Exhibit 10.23


 


Loan No. RIB051S01


 


STATUSED REVOLVING
CREDIT 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 June 17, 2004, and numbered
B051 501G.


 


SECTION 1. The Revolving Credit Facility. On the terns
and conditions set forth in the MILA and this Supplement, CoBank agrees to make
loans to the Company during the period set forth below in an aggregate
principal amount not to exceed, at any one time outstanding, the lesser of
$16,000,000.00 (the “Commitment”), or the “Borrowing Base” (as calculated
pursuant to the Borrowing Base Report attached hereto as Exhibit A). Within the
limits of the Commitment, the Company may borrow, repay and reborrow.


 


SECTION 2. Purpose. The purpose of the Commitment is to finance the inventory and
receivables referred to in the Borrowing Base Report.


 


SECTION 3. Term. The term
of the Commitment shall be from the date hereof, up to and including September
1, 2006, or such later date as CoBank may, in its sole discretion, authorize in
writing.


 


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 maybe fixed in increments of $100,000.00 or
multiples thereof; and (3) the minimum 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
automatically accrue at the variable rate option 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 for periods expiring after the maturity date
of the loans. All elections provided for herein shall be made telephonically or
in tiling 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 each month as CoBank shall require in a written notice to
the Company.


 

















 


Statused Revolving Credit Supplement
RIB051S01


South Dakota Soybean Processors, LLC


Volga, South Dakota


 


SECTION 5. Promissory Note. The
Company promises to repay the unpaid principal balance of the loans on the day
that is six (6) months after the last day of the term of the Commitment. In
addition to the above, the Company promises to pay interest on the unpaid principal balance of the loans 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. Borrowing Base
Reports, Etc. The Company agrees
to furnish a Borrowing Base Report to CoBank at such times or intervals as
CoBank may from time to time request. Until receipt of such a request, the
Company agrees to furnish a Borrowing Base Report to CoBank within 30 days
after each month end calculating the Borrowing Base as of the last day of the
month for which the Report is being furnished. However, if no balance is
outstanding hereunder on the last day of such month, then no Report need be
furnished. Regardless of the frequency of the reporting, if at any time the
amount outstanding under the Commitment exceeds the Borrowing Base, the Company
shall immediately notify CoBank and repay so much of the loans as is necessary
to reduce the amount outstanding under the Commitment to the limits of the
Borrowing Base.


 


SECTION 7. Letters of
Credit. If agreeable to CoBank in
its sole discretion in each
instance, in addition to loans, the Company may utilize the Commitment to open
irrevocable letters of credit for its account. Each letter of credit will be
issued within a reasonable period of time after receipt of a duly completed and
executed copy of CoBank’s then current form of application or, if applicable,
in accordance with the terms of any CoTrade Agreement between the parties, and
shall reduce the amount available under the Commitment by the maximum amount
capable of being drawn thereunder. Any draw under any letter of credit issued
hereunder shall be deemed an advance under the Commitment. Each letter of credit must be in form and content
acceptable to CoBank and must expire no later than the maturity date of the
Commitment. Notwithstanding the foregoing or any other provision hereof, the
maximum amount capable of being drawn under each letter of credit must be
statused against the Borrowing Base in the same manner as if it were a loan,
and in the event that (after repaying all loans) the maximum amount capable of
being drawn under the letters of credit exceeds the Borrowing Base, then the
Company shall immediately notify CoBank and pay to CoBank (to be held as cash
collateral) an amount equal to such excess.


 


SECTION 8. 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 1/4 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


 


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Commitment. For purposes of calculating the
commitment fee only, the “Commitment” shall mean the dollar amount specified in
Section 1 hereof, irrespective of the Borrowing Base.


 


IN WITNESS WREREOF,
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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