Exhibit 10.22


 


Loan 
No. RIB051T05


 


REVOLVING TERM LOAN
SUPPLEMENT


 


THIS SUPPLEMENT to the Master Loan Agreement dated October 6, 2005, (the
“MLA”), is entered into as of October 6, 2005, between CoBANK, ACB (“CoBank”) and SOUTH DAKOTA SOYBEAN PROCESSORS, LLC, Volga,
South Dakota (the “Company”), and amends and restates the Supplement dated
November 17, 2004, and numbered B051T05F.


 


SECTION 1. The Revolving Term Loan Commitment. On the terms and conditions set forth in the
MLA and this Supplement, CoBank agrees to make loans to the Company from the
date hereof, up to and including March 20, 2012, in an aggregate principal
amount not to exceed, at any one time outstanding, $17,100,000.00 less the
amounts scheduled to be repaid during the period set forth below in Section 5 (the “Commitment”). Within the limits of
the Commitment, the Company may borrow, repay and reborrow.


 


The
Company may, in its sole discretion, elect to permanently reduce the amount of
the Commitment by giving CoBank ten (10) days prior written notice. Said
election shall be made only if the Company is not in default at the time of the
election and will remain in compliance with all financial covenants after such
reduction. Any such reduction shall be treated as an early, voluntary reduction
of the Commitment amount and shall not delay or reduce the amount of any
scheduled Commitment reduction under Section 5
hereof (which reductions shall continue in semi-annual increments of
$1,300,000.00 on the dates determined in accordance with Section 5), but rather
shall result in an earlier expiration of the Commitment and final maturity of
the loans.


 


SECTION 2. Purpose. The purpose of the Commitment is to provide working capital to the
Company and to finance the construction of a soybean refinery.


 


SECTION 3. Term. Intentionally Omitted.


 


SECTION 4. Interest. The Company agrees to pay interest on the unpaid balance of the loans
in accordance with one or more of the following interest rate options, as
selected by the Company:


 


(A)     Weekly Quoted
Variable Rate. At a
rate per annum equal at all times to the rate of interest established by CoBank
on the first Business Day of each week. The rate established by CoBank shall be
effective until the first Business Day of the next week. Each change in the
rate shall be applicable to all balances subject to this option and information
about the then current rate shall be made available upon telephonic request.


 


(B)     Quoted Rate. At a fixed rate per annum to be quoted by
CoBank in its sole discretion in each instance. Under this option, rates may be
fixed on such balances and for such periods, as may be agreeable to CoBank in
its sole discretion in each instance, provided that: (1) the minimum fixed
period shall be 30 days; (2) amounts may be fixed in increments of $100,000.00
or multiples thereof; and (3) the maximum number of fixes in place at any one time
shall be 5.


 


The
Company shall select the applicable rate option at the time it requests a loan
hereunder and may, subject to the limitations set forth above, elect to convert
balances bearing interest at the variable rate option to one of the fixed: rate
options. Upon the expiration of any fixed rate period, interest shall


 

















 


Revolving Term Loan Supplement RIBO51TO5


South Dakota Soybean Processors, LLC


Volga, South Dakota


 


automatically
accrue at the variable rate option provided for above unless the amount fixed
is repaid or fixed for an additional period in accordance with the terms hereof.
Notwithstanding the foregoing, rates may not be fixed in such a manner as to
cause the Company to have to break any fixed rate balance in order to pay any
installment of principal. All elections provided for herein shall be made
telephonically or in writing and must be received by 12:00 Noon Company’s local
time. Interest shall be calculated on the actual number of days each loan is
outstanding on the basis of a year consisting of 360 days and shall be payable
monthly in arrears by the 20th day of the following month or on such other day
in such month as CoBank shall require in a written notice to the Company.


 


SECTION 5. Promissory Note. The Company promises to repay on the dates
set forth below, the outstanding principal, if any, that is in excess of the
listed amounts:


 


	
  Payment Date

  	
   

  	
  Reducing Commitment Amount

  	
   

  
	
  March 20,
  2006

  	
   

  	
  $

  	
  15,800,000.00

  	
   

  
	
  September
  20, 2006

  	
   

  	
  $

  	
  14,500,000.00

  	
   

  
	
  March 20,
  2007

  	
   

  	
  $

  	
  13,200,000.00

  	
   

  
	
  September
  20,2007

  	
   

  	
  $

  	
  11,900,000.00

  	
   

  
	
  March20,
  2008

  	
   

  	
  $

  	
  10,600,000.00

  	
   

  
	
  September
  20,2008

  	
   

  	
  $

  	
  9,300,000.00

  	
   

  
	
  March 20,
  2009

  	
   

  	
  $

  	
  8,000,000.00

  	
   

  
	
  September
  20, 2009

  	
   

  	
  $

  	
  6,700,000.00

  	
   

  
	
  March20,
  2010

  	
   

  	
  $

  	
  5,400,000.00

  	
   

  
	
  September
  20, 2010

  	
   

  	
  $

  	
  4,100,000.00

  	
   

  
	
  March20,
  2011

  	
   

  	
  $

  	
  2,800,000.00

  	
   

  
	
  September
  20, 2011

  	
   

  	
  $

  	
  1,500,000.00

  	
   

  



 


followed
by a final installment in an amount equal to the remaining unpaid principal
balance of the loans on March 20, 2012. If any installment due date is not a
day on which CoBank is open for business, then such payment shall be made on
the next day on which CoBank is open for business. In addition to the above,
the Company promises to pay interest on the unpaid principal balance hereof at
the times and in accordance with the provisions set forth in Section 4 hereof.
This note replaces and supersedes, but does not constitute payment of the
indebtedness evidenced by, the promissory note set forth in the Supplement
being amended and restated hereby.


 


SECTION 6. Commitment Fee. In consideration of the Commitment, the
Company agrees to pay to CoBank a commitment fee on the average daily unused
portion of the Commitment at the rate of 1/2 of 1% per annum (calculated on a
360 day basis), payable monthly in arrears by the 20th day following each month.
Such fee shall be payable for each month (or portion thereof) occurring during
the original or any extended term of the Commitment.


 


2

















 


IN WITNESS WHEREOF, the parties have caused this
Supplement to be executed by their duly authorized officers as of the date
shown above.


 


	
  CoBANK ACB

  	
  SOUTH DAKOTA

  
	
   

  	
   

  	
  SOYBEAN PROCESSORS, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   /s/
  Pat Schultz

  	
   

  	
  By:

  	
  /s/ Rodney Christianson

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title: 

  	
  Assistant Corporate Secretary

  	
   

  	
  Title:

  	
  CEO

  	
   

  



 


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