Document:

Exhibit 10.4
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                             STOCKHOLDERS AGREEMENT

                                     BETWEEN

                              BIOFUEL ENERGY CORP.

                                       AND

                        CARGILL BIOFUELS INVESTMENTS, LLC

                              DATED: June 19, 2007

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                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

                                    ARTICLE I

                                   Definitions

SECTION 1.01. Definitions......................................................1
SECTION 1.02. Other Defined Terms..............................................3
SECTION 1.03. Rules of Construction............................................3

                                   ARTICLE II

                              Transfer Restrictions

SECTION 2.01. Prohibited Parties...............................................3
SECTION 2.02. Termination Procedures...........................................4
SECTION 2.03. Cargill Confidential Information.................................4

                                   ARTICLE III

                         Business Expansion Restrictions

SECTION 3.01. Change in Project Scope..........................................4

                                   ARTICLE IV

                                  Miscellaneous

SECTION 4.01. Notices..........................................................5
SECTION 4.02. Successors and Assigns; Third-Party Beneficiaries................6
SECTION 4.03. Amendment and Waiver.............................................6
SECTION 4.04. Counterparts.....................................................6
SECTION 4.05. Specific Performance.............................................7
SECTION 4.06. Headings.........................................................7
SECTION 4.07. Severability.....................................................7
SECTION 4.08. Entire Agreement.................................................7
SECTION 4.09. Term of Agreement................................................7
SECTION 4.10. Further Assurances...............................................7
SECTION 4.11. Governing Law....................................................7
SECTION 4.12. Other Rights.....................................................7
SECTION 4.13. Consent to Jurisdiction; No Jury Trial...........................7

                                      - i -

                        This STOCKHOLDERS AGREEMENT, dated as of June 19, 2007,
                  is between BioFuel Energy Corp., a Delaware corporation (the
                  "Company"), and Cargill Biofuels Investments, LLC, a Delaware
                  limited liability company. Unless otherwise provided in this
                  Agreement, capitalized terms used herein shall have the
                  respective meanings given to them in Section 1.01.

            WHEREAS, the parties hereto wish to set forth certain understandings
regarding the relationship between the Company and Cargill (as defined below);
and

            WHEREAS, the parties hereto wish to provide for, among other things,
restrictions on the acquisition of Voting Securities by a Prohibited Party (each
as defined below).

            NOW, THEREFORE, in consideration of the mutual covenants and
agreements set forth herein and for good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the parties hereto agree as
follows:

                                    ARTICLE I

                                   Definitions

            SECTION 1.01. Definitions. As used in this Agreement, and unless the
context requires a different meaning, the following terms have the meanings
indicated:

            "affiliate" of any Person means another Person that directly or
indirectly, through one or more intermediaries, controls, is controlled by, or
is under common control with, such first Person; provided that for purposes of
this Agreement, neither the Company nor any of its Subsidiaries shall be deemed
an affiliate of Cargill. For the purposes of this definition, "control" when
used with respect to any Person, means the possession, directly or indirectly,
of the power to direct or cause the direction of the management and policies of
a Person, whether through the ownership of voting securities, by contract, or
otherwise; and the terms "controlling" and "controlled" have meanings
correlative to the foregoing.

            "Agreement" means this Agreement as the same may be amended,
supplemented or modified in accordance with the terms hereof.

            "BioFuel Production" means the business of developing, constructing,
owning and operating ethanol or biodiesel production and processing plants,
engaging in commercial sales of ethanol, biodiesel and byproducts, and engaging
in the mixing, transportation and storage of ethanol, biodiesel and byproducts,
in each case.

            "Board of Directors" means the Board of Directors of the Company.

            "Business Day" means any day other than Saturday, Sunday and any day
that is a legal holiday in New York, New York or a day on which banking
institutions in New York, New York are authorized by law or other governmental
action to close.

                                                                               2

            "Business Expansion" means an expansion of the Company's business
beyond BioFuel Production.

            "Business Expansion Response Period" has the meaning set forth in
Section 3.01(a).

            "Cargill" means Cargill Biofuels Investments, LLC, a Delaware
limited liability company, and any of its affiliates, so long as such affiliate
is also a controlled affiliate of Cargill, Incorporated, a Delaware corporation.

            "Cargill Arrangements" means the arrangements among Cargill Parent
or one or more of its controlled affiliates, on the one hand, and the Company or
one or more of its Subsidiaries, on the other hand, pertaining to (i) grain
elevator leases, (ii) corn supply, (iii) ethanol marketing, (iv) distilled dried
grains marketing, (v) corn risk management, (vi) energy risk management and
(vii) natural gas supply, to the extent any such arrangements are in place from
time to time.

            "Cargill Parent" means Cargill, Incorporated, a Delaware
corporation.

            "Certificate" means the certificate of incorporation, as may be
amended from time to time, of the Company.

            "Class B Stock" has the meaning set forth in the LLC Agreement.

            "Common Stock" means the shares of common stock of the Company, par
value $0.01 per share.

            "knowledge", as it relates to the Company or Cargill, means with
respect to any matter in question, that any officer of the Company or Cargill
has actual knowledge of such matter after reasonable inquiry and investigation.

            "LLC Agreement" means the Second Amended and Restated Limited
Liability Company Agreement of BioFuel Energy, LLC, a Delaware limited liability
company, dated June 19, 2007.

            "Members" has the meaning set forth in the LLC Agreement.

            "Person" means any individual, corporation, partnership, limited
liability company, joint venture, association, joint-stock company, trust,
unincorporated organization, government or any agency or political subdivision
thereof or any other entity.

            "Prohibited Party" means any one of the Persons listed on Schedule A
attached hereto, which may be updated by Cargill on an annual basis, and
affiliates of such Persons; provided that in no event may there be more than
five (5) Prohibited Parties at any time (excepting affiliates of such Prohibited
Parties).

            "Subsidiary" means, with respect to any Person, any corporation,
limited liability company, partnership, association or business entity of which
(i) if a corporation,

                                                                               3

a majority of the total voting power of shares of stock entitled (without regard
to the occurrence of any contingency) to vote in the election of directors,
managers or trustees thereof is at the time owned or controlled, directly or
indirectly, by that Person or one or more of the other Subsidiaries of that
Person or a combination thereof or (ii) if a limited liability company,
partnership, association or other business entity (other than a corporation), a
majority of partnership or other similar ownership interest thereof is at the
time owned or controlled, directly or indirectly, by any Person or one or more
Subsidiaries of that Person or a combination thereof. For purposes hereof, a
Person or Persons shall be deemed to have a majority ownership interest in a
limited liability company, partnership, association or other business entity
(other than a corporation) if such Person or Persons shall be allocated a
majority of limited liability company, partnership, association or other
business entity gains or losses or shall be or control any managing director or
general partner of such limited liability company, partnership, association or
other business entity. For purposes hereof, references to a "Subsidiary" of any
Person shall be given effect only at such times that such Person has one or more
Subsidiaries.

            "Units" has the meaning set forth in the LLC Agreement.

            "Voting Securities" means the number of securities of the Company
that is determined by adding together (a) the number of outstanding shares of
Common Stock and (b) the number of outstanding shares of Class B Stock.

            SECTION 1.02. Other Defined Terms. The following capitalized terms
are defined in this Agreement in the Section indicated below:

      Defined Term                                           Section
      ------------                                           -------
      Company                                                Preamble
      Control Event                                          2.01(a)
      Termination Notice                                     2.02

            SECTION 1.03. Rules of Construction. Unless the context otherwise
requires, references to sections or subsections refer to sections or subsections
of this Agreement. Whenever required by context, the singular form of nouns,
pronouns and verbs shall include the plural and vice versa.

                                   ARTICLE II

                              Transfer Restrictions

            SECTION 2.01. Prohibited Parties. (a) Cargill Parent or any of its
controlled affiliates, as party to any of the Cargill Arrangements, shall have
the right, but not the obligation, to terminate, in its sole discretion, any or
all of the Cargill Arrangements in accordance with the procedures set forth in
Section 2.02 if a Prohibited Party obtains control of the Company (a "Control
Event"). The Company shall cause

                                                                               4

any of its controlled affiliates that are affected by any such termination not
to object to such termination. For purposes of the definition of "Control
Event", "control" shall mean either (i) the direct or indirect ownership of more
than thirty percent (30%) of the Voting Securities or (ii) the power to elect a
majority of the Board of Directors.

            (b) If a Control Event occurs, then, no later than 10 calendar days
following the date on which the Company learns or reasonably should have learned
of such Control Event, the Company must provide written notice to Cargill;
provided, however, that any failure by the Company to provide written notice to
Cargill of a Control Event does not diminish or derogate in any way the
termination rights regarding the Cargill Arrangements as contemplated by this
Section 2.01.

            SECTION 2.02. Termination Procedures. Any termination of the Cargill
Arrangements pursuant to Section 2.01 must be communicated by Cargill Parent or
one of the controlled affiliates of Cargill Parent, as an applicable party to
the Cargill Arrangement, by providing written notice to the Company (a
"Termination Notice") no later than 60 calendar days following the Company's
written notice to Cargill of a Control Event pursuant to Section 2.01(b). Any
such termination will be effective no earlier than 120 days following the date
of the Termination Notice; provided that the Company will use its reasonable
best efforts to cause the termination to be effective (by finding a replacement
for Cargill Parent or the applicable affiliate of Cargill Parent), as promptly
as possible.

            SECTION 2.03. Cargill Confidential Information. If Cargill obtains
knowledge of a Control Event (whether by receiving a written notice from the
Company pursuant to Section 2.01(b) or otherwise) then any of Cargill, Cargill
Parent or their respective affiliates may take whatever reasonable steps that
they deem appropriate or necessary to limit, manage, restrict or otherwise
control the disclosure to, and use by, the Company and its affiliates of any
confidential or proprietary information previously disclosed or that would
otherwise be disclosed by Cargill, Cargill Parent or their respective affiliates
pursuant to any Cargill Arrangements, unless and until such time as Cargill
Parent or all of the applicable affiliates of Cargill Parent have provided
written notice to the Company of their decision not to terminate any of the
Cargill Arrangements in connection with a Control Event, or, in the case where
Cargill gives notice of termination, the effective date of such termination;
provided that, until the effectiveness of any termination or expiration of the
Cargill Arrangements, Cargill Parent or its controlled affiliates, as an
applicable party to the Cargill Arrangements, shall use reasonable efforts to
minimize disruption to, and interference with, the Company's operations or the
performance of their respective obligations under the contracts governing the
Cargill Arrangements.

                                   ARTICLE III

                         Business Expansion Restrictions

            SECTION 3.01. Change in Project Scope. (a) Prior to effecting a
Business Expansion, the Company must obtain the approval of Cargill. Before
seeking Cargill's approval, the Company shall consult with Cargill regarding the
nature of the

                                                                               5

proposed Business Expansion and shall provide Cargill with details, projections,
business plans and any related materials as may be reasonably requested by
Cargill. Once the Company has provided Cargill with all reasonably requested
materials as contemplated by this Section 3.01(a), the Company shall provide
Cargill with a written request to effect the Business Expansion. No later than
45 calendar days following the Company's written request (the "Business
Expansion Response Period"), Cargill shall respond in writing to the Company
indicating whether Cargill grants its consent to the Company's request to effect
a Business Expansion. If Cargill does not consent or fails to respond within the
Business Expansion Response Period, then the Company and Cargill shall follow
the procedures described in Section 3.01(b).

            (b) If Cargill has not consented or has failed to respond to the
Company's request pursuant to Section 3.01(a) to effect a Business Expansion
prior to the end of the Business Expansion Response Period, then the Company
may, in its sole discretion, provide Cargill with a written notice, no later
than 30 calendar days following Cargill's written notice denying Cargill's
consent to the Business Expansion or the end of the Business Expansion Response
Period, advising Cargill that either (i) the Company has abandoned the proposed
Business Expansion or (ii)(A) Cargill must exchange the Units then owned by
Cargill for shares of Common Stock in accordance with Section 8.03 of the LLC
Agreement and (B) Cargill must sell the Common Stock then owned by Cargill (and
received in exchange for Units either as a result of the exchange described in
clause (ii)(A) above or as a result of an earlier exchange of Units) to the
Company or to one or more Members or other Persons reasonably acceptable to
Cargill (but not any Prohibited Party) designated by the Company, at a price
equal to the amount of Cargill's capital contributions (whether in cash or
in-kind) attributable to such shares of Common Stock. Any such sale must be
completed no later than 60 calendar days after the Company's notice to Cargill
and the consideration for such purchase must be in cash. Following completion of
the Company's purchase right as contemplated by this Section 3.01(b), the
Company will no longer be restricted with respect to any Business Expansion.

                                   ARTICLE IV

                                  Miscellaneous

            SECTION 4.01. Notices. All notices, demands or other communications
provided for or permitted hereunder shall be made in writing and shall be by
registered or certified first-class mail, return receipt requested, telecopier,
courier service or personal delivery:

            (a) if to the Company:

                  BioFuel Energy Corp.
                  1801 Broadway, Suite 1060
                  Denver, CO 80202
                  Telephone: (303) 592-8110
                  Attention: Scott H. Pearce

                                                                               6

            (b) if to Cargill:

                  Cargill Biofuels Investments, LLC
                  c/o Cargill, Incorporated
                  15407 McGinty Road West
                  Wayzata, MN  55391-2399
                  Attention: Ethanol Strategic Account Leader / MS 62

            All such notices, demands and other communications shall be deemed
to have been duly given: (i) when delivered by hand, if personally delivered;
(ii) when delivered by courier, if delivered by commercial courier service;
(iii) five (5) Business Days after being deposited in the mail, postage prepaid,
if mailed; and (iv) when receipt is mechanically acknowledged, if telecopied.
Any party may by notice given in accordance with this Section 4.01 designate
another address or Person for receipts of notices hereunder.

            SECTION 4.02. Successors and Assigns; Third-Party Beneficiaries.
This Agreement shall inure to the benefit of and be binding upon successors and
permitted assigns of the parties hereto. This Agreement is not assignable,
except in connection with a transfer of Units or Common Stock in accordance with
the LLC Agreement or the Certificate by Cargill to a controlled affiliate of
Cargill Parent. No Person other than the parties hereto and their successors and
permitted assigns is intended to be a beneficiary of this Agreement.

            SECTION 4.03. Amendment and Waiver. (a) No failure or delay on the
part of any party hereto in exercising any right, power or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such right, power or remedy preclude any other or further exercise thereof
or the exercise of any other right, power or remedy. The remedies provided for
herein are cumulative and are not exclusive of any remedies that may be
available to the parties hereto at law, in equity or otherwise.

            (b) Except as otherwise provided herein, any amendment, supplement
or modification of or to any provision of this Agreement shall be effective only
if it is made or given in writing and signed by each of the Company and Cargill.
Any waiver of any provision of this Agreement and any consent to any departure
by any party from the terms of any provision of this Agreement shall be
effective only if it is in writing and signed by the party waiving its right or
consenting to such departure. Any such amendment, supplement, modification,
waiver or consent shall be binding upon the Company and Cargill.

            SECTION 4.04. Counterparts. This Agreement may be executed in any
number of counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement. Any counterpart or other signature hereupon delivered by facsimile
shall be deemed for all purposes as constituting good and valid execution and
delivery of this Agreement by such party.

                                                                               7

            SECTION 4.05. Specific Performance. The parties hereto intend that
each of the parties have the right to seek damages or specific performance in
the event that any other party hereto fails to perform such party's obligations
hereunder. Therefore, if any party shall institute any action or proceeding to
enforce the provisions hereof, any party against whom such action or proceeding
is brought hereby waives any claim or defense therein that the plaintiff party
has an adequate remedy at law.

            SECTION 4.06. Headings. The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

            SECTION 4.07. Severability. If any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable in any respect for any reason, the validity,
legality and enforceability of any such provision in every other respect and of
the remaining provisions hereof shall not be in any way impaired, unless the
provisions held invalid, illegal or unenforceable shall substantially impair the
benefits of the remaining provisions hereof.

            SECTION 4.08. Entire Agreement. This Agreement is intended by the
parties as a final expression of their agreement and intended to be a complete
and exclusive statement of the agreement and understanding of the parties hereto
in respect of the subject matter contained herein. There are no restrictions,
promises, representations, warranties or undertakings, other than those set
forth or referred to herein. This Agreement supersedes all prior agreements and
understandings among the parties with respect to such subject matter.

            SECTION 4.09. Term of Agreement. This Agreement shall become
effective upon the execution hereof and shall terminate (i) when (a) Cargill
ceases to hold any Common Stock or Units and (b) none of Cargill Parent or any
of its controlled affiliates is a provider to the Company of any of the services
contemplated by the Cargill Arrangements or (ii) upon the written agreement of
each of the parties hereto.

            SECTION 4.10. Further Assurances. Each of the parties shall, and
shall cause their respective affiliates to, execute such documents and perform
such further acts as may be reasonably required or desirable to carry out or to
perform the provisions of this Agreement.

            SECTION 4.11. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware, without regard
to its conflict of laws principles.

            SECTION 4.12. Other Rights. The Company agrees that it will not
enter into, or cause or permit any of its Subsidiaries to enter into, any
agreement that conflicts with, limits or prohibits the exercise of the rights
granted to Cargill in this Agreement.

            SECTION 4.13. Consent to Jurisdiction: No Jury Trial. Any legal
action, suit or proceeding arising out of or relating to this Agreement may be
instituted in any federal court in the Southern District of New York, or in any
state court in which venue would otherwise be properly located in the Southern
District of New York, and each

                                                                               8

party waives any objection which such party may now or hereafter have to the
laying of the venue of any such action, suit or proceeding, and irrevocably
submits to the jurisdiction of any such court. Any and all service of process
and any other notice in any such action, suit or proceeding will be effective
against any party if given as provided herein. Nothing herein contained will be
deemed to affect the right of any party to serve process in any manner permitted
by law or to commence legal proceedings or otherwise proceed against any other
party in any jurisdiction other than New York. THE PARTIES HEREBY WAIVE TRIAL BY
JURY IN ANY ACTION, SUIT PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THEM
AGAINST THE OTHER IN ANY MATTERS ARISING OUT OF OR IN ANY WAY CONNECTED WITH
THIS AGREEMENT.

            IN WITNESS WHEREOF, the undersigned have executed, or have caused to
be executed, this Agreement on the date first written above.

                                           BIOFUEL ENERGY CORP.

                                             by

                                                /s/ Scott H. Pearce
                                             -----------------------------------
                                             Name:  Scott H. Pearce
                                             Title: President & CEO

                                           CARGILL BIOFUELS INVESTMENTS, LLC

                                             by

                                                /s/ Patrick C. Bennett
                                             -----------------------------------
                                             Name: Patrick C. Bennett
                                             Title: Authorized Officer

                                                                      Schedule A

                               PROHIBITED PARTIES

Archer Daniels Midland Company
CHS Inc.
Tate & Lyle PLC
The Scoular Company
Bunge LimitedExhibit 10.5
	 

	 
		 
	 

	 
		SEPARATION, CONSULTING AND MUTUAL
		RELEASE AGREEMENT
	 

	 
		THIS SEPARATION, CONSULTING AND MUTUAL
		RELEASE AGREEMENT (the “Agreement”) is between BioFuel Energy Corp.,
		a Delaware corporation, together with its subsidiaries (the
		“Company”) and Eric D. Streisand (“Streisand”)
		(collectively, the “Parties”).
	 

	 
		I. COVENANTS
	 

	 
		In consideration of the mutual promises and
		covenants contained herein, and other good and valuable consideration, the
		receipt and sufficiency of which is hereby acknowledged, it is hereby agreed by
		and between the parties, as follows: 
	 

	 
		A. Separation. The
		Parties mutually agree that Streisand will cease all of his duties as an
		officer and employee with the Company as of 5:00 P.M., Mountain Standard Time
		on August 31, 2007 (the “Effective Date”). 
	 

	 
		(1) As a result of this separation,
		Streisand shall be legally-entitled to receive:
	 

	 
		(a) Payment for all unpaid, accrued salary,
		net of applicable taxes and withholdings, earned by Streisand in connection
		with his employment with the Company through the Effective Date.
	 

	 
		(b) Payment for thirteen (13) accrued,
		unused vacation days, net of applicable taxes and withholdings through the
		Effective Date.
	 

	 
		(c) After the Effective Date, Streisand
		shall be eligible for continuation of medical and dental insurance coverage for
		eighteen (18) months or such longer period as covered under the Consolidated
		Omnibus Budget Reconciliation Act, as amended (“COBRA”) or similar
		applicable state laws and the insurance policies and rules applicable to the
		Company. If Streisand does not elect to continue medical and dental coverage
		under COBRA, Streisand’s current coverage elections will end on August 31,
		2007 and Streisand will not be eligible to receive insurance or any other form
		of benefit from the Company after the Effective Date. Provided that Streisand
		elects to continue medical and dental coverage under COBRA, Streisand’s
		current coverage elections will be continued and paid for by the Company
		through a date no later than June 30, 2008 (such date to be determined under
		Section C below) and may be continued at Streisand’s expense thereafter
		until the end of Streisand’s eligibility under COBRA. 
	 

	 
		(2) All other benefits provided by the
		Company, including 401(k) plan, life insurance, AD & D insurance, LTD
		insurance and any other benefit offered by the Company, will terminate as of
		the Effective Date. All unvested options under the Company’s 2007 Equity
		Incentive Compensation Plan as of the Effective Date shall be terminated,
		forfeited and/or cancelled, and Streisand shall have no right to compensation,
		remuneration, distributions or dividends with respect to such unvested options.
		
	 

	 
		 
	 

	 
		2
	 

	 
		 
	 

	 
	 

	 

	 
		B. Consulting Agreement. 
	 

	 
		(1) The Company agrees to engage Streisand
		to provide consulting services to the Company from September 1, 2007 through
		December 31, 2007 (the “Consultancy Period”) and to pay him in
		connection therewith the total sum of an amount equal to four (4) months’
		salary (the “Consultancy Payment”) to be paid in equal monthly
		installments on the last day of each month through the end of the Consultancy
		Period;
	 

	 
		(2) During the Consultancy Period, Streisand
		agrees to make himself available, upon reasonable notice, to assist the Company
		with discrete tasks which it may reasonably request on an as-needed
		basis;
	 

	 
		(3) During the Consultancy Period, the
		Company agrees to permit Streisand to continue the use of his Company e-mail
		account to receive incoming messages to be forwarded to Streisand’s
		personal e-mail account; 
	 

	 
		(4) During the Consultancy Period, the
		Company agrees to permit Streisand to continue the use of a Company voicemail
		account at the Denver office with a mutually agreed upon outgoing
		message;
	 

	 
		(5) During the Consultancy Period, the
		Company agrees to permit Streisand to continue the use of his Company
		laptop;
	 

	 
		(6) Streisand may terminate the Consultancy
		Period at any time for any reason by providing the Company with two (2) days
		written notice of his intent to do so; the Company may terminate the
		Consultancy Period at any time for any reason by providing Streisand with
		thirty (30) days written notice of its intent to do so; and
	 

	 
		(7) Should the Consultancy Period be
		terminated by Streisand, only any unpaid balance of the Consultancy Payment
		through the date of the termination shall be paid to Streisand; should the
		Consultancy Period be terminated by the Company, the unpaid balance of the
		total Consultancy Payment remaining at the time of termination shall be paid to
		Streisand; all payments hereunder shall be made as soon as administratively
		practicable following any such termination. 
	 

	 
		C. COBRA Payment.
		The Company agrees to pay the COBRA premium for Streisand through a date no
		later than June 30, 2008 (the “COBRA Payment”) subject to the
		following: if Streisand accepts other employment prior to June 30, 2008 which
		provides medical and dental benefits, then the COBRA Payment will cease as of
		the date Streisand becomes covered under the new health policy. 
	 

	 
		D. Nondisparagement. Streisand agrees not to disparage the Company or its
		officers, directors, shareholders, or employees, and the Company agrees not to
		disparage Streisand, in any matter likely to be harmful to the other party or
		their personal or business reputation. The parties
	 

	 
		 
	 

	 
		3
	 

	 
		 
	 

	 
	 

	 

	 
		further agree that notwithstanding this
		non-disparagement agreement, each party shall respond accurately and fully to
		any question, inquiry, or request for information required by legal or
		administrative process, or, in the case of the Company, to fulfill any standard
		or legally required reporting or disclosure requirements. In response to any
		request concerning employment references for Streisand or any written or
		verified background check regarding Streisand, the Company shall provide the
		following information if requested: (i) Streisand’s dates of employment;
		(ii) Streisand’s rate of compensation at Two Hundred and Forty Thousand
		Dollars and No Cents ($240,000.00) per year; (iii) eligibility for receipt of
		an annual cash bonus; and (iv) Streisand’s last job title, Vice
		President-Corporate Development. Streisand authorizes, and the Company
		designates, Thomas J. Edelman, Scott H. Pearce and David J. Kornder to respond
		to any request concerning employment references for Streisand or any background
		check into Streisand’s employment.
	 

	 
		E. Public Statements. The Parties agree that the language set forth on
		Exhibit A will be filed by the Company on a Form 8-K to disclose
		Streisand’s separation from the Company. 
	 

	 
		F. Release of All Claims by Streisand. In consideration of the promises and covenants made
		herein, Streisand, on behalf of Streisand and Streisand’s heirs,
		executors, administrators, personal representatives and assigns, does hereby
		RELEASE, ACQUIT AND FOREVER DISCHARGE the Company and its past, present and
		future affiliates, parents, subsidiaries and successors, and each of their
		past, present and future officers, directors, shareholders, employees, agents,
		representatives, attorneys, insurers and their respective successors and
		assigns (all of whom are hereinafter collectively referred to as
		“Releasees”) from any and all actions, causes of action, claims,
		demands, cost and expenses, including attorneys’ fees and liabilities of
		any kind or and nature whatsoever, in law or equity, whether known or unknown,
		accrued or to accrue hereafter, which Streisand ever had, now has or may
		hereafter have against Releasees, as of the date of this Agreement and through
		the Effective Date, arising out of any act, omission, transaction or
		occurrence, including, without limitation, those related to Streisand’s
		employment by the Company or the termination thereof. Without limiting the
		generality of the foregoing, it is understood and agreed that this Release
		constitutes a release of any claim or cause of action (i) in tort, including
		but not limited to claims for slander, libel, negligence, gross negligence,
		negligent supervision or training, conspiracy, intentional or negligent
		infliction of emotional distress, mental anguish, invasion of privacy, assault,
		battery, false imprisonment, tortious interference with contractual relations,
		wrongful discharge, pain and suffering, breach of covenant of good faith and
		fair dealing, invasion of privacy and (ii) for breach of any employment or
		other agreement existing between Streisand and the Company or (iii) otherwise
		related, in any way, to Streisand’s employment by the Company, including
		claims under Title VII of the Civil Rights Act of 1964 (and all of its
		amendments), the Age Discrimination in Employment Act, the Older Workers
		Benefit Protection Act, the Americans with Disabilities Act, as amended, the
		Fair Credit Reporting Act, the Sarbanes-Oxley Act, the Colorado Civil Rights
		Act, the Colorado Wage Act, any applicable New York law or statute and any
		other statute or regulation governing the employment relationship or
		Streisand’s rights, or the Company’s obligations, in connection
		therewith. This Release also includes a release of any right to bring an
		administrative claim or charge against the Company regarding any matter
		relating to the Company, its business operations, or Streisand’s
		employment to the maximum 
	 

	 
		 
	 

	 
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		extent permitted by law. Streisand agrees
		that this legal release is intended to be interpreted in the broadest possible
		manner in favor of the Company, to include all actual or potential legal claims
		that Streisand may have against the Company, except as specifically provided
		otherwise in this Agreement. Streisand covenants never to institute any action
		or other proceeding based in whole or part upon any right or claim released by
		this Agreement and acknowledges that if he does so, the Company is entitled to
		recover from Streisand any attorneys’ fees it expends to defend any such
		action or proceeding. Streisand hereby warrants that he has not assigned or
		transferred to any person any portion of any claim that is released, waived and
		discharged above. 
	 

	 
		G. Release of Claims by the Company. In consideration of the promises and covenants made
		herein, the Company, for itself, its affiliates, and any other person or entity
		that could or might act on behalf of it including, without limitation, its
		attorneys (all of whom are collectively referred to as “Company
		Releasers”), does hereby RELEASE, ACQUIT AND FOREVER DISCHARGE Streisand,
		his heirs, representatives, assigns, attorneys, and any and all other persons
		or entities that are now or may become liable to any Company Releaser on
		account of Streisand’s employment with the Company or separation
		therefrom, all of whom are collectively referred to as “Company
		Releasees,” of and from any and all actions, causes of action, claims,
		demands, costs and expenses, including attorneys’ fees, of every kind and
		nature whatsoever, in law or in equity, whether now known or unknown, that
		Company Releasers, or any person acting under any of them, may now have, or
		claim at any future time to have, based in whole or in part upon any act or
		omission occurring as of the date of this Agreement and through the Effective
		Date, without regard to present actual knowledge of such acts or omissions;
		EXCEPT for claims based on any fraudulent actions by Streisand and EXCEPT as
		specifically provided otherwise in this Agreement. The Company understands and
		agrees that by signing this Agreement, it is giving up its right to bring any
		legal claim against Streisand concerning, directly or indirectly,
		Streisand’s employment relationship with the Company. The Company agrees
		that this legal release is intended to be interpreted in the broadest possible
		manner in favor of Streisand, to include all actual or potential legal claims
		that the Company may have against Streisand, except as specifically provided
		otherwise in this Agreement.
	 

	 
		H. Indemnification of Streisand. Notwithstanding the foregoing, the Company agrees to
		defend and indemnify Streisand against any legal action, arbitration,
		proceeding, claim or charge, action and/or proceeding against Streisand,
		individually and/or with others, to the same extent that Streisand would have
		been entitled to be defended and/or indemnified had he continued his employment
		with the Company.
	 

	 
		II. CONFIDENTIAL INFORMATION
	 

	 
		A. Protection of Trade Secrets and Confidential
		Information.
	 

	 
		(1) Definition of “Confidential
		Information.” “Confidential
		Information” means all nonpublic information relating to or arising from
		the Company’s business, including, without limitation, trade secrets used,
		developed or acquired by the Company in connection with its business. Without
		limiting the generality of the foregoing, “Confidential Information”
		shall 
	 

	 
		 
	 

	 
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		specifically include all information
		concerning the manner and details of the Company’s operation, organization
		and management; financial information and/or documents and nonpublic policies,
		procedures and other printed, written or electronic material generated or used
		in connection with the Company’s business; the Company’s business
		plans and strategies, including but not limited to all information associated
		with any ethanol project which the Company formed an intention to develop, form
		or acquire prior to the end of the Consultancy Period. “Confidential
		Information” does not include information that is in the public domain
		through no wrongful act on the part of Streisand or known to Streisand prior to
		employment with the Company.
	 

	 
		(2) Streisand’s Use of Confidential
		Information. Except in connection with
		and in furtherance of Streisand’s work on the Company’s behalf,
		Streisand shall not, without the Company’s prior written consent, at any
		time, directly or indirectly: (i) use any Confidential Information for any
		purpose; or (ii) disclose or otherwise communicate any Confidential Information
		to any person or entity; or (iii) participate in any business opportunity that
		inevitably will result in the disclosure or use of any Confidential
		Information.
	 

	 
		(3) Acknowledgments.
		Streisand acknowledges that during his employment with the Company, Streisand
		had access to Confidential Information, all of which was made accessible to
		Streisand only in strict confidence; that unauthorized disclosure of
		Confidential Information will damage the Company’s business; that
		Confidential Information would be susceptible to immediate competitive
		application by a competitor of the Company’s; that the Company’s
		business is substantially dependent on access to and the continuing secrecy of
		Confidential Information; that Confidential Information is novel, unique to the
		Company and known only to Streisand, the Company and certain key employees and
		contractors of the Company; that the Company shall at all times retain
		ownership and control of all Confidential Information; and that the
		restrictions contained in this agreement are reasonable and necessary for the
		protection of the Company’s legitimate business interests.
	 

	 
		(4) Records Containing Confidential Information and Return
		of Company Property. “Confidential
		Records” means all documents and other records, whether in paper,
		electronic or other form, that contain or reflect any Confidential Information.
		All Confidential Records prepared by or provided to Streisand are and shall
		remain Company property. Streisand shall not, at any time, directly or
		indirectly: (i) copy or use any Confidential Record for any purpose; or (ii)
		show, give, sell, disclose or otherwise communicate any Confidential Record or
		the contents of any Confidential Record to any person or entity. Upon the
		termination of Streisand’s employment with the Company on the Effective
		Date, Streisand shall immediately deliver to the Company (and shall not keep in
		Streisand’s possession or deliver to any other person or entity) all
		Confidential Records and all other Company property in Streisand’s
		possession or control, including the return of the Company’s cellphone and
		files in Streisand’s possession; provided, however, that Streisand shall
		have access to such Confidential Records as necessary to provide consulting
		services during the Consultancy Period. This Agreement shall not prohibit
		Streisand from complying with any subpoena or court order, provided that
		Streisand shall at the earliest practicable date provide a copy of the subpoena
		or court order to the 
	 

	 
		 
	 

	 
		6
	 

	 
		 
	 

	 
	 

	 

	 
		Company’s President, it being the
		parties’ intention to give the Company a fair opportunity to take
		appropriate steps to prevent the unnecessary and/or improper use or disclosure
		of Confidential Information and Confidential Records, as determined by the
		Company in its sole discretion.
	 

	 
		(5) Third-Parties’ Confidential
		Information. Streisand acknowledges
		that, during his employment, the Company has received from third parties
		confidential or proprietary information, and that the Company must maintain the
		confidentiality of such information and use it only for authorized purposes.
		Streisand shall not use or disclose any such information without prior written
		authorization from the Company or the third party to whom the information
		belongs.
	 

	 
		III. ADDITIONAL PROVISIONS
	 

	 
		A. Streisand’s Voluntary Execution of
		Agreement. Except as expressly provided
		herein, Streisand acknowledges that he will not receive, nor is he entitled to,
		any payment or consideration. The mutual covenants, promises and payments
		(including the COBRA Payment and the Consultancy Payment) set forth herein are
		full and fair consideration for this Agreement including the release provisions
		hereof. Streisand acknowledges that in executing this Agreement, he has
		reviewed and understands its terms and has had an opportunity to seek advice of
		counsel of his own choosing, was fully advised of his rights under law, and has
		acted knowingly and voluntarily in the execution of this Agreement. By entering
		into this Agreement neither the Company nor Streisand admit any liability to
		the other. 
	 

	 
		B. Cumulative Rights. The Company’s rights and remedies under this
		Agreement hereof are cumulative and are in addition to any other rights and
		remedies the Company may have at law or in equity. 
	 

	 
		C. Entire Agreement. This Agreement constitutes the complete, entire, final
		and exclusive agreement between Streisand and the Company and supersedes any
		prior agreement, whether written or oral, with regard to the subject matter
		hereof. This Agreement has been entered into by the Parties without reliance on
		any promise or representation, written or oral, other than those expressly
		contained herein. 
	 

	 
		D. Modification of Agreement Only in
		Writing. This Agreement may not be
		modified, except in writing, signed by Streisand and a duly authorized officer
		of the Company.
	 

	 
		E. Governing Law and Jurisdiction. This Agreement has been drafted in accordance with and
		shall be construed and enforced in accordance with and governed by the laws of
		the State of Colorado. 
	 

	 
		F. Severability. 
		The Parties intend that this Agreement be enforced according to its terms. If
		any one or more provision of this Agreement is determined to be invalid,
		illegal, or unenforceable, in whole or in part, this determination will not
		affect or impair any other provision of 
	 

	 
		 
	 

	 
		7
	 

	 
		 
	 

	 
	 

	 

	 
		this Agreement. Any provision found to be
		invalid, illegal, or unenforceable shall be deemed, without further action on
		the part of the parties, to be modified, amended, or limited to the minimum
		extent necessary to render the provision valid and enforceable.
	 

	 
		G. Waiver of Terms and Conditions. Except as specifically set forth in this Agreement, no
		waiver of any term or provision of this Agreement will be valid unless such
		waiver is in writing, signed by the party against whom enforcement of the
		waiver is sought. The waiver of any term or provision of this Agreement shall
		not apply to any subsequent breach of this Agreement.
	 

	 
		H. Attorneys’ Fees. In the event of any proceeding, claim, or action being
		filed or instituted between the parties with respect to this Agreement, the
		prevailing party will be entitled to receive from the other party all costs,
		damages and expenses, including reasonable attorneys’ fees, incurred by
		the prevailing party in connection with that action or proceeding, whether or
		not the controversy is reduced to judgment or award. The prevailing party will
		be that party who may be fairly said by the trier of fact to have prevailed on
		the major disputed issues.
	 

	 
		I. No
		Other Representation. The Parties
		acknowledge that no promise or representations have been made to induce them to
		sign this Agreement other than as expressly set forth herein and that each has
		signed this Agreement as a free and voluntary act.
	 

	 
		J. Captions. The
		captions in this Agreement are for convenience and reference only, and shall
		not define or limit any of the terms or provisions of this Agreement. 
	 

	 
		[SIGNATURES FOLLOW]
	 

	 
		 
	 

	 
		8
	 

	 
		 
	 

	 
	 

	 

	 
		SIGNATURE PAGE
	 

	 
		IN WITNESS WHEREOF, the Parties execute this
		Separation, Consulting and Mutual Release Agreement.
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  BIOFUEL ENERGY CORP.
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By:  
				

			 	
				
				  
 /s/ David J. Kornder
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name: David J. Kornder

				  Title: Executive Vice President & Chief
				  Financial Officer
 Date: August 9,
				  2007
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  /s/ Eric D. Streisand
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Eric D. Streisand

				  Date: August 9, 2007
				

			 

 

	 
		 
	 

	 
		9
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT A
	 

	 
		The following (or substantially similar)
		text shall be included in a Form 8-K to be filed with the SEC by the
		Company:
	 

	 
		“The Company announced that effective
		August 31, 2007, Eric D. Streisand, the Company’s Vice President –
		Corporate Development, would be leaving the Company to pursue other business
		opportunities. The Company and Mr. Streisand have entered into a
		consulting agreement to facilitate an orderly transition of his
		duties.”
	 

	 
		 
	 

	 
		10

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