Document:

Exhibit
        10.9.1

       

    

    AMENDMENT
      NUMBER ONE TO

    COAL
      SUPPLY AGREEMENT

    

    This
      Amendment Number One to COAL SUPPLY AGREEMENT, made and entered into this
      1st
      day of
      October 2007, is by and between Williams
      Bulk Transfer Inc., with
      offices in Williams, Iowa ("WBT");
      and
Lincolnway
      Energy, LLC,
      with
      offices in Nevada, Iowa ("LWE").

    

    WITNESSETH:

    

    WHEREAS,
      WBT and LWE are parties to a Coal Supply Agreement dated July 14, 2005,
      and

    

    WHEREAS,
      WBT and LWE desire to amend that Coal Supply Agreement,

    

    THEREFORE,
      in consideration of the covenants hereinafter contained, it is mutually agreed
      by and between the parties that the Coal Supply Agreement shall be amended
      on
      the day first signed above as follows:

    

    
      	 	
              1)

            	
              SECTION
                1. TERM
                shall be deleted in its entirety and replaced with the
                following:

            

    

    

    This
      Agreement shall commence on the day first signed above and expire as of January
      1, 2013 ("Term").

    

    
      	 	
              2)

            	
              SECTION
                2. QUANTITY
                shall be deleted in its entirety and replaced with the
                following:

            

    

    

    LWE
      shall
      purchase one hundred percent (100%) of the Plant's coal via this Agreement.
      WBT
      shall provide to LWE up to 220,000 Tons of Coal per year at a per Ton price
      equal to the sum of the Coal Price and the Transportation Price for Coal (as
      defined in Sections 5 and 8) plus any subsequent price adjustments (defined
      in
      Sections 6 and 9) for the Term of this Agreement. 

    

    WBT
      shall
      make best efforts to maintain at all times a minimum of a twenty (20) day supply
      inventory of Coal at its terminal strictly for the benefit of LWE. 

    

    If
      LWE
      fails to purchase a minimum of 80,000 Tons of Coal from WBT in any calendar
      year
      ("Minimum Quantity Requirement"), LWE shall pay WBT (i) $16.00 per Ton of Coal
      (adjusted as provided in Section 6A) multiplied by the difference between the
      Minimum Quantity Requirement and the actual Tons of Coal purchased by LWE for
      the respective calendar year, less (ii) any amounts that WBT recovers by
      mitigating its damages. 

     

    
      
        

      

      *Portion
        omitted pursuant to request for confidential treatment filed separately with
        the
        Securities and Exchange Commission.

    

     

    
      
         

      

      
        E-26

        
          

        

      

      
         

      

    

     

    For
      purposes of this Agreement, "Ton" shall mean 2,000 pounds
      avoirdupois.

    

    
      	 	
              3)

            	
              SECTION
                5. TRANSPORTATION PRICE
                shall be deleted in its entirety and replaced with the
                following:

            

    

    

    
      	 	 	
              "Transportation
                Price" shall consist of the following components: (i) the cost of
                transloading Coal at WBT; (ii) the cost of transporting Coal from
                the
                Source to WBT via BNSF Railway ("BNSF") and CN Railroad ("CN"); and
                (iii)
                the cost of transporting the Coal from WBT to the Plant in bottom-dump
                trailers via motor transportation. On March 1, 2007, LWE's Transportation
                Price for Coal was $* per Ton, subject to the Transportation Price
                Adjustments as set forth in Section 6
                below.

            

    

    

    Effective
      January 2, 2008, $* per Ton shall be added to LWE's then current Transportation
      Price for Coal. On January 2, 2011, an additional $* per Ton shall be added
      to
      LWE's then current Transportation Price for Coal. In both cases the
      Transportation Price adjustments set forth in Section 6 shall then continue
      in
      full force and effect for the remainder of the Term of this
      Agreement.

    

    
      	 	
              4)
                

            	
              SECTION
                6. TRANSPORTATION PRICE ADJUSTMENTS
                shall be deleted in its entirety and replaced with the
                following:

            

    

    

    
      	 	
              A.

            	
              Beginning
                April 1, 2007 and each, July1, October 1, January 1 and April 1 thereafter
                the Transportation Rate shall be adjusted quarterly, upward or downward,
                by 100% of the quarterly percentage change in the All Inclusive Index
                -
                Less Fuel (AII-LF); provided, however, that in no case shall a
                Transportation Price adjusted below the initial Transportation Price
                stated herein. For each adjustment, the AII-LF for the current quarter
                will be divided by the AII-LF for the previous quarter. Initially
                the
                Transportation Price herein and subsequently the previous quarter's
                Transportation Price will be multiplied by the resulting factor to
                produce
                the adjusted transportation rates for the current quarter. Once the
                adjusted transportation rates have been calculated, any fraction
                less than
                one-half cent shall be dropped and any fraction equal to or greater
                than
                one-half cent shall be increased to the next whole cent. This adjustment
                shall also apply to short-fall amount of $16.00 stated in Section
                2 of
                this Agreement.

            

    

    
       

      
        
          

        

        *Portion
          omitted pursuant to request for confidential treatment filed separately
          with the
          Securities and Exchange Commission.

      

       

      
        
           

        

        
          E-27

          
            

          

        

        
           

        

      

       

    

    
      	 	
              B.

            	
              A
                Fuel Surcharge shall apply to the Transportation Price if the monthly
                average Retail On-Highway Diesel Fuel Price of the US is equal to
                or
                greater than $* per gallon. The governing index shall be the Energy
                Information Administration's average price in cents per gallon for
                Retail
                On-Highway Diesel Fuel for the US Diesel price, which information
                is
                available by calling the Energy Information Administration's Diesel
                Fuel
                Motor & Gasoline Hotline at (202) 568-6966 or the Administration's web
                page at www.eia.doe.gov.

            

    

    

    The
      Transportation Price shall be subject to adjustment once each month for fuel.
      The Fuel Surcharge for a given month will be determined based on the first
      of
      the prior month using the average weekly price of Retail On-Highway Diesel
      Fuel
      for the second month prior. The following table shall determine the Fuel
      Surcharge amount:

     

    
      	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            

    

    
       

      
        
          

        

        *Portion
          omitted pursuant to request for confidential treatment filed separately
          with the
          Securities and Exchange Commission.

      

       

      
        
           

        

        
          E-28

          
            

          

        

        
           

        

      

    

     

    
      	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            

    

     

      
        
          

        

        *Portion
          omitted pursuant to request for confidential treatment filed separately
          with the
          Securities and Exchange Commission.

      

       

      
        
           

        

        
          E-29

          
            

          

        

        
           

        

      

       

    

    
      	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            
	
              $*
                to
                $*

            	 	 	
              *

            	
              %

            

    

    

    For
      each
      $* per gallon increase (or fraction thereof) thereafter an additional *% will
      be
      applied.

    

    WBT
      will
      not impose a negative fuel surcharge (or refund) if the average price falls
      below $*
      per
      gallon. 

    

    The
      surcharge amount shall be rounded to the nearest one hundredth cent. For
      example, the average published price per gallon for the month of March, 2006
      was
      $2.478. Thus, the Fuel Surcharge amount for May, 2006 would have been *% and
      the
      Transportation Price would have been adjusted as follows:

    

    $*
      +
      ($*
      x *%) =
      $* or $*

    

    This
      Fuel
      Surcharge is based on the percentage based coal fuel surcharge program used
      by
      BNSF Railway as of March 15, 2007, as seen in BNSF Rules Book 6100.

    
       

      
        
          

        

        *Portion
          omitted pursuant to request for confidential treatment filed separately
          with the
          Securities and Exchange Commission.

      

       

      
        
           

        

        
          E-30

          
            

          

        

        
           

        

      

       

    

    
      	 	
              C.

            	
              LWE
                and WBT acknowledge that WBT's performance under this Agreement depends
                on
                WBT subcontractors for coal supply, rail and trucking services. If,
                during
                the Term of this Agreement, the coal suppliers, rail carriers or
                trucking
                companies used by WBT adjust their base rates or ancillary charges
                (such
                as fuel surcharge tables), or WBT experiences an event beyond the
                reasonable control of WBT that changes WBT's costs of transportation
                and
                delivery pursuant to this Agreement, WBT will provide LWE thirty
                (30) days
                advance written notice of such changes, and within sixty (60) days
                of that
                written notice the Parties may either negotiate a mutually agreeable
                price
                adjustment under this Agreement or terminate this Agreement; provided,
                however, that it is the intent of the Parties that any and each such
                price
                adjustment will be handled on a direct out-of-pocket cost, pass through
                basis.

            

    

    

    
      	 	
              5)

            	
              SECTION
                8. COAL PRICE(S)
                shall be amended by adding the following
                paragraph.

            

    

    

    The
      "Coal
      Price(s)" per calendar year shall be as follows based on a heat content of
      8,750
      BTU's per pound and subject to the Coal Price Adjustments in Section 9:

    

    
      	
              2008

            	 	
              $

            	
              *

            	 
	
              2009

            	 	
              $

            	
              *

            	 
	
              2010

            	 	
              $

            	
              *

            	 
	
              2011

            	 	
              $

            	
              *

            	 
	
              2012

            	 	
              $

            	
              *

            	 

    

    

    Environmental
      Force Majeure.
      As of
      the effective date of this Agreement, the Coal is or can currently be utilized
      at LWE's Plant in material compliance with all air pollution control and
      environmental laws, regulations, and requirements, as the same are currently
      enacted and/or promulgated. If any new environmental law is enacted or new
      regulation is promulgated and becomes effective during the Term of this
      Agreement that was not known as of the effective date, or reasonably should
      have
      been known as of the effective date, and if such new law or regulation has
      a
      material adverse effect on LWE's ability to utilize the Coal sold under this
      Agreement, then LWE shall promptly notify WBT in writing of the new
      environmental law or regulation. LWE shall undertake commercially reasonable
      efforts to change its operating procedures or equipment, or to utilize the
      coal
      at other affiliated facilities, in order to continue utilizing the maximum
      quantity of Coal within the existing Coal quality specifications. After all
      such
      efforts have been made, if LWE's ability to utilize said Coal of this quality
      at
      its Plant is reduced, then the reduction shall be allocated pro-rata across
      all
      multi-year coal agreements entered into prior to this Agreement; provided,
      however, that the quantity of WBT's Coal supplied to LWE shall not be reduced
      when LWE is accepting coals of typical quality to LWE's plant under any Coal
      agreement entered into subsequent to this Agreement. 

    
       

      
        
          

        

        *Portion
          omitted pursuant to request for confidential treatment filed separately
          with the
          Securities and Exchange Commission.

      

       

      
        
           

        

        
          E-31

          
            

          

        

        
           

        

      

       

      If
        by
        using the typical quality Coal LWE cannot materially comply with the new
        environmental laws and/or regulations, then LWE shall promptly notify WBT
        in
        writing of the new required Coal quality specifications. WBT shall consider
        and
        evaluate what steps can be reasonably taken in the mining and/or preparation
        of
        the Coal from the existing (primary) sources to meet the new Coal quality
        specifications. In the event the WBT can meet the new Coal quality
        specifications, WBT shall determine the increased costs, if any, anticipated
        by
        the WBT to be associated with meeting the new quality specifications. Based
        upon
        WBT's evaluation the parties shall have the following sequential options:
        

    

    

    
      	 	
              1.

            	
              If
                WBT's increased costs are less than or equal to 15% of the base price
                per
                ton, then LWE shall absorb said increased costs and shipments shall
                continue under the then current Agreement, as modified for the new
                Coal
                quality specifications, or

            

    

    

    
      	 	
              2.
                

            	
              If
                WBT's increased costs are greater than 15% of the base price per
                ton, then
                LWE shall have the option to absorb said total increased costs and
                shipments shall continue under the then current Agreement, as modified
                for
                the new Coal quality specifications,
                or

            

    

    

    
      	 	
              3.
                

            	
              If
                LWE does not agree to absorb increased costs greater than 15% of
                the base
                price per ton or WBT does not meet the new coal quality specifications,
                then WBT has the option to provide substitute Coal meeting the revised
                Coal quality specifications under said Agreement at the current equivalent
                delivered price plus 15% of the base price per ton; or if WBT does
                not
                exercise the option to provide substitute Coal as provided, then
                

            

    

    

    
      	 	
              4.
                

            	
              WBT
                shall have the right to match the product selected by LWE to replace
                the
                remaining Coal requirements for the remainder of the Term hereof.
                

            

    

    

    Changes
      in market conditions, commercial frustration, commercial impracticability or
      the
      occurrence of unforeseen events rendering performance of this Agreement
      uneconomical for LWE, shall not constitute a new environmental law or
      regulation.

    
       

      
        
          

        

        *Portion
          omitted pursuant to request for confidential treatment filed separately
          with the
          Securities and Exchange Commission.

      

       

      
        
           

        

        
          E-32

          
            

          

        

        
           

        

         

      

    

    
      	 	
              6)

            	
              SECTION
                9. COAL PRICE ADJUSTMENTS
                shall be deleted in its entirety and replaced with the
                following:

            

    

    

    The
      Coal
      Prices are firm for the Term of this Agreement subject only to adjustments
      for
      changes in laws and regulations that are enacted and in force or that expire
      during the Term of this Agreement that change Source's cost of producing,
      selling, loading, or shipping Coal during the Term of this Agreement. Such
      adjustments to the Coal Prices because of changes in laws or regulations shall
      be added to or subtracted from the Coal Prices on a direct pass-through basis.
      The Coal Prices stated in Section 8 includes reimbursement to Source of all
      environmental, land restoration and regulatory costs, including without
      limitation, any reclamation costs required under applicable federal, state
      or
      local law in effect as of March 29, 2007. 

    

    The
      federal statute (30 U.S.C. Section 1232) that provides for collection of the
      Federal Reclamation Fee for Abandoned Mine Lands ("AML") mandates two reductions
      from the rate in effect on March 29, 2007. The reductions are scheduled to
      become effective on October 1, 2007 and October 1, 2012. Notwithstanding
      anything contained in this Agreement to the contrary, these scheduled reductions
      in the AML fee and any change in regulations to implement them will have no
      effect on the Coal Price. If the federal government makes additional changes
      in
      the AML fees during the term of this Agreement, beyond those now scheduled
      to
      take effect on October 1, 2007 and on October 1, 2012, those changes shall
      be
      passed through to the Coal Price in accordance with the prior provisions of
      this
      Section 9.

    

    Adjustment
      for Inflation. The
      Coal
      Price per Ton set forth in Section 8 hereinabove shall be increased or decreased
      for each percentage point of change, or proportionately for fractional parts
      of
      a percentage point of change, to reflect changes in the following indices.
      The
      Coal Price will be adjusted per the indexes as weighted and detailed below.
      Changes shall become effective semi-annually as of January 1 and July 1 of
      each
      year, beginning January 1, 2008, and shall be based upon the preliminary indices
      for November of the prior year and May of the current year, respectively. The
      Gross Domestic Product-Implicit Price Deflator (GDP-IPD) shall be the
      preliminary indices for the third quarter of the prior year, and first quarter
      of the current year, respectively. The Prime Rate index shall be based on the
      Prime Rate on the 15th
      day of
      December and June, respectively. The index base and base amounts shall be the
      following:

    
       

      
        
          

        

        *Portion
          omitted pursuant to request for confidential treatment filed separately
          with the
          Securities and Exchange Commission.

      

       

      
        
           

        

        
          E-33

          
            

          

        

        
           

        

      

       

    

    
      	 	 	
              Index
                Weight

            	 	
              Index
                Base

            	 	 
	
              CPI
                (W) Urban Wage Earners and Clerical Workers-All Items
                cwur0000sa0*

            	 	
              30%

            	 	
              198.544

            	 	
              Preliminary
                February 2007

            
	
              PPI
                Industrial Commodities - Less Fuel & Pwr**

            	 	
              32%

            	 	
              169.0

            	 	
              Preliminary
                February 2007

            
	
              #2
                Diesel Fuel wpu057303 **

            	 	
              8%

            	 	
              193.5

            	 	
              Preliminary
                February 2007

            
	
              GDP-IPD
                ***

            	 	
              15%

            	 	
              116.890

            	 	
              Q4
                2006 Preliminary

            
	
              Prime
                Rate ****

            	 	
              15%

            	 	
              8.25

            	 	
              March
                29, 2007

            

    

    

    *
      U.S.
      Department of Labor, Bureau of Labor Statistics, Not Seasonally Adjusted,
      1982-84 = 100% basis.

    **U.S.
      Department of Labor, Bureau of Labor Statistics, Not Seasonally Adjusted, 1982
      =
      100% basis, preliminary basis.

    ***U.S.
      Department of Commerce, Bureau of Economic Analysis, Price Indexes for Gross
      Domestic Product - Implicit Price Deflator / Table 1.1.9 / Seasonally Adjusted,
      2000 = 100% basis, preliminary release.

    ***Prime
      Rate of interest as reported in the money rates section of the Wall Street
      Journal for the last business day of the quarter - as published on the
      subsequent business day.

    

    The
      impact of the semi-annual escalations, on a net basis, as weighted in the table
      above shall not impact the Coal Price until they exceed the Embedded Escalation
      Deadband of three percent (3%) per year on a semi-annual basis as follows
      (detail provided in Exhibit B-1, which is attached hereto and incorporated
      by
      this reference). 

    

    EMBEDDED
      INFLATION ESCALATION DEADBAND, 2008-2012

    

      
        	
                Escalation
                  Date

              	 	
                Quarterly
                  Increase

              	 	
                Cumulative
                  Increase

              	 
	
                JUL
                  1, 2007

              	 	
                $

              	
                *

              	 	
                $

              	
                *

              	 
	
                JAN
                  1, 2008

              	 	
                $

              	
                *

              	 	
                $

              	
                *

              	 
	
                JUL
                  1, 2008

              	 	
                $

              	
                *

              	 	
                $

              	
                *

              	 
	
                JAN
                  1, 2009

              	 	
                $

              	
                *

              	 	
                $

              	
                *

              	 
	
                JUL
                  1, 2009

              	 	
                $

              	
                *

              	 	
                $

              	
                *

              	 
	
                JAN
                  1, 2010

              	 	
                $

              	
                *

              	 	
                $

              	
                *

              	 
	
                JUL
                  1, 2010

              	 	
                $

              	
                *

              	 	
                $

              	
                *

              	 
	
                JAN
                  1, 2011

              	 	
                $

              	
                *

              	 	
                $

              	
                *

              	 
	
                JUL
                  1, 2011

              	 	
                $

              	
                *

              	 	
                $

              	
                *

              	 
	
                JAN
                  1, 2012

              	 	
                $

              	
                *

              	 	
                $

              	
                *

              	 
	
                JUL
                  1, 2012

              	 	
                $

              	
                *

              	 	
                $

              	
                *

              	 

      

    

     

      
        
          

        

        *Portion
          omitted pursuant to request for confidential treatment filed separately
          with the
          Securities and Exchange Commission.

      

       

      
        
           

        

        
          E-34

          
            

          

        

        
           

        

      

    

     

    Notwithstanding
      anything contained herein to the contrary, in no event shall the Coal Price
      as
      adjusted pursuant to this Section 9 at any time be less than the Coal Price,
      by
      calendar year, as set forth in Section 8 above.

    

    If
      the
      basis for any of the index numbers is changed, said index shall be adjusted
      to
      take into account such changed basis. In the event any designated index is
      discontinued or altered, becomes unavailable, or is no longer applicable, the
      Parties shall undertake to agree on a substitute index or a substitute method
      of
      cost adjustment which most closely matches the economic structure of the
      discontinued or altered index. If the Parties fail to reach agreement on the
      substitute index or method within ninety (90) calendar days, then the substitute
      index or substitute method of cost adjustment shall be submitted to arbitration
      and resolved. The values to perform the calculations set forth in this section
      shall be rounded to three decimal places.

    

    A
      hypothetical Coal Price escalation for illustration purposes is attached hereto
      as Exhibit B-2.

    

    Adjustments
      for BTU and Sulfur Dioxide. The
      Coal
      Price delivered during a calendar month shall also be adjusted for variations
      in
      calorific value and sulfur dioxide. Adjustments shall be added to or subtracted
      from, as the case may be, the Coal Price determined in accordance with Sections
      8 and 9 hereof. The adjustments shall be calculated as follows:

    

    Btu
      Adjustment Per Ton = ( P + $10.00 ) x ( AR
      - BB
      )

           
      BB

    Where:

    

      P
        =
        The
Price
        of
        coal per ton delivered during the month in Section 6,

      

      AR
        =
        The
        monthly weighted average "As-Received"
        Btu's per pound of the respective coal delivered to Buyer; and,

      

      BB
        = The
        Base
        Btu's
        per
        pound of the respective coal delivered to Buyer during
        the month; the
        BB value = [8,750]

    

    
       

      
        
          

        

        *Portion
          omitted pursuant to request for confidential treatment filed separately
          with the
          Securities and Exchange Commission.

      

       

      
        
           

        

        
          E-35

          
            

          

        

        
           

        

      

    SO2
      Adjustment Per Ton= ((BSD-ARSD)* (Monthly SO2
      value/2000)) * 17.6

    

    Where:

    

    Monthly
      SO2
      value
      = The
      simple arithmetic average of all S02
      allowance prices published in Air
      Daily
      for the
      applicable month. 

    

    
      	
            	ARSD
              =	
              The
                monthly weighted average "As-Received
                Sulfur
                Dioxide"
                expressed in pounds per million BTU of the respective coal delivered
                to
                Buyer; and,

            

    

    

    
      	
            	BSD
              =	
              The
                Base
                Sulfur Dioxide per pound of the respective coal expressed in pounds
                per
                million BTU during the month. BSD
                = .55

            

    

    

    
      	 	
              7)

            	
              SECTION
                11. COAL QUALITY
                shall be deleted in its entirety and replaced with the
                following:

            

    

    

    
      	 	 	
              Exhibit
                A, which is incorporated herein by this reference, is attached hereto
                and
                identifies the Coal quality specifications for the Coal from the
                Source.

            

    

    

    WBT
      and
      LWE agree that, except as specifically amended by this Amendment Number One,
      all
      of the other terms and provisions of the Agreement shall
      remain unchanged and in full force and effect. 

    

    IN
      WITNESS THEREOF, the parties intending to be legally bound have caused this
      Amendment Number One to be executed by an authorized
      representative.

    

    
      	
              WILLIAMS
                BULK TRANSFER INC.

            	 	
              LINCOLNWAY
                ENERGY, LLC

            
	 	 	 	 	 
	
              By:

            	
              /s/
                Kevin P. Burke

            	 	
              By:

            	
              /s/
                Richard J. Brehm

            
	 	 	 	 	 
	
              Title:

            	
              Vice
                President

            	 	
              Title:

            	
              President

            

    

    
       

      
        
          

        

        *Portion
          omitted pursuant to request for confidential treatment filed separately
          with the
          Securities and Exchange Commission.

      

       

      
        
           

        

        
          E-36

          
            

          

        

        
           

        

      

    

    EXHIBIT
      A

    October
      1, 2007

    

    TYPICAL
      COAL QUALITY SPECIFICATIONS

    North
      Antelope Rochelle Mine ("NARM")

    

    
      	 	 	
              Typical Monthly Weighted Average, 

              As-Received
                Basis, from NARM

            
	 	 	 
	
              Gross
                Calorific Value, Btu/lb

            	 	
              8,740

            
	
              Moisture,
                %

            	 	
              27.60

            
	
              Ash,
                %

            	 	
              4.5

            
	
              Sulfur
                Dioxide, lb/MMBtu

            	 	
              0.52

            
	
              Fines
                (< 1⁄4 inch)

            	 	
              27%

            
	
               

            	 	 
	
               

            	 	
              Reject
                Quality on
                a Trainload,

              as-received
                basis from NARM

            
	 	 	 
	
              Btu/lb

            	 	
              Less
                than 8,500 Btu/lb

            
	
              Moisture,
                %

            	 	
              Greater
                than 32%

            
	
              Ash,
                %

            	 	
              Greater
                than 6.5%

            
	
              Sulfur
                Dioxide, lb/MMBtu

            	 	
              Greater
                than 1.2 lb/MMBtu

            
	
              Fines
                (< 1⁄4 inch)

            	 	
              35%
                

            

    

    
       

      
        
          

        

        *Portion
          omitted pursuant to request for confidential treatment filed separately
          with the
          Securities and Exchange Commission.

      

       

      
        
           

        

        
          E-37EXECUTION
                COPY

            

    

     

     

    SECOND
      AMENDED AND RESTATED EMPLOYMENT AGREEMENT 

    

    This
      Employment Agreement (the "Agreement"), is entered into as of December 20,
      2007
      (the "Effective Date"), between LEV PHARMACEUTICALS, INC., a Delaware
      corporation (with its successors and assigns, referred to as the "Company"),
      and
      Judson Cooper (referred to as "Cooper"). 

    

    WHEREAS,
      the Company and Cooper are party to an Employment Agreement dated as of November
      1, 2004, as amended and restated on January 17, 2007 (the "Original Employment
      Agreement");

    

    WHEREAS,
      the Company and Cooper mutually desire to further amend and restate the terms
      of
      such Original Employment Agreement upon the terms and conditions set forth
      herein. 

    

    NOW,
      THEREFORE, in consideration of the foregoing premises and of the mutual
      agreements and covenants hereinafter set forth, the parties hereto agree to
      the
      terms and conditions of this Agreement as follows: 

    

    1.
      Employment
      for Term.
      The
      Company hereby continues to employ Cooper and Cooper hereby accepts such
      continued employment with the Company for the period beginning on the Effective
      Date and ending December 31, 2012, or upon the earlier termination of the Term
      pursuant to Section 6 (the "Initial Term"). This Agreement shall be
      automatically renewed for additional one-year periods (the "Renewal Terms;"
      together with the Initial Term, the "Term") unless either party notifies the
      other in writing of its intention not to so renew this Agreement no less than
      90
      days prior to the expiration of the Initial Term or a Renewal Term. The
      termination of Cooper's employment under this Agreement shall end the Term
      but
      shall not terminate Cooper's or the Company's other obligations that are
      intended to survive the termination of this Agreement (including without
      limitation, the payments under Section 7 and 8 and Cooper’s obligations under
      Section 9). 

    

    2.
      Position
      and Duties.
      During
      the Term, Cooper shall serve as Chairman of the Board and Executive Vice
      President of the Company, perform such duties as are consistent with his
      position and report to the Board of Directors of the Company. During the Term,
      Cooper shall also hold such additional positions and titles as the Board of
      Directors of the Company (the "Board") may determine from time to time. During
      the Term, Cooper shall devote as much time as is necessary to satisfactorily
      perform his duties as an employee and officer of the Company. The Company shall
      nominate Cooper, and use its best efforts to have Cooper elected, to the Board
      of Directors of the Company (the "Board") throughout the Term of this Agreement
      and shall include him in the management slate for election as a director at
      every stockholders meeting during the Term at which his term as a director
      would
      otherwise expire. Cooper agrees to accept election, and to serve during the
      Term, as director of the Company.

    

    3.
      Compensation.
      

    

    (a)
       Base
      Salary.
      The
      Company shall continue to pay Cooper a base salary of $425,000 per annum (as
      it
      may be increased (but not decreased) from time to time including, without
      limitation, by virtue of this Section 3(a), the "Base Salary"), provided
      that
      such
      Base Salary shall increase to $500,000 effective upon the date on which FDA
      approval of the drug Cinryze
      is
      obtained (the "FDA Approval Date"). The Base Salary shall be payable at least
      monthly on the Company's regular pay cycle for professional employees.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) Annual
      Increases.
      The
      Base Salary shall be increased at the end of each year of service (commencing
      at
      the end of 2007) by the greater of (i) 4% or (ii) a percentage equal to the
      increase, if any, in the United States Department of Labor Consumer Price Index
      (or comparable index, if available) for the New York metropolitan area over
      the
      previous 12 months. 

    

    (c) Equity.
      

    

    
      	 	
              (i)

            	
              On
                the Effective Date, the Company shall grant to Cooper 2,000,000 shares
                of
                restricted common stock of the Company (the "New Restricted Stock").
                The
                vesting schedule applicable to the New Restricted Stock is as follows:
                50%
                of the New Restricted Stock shall vest and the restrictions thereon
                shall
                lapse on the FDA Approval Date and thereafter 25% of the New Restricted
                Stock shall vest and the restrictions thereon shall lapse on each
                of the
                first and second anniversaries of the FDA Approval Date subject to
                Cooper’s continued employment on the applicable vesting dates, except as
                provided below in Section 7. The New Restricted Stock shall be evidenced
                by a restricted stock award agreement that incorporates the terms
                herein,
                including, but not limited to, granting Cooper the election to have
                the
                Company withhold that number of shares sufficient to satisfy the
                minimum
                tax withholding obligations from the shares at the time of vesting
                to
                satisfy such tax withholding obligation. In the event of a Change
                in
                Control (as defined below), the unvested shares of New Restricted
                Stock
                shall be assumed by the acquiring company and converted into restricted
                stock of the acquiring company (or parent company) in a manner designed
                to
                preserve the economic value of the New Restricted Stock immediately
                prior
                to the Change in Control and in a manner consistent with the treatment
                of
                other stockholders; provided that if the consideration received in
                the
                Change in Control is in the form of cash, the acquiring company (or
                the
                acquirer’s parent company) may either assume such unvested shares of New
                Restricted Stock as provided above or may pay Cooper an amount in
                cash on
                each applicable vesting date for such shares as if the New Restricted
                Stock was assumed as provided above based upon the fair market value
                of
                the acquiring company’s (or its parent’s) capital stock on each of the
                applicable vesting dates. For the purposes hereof, “fair market value”
                shall be either (A) the average of the high and low or closing bid
                and
                asked prices of the acquiring company’s (or its parent’s) capital stock on
                each vesting date if such stock is listed for trading on a national
                securities exchange, the NASDAQ Stock Market or is traded on the
                over-the-counter bulletin board or (B) if the acquiring company’s (or its
                parent’s) capital stock is not publicly traded, then as determined by an
                independent valuation company mutually acceptable to Cooper and the
                acquirer. The award agreement shall contain such other customary
                terms
                that are consistent with the terms of the Company's 2004 Omnibus
                Incentive
                Compensation Plan (the “Plan”). 

            

    

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	 	(ii)	Cooper has previously been granted a fully vested
              option
              to purchase 1,427,450 shares at a per share exercise price of $.30
              under
              the Plan and such option will remain outstanding through November 1,
              2014
              in accordance with the applicable option agreement (the “2004 Options”).
              

      	 	 	 

      	 	
              (iii)

            	
              Pursuant
                to the Plan, Cooper was granted a nonqualified stock option to purchase
                1,600,000 shares of the Company's Common Stock at a per share exercise
                price of $1.60 on January 17, 2007 (the "Jan 2007 Options"). The
                Jan 2007
                Options will remain outstanding in accordance with the applicable
                option
                agreement and the applicable provisions of the Amended and Restated
                Employment Agreement with Cooper dated January 17, 2007 which are
                incorporated herein. 

            

    

    

    
      	 	
              (iv)

            	
              The
                Company covenants to maintain a Form S-8 Registration Statement on
                file
                with the SEC with respect to the equity awards made to
                Cooper.

            

    

    

    (d) Bonus.
      Cooper
      shall be eligible to receive an annual cash bonus, the amount of which to be
      determined in the discretion of the Compensation Committee based upon its
      assessment of Cooper’s and the Company’s performance. Commencing in the fiscal
      year in which the FDA Approval Date occurs, Cooper’s bonus opportunity shall be
      in a target range between 75% and 200% of Base Salary, 75% being the bonus
      amount if the performance objectives are met by Cooper as determined by the
      Compensation Committee in its reasonable discretion and the bonus amount shall
      increase to the extent that the Compensation Committee may determine in its
      discretion that Cooper exceeded such objectives and engaged in outstanding
      performance. Cooper is entitled to such bonus so long as he remains in the
      employ of the Company through the end
      of
      the applicable fiscal year, except as provided below. Any such bonus for a
      particular fiscal year will be paid no later than the following March
      15.
      

    

    (e) Other
      and Additional Compensation.
      The
      preceding sections establish the minimum compensation during the Term and shall
      not preclude the Compensation Committee from awarding Cooper a higher salary
      or
      any bonuses or stock options, restricted stock or other forms of equity awards
      in the discretion of the Committee during the Term at any time. The Company
      shall pay Cooper a monthly car allowance of $1,000. 

    

    4.
      Employee
      Benefits.
      During
      the Term, Cooper shall be entitled to participate at the same level as other
      senior executive officers of the Company in any group insurance,
      hospitalization, medical, health and accident, disability, fringe benefit and
      tax-qualified retirement plans or programs of the Company now existing or
      hereafter established to the extent that he is eligible under the general
      provisions thereof. For the term of this Agreement, Cooper shall be entitled
      to
      paid vacation at the rate of (4) weeks per annum.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    5.
      Expenses.
      The
      Company shall reimburse Cooper for actual out-of-pocket expenses incurred by
      him
      in the performance of his services for the Company upon the receipt of
      appropriate documentation of such expenses. 

    

    6.
      Termination.
      

    

    (a)
      General.
      The
      Term shall end immediately upon Cooper's death. Cooper’s employment may also be
      terminated by the Company with or without Cause or as a result of Cooper’s
      Disability, as defined in Section 7 or by Cooper with or without Good Reason
      (as
      such terms are defined below). 

    

    (b)
      Notice
      of Termination.
      Either
      party shall give written notice of termination to the other party, which shall
      include a statement as to the reason for the termination. 

    

    7.
      Severance
      Benefits. 

    

    (a)
      Cause
      Defined.
      "Cause"
      means (i) willful malfeasance or willful misconduct by Cooper in connection
      with
      his employment; (ii) Cooper's gross negligence in performing any of his duties
      under this Agreement; (iii) Cooper's conviction of, or entry of a plea of guilty
      to, or entry of a plea of nolo contendre with respect to, any crime other than
      a
      traffic violation or infraction which is a misdemeanor; (iv) Cooper's material
      breach of any written policy applicable to all employees adopted by the Company
      which is not cured to the reasonable satisfaction of the Company within thirty
      (30) business days after notice thereof; or (v) material breach by Cooper of
      any
      of his obligations in this Agreement which is not cured to the reasonable
      satisfaction of the Company within thirty (30) business days after notice
      thereof. 

    

      (b)
      Disability
      Defined.
      "Disability" shall mean (i) Cooper's incapacity due to physical or mental
      illness that results in his being substantially unable to perform his duties
      hereunder for six consecutive months (or for six months out of any nine month
      period) or (ii) a qualified independent physician mutually acceptable to the
      Company and Cooper determines that Cooper is mentally or physically disabled
      so
      as to be unable to regularly perform the duties of his position and such
      condition is expected to be of a permanent duration. During a period of
      Disability while he remains an employee of the Company, Cooper shall continue
      to
      receive his Base Salary hereunder, provided that if the Company provides Cooper
      with disability insurance coverage, payments of Cooper's Base Salary shall
      be
      reduced by the amount of any disability insurance payments received by Cooper
      due to such coverage. The Company shall give Cooper written notice of
      termination which shall take effect sixty (60) days after the date it is sent
      to
      Cooper unless Cooper shall have returned to the performance of his duties
      hereunder during such sixty (60) day period (whereupon such notice shall become
      void). In the event that the Company terminates Cooper’s employment as a result
      of his Disability, Cooper shall be entitled to the same benefits as if his
      employment had been terminated by the Company without Cause.

    

    (c)
      Good
      Reason Defined.
      If the
      Company (i) reassigns Cooper's base of operations outside of New York City,
      (ii)
      materially reduces Cooper's duties, responsibilities, positions or titles,
      authority, powers, functions or reporting relationship during the Term,
      including, without limitation, replacing Cooper as Chairman, (iii) materially
      breaches this Agreement or (iv) provides notice of nonrenewal of the Agreement
      pursuant to Section 1 of this Agreement (each such event being "Good Reason")
      then, at his option, Cooper may treat such event as a termination of the Term
      without Cause by the Company unless the Company has cured the event (if
      susceptible to cure) within 30 business days of receipt of written notice from
      Cooper. For the sake of clarity, in the event of a Change in Control and the
      Company becomes a subsidiary of another entity, whether publicly or privately
      held, Cooper’s duties, responsibilities, power and authority will be deemed to
      have been materially reduced even if he remains Chairman of the Company
      following the Change in Control unless Cooper holds a position with the parent
      company of authority equivalent to that held pursuant to this
      Agreement.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (d)
      Accrued
      Compensation Defined.
      Accrued
      Compensation shall mean an amount which shall include all amounts earned or
      accrued by Cooper through the date of termination of this Agreement but not
      paid
      as of such date, including (i) Base Salary, (ii) reimbursement for business
      expenses incurred by the Cooper on behalf of the Company, pursuant to the
      Company’s expense reimbursement policy in effect at such time, (iii) expense
      allowance, (iv) vacation pay per Company policy, and (v) bonuses and incentive
      compensation earned and awarded prior to the date of termination. Accrued
      Compensation shall be paid on the first regular pay date after the date of
      termination (or earlier, if required by applicable law).

    

    (e)
      Termination.
      (i)
      Cause; Without Good Reason. If the Company ends the Term for Cause, or if Cooper
      resigns as an employee of the Company for reasons other than an event of Good
      Reason, then the Company shall pay to Cooper the Accrued Compensation but shall
      have no obligation to pay Cooper any amount, whether for salary, benefits,
      bonuses, the New Restricted Stock, or other compensation or expense
      reimbursements of any kind, accruing or vesting after the end of the Term,
      and
      such rights shall, except as otherwise required by law or pursuant to the
      applicable award agreement or plan (including, without limitation, the document
      evidencing the 2004 Options), be forfeited immediately upon the end of the
      Term.
      For the sake of clarity, the Jan 2007 Options, and the 2004 Options, to the
      extent vested on the date of resignation without Good Reason will remain
      outstanding through the expiration of the original ten year term.

    

    (ii)
      Without Cause; Good Reason; Death. In the event that the Company terminates
      Cooper’s employment hereunder without Cause, Cooper terminates his employment
      with Good Reason or his employment terminates as a result of his death, he
      shall
      be entitled to the Accrued Compensation and, subject to Section 21 below, the
      following payments and benefits:

     

    (A)
      a
      lump sum payment equal to the greater of (x) or (y): 

    

    (x)
      (1)
      two times his Base Salary in effect at the date of termination plus (2) two
      times the greater of (the "Applicable Bonus") the bonus paid for the fiscal
      year
      prior to the date of termination or 100% of his Base Salary in effect at the
      date of termination plus (3) a pro rated bonus for the year of termination
      based
      upon the Applicable Bonus; or

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (y)
      (1)
      Base Salary as if Cooper remained in the employ of the Company through December
      31, 2012 plus (2) bonus payments as if he remained in the employ of the Company
      through December 31, 2012 based upon the Applicable Bonus. 

    

    Notwithstanding
      the foregoing, in the event of the termination of Cooper’s employment as a
      result of his death, the lump sum payment pursuant to this Section 7(e)(ii)(A)
      shall be the amount provided in (x) above.

    

    The
      lump
      sum payment contemplated by this Section 7(e)(ii)(A) shall be made to the
      Executive six months after the date of termination in accordance with the
      requirements of Section 409A of the Internal Revenue Code of 1986, as
      amended (“Section 409A”)
      (except to the extent any future guidance issued by the Internal Revenue Service
      under Section 409A does not subject such payment to Section 409A or
      permits such earlier payment without additional tax or penalty).

    

    (B)
      continued participation in the health and welfare plans (or comparable plans)
      provided by the Company to Cooper at the time of termination for a period equal
      to the greater of two years from the date of termination and December 31, 2012
      or, if earlier until he is eligible for comparable coverage with a subsequent
      employer the “Extended Benefit Period”); provided
      that Cooper shall (except to the extent any future guidance issued by the
      Internal Revenue Service under Section 409A does not subject the payment of
      such premiums by the Company to Section 409A) pay the amount of the
      applicable premiums for the first six months of the Extended Benefit Period
      in
      accordance with the requirements of Section 409A, which amount will be
      reimbursed to him in a lump sum at the end of such six-month period.
      Cooper
      shall give the Company prompt notice of his eligibility of comparable
      coverage.

    

    (C)
      the
      Jan 2007 Options shall be deemed fully vested on the date of termination and
      any
      restrictions thereon shall lapse and the Jan 2007 Options shall remain
      outstanding through the expiration of the original ten year term. 

    

    (D)
      subject to the provisions of Section 3(c)(i), the New Restricted Stock shall
      remain outstanding and continue to vest through the applicable vesting
      dates.

    

    (E)
      Release.
      In the
      event that Cooper’s employment is terminated by the Company without Cause or by
      Cooper for Good Reason and in consideration of the payments described above
      and
      the Restrictive Covenants (as defined below) and the mutual releases, the
      Company and Cooper will enter into an agreement that contains a mutual release
      of claims in a form reasonably satisfactory to the parties.

    

    8.
      Change
      in Control Payment.
      The
      provisions of this paragraph 8 set forth the terms of an agreement reached
      between Cooper and the Company regarding Cooper's rights and obligations upon
      the occurrence of a "Change in Control" (as hereinafter defined) of the Company
      during the Term. These provisions are intended to assure and encourage in
      advance Cooper's continued attention and dedication to his assigned duties
      and
      his objectivity during the pendency and after the occurrence of any such Change
      in Control. The following provisions shall apply in the event of a Change in
      Control, in addition to any payment or benefit that may be required pursuant
      to
      Section 7.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (a) Equity.
      Upon
      the
      occurrence of a Change in Control, all stock options (including, without
      limitation, the Jan 2007 Options) and other stock-based grants (other than
      the
      New Restricted Stock) to Cooper by the Company or that may be granted in the
      future shall, irrespective of any provisions of his award agreements,
      immediately and irrevocably vest and become exercisable. 

    

    (b)
      Termination
      Payments.
      If
      Cooper’s employment terminates for any reason following a Change in Control
      (other than by the Company for Cause or by Cooper without Good Reason), he
      shall
      be entitled to the payments described in Section 7(e)(ii) except that (i) the
      Base Salary component of the payment shall be the greater of the Base Salary
      in
      effect at the time of termination or $500,000 and (ii) the reference to 100%
      of
      Cooper's Base Salary in the definition of the Applicable Bonus contained in
      Section 7(e)(ii)(A)(x)(1) shall be deemed 200%. In the event that a Change
      in
      Control occurs within eighteen months following Cooper’s termination of
      employment by the Company without Cause or by him for Good Reason and the
      transaction that constituted such Change in Control was the subject of
      substantive discussions at the time of such termination of employment as
      evidenced by the Company and such potential acquirer having engaged in
      communications (whether in person, via telephone or e-mail) or the execution
      of
      a non-disclosure agreement with the intent to commence discussions for a
      potential acquisition of the Company, then Cooper shall be entitled to receive
      such additional payments described in this Section 8 (including the Transaction
      Fee described below in Section 8(d)) as if his termination occurred on or
      following a Change in Control. 

    

    (c) Rabbi
      Trust.
      Within
      ten (10) days after the occurrence of the Change in Control, the Company shall
      place immediately negotiable funds into a “rabbi” trust in an amount equal to
      the payments that may be due (or will be due) to Cooper as a result of the
      Change in Control, including such additional amount as equals the "Gross Up
      Payment" (as hereinafter defined) thereon but excluding the Transaction Fee
      described below (which shall be paid to Cooper on the date of the Change in
      Control). Such trust shall be maintained pursuant to a standard rabbi trust
      arrangement among the Company, Cooper and an independent trustee providing
      for
      the timely payment to Cooper of the amounts held in such trust in the event
      Cooper becomes entitled thereto under the applicable provisions of this
      Agreement (the "Trust Arrangement"). The Trust Arrangement shall be maintained
      until the earlier of (A) the payment to Cooper of all sums held in the trust
      or
      (B) six years after the end of the fiscal year in which the Change in Control
      occurred. This provision will be null and void if the establishment or
      maintenance of such a trust would result in the imposition of a tax or penalty
      under Section 409A.

    

    (d) Transaction
      Fee.
      Cooper
      shall be entitled to a cash payment equal to 1.5% of the Enterprise Value (as
      defined below) of the Company in a Change in Control so long as the Enterprise
      Value exceeds $400 million. The “Enterprise Value” in
      the case of a Change in Control in which consideration is payable to the Company
      in respect of its assets or business, shall mean the total cash and non-cash
      (including, without limitation, the assumption of debt) consideration received
      by the Company or in the case of a Change in Control in which consideration
      is
      payable to the Company’s stockholders, the total cash and non-cash (including,
      without limitation, the assumption of debt) consideration payable to the
      Company’s stockholders. “Enterprise Value” shall also include, if applicable,
      any cash or non-cash consideration payable to the Company or to the Company’s
      stockholders on a contingent, earnout or deferred basis. To the extent that
      any
      consideration in a transaction is not received in cash upon the consummation
      of
      the Change in Control, the value of such non-cash consideration for purposes
      of
      calculating the Enterprise Value will be determined by the Board of Directors
      of
      the Company prior to the Change in Control in good faith. In the event that
      less
      than 100% of the stock or assets of the Company is purchased in the Change
      in
      Control transaction, the Enterprise Value shall be extrapolated from the
      percentage of the Company’s capital stock or assets impacted in such Change in
      Control transaction to determine if the $400 million threshold was exceeded,
      but
      the Transaction Fee shall be calculated based on the actual consideration
      received by the Company or shareholders, as the case may be. This Section 8(d),
      however, shall not apply to any event resulting in a Change in Control in which
      neither the Company nor its stockholders receives consideration either upon,
      or
      in connection with, the occurrence or consummation of the event resulting in
      a
      Change in Control.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (e)
      Gross
      Up Payment.
      

    

    (1)
      Excess
      Parachute Payment.
      In the
      event it shall be determined that any payment or distribution or benefit
      received or to be received by Cooper pursuant to the terms of this Agreement
      or
      any other payment or distribution or benefit made or provided by the Company
      or
      any of its affiliates, to or for the benefit of Cooper (a "Payment") would
      be
      subject to the excise tax imposed by Section 4999 of the United States Internal
      Revenue Code (the "Code"), or any interest or penalties are incurred by Cooper
      with respect to such excise tax (such excise tax, together with any such
      interest and penalties, is hereinafter collectively referred to as the "Excise
      Tax"), then Cooper shall be entitled to receive an additional payment (a
      "Gross-Up Payment") in an amount such that after payment by Cooper of all taxes
      (including any interest or penalties imposed with respect to such taxes),
      including, without limitation, any income and employment taxes (and any interest
      and penalties imposed with respect thereto) and Excise Tax imposed upon the
      Gross-Up Payment, Cooper retains an amount of the Gross-Up Payment equal to
      the
      sum of (x) the Excise Tax imposed upon the Payments and (y) the product of
      any
      deductions actually disallowed under Section 68 of the Code solely as a direct
      result of the inclusion of the Gross-Up Payment in the Executive's adjusted
      gross income and the highest applicable marginal rate of federal income taxation
      for the calendar year in which the Gross-Up Payment is to be made. 

    

    In
      the
      event the Company’s payment of the Gross-Up Payment would cause the payment cap
      described in Section 8(g) below (the “Cap”) to be exceeded, then Cooper shall be
      deemed to have automatically waived his right to receive the Gross-Up Payment
      to
      the extent by which the Gross-Up Payment exceeds the Cap. In such an event,
      Cooper shall remain directly liable for payment of the amount by which the
      Excise Tax exceeds the Cap and the Company shall have no liability for such
      payment. In the event that the aggregate amount of the Company’s payments (or
      payment obligations) pursuant to Sections 8(b) through 8(d) would be in excess
      of the Cap, then this Section 8(e) shall automatically be deemed cancelled
      and
      the Company shall have no liability for the Gross-Up Payment. In the event
      that
      the Company’s obligation to pay the Gross-Up Payment is limited or cancelled in
      its entirety, the Company and Cooper shall cooperate with each other in good
      faith in connection with the determination as to whether an Excise Tax is due
      and the amount of such Excise Tax.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (2)
      Applicable
      Rates.
      For
      purposes of determining the amount of the Gross Up Payment, Cooper will be
      deemed to pay federal income taxes at the highest marginal rate of federal
      income taxation in the calendar year in which the Gross Up Payment is to be
      made
      and state and local income taxes at the highest marginal rates of taxation
      in
      the state and locality where taxes thereon are lawfully due, net of the maximum
      reduction (if any) in federal income taxes that could be obtained from deduction
      of deductible state and local taxes. 

    

    (3)
      Determination
      of Gross Up Payment Amount.
      The
      determination of whether the Excise Tax is payable and the amount thereof will
      be based upon the opinion of tax counsel selected by Cooper and reasonably
      approved by the Company, which approval will not be unreasonably withheld or
      delayed whether or not the Company is required to make the Gross-Up Payment.
      If
      such opinion is not finally accepted by the Internal Revenue Service (or state
      and local taxing authorities), then appropriate adjustments to the Excise Tax
      will be computed and additional Gross Up Payments will be made in the manner
      provided by this subparagraph (e). 

    

    (4)
      Payment.
      Subject
      to the applicability of the Cap, the Company will pay the estimated amount
      of
      the Gross-Up Payment in cash to Cooper at the time specified in this Agreement.
      Cooper and the Company agree to reasonably cooperate in good faith in the
      determination of the actual amount of the Gross Up Payment. Further, Cooper
      and
      the Company agree to make such adjustments to the estimated amount of the Gross
      Up Payment as may be necessary to equal the actual amount of the Gross Up
      Payment, which in the case of the Company will refer to refunds of prior
      overpayments by the Company and in the case of Cooper will refer to additional
      payments to Cooper to make up for prior underpayments. 

     

    (f)
       Definitions.
      For
      purposes of this paragraph 8, the following terms shall have the following
      meanings: 

    

    "Change
      in Control" shall mean any of the following: 

    

    (1)
      the
      acquisition by any individual, entity, or group (within the meaning of Section
      13(d)(3) or 14(d)(2) of the Exchange Act) (the "Acquiring Person"), other than
      the Company, or any of its Subsidiaries or any Excluded Group (as defined
      herein), of beneficial ownership (within the meaning of Rule 13d-3- promulgated
      under the Exchange Act) of 35% or more of the combined voting power or economic
      interests of the then outstanding voting securities of the Company entitled
      to
      vote generally in the election of directors; provided however, that any transfer
      from Cooper or Joshua Schein (the "Excluded Group") will not result in a Change
      in Control if such transfer was part of a series of related transactions the
      effect of which, absent the transfer to such Acquiring Person by the Excluded
      Group, would not have resulted in the acquisition by such Acquiring Person
      of
      35% or more of the combined voting power or economic interests of the then
      outstanding voting securities; or 

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (2)
      during any period of 12 consecutive months after the date of this Agreement,
      the
      individuals who at the beginning of any such 12-month period constituted a
      majority of the Directors (the "Incumbent Non-Investor Majority") cease for
      any
      reason to constitute at least a majority of such Directors; provided that (i)
      any individual becoming a director whose election, or nomination for election
      by
      the Company's stockholders, was approved by a vote of the stockholders having
      the right to designate such director and (ii) any director whose election to
      the
      Board or whose nomination for election by the stockholders of the Company was
      approved by the requisite vote of directors entitled to vote on such election
      or
      nomination in accordance with the Certificate of Incorporation of the Company,
      shall, in each such case, be considered as though such individual were a member
      of the Incumbent Non-Investor Majority, but excluding, as a member of the
      Incumbent Non-Investor Majority, any such individual whose initial assumption
      of
      office is in connection with an actual or threatened election contest relating
      to the election of the directors of the Company (as such terms are used in
      Rule
      14a-2 of Regulation 14A promulgated under the Exchange Act) and further
      excluding any person who is an affiliate or associate of an Acquiring Person
      having or proposing to acquire beneficial ownership of 25% or more of the
      combined voting power of the then outstanding voting securities of the Company
      entitled to vote generally in the election of directors; or 

    

    (3)
      the
      consummation by the Company of a reorganization, merger or consolidation, in
      each case, with respect to which all or substantially all of the individuals
      and
      entities who were the respective beneficial owners of the voting securities
      of
      the Company immediately prior to such reorganization, merger, or consolidation
      do not, following such reorganization, merger, or consolidation, beneficially
      own, directly or indirectly, more than 50% of the combined voting power of
      the
      then outstanding voting securities entitled to vote generally in the election
      of
      directors of the Company resulting from such reorganization, merger, or
      consolidation; or 

    

    (4)
      the
      sale or other disposition of assets representing 50% or more of the assets
      of
      the Company in one transaction or series of related transactions not initiated
      or commenced by any person within the Excluded Group; or 

    

    (5)
      a
      "Fundamental Change in Business" as hereinafter defined; or 

    

    (6)
      a
      "Hostile Takeover" as hereinafter defined is declared. 

    

    "Fundamental
      Change in Business" shall mean that the Company, at any time, no longer spends
      at least fifty percent (50%) of its annual budget on activities related to
      biotechnology or pharmaceuticals. 

    

    "Hostile
      Takeover" shall mean any Change in Control which at any time is declared by
      at
      least a majority of the Board, directly or indirectly, to be hostile or not
      in
      the best interests of the Company, or in which an attempt is made (irrespective
      of whether successful) to wrest control away from the incumbent management
      of
      the Company, or with respect to which the Board makes any effort to resist.
      

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (g) Payment
      Cap.
      Notwithstanding anything to the contrary contained in this Agreement, in the
      event of a Change in Control, the Company’s maximum obligation (the “Cap”) under
      this Section 8 shall be as follows:

    

    
      	 	
              (i)
                

            	
              3.25%
                of the Enterprise Value if the Enterprise Value is less than $750
                million;

            

    

    
      	 	
              (ii)
                

            	
              3.0%
                of the Enterprise Value if the Enterprise Value is $750 million or
                more
                but less than $1.2 billion; 

            

    

    
      	 	
              (iii)

            	
              2.5
                % of the Enterprise Value if the Enterprise Value is $1.2 billion
                or more
                but less than $1.75 billion;

            

    

    
      	 	
              (iv)

            	
              2.0%
                of the Enterprise Value if the Enterprise Value is $1.75 billion
                or
                more;

            

    

    

    provided
      that such Cap shall not apply to, or include any value attributable to, the
      stock options (including the acceleration provided for under Section 8(a))
      or
      the New Restricted Stock. In the event that the aggregate amount of the
      Company’s payments (or payment obligations) pursuant to this Section 8 would be
      in excess of the Cap (which shall not apply to the equity as described above),
      then the Company shall pay to Cooper, in accordance with the relevant provisions
      of Section 8, the amounts to which he is entitled under Section 8 up to the
      Cap
      and shall have no further liability or obligation for any other payments
      hereunder (other than the equity described above). In such an event, Cooper
      shall be deemed to have automatically waived his right to receive any payments
      in excess of the Cap (other than the equity described above). For the sake
      of
      clarity, however, any Gross-Up Payment attributable to any equity awards will
      be
      subject to the Cap.

    

    9.
      Confidentiality,
      Ownership, and Covenants.
      

    

    (a)
      "Company
      Information" and "Inventions" Defined.
      "Company Information" means all information, knowledge or data of or pertaining
      to (i) the Company, its employees and all work undertaken on behalf of the
      Company, and (ii) any other person, firm, Company or business organization
      with
      which the Company may do business during the Term, that is not in the public
      domain (and whether relating to methods, processes, techniques, discoveries,
      pricing, marketing or any other matters). "Inventions" collectively refers
      to
      any and all inventions, trade secrets, ideas, processes, formulas, source and
      object codes, data, programs, other works of authorship, know-how, improvements,
      research, discoveries, developments, designs, and techniques regarding any
      of
      the foregoing. 

    

    (b)
      Confidentiality.
      Cooper
      hereby recognizes that the value of all trade secrets and other proprietary
      data
      and all other information of the Company not in the public domain disclosed
      by
      the Company in the course of his employment with the Company may be attributable
      substantially to the fact that such confidential information is maintained
      by
      the Company in strict confidentiality and secrecy and would be unavailable
      to
      others without the expenditure of substantial time, effort or money. Cooper,
      therefore, except as provided in the next two sentences, covenants and agrees
      that all Company Information shall be kept secret and confidential at all times
      during or after the Term and shall not be used or divulged by him outside the
      scope of his employment as contemplated by his Agreement, except as the Company
      may otherwise expressly authorize by action of the Board. In
      the
      event that Cooper is requested in a judicial, administrative or governmental
      proceeding to disclose any of the Company Information, Cooper will promptly
      so
      notify the Company so that the Company may seek a protective order of other
      appropriate remedy and/or waive compliance with this Agreement. If disclosure
      of
      any of the Company Information is required, Cooper may furnish the material
      so
      required to be furnished, but Cooper will furnish only that portion of the
      Company Information that legally is required. 

    

    (c)
      Ownership
      of Inventions, Patents and Technology.
      Cooper
      hereby assigns to the Company all of Cooper's rights (including patent rights,
      copyrights, trade secret rights, and all other rights throughout the world),
      title and interest in and to Inventions, whether or notpatentable or registrable
      under copyright or similar statutes, made or conceived or reduced to practice
      or
      learned by Cooper, either alone or jointly with others, during the course of
      the
      performance of services for the Company. Cooper shall also assign to, or as
      directed by, the Company, all of Cooper's right, title and interest in and
      to
      any and all Inventions, the full title to which is required to be in the United
      States government of any of its agencies. The Company shall have all right,
      title and interest in all research and work product produced by Cooper as an
      employee of the Company, including, but not limited to, all research materials
      and lab books. 

    

    (d)
      Non-Competition.
      During
      his employment with the Company and for a period of one year after the
      termination of such employment for any reason (the “Restricted Period”), Cooper
      agrees that he will not enter into or become associated with or engage in any
      other business (whether as a partner, officer, director, shareholder, employee,
      consultant, or otherwise), which
      business is in direct competition with the Company (a "Competitive Business").
      For purposes of this Agreement, the Company shall be deemed to be actively
      engaged (a) on the date hereof in the development and commercialization of
      therapeutic products for the treatment of hereditary angioedema and (b) in
      the
      future during the Term of this Agreement in any other material business in
      which
      the Company actually devotes substantive resources to study, develop or pursue
      and in which Executive is directly and actively involved. Notwithstanding the
      foregoing, (x) the ownership by Cooper of less than five percent of the shares
      of any publicly held corporation shall not violate the provisions of this
      Article VII, and (y) Cooper shall not be required to comply with any provision
      of this Section 9(d) following termination of this Agreement if the amounts
      required to be paid under Sections 7 or 8 of this Agreement are not timely
      paid.

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (e)
      Nonsolicitation
      of Employees. During
      the Restricted Period, Cooper will not, without the Company’s written consent,
      solicit any employee or
      independent contractor of
      the Company for the purposes of hiring such individual for Cooper or an entity
      in which Cooper has a material interest. Such provision shall not apply to
      Joshua Schein. 

    

    (f)
      Remedies.
      Cooper
      hereby acknowledges that the covenants and agreements contained in Section
      9
      (the "Restrictive Covenants") are reasonable and valid in all respects and
      that
      the Company is entering into this Agreement, inter alia, on such
      acknowledgement. If Cooper breaches, or threatens to commit a breach, of any
      of
      the Restrictive Covenants, the Company shall have the following rights and
      remedies, each of which rights and remedies shall be independent of the other
      and severally enforceable, and all of which rights and remedies shall be in
      addition to, and not in lieu of, any other rights and remedies available to
      the
      Company under law or in equity: (i) the right and remedy to have the Restrictive
      Covenants specifically enforced by any court having equity jurisdiction, it
      being acknowledged and agreed that any such breach or threatened breach will
      cause irreparable injury to the Company and that money damages will not provide
      an adequate remedy to the Company; (ii) the right and remedy to require Cooper
      to account for and pay over to the Company such damages as are recoverable
      at
      law as the result of any transactions constituting a breach of any of the
      Restrictive Covenants; (iii) if any court determines that any of the Restrictive
      Covenants, or any part thereof, is invalid or unenforceable, the remainder
      of
      the Restrictive Covenants shall not thereby be affected and shall be given
      full
      effect, without regard to the invalid portions; and (iv) if any court construes
      any of the Restrictive Covenants, or any part thereof, to be unenforceable
      because of the duration of such provision or the area covered thereby, such
      court shall have the power to reduce the duration or area of such provision
      and,
      in its reduced form, such provision shall then be enforceable and shall be
      enforced. 

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    (g)
      Jurisdiction.
      The
      parties intend to and hereby confer jurisdiction to enforce the Restrictive
      Covenants upon the courts of any jurisdiction within the geographical scope
      of
      such Covenants. If the courts of any one or more such jurisdictions hold the
      Restrictive Covenants wholly unenforceable by reason of the breadth of such
      scope or otherwise, it is the intention of the parties that such determination
      not bar or in any way affect the Company's right to the relief provided above
      in
      the courts of any other jurisdiction, within the geographical scope of such
      Covenants, as to breaches of such Covenants in such other respective
      jurisdiction such Covenants as they relate to each jurisdiction being, for
      this
      purpose, severable into diverse and independent covenants. 

    

    10.
      Successors
      and Assigns. 

    

    (a)
      Cooper.
      This
      Agreement is a personal contract, and the rights and interests that the
      Agreement accords to Cooper may not be sold, transferred, assigned, pledged,
      encumbered, or hypothecated by him. All rights and benefits of Cooper shall
      be
      for the sole personal benefit of Cooper, and no other person shall acquire
      any
      right, title or interest under this Agreement by reason of any sale, assignment,
      transfer, claim or judgment or bankruptcy proceedings against Cooper. Except
      as
      so provided, this Agreement shall inure to the benefit of and be binding upon
      Cooper and his personal representatives, distributes and legatees. 

    

    (b)
      The
      Company.
      This
      Agreement shall be binding upon the Company and inure to the benefit of the
      Company and of its successors and assigns, including (but not limited to) any
      Company that may acquire all or substantially all of the Company's assets or
      business or into or with which the Company may be consolidated or merged. In
      the
      event that the Company sells all or substantially all of its assets, merges
      or
      consolidates, otherwise combines or affiliates with another business, dissolves
      and liquidates, or otherwise sells or disposes of substantially all of its
      assets, then this Agreement shall continue in full force and effect. The
      Company's obligations under this Agreement shall cease, however, if the
      successor to, the purchaser or acquirer either of the Company or of all or
      substantially all of its assets, or the entity with which the Company has
      affiliated, shall assume in writing the Company's obligations under this
      Agreement (and deliver and executed copy of such assumption to Cooper), in
      which
      case such successor or purchaser, but not the Company, shall thereafter be
      the
      only party obligated to perform the obligations that remain to be performed
      on
      the part of the Company under this Agreement. 

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    11.
      Entire
      Agreement.
      This
      Agreement (together with the equity award agreements referred to herein)
      represents the entire agreement between the parties concerning Cooper's
      employment with the Company and supersedes all prior negotiations, discussions,
      understanding and agreements, whether written or oral, between Cooper and the
      Company relating to the subject matter of this Agreement (including, without
      limitation, the Original Employment Agreement (other than with respect to the
      option referenced therein, as amended). 

    

    12.
      Amendment
      or Modification, Waiver.
      No
      provision of this Agreement may be amended or waived unless such amendment
      or
      waiver is agreed to in writing signed by Cooper and by a duly authorized officer
      of the Company. No waiver by any party to this Agreement or any breach by
      another party of any condition or provision of this Agreement to be performed
      by
      such other party shall be deemed a waiver of a similar or dissimilar condition
      or provision at the same time, any prior time or any subsequent time.

    

    13.
      Notices.
      Any
      notice to be given under this Agreement shall be in writing and delivered
      personally or sent by overnight courier or registered or certified mail, postage
      prepaid, return receipt requested, addressed to the party concerned at the
      address indicated below, or to such other address of which such party
      subsequently may give notice in writing: 

    

    
      	 	If to Cooper:	to the address specified in the payroll
              records of the Company
	 	 	 
	 	If to the Company:	675 Third Avenue
	 	 	
              Suite
                2200

              New
                York, NY 10017

            

    

      

    Any
      notice delivered personally or by overnight courier shall be deemed given on
      the
      date delivered and any notice sent by registered or certified mail, postage
      prepaid, return receipt requested, shall be deemed given on the date mailed.
      

    

    14.
      Severability.
      If any
      provision of this Agreement or the application of any such provision to any
      party or circumstances shall be determined by any court of competent
      jurisdiction to be invalid and unenforceable to any extent, the remainder of
      this Agreement or the application of such provision to such person or
      circumstances other than those to which it is so determined to be invalid and
      unenforceable shall not be affected, and each provision of this Agreement shall
      be validated and shall be enforced to the fullest extent permitted by law.
      If
      for any reason any provision of this Agreement containing restrictions is held
      to cover an area or to be for a length of time that is unreasonable or in any
      other way is construed to be too broad or to any extent invalid, such provision
      shall not be determined to be entirely null, void and of no effect; instead,
      it
      is the intention and desire of both the Company and Cooper that, to the extent
      that the provision is or would be valid or enforceable under applicable law,
      any
      court of competent jurisdiction shall construe and interpret or reform this
      Agreement to provide for a restriction having the maximum enforceable area,
      time
      period and such other constraints or conditions (although not greater than
      those
      contained currently contained in this Agreement) as shall be valid and
      enforceable under the applicable law. 

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    15.
      Survivorship.
      The
      respective rights and obligations of the parties hereunder shall survive any
      termination of this Agreement to the extent necessary to the intended
      preservation of such rights and obligations. 

    

    16.
      Headings.
      All
      descriptive headings of sections and paragraphs in this Agreement are intended
      solely for convenience of reference, and no provision of this Agreement is
      to be
      construed by reference to the heading of any section or paragraph. 

    

    17.
      Withholding
      Taxes.
      All
      salary, benefits, reimbursements and any other payments to Cooper under this
      Agreement shall be subject to all applicable payroll and withholding taxes
      and
      deductions required by any law, rule or regulation of and federal, state or
      local authority. 

    

    18.
      Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed to be an original but all of which together constitute one and same
      instrument. 

    

    19.
      Applicable
      Law; Arbitration.
      The
      validity, interpretation and enforcement of this Agreement and any amendments
      or
      modifications hereto shall be governed by the laws of the State of New York,
      as
      applied to a contract executed within and to be performed in such State. The
      parties agree that any disputes shall be definitively resolved by binding
      arbitration before the American Arbitration Association in New York, New York
      and consent to the jurisdiction to the federal courts of the Southern District
      of New York or, if there shall be no jurisdiction, to the state courts located
      in New York County, New York, to enforce any arbitration award rendered with
      respect thereto. Each party shall choose one arbitrator and the two arbitrators
      shall choose a third arbitrator. All costs and fees related to such arbitration
      (and judicial enforcement proceedings, if any) shall be borne by the Company
      unless Cooper’s claim is deemed to be frivolous by the arbitrator(s) or judge.
      The Company shall pay the reasonable legal fees and expenses of counsel
      (collectively, the "Fees") incurred by Cooper in the event there is a dispute
      hereunder as follows: if such dispute is settled, the Company shall pay the
      Fees
      or, in the event that it is resolved by binding arbitration or a judgment,
      the
      Company shall pay the Fees unless the arbitrator or judge finds that Cooper’s
      claim was frivolous. 

    

    20. Legal
      Fees.
      The
      Company shall reimburse Cooper for the reasonable expenses of his counsel in
      drafting and negotiating this Agreement on an after tax basis.

    

    21. Section
      409A.
      The
      payments provided for herein are intended to comply with the terms of Section
      409A of the Internal Revenue Code. In the event, however, that any such payments
      are determined to be subject to 409A, then the Company will make such
      adjustments as are reasonably required to comply with such section, including
      delaying any such payments that would have been required to be paid to Cooper
      pursuant to this Agreement during the first six months following the termination
      of Cooper’s employment until the end of such six-month period in accordance with
      the requirements of Section 409A.

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    22. Indemnification.
      The
      Company shall, to the maximum extent permitted by law, indemnify and hold Cooper
      harmless against, and shall purchase director and officer indemnity insurance
      on
      behalf of Cooper for, expenses, including reasonable attorneys fees (the
      attorney to be selected by Cooper), judgments, fines, settlements and other
      amounts actually and reasonably incurred in connection with any proceeding
      or
      claim (or threatened proceeding or claim) arising by reason of Cooper’s
      employment by the Company. The Company shall advance to Cooper any expense
      incurred in defending any such proceeding or claim (or threatened proceeding
      or
      claim) to the maximum extent permitted by law. 

    

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

    
      	 	 	 
	 	Lev
              Pharmaceuticals, Inc. 
	 
 	 
 	 
 
	 	By:  	/s/ Eric
              I.
              Richman 
	 	
              
Eric
              I. Richman 
	 	Chairman
              of the Compensation Committee  
	 	 
	 	 
	 	/s/ Judson Cooper 
	 	
              

              Judson Cooper

    

     

    
      
        
        

      

      
        16

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