**Exhibit 10.23**

 

HOME FEDERALBANK

PROMISSORYNOTE MODIFICATION AGREEMENT

 
| Modification  #4386 |   |   | Loan  #9206756 |
|---------------------|--------|--------|----------------|

 

This Agreement is made as of February 16, 2006, between HomeFederal Bank having its office at 225 South Main Avenue, Post Office Box 5000,Sioux Falls, South Dakota 57117-5000 (“Lender”) and Great Plains Ethanol LLC,27716 462nd Ave., Chancellor, SD 57015 (“Borrower”).

 

RECITAL 5:

 

A.                                   Lender is the holderof a Promissory Note of Borrower dated February 28, 2003 payable to theLender in the original principal amount not to exceed $1,600,000.00 (the “Loan”).

 

B.                                     Lender is willingto modify payment terms of the Loan evidenced by the Loan Documents in themanner set forth below. These proposed changes are requested by and acceptableto Borrower. Borrower acknowledges that the Loan Documents shall remain thelegal and binding obligation of Borrower, endorsers and guarantors, free of anyclaim, defense or offset.

 

Accordingly, In consideration of the premisesand other good and valuable consideration, each paid to the other, the partiesagree as follows:

 

1.                                       Effective as of,N/A and until the Loan is fully paid or Lender changes the number of basispoints or the Index, whichever is the first to occur, the unpaid balance of theLoan shall bear interest at a variable rate of N/A basis points in excess ofthe N/A (“Index”). Lender at its discretion, may changethe number of basis points or Index upon thirty (30) days’ prior written noticeto Borrowers. 

 

2.                                       The unpaidprincipal balance of the Loan and Interest thereon shall be paid in full on orbefore March 1, 2007.

 

3.                                       The maximumamount of the Loan is changed to and shall not exceed $960,000.00.

 

4.                                       The LoanDocuments are amended to the extent necessary to reflect the changes set forthabove. No other amendments are made to the Loan Documents. Except as amendedherein, the terms and conditions contained in the Loan Documents, and theRelated Documents described therein, shall continue to govern the relationshipof the parties.

 

5.                                       It is understoodand agreed by the parties that this Agreement shall not operate as a novationof the Loan Documents or the Loan,

 

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6. A Loan Modification Fee of $2,812.50 willbe charged.

 

IN WITNESS WHEREOF, the parties hereto each duly executed thisAgreement as of the day and year first above written.

 
|   | HOME FEDERAL  BANK |          |   |
|--------|--------------------|---------------|--------|
|   |               |          |   |
|   |               |          |   |
|   | BY:                | Terry Cleberg |   |   |
|   | ITS:               | VP            |   |   |
|        |                    |               |        |  |  |  |

 

 
|   | BORROWER:                 |   |   |
|--------|---------------------------|--------|--------|
|   |                      |   |   |
|   | GREAT PLAINS  ETHANOL LLC |   |   |
|   |                      |   |   |
|   | /s/ Darrin Ihnen          |   |
|   | DARRIN IHNEN, PRESIDENT   |   |
|        |                           |        |        |  |  |

 

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