**Exhibit10.24**

 

**AGREEMENT TO COMPENSATE GUARANTORS**

 

THIS AGREEMENT is made andentered into effective this 16th day of February, 2006, by and between GreatPlains Ethanol, LLC (the “Company”) and Robert Broin, Jeff Broin, Todd Broin,Duane Sather, Fred Thurman, and Dennis Schrag (collectively the “Guarantors”).

 

RECITALS:

 

A.            The Company enteredinto a Natural Gas Distribution Delivery Agreement  dated September 2, 2002, with NorthWesternEnergy Corporation (“NEC”).

 

B.            In connection withthe Natural Gas Distribution Delivery Agreement, Home Federal Bank issued anIrrevocable Standby Letter of Credit dated February 28, 2003, in the amount of$1,600,000.00 (the “Letter of Credit”) in favor of NEC.

 

C.            The Letter of Creditwas modified and restated pursuant to a First Amended and Restated IrrevocableStandby Letter of Credit dated May 28, 2003, a Second Amended and RestatedIrrevocable Standby Letter of Credit dated February 25, 2004, in the amount of$1,250,000.00, a Third Amended and Restated Irrevocable Standby Letter ofCredit dated February 28, 2005, in the amount of $1,125,000.00, and a FourthAmended and Restated Irrevocable Standby Letter of Credit dated February 16,2006, in the amount of $960,000.00.

 

D.            In consideration forthe Letter of Credit, the Company executed a Promissory Note dated February 28,2003, in the original principal sum of $1,600,000.00 in favor of Home FederalBank. The Promissory Note has been amended by written agreement of Home FederalBank and the Company each time that the Letter of Credit was amended andrestated. The Promissory Note, as amended, is referred to herein as the “Note.”

 

E.             The Guarantors areeach willing to personally guarantee the Note, as amended, in part, pursuant totheir respective guarantees each dated February 16, 2006.

 

F.             The Company wishesto provide certain compensation to the Guarantors in consideration for theiragreement to enter into the guarantees.

 

NOW,THEREFORE, the parties agree as follows:

 

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1.             In considerationfor each Guarantor’s agreement to provide his personal guarantee to HomeFederal Bank in connection with the Note, as amended, the Company agrees tocompensate each Guarantor in an amount equal to two percent (2%) per annum  of his respective guarantee amount, so longas he continues to guarantee such Note, as amended.

 

2.             Payment will bemade by the Company to the Guarantors on or before March 31 of each year.

 

3.             This Agreementconstitutes the entire agreement among the parties with respect to compensationto be paid by the Company to the Guarantors for their guarantees. ThisAgreement supercedes any prior negotiations, agreements, or understandingsbetween the parties with respect to compensation to be paid by the Company tothe Guarantors for their guarantees.

 
| GREAT  PLAINS ETHANOL, LLC |          |      |
|----------------------------|---------------|-----------|
|                       |          |      |
|                       |          |      |
| By:                        | Darrin  Ihnen |      |   |   |
|                       | Its:          | President |   |   |
|                       |          |      |
|                       |          |      |
| /s/  Robert Broin          |          |      | /s/  Jeff Broin |   |
| Robert  Broin              |          |      | Jeff  Broin |   |
|                       |          |      |   |   |
|                       |          |      |   |   |
| /s/  Todd Broin            |          |      | /s/  Duane Sather |   |
| Todd  Broin                |          |      | Duane  Sather |   |
|                       |          |      |   |   |
|                       |          |      |   |   |
| /s/  Fred Thurman          |          |      | /s/  Dennis Schrag |   |
| Fred  Thurman              |          |      | Dennis  Schrag |   |
|                            |               |           |  |  |  |  |  |  |  |  |  |  |  |

 

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