 1060, Denver, Colorado 80202
		(together with all of its Subsidiaries, the “Company”), for the
		benefit of its employees.
	 

	 
		WHEREAS, the Board of Managers of the Company (the
		“Board”) recognizes that the possibility of a Change of Control (as
		hereinafter defined) exists and that the threat of or occurrence of a Change of
		Control can result in significant distractions to the Company’s employees;
		and
	 

	 
		WHEREAS, the Company considers the continued service of its
		employees to be in the best interest of the Company and its equity holders and
		desires to assure the continued services of its employees on behalf of the
		Company in an objective and impartial basis and without distraction or conflict
		of interest in the event of an attempt to obtain control of the Company;

	 

	 
		NOW THEREFORE, the Company hereby adopts this Plan which shall be for
		the benefit of its employees.
	 

	 
		1. Certain Definitions.
	 

	 
		“Additional
		Compensation” means Projected
		Annual Bonus amounts that, but for a Change of Control, would have been paid to
		any Employee, such amounts to be determined by the Company in good faith
		consistent with past practice.
	 

	 
		(a) If a Change of Control occurs in any
		year following the time the Company has paid Bonuses for the prior year, the
		Additional Compensation shall be calculated in accordance with a fraction, the
		numerator of which is the number of days the Employee was employed by the
		Company during the year in which the Change of Control occurs and the
		denominator of which is 365 (which amount shall be annualized with respect to
		Executives in order to determine the next “Projected Annual Bonus”
		for the purposes of calculating any Executive Payment to be made pursuant to
		this Plan).
	 

	 
		(b) If a Change of Control occurs in any
		year prior to the time the Company has paid Bonuses for the prior year, the
		Additional Compensation will consist of (i) a Bonus for such prior year which
		amount will be equal to the most recent annual Bonus or, if such person did not
		receive an annual Bonus for the prior year, the target annual Bonus applicable
		to such person plus (ii) a payment for the year in which the Change of Control
		occurs which will be a pro rata portion of the Projected Annual Bonus for such
		year calculated in accordance with a fraction, the numerator of which is the
		number of days the Employee was employed by the Company during the year and the
		denominator of which is 365.
	 

	 
		“Base
		Compensation” with respect to all
		Employees, means an amount equal to such Employee’s (a) Base Salary plus
		(b) an amount equal to the greater of the Company’s Board approved 401(k)
		contribution for such Employee in the year immediately preceding the year in
		which a Payment is to be made or the target 401(k) contribution for such
		Employee in the year in which a Payment is to be made, plus (c) an amount equal
		to the Company’s annualized deferred compensation matching contribution
		with respect to such Employee for the year in which a Payment is to be
		made.
	 

	 
		“Base Salary” with respect to all Employees, means an amount equal to
		such Employee’s annual salary.
	 

	 
		“Bonus” with respect to all Employees, means the amount of such
		Employee’s annual compensation, other than such Employee’s Base
		Compensation, which is designated by the Company as “bonus”
		compensation.
	 

	 
		 
	 

	 
		 
	 

	 
 

	 
		“Cause” means (a) an act or acts of dishonesty by an Employee
		constituting a felony under applicable law and/or (b) willful malfeasance or
		willful misconduct by an Employee in connection with his employment.
		Notwithstanding the foregoing, an Executive or Key Manager shall not be deemed
		to have been terminated for Cause unless and until there shall have been
		delivered to such Executive or Key Manager a copy of a resolution duly adopted
		by the affirmative vote of not less than a majority of the Compensation
		Committee of the Board called and held for the purpose (after reasonable notice
		and opportunity for the Executive or Key Manager, together with counsel to be
		heard before the Compensation Committee of the Board), finding that in the good
		faith opinion of the Compensation Committee of the Board the Executive or Key
		Manager engaged in the conduct described above.
	 

	 
		“Change of Control”
		means any of the following:
	 

	 
		(a) a merger or consolidation of the Company
		with any other entity, unless the proposed merger or consolidation would result
		in the voting securities of the Company outstanding immediately prior thereto
		continuing to represent (either by remaining outstanding or by being converted
		into voting securities of the surviving entity) more than 60% of the total
		voting power represented by the voting securities of the Company or such
		surviving entity outstanding immediately after such merger or
		consolidation;
	 

	 
		(b) a plan of complete liquidation of the
		Company shall have been adopted or the holders of voting securities of the
		Company shall have approved an agreement for the sale or disposition by the
		Company (in one transaction or a series of transactions) of all or
		substantially all of the Company’s assets;
	 

	 
		(c) any “person” (as such term is
		used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934
		(“1934 Act”)) shall become the “beneficial owner” (as
		defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of 25% or
		more of the combined voting power of the Company’s then outstanding
		securities, other than any holders of the Company which held in excess of 25%
		of the combined voting power at the time this Plan was adopted;
	 

	 
		(d) during any period of two consecutive
		years, members who at the beginning of such period constituted the Board shall
		have ceased for any reason to constitute a majority thereof, unless the
		election, or nomination for election by the Company’s equity holders, of
		each director shall have been approved by the vote of at least two-thirds of
		the directors then still in office and who were directors at the beginning of
		such period (so long as such director was not nominated by a person who has
		expressed an intent to effect a Change of Control or engage in a proxy or other
		control contest); or
	 

	 
		(e) the occurrence of any other Change of
		Control of a nature that would be required to be reported in accordance with
		Form 8-K pursuant to Sections 13 or 15(d) of the 1934 Act or in the
		Company’s proxy statement in accordance with Schedule 14A of Regulation
		14A promulgated under the 1934 Act, or in any successor forms or regulations to
		the same effect.
	 

	 
		Notwithstanding the foregoing, in no event
		shall a Change of Control be deemed to occur upon the occurrence of any of the
		following: (i) any acquisition of the Company’s equity interests or shares
		by the Company, (ii) any acquisition of the Company’s equity interests or
		shares by any employee benefit plan (or related trust) sponsored or maintained
		by the Company or any entity controlled by the Company, or (iii) any
		recapitalization or conversion of the Company into a corporation in advance of
		an IPO.
	 

	 
		“Employee” means any person who is an Executive, Key Manager or
		Other Employee.
	 

	 
		“Executive” means any person who is an executive officer of the
		Company on the day immediately prior to a Change of Control, other than those
		officers designated by the Board to be excluded under the terms of this Plan,
		such list to include at the date of adoption of the Plan the Chairman, the
		Chief Executive Officer and President and the Executive Vice President and
		Chief Operating Officer.
	 

	 
		“Executive Payment”
		means with respect to any Executive,
		(i) an amount equal to 100% of such Executive’s Base Compensation for the
		year in which the Executive Payment is to be made plus (ii) such
	 

	 
		 
	 

	 
		2
	 

	 
		 
	 

	 
 

	 
		Executive’s Additional Compensation
		plus (iii) an amount equal to 100% of the greater of (a) such Executive’s
		most recent annual Bonus (including Bonus payments made by the Company or its
		predecessors and whether or not paid at the time of the Change of Control) or
		(b) the Projected Annual Bonus for the calendar year in which the Change of
		Control occurs.
	 

	 
		“Key Manager” means any person listed on Schedule I
		attached hereto, as such schedule may be amended or modified from time to time
		prior to a Change of Control by resolution of the Board or the Compensation
		Committee of the Board.
	 

	 
		“Key Manager Payment”
		means with respect to any Key Manager,
		(i) an amount equal to 100% of such Key Manager’s Base Compensation for
		the year in which the Key Manager Payment is to be made plus (ii) such Key
		Manager’s Additional Compensation.
	 

	 
		“Material Change”
		means, without the Employee’s
		written consent, (i) a change of status, position or responsibilities which, in
		the Employee’s reasonable judgment, does not represent a promotion from
		existing status, position or responsibilities as in effect immediately prior to
		the Change of Control; the assignment of any duties or responsibilities which,
		in the Employee’s reasonable judgment, are inconsistent with such status,
		position or responsibilities; or any removal from or failure to reappoint or
		reelect the Employee to any of such positions, except in connection with the
		termination for total and permanent disability, death or Cause or by him other
		than for good reason; (ii) a reduction by the Company in the Employee’s
		Base Compensation as in effect on the date of the Change of Control; (iii) the
		relocation of the Employee by the Company to any place not within 25 miles of
		the location at which the Employee performed duties prior to a Change of
		Control, except for required travel on the Company’s business to an extent
		substantially consistent with business travel obligations at the time of a
		Change of Control; (iv) the failure of the Company to continue in effect any
		incentive, bonus or other compensation plan in which the Employee participates,
		including but not limited to any equity incentive and deferred compensation
		plans, unless an equitable arrangement (embodied in an ongoing substitute or
		alternative plan), evidenced by the Employee’s written consent, has been
		made with respect to such plan in connection with the Change of Control, or the
		failure by the Company to continue the Employee’s participation therein,
		or any action by the Company which would directly or indirectly materially
		reduce participation therein; (v) the failure by the Company to continue to
		provide the Employee with benefits substantially similar to those enjoyed or
		entitled under any of the Company’s profit sharing, life insurance,
		medical dental health and accident, or disability plans at the time of a Change
		of Control, the taking of any action by the Company which would directly or
		indirectly materially reduce any of such benefits or deprive the Employee of
		any material fringe benefit enjoyed or entitled to at the time of the Change of
		Control, or the failure by the Company to provide the number of paid vacation
		and sick leave days to which the Employee is entitled on the basis of years of
		service with the Company in accordance with the Company’s normal vacation
		policy in effect on the date of the Change of Control; (vi) the failure of the
		Company to obtain a satisfactory agreement from any successor or assign of the
		Company to assume and agree to perform this Plan; (vii) any purported
		termination of the Employee’s employment which is not effected pursuant to
		this Plan; or (viii) any request by the Company that the Employee participate
		in an unlawful act or take any action constituting a breach of the
		Employee’s professional standard of conduct.
	 

	 
		“Other Employee”
		means any person who is an employee of
		the Company, other than any employee who is an Executive or Key Manager, on the
		day immediately prior to a Change of Control.
	 

	 
		“Other Employee Payment”
		with respect to any Other Employee,
		means an amount equal to (i) 50% of such Other Employee’s Base Salary for
		the year in which the Other Employee Payment is to be made plus (ii) such Other
		Employee’s Additional Compensation.
	 

	 
		“Notice of Termination”
		means a notice which informs the
		Employee of the effective date of the termination of Employee’s
		employment.
	 

	 
		“Payment” means the Other Employee Payment, Key Manager Payment
		and the Executive Payment.
	 

	 
		2. Immediate Vesting
	 

	 
		 
	 

	 
		3
	 

	 
		 
	 

	 
 

	 
		(a) Upon a Change of Control, all non-vested
		securities of the Company held by Employees shall automatically vest.
	 

	 
		(b) Upon a Change of Control, all non-vested
		rights under, or in connection with, all of the Company’s benefit plans,
		including, without limitation, the Company’s 401(k) plan, bonus plan
		(including cash and/or equity securities) and deferred compensation plan shall
		automatically vest.
	 

	 
		3. Payments
	 

	 
		(a) If any Executive is terminated without
		cause within one year following a Change of Control, or if any Executive
		resigns within 30 days of a Material Change occurring within one year following
		a Change of Control (which Material Change shall be deemed to be constructive
		termination), then such Executive shall receive an Executive Payment.
	 

	 
		(b) If any Key Manager is terminated without
		cause within one year following a Change of Control, or if any Key Manager
		resigns within 30 days of a Material Change occurring within one year following
		a Change of Control (which Material Change shall be deemed to be constructive
		termination), then such Key Manager shall receive a Key Manager Payment.

	 

	 
		(c) If any Other Employee is terminated
		without cause within one year following a Change of Control, or if any Other
		Employee resigns within 30 days of a Material Change occurring within one year
		following a Change of Control (which Material Change shall be deemed to be
		constructive termination), then such Other Employee shall receive an Other
		Employee Payment.
	 

	 
		(d) Notwithstanding the foregoing, the
		amount of the Payment shall be dependent upon the duration of employment with
		the Company. If such Employee has been employed by the Company for less than
		one year, Employee will receive one-half of the Payment. If such Employee has
		been employed by the Company for at least one year, Employee will receive the
		full amount of the Payment.
	 

	 
		(e) If any Employee is entitled to receive a
		Payment pursuant to this Section 3, the Company agrees to pay such Payment to
		the Employee as termination compensation in a lump-sum payment within five (5)
		calendar days of the termination of the Employee’s employment or such
		Employee’s resignation due to a Material Change.
	 

	 
		4. Additional Provisions.
	 

	 
		(a) Enforcement of Plan and Fees and Expenses.
		The Company shall pay all reasonable
		legal fees and related expenses (including the costs of experts, evidence and
		counsel) incurred by an Employee as they become due as a result of a good faith
		dispute in which the Employee seeks to obtain or enforce any right or benefit
		provided by this Plan or by any other plan or arrangement maintained by the
		Company under which the Employee is or may be entitled to receive benefits;
		provided, however, that the circumstances giving rise to such dispute
		occurred on or after a Change of Control; provided, further, that no such payment by the Company shall be required
		if there is a determination by any court or arbitrator determining such dispute
		that there was no reasonable good faith basis for such Employee’s dispute
		and, further, upon such a determination, the Employee shall repay to the
		Company any and all legal fees and related expenses the Company has advanced to
		the Employee in pursuit of such dispute.
	 

	 
		(b) Severance
		Pay; No Duty to Mitigate. The amounts
		payable to Employees under this Plan shall not be treated as damages but as
		severance compensation to which Employees are entitled by reason of termination
		of employment in the circumstances contemplated by this Plan. The Company shall
		not be entitled to set off against the amounts payable to Employees of any
		amounts earned by any Employee in other employment after termination of
		employment with the Company, or any amounts which might have been earned by any
		Employee in other employment had other such employment been sought.
	 

	 
		 
	 

	 
		4
	 

	 
		 
	 

	 
 

	 
		(c) Notice of Termination. Subsequent to any Change of Control, termination by the
		Company shall be communicated by written Notice of Termination to the
		terminated Employee in accordance with Section 4(h) hereof.
	 

	 
		(d) Parachute Payment Limitation. If any payment or benefit to the Employee under this
		Plan would be considered a “parachute payment” within the meaning of
		Section 280G(b)(2) of the Internal Revenue Code of 1986, as amended (the
		“Code”) and if, after reduction for any applicable federal excise tax
		imposed by Code Section 4999 (the “Excise Tax”) and federal income
		tax imposed by the Code, the Employee’s net proceeds of the amounts
		payable and the benefits provided under this Plan would be less than the amount
		of the Employee’s net proceeds resulting from the payment of the Reduced
		Amount described below, after reduction for federal income taxes, then the
		amount payable and the benefits provided under this Plan shall be limited to
		the Reduced Amount. The “Reduced Amount” shall be the largest amount
		that could be received by the Employee under this Plan such that no amount paid
		to the Employee under this Plan and any other agreement, contract, or
		understanding heretofore or hereafter entered into between the Employee and the
		Company (the “Other Agreements”) and any formal or informal plan or
		other arrangement heretofore or hereafter adopted by the Company for the direct
		or indirect provision of compensation to the Employee (including groups or
		classes of participants or beneficiaries of which the Employee is a member),
		whether or not such compensation is deferred, is in cash or is in the form of a
		benefit to or for the Employee (a “Benefit Plan”) would be subject to
		the Excise Tax. The Reduced Amount shall be calculated by a nationally
		recognized benefit consulting firm or accounting firm (the “Firm”),
		which amount shall be presented to the Employee for review. In the event that
		the amount payable to the Employee shall be limited to the Reduced Amount, then
		the Employee shall have the right, in the Employee’s sole discretion, to
		designate those payments or benefits under this Plan, any Other Agreements,
		and/or any Benefit Plans, that should be reduced or eliminated so as to avoid
		having the payment to the Employee under this Plan be subject to the Excise
		Tax.
	 

	 
		In the event that the Internal Revenue
		Service claims that any payment or benefit received under this Plan, the Other
		Agreements or the Benefit Plans constitutes an “excess parachute
		payment,” within the meaning of Section 280G(b)(1) of the Code, the
		Employee shall notify the Company in writing of such claim. The Employee may
		then, at his or her own option and expense, choose to dispute the Internal
		Revenue Service Claim or pay such claim. In either event, the Employee shall
		promptly notify the Company of the action such Employee has taken with respect
		to such claim, and, if the Employee chooses to dispute such claim, then the
		Employee shall provide the Company with quarterly updates of the status of such
		dispute.
	 

	 
		(e) Governing Law. This Plan shall be governed by and subject to the laws
		of the State of Delaware.
	 

	 
		(f) Severability. The invalidity or unenforceability of any particular
		provision of this particular Plan shall not affect the other provisions, and
		this Plan shall be construed in all respects as if such invalid or
		unenforceable provision has not been contained herein.
	 

	 
		(g) Captions. The
		captions in this Plan are for convenience and identification purposes only, are
		not an integral part of this Plan, and are not to be considered in the
		interpretation of any part hereof.
	 

	 
		(h) Notices. Except
		as specifically set forth in this Plan, all notices and other communications
		hereunder shall be in writing and shall be deemed to have been duly given if
		delivered in person or sent by registered or certified mail, postage prepaid.
		Notices to the Company shall be addressed to BioFuel Energy, LLC, 1801
		Broadway, Suite 1060, Denver, Colorado 80202, attention: President. Notices to
		Employees, if mailed, shall be addressed to the latest address which the
		Company has for such Employee.
	 

	 
		(i) Amendment and Termination. This Plan may be amended or terminated by the Company at
		any time; provided, however,
		that the Plan may not be amended or
		terminated during the period commencing on the date of a Change of Control and
		ending on the first anniversary of the Change of Control, provided,
		further, that no amendment or
		termination of this Plan following a Change of 
	 

	 
		 
	 

	 
		5
	 

	 
		 
	 

	 
 

	 
		Control may alter or curtail the
		entitlements of an Employee accrued under the terms of this Plan by virtue of a
		termination of the Employee’s employment prior to such amendment or
		termination and the Company shall continue to provide the benefits or payments
		to which an Employee had become entitled hereunder prior to the termination or
		amendment of this Plan.
	 

	 
		 
	 

	 
		6

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