Document:

Unassociated Document

    Exhibit
10.7

    

    AMENDED
AND RESTATED REGISTRATION RIGHTS AGREEMENT

     

    This
AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (this “Agreement”)
dated as of December 15, 2010 is entered into by and among BioFuel Energy Corp.,
a Delaware corporation (the “Company”),
and certain holders of securities of the Company party to this Agreement
(collectively, the “Investor
Parties”).

     

    A.        
  The persons, including the Investor Parties, listed on Schedule A
hereto (the “Existing
Investors”) are party, with the Company, to a Registration Rights
Agreement dated as of June 19, 2007 (the “Existing
Registration Rights Agreement”), pursuant to which the Company is
obligated to register, subject to the terms and conditions set forth therein,
shares of common stock of the Company, par value $0.01 per share (the “Common
Stock”), held by such Existing Investors and their respective permitted
assignees and transferees, including shares of Common Stock deliverable or
delivered in exchange for the Units (as defined below) (all such outstanding or
deliverable or delivered shares of Common Stock constituting “Registrable
Securities” under the Existing Registration Rights Agreement, the “Existing
Registrable Securities”);

     

    B.           The
Investor Parties hold at least fifty percent (50%) of the outstanding Existing
Registrable Securities;

     

    C.           The
Investor Parties and the Company wish to amend and restate the Existing
Registration Rights Agreement, pursuant to Section 3.9 of the Existing
Registration Rights Agreement, to read as set forth herein;

     

    D.           In
addition to the Existing Registrable Securities, certain of the Existing
Investors (including certain of the Investor Parties) are holders, or will
become holders, of (i) shares of Series A Non-Voting Convertible Preferred Stock
of the Company (the “Series A
Preferred Stock”) or depositary shares in respect thereof, which shall
automatically convert into shares of Common Stock as described in the
Certificate of Designation (as defined below) and (ii) warrants that, in the
event that the Company fails to repay the Loan (as defined in the Bridge Loan
Agreement (as defined below)) at maturity, will entitle the holders to a right
to purchase shares of Common Stock as described in the Loan Agreement (the
“Warrant”);
and

     

    E.           The
Company desires to provide the Existing Investors with registration rights with
respect to the Existing Registrable Securities and the shares of Common Stock
underlying the Series A Preferred Stock and the Warrant.

     

    AGREEMENT

     

    NOW,
THEREFORE, in consideration of the foregoing recitals and the mutual promises
hereinafter set forth, the Existing Registration Rights Agreement is amended and
restated to read, and the parties hereto agree, as follows:

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    ARTICLE
I

     

    CERTAIN
DEFINED TERMS

     

    Section
1.1    DEFINITIONS. For
purposes of this Agreement:

     

    (a)           “A&R
Rights Offering
Letter Agreement” means that certain Amendment and Restatement to the
Rights Offering Letter Agreement among Greenlight Capital, LP, Greenlight
Capital Qualified, LP, Greenlight Capital (Gold), LP, Greenlight Capital
Offshore Partners, Greenlight Capital Offshore Master (Gold), Ltd., Greenlight
Reinsurance, Ltd., Third Point Loan LLC, Third Point Advisors, LLC and BioFuel
Energy Corp. dated as of December 14, 2010.

     

    (b)           “Affiliate”
means, with respect to any Person, (i) any other Person of which securities or
other ownership interests representing more than fifty percent (50%) of the
voting interests are, at the time such determination is being made, owned,
Controlled or held, directly or indirectly, by such Person or (ii) any other
Person which, at the time such determination is being made, is Controlling,
Controlled by or under common Control with, such Person. As used herein, “Control”,
whether used as a noun or verb, refers to the possession, directly or
indirectly, of the power to direct, or cause the direction of, the management or
policies of a Person, whether through the ownership of voting securities or
otherwise.

     

    (c)           “BFE LLC”
means BioFuel Energy, LLC, a Delaware limited liability company.

     

    (d)           “Bridge Loan
Agreement” means the Bridge Loan Agreement, dated September 24, 2010, by
and among the Company, Greenlight APE, L.L.C. as administrative agent and the
lender parties identified therein, as amended, modified, supplemented or
restated from time to time.

     

    (e)           “Certificate
of
Designation” means the Certificate of Designation of the Series A
Non-Voting Convertible Preferred Stock of BioFuel Energy Corp., to be entered
into upon consummation of the rights offering contemplated by the A&R Rights
Offering Letter Agreement.

     

    (f)            “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the SEC promulgated thereunder.

     

    (g)           “FINRA”
means the Financial Industry Regulatory Authority, Inc.

     

    (h)           
“Holder”
means a Person that (i) is a party to this Agreement (or a permitted transferee
under Section 2.11 hereof) or a party to the Existing Registration Rights
Agreement (or a permitted transferee under Section 2.11 thereof) and (ii) owns
Registrable Securities.

     

    (i)           “LLC
Agreement” means the BFE LLC Third Amended and Restated LLC Agreement, to
be entered into upon consummation of the rights offering contemplated by the
A&R Rights Offering Letter Agreement, among the Company and the members of
BFE LLC, as the same may be amended, modified, supplemented or restated from
time to time.

     

    
      
         

      

      
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    (j)           “Participating
Holders” means Holders participating, or electing to participate, in an
offering of Registrable Securities.

     

    (k)           “Person”
means any individual, firm, corporation, company, partnership, trust,
incorporated or unincorporated association, limited liability company, joint
venture, joint stock company, government (or an agency or political subdivision
thereof) or other entity of any kind, and shall include any successor (by merger
or otherwise) of any such entity.

     

    (l)           “Registrable
Securities” means shares of Common Stock held by Holders, including
shares of Common Stock deliverable or delivered (i) in exchange for Units
pursuant to the LLC Agreement and the organizational documents of the Company,
(ii) upon conversion of the Series A Preferred Stock (or depositary shares
in respect thereof) or (iii) upon exercise of the Warrant; provided,
however, that equity interests that are considered to be Registrable Securities
shall cease to be Registrable Securities (A) upon the sale thereof pursuant to
an effective registration statement, (B) upon the sale thereof pursuant to Rule
144 (or successor rule under the Securities Act), (C) when such securities cease
to be outstanding or (D) when such securities become eligible for sale under
Rule 144 (or successor rule under the Securities Act), without any volume
limitations under such Rule.

     

    (m)           “Registration
Expenses” mean all expenses (other than underwriting discounts and
commissions) arising from or incident to the performance of, or compliance with,
this Agreement, including, without limitation, (i) SEC, stock exchange, FINRA
and other registration and filing fees, (ii) all fees and expenses incurred in
connection with complying with any securities or blue sky laws (including fees,
charges and disbursements of counsel in connection with blue sky qualifications
of the Registrable Securities), (iii) all printing, messenger and delivery
expenses, (iv) the fees, charges and disbursements of counsel to the Company and
of its independent public accountants and any other accounting and legal fees,
charges and expenses incurred by the Company (including any expenses arising
from any special audits or “comfort letters” required in connection with or
incident to any registration), (v) the fees, charges and disbursements of any
special experts retained by the Company in connection with any registration
pursuant to the terms of this Agreement, (vi) all internal expenses of the
Company (including all salaries and expenses of its officers and employees
performing legal or accounting duties), (vii) the fees and expenses incurred in
connection with the listing of the Registrable Securities on any securities
exchange and (viii) Securities Act liability insurance (if the Company elects to
obtain such insurance), regardless of whether any Registration Statement filed
in connection with such registration is declared effective.

     

    (n)           “Registration
Expenses” shall also include fees, charges and disbursements of one (1)
firm of counsel to all of the Participating Holders participating in any
underwritten public offering pursuant to Article II hereof (which shall be
selected by a majority, based on the number of Registrable Securities to be
sold, of the Participating Holders).

     

    
      
         

      

      
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    (o)           “Registration
Statement” means any Registration Statement of the Company filed with the
SEC on the appropriate form pursuant to the Securities Act which covers any of
the Registrable Securities pursuant to the provisions of this Agreement and all
amendments and supplements to any such Registration Statement, including
post-effective amendments, in each case including the prospectus contained
therein, all exhibits thereto and all materials incorporated by reference
therein.

     

    (p)           “Rights Offering
Letter Agreement” means the Rights Offering Letter Agreement, dated
September 24, 2010, by and among the Company and the lender parties identified
therein, as amended, modified, supplemented or restated from time to
time.

     

    (q)           “SEC” means
the United States Securities and Exchange Commission.

     

    (r)           “Securities
Act” means the Securities Act of 1933, as amended, and the rules and
regulations of the SEC promulgated thereunder.

     

    (s)           “Selling
Expenses” means the underwriting fees, discounts, selling commissions and
stock transfer taxes applicable to all Registrable Securities registered by the
Participating Holders.

     

    (t)           “Units”
means (i) Common Units (as defined in the LLC Agreement) held by the Existing
Investors on the date of this Agreement together with (ii) Common Units issued
to the Existing Investors upon conversion of any Preferred Units (as defined in
the LLC Agreement) or Class B Preferred Units (as defined in the LLC Agreement)
(if and to the extent issued) held by the Existing Investors on the date of
this Agreement, in the case of (i) and (ii) after giving effect to the execution
of the LLC Agreement.

     

    ARTICLE
II

     

    REGISTRATION
RIGHTS

     

    Section
2.1       DEMAND
REGISTRATION

     

    (a)           Request by
Holders.  Upon receipt of a written request from Holders that
hold at least twenty percent (20%) of the Registrable Securities then
outstanding (the “Requesting
Holders”) that the Company register Registrable Securities held by
Requesting Holders (a “Demand
Request”), then the Company shall, within ten (10) days after receipt of
such Demand Request, give written notice of such request (“Request
Notice”) to all Holders.  Each Demand Request shall (x) specify
the number of Registrable Securities that the Requesting Holders intend to sell
or dispose of, (y) state the intended method or methods of sale or disposition
of the Registrable Securities and (z) specify the expected price range (net of
underwriting discounts and commissions) acceptable to the Requesting Holders to
be received for such Registrable Securities.  Following receipt of a
Demand Request, the Company shall:

     

    
      
         

      

      
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    (i)           cause
to be filed, as soon as practicable, but within ninety (90) days of the date of
delivery to the Company of the Demand Request, a Registration Statement covering
such Registrable Securities which the Company has been so requested to register
by the Requesting Holders and other Holders who request to the Company that
their Registrable Securities be registered within twenty (20) days of the
mailing of the Request Notice, providing for the registration under the
Securities Act of such Registrable Securities to the extent necessary to permit
the disposition of such Registrable Securities in accordance with the intended
method of distribution specified in such Demand Request;

     

    (ii)           use
its reasonable best efforts to have such Registration Statement declared
effective by the SEC as soon as practicable thereafter; and refrain from filing
any other Registration Statements, other than pursuant to a Registration
Statement on Form S-4 or S-8 (or similar or successor forms), with respect to
any other securities of the Company until such date which is ninety (90) days
following effectiveness of the Registration Statement filed in response to the
Demand Request.

     

    (b)           Effective Registration
Statement. A registration requested pursuant to this Section 2.1 shall
not be deemed to have been effected (i) unless a Registration Statement with
respect thereto has become effective and remained effective in compliance with
the provisions of the Securities Act with respect to the disposition of all
Registrable Securities covered by such Registration Statement until such time as
all of such Registrable Securities have been disposed of in accordance with the
intended methods of disposition by the Holders thereof set forth in such
Registration Statement; (ii) if, after it has become effective, such
registration is interfered with by any stop order, injunction or other order or
requirement of the SEC or other governmental agency or court and has not
thereafter become effective, or if the offering of Registrable Securities is not
consummated for any reason, including, without limitation, if the underwriters
of an underwritten public offering advise the Participating Holders that the
Registrable Securities cannot be sold at a net price per share equal to or above
the net price disclosed in the preliminary prospectus; (iii) if the conditions
to closing specified in the underwriting agreement, if any, entered into in
connection with such registration are not satisfied or waived; or (iv) if the
Requesting Holders are cut back to fewer than fifty percent (50%) of the
Registrable Securities requested to be registered.

     

    (c)           Selection of
Underwriters. In the event that the Company is required to file a
Registration Statement covering any Registrable Securities of any Requesting
Holders pursuant to Section 2.1(a) hereof and the proposed public offering is to
be an underwritten public offering, the managing underwriter shall be one or
more reputable nationally recognized investment banks selected by a majority in
interest of the Requesting Holders and reasonably acceptable to the Company,
which consent shall not be unreasonably withheld, delayed or
conditioned.

     

    
      
         

      

      
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    (d)           Priority for Demand
Registration. Notwithstanding any other provision of this Agreement, if
the managing underwriter of an underwritten public offering determines and
advises the Participating Holders and the Company in writing that the inclusion
of all securities proposed to be included by the Company and any other Holders
in the underwritten public offering would materially and adversely interfere
with the successful marketing of the Requesting Holders’ Registrable Securities,
then the Company and other Holders shall not be permitted to include any
securities in excess of the amount, if any, of securities which the managing
underwriter of such underwritten public offering shall reasonably and in good
faith agree in writing to include in such public offering in addition to the
amount of Registrable Securities to be registered for the Requesting Holders.
The Company will be obligated to include in such Registration Statement, as to
each Holder, only a portion of the Registrable Securities such Holder has
requested be registered equal to the ratio which such Holder’s requested
Registrable Securities bears to the total number of Registrable Securities
requested to be included in such Registration Statement by all Holders who have
requested that their Registrable Securities be included in such Registration
Statement.  It is acknowledged by the parties hereto that pursuant to
the foregoing provision, the securities to be included in a registration
requested by the Requesting Holders pursuant to this Section 2.1 shall be
allocated: (i) first, to the Participating Holders, and (ii) second, to the
Company and any other holders of equity interests of the Company requesting
registration of securities of the Company.

     

    (e)           Limitation on Demand
Registrations. The Company shall only be obligated to effect six (6)
Demand Requests pursuant to this Section 2.1.

     

    (f)           Cancellation of
Registration. A majority in interest of the Participating Holders shall
have the right to cancel a proposed registration of Registrable Securities
pursuant to this Section 2.1 when, (i) in their discretion, market conditions
are so unfavorable as to be seriously detrimental to an offering pursuant to
such registration or (ii) the request for cancellation is based upon material
adverse information relating to the Company that is different from the
information known to the Participating Holders at the time of the Demand
Request. Such cancellation of a registration shall not be counted as one of six
(6) Demand Requests and notwithstanding anything to the contrary in the
Agreement, the Company shall be responsible for the expenses of the
Participating Holders incurred in connection with the registration prior to the
time of cancellation.

     

    Section
2.2     PIGGYBACK
REGISTRATIONS.

     

    (a)           Right to Include Registrable
Securities. Subject to the limitations contained in the last sentence of
this Section 2.2, each time that the Company proposes for any reason to register
any of its equity interests under the Securities Act, either for its own account
or for the account of equity interest holders exercising demand registration
rights, other than a Demand Request pursuant to Section 2.1 hereof, a rights
offering (other than the rights offering contemplated by the A&R Rights
Offering Letter Agreement) or pursuant to a Registration Statement on Form S-4
or S-8 (or similar or successor forms) (a “Proposed
Registration”), the Company shall promptly give written notice of such
Proposed Registration to all of the Holders of Registrable Securities (which
notice shall be given not less than thirty (30) days prior to the expected
effective date of the Company’s Registration Statement) and shall offer such
Holders the right to request inclusion of any of such Holder’s Registrable
Securities in the Proposed Registration. No registration pursuant to this
Section 2.2 shall relieve the Company of its obligation to register Registrable
Securities pursuant to a Demand Request, as contemplated by Section 2.1 hereof.
The rights to piggyback registration may be exercised on an unlimited number of
occasions.

     

    
      
         

      

      
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    (b)           Piggyback Procedure.
Each Holder of Registrable Securities shall have twenty (20) days from the date
of receipt of the Company’s notice referred to in Section 2.2(a) above to
deliver to the Company a written request specifying the number of Registrable
Securities such Holder intends to sell and such Holder’s intended method of
disposition. Any Holder shall have the right to withdraw such Holder’s request
for inclusion of such Holder’s Registrable Securities in any Registration
Statement pursuant to this Section 2.2 by giving written notice to the Company
of such withdrawal; provided, however, that the Company may ignore a notice of
withdrawal made within twenty-four (24) hours of the time the Registration
Statement is to become effective. Subject to Section 2.2(d) below, the Company
shall use its commercially reasonable efforts to include in such Registration
Statement all such Registrable Securities so requested to be included therein;
provided, however, that the Company may at any time withdraw or cease proceeding
with any such Proposed Registration if it shall at the same time withdraw or
cease proceeding with the registration of all other Registrable Securities
originally proposed to be registered. In the event that the Proposed
Registration by the Company is, in whole or in part, an underwritten public
offering of securities of the Company, any request under this Section 2.2(b)
shall specify that the Registrable Securities be included in the underwriting on
the same terms and conditions as the securities, if any, otherwise being sold
through underwriters under such registration.

     

    (c)           Selection of
Underwriters. The managing underwriter for any Proposed Registration that
involves an underwritten public offering shall be one or more reputable
nationally recognized investment banks selected by the Company and reasonably
acceptable to a majority in interest of the Holders, which consent shall not be
unreasonably withheld, delayed or conditioned.

     

    (d)           Priority for Piggyback
Registration. Notwithstanding any other provision of this Agreement, if
the managing underwriter of an underwritten public offering determines and
advises the Company and the Holders in writing that the inclusion of all
Registrable Securities proposed to be included by the Holders of Registrable
Securities in the underwritten public offering would materially and adversely
interfere with the successful marketing of the Company’s securities, then the
Holders of Registrable Securities shall not be permitted to include, in the
aggregate, any Registrable Securities in excess of the amount, if any, of
Registrable Securities which the managing underwriter of such underwritten
public offering shall reasonably and in good faith agree in writing to include
in such public offering in addition to the amount of securities to be registered
for the Company (the “Maximum Offering
Amount”). The Company will be obligated to include in such Registration
Statement only a portion of the Registrable Securities such Holder has requested
be registered equal to the ratio which such Holder’s requested Registrable
Securities bears to the total number of Registrable Securities requested to be
included in such Registration Statement by all Holders who have requested that
their Registrable Securities be included in such Registration Statement. It is
acknowledged by the parties hereto that pursuant to the foregoing provision, the
securities to be included in a registration initiated by the Company shall be
allocated:

     

    
      
         

      

      
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    (i)           first,
to the Company;

     

    (ii)          second,
pari passu to the Holders; and

     

    (iii)         third,
to any others requesting registration of securities of the Company.

     

    If as a
result of the provisions of this Section 2.2(d), any Holder shall not be
entitled to include more than fifty percent (50%) of its Registrable Securities
in a registration that such Holder has requested to be so included, such Holder
may withdraw such Holder’s request to include Registrable Securities in such
Registration Statement.

     

    (e)           Underwritten
Offering. In the event that the Proposed Registration by the Company is,
in whole or in part, an underwritten public offering of securities of the
Company, any request under this Section 2.2 shall specify that the Registrable
Securities be included in the underwriting on the same terms and conditions as
the securities, if any, otherwise being sold through underwriters under such
registration.

     

    Section
2.3     FORM S-3
REGISTRATION. Any Holder or group of Holders holding at least ten percent
(10%) of the Registrable Securities (an “Initiating Form
S-3 Holder”) may request at any time following the date hereof that the
Company file a Registration Statement under the Securities Act on Form S-3 (or
similar or successor form) covering the sale or other distribution of all or any
portion of the Registrable Securities held by such Initiating Form S-3 Holder
pursuant to Rule 415 under the Securities Act (“Form S-3
Demand”) if the Company is a registrant qualified to use Form S-3 (or any
similar or successor form) to register such Registrable Securities. If such
condition is met, the Company shall use its reasonable best efforts to register
under the Securities Act on Form S-3 (or any similar or successor form) at the
earliest practicable date, for sale in accordance with the method of disposition
specified in the Form S-3 Demand, the number of Registrable Securities specified
in such Form S-3 Demand.  In connection with a Form S-3 Demand, the
Company agrees to include in the prospectus included in any Registration
Statement on Form S-3, such material describing the Company and intended to
facilitate the sale of securities being so registered as is reasonably requested
for inclusion therein by the Initiating Form S-3 Holders, whether or not the
rules applicable to preparation of Form S-3 require the inclusion of such
information. Form S-3 Demands will not be deemed to be Demand Requests as
described in Section 2.1 hereof and Holders shall have the right to request an
unlimited number of Form S-3 Demands. Notwithstanding the foregoing, the Company
shall not be obligated to file more than four (4) Registration Statements on
Form S-3 pursuant to this Section 2.3 in any given twelve (12) month
period.

     

    Section
2.4     LOCK-UP AGREEMENTS.
If any registration of Registrable Securities shall be effected in connection
with an underwritten public offering, no Holder shall effect any public sale or
distribution, including any sale pursuant to Rule 144, of any shares of Common
Stock or other security of the Company (except as part of such underwritten
public offering) during the period beginning fourteen (14) days prior to the
effective date of the applicable Registration Statement until the earlier of:
(i) such time as the Company and the managing underwriter shall agree and (ii)
one hundred and eighty (180) days.

     

    
      
         

      

      
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    Section
2.5     REGISTRATION
PROCEDURES.

     

    (a)           Obligations of the
Company. Whenever registration of Registrable Securities is required
pursuant to this Agreement, the Company shall use its reasonable best efforts to
effect the registration and sale of such Registrable Securities in accordance
with the intended method of distribution thereof as promptly as possible, and in
connection with any such request, the Company shall, as expeditiously as
possible:

     

    (i)           Preparation of Registration
Statement;
Effectiveness. Prepare and file with the SEC (in any event not later than
ninety (90) days after receipt of a Demand Request to file a Registration
Statement with respect to Registrable Securities), a Registration Statement on
any form on which the Company then qualifies, which counsel for the Company
shall deem appropriate and pursuant to which such offering may be made in
accordance with the intended method of distribution thereof (except that the
Registration Statement shall contain such information as may reasonably be
requested for marketing or other purposes by the managing underwriter), and use
its reasonable best efforts to cause any registration required hereunder to
become effective as soon as practicable after the initial filing thereof and
remain effective for a period of not less than one hundred and eighty (180) days
(or such shorter period in which all Registrable Securities have been sold in
accordance with the methods of distribution set forth in the Registration
Statement); provided, however, that, in the case of any registration of
Registrable Securities on Form S-3 which are intended to be offered on a
continuous or delayed basis, such one hundred and eighty (180) day period shall
be extended, if necessary, to keep the Registration Statement effective until
all such Registrable Securities are sold, provided that Rule 415, or any
successor rule under the Securities Act, permits an offering on a continuous or
delayed basis.  Notwithstanding the foregoing, the Company may (A)
defer the filing of a Registration Statement for a period of not more than 90
days (but not more than once in any twelve-month period) or (B) suspend the use
of a prospectus under a Registration Statement on Form S-3 for a period not to
exceed 30 days in any three-month period or an aggregate of 90 days in any
12-month period, in each case if the Board of Directors of the Company
determines in good faith that because of bona fide business reasons (not
including the avoidance of the Company’s obligations hereunder), including the
acquisition or divestiture of assets, pending corporate developments and similar
events, it is in the best interests of the Company to delay the filing of such
Registration Statement or to suspend the use of such prospectus, and prior to
delaying such filing or suspending such use, the Company provides the
Participating Holders with written notice of such delay or suspension, which
notice need not specify the nature of the event giving rise to such delay or
suspension;

     

    
      
         

      

      
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    (ii)           Participation in
Preparation. Provide any Participating Holder, any underwriter
participating in any disposition pursuant to a Registration Statement, and any
attorney, accountant or other agent retained by any Participating Holder or
underwriter (each, an “Inspector”
and, collectively, the “Inspectors”),
the opportunity to participate (including, but not limited to, reviewing,
commenting on and attending all meetings) in the preparation of such
Registration Statement, each prospectus included therein or filed with the SEC
and each amendment or supplement thereto;

     

    (iii)           Due Diligence. For a
reasonable period prior to the filing of any Registration Statement pursuant to
this Agreement, make available for inspection and copying by the Inspectors such
financial and other information and books and records, pertinent corporate
documents and properties of the Company and its subsidiaries and cause the
officers, directors, employees, counsel and independent certified public
accountants of the Company and its subsidiaries to respond to such inquiries and
to supply all information reasonably requested by any such Inspector in
connection with such Registration Statement, as shall be reasonably necessary,
in the judgment of the respective counsel referred to in Section 2.5(a)(ii), to
conduct a reasonable investigation within the meaning of the Securities
Act;

     

    (iv)           General
Notifications. Promptly notify in writing the Participating Holders, the
sales or placement agent, if any, therefor and the managing underwriter of the
securities being sold, (A) when such Registration Statement or the prospectus
included therein or any prospectus amendment or supplement or post-effective
amendment has been filed, and, with respect to any such Registration Statement
or any post-effective amendment, when the same has become effective, (B) when
the SEC notifies the Company whether there will be a “review” of such
Registration Statement, (C) of any comments (oral or written) by the SEC and by
the blue sky or securities commissioner or regulator of any state with respect
thereto and (D) of any request by the SEC for any amendments or supplements to
such Registration Statement or the prospectus or for additional
information;

     

    (v)           10b-5 Notification.
Promptly notify in writing the Participating Holders, the sales or placement
agent, if any, therefor and the managing underwriter of the securities being
sold pursuant to any Registration Statement at any time when a prospectus
relating thereto is required to be delivered under the Securities Act upon
discovery that, or upon the happening of any event as a result of which, any
prospectus included in such Registration Statement (or amendment or supplement
thereto) contains an untrue statement of a material fact or omits to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances under which they were made,
and the Company shall promptly prepare a supplement or amendment to such
prospectus and file it with the SEC (in any event no later than ten (10) days
following notice of the occurrence of such event to each Participating Holder,
the sales or placement agent and the managing underwriter) so that after
delivery of such prospectus, as so amended or supplemented, to the purchasers of
such Registrable Securities, such prospectus, as so amended or supplemented,
shall not contain an untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances under which they were
made;

     

    
      
         

      

      
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    (vi)           Notification of Stop Orders;
Suspensions of Qualifications and Exemptions. Promptly notify in writing
the Participating Holders, the sales or placement agent, if any, therefor and
the managing underwriter of the securities being sold of the issuance by the SEC
of (A) any stop order issued or threatened to be issued by the SEC or (B) any
notification with respect to the suspension of the qualification or exemption
from qualification of any of the Registrable Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for such
purpose, and the Company agrees to use its reasonable best efforts to (x)
prevent the issuance of any such stop order, and in the event of such issuance,
to obtain the withdrawal of any such stop order and (y) obtain the withdrawal of
any order suspending or preventing the use of any related prospectus or
suspending the qualification of any Registrable Securities included in such
Registration Statement for sale in any jurisdiction at the earliest practicable
date;

     

    (vii)          Amendments and Supplements;
Acceleration. Prepare and file with the SEC such amendments, including
post-effective amendments to each Registration Statement as may be necessary to
keep such Registration Statement continuously effective for the applicable time
period required hereunder and, if applicable, file any Registration Statements
pursuant to Rule 462(b) under the Securities Act; cause the related prospectus
to be supplemented by any required prospectus supplement, and as so supplemented
to be filed pursuant to Rule 424 (or any similar provisions then in force)
promulgated under the Securities Act; and comply with the provisions of the
Securities Act and the Exchange Act with respect to the disposition of all
securities covered by such Registration Statement during such period in
accordance with the intended methods of disposition by the sellers thereof set
forth in such Registration Statement as so amended or in such prospectus as so
supplemented. If a majority in interest of the Participating Holders so request,
request acceleration of effectiveness of the Registration Statement from the SEC
and any post-effective amendments thereto, if any are filed; provided that at
the time of such request, the Company does not in good faith believe that it is
necessary to amend further the Registration Statement in order to comply with
the provisions of this subparagraph. If the Company wishes to further amend the
Registration Statement prior to requesting acceleration, it shall have five (5)
days to so amend prior to requesting acceleration;

     

    (viii)         Copies. Furnish as
promptly as practicable to each Participating Holder and Inspector prior to
filing a Registration Statement or any supplement or amendment thereto, copies
of such Registration Statement, supplement or amendment as it is proposed to be
filed, and after such filing such number of copies of such Registration
Statement, each amendment and supplement thereto (in each case including all
exhibits thereto), the prospectus included in such Registration Statement
(including each preliminary prospectus) and such other documents as each such
Participating Holder or underwriter may reasonably request in order to
facilitate the disposition of the Registrable Securities owned by such
Participating Holder;

     

    
      
         

      

      
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    (ix)           Blue Sky. Use its
reasonable best efforts to, prior to any public offering of the Registrable
Securities, register or qualify (or seek an exemption from registration or
qualifications) such Registrable Securities under such other securities or blue
sky laws of such jurisdictions as any Participating Holder or underwriter may
request, and to continue such qualification in effect in each such jurisdiction
for as long as is permissible pursuant to the laws of such jurisdiction, or for
as long as a Participating Holder or underwriter requests or until all of such
Registrable Securities are sold, whichever is shortest, and do any and all other
acts and things which may be reasonably necessary or advisable to enable any
Participating Holder to consummate the disposition in such jurisdictions of the
Registrable Securities;

     

    (x)           Other Approvals. Use
its reasonable best efforts to obtain all other approvals, consents, exemptions
or authorizations from such governmental agencies or authorities as may be
necessary to enable the Participating Holders and underwriters to consummate the
disposition of Registrable Securities;

     

    (xi)           Agreements. Enter
into customary agreements (including any underwriting agreements in customary
form), and take such other actions as may be reasonably required in order to
expedite or facilitate the disposition of Registrable Securities;

     

    (xii)           “Cold Comfort”
Letter. Obtain a “cold comfort” letter from the Company’s independent
public accountants in customary form and covering such matters of the type
customarily covered by “cold comfort” letters as the managing underwriter may
reasonably request, and reasonably satisfactory to a majority in interest of the
Participating Holders;

     

    (xiii)         Legal Opinion.
Furnish, at the request of any underwriter of Registrable Securities on the date
such securities are delivered to the underwriters for sale pursuant to such
registration, an opinion, dated such date, of counsel representing the Company
for the purposes of such registration, addressed to the Holders, and the
placement agent or sales agent, if any, thereof and the underwriters, if any,
thereof, covering such legal matters with respect to the registration in respect
of which such opinion is being given as such underwriter may reasonably request
and as are customarily included in such opinions, and reasonably satisfactory to
a majority in interest of the Participating Holders;

     

    (xiv)         SEC Compliance; Earnings
Statement. Use its reasonable best efforts to comply with all applicable
rules and regulations of the SEC and make available to its shareholders, as soon
as reasonably practicable, but no later than fifteen (15) months after the
effective date of any Registration Statement, an earnings statement covering a
period of twelve (12) months beginning after the effective date of such
Registration Statement, in a manner which satisfies the provisions of Section
11(a) of the Securities Act and Rule 158 thereunder;

     

    
      
         

      

      
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    (xv)           Certificates;
Closing. Provide officers’ certificates and other customary closing
documents;

     

    (xvi)         FINRA. Cooperate with
each Participating Holder and each underwriter participating in the disposition
of such Registrable Securities and underwriters’ counsel in connection with any
filings required to be made with FINRA;

     

    (xvii)        Road Show. Cause
appropriate officers as are requested by a managing underwriter to participate
in a “road show” or similar marketing effort being conducted by such underwriter
with respect to an underwritten public offering;

     

    (xviii)       Listing. Use its
reasonable best efforts to cause all such Registrable Securities to be listed on
each securities exchange on which similar securities issued by the Company are
then listed and if not so listed, to be listed on the NASDAQ automated quotation
system;

     

    (xix)          Transfer Agent, Registrar
and CUSIP. Provide a transfer agent and registrar for all Registrable
Securities registered pursuant hereto and a CUSIP number for all such
Registrable Securities, in each case, no later than the effective date of such
registration;

     

    (xx)           Private Sales. Use
its reasonable best efforts to assist a Holder in facilitating private sales of
Registrable Securities by, among other things, providing officers’ certificates
and other customary closing documents reasonably requested by a Holder;
and

     

    (xxi)          Reasonable Best
Efforts. Use its reasonable best efforts to take all other actions
necessary to effect the registration of the Registrable Securities contemplated
hereby.

     

    (b)           Seller Information.
The Company may require each Participating Holder as to which any registration
of such Holder’s Registrable Securities is being effected to furnish to the
Company such information regarding such Holder and such Holder’s method of
distribution of such Registrable Securities as the Company may from time to time
reasonably request in writing. If a Holder refuses to provide the Company with
any of such information on the grounds that it is not necessary to include such
information in the Registration Statement, the Company may exclude such
Participating Holder’s Registrable Securities from the Registration Statement if
the Company provides such Participating Holder with an opinion of counsel to the
effect that such information must be included in the Registration Statement and
such Participating Holder continues thereafter to withhold such information. The
exclusion of a Participating Holder’s Registrable Securities shall not affect
the registration of the other Registrable Securities to be included in the
Registration Statement.

     

    
      
         

      

      
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    (c)           Notice to
Discontinue. Each Participating Holder whose Registrable Securities are
covered by a Registration Statement filed pursuant to this Agreement agrees
that, upon receipt of written notice from the Company of the happening of any
event of the kind described in Section 2.5(a)(v), such Participating Holder
shall forthwith discontinue the disposition of Registrable Securities until such
Participating Holder’s receipt of the copies of the supplemented or amended
prospectus contemplated by Section 2.5(a)(v) or until it is advised in writing
by the Company that the use of the prospectus may be resumed and has received
copies of any additional or supplemental filings which are incorporated by
reference into the prospectus, and, if so directed by the Company in the case of
an event described in Section 2.5(a)(v), such Participating Holder shall deliver
to the Company (at the Company’s expense) all copies, other than permanent file
copies then in such Participating Holder’s possession, of the prospectus
covering such Registrable Securities which is current at the time of receipt of
such notice. If the Company shall give any such notice, the Company shall extend
the period during which such Registration Statement is to be maintained
effective by the number of days during the period from and including the date of
the giving of such notice pursuant to Section 2.5(a)(v) to and including the
date when the Participating Holder shall have received the copies of the
supplemented or amended prospectus contemplated by, and meeting the requirements
of, Section 2.5(a)(v).

     

    Section
2.6      REGISTRATION
EXPENSES. Except as otherwise provided herein, all Registration Expenses
shall be borne by the Company. All Selling Expenses relating to Registrable
Securities registered shall be borne by the Participating Holders of such
Registrable Securities pro rata on the basis of the number of Registrable
Securities so registered.

     

    Section
2.7       INDEMNIFICATION

     

    (a)           Indemnification by the
Company. The Company agrees, notwithstanding termination of this
Agreement, to indemnify and hold harmless to the fullest extent permitted by
law, each Holder, each of their directors, officers, employees, advisors, agents
and general or limited partners (and the directors, officers, employees,
advisors and agents thereof), their respective Affiliates and each Person who
controls (within the meaning of the Securities Act or the Exchange Act) any of
such Persons, and each underwriter and each Person who controls (within the
meaning of the Securities Act or the Exchange Act) any underwriter
(collectively, “Holder
Indemnified Parties”) from and against any and all losses, claims,
damages, expenses (including, without limitation, reasonable costs of
investigation and fees, disbursements and other charges of counsel, any amounts
paid in settlement effected with the Company’s consent, which consent shall not
be unreasonably withheld or delayed and any costs incurred in enforcing the
Company’s indemnification obligations hereunder) or other liabilities
(collectively, “Losses”)
to which any such Holder Indemnified Party may become subject under the
Securities Act, Exchange Act, any other federal law, any state or common law or
any rule or regulation promulgated thereunder or otherwise, insofar as such
Losses (or actions or proceedings, whether commenced or threatened, in respect
thereof) are resulting from or arising out of or based upon (i) any untrue, or
alleged untrue, statement of a material fact contained in any Registration
Statement, prospectus or preliminary prospectus (as amended or supplemented) or
any document incorporated by reference in any of the foregoing or resulting from
or arising out of or based upon any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein (in the case of a prospectus, in light of the circumstances
under which they were made), not misleading or (ii) any violation by the Company
of the Securities Act, Exchange Act, any other federal law, any state or common
law or any rule or regulation promulgated thereunder or otherwise incident to
any registration, qualification or compliance and in any such case, the Company
will promptly reimburse each such Holder Indemnified Party for any legal and any
other Losses reasonably incurred in connection with investigating, preparing or
defending any such claim, loss, damage, liability, action or investigation or
proceeding (collectively, a “Claim”).
Such indemnity obligation shall remain in full force and effect regardless of
any investigation made by or on behalf of the Holder Indemnified Parties and
shall survive the transfer of Registrable Securities by such Holder Indemnified
Parties.

     

    
      
         

      

      
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    (b)           Indemnification by
Holders. In connection with any proposed registration in which a Holder
is participating pursuant to this Agreement, each such Holder shall furnish to
the Company in writing such information with respect to such Holder as the
Company may reasonably request or as may be required by law for use in
connection with any Registration Statement or prospectus or preliminary
prospectus to be used in connection with such registration and each Holder
agrees, severally and not jointly, to indemnify and hold harmless the Company,
any underwriter retained by the Company and their respective directors,
officers, partners, employees, advisors and agents, their respective Affiliates
and each Person who controls (within the meaning of the Securities Act or the
Exchange Act) any of such Persons to the same extent as the foregoing indemnity
from the Company to the Holder Indemnified Parties as set forth in Section
2.7(a) (subject to the exceptions set forth in the foregoing indemnity, the
proviso to this sentence and applicable law), but only with respect to any such
information furnished in writing by such Holder expressly for use therein;
provided, however, that the liability of any Holder under this Section 2.7(b)
shall be limited to the amount of the net proceeds received by such Holder in
the offering giving rise to such liability. Such indemnity obligation shall
remain in full force and effect regardless of any investigation made by or on
behalf of the Holder Indemnified Parties (except as provided above) and shall
survive the transfer of Registrable Securities by such Holder.

     

    
      
         

      

      
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    (c)           Conduct of Indemnification
Proceedings. Any Person entitled to indemnification hereunder (the “Indemnified
Party”) agrees to give prompt written notice to the indemnifying party
(the “Indemnifying
Party”) after the receipt by the Indemnified Party of any written notice
of the commencement of any action, suit, proceeding or investigation or threat
thereof made in writing for which the Indemnified Party intends to claim
indemnification or contribution pursuant to this Agreement; provided, however,
that, the failure so to notify the Indemnifying Party shall not relieve the
Indemnifying Party of any liability that it may have to the Indemnified Party
hereunder unless and to the extent such Indemnifying Party is materially
prejudiced by such failure. If notice of commencement of any such action is
given to the Indemnifying Party as above provided, the Indemnifying Party shall
be entitled to participate in and, to the extent it may wish, jointly with any
other Indemnifying Party similarly notified, to assume the defense of such
action at its own expense, with counsel chosen by it and reasonably satisfactory
to such Indemnified Party. The Indemnified Party shall have the right to employ
separate counsel in any such action and participate in the defense thereof, but
the fees and expenses of such counsel shall be paid by the Indemnified Party
unless (i) the Indemnifying Party agrees to pay the same, (ii) the Indemnifying
Party fails to assume the defense of such action with counsel satisfactory to
the Indemnified Party in its reasonable judgment or (iii) the named parties to
any such action (including, but not limited to, any impleaded parties)
reasonably believe that the representation of such Indemnified Party and the
Indemnifying Party by the same counsel would be inappropriate under applicable
standards of professional conduct. In the case of clause (ii) above and (iii)
above, the Indemnifying Party shall not have the right to assume the defense of
such action on behalf of such Indemnified Party. No Indemnifying Party shall be
liable for any settlement entered into without its written consent, which
consent shall not be unreasonably withheld. No Indemnifying Party shall, without
the written consent of the Indemnified Party, effect the settlement or
compromise of, or consent to the entry of any judgment with respect to, any
pending or threatened action or claim in respect of which indemnification or
contribution may be sought hereunder (whether or not the Indemnified Party is an
actual or potential party to such action or claim) unless such settlement,
compromise or judgment (A) includes an unconditional release of the Indemnified
Party from all liability arising out of such action or claim and (B) does not
include a statement as to, or an admission of, fault, culpability or a failure
to act by or on behalf of any Indemnified Party. The rights afforded to any
Indemnified Party hereunder shall be in addition to any rights that such
Indemnified Party may have at common law, by separate agreement or
otherwise.

     

    (d)           Contribution. If the
indemnification provided for in this Section 2.7 from the Indemnifying Party is
unavailable or insufficient to hold harmless an Indemnified Party in respect of
any Losses referred to herein, then the Indemnifying Party, in lieu of
indemnifying the Indemnified Party, shall contribute to the amount paid or
payable by the Indemnified Party as a result of such Losses in such proportion
as is appropriate to reflect the relative fault of the Indemnifying Party and
the Indemnified Party, as well as any other relevant equitable considerations.
The relative faults of the Indemnifying Party and Indemnified Party shall be
determined by reference to, among other things, whether any action in question,
including any untrue or alleged untrue statement of a material fact or omission
or alleged omission to state a material fact, was made by, or relates to
information supplied by, such Indemnifying Party or Indemnified Party, and the
Indemnifying Party’s and Indemnified Party’s relative intent, knowledge, access
to information and opportunity to correct or prevent such action; provided,
however, that the liability of any Holder under this Section 2.7(d) shall be
limited to the amount of the net proceeds received by such Holder in the
offering giving rise to such liability. The amount paid or payable by a party as
a result of the Losses or other liabilities referred to above shall be deemed to
include, subject to the limitations set forth in Sections 2.7(a), 2.7(b) and
2.7(c), any legal or other fees, charges or expenses reasonably incurred by such
party in connection with any investigation or proceeding.  The parties
hereto agree that it would not be just and equitable if contribution pursuant to
this Section 2.7(d) were determined by pro rata allocation or by any other
method of allocation which does not take account of the equitable considerations
referred to in the immediately preceding paragraph. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution pursuant to this Section
2.7(d).

     

    
      
         

      

      
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    Section
2.8      RULE 144 AND RULE 144A;
OTHER EXEMPTIONS. With a view to making available to the Holders the
benefits of Rule 144 and Rule 144A promulgated under the Securities Act and
other rules and regulations of the SEC that may at any time permit a Holder to
sell securities of the Company to the public without registration, the Company
covenants that it shall (i) file in a timely manner all reports and other
documents required to be filed by it under the Securities Act and the Exchange
Act and the rules and regulations adopted by the SEC thereunder and (ii) take
such further action as each Holder may reasonably request (including, but not
limited to, providing any information necessary to comply with Rule 144 and Rule
144A, if available with respect to resales of the Registrable Securities under
the Securities Act), at all times from and after the date hereof, all to the
extent required from time to time to enable such Holder to sell Registrable
Securities without registration under the Securities Act within the limitation
of the exemptions provided by (x) Rule 144 and Rule 144A (if available with
respect to resales of the Registrable Securities) under the Securities Act, as
such rules may be amended from time to time or (y) any other rules or
regulations now existing or hereafter adopted by the SEC. Upon the written
request of a Holder, the Company shall deliver to the Holder a written statement
as to whether it has complied with such requirements.

     

    Section
2.9     CERTAIN LIMITATIONS ON
REGISTRATION RIGHTS. No Holder may participate in any Registration
Statement hereunder unless such Holder completes and executes all
questionnaires, powers of attorney, indemnities, underwriting agreements, and
other documents reasonably required under the terms of such underwriting
arrangements, and agrees to sell such Holder’s Registrable Securities on the
basis provided in any underwriting agreement approved by the Holder or Holders
entitled hereunder to approve such arrangements; provided, however, that no such
Holder shall be required to make any representations or warranties to the
Company or the underwriters in connection with any such registration other than
representations and warranties as to (i) such Holder’s ownership of its
Registrable Securities to be sold or transferred, (ii) such Holder’s power and
authority to effect such transfer and (iii) such matters pertaining to
compliance with applicable securities laws as may be reasonably requested. Such
Holders of Registrable Securities to be sold by such underwriters may, at their
option, require that any or all of the representations and warranties by, and
the other agreements on the part of the Company to and for the benefit of such
underwriters, shall also be made to and for the benefit of such Holders and that
any or all of the conditions precedent to the obligations of the underwriters
under the underwriting agreement be conditions precedent to the obligations of
the Holders.

     

    Section
2.10   LIMITATIONS ON SUBSEQUENT
REGISTRATION RIGHTS. The Company represents and warrants that other than
pursuant to the Existing Registration Rights Agreement it has not granted
registration rights prior to the date hereof and agrees that from and after the
date hereof, it shall not, without the prior written consent of the Holders of
at least fifty percent (50%) of the Registrable Securities then outstanding,
enter into any agreement (or amendment or waiver of the provisions of any
agreement) with any holder or prospective holder of any securities of the
Company that would grant such holder registration rights that are more
favorable, pari passu or senior to those granted to the Investors
hereunder.

     

    
      
         

      

      
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    Section
2.11     TRANSFER OF REGISTRATION
RIGHTS. The rights of a Holder hereunder may be transferred or assigned
in connection with a transfer of Registrable Securities to (i) any Affiliate of
a Holder, (ii) any subsidiary, parent, partner, retired partner, limited
partner, shareholder or member of a Holder or (iii) any family member or trust
for the benefit of any Holder, or (iv) any transferee who, after such transfer,
holds at least one thousand (1,000) Registrable Securities (as adjusted for any
stock dividends, stock splits, combinations and reorganizations and similar
events). Notwithstanding the foregoing, such rights may only be transferred or
assigned provided that all of the following additional conditions are satisfied:
(a) such transfer or assignment is effected in accordance with applicable
securities laws; (b) such transferee or assignee agrees in writing to become
subject to the terms of this Agreement; and (c) the Company is given written
notice by such Holder of such transfer or assignment, stating  the
name and address of the transferee or assignee and identifying the Registrable
Securities with respect to which such rights are being transferred or
assigned.

     

    ARTICLE
III

     

    GENERAL
PROVISIONS

     

    Section
3.1       SURVIVAL OF
AGREEMENTS. All covenants, agreements, representations and warranties
made in the LLC Agreement or any certificate or instrument delivered to the
Investors pursuant to or in connection with the LLC Agreement shall survive the
execution and delivery of the LLC Agreement and all statements contained in any
certificate or other instrument delivered by the Company hereunder or thereunder
or in connection herewith or therewith shall be deemed to constitute
representations and warranties made by the Company.

     

    Section
3.2       ENTIRE AGREEMENT.
This Agreement and any certificates, documents, instruments and writings that
are delivered pursuant hereto, constitutes the entire agreement and
understanding of the parties in respect of the subject matter hereof and
supersedes all prior understandings, agreements or representations by or among
the parties, written or oral, to the extent they relate in any way to the
subject matter hereof.

     

    Section
3.3       ASSIGNMENT; BINDING
EFFECT. Except as otherwise provided in Section 2.11, no party may assign
either this Agreement or any of its rights, interests or obligations hereunder
without the prior written approval of the other parties; provided that without
the consent of any other party hereto the rights of the Investors hereunder are
assignable to an assignee or transferee who acquires all of the Units held by an
Investor, as the case may be. All of the terms, agreements, covenants,
representations, warranties and conditions of this Agreement are binding upon,
and inure to the benefit of and are enforceable by, the parties and their
respective successors and permitted assigns.

     

    
      
         

      

      
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    Section
3.4        NOTICES. All notices,
requests and other communications provided for or permitted to be given under
this Agreement must be in writing and shall be given by personal delivery, by
certified or registered United States mail (postage prepaid, return receipt
requested), by a nationally recognized overnight delivery service for next day
delivery, or by facsimile transmission, to the address listed for each party in
the LLC Agreement (or to such other address as any party may give in a notice
given in accordance with the provisions hereof). All notices, requests or other
communications will be effective and deemed given only as follows: (i) if given
by personal delivery, upon such personal delivery, (ii) if sent by certified or
registered mail, on the fifth business day after being deposited in the United
States mail, (iii) if sent for next day delivery by overnight delivery service,
on the date of delivery as confirmed by written confirmation of delivery, (iv)
if sent by facsimile, upon the transmitter’s confirmation of receipt of such
facsimile transmission, except that if such confirmation is received after 5:00
p.m. (in the recipient’s time zone) on a business day, or is received on a day
that is not a business day, then such notice, request or communication will not
be deemed effective or given until the next succeeding business day. Notices,
requests and other communications sent in any other manner, including by
electronic mail, will not be effective.

     

    Section
3.5       SPECIFIC PERFORMANCE;
REMEDIES. Each party acknowledges and agrees that the other parties would
be damaged irreparably if any provision of this Agreement were not performed in
accordance with its specific terms or were otherwise breached. Accordingly, the
parties will be entitled to an injunction or injunctions to prevent breaches of
the provisions of this Agreement and to enforce specifically this Agreement and
its provisions in any action or proceeding instituted in any state or federal
court sitting in New York City, New York having jurisdiction over the parties
and the matter, in addition to any other remedy to which they may be entitled,
at law or in equity. Except as expressly provided herein, the rights,
obligations and remedies created by this Agreement are cumulative and in
addition to any other rights, obligations or remedies otherwise available at law
or in equity. Except as expressly provided herein, nothing herein will be
considered an election of remedies.

     

    Section
3.6        SUBMISSION TO JURISDICTION;
WAIVER OF JURY TRIAL.

     

    (a)           Submission
to Jurisdiction. Any action, suit or proceeding seeking to enforce any provision
of, or based on any matter arising out of or in connection with, this Agreement
or the transactions contemplated hereby shall only be brought in any state or
federal court sitting in New York City, New York, and each party consents to the
exclusive jurisdiction and venue of such courts (and of the appropriate
appellate courts therefrom) in any such action, suit or proceeding and
irrevocably waives, to the fullest extent permitted by law, any objection that
it may now or hereafter have to the laying of the venue of any such, action,
suit or proceeding in any such court or that any such action, suit or proceeding
brought in any such court has been brought in an inconvenient forum. Process in
any such action, suit or proceeding may be served on any party anywhere in the
world, whether within or without the jurisdiction of any such court. Without
limiting the foregoing, service of process on such party as provided in Section
3.4 shall be deemed effective service of process on such party.

     

    (b)           Waiver
of Jury Trial. EACH PARTY ACKNOWLEDGES THAT ANY DISPUTE THAT MAY ARISE OUT OF OR
RELATING TO THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT
ISSUES, AND THEREFORE SUCH PARTY HEREBY EXPRESSLY WAIVES ITS RIGHT TO JURY TRIAL
OF ANY DISPUTE BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OTHER
AGREEMENTS RELATING HERETO OR ANY DEALINGS AMONG THEM RELATING TO THE
TRANSACTIONS CONTEMPLATED HEREBY. THE SCOPE OF THIS WAIVER IS INTENDED TO
ENCOMPASS ANY AND ALL ACTIONS, SUITS AND PROCEEDINGS THAT RELATE TO THE SUBJECT
MATTER OF THE TRANSACTIONS CONTEMPLATED HEREBY, INCLUDING CONTRACT CLAIMS, TORT
CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.
EACH PARTY REPRESENTS THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT
IN THE EVENT OF ANY ACTION, SUIT OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING
WAIVER, (ii) SUCH PARTY UNDERSTANDS AND WITH THE ADVICE OF COUNSEL
HAS  CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (iii) SUCH PARTY
MAKES THIS WAIVER VOLUNTARILY, AND (iv) SUCH PARTY HAS BEEN INDUCED TO ENTER
INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
REPRESENTATIONS IN THIS SECTION 3.6(b).

     

    
      
         

      

      
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    Section
3.7        GOVERNING LAW. This
Agreement will be governed by and construed in accordance with the laws of the
State of Delaware, without giving effect to any choice of law
principles.

     

    Section
3.8        HEADINGS. The article
and section headings contained in this Agreement are inserted for convenience
only and will not affect in any way the meaning or interpretation of this
Agreement.

     

    Section
3.9        AMENDMENTS. This
Agreement may not be amended or modified without the written consent of the
Company and the Holders of at least fifty percent (50%) of the Registrable
Securities then outstanding; provided, however, that any amendment or
modification that adversely affects the rights of one or more Holders of
Registrable Securities under this Agreement, in their capacity as such, in a
manner that is materially different from the manner in which such amendment or
modification affects the rights of other Holders of Registrable Securities under
this Agreement, in their capacity as such, shall require the consent of each
such adversely affected Holder.

     

    Section
3.10      EXTENSIONS; WAIVERS.
Any party may, for itself only, (a) extend the time for the performance of any
of the obligations of any other party under this Agreement, (b) waive any
inaccuracies in the representations and warranties of any other party contained
herein or in any document delivered pursuant hereto and (c) waive compliance
with any of the agreements or conditions for the benefit of such party contained
herein. Any such extension or waiver will be valid only if set forth in a
writing signed by the party to be bound thereby. No waiver by any party of any
default, misrepresentation or breach of warranty or covenant hereunder, whether
intentional or not, may be deemed to extend to any prior or subsequent default,
misrepresentation or breach of warranty or covenant hereunder or affect in any
way any rights arising because of any prior or subsequent such occurrence.
Neither the failure nor any delay on the part of any party to exercise any right
or remedy under this Agreement shall operate as a waiver thereof, nor shall any
single or partial exercise of any right or remedy preclude any other or further
exercise of the same or of any other right or remedy.

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    Section
3.11      SEVERABILITY. The
provisions of this Agreement will be deemed severable and the invalidity or
unenforceability of any provision will not affect the validity or enforceability
of the other provisions hereof; provided that if any provision of this
Agreement, as applied to any party or to any circumstance, is judicially
determined not to be enforceable in accordance with its terms, the parties agree
that the court judicially making such determination may modify the provision in
a manner consistent with its objectives such that it is enforceable, and/or to
delete specific words or phrases, and in its modified form, such provision will
then be enforceable and will be enforced.

     

    Section
3.12      COUNTERPARTS;
EFFECTIVENESS. This Agreement may be executed in two or more
counterparts, each of which will be deemed an original but all of which together
will constitute one and the same instrument. This Agreement will become
effective when one or more counterparts have been signed by each of the parties
and delivered to the other parties. For purposes of determining whether a party
has signed this Agreement or any document contemplated hereby or any amendment
or waiver hereof, only a handwritten original signature on a paper document or a
facsimile copy of such a handwritten original signature shall constitute a
signature, notwithstanding any law relating to or enabling the creation,
execution or delivery of any contract or signature by electronic
means.

     

    Section
3.13     CONSTRUCTION. This
Agreement has been freely and fairly negotiated among the parties. If an
ambiguity or question of intent or interpretation arises, this Agreement will be
construed as if drafted jointly by the parties and no presumption or burden of
proof will arise favoring or disfavoring any party because of the authorship of
any provision of this Agreement. Any reference to any law will be deemed to
refer to such law as in effect on the date hereof and all rules and regulations
promulgated thereunder, unless the context requires otherwise. The words
“include,” “includes,” and “including” will be deemed to be followed by “without
limitation.” Pronouns in masculine, feminine, and neuter genders will be
construed to include any other gender, and words in the singular form will be
construed to include the plural and vice versa, unless the context otherwise
requires. The words “this Agreement,” “herein,” “hereof,” “hereby,” “hereunder,”
and words of similar import refer to this Agreement as a whole and not to any
particular subdivision unless expressly so limited. The parties intend that each
representation, warranty, and covenant contained herein will have independent
significance. If any party has breached any covenant contained herein in any
respect, the fact that there exists another covenant relating to the same
subject matter (regardless of the relative levels of specificity) which the
party has not breached will not detract from or mitigate the fact that the party
is in breach of the first covenant. Time is of the essence in the performance of
this Agreement.

     

    Section
3.14      ATTORNEYS’ FEES. If
any dispute among any parties arises in connection with this Agreement, the
prevailing party in the resolution of such dispute in any action or proceeding
will be entitled to an order awarding full recovery of reasonable attorneys’
fees and expenses, costs and expenses (including experts’ fees and expenses and
the costs of enforcing this Section 3.14) incurred in connection therewith,
including court costs, from the non-prevailing party.

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    Section
3.15      ADJUSTMENTS FOR STOCK
SPLITS, ETC. Wherever in this Agreement there is a reference to a
specific number of shares of the Company’s capital stock of any class or series,
then, upon the occurrence of any subdivision, combination or stock dividend of
such class or series of stock, the specific number of shares so referenced in
this Agreement will automatically be proportionally adjusted to reflect the
effect of such subdivision, combination or stock dividend on the outstanding
shares of such class or series of stock.

     

    [SIGNATURE
PAGES FOLLOW]

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

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

     

    
       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      	 
      	
                                                              BIOFUEL
      ENERGY CORP.

                                                            
	 
      	 
      	 
      
	 
      	 
      	
                                                              By:

                                                            	/s/
      Kelly G. Maguire
	 
      	 
      	 
      	
                                                              Kelly
      G. Maguire

                                                            
	 
      	 
      	 
      	
                                                              Executive
      V.P. and Chief Financial
Officer

                                                            

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	 
      	
                                        GREENLIGHT
      CAPITAL, LP

                                      
	 
      	 
      	 
      
	 
      	
                                        By:

                                      	
                                        Greenlight
      Capital, LLC, its general

                                        partner

                                      
	 
      	 
      	 
      
	 
      	 
      	
                                        By:

                                      	

                                        /s/
      Daniel Roitman

                                      
	 
      	 
      	 
      	
                                        Daniel
      Roitman

                                      
	 
      	 
      	 
      	
                                        Chief
      Operating Officer

                                      
	 
      	 
      	 
      
	 
      	
                                        GREENLIGHT
      CAPITAL QUALIFIED,
L.P.

                                      
	 
      	 
      	 
      
	 
      	
                                        By:

                                      	
                                        Greenlight
      Capital, LLC, its general 

                                      
	 
      	partner
	 
      	 
      	
                                        By:

                                      	

                                        /s/
      Daniel Roitman

                                      
	 
      	 
      	 
      	
                                        Daniel
      Roitman

                                      
	 
      	 
      	 
      	
                                        Chief
      Operating
Officer

                                      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    Signature
Pages to Amended and Restated Registration Rights Agreement

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                
                  	 
      	
                          GREENLIGHT
      REINSURANCE, LTD.

                        
	 
      	 
      	 
      	 
      
	 
      	
                          By:

                        	
                          DME
      Advisors, L.P., its investment
manager

                        
	 
      	 
      	 
      	 
      
	 
      	 
      	
                          By:

                        	

                          /s/
      Daniel Roitman

                        
	 
      	 
      	 
      	
                          Daniel
      Roitman

                        
	 
      	 
      	 
      	
                          Chief
      Operating Officer

                        
	 
      	 
      	 
      	 
      
	 
      	
                          GREENLIGHT
      CAPITAL OFFSHORE

                          PARTNERS

                        
	 
      	 
      
	 
      	
                          By:

                        	
                          Greenlight
      Capital, Inc., its

                        
	 
      	 
      	
                          investment
      manager

                        
	 
      	 
      	 
      	 
      
	 
      	 
      	
                          By:

                        	

                          /s/
      Daniel Roitman

                        
	 
      	 
      	 
      	
                          Daniel
      Roitman

                        
	 
      	 
      	 
      	
                          Chief
      Operating Officer

                        
	 
      	 
      	 
      	 
      
	 
      	
                          GREENLIGHT
      CAPITAL (GOLD), LP

                        
	 
      	 
      
	 
      	
                          By:

                        	
                          DME
      Management GP, LLC, its

                          general
      partner

                        
	 
      	 
      	 
      	 
      
	 
      	 
      	
                          By:

                        	

                          /s/
      Daniel Roitman

                        
	 
      	 
      	 
      	
                          Daniel
      Roitman

                        
	 
      	 
      	 
      	
                          Chief
      Operating Officer

                        
	 
      	 
      	 
      	 
      
	 
      	
                          GREENLIGHT
      CAPITAL OFFSHORE

                          MASTER
      (GOLD), LTD.

                        
	 
      	 
      
	 
      	
                          By:

                        	
                          DME
      Capital Management, LP, its

                          investment
      manager

                        
	 
      	 
      	 
      	 
      
	 
      	 
      	
                          By:

                        	

                          /s/
      Daniel Roitman

                        
	 
      	 
      	 
      	
                          Daniel
      Roitman

                        
	 
      	 
      	 
      	
                          Chief Operating
      Officer

                        

                

              

            

          

        

      

    

    

    Signature
Pages to Amended and Restated Registration Rights Agreement

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        	 
      	
                                                                THIRD
      POINT PARTNERS LP

                                                              
	 
      	 
      
	 
      	
                                                                By:

                                                              	
                                                                Third
      Point Advisors, L.L.C., its

                                                                general
      partner

                                                              
	 
      	 
      	 
      
	 
      	 
      	
                                                                By:

                                                              	/s/
      Josh Targoff
	 
      	 
      	 
      	
                                                                Josh
      Targoff

                                                              
	 
      	 
      	 
      	
                                                                Chief
      Operating Officer and General Counsel

                                                              
	 
      	 
      	 
      
	 
      	
                                                                THIRD
      POINT PARTNERS

                                                                QUALIFIED,
      L.P.

                                                              
	 
      	 
      
	 
      	
                                                                By:

                                                              	
                                                                Third
      Point Advisors, L.L.C., its

                                                                general
      partner

                                                              
	 
      	 
      	 
      
	 
      	 
      	
                                                                By:

                                                              	

                                                                /s/
      Josh Targoff

                                                              
	 
      	 
      	 
      	
                                                                

                                                                  Josh
      Targoff

                                                                

                                                              
	 
      	 
      	 
      	
                                                                

                                                                  Chief
      Operating Officer and General Counsel

                                                                

                                                              
	 	 	 	 
	 	

                                                                THIRD
      POINT LOAN LLC

                                                              
	 	 	 	 
	 	 	By:	

                                                                /s/
      Josh Targoff

                                                              
	 	 	 	

                                                                Josh
      Targoff

                                                              
	 	 	 	

                                                                Chief
      Operating Officer and General Counsel

                                                              
	 
      	 
      	 
      
	 
      	

                                                                /s/
      Daniel S. Loeb

                                                              
	 
      	
                                                                Daniel
      S. Loeb

                                                              
	 
      	 
      
	 
      	

                                                                /s/
      Lawrence J. Bernstein

                                                              
	 
      	
                                                                Lawrence
      J.
Bernstein

                                                              

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    Signature
Pages to Amended and Restated Registration Rights Agreement

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Schedule
A

     

    [Parties
to Existing Registration Rights Agreement]Exhibit
10.30

     

    AMENDMENT AND RESTATEMENT to
the Rights Offering Letter Agreement among Greenlight Capital, LP, Greenlight
Capital Qualified, LP, Greenlight Capital (Gold), LP, Greenlight Capital
Offshore Partners, Greenlight Capital Offshore Master (Gold), Ltd., Greenlight
Reinsurance, Ltd., Third Point Loan LLC and BioFuel Energy Corp. dated as of
September 24, 2010 (the “Original
ROLA”), is entered into as of December 14, 2010 (this “Letter
Agreement”).

     

    WHEREAS, Greenlight, BFE Corp. and
Third Point Advisors, LLC (each as defined below) desire to amend and restate
the Original ROLA pursuant to Paragraph 18 (Amendment; Waiver;
Counterparts) of the Original ROLA.

     

    NOW, THEREFORE, it is hereby agreed
that the Original ROLA is hereby amended and restated in its entirety to read as
follows:

     

    This Letter Agreement is entered into
pursuant to and in connection with that certain Loan Agreement, dated as of
September 24, 2010 (the “Loan
Agreement”), by and among BioFuel Energy Corp. (“BFE
Corp.”), Greenlight Capital Offshore Partners, Greenlight Capital, L.P.,
Greenlight Capital Qualified, L.P., Greenlight Reinsurance, Ltd. (collectively,
“Greenlight”
or the “Greenlight
Parties”), the other lenders identified as lenders on Schedule 1.1(A)
thereto (together with Greenlight, the “Lenders”),
and Greenlight APE, LLC, in its capacity as administrative agent for the
Lenders.  Under the Loan Agreement, the Lenders have made a term loan
to BFE Corp. in the aggregate principal amount of $19,420,620 (the “Bridge
Loan”).

     

    This
Letter Agreement sets forth the parties’ respective obligations with respect to
a registered rights offering described herein (the “Rights
Offering”) of rights to purchase depositary shares (“Depositary
Shares”), each representing a fractional interest in a share of Series A
Non-Voting Convertible Preferred Stock of BFE Corp. (“Series A
Non-Voting Convertible Preferred Stock”).  On October 18, 2010,
BFE Corp. filed a Registration Statement on Form S-1 for the Rights Offering
(the “Registration
Statement”) with the Securities and Exchange Commission (the “Commission”).  The
characteristics of the Series A Non-Voting Convertible Preferred Stock are more
fully described on Exhibit A to this
Letter Agreement.  Concurrent with the Rights Offering, BioFuel
Energy, LLC (the “LLC”) will
grant purchase privileges to purchase a new class of preferred membership
interests in the LLC (the “Preferred
Membership Interests”) in a concurrent private placement (the “Concurrent
Private Placement”).  The characteristics of the Preferred
Membership Interests are more fully described on Exhibit B to this
Letter Agreement.  Subject to the terms and conditions of this Letter
Agreement, the parties hereto intend that the Rights Offering and the Concurrent
Private Placement shall provide for anticipated aggregate gross proceeds
sufficient to fully pay off, at a minimum, all principal and accrued but unpaid
interest of the Bridge Loan and the Mezzanine Loan Agreement (as defined in the
Loan Agreement) and the Cargill Payment (as defined below).

     

    In
consideration of the premises and respective covenants and agreements set forth
in this Letter Agreement and other good and valuable consideration the receipt
and sufficiency of which are hereby acknowledged, and intending to be legally
bound, the parties agrees as follows:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    1.           Registration
Statement.  BFE Corp. hereby agrees to use its commercially
reasonable best efforts to commence and complete the Rights Offering, subject to
the terms and conditions set forth herein.  Specifically, BFE Corp.
hereby commits to use its commercially reasonable best efforts to cause the
Registration Statement to be declared effective on or before January 24, 2011
and to remain effective throughout the entire offering period without
interruption.  The offering period for the Rights Offering shall be
equal to five (5) weeks.  Notwithstanding the foregoing, a failure to
cause the Registration Statement to be declared effective on or before January
24, 2011 despite the use of commercially reasonable best efforts to do so by BFE
Corp. shall not be deemed a violation or failure to comply with this Letter
Agreement for purposes of Paragraph 9 hereof nor an Event of Default under the
Loan Agreement; provided, however that if BFE Corp. has not used such
commercially reasonable best efforts then there shall be deemed to be a failure
to have complied with the conditions in Paragraph 9 hereof.

     

    2.           Terms of Rights
Offering.  In connection with the Rights Offering, BFE Corp.
shall distribute at no charge to each of the record holders (the “Eligible Common
Stockholders”) of Common Stock, par value $0.01 per share, of BFE Corp.
(“Common
Stock”) non-transferable subscription rights (the “Rights”)
to purchase Depositary Shares representing 2,000,000 shares of Series A
Non-Voting Convertible Preferred Stock.  Each share of Series A
Non-Voting Convertible Preferred Stock shall be convertible upon the terms
described in Exhibit A to this Letter Agreement into that number of shares of
Common Stock equal to the quotient obtained by dividing the total number of
Depositary Shares actually purchased in the Rights Offering (by the Eligible
Common Stockholders) and pursuant to the Backstop Commitment (by the Backstop
Parties) by 2,000,000 (the “Conversion
Ratio”).  Upon conversion of the Series A Non-Voting Convertible
Preferred Stock, each Depositary Share shall entitle the holder thereof to
receive one share of Common Stock and, upon the distribution of one share of
Common Stock to the holder of each such Depositary Share, each such Depositary
Share shall be automatically cancelled and have no further value.

     

    All
Eligible Common Stockholders shall be eligible to participate in the Rights
Offering by receiving Rights pro rata based on each Eligible Common
Stockholder’s ownership of Common Stock at the record date for the Rights
Offering, and each Eligible Common Stockholder that exercises all of its Rights
may oversubscribe for unsubscribed Rights in an amount equal to up to 100% of
its pro rata share of Rights (the “Over-Subscription
Privileges”).  For purposes of this paragraph, “pro rata”
shall mean (x) the aggregate number of shares of Common Stock held by each
Eligible Common Stockholder divided by (y) the aggregate number of shares of
Common Stock outstanding.  If and to the extent that the Backstop
Parties determine, in their sole discretion after consultation with BFE
Corp., that the exercise of the Over-Subscription Privileges would result
in adverse tax, legal or regulatory consequences to BFE Corp. or any of the
Backstop Parties, BFE Corp. may reduce or eliminate, pro rata for all holders of
Rights, exercise of Over-Subscription Privileges.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Each
Right shall entitle the holder thereof to acquire, at a price equal to the
Rights Price, one Depositary Share.  The “Rights
Price” shall mean $0.56.  The number of Rights offered in the
Rights Offering shall be determined by dividing the Offering Size of the Rights
Offering by the Rights Price.  The “Offering
Size” of the Rights Offering will be an amount equal to the Aggregate
Size multiplied by a fraction, the numerator of which is the total number of
shares of Common Stock outstanding as of the record date and the denominator of
which is the total number of shares of Common Stock outstanding as of the record
date plus the total number of Common Membership Interests held by the Eligible
LLC Members (as defined below) as of the record date.  The “Aggregate
Size” of the Rights Offering and the Concurrent Private Placement will be
an aggregate amount sufficient to (i) repay all amounts owed at the time of
consummation of the Rights Offering, including accrued and unpaid interest,
under the Bridge Loan and the Mezzanine Loan Agreement, (ii) make the Cargill
Payment (as defined below) and (iii) pay certain fees and expenses incurred in
connection with the Rights Offering and the Concurrent Private
Placement.  The “Private Placement
Size” of the Concurrent Private Placement will be an amount equal to the
Aggregate Size minus the Offering Size.

     

    Immediately
following the consummation of the Rights Offering, BFE Corp. will contribute all
proceeds of the Rights Offering to the LLC, and the LLC will issue to BFE Corp.
a number of Preferred Membership Interests equal to the number of Depositary
Shares that BFE Corp. issued in the Rights Offering.

     

    3.           Terms of Concurrent Private
Placement.  In connection with the Concurrent Private
Placement, the LLC shall grant at no charge to each of the record holders other
than BFE Corp. (the “Eligible LLC
Members”) of membership interests in the LLC (“Common Membership
Interests”) purchase privileges (the “LLC Purchase
Privileges”) to purchase Preferred Membership Interests.  Each
Preferred Membership Interest shall be convertible into a Common Membership
Interest upon the terms described in Exhibit B to this Letter Agreement. 
All Eligible LLC Members shall be eligible to participate in the Concurrent
Private Placement by receiving LLC Purchase Privileges pro rata based on each
Eligible LLC Member’s ownership of Common Membership Interests at the record
date for the Concurrent Private Placement, and each Eligible LLC Member that
exercises all of its LLC Purchase Privileges may exercise an additional purchase
privilege for unsubscribed LLC Purchase Privileges in an amount equal to up to
100% of its pro rata share of LLC Purchase Privileges (the “LLC Additional
Purchase Privileges”).  For purposes
of this paragraph, “pro rata”
shall mean (x) the aggregate number of Common Membership Interests held by each
Eligible LLC Member divided by (y) the aggregate number of Common Membership
Interests held by all Eligible LLC Members.

     

    Each LLC
Purchase Privilege shall entitle the applicable Eligible LLC Member to acquire,
at a price equal to the Rights Price, one Preferred Membership Interest. The
number of LLC Purchase Privileges granted in the Concurrent Private Placement
shall be determined by dividing the Private Placement Size of the Concurrent
Private Placement by the Rights Price.  The “Rights
Price” for the Concurrent Private Placement shall be the same as the
Rights Price for the Rights Offering.

     

    4.           Use of
Proceeds.  The proceeds of the Rights Offering, the Concurrent
Private Placement and the Backstop Commitment shall be used by BFE Corp. or the
LLC, as applicable, promptly upon consummation thereof, (i) first, to repay all
amounts owed at such time, including accrued and unpaid interest, under the
Bridge Loan; (ii) second, to repay all amounts owed at such time, including
accrued and unpaid interest, under the Mezzanine Loan Agreement; (iii) third, to
make the Cargill Payment; and (iv) fourth, to pay certain fees and expenses
incurred in connection with the Rights Offering and the Concurrent Private
Placement.  In the event that the Backstop Parties reduce the number
of Depositary Shares that they would otherwise be obligated to purchase pursuant
to the Rights Offering Basic Commitment or Rights Offering Backstop Commitment
as contemplated by Paragraph 7 and, as a result, there are sufficient proceeds
from the Rights Offering and the Concurrent Private Placement to pay off the
Bridge Loan but insufficient proceeds, after paying off the Bridge Loan, to both
pay off all indebtedness under the Mezzanine Loan Agreement and to make the
Cargill Payment, then the Backstop Parties may elect to cause BFE Corp. to use
the proceeds remaining after the pay off of the Bridge Loan to make the Cargill
Payment before paying off any indebtedness under the Mezzanine Loan
Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.           Basic
Commitment.  Subject to the terms, conditions and limitations
described herein, each of the parties listed on Exhibit B hereto
(collectively, the “Backstop
Parties”) hereby agrees to participate in the Rights Offering for its
full pro rata share of Depositary Shares (the “Rights Offering
Basic Commitment”) and to participate in the Concurrent Private Placement
for its full pro rata share of Preferred Membership Interests (the “LLC Basic
Commitment,” and, together with the Rights Offering Basic Commitment, the
“Basic
Commitment”).

     

    6.           Backstop
Commitment.  Subject to the terms, conditions and limitations
described herein (including Paragraph 7 hereof), to provide assurance that the
Rights Offering will be fully subscribed, the Backstop Parties severally and not
jointly commit to purchase, in the respective percentages set forth on Exhibit B hereto (the
“Commitment
Percentages”), all of the additional Depositary Shares not sold to other
Eligible Common Stockholders in the Rights Offering (the “Rights Offering
Backstop Commitment”) and all of the additional Preferred Membership
Interests not sold to other Eligible LLC Members in the Concurrent Private
Placement (the “LLC Backstop
Commitment,”
and, together with the Rights Offering Backstop Commitment, the “Backstop
Commitment”). Greenlight,
in its discretion, may allocate its aggregate Backstop Commitment among the
Greenlight Parties and accordingly allocate the Greenlight Parties' Commitment
Percentage among the Greenlight Parties (it being understood and agreed that no
such allocation among the Greenlight Parties will decrease the aggregate amount
of Depositary Shares or Preferred Membership Interests that the Greenlight
Parties are obligated to purchase pursuant to the Backstop Commitment). 
The Greenlight Parties shall provide notice to BFE Corp., a reasonable amount of
time prior to closing, of such allocation.

     

    7.           Backstop
Reduction.  Notwithstanding the foregoing, (i) the Backstop
Parties shall reduce the number of Depositary Shares that the Backstop Parties
would otherwise be obligated to purchase pursuant to the Backstop Commitment
and/or the Basic Commitment, or (ii) BFE Corp. shall reduce the aggregate number
of Depositary Shares that are offered in the Rights Offering, in the event the
Backstop Parties determine, in their sole discretion, but after consultation
with BFE Corp., that consummation of the Rights Offering, the Basic Commitment
and/or the Backstop Commitment would result in adverse tax, legal or regulatory
consequences to BFE Corp. and/or any Backstop Party (“Adverse
Consequences”) to the extent (and only to the extent) the Backstop
Parties deem necessary in their sole discretion, but after consultation with BFE
Corp., to avoid Adverse Consequences (a “Backstop
Reduction”).  The reduction in the number of Depositary Shares
that the Backstop Parties are obligated to purchase in the event of a Backstop
Reduction would be referred to as the “Shortfall
Amount”.  In the event of a Backstop Reduction, the Rights
Offering shall nevertheless proceed and, other than in the event of a Backstop
Reduction that takes the form of a reduction of the number of Depositary Shares
that the Backstop Parties would otherwise be obligated to purchase pursuant to
the Backstop Commitment (which is the subject of the following paragraph), the
parties shall use their respective commercially reasonable best efforts to
structure and consummate an alternative transaction to take the place of the
issuance of the Shortfall Amount that, combined with the Rights Offering, would
(i) permit BFE Corp. to (A) pay off the Bridge Loan; (B) pay off all
indebtedness under the Mezzanine Loan Agreement; and (C) make the Cargill Cash
Payment (an “Alternative
Financing Transaction”) and (ii) be structured so as to preserve the
economic benefits to the parties as if the Rights Offering had been consummated
in full in accordance with the terms set forth herein without otherwise giving
effect to a Backstop Reduction provided that each Backstop Party shall not be
obligated to fund an amount in excess of the amount represented by its Backstop
Commitment.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    In
addition, in the event of a Backstop Reduction that takes the form of a
reduction of the number of Depositary Shares that the Backstop Parties would
otherwise be obligated to purchase pursuant to the Backstop Commitment, the
Backstop Parties shall either (i) exercise their respective Rights Offering
Backstop Commitment with respect to all or a portion of the available Depositary
Shares not otherwise sold in the Rights Offering to other Eligible Common
Stockholders by purchasing a new class of class B preferred membership interests
(the “Class
B Membership Interests”) in the LLC (instead of purchasing such available
Depositary Shares) in the event that such Backstop Parties determine, in their
sole discretion, that the purchase of such available Depositary Shares would
result in adverse tax, legal or regulatory consequences to BFE Corp. or such
Backstop Parties (such an election, a “LLC Backstop
Reallocation”) or (ii) not exercise their respective
Rights  Offering Backstop Commitment with respect to all or a portion
of the available Depositary Shares not otherwise sold in the Rights Offering to
other Eligible Common Stockholders in the event that such Backstop Parties
determine, in their sole discretion, that the purchase of such available
Depositary Shares would result in adverse tax, legal or regulatory consequences
to BFE Corp. or such Backstop Parties.  In the event of a LLC Backstop
Reallocation, the LLC will issue such Class B Preferred Membership interests to
the applicable Backstop Parties (in equal number to the number of available
Depositary Shares not purchased because of such LLC Backstop Reallocation) in
exchange for payment of the Rights Price for each Class B Preferred Membership
Interest purchased.  The Class B Preferred Membership interests, if
issued, would have the same terms as the Preferred Membership Interests
(including as to conversion, distribution, liquidation and other rights), except
that, upon conversion of such Class B Preferred Membership Interests, holders of
such Class B Preferred Membership Interests would receive Common Membership
Interests that would not be exchangeable for shares of Common
Stock.

     

    In the event that the Backstop Parties purchase Class B Preferred
Membership Interests, the Greenlight Parties may allocate their participation in
any such purchases among the Greenlight Parties in their discretion, following
notice to BFE Corp. 

     

    8.           Consideration.  In
consideration of the Backstop Commitment, BFE Corp. paid, on September 24, 2010,
a fee equal to $743,795.00 in consideration of the Backstop Commitment (the
“Option
Premium”).  To the extent that the total purchase price for the
Depositary Shares offered in the Rights Offering plus the Preferred Membership
Interests and Class B Preferred Membership Interests offered in the Concurrent
Private Placement is more than $40,000,000, BFE Corp. shall make an additional
payment to the Backstop Parties in an amount equal to 4% of such excess amount
(excluding for calculation purposes any additional Depositary Shares or
Preferred Membership Interests purchased by the Backstop Parties pursuant to
their Basic Commitments or purchased by the Backstop Parties pursuant to any
Over-Subscription Privileges in the Rights Offering or LLC Additional Purchase
Privileges in the Concurrent Private Placement), with such additional payment to
be made concurrent with the closing of the Rights Offering and the Concurrent
Private Placement.  Subject to the provisions below, the Option
Premium was fully earned upon execution of the Original ROLA, regardless of
whether the Rights Offering or Concurrent Private Placement is consummated or
whether the Rights Offering or Concurrent Private Placement is fully
subscribed.  BFE Corp. agrees that the Option Premium is nonrefundable
and that the Option Premium and any other payments hereunder shall be paid
without setoff or recoupment and shall not be subject to defense or offset on
account of any claim, defense or counterclaim.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    9.           Conditions.  The
Backstop Parties’ obligations to purchase any securities pursuant to the Basic
Commitment and/or the Backstop Commitment are subject to the following
conditions: (i) the execution and delivery of mutually satisfactory definitive
documentation among BFE Corp. and the Backstop Parties which incorporates the
terms set forth herein (the “Definitive
Agreements”); (ii) the satisfaction or waiver by the Backstop Parties of
the conditions to the Backstop Parties’ obligations to consummate the
transactions contemplated by the Definitive Agreements as may be agreed upon in
the Definitive Documents; (iii) BFE Corp. shall be in compliance with its
obligations under the Loan Agreement and all other transaction documents
relating to the Bridge Loan in all material respects; (iv) there has not
occurred any material adverse change, or any development involving a prospective
material adverse change, since the date hereof in the condition, financial or
otherwise, or in the earnings, business, operations or properties of BFE Corp.
and its subsidiaries, taken as a whole (a “Material Adverse
Change”); (v) there not having occurred after the date hereof at any time
prior to the funding of the Basic Commitment and/or the Backstop Commitment any
material disruption or material adverse change in the financial, banking or
capital markets that, in the commercially reasonable judgment of the Backstop
Parties, would have a material adverse impact on the success of the Rights
Offering; (vi) all required approvals and consents shall have been obtained;
(vii) all representations and warranties made by BFE Corp. in this Letter
Agreement being true and correct in all material respects; (viii) BFE Corp.
shall be in compliance with all covenants and other provisions of this Letter
Agreement in all material respects; (ix) the Cargill Acknowledgement Letter (as
defined below) being in full force and effect; (x) each of the Executive
Management Waiver Agreements (as defined in the Loan Agreement) being in full
force and effect; (xi) no actions, suits or proceedings shall be pending or
threatened that challenge any Definitive Agreement, this Letter Agreement, the
Loan Agreement, the Cargill Acknowledgement Letter or any related agreement;
(xii) the Backstop Parties having been reasonably satisfied with (A) the
Certificate of Designations setting forth the rights and preferences of the
Series A Non-Voting Convertible Preferred Stock that reflects the terms set
forth on Exhibit
A hereto and other customary terms and provisions as determined by
Greenlight in its reasonable discretion and (B)
the amended and restated limited liability company agreement of the LLC setting
forth the rights and preferences of the Preferred Membership Interests and, if
applicable, the Class B Preferred Membership Interests, and other customary
terms and provisions as determined by Greenlight in its reasonable
discretion; (xiii) the receipt by the Backstop Parties of a legal opinion
from Cravath, Swaine & Moore LLP with respect to customary matters in a form
satisfactory to Greenlight in its reasonable discretion; (xiv) BFE Corp. shall
not have entered into any letter of intent, memorandum of understanding,
agreement in principle or other agreement relating to any competing plan,
proposal, offer or transaction with a third party other than Greenlight
materially inconsistent with this Letter Agreement; and (xv) the Board of
Directors of BFE Corp. shall have adopted Section 16b-3 Resolutions related to
the issuance to the Backstop Parties of Series A Non-Voting Convertible
Preferred Stock, Preferred Membership Interests, Class B Preferred Membership
Interests, Common Stock and warrants and the allocation among the Greenlight
Parties, of the Backstop Commitment and any purchase of Class B Preferred
Membership Interests, the form of which shall be satisfactory to Greenlight in
its sole discretion.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    10.         Registration
Rights.  Each of the Backstop Parties expressly waives any and
all rights under Section 2.2 of the Registration Rights Agreement, dated as of
June 19, 2007, by and between BioFuel and the holders of shares of BFE Common
Stock identified therein (the “Existing
Registration Rights Agreement”), that may arise in connection with the
Rights Offering or the Concurrent Private Placement.  For purposes of
this Letter Agreement, “BFE Common
Stock” shall mean the Common Stock and the Class B Common Stock, par
value $0.01 per share, of BFE Corp. (the “Class B Common
Stock”).  In connection with the Rights Offering and the
Concurrent Private Placement, the Existing Registration Rights Agreement will be
amended and restated to provide registration rights, under certain circumstances
and subject to certain restrictions to be set forth in such amended and restated
agreement, with respect to the sale of shares of Common Stock that are issued to
(i) the Backstop Parties and the other parties to the Existing Registration
Rights Agreement in respect of any Depositary Shares that they acquire in the
Rights Offering (or the Backstop Parties acquire upon exercise of their Backstop
Commitment) following conversion of the Series A Non-Voting Convertible
Preferred Stock, (ii) the Backstop Parties and the other parties to the Existing
Registration Rights Agreement in respect of any Common Membership Interests that
are issued to them following conversion of any Preferred Membership Interests
that they acquire in the Concurrent Private Placement (or the Backstop Parties
acquire upon exercise of their Backstop Commitment) and (iii) the Backstop
Parties in respect of the Warrants (as defined in the Loan Agreement) that may
be issued to them in the event that the Bridge Loan is not paid in full on or
prior to March 24, 2011, in each case insofar as such Common Stock constitutes
“Registrable Securities” (as defined therein).

     

    11.         Cargill.  BFE
Corp. has entered into an agreement, dated as of September 23, 2010 (the “Cargill
Acknowledgement Letter”) with Cargill, Incorporated and its affiliates
(collectively, “Cargill”),
which provides that upon payment (the “Cargill
Payment”) of $2,800,828 (plus accrued and unpaid interest on such amount
as of the date of payment pursuant to the agreement, dated January 14, 2009, by
and between BFE Corp. and certain of its affiliates and Cargill (the “Cargill
Settlement Agreement”)) from the proceeds of the Rights Offering and the
Concurrent Private Placement, Cargill shall forgive the remaining Payable (as
defined in the Cargill Settlement Agreement) in exchange for Depositary Shares
in an amount equal to the amount of the remaining Payable, which amount shall be
converted into Depositary Shares at a price equal to the average of the volume
weighted averages of the trading prices for the prior ten (10) day trading
period of the Common Stock, ending on the second trading day immediately
preceding the date the Depositary Shares are issued to Cargill (such amount of
Depositary Shares, the “Cargill
Depositary Shares”).  BFE Corp. hereby agrees that it shall not
breach, violate or terminate the Cargill Acknowledgment Letter.  BFE
Corp. agrees that it will not amend, waive or modify the Cargill Acknowledgement
Letter without the written consent of Greenlight.

     

    The
Cargill Depositary Shares will have the same rights and preferences (including
the same Conversion Ratio) as the Depositary Shares that will be issued in the
Rights Offering.  In order to issue the Cargill Depositary Shares, BFE
Corp. will designate and issue and deposit with the depositary a number of
additional shares of Series A Non-Voting Convertible Preferred Stock that
corresponds to the aggregate fractional interests in shares of Series A
Non-Voting Convertible Preferred Stock that the newly issued Cargill Depositary
Shares represent.  In the event that an insufficient number of
authorized shares of Series A Non-Voting Convertible Preferred Stock are
available for such issuance and deposit with the depositary, BFE Corp. will
establish an alternative method for satisfying the Cargill Stock Payment that is
satisfactory to it, Cargill and the Backstop Parties.  Concurrent with
the issuance of Cargill Depositary Shares, the LLC will issue to BFE Corp. a
number of Preferred Membership Interests equal to the number of Cargill
Depositary Shares.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    12.         Representations and
Warranties of BFE Corp.  BFE Corp. represents and warrants to
the Backstop Parties that the statements contained in this Paragraph 12 are
correct and complete as of the date of this Letter Agreement and will be true as
of the closing of the Rights Offering:

     

    (a)         Organization.  BFE
Corp. (a) is a corporation duly organized, validly existing and in good standing
under the Laws (as defined below) of the State of Delaware, (b) is duly
qualified to do business as a foreign corporation and is in good standing under
the Laws of each jurisdiction in which either the ownership or use of the
properties owned or used by it, or the nature of the activities conducted by it,
requires such qualification, (c) has the relevant entity power and authority
necessary to own or lease its properties and to carry on its businesses as
currently conducted and (d) is not in breach or violation of, or default under,
any provision of its organizational documents, except, in the case of clauses
(b) and (c), where any failures, individually or in the aggregate, would not
reasonably be expected to have a Material Adverse Change.  BFE Corp.
has never approved or taken any action, nor is there any currently pending or
(to BFE Corp.’s knowledge) threatened action, seeking BFE Corp.’s dissolution,
liquidation or insolvency.

     

    (b)         Power and Authority;
Enforceability.  BFE Corp. has the relevant entity power and
authority necessary to execute and deliver this Letter Agreement and each other
agreement, document or writing executed or delivered in connection with the
Letter Agreement and each amendment or supplement to any of the foregoing
(including this Letter Agreement, the “Transaction
Documents”) to which BFE Corp. is a party, and to perform and consummate
the transactions contemplated hereby and thereby (the “Transactions”).
BFE Corp. has taken all action necessary to authorize the execution and delivery
by BFE Corp. of each Transaction Document to which BFE Corp. is party, the
performance of BFE Corp.’s obligations thereunder, and the consummation by BFE
Corp. of the Transactions.  Each Transaction Document to which BFE
Corp. is a party has been duly authorized, executed and delivered by BFE Corp.,
and is enforceable against BFE Corp. in accordance with its terms except as such
enforceability may be subject to the effects of bankruptcy, insolvency,
reorganization, moratorium or other Laws relating to or affecting the rights of
creditors and general principles of equity (the “Enforceability
Exception”).

     

    (c)         No Violation; Necessary
Approvals.  The execution and the delivery by BFE Corp. of this
Letter Agreement and the other Transaction Documents to which BFE Corp. is a
party, the performance by BFE Corp. of BFE Corp.’s obligations hereunder and
thereunder, and consummation of the Transactions by BFE Corp. will not (i) with
or without notice or lapse of time, constitute, create or result in a breach or
violation of,  default under, loss of benefit or right under or
acceleration of performance of any obligation required under any (A) law
(statutory, common or otherwise), constitution, ordinance, rule, regulation,
executive order or other similar authority (“Law”)
enacted, adopted, promulgated or applied by any legislature, agency, bureau,
branch, department, division, commission, court, tribunal or other similar
recognized organization or body of any federal, state, county, municipal, local
or foreign government or other similar recognized organization or body
exercising similar powers or authority (a “Governmental
Body”), (B) order, ruling, decision, award, judgment, injunction or other
similar determination or finding by, before or under the supervision of any
Governmental Body or arbitrator (an “Order”),
(C) contract, agreement, arrangement, commitment, instrument, document or
similar understanding (whether written or oral), including a lease, sublease and
rights thereunder (“Contract”)
or permit, license, certificate, waiver, notice and similar authorization
(“Permit”)
to which, in the case of (A), (B) or (C), BFE Corp. is a party or by which it is
bound or any of its assets are subject, or (D) any provision of the
organizational documents of BFE Corp. as in effect as of the date of this Letter
Agreement; except, in the case of clauses (A), (B) and (C), where any failures,
individually or in the aggregate, would not reasonably be expected to have a
Material Adverse Change or a material adverse effect on its ability to complete
the Transactions, (ii) result in the imposition of any material lien, claim or
encumbrance (an “Encumbrance”)
upon any assets (including the securities of BFE Corp.) owned by BFE Corp.;
(iii) require any consent under any Contract or organizational document to which
BFE Corp. is a party or by which it is bound or any of its assets are subject;
(iv) require any Permit under any Law or Order other than (A) required filings,
if any, with the Commission and (B) notifications or other filings with state or
federal regulatory agencies after the date of this Letter Agreement that are
necessary or convenient and do not require approval of the agency as a condition
to the validity of the Transactions; or (v) trigger any rights of first refusal,
preferential purchase or similar rights with respect to any securities of BFE
Corp., other than piggyback registration rights under the Existing Registration
Rights Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (d)         Capitalization.  BFE
Corp.’s authorized equity interests consist of 155,000,000 shares, consisting of
(a) 100,000,000 shares of Common Stock, (b) 50,000,000 shares of Class B Common
Stock and (c) 5,000,000 shares of Preferred Stock, par value $0.01 per share
(“Preferred
Stock” and, together with the BFE Common Stock, the “Capital
Stock”).  With respect to Common Stock, 25,465,728 shares are
issued and outstanding and 809,606 shares are held in treasury.  With
respect to Class B Common Stock, 7,111,985 shares are issued and outstanding and
0 shares are held in treasury.  With respect to Preferred Stock, 0
shares are issued and outstanding and 0 shares are held in
treasury.  All of the issued and outstanding shares of Capital Stock:
(a) have been duly authorized and are validly issued, fully paid, and
nonassessable, (b) were issued in compliance with all applicable state and
federal securities Laws and (c) were not issued in breach of any
commitments.  Except as disclosed in BFE Corp.’s filings with the
Commission, BFE Corp. has no outstanding options, warrants, exchangeable or
convertible securities, subscription rights, exchange rights, statutory
pre-emptive rights, preemptive rights granted under BFE Corp.’s organizational
documents, stock appreciation rights, phantom stock, profit participation or
similar rights, or any other right or instrument pursuant to which any person
may be entitled to purchase any security of BFE Corp., and has no obligation to
issue any rights or instruments.  Except as disclosed in BFE Corp.’s
filings with the Commission, there are no Contracts with respect to the voting
or transfer of any of the Capital Stock.  BFE Corp. is not obligated
to redeem or otherwise acquire any of its outstanding Capital
Stock.

     

    (e)         No Misstatements or
Omissions.  All information, other
than forward-looking information and information of a general economic nature,
which has been or is hereafter made available to Greenlight by or on behalf of
BFE Corp. or its representatives in connection with the transactions
contemplated hereby (the “Information”)
is or, when furnished, will be complete, when taken as a whole, and correct in
all material respects and does not and will not contain any untrue statement of
a material fact or omit to state a material fact necessary to make the
statements contained therein not materially misleading in light of the
circumstances under, and the time at which, such statements are
made.  BFE Corp. hereby agrees to supplement the Information from time
to time until the closing date of the Rights Offering so that the representation
and warranty in the preceding sentence is correct on such date.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    12A.     Representations and
Warranties of the LLC.  The LLC represents and warrants to the
Backstop Parties that, as of the date of this Letter Agreement and as of the
closing of the Rights Offering:  (i)(A) it has the relevant entity
power and authority necessary to execute and deliver each Transaction Document
to which it is a party, and to perform and consummate the Transactions, (B) it
has taken all action necessary to authorize the execution and delivery by it of
each Transaction Document to which it is a party, and the performance of its
obligations thereunder and (C) the consummation by it of the Transactions and
each Transaction Document to which it is a party has been duly authorized,
executed and delivered by it, and is enforceable against it in accordance with
its terms except as such enforceability may be subject to the Enforceability
Exception; (ii)(A) it is a limited liability company duly organized, validly
existing and in good standing under the Laws of the State of Delaware, (B) it is
duly qualified to do business as a foreign corporation and is in good standing
under the Laws of each jurisdiction in which either the ownership or use of the
properties owned or used by it, or the nature of the activities conducted by it,
requires such qualification, (C) it has the relevant entity power and authority
necessary to own or lease its properties and to carry on its businesses as
currently conducted and (D) is not in breach or violation of, or default under,
any provision of its organizational documents, except, in the case of clauses
(B) and (C), where any failures, individually or in the aggregate, would not
reasonably be expected to have a material adverse change in the condition,
financial or otherwise, or in the earnings, business, operations or properties
of LLC and its subsidiaries, taken as a whole (an “LLC Material
Adverse Change”); (iii) the execution and the delivery by the LLC of this
Letter Agreement and the other Transaction Documents to which the LLC is a
party, the performance by the LLC of the LLC’s obligations hereunder and
thereunder, and consummation of the Transactions by the LLC will not (A) with or
without notice or lapse of time, constitute, create or result in a breach or
violation of,  default under, loss of benefit or right under or
acceleration of performance of any obligation required under any (w) Law
enacted, adopted, promulgated or applied by any Governmental Body, (x) Order (y)
Contract or Permit to which, in the case of (w), (x) or (y), the LLC is a party
or by which it is bound or any of its assets are subject, or (z) any provision
of the organizational documents of the LLC as in effect as of the date of this
Letter Agreement; except, in the case of clauses (w), (x) and (y), where any
failures, individually or in the aggregate, would not reasonably be expected to
have an LLC Material Adverse Change or a material adverse effect on its ability
to complete the Transactions, (B) result in the imposition of any material
Encumbrance upon any assets owned by the LLC, (C) require any consent under any
Contract or organizational document to which the LLC is a party or by which it
is bound or any of its assets are subject; or (D) require any Permit under any
Law or Order other than (x) required filings, if any, with the Commission and
(y) notifications or other filings with state or federal regulatory agencies
after the date of this Letter Agreement that are necessary or convenient and do
not require approval of the agency as a condition to the validity of the
Transactions; and (iv) the LLC’s authorized Units (as defined in the Second
Amended and Restated Limited Liability Company Agreement of the LLC) consist of
50,000,000 Units, of which 32,577,713 were outstanding on September 30, 2010 and
25,465,728 of which were owned by BFE Corp. as of such date.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    12B.      Power and
Authority.  Each Backstop Party represents and warrants to BFE
Corp. with respect to itself only that (i) it has the relevant entity power and
authority, if applicable, necessary to execute and deliver each Transaction
Document to which it is a party, and to perform and consummate the Transactions;
(ii) it has taken all action necessary to authorize the execution and delivery
by it of each Transaction Document to which it is a party, and the performance
of its obligations thereunder; and (iii) the consummation by it of the
Transactions and each Transaction Document to which it is a party has been duly
authorized, executed and delivered by it, and is enforceable against it in
accordance with its terms except as such enforceability may be subject to the
Enforceability Exception.

     

    13.         Expenses;
Indemnification.

     

    (a)         General.  Whether
or not the transactions contemplated hereby are consummated, BFE Corp. and the
LLC, jointly and severally, agree to: (y) pay within five (5) business days of
demand the reasonable and documented fees, expenses, disbursements and charges
of the Backstop Parties incurred previously or in the future relating to the
exploration and discussion of alternative financing structures to the Backstop
Commitment or to the preparation and negotiation of this Letter Agreement, and
the proposed documentation and the transactions contemplated hereby, including,
without limitation, the reasonable fees and expenses of any counsel to the
Backstop Parties; and (z) indemnify and hold harmless the Backstop Parties and
their respective stockholders, members and general and limited partners and the
respective officers, directors, employees, affiliates, advisors, agents,
attorneys, accountants and consultants of each such entity and to hold the
Backstop Parties and such other persons and entities (each, an “Indemnified
Person”) harmless from and against any and all losses, claims, damages,
liabilities and expenses, joint or several, which any such person or entity may
incur, have asserted against it or be involved in as a result of or arising out
of or in any way related to this Letter Agreement, the matters referred to
herein, the proposed Backstop Commitment contemplated hereby, the use of
proceeds thereunder or any related transaction or any claim, litigation,
investigation or proceeding relating to any of the foregoing, regardless of
whether any of such Indemnified Persons is a party thereto, and to reimburse
each such Indemnified Person within five (5) business days of demand for any
legal or other expenses incurred in connection with any of the foregoing;
provided, however, that the foregoing indemnity will not, as to any Indemnified
Person, apply to losses, claims, damages, liabilities or related expenses to the
extent they have resulted from the bad faith, willful misconduct or gross
negligence of such Indemnified Person.  Notwithstanding any other
provision of this Letter Agreement, no Indemnified Person will be liable for any
special, indirect, consequential or punitive damages in connection with its
activities related to the Backstop Commitment.  The terms set forth in
this paragraph shall survive termination of this Letter Agreement.

     

    (b)         Tax Withholdings and
Indemnity.  BFE Corp. agrees not to withhold any taxes on any
payments made to the Backstop Parties under this Letter Agreement; provided that
to the extent BFE Corp. is required (by law or pursuant to the conclusion of any
legal proceeding or the reasonable interpretation or administration thereof) to
withhold, remit or pay over any taxes on any payments made to the Backstop
Parties under this Letter Agreement, BFE Corp. agrees to indemnify the Backstop
Parties and make them whole with respect to any and all such taxes actually
withheld including any and all associated interest and
penalties.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    14.         No
Recourse.  Notwithstanding anything that may be expressed or
implied in this Letter Agreement, or any document or instrument delivered in
connection herewith, by its acceptance of the benefits of this Letter Agreement,
each of BFE Corp. and the LLC covenants, agrees and acknowledges that no
personal liability shall attach to the former, current or future equity holders,
controlling persons, directors, officers, employees, agents, affiliates,
members, managers general or limited partners or assignees of a Backstop Party
or any former, current or future stockholder, controlling person, director,
officer, employee, general or limited partner, member, manager, affiliate, agent
or assignee of any of the foregoing, whether by enforcement of any assessment or
by any legal or equitable proceeding, by virtue of any statute, regulation or
applicable law, or otherwise.

     

    15.         Assignment; No Third Party
Beneficiaries.  This Letter Agreement (a) is not assignable by
BFE Corp., the LLC or a Backstop Party without the prior consent of the other
parties (and any purported assignment without such consent shall be null and
void), and (b) is intended to be solely for the benefit of the parties hereto
and is not intended to confer any benefits upon, or create any rights of, any
person other than the parties hereto.  Notwithstanding the foregoing,
Greenlight may assign all or any portion of its obligations hereunder to one or
more financial institutions reasonably acceptable to BFE Corp. (provided, that
BFE Corp.’s consent shall not be required for such an assignment to an affiliate
of Greenlight).  Upon any such assignment (other than an assignment
without BFE Corp.’s consent), the obligations of Greenlight in respect of the
portion of their obligations so assigned shall terminate.

     

    16.         Governing Law;
Jurisdiction.  This Letter Agreement shall be governed by, and
construed and interpreted in accordance with, the laws of the State of New York
regardless of the laws that might otherwise govern under applicable principles
of conflicts of laws in the State of New York.  The parties hereby
irrevocably submit to the personal jurisdiction of the courts of the State of
New York located in New York County, New York, and the Federal courts of the
United States of America located in the State of New York, New York County,
solely in respect of the interpretation and enforcement of the provision of this
Letter Agreement and of the documents referred to in this Letter Agreement, and
in respect of the transactions contemplated hereby, and hereby waive, and agree
not to assert, as a defense in any action, suit or proceeding for the
interpretation or enforcement hereof or of any such document, that is not
subject thereto or that such action, suit or proceeding may not be brought or is
not maintainable in said courts or that the venue thereof may not be appropriate
or that this Letter Agreement or any such document may not be enforced in or by
such courts, and the parties hereto irrevocably agree that all claims with
respect to such action or proceeding shall be heard and determined in such a New
York State or Federal court.  The parties hereby consent to and grant
any such court jurisdiction over the person of such parties and, to the extent
permitted by law, over the subject matter of such dispute and agree that mailing
of process or other papers in connection with any such action or proceeding in
the manner as may be permitted by law shall be valid and sufficient service
thereof.

     

    17.         Waiver of Jury
Trial.  Each party acknowledges and agrees that any controversy
which may arise under this Letter Agreement is likely to involve complicated and
difficult issues, and therefore each such party hereby irrevocably and
unconditionally waives any such right such party may have to a trial by jury in
respect of any litigation directly or indirectly arising out of, under or
relating to this Letter Agreement, or any of the transactions
contemplated  by this Letter Agreement.  Each party
certifies and acknowledges that (i) no representative, agent or attorney of any
other party has represented, expressly or otherwise, that such other party would
not, in the event of litigation, seek to enforce the foregoing waiver, (ii) each
party understands and has considered the implications of this waiver, (iii) each
party makes this waiver voluntarily and (iv) each party has been induced to
enter into this Letter Agreement by, among other things, the mutual waivers and
certifications expressed above.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    18.         Amendment; Waiver;
Counterparts.  This Letter Agreement may not be amended,
modified or waived except in a writing signed by Greenlight, BFE Corp. and Third
Point Loan LLC.  This Letter Agreement may be executed in any number
of counterparts, each of which shall be an original, and all of which, when
taken together, shall constitute one agreement.  Delivery of an
executed counterpart of this Letter Agreement by facsimile or e-mail shall be
effective as delivery of a manually executed counterpart of this Letter
Agreement.

     

    19.         Termination.  The
obligations of the Backstop Parties under this Letter Agreement shall terminate
immediately, at Greenlight’s election, at any time prior to the consummation of
the Rights Offering upon the occurrence of any of the following: (i) the
termination of the Loan Agreement; (ii) BFE Corp. entering into a definitive
agreement with respect to a Substitute Transaction; (iii) if in the reasonable
judgment of Greenlight, the conditions in Paragraph 9 become incapable of being
satisfied prior to January 24, 2011; (iv) a Material Adverse Change has
occurred; (v) any condition set forth in Paragraphs 9(iv) or 9(viii) of this
Letter Agreement cannot be cured or satisfied with the passage of time or, if
capable of being cured or satisfied, cannot be cured or satisfied prior to March
24, 2011; (vii)  the Common Stock shall no longer be listed on a
national securities exchange; or (vii) BFE Corp.’s adoption of any plan of
merger, consolidation, reorganization, liquidation or dissolution or filing of a
petition in bankruptcy under any provisions of federal or state bankruptcy Law
or consent to the filing of any bankruptcy petition against it under any similar
Law.  Further, each of Greenlight or BFE Corp. may terminate this
Letter Agreement at any time upon five (5) business days’ prior written notice
upon the occurrence of any of the following events: (x) another party’s material
breach of any of the representations, warranties or covenants set forth in this
Letter Agreement or with respect to the consummation of the Rights Offering or
the Concurrent Private Placement that remains uncured for a period of five (5)
business days after the receipt by the non-terminating party of notice of such
breach or (y) the issuance by any governmental authority, including any
regulatory authority or court of competent jurisdiction, of any ruling or order
enjoining the consummation of a material portion of the Rights Offering, the
Concurrent Private Placement or any related transactions.  The Letter
Agreement, and the obligations of the parties hereunder, may be terminated by
mutual agreement between the parties.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    20.         Alternative
Transactions.  Notwithstanding anything to the contrary in this
Letter Agreement, BFE Corp. shall be permitted to solicit, participate in,
initiate or facilitate discussions or negotiations with, or provide any
information to, any person or group of persons concerning any alternative equity
financing or other transaction that would result in the (a) repayment in full of
all amounts outstanding under the Bridge Loan, (b) repayment in full of all
amounts under the Mezzanine Loan Agreement and (c) satisfy all obligations under
the Cargill Acknowledgement Letter (a “Substitute
Transaction”).  If, as a result of such activities, the Board
of Directors of the Company (the “Board”)
(excluding any Board member that is an affiliate of Greenlight) determines in
good faith after consultation with outside legal counsel and independent
financial advisors that (i) it has the opportunity to enter into a Substitute
Transaction that will be consummated within a timeframe that is not materially
longer than the anticipated timeframe for the Rights Offering and the Concurrent
Private Placement but in no event later than February 1, 2011, and (ii) such
Substitute Transaction is more favorable to the holders of Common Stock
(excluding benefits arising to the Backstop Parties by virtue of the Backstop
Commitment) than the Rights Offering and the Concurrent Private Placement
(taking into account all the terms and conditions of such Substitute Transaction
that the Board deems relevant including, without limitation, any break-up fee
provisions, expense reimbursement provisions, conditions to closing and
availability of necessary financing) and is reasonably likely to be consummated
prior to February 1, 2011, then the Company shall deliver three (3) business
days prior notice to Greenlight of its intention to enter into such Substitute
Transaction, together with reasonable details concerning the terms and
conditions of such Substitute Transaction.  After such three (3)
business day period, (x) the Board shall be permitted to approve the Substitute
Transaction, (y) BFE Corp. shall be permitted to enter into such Substitute
Transaction and (z) BFE Corp. shall be permitted to terminate this Letter
Agreement; so long as in each case (A) the Substitute Transaction continues to
meet the requirements of clause (ii) of this Paragraph 20 and (B) upon execution
of definitive documentation relating to a Substitute Transaction, BFE will pay
to the Backstop Parties an aggregate break-up fee (to be allocated among the
Backstop Parties in accordance with their Commitment Percentages) a sum in cash
equal to $350,000 (the “Termination
Fee”).  For purposes of clarity, the Option Premium shall also
remain payable, in addition to the Termination Fee.  The proceeds of a
Substitute Transaction shall be used, promptly upon consummation of such
Substitute Transaction, to (a) first, repay in full all amounts outstanding
under the Bridge Loan, (b) second, repay in full all amounts under the Mezzanine
Loan Agreement and (c) third, satisfy all obligations under the Cargill
Acknowledgement Letter.

     

    21.         Entire
Agreement.  This Letter Agreement constitutes the entire
understanding among the parties hereto with respect to the subject matter hereof
and replaces and supersedes all prior agreements and understandings, both
written on oral, between the parties hereto with respect to the subject matter
hereof and shall become effective and binding upon the mutual exchange of fully
executed counterparts.

     

    22.         Stockholder Approval of
Securities.  BFE Corp. hereby agrees that, upon completion of
the Rights Offering, it shall use commercially reasonable best efforts to obtain
stockholder approval of the authorization of the Common Stock issuable upon
conversion of the Series A Non-Voting Convertible Preferred Stock and issuable
upon the exchange on a one-for-one basis of all Common Membership Interests that
would be received by the Eligible LLC Members following the conversion of all
Preferred Membership Interests they receive in the Concurrent Private Placement
for Common Membership Interests.  In furtherance of, and not in
limitation of the foregoing, BFE Corp. shall use commercially reasonable best
efforts to file a proxy statement with the Commission for such stockholder
approval by November 15, 2010 (but in any event BFE Corp. shall file such proxy
statement by January 1, 2011) and use its best efforts to obtain such
stockholder approval by January 24, 2011 (provided such stockholder holder
approval shall not be a condition to consummation of the Rights
Offering).  Notwithstanding the foregoing, a failure to file such
proxy statement with the Commission by November 15, 2010 despite the use of
commercially reasonable best efforts to do so by BFE Corp. shall not be deemed a
violation or failure to comply with this Letter Agreement for purposes of
Paragraph 9 hereof nor an Event of Default under the Loan Agreement; provided,
however that if BFE Corp. has not used such commercially reasonable best efforts
then there shall be deemed to be a failure to have complied with the conditions
in Paragraph 9 hereof.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    23.         Remain Public
Company.  BFE Corp. hereby agrees that until the Rights
Offering has been completed, it shall use commercially reasonable best efforts
to remain a public company with its securities publicly-traded on a national
securities exchange.

     

    24.         Voting
Agreements.  On the date hereof, Greenlight entered into an
Amended and Restated Voting Agreement with BFE Corp. (the “Greenlight Voting
Agreement”) and Third Point Loan LLC entered into an Amended and Restated
Voting Agreement with BFE Corp. (the “Third Point
Voting Agreement”).

     

    25.         Due
Diligence.  BFE Corp. agrees to make available to the Backstop
Parties all reasonably requested due diligence materials (including access to
BFE Corp. personal and agents), including, without limitation, due diligence
materials related to tax, regulatory and other legal items.

     

    If the foregoing is in accordance with
your understanding of our agreement, please sign this letter in the space
indicated below and return it to us.

    

    
      	 
      	
              Very
      truly yours,

            

    

    

    [Signature
Page Follows]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          	 
      	
                  GREENLIGHT
      CAPITAL OFFSHORE PARTNERS

                
	 
      	 
      	 
      	 
      
	 
      	
                  By:

                	
                  Greenlight
      Capital, Inc., its investment manager

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  By:

                	
                  /s/ Daniel Roitman

                
	 
      	 
      	 
      	
                  Daniel
      Roitman

                  Chief
      Operating Officer

                
	 
      	 
      	 
      	 
      
	 
      	
                  GREENLIGHT
      CAPITAL, LP

                
	 
      	 
      	 
      	 
      
	 
      	
                  By:

                	
                  Greenlight
      Capital, LLC, its general partner

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  By:

                	
                  /s/ Daniel Roitman

                
	 
      	 
      	 
      	
                  Daniel
      Roitman

                
	 
      	 
      	 
      	
                  Chief
      Operating Officer

                
	 
      	 
      	 
      	 
      
	 
      	
                  GREENLIGHT
      CAPITAL QUALIFIED, L.P.

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  Greenlight
      Capital, LLC, its general partner

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  By:

                	
                  /s/ Daniel Roitman

                
	 
      	 
      	 
      	
                  Daniel
      Roitman

                
	 
      	 
      	 
      	
                  Chief
      Operating Officer

                
	 	 	 	 
	 
      	
                  GREENLIGHT
      REINSURANCE, LTD.

                
	 
      	 
      	 
      	 
      
	 
      	
                  By:

                	
                  DME
      Advisor, L.P., its investment manager

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  By:

                	
                  /s/ Daniel Roitman

                
	 
      	 
      	 
      	
                  Daniel
      Roitman

                
	 
      	 
      	 
      	
                  Chief
      Operating Officer

                

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        
          	 
      	
                  GREENLIGHT
      CAPITAL (GOLD), LP

                
	 	 	 
	 
      	
                  By:

                	
                  DME
      Management GP, LLC, its general partner

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  By:

                	
                  /s/ Daniel Roitman

                
	 
      	 
      	 
      	
                  Daniel
      Roitman

                
	 
      	 
      	 
      	
                  Chief
      Operating Officer

                
	 
      	 
      	 
      	 
      
	 
      	
                  GREENLIGHT
      CAPITAL OFFSHORE MASTER (GOLD), LTD.

                
	 
      	 
      	 
      	 
      
	 
      	
                  By:

                	
                  DME
      Capital Management, LP, its investment manager

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  By:

                	
                  /s/ Daniel Roitman

                
	 
      	 
      	 
      	
                  Daniel
      Roitman

                
	 
      	 
      	 
      	
                  Chief
      Operating Officer

                

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          	 
      	
                  THIRD
      POINT LOAN LLC

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  
                    /s/
      Josh Targoff

                  

                
	 
      	 
      	
                  Josh
      Targoff

                
	 
      	 
      	
                  Chief
      Operating Officer and

                
	 
      	 
      	
                  General
      Counsel

                
	 
      	 
      	 
      
	 
      	
                  THIRD
      POINT ADVISORS, LLC

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  
                    /s/
      Josh Targoff

                  

                
	 
      	 
      	
                  Josh
      Targoff

                
	 
      	 
      	
                  Chief
      Operating Officer and

                
	 
      	 
      	
                  General
      Counsel

                

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    The
foregoing is hereby accepted and agreed

    to in all
respects by the undersigned:

    

    BIOFUEL
ENERGY CORP.

    

    
      
        	
                /s/ Scott H. Pearce

              
	
                Name:
      Scott H. Pearce

              
	
                Title:   President
      and CEO

              

      

    

    

    BIOFUEL
ENERGY, LLC

    

    
      
        	
                /s/ Scott H. Pearce

              
	
                Name:
      Scott H. Pearce

              
	
                Title:   President
      and CEO

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXHIBIT
A

     

    SERIES A
NON-VOTING CONVERTIBLE PREFERRED STOCK

     

    The Amended and Restated Certificate of
Incorporation (the “Certificate”)
of BioFuel Energy Corp. (“BFE
Corp.”) authorizes 5,000,000 shares of Preferred Stock, par value $0.01
per share (“Preferred
Stock”), and permits the Board of Directors of BFE Corp. (the “Board”),
by resolution, to provide, out of unissued shares of Preferred Stock, for series
of Preferred Stock.  With respect to each such series, the Certificate
permits the Board to fix the number of shares constituting such series and the
designation of such series, and the voting powers (if any) of the shares of such
series, preferences and relative, participating, optional or other special
rights or privileges, if any, and any qualifications, limitations or
restrictions thereof, of the shares of such series.  Pursuant to the
authority granted by the Certificate, the Board has, by resolution dated
September 24, 2010, provided for the issuance of shares of Series A Non-Voting
Convertible Preferred Stock (“Series A
Non-Voting Convertible Preferred Stock”) with the characteristics set
forth below.  Capitalized terms not otherwise defined shall have the
meanings assigned to such terms in the Rights Offering Letter Agreement to which
this Exhibit A is attached.

     

    
      
        	
                Liquidation
      Preference:

              	 
      	
                In
      the event of any liquidation, dissolution or winding up of BFE Corp.
      (each, a “Liquidation
      Event”), the proceeds of such Liquidation Event shall be paid as
      follows:

                 

                First,
      the holders of Series A Non-Voting Convertible Preferred Stock shall
      receive an amount equal to the Rights Price multiplied by the quotient
      obtained by dividing the total number of Depositary Shares actually
      purchased in the Rights Offering (by the Eligible Common Stockholders) and
      pursuant to the Rights Offering Backstop Commitment (by the Backstop
      Parties) by 2,000,000 for each share of Series A Non-Voting Convertible
      Preferred Stock.  The balance of any proceeds from a Liquidation
      Event shall be distributed pro rata among the holders of the Common
      Stock.

              
	 
      	 
      	 
      
	
                Dividends:

              	 
      	
                The
      Series A Non-Voting Convertible Preferred Stock will be paid a dividend or
      have a distribution made to it (as applicable) if, and when, such dividend
      or distribution is paid or made (as applicable) to the holders of Common
      Stock (payable on a per share basis in proportion to the number of shares
      of Common Stock that  each share of Series A Non-Voting
      Convertible Preferred Stock is convertible
  into).

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              Voting
      Rights:

            	 
      	
              The
      holders of Series A Non-Voting Convertible Preferred Stock will have no
      voting rights, except that the consent of at least a majority of the
      outstanding shares of Series A Non-Voting Convertible Preferred Stock (in
      the aggregate, voting as a class) will be required to (i) authorize or
      issue additional shares of Series A Non-Voting Convertible Preferred Stock
      of the same series, (ii) authorize or issue any other series of preferred
      equity securities which are senior or on parity with respect to
      liquidation or dividend payments to the Series A Non-Voting Convertible
      Preferred Stock or (iii) amend the Certificate or Bylaws of BFE Corp. (the
      “Bylaws”)
      to adversely affect the rights, preferences or privileges of the Series A
      Non-Voting Convertible Preferred Stock.

            
	 
      	 
      	 
      
	
              Automatic
      Conversion:

            	 
      	
              All
      shares of Series A Non-Voting Convertible Preferred Stock shall
      automatically convert into shares of Common Stock as set forth in
      Paragraph 2 of the Rights Offering Letter Agreement to which this
      Exhibit A is attached promptly following stockholder approval (by the
      affirmative vote of the holders of outstanding BFE Common Stock) of the
      authorization and issuance of the Common Stock issuable upon conversion of
      all Series A Non-Voting Convertible Preferred Stock and issuable upon the
      exchange on a one-for-one basis of all Common Membership Interests that
      would be received by the Eligible LLC Members following the conversion of
      all Preferred Membership Interests they receive in the Concurrent Private
      Placement for Common Membership
Interests.

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    EXHIBIT
B

     

    PREFERRED
MEMBERSHIP INTERESTS

     

    In connection with the Concurrent
Private Placement (as defined in the Rights Offering Letter Agreement to which
this Exhibit B is attached), the Second Amended and Restated Limited Liability
Company Agreement (the “LLC
Agreement”) of BioFuel Energy, LLC (“LLC”) will
be amended to provide for preferred membership interests (“Preferred
Membership Interests”) with the characteristics set forth
below.  Capitalized terms not otherwise defined shall have the
meanings assigned to such terms in the Rights Offering Letter Agreement to which
this Exhibit B is attached.

     

    
      	
              Liquidation
      Preference:

            	 
      	
              In
      the event of the voluntary or involuntary liquidation, dissolution or
      winding up of the LLC, the holder of each Preferred Membership Interest
      will be entitled to receive and to be paid out of the assets available for
      distribution to the members of the LLC, before any payment or distribution
      is made to holders of the Common Membership Interests, a liquidation
      preference per Preferred Membership Interest in an amount equal to the
      Rights Price.  After payment of the full amount of the
      liquidation preference to which they are entitled, the holders of the
      Preferred Membership Interests will have no right or claim to any of the
      LLC’s remaining assets in the event of the LLC’s liquidation, dissolution
      or winding up.

            
	 
      	 
      	 
      
	
              Dividends:

            	 
      	
              The
      Preferred Membership Interests will be entitled to pro rata distributions
      from the LLC, on an equivalent one-to-one basis with the Common Membership
      Interests, including the right to receive authorized distributions,
      including distributions to fund tax
liabilities.

            

    

    

    
      	
              Voting
      Rights:

            	 
      	
              Holders
      of Preferred Membership Interests will generally not have any voting
      rights in the LLC.  However, the LLC will not, without the
      approval of the holders of at least a majority of the Preferred Membership
      Interests, (i) authorize or issue additional Preferred Membership
      Interests (provided that no such approval shall be required in respect of
      any Preferred Membership Interests to be authorized and issued in
      connection with the Cargill Stock Payment) or (ii) authorize or issue any
      other series of preferred interests which are senior or on parity with
      respect to liquidation or dividend payments to the Preferred Membership
      Interests (provided that no such approval shall be required in respect of
      any Class B Preferred Membership Interests to be authorized and issued in
      connection with a LLC Backstop Reallocation). In
      addition, the LLC Agreement shall not be amended in such a way as would
      adversely affect the holders of the Preferred Membership Interests, in
      their capacity as such, without the approval of the holders of at least a
      majority of the Preferred Membership Interests then
      outstanding.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              Automatic
      Conversion:

            	 
      	
              Following
      stockholder approval (by the affirmative vote of the holders of
      outstanding BFE Common Stock) of the authorization and issuance of the
      Common Stock issuable upon conversion of all Series A Non-Voting
      Convertible Preferred Stock and issuable upon the exchange on a
      one-for-one basis of all Common Membership Interests that would be
      received by the Eligible LLC Members following the conversion of all
      Preferred Membership Interests they receive in the Concurrent Private
      Placement for Common Membership Interests, all Preferred Membership
      Interests will automatically convert into Common Membership Interests and
      the holders of the Preferred Membership Interests (other than BFE Corp.)
      will also receive one share of Class B Common Stock for each Common
      Membership Interest received upon
conversion.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
C

     

    BACKSTOP
PARTIES

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      Entity

                                    	 	
                                      Commitment Percentage

                                    	 
	
                                      Greenlight
      Parties

                                    	 	 	66.7	%
	Third
      Point Loan LLC 	 	 	33.3	%

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